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HB5197 Engrossed |
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LRB093 15959 SAS 41582 b |
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| AN ACT concerning reverse mortgage loans.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Residential Mortgage License Act of 1987 is |
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| amended by changing Section 5-5 as follows:
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| (205 ILCS 635/5-5)
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| Sec. 5-5. Reverse mortgages
mortgage; disclosure; good |
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| faith dealings, fraudulent or deceptive practices. |
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| (a) At the time a reverse mortgage
loan is made or |
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| brokered, a licensee must provide to the mortgagor a separate
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| document that informs the mortgagor that by obtaining the |
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| reverse mortgage
the mortgagor's eligibility to obtain a tax |
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| deferral under the Senior Citizens
Real Estate Tax Deferral Act |
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| may be adversely affected. The mortgagor must
sign the |
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| disclosure document as part of the reverse mortgage |
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| transaction. |
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| (b) A licensee must act in good faith in all relations with |
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| a borrower, including but not limited to, transferring, dealing |
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| in, offering, or making a reverse mortgage loan. No licensee |
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| shall employ fraudulent or deceptive acts or practices in the |
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| making of a reverse mortgage loan, including deceptive |
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| marketing and sales efforts.
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| (Source: P.A. 92-577, eff. 6-26-02.)
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| Section 99. Effective date. This Act takes effect upon |
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| becoming law.
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