CHICAGO – July 31, 2009. Governor Pat Quinn signed a mortgage fraud protection bill that provides greater consumer safeguards to those seeking home loans. The new law provides increased oversight of residential mortgage companies and mortgage loan originators by the Illinois Department of Financial and Professional Regulation (IDFPR).
“This legislation cracks down on predatory home lending practices and strengthens the rights of those applying for a mortgage,” said Governor Quinn. “We are sending a strong signal to scam artists and predatory lenders: You can’t do business in Illinois.”
HB4011 enrolls the State in the Nationwide Mortgage Licensing System and Registry (NMLSR), which monitors those applying for a mortgage license, provides enhanced reporting and enforcement activities, administers new nationwide education and testing standards and sets new financial responsibility criteria and standards for the industry.
“The FBI recently ranked Illinois as #2 in the U.S. in the crime of mortgage fraud,” said Brent E. Adams, Acting Secretary of the Illinois Department of Financial and Professional Regulation (IDFPR) and chair of the State’s Mortgage Fraud Task Force. “Governor Quinn’s action today is the first step towards lowering our ranking and preventing this type of illegal activity.”
Governor Quinn also signed two bills to protect the rights of tenants from potentially fraudulent lenders. HB3863, sponsored by Rep. William Burns (D-Chicago) and Sen. Jacqueline Collins (D-Chicago), requires lenders to provide notification once they acquire a property and before their tenants are required to move. In the case of consent foreclosures issued by the court, HB153 ensures greater transparency by requiring the grantee’s or mortgagee’s name be stated on the title of foreclosure.
The bill signing ceremony took place at the home of Mrs. Lessie Towns, a 75-year-old mortgage fraud victim, who faced eviction after living in her home for more than 40 years.
Governor Quinn was joined by Acting Secretary Brent Adams, Senator Collins (D-Chicago), Rep. Marlow H. Colvin (D-Chicago); Rep. Monique D. Davis (D-Chicago); and Mrs. Towns, mortgage fraud victim.