Mortgage Fraud Blog is the premier website for news and information on mortgage fraud and real estate fraud throughout the United States.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of Smith Dollar, PC, is licensed to practice law in California and maintains offices in Santa Rosa, California. Email Ms. Dollar
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Six Mortgage Brokers Investigated by Illinois Mortgage Fraud Task Force
The Illinois Mortgage Fraud Task Force is continuing to investigate unregistered loan originators - most recently its efforts have been focused in the Chicago metropolitan area of Illinois. In its summer sweep, the Mortgage Fraud Task Force inspected mortgage licensees in the Metro East area.
The Mortgage Fraud Task Force found problems after inspections at the following licensees. These potential violations may result in disciplinary or other actions including revocation, suspension, fines or surrender of license:
Envision Mortgage Solutions, license number 6759105, located at 4731 Midlothian Turnpike, Suite 32, Crestwood, Illinois, Neil Coleman, 4731 Midlothian Turnpike, Suite 32, Crestwood, Illinois 60445 has been licensed since September of 2003. A Mortgage Fraud Task Force visit to this licensee found 28 Loan Originators who had produced over 500 loans without possessing the proper registration as required in the State of Illinois.
AM Mortgage, license number 6411, located at 6518 N. Lincoln Avenue, Lincolnwood, Illinois, has been licensed since March of 2002. A Mortgage Fraud Task Force visit found eight Loan Originators who had produced around 100 loans without possessing the proper registration, as required in the State of Illinois.
Express Funding, Inc., license number 6759512, located at 937 N. Plum Grove Road #d, Schaumburg, Illinois, has been licensed since February of 2005. A Mortgage Fraud Task Force visit discovered around 50 loans that had been originated by five Loan Originators, not possessing the proper registration as required in the State of Illinois.
Fidelity Mortgage Group, license number 6039, located at 13515 Barrett Parkway Drive, Suite 150, Manchester, Missouri, has been licensed since February of 2001. A Mortgage Fraud Task Force visit found the licensee had originated over 35 loans without employing a registered Loan Originator, as required in the State of Illinois.
Mainline Mortgage Group, license number 6759245, located at 3200 James Terrace, Alton, Illinois, has been licensed since September of 2004. A Mortgage Fraud Task Force visit to this licensee revealed over 25 loans originated without a registered Loan Originator with the State of Illinois. This visit prompted licensee to surrender the Mortgage Broker License.
Global Mortgage Company, license number 3209, located at 1857 E. 71st Street, Chicago, Illinois, has been licensed since September of 1992. A Mortgage Fraud Task Force visit found the licensee had no actively registered loan originators but originated over 25 loans. Dennis Wooff, 3200 James Terrace, Alton, Illinois 62002
The latest inspections conducted by the Governor’s Mortgage Fraud Task Force, found that six residential mortgage firms in the Chicago and East St. Louis regions used unlicensed loan originators to process more than 700 home loans. The number of companies and individuals slated for discipline by the Illinois Department of Financial and Professional Regulations (IDFPR) totals more than 45, since unannounced inspections across the state began last March.
“We have worked hard to protect families from fraud and abuse, and through these inspections across the state we’ve put mortgage companies on notice that we will not tolerate activities that could harm homeowners,” said Illinois Governor Rod R. Blagojevich.
The task force was established by Gov. Blagojevich to ensure that mortgage companies comply with the strict standards of conduct established for loan originators in the 2003 High Risk Home Loan Act.
One of the most important provisions of the law requires people who process mortgages to undergo training and background screening before being entrusted with borrowers’ financial and personal information. Loan originators must also pass a rigorous screening test to make sure they understand loan processing. IDFPR has the authority to issue fines of $2,500 for the first unlicensed loan originator it finds at any licensed residential mortgage company, and $500 for each additional unregistered loan originator. Individuals working as loan originators without the proper registration are subject to fines of $950 and a permanent notation on their file should they decide to register in the future.
During the initial registration of loan originators, 29,000 people applied for registration. Forty percent of those applicants failed the Loan Originator Exam and almost 800 applicants were denied licenses after background checks were completed. There are approximately 16,000 registered loan originators in Illinois.
How can I find out if a person has ever been licensed as a Mortgage Broker in Illinois or any other state. Is there a website that list names of brokers?
