reglab/statecodes huggingface dataset:
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart H - ADVERTISING › Section 1050.940 - Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
Any advertisement appearing in Illinois by a licensee
				  regarding residential mortgage loans, whether via electronic or print media,
				  including mailings to individual potential residential mortgage loan customers,
				  shall include, in a manner that is clear and conspicuous to the
				  consumer:
a) The NMLS Consumer Access
				homepage (
www.nmlsconsumeraccess.org
).
				For electronic media, the licensee shall use the phrase "For licensing
				information, go to:
www.nmlsconsumeraccess.org
.
b) The NMLS Unique Identifier of the
				licensee. If a Mortgage Loan Orignator (MLO) is advertised, the licensee must
				include its MLO employee's individual NMLS Unique Indentifier, in addition to
				the licensee's NMLS Unique Indentifier.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart H - ADVERTISING › Section 1050.950 - Misleading and Deceptive Advertising Prohibition

Current through Register Vol. 48, No. 28, July 12, 2024
Advertisements by licensees shall not be false, misleading or
				  deceptive. Examples of prohibited advertising include but are not limited to
				  the following:
a) No advertisement
				regarding residential mortgage lending or brokering may indicate or imply that
				interest rates or charges for loans are in any way "recommended", "approved",
				"set" or "established" by the State or the Act;
b) The NMLS Unique Identifier of the licensee
				shall not appear in any advertisement relating to activities other than
				residential mortgage lending or brokering, unless wording relating to the
				licensee's residential mortgage services also appears in the such
				advertisements and in prominence equal to or greater than the language
				regarding its other activities.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart I - LOAN BROKERAGE PRACTICES › Section 1050.1010 - Loan Brokerage Agreement

Current through Register Vol. 48, No. 28, July 12, 2024
Before a mortgage loan applicant (also referred to in this
				  Section as "borrower" or "customer") signs a completed residential mortgage
				  loan application or gives the licensee any consideration, whichever comes
				  first, a loan brokerage agreement shall be required and shall be in writing and
				  signed by both the mortgage loan applicant and a licensee whose services to the
				  customer shall be loan brokering as defined at Section 1-4(o) of the
				  Act.
a) The loan brokerage agreement
				shall carry a clear and conspicuous statement that, upon request, a copy of the
				agreement shall be made available to the borrower or the borrower's attorney
				for review prior to signing.
b)
				Both the licensee's authorized representative and the borrower shall sign and
				date the loan brokerage agreement, and a copy of the executed agreement shall
				be given to the customer.
c) The
				loan brokerage agreement shall contain an explicit description of the services
				the licensee agrees to perform for the borrower and an accounting of estimated
				loan costs and fees paid to the licensee that may be provided through reference
				to, or be taken from, a good faith estimate or TILA-RESPA Integrated Loan
				Estimate. The loan brokerage agreement shall contain language of prominence
				equal to or greater than the estimate, listing the types of situations or
				conditions that could materially affect the amounts indicated as a result of
				details that could not be known by the licensee at the time of signing the loan
				brokerage agreement. Examples of such situations or conditions include, but are
				not limited to, an appraised value different from that estimated by the
				borrower or credit obligations that the borrower fails to report.
d) The loan brokerage agreement shall carry a
				clear and conspicuous statement as to the conditions under which the borrower
				is obligated to pay the licensee.
e) The loan brokerage agreement shall provide
				that, if the licensee makes false or misleading statements in the agreement,
				the borrower may, upon written notice:
1) void
				the agreement;
2) recover monies
				paid to the broker for which no services have been performed; and
3) recover actual costs, including attorney
				fees for enforcing the borrower's rights under the loan brokerage
				agreement.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart I - LOAN BROKERAGE PRACTICES › Section 1050.1020 - Loan Brokerage Disclosure Statement

Current through Register Vol. 48, No. 28, July 12, 2024
Before the borrower signs a loan brokerage agreement or gives
				  the licensee any consideration, whichever comes first, the licensee shall give
				  the borrower a written disclosure statement and shall obtain the customer's
				  signature on a duplicate of the disclosure statement near clear and conspicuous
				  wording indicating that the customer has read and understands the disclosure
				  statement or has had the contents explained to him or her by someone not
				  connected with the licensee. The disclosure statement shall prominently display
				  the following material, in the order presented:
a) In the case of a licensee who only brokers
				as defined in the Act, a clear and conspicuous statement that:
1) the licensee does not make loans,
				and
2) actual funds are provided by
				another entity that may affect availability of funds;
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart I - LOAN BROKERAGE PRACTICES › Section 1050.1030 - Prohibited Practice

