Nevada still studying multi-state foreclosure deal

By KEN RITTER

LAS VEGAS

Nevada's attorney general said Monday she's still studying a multi-state settlement over foreclosure abuses and isn't ready to sign on to a deal that would require the nation's five largest mortgage lenders to reduce loans for about 1 million borrowers.

State Attorney General Catherine Cortez Masto said the state hardest hit by foreclosures, bankruptcies and unemployment should be able to get a better deal than the one on the table.

"My office is continuing to review the intricate draft settlement terms and advocating for improvements to address Nevada's needs," Masto said in a statement. "Receipt of important state specific information is necessary to make our determination and my office is still in discussions regarding that information."

Nevada is among a handful of states including California, New York, Arizona and Delaware that had not joined the settlement by a Monday deadline set by the nation's state attorneys general. Officials say a deal might not be finalized for days.

Homeowners in states that opt out of the deal wouldn't share in the settlement money. The deal is subject to approval by a federal judge.

The five lenders -- Bank of America, JPMorgan Chase, Wells Fargo, Citigroup and Ally Financial -- have agreed to the settlement. States that sign on would agree not to pursue further civil court investigations against the banks. The deal would not protect the banks from criminal liability.

Masto and California Attorney General Kamala Harris have criminal mortgage fraud investigations ongoing in the two states, and have promised to combine resources and share information about them.

Under the settlement, the mortgage principal for homeowners would be written down by an average of $20,000. Another 750,000 Americans -- about half the households eligible for aid under the deal -- would receive about $2,000.

A coalition of Nevada activist and labor groups calling themselves Nevadans for a Fair Settlement and headed by the Progressive Leadership Alliance of Nevada issued a letter Monday urging Masto to stand her ground and reject any unfair deal.

"Like you, we are gravely concerned by issues you have raised about the deal, in particular reports that California will receive an unfair portion of the mortgage settlement," the letter said.

"Families in Nevada have been devastated by the actions of the banks, with too many losing their homes and everything they worked for," PLAN official Michael Ginsburg said in a statement. "We are counting on the attorney general."