(Reuters) – A multi-state mortgage settlement in the works for more than a year will likely be pushed back again as dissident U.S. states continue to press specific concerns and ignore a Monday deadline to decide whether they will sign it.
States had been given two weeks to assess a proposed settlement, under which top U.S. banks would pay up to $25 billion in exchange for resolving civil government lawsuits about misconduct in servicing home loans and pursuing faulty foreclosures.
But on Monday, as a close-of-business deadline loomed, many states had not yet reached a decision.
Officials had hoped to announce a final settlement as early as this week. It is unclear if the Obama administration and a group of states will move ahead with a smaller settlement if holdouts continue to drag their feet.
Some states and activist groups have been concerned the proposed deal would release banks from too many claims and does not provide enough relief to homeowners.
California Attorney General Kamala Harris, whose participation would grow the size of
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