Anti-predatory-lending law may be hurting home sales in Chicago

Mortgage planner's analysis of MLS data shows 45% decline

A Chicago mortgage planner says home sales are down 45 percent in 10 ZIP codes where Illinois lawmakers now require mortgage brokers to refer borrowers with low credit scores for counseling.

Although September home sales also declined in surrounding ZIP codes, they did not fall as much, according to an analysis of MLS data by Chicago-based mortgage planner Dan Green of Mobium Mortgage.

The four-year Predatory Lending Database Pilot Program, commonly referred to as HB 4050 after the state legislation that created it, took effect Sept. 1.