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Public Act 093-0863


 

Public Act 0863 93RD GENERAL ASSEMBLY

 


 
Public Act 093-0863
 
HB5197 Enrolled LRB093 15959 SAS 41582 b

    AN ACT concerning reverse mortgage loans.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Residential Mortgage License Act of 1987 is
amended by changing Section 5-5 as follows:
 
    (205 ILCS 635/5-5)
    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
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.
(Source: P.A. 92-577, eff. 6-26-02.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/5/2004