Rep. Michael K. Smith
Filed: 3/23/2004
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1 | AMENDMENT TO HOUSE BILL 5197
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2 | AMENDMENT NO. ______. Amend House Bill 5197 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Residential Mortgage License Act of 1987 is | ||||||
5 | amended by changing Section 5-5 as follows:
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6 | (205 ILCS 635/5-5)
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7 | Sec. 5-5. Reverse mortgages
mortgage ; disclosure ; good | ||||||
8 | faith dealings, fraudulent or deceptive practices . | ||||||
9 | (a) At the time a reverse mortgage
loan is made or | ||||||
10 | brokered, a licensee must provide to the mortgagor a separate
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11 | document that informs the mortgagor that by obtaining the | ||||||
12 | reverse mortgage
the mortgagor's eligibility to obtain a tax | ||||||
13 | deferral under the Senior Citizens
Real Estate Tax Deferral Act | ||||||
14 | may be adversely affected. The mortgagor must
sign the | ||||||
15 | disclosure document as part of the reverse mortgage | ||||||
16 | transaction. | ||||||
17 | (b) A licensee must act in good faith in all relations with | ||||||
18 | a borrower, including but not limited to, transferring, dealing | ||||||
19 | in, offering, or making a reverse mortgage loan. No licensee | ||||||
20 | shall employ fraudulent or deceptive acts or practices in the | ||||||
21 | making of a reverse mortgage loan, including deceptive | ||||||
22 | marketing and sales efforts.
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23 | (Source: P.A. 92-577, eff. 6-26-02.)
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1 | Section 99. Effective date. This Act takes effect upon | ||||||
2 | becoming law.".
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