State Legislation Updates

Here are updates from the IAR Government Affairs team.

--Senate Bill 1674 contains a predatory lending initiative of Attorney General Lisa Madigan (formerly contained in House Bill 1478) that will require mortgage brokers to follow certain standards in the making of mortgage loans and provides that it is a violation of the Consumer Fraud Act for mortgage brokers alone (not other bankers) to make certain kinds of loans such as stated income and ARMs unless the borrower meets extraordinary standards. This provision goes way beyond the federal guideline it is designed to emulate which only applies to sub-prime borrowers. The IAR is concerned that this proposal will reduce the availability and affordability of mortgage loans in Illinois. The bill also seeks to codify into law provisions similar to rules recently proposed by the IDFPR to reestablish the Predatory Lending Database Program (a.k.a. 4050). The IAR is OPPOSED to placing pending rules into statute as it reduces the ability of the Department to deal with problems as they arise and forestalls incorporating the suggestions made by numerous parties in comments on the rules. The IAR is also concerned that this legislation makes the Program permanent rather than a pilot program.

Finally, the IAR questions restarting this program on a Cook County wide basis when issues such as the supply of qualified counselors and the security of borrowers’ personal data have not been addressed.

--Senate Bill 572 as amended by House Amendment #2 includes language that grants the Regional Transportation Authority (RTA) the authority to impose a real estate transfer tax of $3 per $1,000 within the city of Chicago WITHOUT VOTER APPROVAL. The IAR STRONGLY OPPOSES this proposal that would give the statutory authority to levy a real estate transfer tax to a special taxing district governed by an APPOINTED Board. Without an elected and responsive entity a taxpayer has no way to voice their objection to this tax- clearly this is taxation without representation! We also object to the fact that this is ANOTHER LAYER OF TAXING authority on property owners in Chicago where a very high home rule municipal real estate transfer tax is already in place ($7.50 per $1,000 paid by the buyer) in addition to the State and county real estate transfer tax (combined $1.50 per $1,000 on the seller.

You can get information on these bills by clicking on the direct link to the Action Center which has both issues posted: http://www.votervoice.net/Core.aspx?AID=251&