Madigan Joins National Mortgage Fraud Unit

Madigan Joins National Mortgage Fraud Unit

Illinois Attorney General Lisa Madigan on Jan. 27 formally joined a national team tasked with holding lenders more accountable for acts that led to the country's housing crisis. The group, President Obama’s Financial Fraud Enforcement Task Force, will closely investigate questionable lender acts.

She joins U.S. Attorney General Eric Holder, Housing and Urban Development Secretary Shaun Donovan, Securities and Exchange Commission Director of Enforcement Robert Khuzami and New York Attorney General Eric T. Schneiderman on the task force.

“We are working on all fronts to hold accountable the many actors whose misconduct directly contributed to the financial crisis,” Attorney General Madigan said in a press release. “My office has cracked down on the nation’s largest lenders for defrauding homeowners and discriminating against minority borrowers. We’ve filed more lawsuits than any state against so-called mortgage ‘rescue’ consultants, and just this week, we filed suit against Standard & Poor’s for fraudulently claiming its independence and objectivity while giving out superior ratings to risky mortgage-backed security investments. I will continue to lead this fight as we collectively work to ensure that a disaster of this magnitude never happens again.”

Although it's a positive step, one has to wonder what kind of penalties, if any, this group can levy on individuals who have long since moved on from their executive positions?

Comments

Leave a comment
  • It looks to me like something other than real property is being transacted. I believe the issue is more about securities, also property, being transacted as real property so the question as to who or what really holds the mortgage becomes the issue. It's a land grab and the legal not savy homeowner is the pigeon. I was foreclosed on by a bank that was discharged in my bankruptcy and had sold the loan two years before they foreclosed. Therefore they had no standing to bring the action but they did any way and then they did not even release the mortgage. Something stinks in Chicago and the circuit court is not where justice is done. If your being foreclosed on then be sure to send "QWR" requests and check your credit to try and get a full understanding of your position.

Leave a comment

  • ChicagoNow is full of win

    Welcome to ChicagoNow.

    Meet our bloggers,
    post comments, or
    pitch your blog idea.

  • Advertisement:
  • Subscribe to Law of the Land

    Enter your email address:

    Delivered by FeedBurner

  • Latest on ChicagoNow

  • Advertisement:
  • Fresh Chicago News