The 50 state attorney generals continue to work on a settlement with the top five mortgage servicers, according to market reports.
The attorney-general group expects to reach five separate agreements with the five largest servicers, according to a Bloomberg report. The settlement may include a third-party "foreclosure monitor" to help make sure that servicers are abiding by the new guidelines.
The servicers include Bank of America Corp., JPMorgan Chase, Citigroup, Wells Fargo and Ally Financial.
"Given the large amount of ground that is being covered in these negotiations, it may be several months before an agreement is reached, which may cause another extension in liquidation timelines," said Scott Buchta, head of investment strategy at Braver Stern Securities in an e-mailed note on the subject.
At the same time, the Federal Deposit Insurance Corp. Chairman Sheila Bair has called for a BP-type fund to help compensate borrowers that were hit by questionable foreclosure practices.
