California Attorney General Opts Out Of Foreclosure Settlement With Major Banks
SACRAMENTO (AP) — California Attorney General Kamala Harris says she will not agree to a settlement over foreclosure abuses that other state attorneys general are negotiating with major U.S. banks.
Harris' announcement Friday is the latest to undermine a settlement that had been in the works between the banks and attorneys general in all 50 states. Other states including New York also have expressed reservations.
The agreement was supposed to settle claims of poor mortgage and foreclosure practices, including document fraud known as "robo-signing."
Harris says in a letter to state and federal negotiators that the pending settlement is "inadequate" and gives bank officials too much immunity.
She says California will go it alone in negotiating a settlement.
Iowa Assistant Attorney General Patrick Madigan says the multistate effort will continue.
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