MADIGAN ISSUES REPORT DETAILING $100 MILLION IN FORECLOSURE HELP & REBUILDING EFFORTS
$100 Million in Funding from National Foreclosure Settlement that Madigan Helped Lead Benefitted Communities Across Illinois
Chicago — Attorney General Lisa Madigan today issued a report detailing $100 million in funding her office has awarded to housing organizations throughout Illinois to rebuild communities that were hardest hit by the foreclosure crisis.
The funding stems from the 2012 $25 billion national foreclosure settlement that Madigan helped lead in the aftermath of the nation's housing crisis. Madigan, her counterparts in other states and the federal government reached the settlement with the nation's five largest banks – Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank – over allegations of widespread “robo-signing” of foreclosure documents and other fraudulent practices that affected struggling homeowners. The settlement was the second largest settlement ever obtained through joint action of state attorneys general.
“Too many Illinois homeowners and communities were devastated by the 2008 financial crisis and subsequent foreclosure crisis,” Madigan said. “This national settlement has provided Illinois homeowners with more than $2 billion in mortgage relief and provided $100 million to rebuild communities in Illinois. I have worked for years to help people stay in their homes and revitalize communities devastated by foreclosures.”
Under the settlement, Illinois homeowners received $2 billion in direct mortgage relief. In addition, Madigan secured $100 million in funding for the state that she allocated to legal aid programs in Illinois, foreclosure court mediation programs, housing counseling efforts, as well as programs and initiatives to help rebuild communities and provide access to housing in communities most affected by the foreclosure crisis.
As a result of Madigan's $100 million in funding, more than 55,000 homeowners were provided with legal assistance, and eight foreclosure mediation programs were created in judicial circuits in Illinois, which saved 1,100 homes. In addition, with Madigan's funding, statewide more than 3,200 homes were created or stabilized, more than 54,000 households received housing counseling help, and over 5,000 foreclosures were avoided.
The funding supported new land banks in urban, suburban and rural communities, collaborative cross-jurisdictional revitalization efforts and new models for providing access to housing, and new financing strategies to ensure the availability of rental units and creating revolving homeownership funds for acquisition and renovation.
A copy of Madigan's report can be found on her website.