California Pulls Out of Talks on Foreclosure Abuses

California Pulls Out of Talks on Foreclosure Abuses
By Rick Daysog, The Sacramento Bee
02 October 11

California has pulled out of nationwide settlement talks with US banks over abuses in the foreclosure system, citing a "troubling" upsurge in recent foreclosure filings in the state.

California Attorney General Kamala Harris' decision to exit the talks means they likely will fail, banking experts said.

In a letter Friday to Associate US Attorney General Thomas Perrelli and Iowa Attorney General Tom Miller, Harris said the proposed settlement - widely reported to be $20 billion - is "inadequate" for homeowners and provides too much immunity for bank officials.

"After much consideration, I have concluded that this is not the deal California homeowners have been waiting for," wrote Harris, who met with many of the major banks in Washington, DC, last week.

"(The) relief contemplated would allow too few California homeowners to stay in their homes," she added...

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