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California To Quit Foreclosure Settlement Talks

Foreclosure

First Posted: 09/30/11 07:01 PM ET Updated: 11/30/11 05:12 AM ET

The state of California is pulling out of multi-state negotiations with large U.S. banks to resolve allegations of mortgage abuses, according to a letter obtained by Reuters, dealing a sharp blow to long-running efforts to secure a broad settlement.

California Attorney General Kamala Harris wrote in a letter on Friday that she will pursue her own investigation.

"California was being asked for a broader release of claims than we can accept and... the relief contemplated would allow too few California homeowners to stay in their homes," Harris said in a letter to government officials leading the talks.

New York exited the talks in August over a disagreement about how much legal immunity the banks should receive in any settlement. (Reporting by Aruna Viswanatha; Editing by Tim Dobbyn)

Copyright 2011 Thomson Reuters. Click for Restrictions.

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Filed by Maxwell Strachan  |