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.
A 5-year-old girl who was abducted from New York by her 32-year-old mother, who does not have custody of the child, was found safe Saturday in San Diego, police said.
A man died after his body caught fire, police said Saturday. At 11:30 p.m. Friday, police received a call regarding a person on fire in a field near 5200 Pacific Highway in Mission Bay Park, according to the San Diego Police Department.
Before Saturday, Marine veteran Joshua Ray, his wife and six children had just one vehicle to use for all of their family business, and Ray had to take the train from Oceanside to San Diego every day to get to work.
A sea of pink will travel through San Diego starting Friday for the Susan G. Komen San Diego 3-Day. The 60 mile journey kicks off early Friday morning and ends Sunday evening at the final destination – the celebratory Closing Ceremony.
A man arrested on suspicion of committing a murder in Imperial Beach earlier this week remained jailed Saturday.
Spencer Abbott had two goals and two assists after missing two games and Eric Fehr scored twice in his debut with the San Diego Gulls in an 8-3 victory over the Tucson Roadrunners Friday night.
On Friday, a fourth woman came forward with disturbing allegations of sexual assault by a San Diego County Sheriff’s Deputy.
Malcolm Young, the rhythm guitarist and guiding force behind the bawdy hard rock band AC/DC who helped create such head-banging anthems as "Highway to Hell," ''Hell's Bells" and "Back in Black," has died.
One person was killed Friday in a crash involving a motorcycle on northbound Interstate 5 in Carlsbad.
Covet Canyon, a paramilitary training camp in the East County, is in financial trouble after the owner defaulted on property payments. Owner Marc Halcon has 90 days to make good on the debt or the 160 acre property could fall into foreclosure and auction.