 The funding stems from Madigan's 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."Effective mediation programs are proven to give
homeowners a fighting chance to save their homes," Madigan said.
"Borrowers who've gone through foreclosure mediation have
significantly better chances at receiving a loan modification and
reaching a positive outcome."
The funding announced yesterday is available for multiyear grants
to 501(c)(3) tax-exempt organizations that can demonstrate a
capacity to run effective mortgage foreclosure mediation programs.
Eligible organizations must have a solid plan for starting a
mortgage foreclosure mediation program that incorporates meaningful
access to housing counseling and pro bono legal representation for
eligible borrowers, and a sustainability plan that includes a
long-term funding plan, either through a dedicated filing-fee add-on
or another identifiable source. Projects must also include the
training of judges, key court personnel and volunteers on mortgage
foreclosure mediation
Proposals should include a brief summary of the proposed
services, a budget and background about the organization's expertise
and capabilities to provide the services. Applications are due
electronically by Aug. 15 to Deborah Hagan,
dhagan@atg.state.il.us,
and Tracy Celleti,
tcelleti@atg.state.il.us. Grants will be awarded on a rolling
basis.
[to top of second column] |
In addition to the foreclosure mediation funding commitment, Madigan
has also announced $20 million in grants for legal assistance
programs. The remainder of the settlement funds received by the
attorney general's office will be dedicated to programs and
initiatives that will help to counteract the historic levels of
foreclosure in Illinois through outreach to borrowers, housing
policy development and community revitalization.
In addition to the funds directed to Madigan's office, Illinois
borrowers also will receive an estimated $1 billion in direct relief
as a result of the national settlement. The direct borrower funds
will assist those who have lost their homes, are underwater or at
imminent risk of defaulting on their mortgages. The settlement also
calls for completely overhauling mortgage servicing standards to
prevent the kinds of abuses by lenders that many consumers have
faced while trying to save their homes and during the foreclosure
process.
Consumers seeking more information on the national settlement can
contact Madigan's Homeowner's Helpline at 866-544-7151, or visit her
website at
www.illinoisattorneygeneral.gov/consumers/
bankforeclosuresettlement.html. Information for borrowers is
also available at www.nationalforeclosuresettlement.com.
[Text from file received from the office
of
Illinois Attorney General Lisa
Madigan] |
