California | Brown Proposes Clever Raid of Foreclosure Fraud Settlement Funds

Brown Proposes Clever Raid of Foreclosure Fraud Settlement Funds

This was inevitable. California is $7 billion more in the budget hole than they expected at the end of last year, and they need money from any source. The federal government delivered $410 million to California in the foreclosure fraud settlement. That money is supposed to go to homeowners, but many states have raided the funds for their own budgets. So this was an inviting target for Jerry Brown.

The Sacramento Bee makes it sound like Brown is prepared to steal the money:

The Democratic governor relies on a patchwork of solutions to bridge the gap in a $91.4 billion general fund spending plan, including deeper cuts, his November tax initiative and taking money from a multi-state mortgage abuse settlement with banks.

In reality, it’s a bit more complicated than that, but the effect is actually the same as a traditional raid on the funding.

Here’s how Brown himself described the move in his revised budget today.

Rest here…


2 Responses to “California | Brown Proposes Clever Raid of Foreclosure Fraud Settlement Funds”
  1. Ken Hansen says:

    Brown is calling for austerity because that’s what Wall Street wants. Therefore, both political parties have basically said they don’t care if citizens literally die on the street. “Cut everything, save the Banksters.” Just appalling, tragic and downright evil.

  2. james formanek says:

    I asked the same question to the AG of the Great State of MD as well as to the Director of Housing and never received a response… sent a letter to the Baltimore Sunpapers… no one has responded…

    all these avenues of supposed “trusted” individuals working for the people are hidding behind the elctronic vail of the internet with the lack of responsiviness to the simple question…

    Where did the the $925,000,000.00 go????

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