"While the dream of owning a home is increasingly out of reach for California’s families, it appears that Newsom received a $3.7 million estate from an LLC owned by his cousin then, a few months later took out a $2.695 million (tax-free) cash-out mortgage on it — and didn’t report the gift on any of his financial disclosure forms."
http://sjvsun.com/california/newsoms-sacramento-home-raises-questions-of-multi-million-dollar-gift-violations/