The Illinois Legislature's recent attempt to curb predatory lending practices, HB4050, was suspended after only five months.

On 1/19/07 the Secretary of the Illinois Department of Financial and Professional Regulation issued a directive canceling the Predatory Lending Database Pilot Program.  The statement indicated "the Secretary received and reviewed information that suggests that the prior designation may be detrimental to the pilot program's purpose, namely to curb predatory lending practices in areas with high rates of foreclosure on residential home mortgages".   

The Pilot Program required various Borrowers to submit to State regulated financial counseling for properties located in 10 designated zip codes in Chicago.  The counseling requirements caused great uncertainty for prospective Buyers/Sellers/Borrowers and real estate professionals including agents, lenders and title companies alike.

While the issue of predatory lending is very serious this legislative attempt was ill fated and may have caused more harm than benefit.

Hopefully, further legislative attempts will work to enforce existing regulations instead of impeding on an individual's right to privacy.