Attorney General says deal is inadequate

by Brian Leubitz

Kamala Harris, whom I had the great privilege of helping to get elected, has been a leader on mortgage fraud since her SF DA days.  She’s continued that as California AG, and now she’s showing just how important the closest California statewide election really was.  The CA DoJ recently announced that the proposed nationwide settlement for the systemic mortgage fraud by the big banks was inadequate for Californians:

“We’ve reviewed the details of the latest settlement proposal from the banks, and we believe it is inadequate for California,” Shum Preston, a spokesman for Harris, said in a statement. “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.”

While California isn’t totally alone on this settlement, NY AG Eric Schneiderman has also shared some misgivings about signing on to anything that wouldn’t allow him to fully pursue his investigations of the widespread fraud in the mortgage system during the bubble. For just some of the background on this story, see the 60 Minutes story embedded. The extent of the fraud has never really been uncovered.  

The President, the banks, and many state AGs are looking to bring this to a close. However, AG Harris has declared that punishing those that committed the fraud and getting the best deal for Californians is her priority rather than simply getting a quick deal.