Calif. Told To Repay $331M Diverted From Mortgage Relief

Law360, Los Angeles (June 15, 2015, 4:48 PM EDT) -- A California judge on Friday ordered the administration of Gov. Jerry Brown to repay $331 million it unlawfully diverted from a mortgage settlement fund paid by Bank of America Corp., Citigroup Inc. and others, ruling that Brown shouldn’t have used the money to repay bond debts in 2012.

Gov. Jerry Brown improperly used mortgage settlement funds to pay down California's bond debt, a judge ruled Friday. (Credit: AP) In ruling in favor of a coalition of minority counseling groups, California Superior Court Judge Timothy M. Frawley...
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