Illinois General Assembly - Full Text of HB5416
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Full Text of HB5416  102nd General Assembly




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1    AN ACT concerning business.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Findings. The General Assembly finds that given
5the recent low interest rates for home mortgages leading to an
6increase in home purchases and mortgage refinancing, the need
7to protect homeowners from unscrupulous actors seeking to take
8advantage of this increase by soliciting mortgage refinancing
9through deceptive practices is warranted, especially following
10the unethical practices that led to the 2008 subprime mortgage
11crisis. These protections will especially serve new homeowners
12not familiar with the process and elderly homeowners who may
13be more susceptible to deceptive mortgage marketing materials.
14In addition, they will serve to protect the homeowners' actual
15mortgage companies that have no affiliation with the
16solicitors and have had no part in helping the solicitors
17obtain the homeowners' mortgage information.
18    Section 5. The Consumer Fraud and Deceptive Business
19Practices Act is amended by changing Section 2AAA as follows:
20    (815 ILCS 505/2AAA)
21    Sec. 2AAA. Mortgage marketing materials.
22    (a) No person may send marketing materials to a consumer



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1indicating that the person is connected to the consumer's
2mortgage company, indicating that there is a problem with the
3consumer's mortgage, or stating that the marketing materials
4contain information concerning the consumer's mortgage, unless
5that person sending the marketing materials is actually
6employed by the consumer's mortgage company or an affiliate of
7the consumer's mortgage company.
8    (a-5) Any marketing materials from a mortgage company not
9connected to the consumer's mortgage company must comply with
10the following requirements:
11        (1) no language may be used to state or imply that any
12    response is necessary or imminent, including, but not
13    limited to, the use of the terms "urgent", "action
14    required", "materials inspected", "time sensitive", or
15    "important account information enclosed";
16        (2) the name of the solicitor's mortgage company must
17    be prominently stated:
18            (A) in the body of the text;
19            (B) at the head of the letter or message in a font
20        bigger than the body of the text; and
21            (C) on any envelope;
22        (3) the name of the consumer's mortgage company may
23    not be used to state or insinuate in any way that the
24    marketing material is from the consumer's mortgage company
25    rather than the solicitor's mortgage company, and can only
26    be used in the body of the text and when accompanied by



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1    clear language explaining that the solicitation is not
2    from or affiliated with the consumer's mortgage company,
3    and is merely a solicitation. The name of the consumer's
4    mortgage company shall not be visible through an envelope
5    window, used in an email subject line, or appear on the
6    envelope itself; and
7        (4) the text must clearly state if the consumer's
8    mortgage company had no part in helping the solicitor
9    obtain the homeowner's mortgage information.
10    (b) Any person who violates this Section commits an
11unlawful practice within the meaning of this Act.
12(Source: P.A. 95-508, eff. 1-1-08; 95-876, eff. 8-21-08;
1396-328, eff. 8-11-09.)