Court: Money Goes To Where It Is Supposed To

(SACRAMENTO) – California must use money it obtained from banks through a lawsuit over unfair mortgage practices to help homeowners…this, after the state’s highest court rejected arguments from Gov. Newsom’s administration that it could use the money for other purposes.

The state secured the money in 2012 as part of a nationwide settlement with Bank of America, Citigroup, JPMorgan Chase, Wells Fargo and Ally Financial.

State government received $410 million and set aside $331 million for programs to help homeowners with legal assistance and consumer education.

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