Current through Register Vol. 48, No. 28, July 12, 2024
No licensee shall knowingly provide, or offer to provide, for
				  any borrower any loan brokerage services, as defined by the Act, under any
				  arrangement with any entity other than a licensee or an entity exempt from
				  licensing by Section 1-4(d) of the Act.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1100 - High Risk Home Loan Application Practices; Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 150 of the High Risk Home Loan Act
				  [815 ILCS
				  137/150 ], Sections
				  1050.1180,
				  1050.1185,
				  1050.1186
				  and
				  1050.1187 of
				  this Subpart J do not apply to loans closed on or after January 1,
				  2004.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1110 - Borrower Information Document

Current through Register Vol. 48, No. 28, July 12, 2024
Borrower Information Document. Before a mortgage loan
				  applicant, also referred to in this Subpart as "borrower" or "customer", signs
				  a completed residential mortgage loan application or gives the licensee any
				  consideration, whichever comes first, the licensee shall give the customer a
				  Borrower Information Document. The document may be incorporated into or
				  appended to the material as is necessary for compliance with relative Federal
				  requirements, including but not limited to Regulation Z ( 12 CFR 226 ). Except
				  for the explicit wording required by subsection (a) of this Section, the
				  following format is for illustrative purposes only; however, all of the
				  following information shall be included in the document:
a) Regulatory Disclosure Statement: The
				following statement: "This document is being provided to you pursuant to the
				Residential Mortgage License Act of 1987 and Rules promulgated thereunder (38
				Ill. Adm. Code 1050). The purpose of this document is to set forth those
				exhibits and materials you should receive or be receiving in connection with
				your residential mortgage loan application with (name of licensee), holder of
				License (license number) and regulated by the State of Illinois, Division of
				Banking, under the aforesaid Act".
b) Significant information: Significant
				information on the types of situations that could affect the processing of the
				loan but that may not be known by the licensee at the time the application was
				taken. Examples of such situations include, but are not limited to:
1) An appraisal value different from that
				estimated by the borrower;
2)
				Credit obligations the borrower fails to report;
3) A change in the borrower's financial
				circumstances that would result in his or her ineligibility for the loan;
				or
4) A material change or
				discontinuation of a loan program by an investor or other entity, such as the
				U.S. Department of Housing and Urban Development, the Veterans' Administration
				or a private investor.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1120 - Description of Required Documentation

Current through Register Vol. 48, No. 28, July 12, 2024
A licensee shall provide an applicant, at the time of
				  application, with an accurate and complete description of the exhibits and
				  documentation the applicant is reasonably required to provide in order for the
				  licensee to underwrite the loan.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1140 - Loan Application Procedures

Current through Register Vol. 48, No. 28, July 12, 2024
Loan application procedures shall comply with the Act as well
				  as applicable Federal and State law and regulations, including, but not limited
				  to, the Consumer Credit Protection Act (
				  15 USC
				  1601 et seq.), including Title VII (Equal
				  Credit Opportunity Act) and Title I (Truth in Lending Act) of that Act, and the
				  Consumer Fraud and Deceptive Business Practices Act [815 ILCS 505
				  ].
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1150 - Copies of Signed Documents

Current through Register Vol. 48, No. 28, July 12, 2024
The customer shall be provided, at the time of signing, a
				  copy of each document he or she signs, except for releases for credit
				  information and verifications of employment, bank accounts and current mortgage
				  history. Forms furnished for application by mail shall carry a clear and
				  conspicuous statement that it is the responsibility of the customer to obtain
				  machine copies before mailing the signed documents back to the
				  licensee.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1160 - Confirmation of Statements

Current through Register Vol. 48, No. 28, July 12, 2024
Upon a customer's written request, a licensee shall, within 3
				  days after receiving the request, confirm in writing any specific oral
				  statements or promises made to the customer or the customer's agent or
				  attorney.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1170 - Cancellation of Application

