ILLINOIS MORTGAGE LOAN ORIGINATORS: Do You Engage in Loan Modification Activities?

Just a reminder that the state of Illinois has amended the Residential Mortgage License Act to impose a registration requirement on all state-licensed Mortgage Loan Originators who also engage in loan modifications.  If you are engaged in any loan modification activities on properties located within Illinois, you must register with the state by completing a one-question questionnaire on the IDFPR’s website.  The URL for the questionnaire is  http://www.obre.state.il.us/MLOSurvey/.

If you perform loan modification activities, you MUST register online by the deadline of December 22, 2012.  There are no additional fees or requirements above and beyond registration.

**Also, Illinois now considers loan modifications a licensable activity.  In order to perform loan modifications on properties located in the state of Illinois, you must hold a valid Mortgage Loan Originator license or be otherwise exempt from licensure. **

The Residential Mortgage License Act defines loan modification as “for compensation or gain, either directly or indirectly offering or negotiating on behalf of a borrower or homeowner to adjust the terms of a residential mortgage loan in a manner not provided for in the original or previously modified mortgage loan.”  (Amended via HB 4521, effective August 3, 2012)

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