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AG announces $70M to help those hit by foreclosure

Published: Wednesday, July 17, 2013 3:42 p.m. CDT
Caption
(Charles Rex Arbogast)
Illinois Attorney General Lisa Madigan announces that her office is distributing $70 million to help Illinois communities hardest hit by the national foreclosure crisis during a news conference Wednesday, July 17, 2013, in Chicago. Madigan says the $70 million comes from Illinois' share of a $25 billion national settlement with the country's five largest bank mortgage servicers. (AP Photo/Charles Rex Arbogast)

CHICAGO (AP) — Attorney General Lisa Madigan says her office is distributing $70 million to help Illinois communities hardest hit by the national foreclosure crisis.

Madigan spoke at a news conference Wednesday in Chicago.

She says the $70 million comes from Illinois' share of a $25 billion national settlement with the country's five largest bank mortgage servicers. The banks were accused of fraudulent practices during foreclosure proceedings including "robo-signing." That means having employees sign papers they haven't read or using fake signatures to speed foreclosures.

Madigan says the $70 million is "a down payment" to help families, boost the housing market and stabilize communities.

An advisory council helped decide how to distribute the money. They recommended funding 54 proposals from organizations statewide.

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