Business & Economy

California back in negotiations with big banks over settlement for mass foreclosures

Attorney General Kamala Harris calls the current settlement inadequate.
Attorney General Kamala Harris calls the current settlement inadequate.

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California has returned to settlement talks between several states, the Obama Administration and the largest mortgage servicers involved in the foreclosure crisis, the Los Angeles Times and the New York Times report.

Banks like Wells Fargo, Bank of America, and JP Morgan Chase want to settle allegations of robo-signing that led to fast foreclosures en masse.

The deadline for states to accept or reject the settlement was supposed to be Monday — but deadlines change when a crucial state like California decides it wants to be involved.

The banks' settlement would require them to offer billions of dollars in aid to homeowners who’ve lost homes to foreclosure, or who still face that danger. Just how many billions depends on the number and size of the states that sign on.

California Attorney General Kamala Harris pulled out of the settlement negotiations last year, saying that "the discussion in terms of what was offered was insufficient to really bring a fair deal to California."

Two weeks ago, Harris said the potential $25 billion settlement was inadequate.

In a statement, the attorney general says the talks are closer to a resolution than they’ve been, but they’re not there yet.