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IL AG Knew Financial Crisis Would Happen
When it comes to the crisis in the financial markets, Illinois' attorney general says "I told you so."

Attorney General Lisa Madigan says she saw the financial crisis coming a mile away. "This entire disaster that's taking place with our economy is being caused by sub-prime mortgages, and the fact that there was lax to no regulation from the federal level when it came to putting borrowers into mortgages," she said. "You've all heard me complain about that for a long period of time."

Madigan says her office has heard from defrauded or deceived borrowers for more than four years, as well as borrowers who have turned to purveyors of fraudulent "mortgage rescue" schemes. She says her office has worked to help keep these borrowers in their homes through refinancing, but since most of these loans are through federally regulated institutions, there is little her office can do about the underlying loans themselves.

Madigan says brokers engaged in fraudulent and deceptive practices to place home buyers in mortgages they didn't understand, couldn't afford and couldn't get out of. Her office has sued Ameriquest, Countrywide and Household Finance Corp. over this.

(Source: Illinois Radio Network)
10 05 08 by Newsroom
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