A long-fought battle ended in Illinois last week, souring consumer and states rights advocates but providing clarity for mortgage lenders and secondary market participants. Striking down an appellate court ruling, the state's Supreme Court ruled lenders were not bound by certain fee restrictions that the state's predatory lending law imposed.

For secondary market participants - from trustees to investors - that means pending and future lawsuits in regard to fees deemed excessive under the so-called Illinois Interest Act will not end up costing what could have been quite a bit of time and money. Consumers, on the other hand, will largely need to look to federal law for predatory lending protections.

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