According to the Associated Press, Illinois Attorney General Lisa Madigan announced Illinois would receive about $1 billion in a settlement involving five of the biggest mortgage lenders. The settlement involves numerous other states, which are to receive $25 billion from Ally Financial, Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.
Madigan's office noted Illinois' portion will be used to provide assistance to residents who have lost their homes, are close to defaulting on their home mortgages or owe more than what their homes are worth. Here are some facts about the attorney general's and the state's efforts to fight mortgage problems for residents:
* The Chicago Sun-Times reported in September that Madigan filed lawsuits against four Chicago-based firms, including ZeTrust Legal Services, Legal Modification Network, Loan Litigators International and Exelpol Management and Consulting.
* The lawsuits allege the companies participated in mortgage rescue scams that included charging customers for little or no help after promising to assist with foreclosure avoidance.
* Madigan also sued Standard and Poor's last month after receiving numerous complaints that the company was assigning high ratings on risky mortgages, according to WBEZ.
* This recent lawsuit specifically argues that Standard and Poor's engaged in "unfair, deceptive and illegal business practice(s)," but the company has continued to state the claims are without merit.
* In 2010, the Illinois attorney general, along with other attorney generals across the nation, launched a probe into mortgage practices to make sure mortgage providers would acting fairly and complying with the law, reported WLS.
* She also filed legislation that requires mortgage lenders to provide additional information to homeowners that are currently going through foreclosure.
* DS News noted that last year the Illinois Supreme Court established a special committee that specifically studies and creates proposals to help families facing foreclosures on their homes.
* The committee also seeks to improve the judicial process of home foreclosures across the state, which has become a major problem and in 2010, about 70,000 mortgage foreclosures were pending in Cook County alone.
* In September, the state announced it would be launching a program called "Illinois Hardest Hit," which would use $345 million in federal aid to provide zero-interest loans to about 15,000 families in Illinois, according to another Associated Press article.
* Qualifying families, those who have suffered a 25 percent drop income, are eligible to receive up to $25,000 over an 18-month period and the loans last for 10 years.
Rachel Bogart provides an in-depth look at current environmental issues and local Chicago news stories. As a college student from the Chicago suburbs pursuing two science degrees, she applies her knowledge and passion to both topics to garner further public awareness.
