Illinois Attorney General announces $1.2 million settlement to resolve mortgage fraud allegations

State Issues State Attorney General Settlement Mortgages

On October 24, the Illinois Attorney General, along with the Illinois Department of Financial and Professional Regulation, announced a settlement with a residential mortgage company for allegations of mortgage fraud by one of the branch managers. According to the press release, the branch manager allegedly (i) placed borrowers who believed they were obtaining a traditional mortgage into a “contract for deed,” which can carry greater financial risks; (ii) failed to provide some borrowers signed copies of their agreements; and (iii) participated in fraudulent loan origination activities. The company agreed to pay $1.2 million in restitution to the Attorney General’s office, which will distribute the proceeds to defrauded consumers.