Introduced by Sen. Brian Weinstein, (D-Eastside Suburbs) (D) on January 16, 2008
Provides statutory requirements that expand the fiduciary duties of mortgage brokers to borrowers, include: acting in the borrower's best interest, putting the borrower's interests above all others, refusing to accept undisclosed compensation for an expense paid by the borrower, following the borrower's instructions, disclosure of all material facts that could impact the borrower's interests, using reasonable care, and providing an accounting to the borrower for all money and property received from the borrower. Official Text and Analysis.
Referred to the Senate Consumer Protection & Housing Committee on January 16, 2008
Referred to the Senate Rules Committee on January 28, 2008
Amendment offered in the Senate on February 6, 2008
To strikes fiduciary relationship language and replaces it with a duty of reasonable care including, but not limited to, a prohibition on engaging in any deceptive or fraudulent sales practices and a duty to carry out all lawful instructions provided by a borrower.
The amendment failed by voice vote in the Senate on February 6, 2008
Referred to the House Insurance, Financial Services, and Consumer Protection Committee on February 7, 2008
Amendment offered in the House on February 28, 2008
To remove language regarding other state law requirements for fiduciaries. Language prohibiting a broker from compromising a borrower's interest is also removed. Language requiring the disclosure of all interests to the borrower is added. A mortgage broker is not required to offer or obtain access to loans or services that are not available to the mortgage broker at the time of the transaction. The Director of the Department of Financial Institutions must adopt rules to implement the section.
The amendment passed by voice vote in the House on March 4, 2008
Referred to the House Rules Committee on February 29, 2008