IL Predatory Lending Bill
Effective June 1, 2008 IL House Bill 4050 went into effect, this new bill enacts statewide predatory lending regulations.
- Mortgage Licensee must verify the borrower's "reasonable ability to repay"
- Establishes an Agency Relationship between the Mortgage Broker and Borrower
- Sets limitations on Pre-Payment penalties
- Material loan changes require timely notice, within 3 days of change or 24 hrs prior to closing
- Established penalties under the Consumer Fraud Act
- Cap placed on delinquency charges
- Copy of appraisal must be provided
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