Illinois, other states join foreclosure investigation

Ill., other states join foreclosure investigation

By Bethany Krajelis
Law Bulletin staff writer

SPRINGFIELD — Illinois has joined a multi-state task force that will investigate the nation’s major loan servicers, Attorney General Lisa M. Madigan announced Wednesday.

The effort was spurred by recent allegations that some of these companies have been mishandling foreclosure filings.

Madigan is one of 49 attorneys general on the task force and will also serve on the group’s 12-member executive committee. The attorneys general, along with 37 state bank and mortgage regulators, will look into whether loan servicers have been filing foreclosure documents with procedural errors.

The investigation comes just days after some of the nation’s largest loan servicers — Ally, Bank of America and JP Morgan Chase— admitted that their employees have engaged in “robo-signing,” a process in which they signed off on foreclosure affidavits without confirming their accuracy or verifying the loan information.