Illinois AG offers hotline to collect on federal mortgage settlement
By KMOV Web Producer
CHICAGO (AP) -- Illinois Attorney General Lisa Madigan says homeowners who believe they're entitled to reimbursements from a multi-state settlement with large mortgage lenders or who have questions can contact a help line set up by the office.
Illinois is expected to get $1 billion of the roughly $25 billion settlement announced Thursday.
It involves allegations of widespread "robo-signing" of foreclosure documents and other fraudulent practices. Robo-signing is having employees sign papers they haven't read or using fake signatures to speed foreclosures.
Madigan's office says the money will be used to help Illinoisans who've lost homes, are at risk of defaulting on their mortgages or owe more than their homes are worth. The settlement also will overhaul standards to prevent abuses.