Illinois Regulator Tags Unlicensed Outfit With Fines, C&D Order For Alleged Racket That Clipped Homeowners With Upfront Fees For Failed Loan Mods

From the Illinois Department of Financial and Professional Regulation:

• Governor Pat Quinn’s Mortgage Fraud Task Force (MFTF) [] announced the results of a recent investigation into alleged unlicensed and improper mortgage loan modification activities by Avatar Realty Group, also known as Monroe Realty and Financial Enterprises and Arthur R. Monroe of Oswego.
• The MFTF learned of possible mortgage fraud when a homeowner called the 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.

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• The MFTF 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.

For the Illinois IDFPR press release, see Mortgage Fraud Task Force Investigation Leads to Multiple Disciplinary Actions.

Go here for the Cease & Desist Order and here for the Complaint.