Illinois Compiled Statutes 765 ILCS 945/25 – Reverse mortgages; restriction on cross-selling
Current as of: 2024 | Check for updates
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No lender may:
(1) require the purchase of an annuity,
(1) require the purchase of an annuity,
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investment, life insurance, or long-term care insurance product as a condition of obtaining a reverse mortgage loan; however, nothing in this paragraph shall preclude a lender from requiring the borrower to purchase property and casualty insurance, title insurance, flood insurance, or other products meant to insure or protect the value of the home or the lender’s lien and that are customary for residential mortgage or reverse mortgage transactions on the borrower’s residence securing the reverse mortgage loan;
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(2) enter into any agreement to make a reverse
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mortgage loan that obligates the borrower to purchase an annuity, investment, life insurance, or long-term care insurance product;
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(3) offer an annuity to the borrower before the
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closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement;
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(4) refer the borrower to anyone for the purchase of
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an annuity before the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement; or
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(5) provide marketing information or annuity sales
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leads to anyone regarding the prospective borrower or borrower before the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage loan.
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Terms Used In Illinois Compiled Statutes 765 ILCS 945/25
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC