California misspent $330 million that should have helped homeowners

California must use money it obtained from banks through a lawsuit over unfair mortgage practices to help homeowners after the state’s highest court rejected arguments from Gov. Gavin 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.

California as a whole received $18 billion as part of the settlement, according to Bee archives. Much of that money went directly to homeowners. …

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