The California Attorney General has returned to the 'robo-signing' talks after a four-month absence to possibly take part in a multi-state settlement with the nation's largest residential servicers, according to combined press reports early Monday morning.

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

California represents roughly 15% to 20% of the U.S. mortgage market, according to figures compiled by ASR sister publication National Mortgage News.

To date, it's unclear how that settlement money would be spent – including what portion might go to consumers who have already lost their homes.

Anywhere from five to 10 firms are on the verge of settling with the states, including the nation's five largest servicers: Bank of America, Wells Fargo & Co., JPMorgan Chase, Ally Financial and Citigroup.

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