A few days ago, it looked like a done deal, but California appears to have thrown a monkeywrench into the tentative agreement between states’ attorneys general and five major lenders over questionable foreclosure-processing practices.
Newspapers in that state reported that Attorney-General Kamela D. Harris considers the $25 billion proposed settlement inadequate. In October, Harris had pulled out of talks to hammer out such an agreement, concerned that the accord would keep individual homeowners from pursuing complaints against the lenders involved (she launched a mortgage fraud task force in May 2011).
California has had more foreclosures than any state since the housing bubble burst in 2006-2007, so what Harris says may determine the future of the agreement.
Other attorneys general also are reportedly not happy with the tentative accord, according to Twitter and blog posts.