More than 40 states have signed on to a draft settlement with the nation’s largest banks aimed at helping homeowners struggling with loans bigger than the value of their homes.
But several key states — including California, New York, Nevada, Florida and Delaware — remain undecided, sources familiar with the negotiations tell CNN.
“The sign-on deadline for the proposed joint state-federal mortgage servicing settlement passed Monday with more than 40 states,” said Iowa Attorney General Thomas Miller, who has been leading negotiations that have spanned nearly a year. “This enables us to move forward into the very final stages of remaining work.”
Attorneys general from California, New York and Delaware, who have all been cold to the deal in past weeks, are still talking with negotiators and may yet signal their participation, according to sources familiar with the talks.
Attorneys general from Florida and Nevada also have issues, but are still at the negotiating table.
“My office is continuing to review the intricate draft settlement terms and advocating for improvements to address Nevada’s needs,” said Nevada’s Attorney General Catherine Cortez Masto.
Federal officials and state attorneys general could announce — perhaps as early as this week — the deal with some of the nation’s largest banks that could yield up to $25 billion for qualified homeowners. That would be more than any housing relief program has produced since the financial crisis began.
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