WASHINGTON (AP) — California officials are refusing to sign a proposed settlement between U.S. states and the nation's biggest mortgage lenders over deceptive foreclosure practices, calling it "inadequate."
The objection raised by the nation's biggest state delivered a major setback to the deal, which promised to help roughly 1 million homeowners see the size of their mortgage reduced by an average of $20,000.
Five major banks — Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial —have agreed to the settlement, which was sent around Monday for state officials to review.
California Attorney General Kamala D. Harris says the deal as written would limit her ability to bring civil charges against mortgage lenders that wrongfully foreclosed on homeowners. Harris, who is a Democrat, objected to an earlier version of the settlement in September.
"We've reviewed the details of the latest settlement proposal from the banks, and we believe it is inadequate for California," said Shum Preston, a spokesman for Harris.
Those who lost their homes to foreclosure are unlikely to get their homes back or benefit much financially from the settlement, which could be as high as $25 billion. About 750,000 Americans — about half of the households who might be eligible for assistance under the deal — could receive checks for about $1,800.
But the agreement could reshape long-standing mortgage lending guidelines and make it easier for those at risk of foreclosure to restructure their loans.
Nearly 8 million Americans have faced foreclosure since the housing bubble burst. In some cases, companies that process mortgages failed to verify the information on foreclosure documents. The worst practices, known collectively as "robo-signing," included employees signing documents they hadn't read or using fake signatures to sign off on foreclosures.
Copyright 2012 The Associated Press.
Several dogs are in the custody of San Diego County, after a Lomita woman reported that her six dogs were attacked and some killed by a group of pit bulls.
Thousands of people marched through downtown San Diego and San Marcos in the second annual Women's March Saturday. The San Diego event began at 10 a.m. at the downtown Waterfront Park on Pacific Highway, while the North County event began at 11 a.m. at Palomar College.
Thousands of people marched through downtown San Diego and San Marcos in the second annual Women's March Saturday. The San Diego event began at 10 a.m. at the downtown Waterfront Park on Pacific Highway, while the North County event began at 11 a.m. at Palomar College. The two marches were held in conjunction with other marches across the country.
The federal government shut down at the stroke of midnight Friday, which prompted the closure of many federal operations, such as national parks and monuments and that included the shutdown of Cabrillo National Monument.
Chilly temperatures and scattered showers started the weekend. Temperatures at the coast and inland communities hovered around 60 degrees with some areas of San Diego County receiving rain during the morning hours.
A transient accused of fatally stabbing a man after they got into an argument near a 7-Eleven store in Poway pleaded not guilty Friday to a murder charge.
Coastal rail closures could complicate the commute for the thousands of people expected at Women's Marches set for downtown San Diego and San Marcos Saturday, though additional transit options are being made available.
A man arrested in the doctor's lounge at Sharp Grossmont Hospital in La Mesa after claiming to be an anesthesiologist pleaded not guilty Friday to a felony charge of treating the sick without a certificate.
People who bought new homes in Otay Ranch's Village of Escaya can start moving in Friday - later than planned but after the developer took steps to address methane found at the site.
Recent assaults by tactical teams on prototypes of President Donald Trump’s proposed wall with Mexico found their imposing heights should stop border crossers, The Associated Press has learned, a finding that’s likely to please security hawks but raise concerns about costs and environmental damage.