The proposed accord would require banks to set up a fund for states to resolve civil mortgage complaints as well as a separate federal account that would require them to provide a specified amount of mortgage relief to borrowers, said two people close to the negotiations who asked to remain anonymous because the talks are private.
Banks could get credit toward their relief obligation if they reduce the amount owed by borrowers and modify loans in their portfolio, one of the people said. The exact mechanism to determine and award credits is still being discussed, the person said.