US mortgage settlement talks face setbacks, again
* State AGs faced Monday deadline to join mortgage deal
* Many states say won’t comment about their participation
* Deal faces another setback after banks balk at NY suit
* California angling for more control over relief
By Aruna Viswanatha and Karen Freifeld
Feb 6 (Reuters) – A multi-state mortgage settlement in the works for more than a year will likely be pushed back again as dissident U.S. states continue to press specific concerns and ignore a Monday deadline to decide whether they will sign it.
States had been given two weeks to assess a proposed settlement, under which top U.S. banks would pay up to $25 billion in exchange for resolving civil government lawsuits about misconduct in servicing home loans and pursuing faulty foreclosures.
But on Monday, as a close-of-business deadline loomed, many states had not yet reached a decision.
Some states and activist groups have been concerned the proposed deal would release banks from too many claims and does not provide enough relief to homeowners.