An Illinois bank company has closed its mortgage unit after an internal investigation found fraud, according to a filing with the Securities and Exchange Commission.

Castle BancGroup in De Kalb shuttered CasBanc Mortgage Inc. in January, the filing said, after uncovering irregularities in the underwriting and documentation of some mortgage loans it originated and sold. The irregularities include falsification of applicants' asset, income, and employment information, according to documents filed late last week.

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