Changes to Illinois Mortgage Advertising Rules – Effective Immediately

Tunnel of media, images, photographs. Tv, multimedia broadcast.

Gov. Bruce Rauner has signed into law the bill known as SB 2615, which amends the Residential Mortgage License Act of 1987 and makes minor changes to advertising requirements. The bill, which passed both houses of the Illinois Legislature unanimously, removes the need for mortgage companies licensed by the IDFPR to use the phrase “Illinois Residential Mortgage Licensee” in all advertisements.

As of August 10, 2018, mortgage advertisements in Illinois “must reference the Nationwide Multistate Licensing System’s Consumer Access Website” (www.nmlsconsumeraccess.org). In addition, all mortgage advertisements must now include the company’s NMLS unique identifier.

Now is a good time for companies to do a thorough review of their advertising policies and procedures to ensure continued compliance with state and federal advertising requirements. As always, MLOs are reminded that social media pages and posts promoting their employment are considered advertisements and must be compliant with all relevant laws. (We’ll discuss this further in our comprehensive CE class this year.)

Thanks to the folks at the Greater Midwest Lenders Association (www.GMLAonline.org) for spearheading this legislative effort to standardize Illinois advertising law with those found in many other states.

Peter


Real Estate Institute offers top-rated Mortgage Loan Originator Continuing Education and Pre-License courses in all three formats: Classroom, Live Webinar and Online, Self-Study. These courses were designed BY loan originators FOR loan originators covering topics you need to know to navigate today’s ever-changing lending landscape.

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)