CHICAGO — A $1.2 million settlement between an Illinois residential mortgage company and state Attorney General Lisa Madigan has been reached to settle charges of alleged mortgage fraud.
According to the Illinois Attorney General's Office and the Illinois Department of Financial and Professional Regulation (IDFPR), Diamond Residential Mortgage Corporation will pay the $1.2 million in restitution to consumers who were seeking mortgage loans from the company. Diamond's Springfield branch manager is accused of defrauding customers by placing them into a "contract for deed" that is financially riskier instead of a mortgage agreement, the Attorney General's Office said.
Several consumers did not receive any copies of signed documents from the branch manager who is also accused of fraudulent loan origination, Madigan's office said.
"I appreciate the Department of Financial and Professional Regulation's partnership with my office to root out mortgage fraud at Diamond Residential's Springfield branch," Madigan said in a statement. "I encourage people to file a complaint with my office if they think they could qualify to receive compensation."
Madigan and the IDFPR will jointly conduct a claims process for customers effected by the Springfield branch manager's actions, according to the Attorney General's Office.