Earlier: Here is the Summary for last week ending March 4th



• From Nelson Schwartz and David Streitfeld at the NY Times: Mortgage Modification Overhaul Sought by States



State attorneys general have presented the nation’s five biggest banks with a list of demands that could drastically alter the foreclosure process ...



Under the blueprint, banks would be prohibited from starting foreclosure proceedings while a borrower was actively trying to lower the interest rate or ease other terms of the home loan, a process known as a mortgage modification.



Any borrower who successfully made three payments in a trial modification would be given a permanent modification. When a modification was denied, it would be automatically reviewed by an ombudsman or independent review panel.

Current government modification programs are largely voluntary, and there are few rules governing servicers' practices. But on Thursday, the nation's largest banks, including Wells Fargo & Co., Bank of America Corp., and Citigroup Inc., received a detailed 27-page proposal from state attorneys general and federal agencies to force a shakeup in banks' mortgage-servicing policies.



One mortgage industry executive familiar with the document described it as "almost like a wish list."

It was absurd that servicers would deny a modification when the borrower was making all the payments in a trial program - that just seemed like the servicer was taking advantage of the borrower. This is definitely a needed change.• From Nick Timiraos and Ruth Simon at the WSJ: Mortgage Practices Overhaul Proposed Obviously this is just the beginning ...