The Illinois Department of Financial and Professional Regulation suspended the licenses of mortgage lender, Michael Strauss, and his business, Smart Rate Inc. Strauss, who is based in suburban Chicago, was suspended due to a civil money penalty involving his role in a kickback scheme that defrauded investors and borrowers.
At the time of the incident, Strauss and Smart Rate were regulated as a MSB, mortgage banker, and residential mortgage lender by the Illinois Department of Financial and Professional Regulation. Smart Rate provided services such as mortgage brokering, related services and advertising, as well as providing assistance to customers with obtaining home equity products, conventional loans, bridge loans, reverse mortgages, home equity lines of credit, and other types of loan and investment products.
The Illinois Department of Financial and Professional Regulation found that Strauss and Smart Rate defrauded borrowers and investors, in violation of federal and Illinois law, by claiming to originate, close and service loans when, in fact, they didn’t. Smart Rate allegedly received payments for interactions that were never documented and for services which weren’t performed.
The suspension of Michael Strauss and Smart Rate from the Illinois Department of Financial and Professional Regulation will ensure that the mortgage lender and brokerage are held accountable for their role in the kickback scheme. In addition, the Illinois Department of Financial and Professional Regulation’s action serves as a warning to other mortgage lenders and brokers either currently operating, or considering operating, in the state of Illinois.
You can read this full article at: https://www.housingwire.com/articles/regulator-in-illinois-suspends-michael-strauss-smart-rate-licenses/(subscription required)
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