From Quad-City Times:

Attorneys general from a dozen states are urging two federal agencies to encourage the banking industry to modify consumer loans to make them more affordable.

Headed by Iowa Attorney General Tom Miller, the Foreclosure Prevention Working Group sent its requests in a letter Monday to John Dugan, head of the Office of the Comptroller of the Currency, and John Reich, director of the Office of Thrift Supervision.

The group questions regulators’ recent reports that indicate 55 percent of loan modifications made by national banks and federal thrifts were re-defaulting within six months. The attorneys general say the rate is lower and that regulators may be discouraging policy makers from promoting affordable loan modifications.

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