Actions in the foreclosure / modification puzzle

The attorney general of Florida has wrapped up his meeting with five lenders and mortgage servicers, Ally, PNC, Bank of America, JPMorgan Chase and Goldman Sachs' Litton Loan Servicing, which has also put foreclosures on hold temporarily. Florida Attorney General Bill McCollum sought the meeting way back on October 12, according to Bloomberg, to "discuss ways to promptly and effectively redeem the integrity" of foreclosures.

Elsewhere, Iowa Attorney General Thomas Miller is moving the 50-state investigation task force forward, but there's also a lot of specific activity by states.

Other meetings between banks and AGs have already been wrapped up. Colorado's AG met with several. Maine may join a class action suit against Ally/GMAC. Ohio's AG has already sued Ally/GMAC.

So it remains unclear exactly how the AGs will move toward a solution. FOX Business has reported, however, that a settlement is coming in December, one that will require judge-driven modifications, better processes and perhaps a fine. You do get the sense that solutions rather than punishment is a priority. But I am not sure if forced modifications will speed up the process. The current modification wave has hardly been inspiring.