CHICAGO – As much as $3 million from a national foreclosure settlement with major lenders will be set aside to fund mortgage foreclosure mediation programs in Illinois counties that don’t have them.
Attorney General Lisa Madigan made the announcement Tuesday.
The money comes from a $25 billion national settlement in February with the country’s five largest bank mortgage servicers. They are Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank.
The payout settles allegations of widespread “robo-signing” of foreclosure documents and other fraudulent practices involving loans to struggling homeowners.
Madigan said mediation programs give borrowers a “fighting chance to save their homes” through things like loan modifications.
The $3 million is available for multiyear grants to qualifying tax-exempt organizations. Applications are due by Aug. 15.