We're seeing more state attorneys general take action in the mortgage crisis. Michigan recently joined Oregon in suing Bank of America's troubled Countrywide unit, seeking to recover big losses in their pensions. Arizona and Nevada have already sued Bank of America, alleging a litany of abuses in their mortgage processes.

All of this raises the issue of the big settlement that we think is still in the works, one that would involve all state attorneys general and most of the top mortgage lenders and services. It's still unclear exactly what this agreement will entail and how far-reaching it will be.

One piece of recent news is that the states will likely require third-party monitors for all of the banks, to ensure they comply with established guidelines. The monitors could be law firms, and the monitoring requirement might last for several years, according to Bloomberg. The ultimate agreement will likely go way beyond this. We can only hope anyway.

Many thought a definitive agreement might create standards that would essentially "end" the foreclosure fiasco in that it would set up best practices for judges and attorneys in all states. Right now, everything is still ad hoc. But such hopes for the deal may be wishful thinking. For now, it's clear that the global settlement is still not imminent. It may be months away.     

For more:
- here's the article on the third-party monitor idea

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