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California to receive larger share of mortgage deal

  • FILE - In this July 2, 2008 file photo, a bank owned home is for sale in Sacramento, Calif. California Attorney General Kamala Harris appointed University of California, Irvine professor Katherine Porter to monitor a settlement with the nation's five largest banks that is expected to bring $18 billion worth of benefits to California.(AP Photo/Rich Pedroncelli,file)

SACRAMENTO — 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 national Office of Mortgage Settlement Oversight announced the state-by-state breakdown of the $42 billion national settlement. It covers every state except Oklahoma, which struck its own agreement with the lenders.

"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 reach $22 billion, based on her analysis of the national report.


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