California Attorney General Pushed Harder Regarding Foreclosure Practices

California Attorney General Kamala Harris's holdout position in a proposed agreement with banks over foreclosure practices may reap financial and political rewards at the cost of prolonging some constituents' suffering, Bloomberg News reported today. She is pushing a broader probe of banks' mortgage practices, including securitization of the loans. The strategy may lead to more favorable terms in a proposed multistate agreement said to be worth as much as $25 billion. State and federal officials have been negotiating a settlement with Bank of America Corp., JPMorgan Chase & Co., Citigroup Inc., Wells Fargo & Co. and Ally Financial Inc. The nationwide foreclosure probe, begun in October 2010, was triggered by revelations that companies were using faulty documents in seizing homes.

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