Current through Register Vol. 48, No. 28, July 12, 2024
If a residential mortgage loan applicant delivers to a
				  licensee written cancellation of his or her application on the same day
				  application was received by the licensee, the licensee shall refund all sums
				  paid by the applicant, except the licensee may, at its discretion, retain
				  $25.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1175 - Loan Log

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				Broker/Origination Loan Log. Each licensee engaged in loan brokerage or loan
				origination shall maintain a Broker/Origination Loan Log that contains the
				following for each loan application received, except that a Broker/Origination
				Log for reverse mortgages shall contain the information in subsection (c):
1) Application date (sort loan log by
				application date);
2) Borrower name
				or names;
3) Borrower or borrowers
				employer name;
4) Borrower or
				borrowers employer address;
5)
				Property seller name or names (indicate NA in the event of a
				refinance);
6) Property
				address;
7) Loan amount;
8) APR loan program;
9) Mortgage Loan Originator name;
10) Mortgage Loan Originator Unique
				Identifier (Nationwide Mortgage Licensing System);
11) Processor name or names;
12) Appraiser name or names;
13) Appraiser or appraisers license
				number;
14) Statement of whether
				the loan application was cancelled, rejected or closed or is pending and, if
				the loan application was closed, the closing date and name of the owner and
				servicer of the loan;
15) Loan
				closer name and employer name; and
16) Loan closing location.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1176 - Record Retention

Current through Register Vol. 48, No. 28, July 12, 2024
a) Record
				Retention. Pursuant to Section 2-4(c) of the Act, each licensee shall retain
				all records prepared or received in the course of its residential mortgage
				business for 36 months.
1) For records
				pertaining to the activities of loan brokering or originating, the 36 month
				period shall begin on the date of the loan closing or other termination date of
				the loan process.
2) For records
				pertaining to buying/selling loans on the secondary market, the 36 month period
				shall begin on the date the loan was sold.
3) For records pertaining to the servicing of
				loans, the 36 month period shall begin on the date the loan was paid off or on
				the date the servicing rights were sold.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1177 - Required Loan Application File Documents

Current through Register Vol. 48, No. 28, July 12, 2024
For licensees engaged in loan brokering or originating, each
				  licensee shall maintain a loan application file for each loan application. Each
				  loan application file shall include:
a) the Loan Brokerage Agreement and Loan
				Brokerage Disclosure Statement, if any mortgage loan brokerage services were
				utilized by the borrower;
b) the
				Borrower Information Document;
c)
				all documents signed by the borrower or borrowers, including, but not limited
				to, the initial loan application, disclosure documents and closing
				documents;
d) the appraisal and
				credit report, as well as other third-party documents relating to the loan;
				and
e) all other documents in or
				related to the loan file.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1180 - Ability to Repay

Current through Register Vol. 48, No. 28, July 12, 2024
A lender shall not make a high risk home loan if the lender
				  does not believe, at the time the loan is consummated, that the borrower or
				  borrowers will be able to make the scheduled payments to repay the obligation
				  based upon a consideration of their current and expected income, current
				  obligations, employment status and other financial resources (other than the
				  borrower's equity in the dwelling that secures repayment of the loan). A
				  borrower shall be presumed to be able to repay the loan if, at the time the
				  loan is consummated, or at the time of the first rate adjustment in the case of
				  a lower introductory interest rate, the borrower's scheduled monthly payments
				  on the loan (including principal, interest, taxes, insurance and assessments),
				  combined with the scheduled payments for all other disclosed debts, do not
				  exceed 50% of the borrower's monthly gross income.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1185 - Verification of Ability to Pay Loan

Current through Register Vol. 48, No. 28, July 12, 2024
The lender shall verify the borrower's ability to repay the
				  loan in the case of high risk home loans. The verification shall require, at a
				  minimum, the following:
a) The
				borrower prepares and submits to the lender a personal income and expense
				statement in a form prescribed by the Director who may permit the use of other
				forms such as the URLA (Fannie Mae Form 1003 (10/92), available from Fannie
				Mae, 3900 Wisconsin Avenue, NW, Washington, DC 20016-2892 and Freddie Mac Form
				85 (10/92), available from Freddie Mac at 1101 Pennsylvania Avenue, NW, Suite
				950, PO Box 37347, Washington, DC 20077-0001, no subsequent amendments or
				editions) and Transmittal Summary (Fannie Mae Form 1077 (3/97), available from
				Fannie Mae, 3900 Wisconsin Avenue, NW, Washington, DC 20016-2892 and Freddie
				Mac Form 1008 (3/97), available from Freddie Mac at 1101 Pennsylvania Avenue,
				NW, Suite 950, PO Box 37347, Washington, DC 20077-0001, no subsequent
				amendments or editions).
b) Income
				is verified by means of tax returns, pay stubs, accounting statements or other
				prudent means.
c) A credit report
				is obtained regarding the borrower.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1186 - Fraudulent or Deceptive Practices

