NEW YORK (

TheStreet

) -- State regulators will face off against representatives from

Bank of America

(BAC) - Get Report

,

JPMorgan Chase

(JPM) - Get Report

,

Wells Fargo

(WFC) - Get Report

,

Citigroup

(C) - Get Report

and

Ally Financial

on mortgage-servicing practices this Wednesday.

The Wall Street Journal

reports that some state attorney generals

may force U.S. banks to reduce home-loan balances for borrowers facing foreclosure. Mortgage companies have already sliced home-loan balances for more than 100,000 borrowers, according to the report, adding that loan balances could be trimmed over a three-year period.

State regulators

are also assessing

if banks should pay fines or mortgage putbacks due to shortcomings in underwriting standards.

The cost of putbacks for the banking industry could be

$10 billion to $30 billion

, according to analysts.

--Written by Maria Woehr in New York.

To contact the writer of this article, click here:

Maria Woehr

.

To follow the writer on Twitter, go to

http://twitter.com/newsgirlmw

.

To submit a news tip, send an email to:

tips@thestreet.com

.