$25B Mortgage Deal In Trouble As California Backs Out

Law360, New York (January 26, 2012, 4:04 PM EST) -- California on Thursday became the second state to reject a proposed $25 billion settlement with major mortgage servicers to provide relief for homeowners facing foreclosure, with the Golden State's attorney general denouncing the proposal as “inadequate” to address California homeowners' needs.

The proposed deal between the attorneys general, the U.S. Department of Housing and Urban Development and the U.S. Department of Justice would provide relief to struggling homeowners in exchange for a halt on future lawsuits alleging deceptive practices leading to the housing crisis.

In September,...
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