U.S. Representative Karen Bass (D-Calif.) issued the following statement in response to the agreement reached today by the federal government and 49 state attorney's general on a $25 billion agreement with the nation's five largest mortgage servicers to address mortgage loan servicing and foreclosure abuses. California received $18 billion, the largest portion of the settlement.:
"Today's settlement announcing $18 billion for struggling California homeowners is a positive step towards providing justice for the hundreds of thousands of people who were victims of corrupt banking and mortgage practices during the recent housing boom. California Attorney General Kamala Harris remained steadfast in her commitment to Californians and negotiated tirelessly for the best possible outcome in this difficult situation. I want to congratulate Attorney General Harris for her exemplary efforts for her state and homeowners across America.
"While this settlement represents significant progress, substantial work is still needed to support the majority of families in California who unfortunately are not eligible to be a part of this deal. I and several of my colleagues that represent the state are demanding that the Federal Housing Finance Agency, here in Washington, reduce the principals of the 60 percent of California homeowners who are still underwater with mortgages from Fannie Mae and Freddie Mac."