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Mortgage lender pays $1.3M after fraudulent loan activity

October 26, 2018

SPRINGFIELD, Ill. (AP) — Illinois regulators have disciplined a Lake Forest-based mortgage lending operation over negligent supervision of a branch office.

Attorney General Lisa Madigan and the Department of Financial and Professional Regulation reported Thursday that Diamond Residential Mortgage Corp. agreed to pay nearly $1.3 million in remediation and the cost of an investigation.

Investigators allege that employees at DRMC’s Springfield branch office engaged in fraudulent loan origination activities.

DRMC says in a statement that the problem stemmed from an employee’s unauthorized outside activities. The employee and his associates were fired. The company cooperated with the investigation. It helped structure the remediation fund to help those affected by the employee’s conduct regardless of whether they were DRMC customers.

Those who believe they’re entitled to recovery should file a complaint with the attorney general .

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