PDF Print E-mail

Illinois Association of Mortgage Brokers v. Office of Banks & Real Estate, 308 F.3d 762 (7th Cir. 2002)

The Alternative Mortgage Transaction Parity Act of 1982 prohibits states from placing on state-charted mortgage lenders greater restrictions than federal law places on federally-charted mortgage lenders.  Nevertheless, Illinois did precisely that.  And, when the Illinois Association of Mortgage Brokers complained that Illinois’s actions were impermissible under the Parity Act’s prohibition, Illinois argued that a more recent federal statute did away with that prohibition.  The district court agreed and granted summary judgment for Illinois.  On appeal, however, the Seventh Circuit agreed with the association – and with amicus curiae represented by VBLH&C – that the prohibition on additional state regulations was still in place.  Thus, the Seventh Circuit vacated and remanded the judgment against the association.