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90_HR0252
LRB9007392JSgc
1 HOUSE RESOLUTION
2 WHEREAS, The Illinois House of Representatives recognizes
3 the vital role now played by mortgage brokers in the
4 residential mortgage finance delivery system, whereby
5 Illinois mortgage brokers now originate an estimated 54% of
6 all home loans in this State; and
7 WHEREAS, 700 mortgage brokers in Illinois are licensed
8 and regulated by the State of Illinois through the Office of
9 Banks and Real Estate; and
10 WHEREAS, Most mortgage brokers are small businesses,
11 employing on average three or fewer persons, making them
12 highly vulnerable to overly burdensome governmental mandates;
13 and
14 WHEREAS, The prospect of federal price controls and
15 overly restrictive borrower contracts could very quickly
16 endanger the viability of thousands of mortgage brokerages;
17 and
18 WHEREAS, The mortgage broker industry has been actively
19 engaged for the past 6 months in good faith in an ongoing and
20 far-reaching dialogue with the U.S. Congress, related federal
21 agencies, consumer interests, and other industry groups to
22 achieve a balanced and fair proposed reform of this nation's
23 mortgage lending laws; and
24 WHEREAS, The promulgation of the U.S. Department of
25 Housing and Urban Development's proposed rule in regards to
26 price controls in its present form would jeopardize the
27 viability of the mortgage brokerage industry and its good
28 faith reform efforts; therefore, be it
29 RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
30 NINETIETH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we
31 urge U.S. Housing and Urban Development Secretary Andrew
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1 Cuomo to temporarily delay the issuance of a final mortgage
2 broker compensation rule and allow the reform process to
3 continue to its expected conclusion in the Spring of 1998;
4 and be it further
5 RESOLVED, That suitable copies of this resolution be
6 delivered to the U.S. Secretary of Housing and Urban
7 Development and to each member of the Illinois congressional
8 delegation.