Law aims to resist court order to repay mortgage fund

SACRAMENTO, Calif. (AP) — A bill signed by Gov. Jerry Brown attempts to circumvent a court order requiring the state to pay $331 million to a special fund related to the mortgage crisis.

The legislation signed Monday stems from a 2012 settlement between states and leading mortgage servicers, related to their actions during the Great Recession.

California earned $410 million in the settlement and set it aside in a special fund to use for foreclosure assistance, housing counselors and other services.

Lawmakers then transferred most of it to the general fund to service debt on housing bonds. Three non-profits have sued, arguing the state improperly used the money.

An appeals court in July ordered the state to pay it back. The legislation aims to resist the court order.

Categories: California News