Mortgage Fraud Investigation Leads to Disciplinary Actions

Allison Tussey —  June 14, 2011 — 2 Comments

Avatar Realty Group, also known as Monroe Realty and Financial Enterprises, and Arthur R. Monroe, Oswego, Illinois, were subject to disciplinary action resulting from an investigation into alleged unlicensed and improper mortgage loan modification activities in Illinois.

Possible mortgage fraud was discovered when a homeowner called the Illinois Mortgage Fraud Task Force (MFTF) hot-line. He had gone to the company for help in saving his home from foreclosure after hearing an ad on Polish language radio about loan services offered by Monroe. The company and Monroe demanded a $150 consulting fee and required an up-front payment of $1,125 for loan modification services. The MFTF learned of the situation after the homeowner lost his home because the loan modification services were not performed and the loan was not modified.

The Mortgage Fraud Task Force investigation resulted in multiple disciplinary actions. IDFPR is ordering Avatar Realty to cease and desist its unlicensed loan modification activities and is fining the firm $25,000 for violating the Residential Mortgage License Act of 1987. The Department is also revoking the prior loan origination registration of Arthur Monroe for not having a current license to provide loan services and failing to meet the law’s standards of conduct. Finally, the Department has filed a disciplinary action on Monroe‘s real estate broker’s license for exceeding the scope of licensed activities.

Illinois Governor Pat Quinn’s MFTF announced the disciplinary actions.

The Illinois Mortgage Fraud Task Force was awarded the 2010 Council on Licensure, Enforcement and Regulation (CLEAR) Investigative Excellence Award. The Task Force, which includes investigators, managers, and attorneys representing each of IDFPR’s three divisions (Banking, Financial Institutions, and Professional Regulation), has the authority to examine every aspect of a residential real estate transaction, from the listing of a property for sale to the closing of the purchase and sale transaction. Since its inception, the MFTF has taken disciplinary action against more than 100 persons and entities and assessed fines in excess of $2 million.

“Predatory business practices and outright fraud are particularly prevalent and egregious in communities in which English is not the primary language,” said Brent E. Adams, Secretary of Financial and Professional Regulation. “We hope today’s actions make the public and businesspeople aware that financial predators cannot hide behind a foreign language.”


Allison Tussey

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2 responses to Mortgage Fraud Investigation Leads to Disciplinary Actions

  1. Timothy Ichiro Takeshita April 28, 2013 at 3:06 am

    Forum Reply:
    Mortgage Fraud Investigation Leads to Disciplinary Actions
    June 14, 2011 — 1 Comment
    This is really quite surprising to me because I cannot believe that this company even attempted this. Obviously, if a borrower came to a company to do a loan mod, the borrower would expect it to be completed upon payment. The company was ignorant thinking that the borrower wouldn’t find out and his hose later being foreclosed, due to the actions not taken by the loan company. If I were the borrower, I would have sued that company for the money that I could, due to the fact that they made my family lose our home, the humiliation, the money lost, ect.

  2. Get a lawyer.When exactley are we going to indite the heads of the banks that caused this mess.There are legit companies out there that are lawyer based to help people.Have you tried to negotiate with the bank on your underwater loan?Hud came out with short refis over a year ago which would reset your value but as of now barly anybanks are doing it.I think if people really understood what the banking system did to the american people selling thier ponzi scheem to the world we would be rioting.Instead they just pass laws to stick it to us again.wells Fargo just posted a 3.5 billion dollar quarterly earnings.How is that possible?We are all upsidedown on our homes and they are making 14 billion a year?I call scam!!!!

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