Two million homeowners are in foreclosure nationwide. Another two million home loans are severely distressed.
The state attorney generals have presented a list of demands to mortgage lenders that prohibit foreclosure during pending loan modification. That would be a major change from the way lenders now conduct business. Usually I see modifications and foreclosures pending on the same loan with homeowners hopelessly confused.
Another demand would require a permanent loan modification once the borrower made three payments on the loan. An independent review panel would check loan modifications that were denied.