Bill Status of HB 1478   95th General Assembly

Short Description:  PREDATORY HOME LOAN ACT

House Sponsors
Rep. Daniel J. Burke-Karen A. Yarbrough-Cynthia Soto-Elizabeth Hernandez-Susana A Mendoza, Mary E. Flowers, Al Riley, Mike Boland, Marlow H. Colvin, Lisa M. Dugan, Esther Golar, Eddie Washington, Deborah L. Graham, Edward J. Acevedo, Linda Chapa LaVia, Monique D. Davis, Maria Antonia Berrios, Luis Arroyo and Richard T. Bradley

Last Action  View All Actions

DateChamber Action
  1/13/2009HouseSession Sine Die

Statutes Amended In Order of Appearance
New Act

Synopsis As Introduced
Creates the Predatory Home Loan Practices Act. Prohibits various practices and charges in connection with home loans made to persons with respect to their primary residence. Prohibits the imposition of prepayment penalties, flipping of loans, and lender financing of credit insurance. Imposes limitations on high-cost loans. Prohibits loans unless the lender reasonably believes that the borrower is able to make scheduled payments to repay the loan without respect to the borrower's equity in the property. Authorizes a borrower to obtain damages for violations of the Act.

House Amendment No. 2
Deletes reference to:
New Act
Adds reference to:
205 ILCS 635/4-16 new
205 ILCS 635/5-6 new
205 ILCS 635/5-7 new
205 ILCS 635/5-8 new
205 ILCS 635/5-9 new
205 ILCS 635/5-10 new
205 ILCS 635/5-11 new
205 ILCS 635/5-12 new
205 ILCS 635/5-14 new
205 ILCS 635/5-15 new
205 ILCS 635/5-16 new
205 ILCS 635/5-17 new
815 ILCS 205/4.1afrom Ch. 17, par. 6406
205 ILCS 635/4-15 new

Replaces everything after the enacting clause. Amends the Residential Mortgage License Act of 1987. Provides that the Attorney General may enforce violations of certain provisions under the Consumer Fraud and Deceptive Business Practices Act. Provides that a borrower injured by a violation of certain standards, duties, prohibitions, or requirements in the Act shall have a private right of action. Provides that no licensee shall make, provide, or arrange for a residential mortgage loan without verifying the borrower's reasonable ability to pay the principal and interest on the loan, real estate taxes, homeowner's insurance, assessments, and mortgage insurance premiums. Provides for the fiduciary duty of a broker. Prohibits prepayment penalties. Provides that a licensee shall provide notice of change in loan terms to a borrower. Provides that when comparing different loans, the licensee must not state or imply that monthly loan payments, if they include amounts escrowed for payment of property taxes and homeowner's insurance, are comparable with monthly loan payments that do not include these amounts. Requires lenders to provide the borrower with a complete copy of any appraisal. Prohibits licensees from making verbal promises to refinance on more favorable terms. Prohibits the following activities by a loan broker or lender: (i) equity stripping and loan flipping and (ii) encouraging default. Adds a severability clause. Amends the Interest Act. Provides that certain provisions of the Interest Act apply to a residential mortgage loan. Makes other changes.

House Amendment No. 3
In a provision concerning the verification of a borrower's ability to repay, provides that for a residential mortgage loan made by a licensee (rather than all residential mortgage loans), the borrowers income and financial resources must be verified by tax returns, payroll receipts, bank records, or other similarly reliable documents. Provides that licensees (instead of lenders) are required to provide a borrower with a copy of all appraisals. Makes a technical change.

