After months of infighting, the federal banking agencies have reached an agreement on risk retention standards that would include some new rules for servicers, according to sources familiar with the matter.

Under the agreement, which still must be ratified by other agencies involved with the issue, servicers would be required to offer a loan modification when the value of a borrower's home is greater than its value in a foreclosure. Loss mitigation activities would have to be initiated within 90 days after a borrower was delinquent, and such procedures would have to be disclosed to borrowers prior to a mortgage closing.

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