Any hope for a quick settlement to the foreclosure fiasco dissipated months ago, when it became clear that federal and states officials on one hand and lenders and servicers on the other hand were nowhere near a deal. The fragmentation on the regulatory side has gotten so bad that now there's talk of multiple settlements, multiple fines and multiple announcements that could dribble on over time.

Dow Jones reports that federal officials--the OCC, the OTC, the Fed and others--are nearing a deal with banks and services that would set some nationwide standards for mortgage lenders and servicers. This deal could be announced as early as next week. My guess is that we'll see some new practices set forth dictating single points of contact, rules preventing simultaneous foreclosure and modification processes and standards on modifications and principal reductions.

But this apparently will be announced separately from a state settlement, which may be more onerous. The federal component, according to Dow Jones, will include a fine but that will not be announced as part of the first agreement; it may be announced with the states attorneys general. States are still arguing about the size of fines. Hopefully, this will not dribble out interminably, which will only reduce its ability to draw attention when the final deal is announced.

For more:
- here's the article

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