ABC News reports that officials from more than 40 states reached a $25 billion settlement last night with mortgage servicers accused of "robo-signing" documents that accelerated foreclosures. The Obama administration's Department of Housing and Urban Development, state attorneys general, and the mortgage servicers -- like Bank of America -- have been negotiating for more than a year.
However, it is not clear if California and New York agreed to last night's settlement. California Attorney General Kamala Harris wants stronger measures to benefit homeowners. Many Chicago community organizations feel the same, claiming that the Obama administration and state AG's are squandering a golden opportunity to punish powerful banks and also aid more homeowners.