815 ILCS 120

in effect

815 ILCS 120/1

(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: (1) Requiring a greater than average down payment than is usual for the particular type of a loan involved. (2) Requiring a shorter period of amortization than is usual for the particular type of loan involved. (3) Charging a higher interest rate than is usual for the particular type of loan involved. (4) An underappraisal of real estate or other item of property offered as security. (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

(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

(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

(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

(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.)

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.ilga.gov/legislation/ilcs/ilcs.aspFetched: 10/17/2026