After uncovering significant problems in the foreclosure process, the 50 state attorneys general and several federal agencies delivered a 27-page list of demands to the five largest mortgage servicers, requiring upgrades and changes throughout their systems.

But many have begun to suggest the government went overboard by setting unrealistic goals, a move that could backfire and give the banks involved more leverage to fight some of the most onerous requirements. Bankers note that the term sheet makes no mention of what they did wrong — leaving it unclear what problems some suggested remedies are meant to correct — and that it treats all the servicers exactly alike.

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