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Public Act 093-0863
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| HB5197 Enrolled |
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 |
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 |
faith dealings, fraudulent or deceptive practices. |
(a) At the time a reverse mortgage
loan is made or |
brokered, a licensee must provide to the mortgagor a separate
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document that informs the mortgagor that by obtaining the |
reverse mortgage
the mortgagor's eligibility to obtain a tax |
deferral under the Senior Citizens
Real Estate Tax Deferral Act |
may be adversely affected. The mortgagor must
sign the |
disclosure document as part of the reverse mortgage |
transaction. |
(b) A licensee must act in good faith in all relations with |
a borrower, including but not limited to, transferring, dealing |
in, offering, or making a reverse mortgage loan. No licensee |
shall employ fraudulent or deceptive acts or practices in the |
making of a reverse mortgage loan, including deceptive |
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 |
becoming law.
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