A handful of state attorneys general are taking a hard line with mortgage servicers by demanding loan modifications and principal reductions for those borrowers whose rights may have been violated by robo-signing.

All 50 states, as well as 39 state bank regulators, joined forces earlier this month to investigate whether servicers improperly submitted affidavits or other documents in the foreclosure process. Lawyers representing some of the largest banks said a few attorneys general may break from the coordinated multistate effort and demand that servicers modify loans for borrowers already in the process of foreclosure.

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