Failed Mortgage Firm Trustee Allowed $50,000 in Fees Union Leader
U.S. Bankruptcy Court Judge J. Michael Deasy will approve $50,000 in legal fees for the trustee of failed mortgage brokerage businesses Financial Resources Mortgage Inc. and CL&M Inc.
Bend Oregon Event to Help Homeowners Prevent Foreclosures Oregon.Gov
As part of an ongoing effort to help homeowners avoid foreclosure, state agencies are organizing a foreclosure-prevention event in Bend on Saturday, March 27, 2010.
Shelbyville Man Gets 2-Year Sentence For Loan Fraud Chattanoogan.Com
Prosecutor Gary Humble said the lost was approximately $2.3 million in the mortgage fraud involving hundreds of homes in the Shelbyville area.
Lend America, VP Ashley Banned from FHA Housing Wire
Michael Ashley, the embattled former vice president of Federal Housing Administration (FHA)-backed mortgage originator Lend America, and the company he worked for, were permanently banned from doing business in the industry last week.
Countrywide Tries to Pin Blame on Insurer Court House News
Countrywide Home Loans demands $111 million from Triad Guaranty Insurance, claiming Triad is trying to blame mortgage lenders for the insurer's role in the housing bubble and collapse.
Investors Say They Were Swindled in Property Scheme Fox 13 Now
Utah Division of Consumer Protection is joining forces with a few investors who claim they have been cheated by an agency called "Utah Mini Ranches.
Greenfield Man Accused of Housing Scam The Republic
A former real estate agent conned at least eight people by renting them properties actually owned by a federal agency and then running off with their deposits, prosecutors said.
Appraisal Institute Opposes Obama Administration's Plan for Homeowner 'Short Sales' PR News Wire
Citing concerns about increased mortgage fraud, four organizations representing more than 35,000 real estate appraisers today voiced their opposition to changes to an Obama administration program that will encourage "short sales" of homes.
Ownership Rights to Get Another Look TBO.Com
State lawmakers may beef up protections of property owners' rights by rewriting a law this spring that is at the center of a case of alleged fraud in Pasco County.
Thursday, February 18, 2010 F. Jeffrey Miller Trial Continued Testimony
As reported by Anne Mitchell, who viewed the trial:
Angela Parenza worked for Jeff Miller as the office manager for 7 or 8 years beginning in 1998. Parenza was indicted along with Miller and pled guilty to conspiracy to commit bank fraud and money laundering. Parenza testified that Miller or his contractors allegedly preferred to build all the...
Wednesday, February 10, 2010 F. Jeffrey Miller Trial Coverage Continued - Witness Testimony
Steve Middleton Testimony - Coverage Provided by Anne Mitchell
The Government continued in its cross examination of Steve Middleton. He was shown several HUD-1 statements involving sales of homes located in Overland Park, KS, and Olathe, KS. The HUD statements each allegedly showed line items of payments to (James) Moser & Associates, LLC's...
Monday, February 01, 2010 F. Jeffrey Miller Trial Coverage - Continued Witness Examination
According to Anne Mitchell, who is present in court for the trial:
Next Witness: Kelly Sanford
Kelly Sanford of the Federal Reserve was a short witness for the Government. Sanford manages electronic payments between banks and member financial institutions. He was shown copies of wire transfers and asked whether they coincided with the counts in...
Wednesday, January 27, 2010 F. Jeffrey Miller Trial - Prosecution Witnesses Continued
According to Anne Mitchell, who is viewing the trial:
January 13, 2010
Witness: Rick Hayes
Rick Hayes testified that on the day that he closed on his Miller Enterprise home, he received a phone call from the Kansas Banking Commission informing him that his loan was fraudulent. After the Hayes responded to a classified ad, they met with John...
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The information and notices contained on Mortgage Fraud Blog are intended to summarize recent developments in mortgage fraud cases and mortgage banking matters nationwide. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about mortgage banking, mortgage fraud matters or who believe they require legal counsel should seek the advice of an attorney. The creators, editors and sponsors of Mortgage Fraud Blog do not intend to create a confidential relationship or an attorney-client relationship by communication via or arising from this site.
Rachel Dollar, the editor of Mortgage Fraud Blog, is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors. She is an author and a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is a shareholder with the law firm of 
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