Illinois' Mortgage Profit Cap: A Gimmick or a Game Changer for Buyer Demand?
September 12, 2025
In a bid to address persistent housing affordability challenges, a new piece of legislation is making its way through the Illinois General Assembly. The bill, which has gained traction in recent weeks, proposes a cap on the percentage of profit lenders can earn on residential mortgages. Proponents argue this move will lower borrowing costs, sparking a much-needed surge in buyer demand. But for investors and market participants, the question isn't whether the intent is good, but whether the outcome will truly solve anything—or simply add a new layer of risk to an already complex market.