The nation’s biggest lenders are reportedly preparing to create a compensation fund for borrowers who lost their homes in improper foreclosures. According to the Washington Post, banks are negotiating details with officials heading the foreclosure investigation by all 50 state attorneys general. The probe was launched last month following revelations mortgage companies made misleading or fraudulent statements and signed off on documents without proper review to approve foreclosures. The attorneys general are focusing on the three largest mortgage servicers—Bank of America, JPMorgan Chase and Wells Fargo—with other banks to follow. The news comes as executives from some of the nation’s top banks appeared before a Senate Banking Committee hearing on the foreclosure crisis. Committee chair Christopher Dodd (D-CT) said that widespread banking practices are threatening homeowners.

Sen. Christopher Dodd: “Many believe that the robo-signing errors are simply the tip of a much larger iceberg, that they are emblematic of much deeper problems at the mortgage servicing business, problems that have resulted in homeowners, of course, losing their homes in unjustifiable foreclosures. In fact, servicing practices may be putting homeowners at risk.”

During the hearing, Chase Home Lending chief executive David Lowman was interrupted by protesters as he delivered prepared remarks. One protester unveiled a banner reading “Dave Lowman lies.”