Industry News

Illinois officials issue rule limiting predatory lending law

Industry professionals confused about law's scope

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An Illinois law taking effect Jan. 1 to limit predatory lending has spurred concerns that new home loans could be halted in Chicago's Cook County after the new year due to confusion regarding the scope of the rules, the Chicago Tribune reported.But in an effort to alleviate widespread concerns in the lending industry and avoid the potential nightmare of canceled closings--or worse, no new mortgages offered in Cook County after Jan. 1--the state department implementing the law said it would file an emergency rule on Thursday, media reports said.That rule will "eliminate any ambiguity in the industry and maintain a stream of mortgage funding for Cook County," Susan Hofer, spokeswoman for the Illinois Department of Financial and Professional Regulation, told the Tribune.The legislation, House Bill 4050, is aimed at lowering the home foreclosure rate in Cook County, mainly on Chicago's Southwest Side, media accounts said.The law authorizes a four-year pilot program to create a database to ...