The Illinois Department of Financial and Professional Regulation has delayed until early this summer the effective date of its predatory lending database pilot program.

The pilot program, affecting ten zip codes in the Chicago area, was scheduled to take effect on January 1, 2006 but a variety of issues reportedly remain unresolved. The 150-day hiatus will allow the Department to work out the details of program implementation. There is some concern that the Department does not have the legal authority to delay the effective date set by the legislature in HB 4050. The program requires the department to review mortgage loans in the designated area and decide whether to require mortgage applicants to undergo compulsory credit counseling to be paid for by the lender. Failure for a lender to comply is a violation of the Consumer Fraud and Deceptive Practice Act and can result in license revocation and/or a large fine.