Mortgage foreclosure mediation programs in Illinois counties that lack them will receive as much as $3 million from a national foreclosure settlement with major lenders, Illinois Attorney General Lisa Madigan announced.
The money comes from a $25 billion settlement in February with the country's five largest bank mortgage servicers - Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co., 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 on Tuesday said mediation programs give borrowers a "fighting chance to save their homes" through things like loan modifications.
The money is available for multi-year grants to qualifying tax-exempt organizations. Applications are due by Aug. 15.
