CHICAGO, Ill. (Chambana Today) — Illinois has joined more than 20 states in a multistate enforcement action against a mortgage loan originator accused of violating federal education requirements under the SAFE Act.
The Illinois Department of Financial and Professional Regulation announced sanctions against Patrick Terrance Donlon, who regulators say directed another person to complete required education courses on his behalf and then claimed credit for the work. Donlon has agreed to surrender his Illinois mortgage loan originator license, is permanently barred from holding that license in the state, and is prohibited from serving as a control person for an Illinois residential mortgage licensee for two years.
“The Department takes misconduct by licensees very seriously and will act to ensure Illinois residents are protected from unlawful practices,” said IDFPR Secretary Mario Treto, Jr. “When individuals misrepresent their qualifications or evade required standards, the Department will hold them fully accountable.”
Under the settlement, Donlon must pay a total of $31,000 in fines across participating states and faces permanent or temporary bans on licensure in most jurisdictions. Regulators say his actions violated the SAFE Act, which requires minimum education standards for mortgage loan originators to protect consumers.
“We require that licensed professionals complete their continuing education to ensure our licensees have the highest levels of competence and ethics,” said Division of Banking Acting Director Susana Soriano. “With this action, the residential real estate market in Illinois has been protected and consumers can continue to expect the highest levels of professional service from their licensed mortgage loan originators.”
The investigation was led by regulators in Arkansas, Colorado, Florida, Iowa, Kansas, and Texas, with Illinois among 21 states participating in the settlement.