Michigan Attorney General Bill Schuette sent a letter to Joseph Smith, head of the Office of Mortgage Settlement Oversight, identifying areas where banks are still falling short of meeting terms of the National Mortgage Settlement.

The $25 billion settlement required the nation's largest mortgage servicers to pay for foreclosure relief efforts, compensate borrowers and follow a series of servicing guidelines that banned certain practices, including dual-tracking.

Schuette said his office will hold all five banks accountable when they fail to meet the settlement's standards.

"I take any violations of the requirements of the settlement very seriously, and as a member of the monitoring committee, will work closely with all involved to ensure that the settlement is properly enforced," Schuette told Smith in a letter.

Schuette also acknowledged the concerns of New York Attorney General Eric Schneiderman, who accused banks of not following the national standards.

"In particular, issues regarding servicers responding to borrowers in a timely manner to requests for modifications, servicers failing to notify borrowers of deficiencies in their applications for modification, giving borrowers time to supplement applications when necessary, timely decision making, and all the other servicing standards imposed by the settlement impact borrowers in a very real and direct way," Schuette wrote.

Under the terms of the National Mortgage Settlement, Smith monitors and determines if servicers are compliant with the established servicing guidelines. Smith works with a monitoring committee comprised of representatives of state attorneys general.

The monitoring committee meets periodically to address issues involved in the implementation and monitoring of the settlement.