News stories in American Banker, the Wall Street Journal, and now Huffington Post all indicate that New York and California will join the so-called mortgage settlement deal. From Loren Berlin at Huffington Post:

“It’s hard to see any state staying out of the deal if California is in,” said the source….

“Even if the final settlement number is $25 billion, it pales in comparison to the scope of the problem,” said Margery Golant, a Florida-based attorney who represents homeowners and formerly served as assistant general counsel at subprime mortgage giant Ocwen Financial. “If you do the math, that’s a few hundred million per state. That’s not enough to change anything.”