Mortgage settlement at risk after CA withdraws support, other states express concern

In his State of the Union address, President Obama announced a new investigation into the financial sector’s responsibility for the housing crisis. The effort would bring together state attorneys general and federal prosecutors—and would seek to determine what entities are guilty of misleading and abusive practices, and how the millions of victims should be compensated. Meanwhile, a national settlement between states hit by the foreclosure crisis, the federal government, and the banks responsible, may be falling apart. FSRN’s Alice Ollstein has the details, in Washington, D.C.