Governor Pat Quinn of Illinois signed a bill into law Friday that raises fees for mortgage company licenses and fines for those who commit mortgage fraud.
Rep. Barbara Flynn Currie (D-Chicago) and Sen. Jacqueline Y. Collins (D-Chicago)sponsored the new law, known as House Bill 4521.
Through the bill, lenders will have to pay $657 more each year for their licenses. Also, the maximum fine for a mortgage fraud violation tripled to $75,000 from $25,000. The bill also clarifies that those performing loan modification or short sale facilitation must be licensed to offer those services and can't force borrowers to pay up-front fees for modifications.
""Exercising vigilant oversight in the areas of loan modifications and short sales will be particularly beneficial as we work to slow the rate of foreclosure and protect distressed homeowners from financial exploitation,"" said Sen. Collins in a statement.