Foreclosure moratorium legislation fails in Illinois
May 28, 2020 –The Illinois Credit Union League successfully fended off legislation that would have imposed burdensome requirements on credit unions and other mortgage lenders. HB 5574 included harmful provisions such as the cancelation of debt during a moratorium period and mandatory loss mitigation which could include forgiveness of the forgone payments.
In response to League advocacy, the objectional language was removed from HB 5574 and the measure was ultimately defeated. The legislature did address the issue of foreclosures and evictions by including increased funding for rent and mortgage payment assistance in the state’s budget bill.