 "The one sector of our economy that has shown limited signs of
recovery is the housing market," Madigan said. "Providing critical
resources for legal assistance programs will create a domino effect
in the marketplace. Helping a family stay in their home benefits not
just that family, but the surrounding community, as well as local
and state governments, all of which must happen to stabilize the
housing market and revitalize the economy."Madigan's announcement
stems from her role in securing a $25 billion national settlement in
February with the nation's five largest bank mortgage servicers --
Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally
Bank, formerly GMAC. The settlement addressed allegations of
widespread "robo-signing" of foreclosure documents and other
fraudulent practices while servicing loans of struggling homeowners.
As part of the settlement, the attorney general's office will
recover money from the banks to remediate the historic levels of
foreclosure in Illinois. Madigan's announcement is the first step in
the distribution of that funding to be used to assist homeowners and
communities in recovering from this crisis through funding for legal
assistance programs, housing counseling services and community
revitalization efforts statewide.
[to top of second column] |
"We need to give homeowners a fighting chance to save their homes
from foreclosure," Madigan said. "The best way we can help is by
providing distressed borrowers with legal representation to ensure
they have an advocate to fight for them in the courtroom and that
they will be treated fairly in the process."
The settlement will also provide direct relief to affected
borrowers in Illinois and completely overhaul mortgage servicing
standards to prevent abuses by lenders similar to what many
consumers have faced while trying to save their homes during the
foreclosure process.
The attorney general urged consumers seeking more information to
contact her Homeowner's Helpline at 866-544-7151 or visit
www.illinoisattorneygeneral.gov/consumers/
bankforeclosuresettlement.html. Borrowers can also visit
www.nationalforeclosuresettlement.com.
[Text from file received from the office
of
Illinois Attorney General Lisa
Madigan] |