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall employ fraudulent or deceptive acts or
				  practices in the making of a high risk home loan, including deceptive marketing
				  and sales efforts.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart J - LOAN APPLICATION PRACTICES › Section 1050.1187 - Prepayment Penalty

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall make a high risk home loan that includes a
				  penalty provision for payment made:
a)
				after the expiration of the 36 month period following the date the loan was
				made; or
b) that is more than:
1) 3% of the total loan amount, if the
				prepayment is made within the first 12 month period following the date the loan
				was made;
2) 2% of the total loan
				amount, if the prepayment is made within the second 12 month period after the
				date the loan was made; or
3) 1% of
				the total loan amount, if the prepayment is made within the third 12 month
				period following the date the loan was made.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1200 - High Risk Home Loan Lending Practices; Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 150 of the High Risk Home Loan Act
				  [815 ILCS
				  137/150 ], Section
				  1050.1250,
				  to the extent it applies to high risk home loans, and Sections
				  1050.1260,
				  1050.1270,
				  1050.1272,
				  1050.1275,
				  1050.1276;
				  1050.1277,
				  1050.1278 and
				  1050.1280
				  of this Subpart do not apply to loans closed on or after January 1,
				  2004.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1210 - Notice to Joint Borrowers

Current through Register Vol. 48, No. 28, July 12, 2024
Any notice required by this Subpart to be given to a
				  residential mortgage loan applicant, also referred to as "borrower" or
				  "customer", needs be given only to any one of any joint applicants, borrowers
				  or customers.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1220 - Inaccuracy of Disclosed Information

Current through Register Vol. 48, No. 28, July 12, 2024
If any information disclosed in accordance with this Part is
				  subsequently rendered inaccurate as a result of any act or occurrence beyond
				  the control of any party to the transaction, the inaccuracy shall not
				  constitute a violation of this Part.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1240 - Prohibition of Unauthorized Lenders

Current through Register Vol. 48, No. 28, July 12, 2024
With respect to loans secured by mortgages on residential
				  real estate located in the State of Illinois, no licensee shall knowingly
				  utilize the services of any loan broker or lender, other than a licensee or an
				  entity exempt from licensing pursuant to Section 1-4(d) of the
				  Act.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1250 - Good Faith Requirements

Current through Register Vol. 48, No. 28, July 12, 2024
a) For the
				purpose of this Part, "good faith" means honesty in fact in the conduct of the
				transaction.
b) Any disclosure or
				action required by the Act or this Part shall be made in good faith.
c) A licensee shall not accept a fee or
				charge for a residential mortgage loan application, unless the licensee is able
				to demonstrate to the Director that, if its normal residential mortgage loan
				requirements are met, there is a reasonable likelihood that a loan commitment
				will be issued for the loan for the amount, term, rate, charges and other
				conditions set forth in the loan application and the applicable disclosures and
				document required by this Part and that the loan has a reasonable likelihood of
				being paid by the applicant based on his or her ability to pay.
d) A licensee who has accepted an application
				for a loan to purchase residential real estate shall make a good faith effort
				to process the application within the time specified in the residential
				mortgage loan application.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1260 - Pre-paid Insurance Products and Warranties

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall make a high risk home loan that finances a
				  single premium credit life, credit disability, credit unemployment or any other
				  life or health insurance, directly or indirectly. Insurance calculated and paid
				  on a monthly basis shall not be considered to be financed by the
				  lender.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1270 - Refinancing Prohibited in Certain Cases

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall refinance any high risk home loan, if the
				  refinancing charges additional points and fees, within a 12 month period after
				  the original loan agreement was signed, unless the refinancing results in a
				  financial benefit to the borrower.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1272 - Balloon Payments

