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Illinois Attorney General Lisa Madigan
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September 30, 2010

ATTORNEY GENERAL MADIGAN DEMANDS MEETING WITH SECOND MORTGAGE LENDER AS FORECLOSURE CONTROVERSY GROWS

Madigan Seeks More Information on Possible Foreclosure Abuses

Chicago — Attorney General Lisa Madigan today issued a letter to the mortgage lender JP Morgan Chase demanding a meeting to address concerns the company has violated the state’s Consumer Fraud Act in its pursuit of Illinois homeowners in foreclosure. Madigan’s letter follows the lender’s decision to suspend thousands of foreclosures as it reexamines its court filings for potential inaccuracies.

On Wednesday, JP Morgan reportedly halted 56,000 foreclosures nationwide because its employees may have improperly prepared documents used to support those foreclosures. Attorney General Madigan requested that JP Morgan immediately provide her office with details on the effect these potential inaccuracies could have on Illinois homeowners. Specifically, she is asking for the number of homeowners affected by the stay, the names of Illinois law firms retained by JP Morgan to pursue foreclosure actions, the details on how these firms will implement and monitor the stay and the length of the suspension.

“With JP Morgan now acknowledging possible abuses in preparing court documents, the impact on homeowners in our state and across the country could be great,” Madigan said. “As with Ally Bank, if I determine JP Morgan was recklessly signing off on foreclosure filings in our courts, I will hold them accountable. These struggling homeowners deserve better.”

Madigan’s letter comes less than a week after demanding a similar meeting with Ally Bank. An employee with the company formerly known as GMAC testified in a Florida court case that he routinely signed affidavits for foreclosure lawsuits and submitted them to Ally’s attorneys without reviewing the homeowners’ loan documents. Those affidavits were then filed with the court in support of Ally’s right to foreclose on the homes. The employee testified that he signed at least 10,000 affidavits a month without reviewing the underlying information and thus had no way of knowing whether the information in the affidavits was actually true.

Concerned homeowners can call the Attorney General’s Homeowners’ Referral Helpline toll free at (866) 544-7151.

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