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The article discusses comments from Ohio state attorney general Richard Cordray directed at several financial-services firms including Wells Fargo & Co. and Bank of America Corp. who may have submitted false documents in connection with foreclosure proceedings. Cordray says that instead of furnishing corrected papers, the banks should terminate the proceedings and instead work out loan-modification arrangements with the borrowers.

The article focuses on the hedge fund Carrington Capital Management LLC. The fund has acquired a large portfolio of mortgage loans, and has been active in renegotiating troubled loans with borrowers in financial difficulties. The fund has been sued by the state of Ohio, which claims the new agreements do not benefit homeowners. It has also been criticized by some of its bondholders for modifying too many loans.

The article reports that nonprofit group Price Hill Will has sued Deutsche Bank National Trust and other financial institutions over vacant homes on a Cincinnati neighborhood in Ohio. The lawsuit was filed on July 10, 2008 at a court in Hamilton County, Ohio, alleging that Deutsche bank has failed to maintain foreclosed properties properly, allowing them to deteriorate and become eyesores in the neighborhood. It also seeks damages and a court order that would compel the defendants to bring the properties up to standards.

The article reports on the ineffectiveness of mortgage relief programs set by U.S. state governments to help homeowners refinance their housing in April 2008. According to the National Governors Association, nine states have implemented refinance programs intended for subprime borrowers facing interest resets in an effort to counter foreclosures. It cites the efforts of the Ohio Housing Finance Agency to increase its participation in its subprime refinance program by easing underwriting guidelines and launching radio advertising campaign.