Predatory Lending Law Changes in 2005

In the 2005 legislative season, the focus of state lawmakers largely turned from creating entirely new threshold-based predatory lending laws to revising and clarifying existing threshold-based laws. This article summarizes newly enacted threshold based predatory lending laws, as well as changes to existing predatory lending laws and regulations. Illinois House Bill 4050, effective Jan 1, 2006, created a predatory lending pilot program within Cook County that will require brokers, originators, credit counselors, title insurance companies, and closing agents to submit information to a predatory lending database maintained and administered by the Department of Financial and Professional Regulation. Indiana enacted House Bill 1179, amending provisions of the Indiana Home Loan Practices Act effective Jul 1, 2005. In 2004, Massachusetts enacted the Predatory Home Loan Practices Act and added predatory lending provisions to other existing statutory schemes. Certainly, states are directing attention to other types of legislation intended to curb predatory lending.