CHICAGO (AP) - An agreement has been reached with Diamond Residential Mortgage Corporation, Attorney General Lisa Madigan with the Illinois Department of Financial and Professional Regulation announced.
The company will pay $1.2 million to eligible consumers who were defrauded by one of the company's branch managers.
This agreement resolves an investigation by Madigan's office and IDFPR into alleged mortgage fraud at Diamond's Springfield branch.
Diamond's Springfield branch manager Chris R. Schaller defrauded people looking for mortgage loans.
Schaller put them in a different type of transaction, a contract for deed, which can be financially riskier than a traditional mortgage.
In some instances, consumers did not receive signed copies of their agreements.
Madigan's office is conducting a separate investigation of Chris Schaller.
"I appreciate the Department of Financial and Professional Regulation's partnership with my office to root out mortgage fraud at Diamond Residential's Springfield branch," Madigan said. "I encourage people to file a complaint with my office if they think they could qualify to receive compensation."
The settlement money will be distributed by Madigan's office to consumers defrauded by Schaller.Â
People who want to be considered for compensation from the $1.2 million fund should file a complaint with Madigan's Consumer Fraud Bureau in Springfield. Complaint forms are available on Madigan's website or by calling her Consumer Fraud Hotline at 1-800-243-0618.
