Illinois Bill Requires Tenant Notification of Foreclosure Sale
Illinois passed a bill that requires purchasers of recently foreclosed homes to provide written notice to the property’s occupants of the change in ownership. The bill — HB 3863 — also requires distressed mortgagors to notify tenants renting a property if it goes into foreclosure. It requires the new property owner to get court approval before raising a tenant’s rent. The law takes effect in October. The governor signed HB 3863 at the end of July, on the same day of another bill's signing. The second law requires loan originators to obtain state licenses in compliance with the federal Secure and Fair Enforcement (SAFE) for Mortgage Licensing Act. The law sets requirements for originator education, exemptions, fees, renewals, bonds and notifications. According to state regulators, both individuals working as originators and loan origination companies are required to register and obtain state licenses. The state has set a March 2010 deadline for individuals to establish an online profile with the Nationwide Mortgage Licensing System (NMLS). The state license test will be available at that time, and once originators have completed the requirements, they will be issued licenses in December 2010 to be effective during the 2011 calendar year. Companies are also required to register with the NMLS and meet requirements, including ensuring employees are registered and have bond insurance, to comply with the state law. Write to Austin Kilgore.