Illinois Reaches Settlement Over "Shoddy" Home Loans

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By WSIL

MARION -- Illinois will get about $300,000,000 in a settlement with Bank of America for selling faulty mortgages. 

About a third of that money will go to consumers impacted by those bad deals. It's part of a national settlement by the U.S. Department of Justice and several attorneys general.
     
Thursday in Marion, Attorney General Lisa Madigan said Bank of America's misconduct contributed directly to the 2008 financial crisis and the Great Recession.
 
"They had almost eviscerated really what I would call the under writing standards, so instead of making sure that somebody could sustain a loan and making sure the terms of that loan were in fact sustainable that had all gone to the wayside because of the fact that people just wanted to originate those mortgages and sell those off, so they could be bundled and securitized," Madigan said.
 
If you were impacted by a bad loan from Bank of America, you can call the bank or contact the Illinois Attorney General's Homeowner Helpline: 
     
It's 866-544-7151.
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