By DON THOMPSON, Associated Press – Fri Sep 30, 7:44 pm ET
SACRAMENTO, Calif. – California Attorney General Kamala Harris said Friday that she will not agree to a settlement over foreclosure abuses that federal officials and other state attorneys general are negotiating with major U.S. banks.
Her announcement 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" — approving documents in foreclosures without actually reading them.
However, Harris said the pending deal is "inadequate for California homeowners" and gives bank officials too much legal immunity.
The state is being asked as part of the settlement "to excuse conduct that has not been properly investigated," she wrote, promising to continue her own investigation.
Without agreement from the nation's most populous state — and one of the hardest hit by foreclosures — the settlement could end up doing little to resolve the issue. Foreclosure fraud class-action lawsuits are also piling up against major banks across the country.READ MORE
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