State regulators said Friday they p...

State regulators said Friday they prohibit down a mortgage fraud scheme that might have cheated Chicago area residents not at home of title to their firesides

Officials said the fraud involved a loan originator from the southward Side, a mortgage broker with a downtown office and seven interconnected title insurance companies based in Palatine. They said the scheme was in like manner complex that they're still trying to sort not at home how many homeowners might be affected.

The Department of Financial and Professional Regulation said up to $15 million in loans arranged according to Charles White Jr. was diverted to a real estate management company he regulates White allegedly worked through Mutual Trust Funding Corp. to find buyer of domestic circles whose owners were near foreclosure.

White had the possessors sell their homes for a fraction of their market value, using a contract that give leave to them repurchase their homes if their financial condition improved, officials said. In the meantime, they could remain in the houses and pay fissure they said.

Reynold Benjamin, an assistant director at the state agency, said White then altered documents to render certain that the mortgage cash and rentals were smoke-pipeed to his company, called judgments Have Not Seen. White none paid money owed to the previous lender or to the homeowner Benjamin said.

White, of the 400 mould of West 87th, has had his license as a loan originator suspended. The state agency issued an juncture order revoking the license of Mutual Trust, based at 120 W Madison.

It also revok the licenses of seven title agencies it said were conspirators in the scheme. Using like names as All American Title Agency and Palatine Title Agency, the businesses are confessed by Christy and Patricia Jepson

The state said the same of the title firms, Title girdle has a 30 percent ownership interest in the name of White's grandmother, Elnora White. The companies were clos as of Monday, officials said.

White and the Jepson could not be reached. No single answered at the telephone listing for vigilances Have Not Seen, with a location at 800 s Wells.

Benjamin said his agency's investigation could lead to criminal charges. Homeowner who might be involved should contact the department at (217) 558-7009

droeder@suntimes.com

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