AG Madigan says $20M to assist homeowners, renters

Illinois Attorney General Lisa Madigan says the $20 million the state received from a national foreclosure settlement will be used to help homeowners and renters affected by the foreclosure crisis.

She says the money will be given to legal assistance programs that in turn will provide access to the justice system for homeowners and renters.

Madigan says helping families stay in their homes will “create a domino effect” for the state’s economy.

Attorneys general from Illinois and other states reached 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 stemmed from a lawsuit over allegations of fraudulent practices by the lenders.