Posted on Wednesday, January 5, 2011
The five largest mortgage loan servicers, including Bank of America Corp (BAC.N) and JPMorgan Chase & Co (JPM.N), may be the first to settle with 50 state attorneys general who are investigating foreclosure practices, Bloomberg reported, citing Iowa Attorney General Tom Miller.
The attorney-general group expects to reach five separate agreements with the five largest servicers, the news agency said, quoting Miller, who heads the multi-state probe.
Miller could not be immediately reached for comment by Reuters outside regular U.S. business hours.
The other three large servicers are Citigroup Inc (C.N), Wells Fargo & Co (WFC.N) and Ally Financial Inc.
The group has had at least one face-to-face meeting with representatives from all five of the largest banks and will reach individual settlements rather than a global agreement with the servicers, Bloomberg reported.
Mortgage servicers have come under fire in recent months for abuses of the foreclosure process.
All 50 state AGs formed a joint probe in October to investigate the use of "robo-signers" in foreclosure proceedings.
Ally Financial, Bank of America, Citigroup, JPMorgan and Wells Fargo could not be immediately reached for comment by Reuters outside regular U.S. business hours.