Illinois Attorney General Lisa Madigan joined her North Carolinian counterpart in a threat to sue mortgage servicers if talks fail between the corporations and state attorneys general about loan servicing and foreclosure practices.

Madigan and North Carolina AG Roy Cooper warned that the states would file suit against the five major U.S. mortgage servicers if a settlement is not reached. State and federal officials want to reach an agreement on a uniform way for the lenders to provide loans and perform foreclosures. The government is also seeking monetary damages for homeowners affected by the housing crisis. J.P. Morgan Chase and Bank of America are included in the talks.