Alert August 07, 2012

Illinois Amends High Risk Home Loan Act

Illinois amended its High Risk Home Loan Act to conform the definition of “high risk home loan” to the Dodd-Frank Act’s definition and impose limits on the fees and penalties for high risk mortgage loans and require enhanced disclosures.  The amended law prohibits prepayment penalties, and imposes new limits on late fees, the structure of balloon payments, and penalties.  The law is effective January 1, 2013.