In 2007, the State of Illinois found itself dealing with more and more predatory mortgage targeting. Something had to be done.
Members of the Illinois legislature banded together to implement Illinois House Bill 1167. This first-of-its kind mortgage bill targeted certain lending activities and made it mandatory for every loan offered to consumers in certain zip codes to be entered into a real-time database. At the time, the legislation was intended to establish a pilot program to determine if the mortgage lending industry could utilise a platform similar to technology that was already in place to regulate short-term “payday” lending.
Following the success of the pilot program, House Bill 4050 made the program permanent. Encompassing four counties which make up more than 65 percent of the Illinois mortgage market, this new bill made it mandatory for licensed mortgage brokers or originators to submit information for every mortgage they generate to the Anti-Predatory Mortgage Database (www.ILAPLD.com) prior to closing on the property.