by Calculated Risk on 7/06/2011 05:13:00 PM

In February, the settlement was rumored to be $20 billion.

Then in May the settlement was rumored to be $5 Billion.

Now the NY Post is reporting $60 billion!

From the NY Post: AGs, banks near $60B deal on foreclosures

America's biggest mortgage servicers are closing in on a deal with federal and state officials to settle some of the thorniest foreclosure fiasco problems -- including the robo-signing issue, The Post has learned.

The proposed settlement with the Department of Justice and 50 state attorneys general, once thought to be in the neighborhood of $20 billion, could range as high as $60 billion and include a provision for principal reduction, sources close to the discussions said.

But what does "$60 billion" really mean? If the final number is in the $60 billion range, it will probably include already completed principal reductions and modifications. If so, the headline number would be meaningless.

Update: From Barclays Capital analysts via the WSJ: Here’s How a $60B Foreclosuregate Settlement Might Get Divided (ht sum luk)