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SACRAMENTO, Calif. (AP) — California should receive at least $20.6 billion from a settlement with the nation’s major mortgage lenders, the largest share of any state and about $2 billion more than expected when the agreement to assist homeowners was announced last year, according to a report released Thursday.
The money from five banks will help an estimated 175,000 California homeowners struggling with their mortgages.
The overall $42 billion settlement covers every state except Oklahoma, which struck its own agreement with the lenders. The national Office of Mortgage Settlement Oversight announced the state-by-state breakdown.
“We’re going to definitely overshoot what we thought we would get at the national level,” said Katherine Porter, a University of California, Irvine, law professor who is overseeing how the settlement is being implemented in the state. “I think that’s great news for the state’s entire economy.”
She predicted the benefit to the state ultimately could…
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