California's role in national foreclosure settlement

Dec 2 2011 11:04AM

The Huffington Post reports that California has yet to announce intentions of pursuing its own prosecutions against mortgage companies who mistreated foreclosure processes or it will rejoin state attorneys general in pursuit of national settlement.

Proposed terms include cash payments to buyers and refinancing for underwater homes while the source reports the agreement is valued at nearly $25 billion.

The source says California removed itself from the conversation, because of concerns that the deal would give too much forgiveness for improper handling without an adequate restitution for homeowners. Many supporters of the national settlement are worried that without the heavily-populated state, the deal most likely won't happen, according to the paper.

California is represented by state attorney general Kamala D. Harris, and the source says she was heavily involved in national negotiations until last month. She reportedly excused herself because she was concerned the settlement would dismiss services' liabilities.

The source reports that other states have also showed concerns about terms within the national settlement, including New York, Nevada and Massachusetts.