California Rejects Proposed $25-Billion Deal With Five Major Mortgage Servicers

People in San Francisco always aid that Kamala Harris was a fighter. So true as she keeps jabbing away at the banks. Just a couple days ago, the California Atty. Gen. rejected a settlement option by the banks as apart of the proposed $25-billion  deal with five major mortgage servicers regarding faulty foreclosure practices (like robo-signing). California joined New York, Nevada and Delaware to hold out for better terms.

California has a large portion of the nation’s mortgage market — about 14% of existing home loans nationwide, according to industry data company CoreLogic Inc., so Harris has some leverage in her talks with Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial.

The proposed deal would provide an average of about $20,000 in relief for each of some 1 million homeowners nationwide, much of that in the form of reduced principal on their mortgage.

Recently, the banks have used their weight to push things their way. In California they may have to either push harder or offer more repartition for all of the faulty foreclosure practices they instilled.

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Filed under Banks, California, Foreclosure, Mortgages

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