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.

Recent Headlines

in Local

Opponents Upset Chief Illiniwek Merchandise Still Available Online

u of i urbana

Assistant Athletic Director Marty Kaufmann says the items are available because there wasn't "any edict to wipe all history or tradition from our books."

in Local

Lisa Madigan Calls for More Compassion Towards Victims of Sex Crimes

Lisa Madigan

The state's Attorney General says a shift in attitude toward victims of rape, sexual assault, and other such crimes will lead toward more of these crimes being reported.

in Local

Arrest Made in the Murder of a Former Pleasant Plains Woman

kendra hatcher

One suspect is in jail and another is being sought in the murder of a former Springfield area woman.

in Local

Alleged Improprieties Force Out Two Parole Board Members

wtax 011015

Two members of the Illinois Prisoner Review Board have been removed in the wake of published reports of erroneous filings with the state and the federal government.

in Local

Rauner Addresses Concerns of State’s University Presidents


The Governor was in Urbana Friday to address the concerns of nine presidents over universities in Illinois.