On August 13, the Illinois governor signed SB 1561, which amends the Illinois Human Rights Act to include provisions regarding third-party loan modification service providers. According to the bill, it is a civil rights violation for a third-party loan modification service provider because of unlawful discrimination, familial status, or an arrest record, to (i) refuse to engage in loan modification services or to discriminate in making such services available; or (ii) alter the terms, conditions, or privileges of such services. The bill also clarifies that a third-party loan modification service provider is a person or entity, licensed or unlicensed, that “provides assistance or services to a loan borrower to obtain a modification to a term of an existing real estate loan or to obtain foreclosure relief,” but does not include lenders, brokers or appraisers of mortgage loans, or the servicers, subsidiaries, affiliates, or agents of the lender. Among other things, the bill provides that, in relation to real estate transactions, the failure of the Department to notify a complainant or respondent in writing for not completing an investigation on the allegations set forth in a charge within 100 days shall not deprive the Department of jurisdiction over the charge. This bill is effective January 1, 2022.
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