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall make a high risk home loan that contains a
				  scheduled final payment that is more than twice as large as the average of
				  earlier scheduled monthly payments unless the balloon payment becomes due and
				  payable at least 15 years after the loan's origination. This prohibition does
				  not apply when the payment schedule is adjusted to account for the seasonal or
				  irregular income of the borrower or if the purpose of the loan is a "bridge"
				  loan connected with the acquisition or construction of a dwelling intended to
				  become the borrower's principal dwelling.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1275 - Financing of Certain Points and Fees

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall make a high risk home loan if that loan
				  finances points and fees in excess of 6% of the total loan
				  amount.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1276 - Payments to Contractors

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall make a payment of any proceeds of a high risk
				  home loan to a contractor under a home improvement contract other than:
a) by instrument payable to the borrower or
				payable jointly to the borrower and the contractor; or
b) at the election of the borrower, by a
				third party escrow agent in accordance with the terms established in a written
				agreement signed by the borrower, the lender, and the contractor before the
				date of payment.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1277 - Negative Amortization

Current through Register Vol. 48, No. 28, July 12, 2024
Other than a loan secured only by a reverse mortgage, no
				  lender shall make a high risk home loan with terms under which the outstanding
				  balance will increase at any time over the course of the loan because the
				  regular periodic payments do not cover the full amount of the interest due,
				  unless the negative amortization is the consequence of a temporary forbearance
				  sought by the borrower.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1278 - Negative Equity

Current through Register Vol. 48, No. 28, July 12, 2024
No lender shall make a high risk home loan when the loan
				  amount exceeds the value of the property securing the loan plus reasonable
				  closing costs not to exceed 5% of the total loan amount.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart K - GENERAL LENDING PRACTICES › Section 1050.1280 - Counseling Prior to Perfecting Foreclosure Proceedings

Current through Register Vol. 48, No. 28, July 12, 2024
a) In the event that a high risk home loan
				becomes delinquent by more than 30 days, the servicer shall send a notice
				advising the borrower that he or she may wish to seek consumer credit
				counseling.
b) The notice required
				in subsection (a) shall, at a minimum, include the following language:
"YOUR LOAN IS OR WAS MORE THAN 30 DAYS PAST DUE. YOU MAY BE
				  EXPERIENCING FINANCIAL DIFFICULTY. IT MAY BE IN YOUR BEST INTEREST TO SEEK
				  APPROVED CONSUMER CREDIT COUNSELING. A LIST OF APPROVED CREDIT COUNSELORS MAY
				  BE OBTAINED FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL
				  REGULATION-DIVISION OF BANKING."
c) If, within 15 days after mailing the
				notice provided for under subsection (b), a lender or its agent is notified in
				writing by an approved consumer credit counselor and the approved consumer
				credit counselor advises the lender or its agent that the borrower is seeking
				approved consumer credit counseling, then the lender and its agent shall not
				institute legal action under Part 15 of Article XV of the Code of Civil
				Procedure for 30 days from the date of that notice. Only one such 30-day period
				of forbearance is allowed under this Section per subject loan.
d) If, within the 30-day period provided
				under subsection (c), the lender or its agent, the approved consumer credit
				counselor, and the borrower agree to a debt management plan, then the lender
				and its agent shall not institute legal action under Part 15 of Article XV of
				the Code of Civil Procedure for so long as the debt management plan is complied
				with by the borrower.
1) The agreed debt
				management plan must be in writing and signed by the lender or its agent, the
				approved consumer credit counselor, and the borrower. No modification of an
				approved debt management plan can be made without the mutual agreement of the
				lender or its agent, the approved consumer credit counselor, and the
				borrower.
2) Upon written notice to
				the lender or its agent, the borrower may change approved consumer credit
				counselors.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1310 - Inconsistent Conditions Prohibited

Current through Register Vol. 48, No. 28, July 12, 2024
No residential mortgage loan commitment shall contain
				  conditions inconsistent with those required by this Part in effect at the time
				  of application, unless those conditions are less onerous to the
				  borrower.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1315 - Avoidance of Commitment

Current through Register Vol. 48, No. 28, July 12, 2024
If a residential mortgage loan applicant and the subject
				  residential real estate meet a licensee's normal standards, the licensee shall
				  not refuse to make a residential mortgage loan to the applicant in order to
				  avoid complying with terms stated in written agreements between the licensee
				  and borrower or in written disclosures required by this Part.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1320 - Charges to Seller

