Mortgage lender pays $1.3M fine for fraudulent loan activity

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SPRINGFIELD, Ill. (AP) _ Illinois regulators have fined and disciplined a mortgage lending operation over fraudulent operations.

Attorney General Lisa Madigan and the Department of Financial and Professional Regulation reported Thursday that Diamond Residential Mortgage Corp. agreed to pay $1.3 million and be placed on probation for 36 months.

The agency’s Division of Banking determined that employees at DRMC’s Springfield branch office engaged in fraudulent loan origination activities.

DRMC says in a statement that the problem stemmed from a former employee’s unauthorized outside activities. The employee and those associated with him were fired. The company cooperated in structuring 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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