Calif. Returns to Talks with Banks Over Mortgage Settlement

California has returned to talks after a four-month absence to possibly take part in a multi-state deal with the nation's largest mortgage servicers over faulty foreclosure practices, the New York Times and Los Angeles Times reported Monday.

California's addition in the negotiations could increase the settlement amount to $25 billion from $19 billion, The New York Times reported.

The potential backing comes in exchange for provisions that would preserve the right to investigate past misdeeds by banks, and stepped-up oversight that would ensure that financial institutions live up to the deal and distribute the money to the hardest-hit homeowners, the report said.