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except for
				FHA-insured or VA-guaranteed residential mortgage loans, no licensee shall:
1) impose any charges upon a seller under a
				borrower's purchase contract;
2)
				condition any commitment for a residential mortgage loan upon the agreement of
				the seller to pay such charges; or
3) incur any charges on behalf of the seller,
				unless specifically authorized by that seller to do so.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1325 - Intentional Delay

Current through Register Vol. 48, No. 28, July 12, 2024
Any licensee that intentionally delays the processing of an
				  application during periods of interest rate fluctuations so that the delay
				  causes a borrower to incur higher costs regarding a residential mortgage loan
				  shall be liable to the borrower for such costs.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1330 - No Duplication to Borrower of Seller's Costs

Current through Register Vol. 48, No. 28, July 12, 2024
No licensee may require a borrower to furnish, or charge a
				  borrower for, items that are inconsistent with the licensee's usual standards
				  for residential mortgage loans. Those items may include, but are not limited
				  to, a survey or title commitment.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1335 - Fees and Charges

Current through Register Vol. 48, No. 28, July 12, 2024
a) Except as
				prohibited by federal statute or regulation, a licensee shall not require a
				borrower to pay any fees or charges prior to the loan closing, except charges
				to be incurred by the licensee on behalf of the borrower for services from
				third parties necessary to process the application, such as for credit reports
				and appraisals, and:
1) Loan Fees
A) Loan fees, such as origination or
				commitment fees, including fees detailed in the Loan Brokerage Agreement, may
				be charged prior to closing only if a licensee is able to demonstrate either
				that:
i) The loan commitment is provided in
				writing by the funding entity and accepted in writing by the borrower;
				or
ii) The loan commitment provided
				in writing is consistent with a Loan Brokerage Agreement provided to the
				borrower pursuant to Section
				1050.1010
				of this Part and signed by the borrower.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1340 - Refunds on Failure to Close

Current through Register Vol. 48, No. 28, July 12, 2024
If a residential mortgage loan is not closed, all the
				  licensee's charges as described in Section
				  1050.1335(a)(1)
				   shall be refunded to the borrower,
				  except:
a) To the extent a written
				agreement between the borrower and licensee or a written notification required
				by this Part specifies that they are nonrefundable; and
b) To the extent the charges were incurred by
				the licensee on behalf of the borrower for services from third parties
				necessary to process the application, such as credit reports and
				appraisals.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1345 - Representative at Closing

Current through Register Vol. 48, No. 28, July 12, 2024
No licensee may require a borrower to be present personally
				  at the closing of a residential mortgage loan, if the borrower is willing to
				  execute all the loan documents in advance and will be represented at the
				  closing by an attorney. A licensee shall make reasonable efforts to accommodate
				  a borrower who makes a request to execute the loan documents in advance. A
				  borrower who chooses not be at the closing personally may be charged reasonable
				  additional fees, such as a document preparation fee to cover additional
				  expenses.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1350 - Compliance with Other Laws

Current through Register Vol. 48, No. 28, July 12, 2024
Commitment and closing procedures, including those involving
				  TILA-RESPA Intergrated Disclosures set forth at 12 CFR 1024 (2017) and 12 CFR
				  1026 (2017), of a licensee shall comply with applicable Federal and State
				  statutes and regulations, including but not limited to the following:
a) The Interest Act [ 815 ILCS 205
				];
b) Mortgage Escrow Account Act [
				765 ILCS 910 ];
c) Consumer Fraud
				and Deceptive Business Practices Act [ 815 ILCS 505 ];
d) The Truth in Lending Act (
				15 USC
				1601 ) as implemented by Regulation Z ( 12
				CFR 1026 ) (2017));
e) The Real
				Estate Settlement Procedure Act of 1974 d (
				12 USC
				2601 ) as implemented by Regulation X ( 12
				CFR 1024 ) (2017).
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1355 - Failure to Close - Disclosure

Current through Register Vol. 48, No. 28, July 12, 2024
If a residential mortgage loan fails to close within a
				  specified commitment period, the licensee shall provide detailed written
				  notification, in plain English, to the applicant as to why the residential
				  mortgage loan failed to close and specifying any resulting conditions that will
				  affect the availability of the loan.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart L - COMMITMENT AND CLOSING PRACTICES › Section 1050.1360 - Escrow Account Agreements at Closing

