Legislation

President Obama’s proposed Consumer Financial Protection Agency would have the power to prohibit abusive, discriminatory lending across the country—which would help to avoid another foreclosure crisis. The CFPA would be able to extend consumer protections to any lender, including currently-unregulated mortgage lenders, who made most of the risky loans that caused the foreclosure crisis. The CFPA would promote transparency and real disclosure—not endless pages of incomprehensible fine print.

The Distressed Condominium Property Act gives municipalities more resources to deal with vacant condominium property and, ultimately, mitigate the harmful effects of foreclosed properties on communities. Municipalities may file a petition in the circuit court and the court may appoint a receiver for the property, who can then maintain and sell the property. 

On May 20, 2009, the Helping Families Save Their Homes Act of 2009, P.L. 111-22, was signed into law. Title VII of the law includes protections for renters who are facing eviction because their buildings are in foreclosure. The law requires that the lender who takes over the building must provide at least 90 days notice to tenants before eviction. Additionally, renters must be allowed to live out their leases, unless there is no written lease present.
 

On April 5, 2009, Governor Pat Quinn signed into law the Homeowner Protection Act (SB-2513). The law gives Illinois homeowners who have fallen more than 30 days behind on their mortgage payments more time to work with their lender and/or servicer to develop a plan that will allow them to remain in their homes. Lenders and loan servicers are required to notify homeowners/borrowers when a loan is past due and provide an opportunity for the homeowner to seek housing counseling.