Illinois AG Files Civil Charges Against Mortgage Broker For Deceptive Practices; Homeowners Facing Foreclosure Among Those Targeted

From the Office of the Illinois Attorney General:

• [A]ttorney General Lisa Madigan [...] 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.

***

• Attorney General Madigan’s Consumer Fraud Bureau has received 20 complaints against Advantage Mortgage Consulting. The lawsuit seeks a court order prohibiting Advantage Mortgage Consulting from engaging in deceptive business practices and imposing a civil penalty of $50,000 for each violation committed with the intent to defraud and a $10,000 penalty for each instance where a violation was committed against a person 65 years of age or older. Further, the suit asks the court to rescind the contracts signed as a result of these deceptive practices and offer full restitution to affected consumers. Finally, Madigan’s suit asks the court to order the defendants to pay all costs associated with the investigation and prosecution of the lawsuit.

For more, see Madigan Files Suit Against Chicago Mortgage Broker For Deceptive Practices.