Tuesday 7 February 2012

California not among states that OK bank settlement

More than 40 states signed onto a proposed $25-billion deal with major mortgage servicers over faulty foreclosure practices. New York, Nevada and Delaware joined California in holding out for better terms.

 

More than 40 states signed onto a proposed $25-billion settlement with major mortgage servicers over faulty foreclosure procedures, but California, New York and other key states were still not among them.

"This enables us to move forward into the very final stages of remaining work," said Iowa Atty. Gen. Tom Miller, who heads the multi-state settlement negotiations. "Federal and state officials, as well as representatives from the banks, continue to address matters that they must complete before finalizing any settlement."

Miller would not comment further.

The proposed settlement had hung in limbo most of the day as California and other key states pushed past the Monday deadline — an extension of a Friday deadline — to try to get better terms for homeowners from the nation's five major loan servicers.

Miller's decision to move forward, however, doesn't stop California and the other states from joining the agreement later.

California Atty. Gen. Kamala Harris was locked in last-minute negotiations with servicers and officials from other states and the Obama administration as the deadline expired with no decision on whether they would sign on, according to a person familiar with the discussions.

Negotiations, however, remained fluid, said the person, who was not authorized to speak publicly and requested anonymity.

Officials in California, New York, Nevada, Delaware and other states appeared to feel little obligation to meet Miller's deadline, which was set to see whether enough attorneys general would sign onto the deal to make a settlement feasible.


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