Chicago, Illinois, January 19 – The Illinois Department of Financial and Professional Regulation and financial regulatory agencies in Illinois from 42 other states reached settlements with 441 mortgage loan originators across the country who deceptively claimed to have completed annual continuing education as required by state and federal law. Twenty-three loan originators hold licenses here in Illinois.
“Illinois is proud to join other states in reaching this broad settlement. Collaboration on this demonstrates states’ ability to hold institutions and individuals accountable to the standards that protect consumers across the country and here in Illinois,” Mario Treto, Jr., acting secretary of the Illinois Department of Financial and Professional Regulatory.
Through the settlements, the mortgage loan originators agreed to relinquish their licenses for three months, pay a $1,000 fine for each state in which he holds a license and obtain continuing education beyond the Fair and Safe Enforcement of Mortgage Licensing Act (the Safe Act).
Congress enacted the SAFE Act to enhance consumer protection and reduce fraud through minimum standards for licensing and registration of state-licensed mortgage loan originators. The law calls on states to implement and enforce these standards, and each state has enacted its own version of the SAFE Act requiring mortgage loan originators to have at least 20 hours of prior licensing education and eight annual hours of continuing education.
Danny Yen, owner of Real Estate Educational Services based in Carlsbad, California, is facing administrative enforcement action for filing fake certifications and taking courses on behalf of mortgage loan originators through other education providers in violation of SAFE.
The non-formal education activity was detected through a gesture-based authentication tool called BioSig-ID, which is used to monitor all online courses approved under the mandate of the SAFE Act.