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Huff to Governor: “Return the Money”

Court Rules That Mortgage Settlement Funds Inappropriately Diverted

Senate Minority Leader Bob Huff (R-San Dimas) is calling on the Governor to return $331 million in mortgage settlement funds that were illegally used to cover a state budget shortfall in 2012. A California Superior Court judge ruled earlier this month that the money was improperly taken from the Mortgage Settlement Distribution Fund controlled by Attorney General Kamala Harris. The $331 million represented a payment from five large banks and the money was intended to help financially distressed homeowners in California.

In response to the ruling, Senate Minority Leader Huff and other members of the Republican Caucus sent a letter to Governor Brown urging him to restore the funding so the money can be made available to as many as 800,000 California homeowners.

Read the letter at

“The ruling from Judge Timothy Frawley is clear,” said Senator Huff. “This money should be returned to California homeowners who need it. The funding exists to comply with Judge Frawley’s decision.”

The National Asian American Coalition, the COR Community Development Corporation and the National Hispanic Christian Leadership Conference are responsible for the lawsuit that led to the judge’s decision to return the money. More than two dozen homeowners affected by the ruling recently met with Democrat and Republican legislators.

“If necessary, Senate Republicans would support special budget action through a trailer bill to return these misappropriated funds,” said Senator Huff. “Despite the improving economy, tens of thousands of homeowners in California are still struggling to make basic payments. This fund was created to help them and the money should be rightfully returned as soon as possible.”


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