Illinois AG Alleges Deceptive Lending Practices/Refinancing Scheme In Suit Against Mortgage Broker

From the Illinois Attorney General's Office:

• As part of her ongoing efforts to fight mortgage fraud, Attorney General Lisa Madigan [yesterday] filed a lawsuit in Cook County Circuit Court against a Chicago-based mortgage broker for engaging in deceptive lending practices that have resulted in the loss of at least one consumer’s home.

• Madigan’s lawsuit, filed against Advantage Mortgage Consulting, Inc. and President Robert Enright, alleges that the defendants employed a variety of schemes to convince consumers— including many on the brink of foreclosure—that they would pay lower monthly mortgage payments when, in fact, their monthly rates later increased significantly. Specifically, the defendants used deceptive refinancing schemes, padded loans with higher than stated fees, failed to disclose prepayment penalties and brokered adjustable rate mortgages with consumers who believed they were agreeing to fixed-rate mortgages, according to the complaint.

• “Advantage Mortgage Consulting deceived consumers, convincing them to enter unknowingly into mortgages they simply could not afford or did not need,” Attorney General Madigan said.

For the entire Illinois AG press release, see Madigan Files Suit Against Chicago Mortgage Broker For Deceptive Practices.

See also, Chicago Sun Times: Attorney general's lawsuit alleges deceptive lending practices by mortgage broker.