Actions 
DateChamber Action
  2/21/2007HouseFiled with the Clerk by Rep. Daniel J. Burke
  2/21/2007HouseFirst Reading
  2/21/2007HouseReferred to Rules Committee
  2/27/2007HouseAssigned to Executive Committee
  3/21/2007HouseDo Pass / Short Debate Executive Committee; 013-000-000
  3/21/2007HousePlaced on Calendar 2nd Reading - Short Debate
  3/28/2007HouseAdded Chief Co-Sponsor Rep. Esther Golar
  3/28/2007HouseAdded Chief Co-Sponsor Rep. Elizabeth Hernandez
  3/28/2007HouseAdded Chief Co-Sponsor Rep. Lisa M. Dugan
  3/28/2007HouseAdded Chief Co-Sponsor Rep. Marlow H. Colvin
  3/28/2007HouseAdded Co-Sponsor Rep. Karen A. Yarbrough
  3/28/2007HouseChief Co-Sponsor Changed to Rep. Elizabeth Hernandez
  3/28/2007HouseChief Co-Sponsor Changed to Rep. Elizabeth Hernandez
  3/29/2007HouseAdded Co-Sponsor Rep. Mary E. Flowers
  4/17/2007HouseHouse Amendment No. 1 Filed with Clerk by Rep. Daniel J. Burke
  4/17/2007HouseHouse Amendment No. 1 Referred to Rules Committee
  4/18/2007HouseHouse Amendment No. 1 Rules Refers to Executive Committee
  4/18/2007HouseAdded Co-Sponsor Rep. Al Riley
  4/19/2007HouseRemove Chief Co-Sponsor Rep. Esther Golar
  4/19/2007HouseAdded Chief Co-Sponsor Rep. Karen A. Yarbrough
  4/19/2007HouseRemove Chief Co-Sponsor Rep. Lisa M. Dugan
  4/19/2007HouseRemove Chief Co-Sponsor Rep. Marlow H. Colvin
  4/19/2007HouseRemoved Co-Sponsor Rep. Karen A. Yarbrough
  4/19/2007HouseAdded Chief Co-Sponsor Rep. Cynthia Soto
  4/19/2007HouseAdded Chief Co-Sponsor Rep. Susana A Mendoza
  4/19/2007HouseAdded Co-Sponsor Rep. Mike Boland
  4/19/2007HouseAdded Co-Sponsor Rep. Marlow H. Colvin
  4/19/2007HouseAdded Co-Sponsor Rep. Lisa M. Dugan
  4/19/2007HouseAdded Co-Sponsor Rep. Esther Golar
  4/19/2007HouseAdded Co-Sponsor Rep. Eddie Washington
  4/19/2007HouseAdded Co-Sponsor Rep. Deborah L. Graham
  4/25/2007HouseHouse Amendment No. 1 Recommends Be Adopted Executive Committee; 013-000-000
  4/25/2007HouseAdded Co-Sponsor Rep. Edward J. Acevedo
  4/25/2007HouseAdded Co-Sponsor Rep. Linda Chapa LaVia
  4/25/2007HouseAdded Co-Sponsor Rep. Monique D. Davis
  4/26/2007HouseHouse Amendment No. 2 Filed with Clerk by Rep. Daniel J. Burke
  4/26/2007HouseHouse Amendment No. 2 Referred to Rules Committee
  4/27/2007HouseThird Reading/Final Action Deadline Extended-9(b) May 3, 2007
  4/30/2007HouseHouse Amendment No. 2 Recommends Be Adopted Rules Committee; 003-000-000
  5/2/2007HouseAdded Co-Sponsor Rep. Maria Antonia Berrios
  5/2/2007HouseAdded Co-Sponsor Rep. Luis Arroyo
  5/2/2007HouseAdded Co-Sponsor Rep. Richard T. Bradley
  5/2/2007HouseSecond Reading - Short Debate
  5/2/2007HouseHouse Amendment No. 1 Withdrawn by Rep. Daniel J. Burke
  5/2/2007HouseHouse Amendment No. 2 Adopted by Voice Vote
  5/2/2007HousePlaced on Calendar Order of 3rd Reading - Short Debate
  5/3/2007HouseThird Reading/Final Action Deadline Extended-9(b) May 10, 2007
  5/10/2007HouseThird Reading/Final Action Deadline Extended-9(b) May 18, 2007
  5/15/2007HouseHouse Amendment No. 3 Filed with Clerk by Rep. Daniel J. Burke
  5/15/2007HouseHouse Amendment No. 3 Referred to Rules Committee
  5/18/2007HouseHouse Amendment No. 3 Recommends Be Adopted Rules Committee; 003-000-000
  5/18/2007HouseRecalled to Second Reading - Short Debate
  5/18/2007HouseHeld on Calendar Order of Second Reading - Short Debate
  5/18/2007HouseHouse Amendment No. 3 Adopted by Voice Vote
  5/18/2007HousePlaced on Calendar Order of 3rd Reading - Short Debate
  5/18/2007HouseFinal Action Deadline Extended-9(b) May 25, 2007
  5/25/2007HouseRule 19(a) / Re-referred to Rules Committee
  1/13/2009HouseSession Sine Die

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