HB2094 EnrolledLRB103 27736 SPS 54113 b


  
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 the 
5need to protect homeowners from unscrupulous actors seeking to 
6take advantage of homeowners by soliciting mortgage 
7refinancing through deceptive practices is warranted, 
8particularly following the unethical practices that led to the 
92008 subprime mortgage crisis. These protections will 
10especially serve new homeowners not familiar with the process 
11and elderly homeowners who may be more susceptible to 
12deceptive mortgage marketing materials. In addition, they will 
13serve to protect the homeowners' actual mortgage companies 
14that have no affiliation with the solicitors and have had no 
15part in helping the solicitors obtain the homeowners' mortgage 
16information.
 
17    Section 5. The Consumer Fraud and Deceptive Business 
18Practices Act is amended  by changing Section 2AAA as follows:
 
19    (815 ILCS 505/2AAA)
20    Sec. 2AAA. Mortgage marketing materials.
21    (a) No person may send marketing materials to a consumer 
22indicating that the person is connected to the consumer's 
 
 
HB2094 Enrolled- 2 -LRB103 27736 SPS 54113 b

1mortgage company, indicating that there is a problem with the 
2consumer's mortgage, or stating that the marketing materials 
3contain information concerning the consumer's mortgage, unless 
4that person sending the marketing materials is actually 
5employed by the consumer's mortgage company or an affiliate of 
6the consumer's mortgage company.
7    (a-5)    Any marketing materials from a mortgage company not 
8connected to the consumer's mortgage company must comply with 
9the following requirements:
10        (1) no language may be used to state or imply that any 
11    response by a consumer who is not an existing customer is 
12    required, imminently or otherwise, 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, appear on the envelope itself, or appear in an 
6    email subject line; 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.)