Two state attorneys general who are among those leading negotiations with the five largest US mortgage servicers over their foreclosure practices said the banks would be sued if a settlement isn’t reached.

Illinois Attorney General Lisa Madigan and North Carolina Attorney General Roy Cooper threatened litigation if settlement talks with the companies, including Bank of America and JPMorgan Chase, break down.

“If we don’t get an agreement, we’re prepared to go to court,” Cooper told homeowner advocates at a meeting of state attorneys general in Chicago yesterday.

Cooper and Madigan are members of the executive committee of attorneys general which, along with officials from federal agencies, is negotiating with the banks.

Officials are seeking to set standards for the way the banks service loans and conduct foreclosures. They also want monetary relief for homeowners.

The AGs from all 50 states began investigating banks’ procedures last year.

State and federal officials are also negotiating with Wells Fargo, Citigroup and Ally Financial.