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Illinois to Receive $84 Million in Subprime Mortgage Settlement

Illinois to Receive $84 Million in Subprime Mortgage Settlement

Photo: Newsradio WTAX

Illinois’ share of a settlement with one of the country’s largest banks will be $84 million.

That’s part of the $7 billion the bank is paying for its role in marketing and selling risky mortgage-backed securities leading up to 2008 financial crisis. Several public pension funds, including the Illinois Teachers Retirement System and the State Employees’ Retirement System, will able to recoup losses from those investments.

“This will be $44 million to the pension funds,” Illinois Attorney General Lisa Madigan said, “so it is a help, but it does not fully eliminate the unfunded liability.”

Madigan says the remaining $40 million will go to consumer assistance programs, including blight reduction in areas with large numbers of foreclosed homes.

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