State law to regulate mortgage lending
takes effect July 1      
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[JUNE 5, 2004]  SPRINGFIELD -- Illinois home buyers will have greater protection in obtaining mortgage loans thanks to legislation signed by Gov. Blagojevich that requires loan originators operating in the state to be registered with the Illinois Office of Banks and Real Estate.

The High Risk Home Loan Act becomes effective on July 1. "This act contains the required components to allow OBRE to accomplish its dual mission of protecting the interest of the citizens of the state and the image of the mortgage industry. The implementation of the act will bring discipline to the industry through licensing, education and enforcement and will help OBRE in its efforts to eradicate predatory lending practices in Illinois," said D. Lorenzo Padrón, commissioner.

Effective June 4, loan originators must access www.obre.state.il.us to obtain a provisional registration, which will last through Dec. 31. By Jan. 1 loan originators will be required to pass a written test and will be subjected to a criminal and a credit background check. Applicants currently employed by an Illinois residential mortgage licensee for two of the past three years will be allowed until June 30, 2005, to take the test. In addition, loan originators are required to meet annual continuing education requirements.

 

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Loan originators will also be required to carry a pocket card issued by the Office of Banks and Real Estate to provide proper identification to consumers and law enforcement officials. The office will create a website roster of all registered loan originators authorized to do business in Illinois.

For additional information, please call the Mortgage Banking Licensing Division at (312) 793-1409.

[News release from the
Illinois Office of Banks and Real Estate]

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