Madigan says mortgage lawsuit settlement is model

Attorney General Lisa Madigan says federal officials can learn something from Illinois and 10 other states about how to help struggling homeowners.

Attorney General Lisa Madigan says federal officials can learn something from Illinois and 10 other states about how to help struggling homeowners.

Madigan’s office and California officials negotiated a national $8.7 billion settlement over deceptive mortgage practices with Bank of America that will help tens of thousands of borrowers modify their risky loans.

For Illinois, Madigan said Monday that means about $185 million in loan modifications.

Madigan says the settlement’s loan modification program is a model other lenders and the U.S. Treasury should look at to help homeowners.

Illinois initially sued California-based Countrywide Financial over its loans but settled with Bank of America because they acquired Countrywide this summer.

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