HUD Secretary starts US tour in Illinois

AP News
Posted: Mar 08, 2012 3:25 PM
HUD Secretary starts US tour in Illinois

The head of the U.S. Department of Housing and Urban Development is launching a nationwide tour in Illinois to discuss a settlement with the nation's five largest mortgage lenders.

Secretary Shaun Donovan spoke in Chicago on Thursday to promote help available for homeowners.

Illinois will receive about $1 billion of the $25 billion settlement announced last month.

It involves allegations of "robo-signing" of foreclosure documents and other fraudulent practices occurring after the housing bubble burst. Robo-signing means having employees sign papers they hadn't read or using fake signatures to speed foreclosures.

The money will reimburse homeowners and improve standards.

Donovan says Illinois Attorney General Lisa Madigan was key in getting the settlement.

More than 3,000 homeowners have contacted Madigan inquiring about help.

Donovan says Friday he will be in Michigan.