HB 1061

Abstract

Amends the Residential Mortgage License Act of 1987. Provides that: the soliciting and sale of mortgages by a home builder shall be conducted only by persons who have been licensed under the Act and shall be subject to the Act; a home builder transacting mortgage business in this State shall be licensed under the Act and shall be subject to the Act; and a licensee may not pay, directly or indirectly, any commission, service fee, brokerage fee, or other valuable consideration to any person for services as a home builder. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a home builder may not: (1) offer any incentives to a consumer for the purpose of influencing his or her selection of a mortgage lender; (2) offer his or her products or services on the condition or requirement that the consumer obtain a mortgage from a particular mortgage lender; (3) require a consumer to negotiate or purchase a mortgage from a particular mortgage lender as a condition to purchasing the home, or renewing any contract between the home builder and the consumer; (4) require a consumer to pay a separate charge or fee if he or she does not select a mortgage lender suggested by the home builder; or (5) use any advertisement that would mislead or suggest that the consumer is required to use a particular mortgage lender. Requires a home builder to clearly and conspicuously disclose, on any written advertisement or promotional or informational material, the nature of any relationship he or she has with a mortgage lender.