Home/Illinois/Statutes/Topic: REGULATION/Ch. 205: FINANCIAL REGULATION/Act 205 ILCS 635/: Residential Mortgage License Act of 1987./Art.: Article V - Lending Procedures/§ 5-16
Illinois Statutes

§ 5-16 — Prohibition on encouraging default

Illinois § 5-16
JurisdictionIllinois
TopicREGULATION
Ch. 205FINANCIAL REGULATION
Act 205 ILCS 635/Residential Mortgage License Act of 1987.
Art.Article V - Lending Procedures

This text of Illinois § 5-16 (Prohibition on encouraging default) is published on Counsel Stack Legal Research, covering Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
205 Ill. Comp. Stat. 5-16 (2026).

Text

A licensee may not recommend or encourage default or the failure to make timely payments on an existing residential mortgage loan or other debt prior to and in connection with the closing or planned closing of a residential mortgage loan that refinances all or any portion of the existing loan or debt.

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Legislative History

(Source: P.A. 95-691, eff. 6-1-08 .)

Nearby Sections

15
§ 5
Partial invalidity
§ 5-1
Scope; number of pawnbroker licenses
§ 5-10
Application process; investigation; fees
§ 5-10.5
Disclosure of records
§ 5-11
§ 5-11
§ 5-12
Disclosure of refinancing options
§ 5-12.5
§ 5-12.5
§ 5-14
Prohibition on equity stripping and loan flipping
§ 5-15
Application form
§ 5-16
Prohibition on encouraging default
§ 5-17
Severability
§ 5-2
Examinations of corporate fiduciaries
§ 5-20
Pawnbroker license application and issuance
§ 5-25
Prohibited acts and practices for licensees
§ 5-3
Violations; orders
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Bluebook (online)
Illinois § 5-16, Counsel Stack Legal Research, https://law.counselstack.com/statute/il/205/5-16.