Current through Register Vol. 48, No. 28, July 12, 2024
a) If the mortgage is not FHA-insured or
				VA-guaranteed and relates to the purchase of owner-occupied, single-family
				security real estate:
1) A document shall be
				executed by the residential mortgage loan applicant at closing to indicate his
				or her acceptance or rejection of the use of a pledged time deposit account in
				lieu of an escrow account pursuant to the Mortgage Escrow Account Act [205 ILCS
				910 ]; or
2) In the case of a
				lender who is not required by law to comply with the Mortgage Escrow Account
				Act, the licensee shall furnish a written explanation, including citations, to
				the authority for noncompliance to be given to the mortgage loan applicant at
				closing, with a copy to be signed by the applicant acknowledging
				receipt.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart M - EXEMPTION GUIDELINES › Section 1050.1410 - General

Current through Register Vol. 48, No. 28, July 12, 2024
The exemption provision of Section 1-4(d) of the Act shall be
				  construed to avoid duplication of licensing and regulatory supervision of the
				  same or similar activity by State and Federal agencies. To the extent that the
				  specific conduct or business activity is not otherwise separately licensed or
				  regulated, the provisions of Section 1-4(d) shall be strictly
				  construed.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart M - EXEMPTION GUIDELINES › Section 1050.1420 - Interpretative Guidelines

Current through Register Vol. 48, No. 28, July 12, 2024
Any person may request an interpretative ruling of the
				  Director on the question of whether that person is an exempt entity within the
				  meaning of the Act. Such requests shall be in writing and contain sufficient
				  information as to reasonably inform the Director of the basis for the
				  exemption.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart N - ADMINISTRATIVE HEARING PROCEDURES › Section 1050.1510 - Hearings

Current through Register Vol. 48, No. 28, July 12, 2024
All administrative hearings shall be conducted in accordance
				  with 38 Ill. Adm. Code 100.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart O - MORTGAGE AWARENESS PROGRAM › Section 1050.1800 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 150 of the High Risk Home Loan Act
				  [815 ILCS
				  137/150 ], this Subpart O does not apply to loans
				  closed on or after January 1, 2004.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart O - MORTGAGE AWARENESS PROGRAM › Section 1050.1810 - General

Current through Register Vol. 48, No. 28, July 12, 2024
The Mortgage Awareness Program is a counseling and
				  educational component that is provided by the Department of Financial and
				  Professional Regulation-Division of Financial Institutions.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart O - MORTGAGE AWARENESS PROGRAM › Section 1050.1820 - Guidelines

Current through Register Vol. 48, No. 28, July 12, 2024
a) The core
				curriculum of the Mortgage Awareness Program shall include an explanation of:
1) the amount financed;
2) the finance charge;
3) the annual percentage rate;
4) the total payments;
5) the loan costs, including broker's fees,
				finance charges, points, origination fees;
6) the right of recission;
7) the foreclosure procedures;
8) the significant debt ratios, including
				total debt to income, loan debt to income, and loan debt to value of
				residence;
9) adjustable rate
				mortgage;
10) balloon
				payments;
11) credit
				options;
12) each item that appears
				on a good faith estimate;
13)
				pre-payment penalties.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart O - MORTGAGE AWARENESS PROGRAM › Section 1050.1830 - Offer of Mortgage Awareness Program

Current through Register Vol. 48, No. 28, July 12, 2024
a) Any lender, prior to making a high risk
				home loan, shall inform the borrower in writing of the right to participate in
				the Mortgage Awareness Program.
b)
				No lender shall offer less favorable loan terms to a borrower due to a
				borrower's participation in a Mortgage Awareness Program.
c) Except as prohibited elsewhere in this
				Part, the borrower may waive participation in the program, provided that the
				waiver occurs no less than 2 business days after the day that the borrower
				receives the written notice required by subsection (a) and that the waiver is
				in writing in a form approved by the Director.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart P - DEFAULT AND FORECLOSURE RATES ON CONVENTIONAL LOANS › Section 1050.1900 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 150 of the High Risk Home Loan Act
				  [815 ILCS
				  137/150 ], this Subpart P does not apply to loans
				  closed on or after January 1, 2004.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart P - DEFAULT AND FORECLOSURE RATES ON CONVENTIONAL LOANS › Section 1050.1910 - Report of Default and Foreclosure Rates on Conventional Loans

