 The funding comes from Madigan's role in securing a $25 billion national
settlement with the nation's five largest bank mortgage servicers -- Bank of
America, JP Morgan Chase, Wells Fargo, Citibank and Ally Bank, formerly known as
GMAC. The settlement addressed allegations of widespread "robo-signing" of
foreclosure documents and other fraudulent practices while servicing loans of
struggling homeowners."The goal of a foreclosure mediation program is to
connect homeowners in crisis with legal assistance and housing counseling
services so they can accurately assess their options and pursue the best plan,"
Madigan said. "Because mediation has been proven to give homeowners a greater
chance to save their homes, these grant funds will help both families and
communities that have been devastated by the foreclosure crisis."
The $5 million from the settlement will fund three regional projects to
assist with the startup of foreclosure mediation programs in the following
judicial circuits where the judges are interested in pursuing a program: 1st,
2nd, 5th, 6th, 7th, 16th, 17th, 19th, 20th and 21st. In each judicial circuit,
the projects will initially focus on the counties with the highest number of
foreclosure cases and will begin by working closely with the circuit's judges.
In the northern region of the state, Northern Illinois University Law School
and nonprofit Resolution Systems Institute will partner to develop mediation
programs. In central Illinois, the University of Illinois College of Law will
work to develop and administer mediation programs in surrounding counties. And,
in southern Illinois, Dispute Resolution Institute, a Carbondale-based nonprofit
mediation program coordinator, will assist the courts with the startup of
mediation programs.
The three regional projects will help:
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Develop case
coordination systems.
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Work with housing
counselors and legal aid attorneys to assist homeowners who
participate in the foreclosure mediation programs.
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Develop an online
monitoring system to permit the mediation programs to input data
for tracking and evaluation.
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Evaluate and report outcomes and
efficiency of the mediation programs and develop ways to improve
the programs when needed.
As part of the national foreclosure settlement, Madigan's office
recovered money from the banks to remediate the historic levels of
foreclosures in Illinois. The announcement this week is part of an
ongoing plan to distribute the settlement funds to legal assistance
programs, housing counseling services and community revitalization
programs in an effort to counteract the impact of foreclosures on
communities throughout Illinois.
Madigan has already distributed $20 million for legal aid
services for homeowners and renters in distress. In addition, she
has solicited proposals for $70 million in settlement funding to be
used toward housing counseling and community redevelopment projects.
A review of those proposals is ongoing.
[Text from file received from the office
of
Illinois Attorney General Lisa
Madigan]
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