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(Image from article: "Analysis: Mortgage probe may open new path for housing relief")

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Mass. AG sues five major banks over foreclosures

Massachusetts' top lawmaker has sued five top U.S. banks for allegedly foreclosing illegally on homes in the state and for deceptive loan servicing, including robo-signing.

Analysis: Mortgage probe may open new path for housing relief

Five major banks could be required to commit roughly $15 billion to reduce principal balances for struggling homeowners and modify loans in other ways under a proposed deal to settle allegations linked to the "robo-signing" scandal... Five major banks could be required to commit roughly $15 billion to reduce principal balances for struggling homeowners and modify loans in other ways under a proposed deal to settle allegations linked to the "robo-signing" scandal.

Senh: Principal reduction and refinancing for underwater mortgages would be a two steps in the right direction. The only problem what happens to homeowners who have already done loan mods? Would they still qualify for principal reduction and/or refinance? It also sucks that certain programs are only available from one bank, but not another.

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