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205 ILCS 635/1-2
(205 ILCS 635/1-2) (from Ch. 17, par. 2321-2)
Sec. 1-2. Purpose of Act and Policy Statement. (a) The origination,
funding, purchasing and brokering of residential mortgage loans and the
type of entities involved in residential mortgage lending have undergone
significant changes in recent years, due in part to developments in the
general economy, specifically interest rate volatility, the sophistication
of the national secondary market for mortgage loans and the market for
mortgage backed securities. The recent trend toward deregulation in the
financial services industry has accelerated the evolution of residential
mortgage lending, dramatically increasing the types of mortgage loans
offered and the manner in which they are advertised and marketed to
consumers. Depository institutions, traditionally the major source of
residential mortgage financing for individuals, now compete for capital
and customers with mortgage bankers and other financial service
organizations. Residential mortgage lenders of every type have
increasingly relied on nonfinancial intermediaries, such as mortgage
brokers, to find customers. These developments have raised questions as to
whether all entities engaging in this banking function operate under
appropriate regulatory scrutiny and as to whether all residential mortgage
lenders are conducting their business in the best interests of Illinois
homeowners and potential homeowners.
(b) The activities of lenders and their offering of financing for
residential real property have a direct and immediate impact upon the
housing industry, the neighborhoods and communities of this State, its
homeowners and potential homeowners. The General Assembly finds that it is
essential for the protection of the citizens of this State and the stability
of the State's economy that reasonable standards governing the business
practices of residential mortgage lenders and their agents be imposed. The
General Assembly further finds that the obligations of lenders and their agents
to consumers in connection with making, soliciting, processing, placing or
negotiating of residential mortgage loans are such as to warrant the
uniform regulation of the residential mortgage lending process, including
the application, solicitation, making and servicing of residential mortgage
loans. The purpose of this Act is to protect Illinois consumers seeking
residential mortgage loans and to ensure that the residential mortgage
lending industry is operating fairly, honestly and efficiently, free from
deceptive and anti-competitive practices. The purpose of this Act is to
regulate residential mortgage lending to benefit our citizens by ensuring
availability of residential mortgage funding, to benefit responsible
providers of residential mortgage loans and services, and to avoid
requirements inconsistent with legitimate and responsible business
practices in the residential mortgage lending industry.
(c) The General Assembly finds that the provisions of this amendatory Act of the 96th General Assembly that set forth the authority and framework for State participation in a Nationwide Mortgage Licensing System and Registry are consistent with the purposes of this Section and for the purpose of complying with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008. (Source: P.A. 96-112, eff. 7-31-09.)
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