US mortgage servicers will face suits

The five largest US mortgage servicers negotiating with state attorneys general over foreclosure practices would be sued if a settlement isn't reached, two of the state officials leading the talks said. Illinois Attorney General Lisa Madigan and North Carolina Attorney General Roy Cooper threatened litigation if settlement talks with the companies, including Bank of America Corp. and JPMorgan Chase & Co., break down. "If we don't get an agreement, we're prepared to go to court," Cooper told homeowner advocates at a meeting of state attorneys general in Chicago on Tuesday. Cooper and Madigan are members of the executive committee of attorneys general which, along with officials from federal agencies, is negotiating with the banks. State and federal officials are seeking to set standards for the way the banks service loans and conduct foreclosures. They also want monetary relief for homeowners. The attorneys general from all 50 states began investigating banks' procedures last year. State and federal officials in March proposed settlement terms that called for "a substantial portion" of monetary relief from the banks to fund loan modifications, including principal reductions. From / Gulf News