Illinois AG Enters into $1.2 Million Settlement with Mortgage Company

On October 24, 2018, the Illinois Attorney General (Illinois AG) announced that it had entered into a settlement agreement with a mortgage company resolving an investigation by the Illinois AG’s Office and the Illinois Department of Financial and Professional Regulation (IDFPR) into allegations of mortgage fraud at one of the company’s branches.  According to the Illinois AG, the company cooperated with the AG’s Office and the IDFPR throughout the investigation.

The investigation involved allegations that one of the mortgage company’s branch managers defrauded consumers seeking mortgage loans.  According to the Illinois AG, the branch manager placed borrowers seeking mortgages in different, financially riskier transactions; failed to provide consumers with signed copies of their agreements; and engaged in fraudulent loan origination activities.  Under the settlement, the mortgage company has agreed to pay $1.2 million, which will be distributed to consumers defrauded by the branch manager.

The Illinois​ AG’s separate investigation of the branch manager is ongoing.