Even as state attorneys general and regulators in Washington approach the end of their investigation into abuses by the nation's biggest mortgage companies, deep disputes are emerging, according to an article in today's edition of The New York Times by Nelson D. Schwartz and David Streitfeld, "over how much to punish the banks as well as exactly who should benefit from a settlement."

"The newly created Consumer Financial Protection Bureau is pushing for $20 billion or more in penalties, backed up by the attorneys general and the Federal Deposit Insurance Corporation," the article continued, "but other regulators, including the Office of the Comptroller of the Currency, which oversees national banks, and the Federal Reserve, do not favor such a large fine, contending a small number of people were the victims of flawed foreclosure procedures."

"As difficult as it is to decide on a figure for any broad settlement," the article said, "the question of what to do with the money could ultimately prove more vexing. If only victims of problems at the servicers are helped in a settlement, that would cover a small portion of homeowners who are in default and even fewer of those whose homes are valued at less than they owe."

The article said that "the acting comptroller of the currency, John Walsh, testified last week that while there were widespread problems with documentation and oversight of law firms and other crucial links in the foreclosure chain, only a 'small number of foreclosure sales should not have proceeded.'"

"Despite skepticism on the part of the comptroller's office, other regulators would like a broader plan to help pay for modifications of mortgages that are delinquent or in default, even if homeowners cannot point to a specific example of wrongdoing on the part of servicers," the article said, adding that "in other cases, the money might be used to help mortgage holders whose loan principal exceeds the home's current value."

"What's more," the article added, "the Obama administration, as well as the F.D.I.C., sees any broad settlement with the servicers as an opportunity to do more than just fix the foreclosure process. They want to stabilize the housing market, where prices are continuing to decline, and try to help bolster the economic recovery, which is facing newer threats like higher oil prices."

Some two million American homes are in foreclosure, a third of which are vacant. Another two million households are behind on their payments and facing the prospect of foreclosure this year. To make matters worse, roughly a fifth of the nation's home loans exceed the value of the underlying house, raising the risk that homeowners will simply walk away, further weakening the housing market.

Even if these proposals make it past all the regulators, they face fierce opposition from the banks, which argue that what the administration and the attorneys general have in mind is "a back-door bailout for delinquent homeowners," the article said.

While regulators worry about how punitive any eventual settlement should be, the article stated that "lawyers and other advocates for the foreclosed who were hoping for criminal charges are set to be disappointed," added that "that sanction, everyone seems to agree, is off the table."