Monday, July 16, 2012
Refunds, Buying Support In AG Settlement With Wells Fargo
The settlement made Madigan the only state Attorney General to win an agreement in a fair lending lawsuit against a national bank. “Wells Fargo’s discriminatory lending practices were illegal. They helped destroy a generation of wealth in African-American and Latino communities in the Chicago metro area,” Madigan said. The settlement provides for at least $15 million in restitution to Illinois borrowers whose loans were originated between 2004 and 2009. An additional $7 million will fund down payment assistance for Illinois borrowers in need.
In addition, the settlement provides for an independent administrator, who will contact identified borrowers and distribute compensation payments. Individuals who believe they were victims and have questions about eligibility also can email email@example.com for more information.
Madigan's after groups she considers the bad guys in the housing bubble collapse. Recently she filed a consumer fraud lawsuit against Standard & Poor’s bond ratings agency alleging the company compromised its independence by doling out high ratings to unworthy, risky investments as a corporate strategy to increase its revenue and market share.