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Source: Holdout states to sign mortgage settlement with banks over foreclosure abuses
ALBANY, N.Y. (AP) ' A source close to the negotiations says New York and California have agreed to sign the proposed settlement between U.S. states and the nation's biggest mortgage lenders over deceptive foreclosure practices.
Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Financial agreed to the settlement, with up to $25 billion for lowering homeowners' mortgage principal, refinancing, a reserve account, and checks to homeowners.
The settlement grants immunity from civil lawsuits brought by state attorneys general against the lenders over narrowly defined "robo-signing" cases.
The source, who was not authorized to disclose the agreement before an announcement expected Thursday or Friday, says it will enable authorities to pursue all claims over mortgage-backed securities and lets them use facts from robo-signing claims in securities, insurance and tax fraud cases.