New Illinois Mortgage Law Aimed to Protect Consumers
A couple of weeks ago, the governor signed some new laws into effect affecting mortgage brokers. The Residential Mortgage License Act of 1987 was amended with the intention of protecting consumers from fraudulent lending practices. The gist of the amendments is this:
1) Mortgage companies will pay higher licensing fees. Previously, the annual licensing fee was $2,042. Now it will be $2,700.
2) Applicants may have to undergo more extensive background checks.
3) The penalties for mortgage fraud have tripled, from $25,000 to $75,000.
4) There is some added protection in place for mortgage licensee whistleblowers who report fraudulent activity.