Banks in Mortgage Deal Said to Demand N.Y. Suit Be Dropped

Banks in Mortgage Deal Said to Demand N.Y. Suit Be Dropped

Matthew Staver/Bloomberg

Homeowners seeking to modify their mortgages speak with loan servicers at the Neighborhood Assistance Corp. of America's "Save-the-Dream Tour" in Denver, Colorado. The proposed nationwide settlement would set requirements for how the banks conduct foreclosures, provide mortgage refinancings for underwater borrowers, and both fund loan principal reductions and make payments to states and borrowers who lost their homes to foreclosure.