|
|
|
|
94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2056
Introduced 2/14/2005, by Rep. Michael J. Madigan - Barbara Flynn Currie - Susana A Mendoza SYNOPSIS AS INTRODUCED:
|
|
|
|
Amends the High Risk Home Loan Act. Makes a technical change in a Section
concerning the prohibition on certain home loans.
|
| |
|
|
|
|
A BILL FOR
|
|
|
|
|
HB2056 |
|
LRB094 02758 RXD 32759 b |
|
|
| 1 |
| AN ACT concerning business.
|
| 2 |
| Be it enacted by the People of the State of Illinois, |
| 3 |
| represented in the General Assembly:
|
| 4 |
| Section 5. The High Risk Home Loan Act is amended by |
| 5 |
| changing Section 15 as follows:
|
| 6 |
| (815 ILCS 137/15)
|
| 7 |
| Sec. 15. Ability to repay. A creditor or broker shall not |
| 8 |
| transfer, deal
in, offer,
or
make a high risk home loan if the
|
| 9 |
| the creditor or broker does not believe at the
time the loan
is
|
| 10 |
| consummated that the borrower will be able to make the |
| 11 |
| scheduled
payments to repay the obligation based upon a |
| 12 |
| consideration of his or her
current and
expected income, |
| 13 |
| current obligations, employment status, and other financial
|
| 14 |
| resources (other than the borrower's equity in the dwelling |
| 15 |
| that secures
repayment of the loan). A borrower shall be |
| 16 |
| presumed to be able to repay the
loan if, at the time the loan |
| 17 |
| is consummated, or at the time of the first rate
adjustment, in |
| 18 |
| the case of a lower introductory interest rate, the borrower's
|
| 19 |
| scheduled monthly payments on the loan (including principal, |
| 20 |
| interest, taxes,
insurance, and assessments), combined with |
| 21 |
| the scheduled payments for all
other disclosed debts, do not |
| 22 |
| exceed 50% of the borrower's monthly gross
income. |
| 23 |
| (Source: P.A. 93-561, eff. 1-1-04.)
|