Date	Chamber	Action
6/1/2006	Senate	Public Act . . . . . . . . . 94-0822

Statutes Amended In Order of Appearance

New Act

815 ILCS 505/2Z

from Ch. 121 1/2, par. 262Z

Synopsis As Introduced
Creates the Mortgage Rescue Fraud Act. Outlines the terms that must be contained in a distressed property consultant contract and a distressed property reconveyance contract. Provides notice requirements for a distressed property consultant contract. Provides the right to cancel a distressed property consultant contract at any time until after the distressed property consultant has fully performed each contracted service. Provides the owner of the distressed property has a right to cancel a distressed property reconveyance contract at any time until midnight of the fifth business day following the day on which the owner of the distressed property signs the contract or until 8:00 a.m. on the last day of the period during which the owner of the distressed property has a right of redemption. Lists actions that constitute a violation of the Act. Provides for civil remedies for violation of the Act. Provides that a person who commits an intentional violation of one of the listed violations of the Act commits criminal mortgage rescue fraud. Provides criminal penalties for a person who commits criminal mortgage rescue fraud. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that a violation of the Mortgage Rescue Fraud Act is a violation of the Consumer Fraud and Deceptive Business Practices Act. Effective January 1, 2007.

Senate Floor Amendment No. 3
Replaces everything after the enacting clause. Reinserts the provisions of the original bill with the following changes. Changes references from "reconveyance" to "conveyance". Provides that if the contract for the distressed property is not recorded, the contract and any conveyance made or given pursuant to the terms of the contract are void. Prohibits a distressed property purchaser from entering into a contract for distressed property unless the owner of the distressed property has a reasonable ability to pay for the subsequent conveyance of an interest back to the owner of the distressed property and to make monthly or any other required payments due prior to that time. Prohibits a distressed property purchaser from causing the property to be conveyed or incumbered without the knowledge or permission of the distressed property owner or in any way frustrate the ability of the distressed property owner to complete the conveyance back to the distressed property owner. Provides that the remedies under the Act are not exclusive, but cumulative and all other applicable claims, including, but not limited to, those brought under the direction of equitable mortgage, are specifically preserved. Makes other changes. Effective January 1, 2007.

House Amendment No. 1
In the definition of "distressed property consultant", provides that a "distressed property consultant" does not include a 501(c)(3) nonprofit agency or organization, doing business for no less than 5 years, that offers counseling or advice to an owner of a distressed property (instead of a home in foreclosure or loan default), if they do not contract for services with for-profit lenders or distressed property purchasers, or any person who structures or plans such a transaction. Changes the definition of "distressed property purchaser" to include any person who participates in a joint venture or joint enterprise involving a distressed property conveyance (instead of structures or plans a distressed property conveyance). Removes language providing that if the contract is not recorded, the contract and any conveyance made or given pursuant to the terms of the contract are void ab initio. Makes other changes. Effective January 1, 2007.

House Amendment No. 2
Further amends the Mortgage Rescue Fraud Act. In the definition of "distressed property purchaser", provides that a "distressed property purchaser" does not mean any person who acquires distressed property at a short sale or any person acting in participation with any person who acquires distressed property at a short sale, if that person does not promise to convey an interest in fee back to the owner or does not give the owner an option to purchase the property at a later date. Provides that a distressed property purchaser shall not fail to make a payment to the owner of the distressed property at the time the title is conveyed so that the owner of the distressed property has received consideration in an amount of at least 82% of the property's fair market value, or, in the alternative, fail to pay the owner of the distressed property no more than the costs necessary to extinguish all of the existing obligations on the distressed property provided that the owner's costs to repurchase the distressed property pursuant to the terms of the distressed property conveyance contract do not exceed 125% of the distressed property purchaser's costs to purchase the property. Provides that, if an owner is unable to repurchase the property pursuant to the terms of the distressed property conveyance contract, the distressed property purchaser shall not fail to make a payment to the owner of the distressed property so that the owner of the distressed property has received consideration in an amount of at least 82% of the property's fair market value at the time of conveyance or at the expiration of the owner's option to repurchase.

