Ryan Signs Legislation to Make Purchasing New Homes Easier

CHICAGO -- Gov. George H. Ryan today signed House Bill 2439, authorizing the State Treasurer to accept a reduced interest rate on state money deposited to a financial institution in exchange for the institution's agreement to grant a home loan to Illinois citizens who would otherwise not be eligible, and their guarantee to not foreclose on a home in situations where a homeowner has been temporarily laid off or is disabled.

"Anything that can help homeowners get mortgages at market rates is a defeat for predatory lenders," Gov. Ryan said. "This bill holds out the hope of helping some families access reasonably priced mortgages, and not be forced into paying exorbitant interest rates just to purchase a home."

Effective immediately, funds deposited in financial institutions by the State Treasurer's office may be used to secure up to 10 percent of home loans in certain circumstances.

"I am very thankful to Governor Ryan for signing HB 2439," Treasurer Topinka said. "This new law will help so many families achieve the American dream of home ownership without the nightmares caused by predatory lenders."

HB 2439 was sponsored by Representatives Daniel Burke, D-Chicago; William Delgado, D-Chicago; Jeffrey Schoenberg, D-Evanston; Charles Morrow, D-Chicago; Lou Jones, D-Chicago; and Senator David Luechtefeld, R-Okawville.