The Chicago Reporter Illinois Attorney General Subpoenas Countrywide

Illinois Attorney General Subpoenas Countrywide

DATA: Click here to see a list of top 25 local high-cost lenders.

Illinois Attorney General Lisa Madigan has subpoenaed Countrywide Financial as part of its investigation into questionable lending practices throughout the region. Click "here" to read "Countrywide Subpoenaed by Illinois" by The New York Times.

The move comes on the heels of a Nov. 29 event in which the Reporter revealed that Countrywide had given the most high-cost loans in the region. In August, the Reporter’s investigation showed that, over the last three years, the Chicago region has led the nation in the number of high-cost loans.

Madigan, who headlined the November forum, pledged her support to investigate unfair business practices among lenders as the foreclosure crisis continues to unfold. The forum was sponsored by the Reporter, the Community Renewal Society and the Chicago Urban League.

In addition to Madigan’s investigation, the state of Illinois has opened a separate investigation into possible discriminatory practices in the way loans were given. Officials from the Illinois Department of Financial and Professional Regulation met with Reporter staff Dec. 4 to discuss their investigation in order to hold lenders accountable for wide racial disparities in mortgage rates, as revealed by the Reporter. The meeting came after Gov. Rod R. Blagojevich announced Dec. 2 that his Mortgage Fraud Task Force, which was launched about two years ago, would examine possible discriminatory practices by the lending industry in Illinois.

Click here to download the press release for the Nov. 29 event.

Click here to download a .pdf file of the Reporter's presentation.

MEDIA COVERAGE:
Below is a list of other media outlets that covered this news and the Reporter's Nov 29 forum.

Chicago Sun-Times, December 3, “Borrower Beware”

CNN en Español, November 29, interview with Kimbriell Kelly and Fernando Diaz

Medill Reports, November 29

The New York Times, Dec. 13, "Countrywide Subpoenaed by Illinois"

WBEZ-FM, Amplified public meeting archive recording

WLS, November 29

WMAQ, December 3

MSNBC, December 3

WVON-AM, "Cliff Kelley Show"
November 28 interview with Illinois Attorney General Lisa Madigan
December 3 interview with Kimbriell Kelly

RESOURCES:
Click here for a pdf file detailing Illinois Housing Development Authority’s “Homeowner Outreach Days,” in which mortgage loan providers, housing assistance groups and state agencies come together to help homeowners struggling to pay their mortgages.

Click here for a listing of HUD-certified counseling agencies in Illinois.

Apr 28The Reporter captured the Chicago Headline Club’s 2008 Watchdog Award for Excellence in Public Interest Reporting. The Reporter was also honored with two Peter Lisagor Awards for Exemplary Journalism.May 8The Reporter received a meritorious achievement award in the 19th annual Herman Kogan Media Awards sponsored by The Chicago Bar Association.May 16Reporter Jeff Kelly Lowenstein recently appeared on WBEZ 91.5-FM's Eight Forty-Eight show to discuss his work on regional transportation system. Visit here to listen to the segment.May 18Tune in to the next City Voices show where The Chicago Reporter will host a discussion about the Chicago region’s need for an expanded and better utilized public transit system. The show airs on May 18 at 6:30 p.m. on WNUA 95.5-FM.

In September, The Chicago Reporter revealed that African American homeowners in the Chicago metro area were nearly three times more likely to get “high-cost” loans than their white and Asian counterparts. Latinos were two times more likely to get high-cost loans than whites and Asians. A new Reporter analysis shows that the trends still hold, and that the region’s top 25 high-cost lenders are responsible for a significant portion of the racial gap.

» Read More

Elderly Prey

Some mortgage lending experts say seniors are common targets for predatory lending practices. The Reporter shares two examples, along with tips from housing counselors to prevent problems.

» Read More

SB1167

Illinois Senate Black Caucus cites Reporter data in letter supporting Senate Bill 1167.

» Read More

New bill, same debate

It’s unclear how SB 1167 will affect the housing market now that the current proposal seeks to affect a larger area.

The Attorney General reacts to "The high price of home ownership".

According to an analysis by the Reporter, for three years in a row, the Chicago metro area has led the nation in high-cost loans.

Citing recent data from the Reporter, Gov. Rod R. Blagojevich says his Mortgage Fraud Task Force will investigate racial disparities in lending. Illinois Attorney General Lisa Madigan pledged at a Nov. 29 Reporter event to continue her office’s efforts around the issue.

Wealthiest African American homeowners more likely to get high-cost loans than poorest white homeowners.

» Read More

Paying more

Black and Latino homeowners received high-cost loans more often than whites or Asians.

» Read More

Shop around

African American and Latino homeowners account for a far larger share of individuals who got mortgages from subprime lenders.

» Read More

Undercut and underserved

Black and Latino homeowners often received high-cost loans at disproportionate rates.

» Read More

High-cost havens

Chicago's South and West sides have higher percentages of high-cost loans.

In the Chicago metro area, Latinos are the fastest-growing consumer group of subprime lenders

Local groups work to improve resident's financial education and awareness.

» Read More

RSS Feeds