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.