Kamala Harris: National Mortgage Deal Still Not Good Enough For California

One day after New York Attorney General Eric Schneiderman was named co-chairman of a federal mortgage fraud task force, California Attorney General Kamala Harris announced that she still refuses to join the national foreclosure settlement currently under negotiation among the Obama administration, the state attorneys general and the nation’s five largest banks.

“We’ve reviewed the details of the latest settlement proposal from the banks, and we believe it is inadequate for California,” said Shum Preston, spokesman for the California Department of Justice in a statement released Wednesday. “Our state has been clear about what any multistate settlement must contain: transparency, relief going to the most distressed homeowners, and meaningful enforcement that ensures accountability. At this point, this deal does not suffice for California.”

One major issue still undecided is the extent to which banks will be released from liability for misconduct in the mortgage market, say sources familiar with the negotiations. If a broad release is granted, states couldn’t pursue their own civil investigations of bank misdeeds.

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