Actions 

Date	Chamber	Action
1/18/2006	Senate	Filed with Secretary by Sen. Jacqueline Y. Collins
1/18/2006	Senate	Chief Co-Sponsor Sen. Terry Link
1/18/2006	Senate	First Reading
1/18/2006	Senate	Referred to Rules
1/18/2006	Senate	Added as Chief Co-Sponsor Sen. Donne E. Trotter
1/19/2006	Senate	Added as Chief Co-Sponsor Sen. Arthur J. Wilhelmi
1/31/2006	Senate	Added as Chief Co-Sponsor Sen. Jeffrey M. Schoenberg
2/1/2006	Senate	Added as Co-Sponsor Sen. Ira I. Silverstein
2/8/2006	Senate	Assigned to Financial Institutions
2/8/2006	Senate	Senate Committee Amendment No. 1 Filed with Secretary by Sen. Jacqueline Y. Collins
2/8/2006	Senate	Senate Committee Amendment No. 1 Referred to Rules
2/14/2006	Senate	Senate Committee Amendment No. 1 Rules Refers to Financial Institutions
2/15/2006	Senate	Senate Committee Amendment No. 2 Filed with Secretary by Sen. Jacqueline Y. Collins
2/15/2006	Senate	Senate Committee Amendment No. 2 Referred to Rules
2/16/2006	Senate	Senate Committee Amendment No. 1 Held in Financial Institutions
2/16/2006	Senate	Do Pass Financial Institutions; 009-000-000
2/16/2006	Senate	Placed on Calendar Order of 2nd Reading February 22, 2006
2/16/2006	Senate	Added as Co-Sponsor Sen. Kimberly A. Lightford
2/17/2006	Senate	Senate Committee Amendment No. 1 Rule 3-9(a) / Re-referred to Rules
2/24/2006	Senate	Senate Floor Amendment No. 3 Filed with Secretary by Sen. Jacqueline Y. Collins
2/24/2006	Senate	Senate Floor Amendment No. 3 Referred to Rules
2/28/2006	Senate	Senate Floor Amendment No. 3 Rules Refers to Financial Institutions
3/1/2006	Senate	Senate Floor Amendment No. 3 Recommend Do Adopt Financial Institutions; 008-000-000
3/1/2006	Senate	Second Reading
3/1/2006	Senate	Senate Floor Amendment No. 3 Adopted; Collins
3/1/2006	Senate	Placed on Calendar Order of 3rd Reading March 2, 2006
3/2/2006	Senate	Added as Co-Sponsor Sen. Martin A. Sandoval
3/2/2006	Senate	Third Reading - Passed; 056-000-000
3/2/2006	Senate	Senate Committee Amendment No. 1 Tabled Pursuant to Rule 5-4(a)
3/2/2006	Senate	Senate Committee Amendment No. 2 Tabled Pursuant to Rule 5-4(a)
3/2/2006	House	Arrived in House
3/2/2006	House	Placed on Calendar Order of First Reading
3/2/2006	House	Chief House Sponsor Rep. Marlow H. Colvin
3/2/2006	House	First Reading
3/2/2006	House	Referred to Rules Committee
3/3/2006	House	Added Alternate Chief Co-Sponsor Rep. Karen A. Yarbrough
3/3/2006	House	Added Alternate Chief Co-Sponsor Rep. Calvin L. Giles
3/3/2006	House	Added Alternate Chief Co-Sponsor Rep. Eddie Washington
3/14/2006	House	Assigned to Consumer Protection Committee
3/23/2006	House	Alternate Chief Co-Sponsor Removed Rep. Eddie Washington
3/24/2006	House	House Amendment No. 1 Filed with Clerk by Consumer Protection Committee
3/24/2006	House	House Amendment No. 1 Adopted in Consumer Protection Committee; by Voice Vote
3/24/2006	House	Do Pass as Amended / Short Debate Consumer Protection Committee; 008-004-000
3/24/2006	House	Placed on Calendar 2nd Reading - Short Debate
3/24/2006	House	Added Alternate Chief Co-Sponsor Rep. Eddie Washington
3/24/2006	House	Added Alternate Chief Co-Sponsor Rep. Deborah L. Graham
3/28/2006	House	House Amendment No. 2 Filed with Clerk by Rep. Marlow H. Colvin
3/28/2006	House	House Amendment No. 2 Referred to Rules Committee
3/29/2006	House	House Amendment No. 2 Recommends Be Adopted Rules Committee; 004-000-000
3/31/2006	House	Final Action Deadline Extended-9(b) April 7, 2006
4/4/2006	House	Second Reading - Short Debate
4/4/2006	House	House Amendment No. 2 Adopted by Voice Vote
4/4/2006	House	Placed on Calendar Order of 3rd Reading - Short Debate
4/6/2006	House	Third Reading - Short Debate - Passed 081-027-007
4/6/2006	Senate	Secretary's Desk - Concurrence House Amendment(s) 01,02
4/6/2006	Senate	Placed on Calendar Order of Concurrence House Amendment(s) 01,02-April 7, 2006
4/6/2006	Senate	House Amendment No. 1 Motion to Concur Filed with Secretary Sen. Jacqueline Y. Collins
4/6/2006	Senate	House Amendment No. 1 Motion to Concur Referred to Rules
4/6/2006	Senate	House Amendment No. 2 Motion to Concur Filed with Secretary Sen. Jacqueline Y. Collins
4/6/2006	Senate	House Amendment No. 2 Motion to Concur Referred to Rules
4/6/2006	Senate	House Amendment No. 1 Motion to Concur Rules Referred to Financial Institutions
4/6/2006	Senate	House Amendment No. 2 Motion to Concur Rules Referred to Financial Institutions
4/7/2006	Senate	House Amendment No. 1 Motion To Concur Recommended Do Adopt Financial Institutions; 009-000-000
4/7/2006	Senate	House Amendment No. 2 Motion To Concur Recommended Do Adopt Financial Institutions; 009-000-000
4/10/2006	Senate	Added as Co-Sponsor Sen. Mattie Hunter
4/10/2006	Senate	House Amendment No. 1 Senate Concurs 051-000-000
4/10/2006	Senate	House Amendment No. 2 Senate Concurs 051-000-000
4/10/2006	Senate	Passed Both Houses
5/9/2006	Senate	Sent to the Governor
6/1/2006	Senate	Governor Approved
6/1/2006	Senate	Effective Date January 1, 2007
6/1/2006	Senate	Public Act . . . . . . . . . 94-0822

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