Monday, August 18, 2008

IL Predatory Lending Legislation Passed

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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