Illinois Amends Law on Shared Appreciation Agreements

Illinois has amended its Residential Mortgage License Act, effective January 1, 2025, to define shared appreciation agreements as mortgage loans under the RMLA, require borrower counseling in connection with shared appreciation agreements, and provide for the adoption of rules implementing these changes.

The law, as amended, will allow the Secretary of the Illinois Department of Financial and Professional Regulation to implement these changes by promulgating rules, including but not limited to: (i) defining statutory terms; (ii) relating to disclosures to help consumers understand the cost, duration, and fees of these agreements, as well as potential alternatives; (iii) on the limits on the interest or other fees that may be charged to a borrower; and (iv) relating to the required counseling.