Keeping consumers safe is the goal of a couple of new bills that are now law in Illinois.
Governor Pat Quinn signed two bills on Wednesday, one of which helps victims of predatory lending. The law will make it more clear to a borrower what fees are involved in the transaction, and hopefully that will make the borrower to in with their eyes wide open and understand the process that much more.
Dickerson and Nieman Realtors President Frank Wehrstein feels the law will give people a fair shot at getting a loan they can understand, without hidden strings attached. Riverside Community Bank's Kelly Eickstead explains "borrowers who may not have the best credit scores, may not have the best income levels to support mortgages" are the ones these types of loans may target.
Senate Bill 1692 makes it so mortgage lenders that are not federally regulated aren't ripping people off during their home buying process. Whether it's a first-time home owner or a family who can't necessarily afford the type of loan they're wanting.
"Anybody who is federally regulated would not necessarily be impacted by this law because we're already complying with all those requirements," Eickstead says.
The law requires state institutions to tell people how much the loan costs, and any fees associated with it. Borrowers also cannot be charged any pre-payment penalties. Wehrstein says some mortgage lenders try to hide lender fees from consumers to make a profit. "We try to introduce our clients to credible lenders in the first place," he says. "We work with good partners, whether it's the lender, the title company, the lawyers."
Senate Bill 1692 goes into effect January 1, 2013.
The other law that was signed prevents people who have gotten a loan, but can't pay it back right away, from unfairly being incarcerated.
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