17 businesses and individuals penalized for mortgage flipping

Seventeen businesses and individuals are to face disciplinary action, as a direct result from their involvement in a mortgage fraud ring. The fraud had targeted five properties in the South Side, where they used one mortgage company.

The investigation has been going on for three months, where State officials had been watching appraisers, loan originators, mortgage brokers and title agencies. Those involved will face fees and complaints, license revocation and even suspensions.

For those who do not know what mortgage flipping is, it means that a property is purchased below market value, and then soon after sometimes only a day is sold for an inflated price.

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