BUSINESS
01/04/2011 08:26 am ET | Updated May 25, 2011

Foreclosure Settlement Coming From Top Lenders, States: Report


BANGALORE: The five largest mortgage loan servicers, including Bank of America Corp. and JPMorgan Chase & Co., may be the first to settle with 50 state attorneys general who are investigating foreclosure practices, Bloomberg reported, citing Iowa Attorney General Tom Miller.

The attorney-general group expects to reach five separate agreements with the five largest servicers, the news agency said, quoting Miller, who heads the multi-state probe.
Miller could not be immediately reached for comment by Reuters outside regular U.S. business hours.

The other three large servicers are Citigroup Inc., Wells Fargo & Co. and Ally Financial Inc.

The group has had at least one face-to-face meeting with representatives from all five of the largest banks and will reach individual settlements rather than a global agreement with the servicers, Bloomberg reported.

Mortgage servicers have come under fire in recent months for abuses of the foreclosure process.

All 50 state AGs formed a joint probe in October to investigate the use of "robo-signers" in foreclosure proceedings.

Ally Financial, Bank of America, Citigroup, JPMorgan and Wells Fargo could not be immediately reached for comment by Reuters outside regular U.S. business hours.

(Reporting by Abhinav Sharma and Santosh Nadgir in Bangalore; Editing by David Holmes)

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