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NEW YORK (Reuters) – The Obama administration is disagreeable to near a deciding that could obligate the maximal U.S. banks to clear for reductions in give principal worth zillions of dollars mass breakdowns in mortgage servicing, The Wall Street Journal said.

Should a deciding be reached, whatever land attorneys generalized are also pushing for banks to clear more than $20 1000000000 of civil fines or to fund a kindred turn of give modifications for troubled borrowers, the production said on Wednesday, citing grouping old with the matter.

Regulators are hunting to resolve with as some as 14 servicers, including three of the nation's four maximal banks: Bank of America Corp, JPMorgan Chase & Co and author metropolis & Co, the production said, citing grouping old with the matter.

The administration wants a commitment from give servicers to turn give balances for borrowers who owe more than their homes are worth, and that much costs would not be borne by investors who bought mortgage-backed securities, the production said, citing grouping old with the matter.

It would thusly obligate servicers that mishandled foreclosure procedures to bear losses by composition down loans they assist on behalf of clients much as Fannie Mae, Freddie Mac and another investors, the production said.

A deciding would let banks devise their own modifications or ingest existing polity programs, and require them to turn second-lien mortgages when direct mortgages are modified, the production said, citing grouping old with the matter.

Terms remain changeful and have not been presented to banks, the production said, citing grouping old with the matter.

Bank of America, JPMorgan and author metropolis declined to interpret to the newspaper. None could be directly reached after-hours for comment.

(Reporting by Jonathan Stempel in New York; Editing by Ramya Venugopal)

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