205 ILCS 635/1-2
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article I - General Provisions

 (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.)