Sec. 25. Reverse mortgages; restriction on cross-selling.
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/il/chapter-765/act-945/25A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Sec. 25. Reverse mortgages; restriction on cross-selling. No lender may:
(1)require the purchase of an annuity, investment, life insurance, or long-term care
insurance product as a condition of obtaining a reverse mortgage loan; however, nothing in this paragraph shall preclude a lender from requiring the borrower to purchase property and casualty insurance, title insurance, flood insurance, or other products meant to insure or protect the value of the home or the lender's lien and that are customary for residential mortgage or reverse mortgage transactions on the borrower's residence securing the reverse mortgage loan;
(2)enter into any agreement to make a reverse mortgage loan that obligates the
borrower to purchase an annuity, investment, life insurance, or long-term care insurance product;
(3)offer an annuity to the borrower before the closing of the reverse mortgage or
before the expiration of the right of the borrower to rescind the reverse mortgage agreement;
(4)refer the borrower to anyone for the purchase of an annuity before the closing of
the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage agreement; or
(5)provide marketing information or annuity sales leads to anyone regarding the
prospective borrower or borrower before the closing of the reverse mortgage or before the expiration of the right of the borrower to rescind the reverse mortgage loan.