Illinois Compiled Statutes
Chapter 815 - BUSINESS TRANSACTIONS
815 ILCS 120/ - Illinois Fairness in Lending Act.

(815 ILCS 120/1) (from Ch. 17, par. 851)
Sec. 1.

This Act shall be known and may be cited as the "Illinois Fairness
in Lending Act".

(Source: P.A. 81-1391.)
 
(815 ILCS 120/2) (from Ch. 17, par. 852)
Sec. 2.
As used in this Act:
(a) "Financial Institution" means any bank, credit union, insurance company,
mortgage banking company, savings bank, savings and loan
association, or other residential mortgage lender which operates
or has a place of business in this State.
(b) "Person" means any natural person.
(c) "Varying the terms of a loan" includes, but is not limited to the
following practices:
(d) "Equity stripping" means to assist a person in obtaining a loan secured
by the person's principal residence for the primary purpose of receiving fees
related to the financing when (i) the loan decreased the person's equity in the
principal residence and (ii) at the time the loan is made, the financial
institution does not reasonably believe that the person will be able to make
the scheduled payments to repay the loan. "Equity
stripping" does not include reverse mortgages as defined in Section 5a of the
Illinois Banking Act, Section 1-6a of the Illinois Savings and Loan Act of
1985, or
subsection (3) of Section 46 of the Illinois Credit Union Act.
(e) "Loan flipping" means to assist a person in refinancing a loan secured by
the person's principal residence for the primary purpose of receiving fees
related to the refinancing when (i) the refinancing of the loan results in no
tangible benefit to the person and (ii) at the time the loan is made, the
financial institution does not reasonably believe that the refinancing of the
loan will result in a tangible benefit to the person.
(f) "Principal residence" means a person's primary residence that is a
dwelling consisting of 4 or fewer family units or that is in a dwelling
consisting of condominium or cooperative units.

(Source: P.A. 93-561, eff. 1-1-04.)
 
(815 ILCS 120/3) (from Ch. 17, par. 853)
Sec. 3. No financial institution, in connection with or in contemplation
of any loan to any person, may:
(a) Deny or vary the terms of a loan on the basis that a specific parcel
of real estate offered as security is located in a specific geographical area.
(b) Deny or vary the terms of a loan without having considered all of
the regular and dependable income of each person who would be liable for
repayment of the loan.
(c) Deny or vary the terms of a loan on the sole basis of the childbearing
capacity of an applicant or an applicant's spouse.
(c-5) Deny or vary the terms of a loan on the basis of the borrower's race, gender, disability, or national origin.
(d) Utilize lending standards that have no economic basis and which are
discriminatory in effect.
(e) Engage in equity stripping or loan flipping.

(Source: P.A. 95-961, eff. 9-23-08.)
 
(815 ILCS 120/4) (from Ch. 17, par. 854)
Sec. 4.

Nothing contained in this Act shall preclude a financial institution
from considering sound underwriting practices in contemplation of any loan
to any person. Such practices shall include the following:
(a) The willingness and the financial ability of the borrowers to repay the loan.
(b) The market value of any real estate or other item of property proposed
as security for any loan.
(c) Diversification of the financial institution's investment portfolio.

(Source: P.A. 81-1391.)
 
(815 ILCS 120/5) (from Ch. 17, par. 855)
Sec. 5.

(a) Subject to the limitation imposed by subsection (b), any person
who has been aggrieved as a result of a violation of this Act may bring
an individual action in the circuit court of the county in which the
particular financial
institution involved is located or doing business.
Upon a finding that a financial institution has committed a violation of
this Act, the court may award actual damages, and may in its discretion
award court costs.
(b) If the same events or circumstances would constitute the basis for
an action under this Act or an action under any other Act, the aggrieved
person may elect between the remedies proposed by the two Acts but may not
bring actions, either administrative or judicial, under more than one of
the two Acts in relation to those same events or circumstances.
(c) An action to enjoin any person subject to this Act from engaging in
activity in violation of this Act may be maintained in the name of the people
of the State of Illinois by the Attorney General or by the
State's Attorney of the county in which the action is brought. This remedy
shall be in addition to other remedies provided for any violation of this
Act.

(Source: P.A. 93-561, eff. 1-1-04.)
 
(815 ILCS 120/6) (from Ch. 17, par. 856)
Sec. 6.

Where a financial institution repossesses a motor vehicle that was used as a
collateral and which is used primarily for the borrower's personal, family
or household purposes, the financial
institution shall
be subject to the requirements of and
shall transfer the
certificate of title pursuant to Section 3-114 of the Illinois Vehicle Code.

(Source: P.A. 90-343, eff. 8-8-97; 90-665, eff. 1-1-99.)

Structure Illinois Compiled Statutes