Current through Register Vol. 48, No. 28, July 12, 2024
a) On or before
				October 1 and April 1 of each year, each licensee that is a servicer of
				Illinois residential mortgage loans shall report to the Director the default
				and foreclosure data of conventional loans for the six month periods ending
				June 30 and December 31, respectively.
b) Each licensee shall report:
1) The average quarterly dollar amount of
				conventional 1-4 family mortgage loans secured by Illinois real
				estate.
2) The average quarterly
				number of conventional 1-4 family mortgage loans secured by Illinois real
				estate.
3) The average quarterly
				dollar amount of conventional 1-4 family mortgage loans secured by Illinois
				real estate that are in default over 90 days.
4) The average quarterly number of
				conventional 1-4 family mortgage loans secured by Illinois real estate that are
				in default over 90 days.
5) The
				dollar amount of foreclosures on 1-4 family conventional loans completed during
				the reporting period.
6) The number
				of foreclosures on 1-4 family conventional loans completed during the reporting
				period.
7) Whether any of the loans
				where a foreclosure was completed were originated less than 18 months before
				the completed foreclosure.
8)
				Whether any of the loans where a foreclosure was completed had a note rate
				greater than 10% for first lien mortgage loans or greater than 12% in the case
				of a junior lien.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart P - DEFAULT AND FORECLOSURE RATES ON CONVENTIONAL LOANS › Section 1050.1920 - Director's Review and Analysis

Current through Register Vol. 48, No. 28, July 12, 2024
a)
				The Director shall review and analyze the default and foreclosure rate data
				reports submitted under Section
				1050.1910.
b) The reports and their analyses may be
				used:
1) In setting the scope of a regularly
				scheduled examination.
2) In
				setting the scope of a special examination.
3) In comparing the reported information of a
				licensee to other licensees subject to the Act.
4) In comparing the reported information of a
				licensee to the reports submitted by licensees and charters under other
				Acts.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart Q - THIRD PARTY REVIEW OF HIGH RISK HOME LOANS › Section 1050.2000 - Applicability

Current through Register Vol. 48, No. 28, July 12, 2024
Pursuant to Section 150 of the High Risk Home Loan Act
				  [815 ILCS
				  137/150 ], this Subpart Q does not apply to loans
				  closed on or after January 1, 2004.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart Q - THIRD PARTY REVIEW OF HIGH RISK HOME LOANS › Section 1050.2010 - Third Party Review of High Risk Home Loans

Current through Register Vol. 48, No. 28, July 12, 2024
In the case of any high risk home loan, the borrower shall be
				  afforded the opportunity to seek independent review by the Division of the loan
				  terms, in order to determine affordability of the loan, when and if the General
				  Assembly appropriates adequate funding to the Division specifically for this
				  program.
a) Every borrower who chooses
				to participate in the independent review provided in this Section shall submit
				information requested on the worksheets outlined in Appendix A and Appendix
				B.
b) The Division shall provide
				the borrower with a review of the worksheets and shall also inform the borrower
				of the amount the borrower has available for a monthly mortgage payment based
				upon the borrower's budget.
c) In
				addition, the Division shall review loan information pertaining to balloon
				payments and adjustable interest rates and other items disclosed by the loan
				documents affecting amount of payment and shall inform the borrower of such
				items.
d) The borrower shall
				receive a copy of the completed forms and shall sign the forms acknowledging
				receipt. A copy of the written and signed forms shall be submitted to the
				lender prior to the closing of the loan and shall become a part of the
				permanent file for the loan.
e) If,
				based upon the review, the borrower determines that the loan is not in his or
				her best economic interest, the reviewer shall so note this in the completed
				forms sent to the lender. This determination shall enable the borrower to
				withdraw from the contemplated loan with no financial penalty.
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart R - REGISTRATION OF LOAN ORIGINATORS (Repealed) › Section 1050.2170 - Suspension or Revocation of Registration, Refusal to Renew, Fines (Repealed)

Current through Register Vol. 48, No. 28, July 12, 2024
Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart R - REGISTRATION OF LOAN ORIGINATORS (Repealed) › Section 1050.2175 - Loan Originator Hearings; Fees and Costs (Repealed)

Current through Register Vol. 48, No. 28, July 12, 2024