Bill Status of SB 3522   97th General Assembly

Short Description:  HOME LOAN PREPAYMENT PENALTIES

Senate Sponsors
Sen. Jacqueline Y. Collins-Iris Y. Martinez-Mattie Hunter-Kimberly A. Lightford

House Sponsors
(Rep. Karen A. Yarbrough-Al Riley-Luis Arroyo-André M. Thapedi-Kelly M. Cassidy, La Shawn K. Ford, Deborah Mell, Kimberly du Buclet, Cynthia Soto, Elizabeth Hernandez, Daniel Biss, Camille Y. Lilly, Maria Antonia Berrios, Sara Feigenholtz, Edward J. Acevedo, Kenneth Dunkin, Jehan A. Gordon, Constance A. Howard, Michael J. Zalewski and Barbara Flynn Currie)


Last Action  View All Actions

DateChamber Action
  1/8/2013SenateSession Sine Die

Statutes Amended In Order of Appearance
205 ILCS 635/5-8
815 ILCS 137/10
815 ILCS 137/30
815 ILCS 137/35 new
815 ILCS 137/35.5 new
815 ILCS 137/55
815 ILCS 137/80
815 ILCS 137/80.5 new
815 ILCS 137/80.6 new
815 ILCS 137/90.5 new
815 ILCS 137/145
815 ILCS 205/4.1afrom Ch. 17, par. 6406

Synopsis As Introduced
Amends the Residential Mortgage License Act of 1987, the High Risk Home Loan Act, and the Interest Act. Limits the imposition of prepayment penalties in connection with high risk home loans. Limits the size of balloon payments in connection with high risk home loans. Limits the imposition of late fees. Effective January 1, 2013.

Senate Floor Amendment No. 1
In the definition of the term "high risk home loan" provides for the interest limit associated with the prime offer rate to be established under the federal Truth in Lending Act. Excludes from the calculation certain bona fide third-party fees not retained by the lender, creditor, or affiliates. Removes certain restrictions on the financing of points and fees when the creditor or an affiliate of the creditor is the noteholder of the note being financed.

House Committee Amendment No. 1
Deletes reference to:
205 ILCS 635/5-8
815 ILCS 137/10
815 ILCS 137/30
815 ILCS 137/35 new
815 ILCS 137/35.5 new
815 ILCS 137/55
815 ILCS 137/80
815 ILCS 137/80.5 new
815 ILCS 137/80.6 new
815 ILCS 137/90.5 new
815 ILCS 137/145
815 ILCS 205/4.1afrom Ch. 17, par. 6406
Adds reference to:
765 ILCS 5/11from Ch. 30, par. 10

Replaces everything after the enacting clause. Amends the Conveyances Act. Declares that the existing provisions of the Act concerning the form of a mortgage are and always have been permissive and not mandatory. Provides that the failure of an otherwise lawfully executed and recorded mortgage to be in the form described in the Act in one or more respects, including the failure to state the interest rate or the maturity date, or both, shall not affect the validity or priority of the mortgage, nor shall its recordation be ineffective for notice purposes regardless of when the mortgage was recorded. Effective immediately.

House Floor Amendment No. 2
Adds reference to:
20 ILCS 3805/7.30
20 ILCS 3805/7.31
720 ILCS 5/21-3from Ch. 38, par. 21-3
735 ILCS 5/15-1200.5 new
735 ILCS 5/15-1200.7 new
735 ILCS 5/15-1219from Ch. 110, par. 15-1219
735 ILCS 5/15-1503from Ch. 110, par. 15-1503
735 ILCS 5/15-1504from Ch. 110, par. 15-1504
735 ILCS 5/15-1504.1
735 ILCS 5/15-1505.8 new
735 ILCS 5/15-1507.1
735 ILCS 5/15-1508from Ch. 110, par. 15-1508

Replaces everything after the enacting clause with provisions of the bill as amended by House Amendment No. 1 and adds other provisions as follows. Amends the Illinois Housing Development Act. Modifies the Abandoned Residential Municipality Relief Program to include counties and provides specific descriptions of rehabilitation activities. Provides that 75% of the money in the Abandoned Residential Property Municipality Relief Fund shall be paid by the Illinois Housing Authority to municipalities, other than Chicago, and to counties (instead of to municipalities other than Chicago). Amends the Criminal Code of 1961. In provisions creating the offense of criminal trespass to real property, adds that the offense includes the intentional removal of a notice posted on abandoned residential real estate, but also provides that a mortgagee or a mortgagee's agent is exempt from prosecution from criminal trespass for securing abandoned residential real estate and is not liable in a civil action for negligence or civil trespass. Amends the Code of Civil Procedure. Defines abandoned residential property as residential real estate that: is not occupied by any mortgagor or lawful occupant as a residence or contains a structure that is uninhabited and needs to be repaired; and has 2 or more (instead of one or more) of certain characteristics. In provisions concerning a notice of foreclosure, provides that a copy of the notice shall be sent to the municipality or county by specifying which public official (including the appropriate alderman in a city with a population in excess of 2,000,000) should receive the notice by first class mail. Provides for an expedited foreclosure procedure for abandoned residential property, including court hearings to determine if the property is abandoned, notices to the mortgagor and any occupants of the property, and corresponding modifications to the report of sale and confirmation of sale procedures. Modifies dates concerning time limits in 2013 and 2014 to reflect changes in federal law under the Making Home Affordable Program. Provides that a mortgagor or a lawful occupant may appear at the hearing with a non-attorney who may assist, but not represent, the occupant. In provisions concerning the filing fee for foreclosure prevention, states that if a plaintiff, together with its affiliates, has total assets greater than $10,000,000,000, the plaintiff shall pay an additional filing fee of $500. Prohibits assessment of the fee against a bank that, together with its affiliates, has total assets of $10,000,000,000 or less. Provides that the fees shall be expended according to a specified formula. Provides that the Abandoned Residential Property Municipality Fund and the Foreclosure Prevention Program Fund are not subject to sweeps, administrative charge-backs, or any other fiscal maneuver that would transfer any amounts from those funds into any other fund. In provisions concerning the expedited judgment and sale procedure for abandoned residential property, provides that the court may not grant a motion for an expedited judgment and sale if the mortgagor, an unknown owner, or a lawful occupant appears in the action before or at the hearing and objects to a finding of abandonment. In provisions concerning a report of sale and confirmation of sale, provides that a mortgagee that has filed a motion to expedite the judgment and sale shall complete and submit to the Department of Financial and Professional Regulation a report concerning motions to expedite the judgment and sale during the reporting period. In provisions concerning the judicial sale fee collected for the Abandoned Residential Property Municipality Relief Fund, sets the fee at $750 (instead of a calculated fee, not to exceed $300), if the purchaser is a mortgagee (instead of any purchaser, with exceptions for mortgagees) acquiring the residential real estate pursuant to its credit bid at the sale or any mortgagee, judgment creditor, or other lienor acquiring the residential real estate whose rights in and to the residential real estate arose prior to the sale, provided that the purchaser is the mortgagee, judgment creditor, or other lienor, and the purchaser, together with its affiliates, has total assets greater than $10,000,000,000. Prohibits assessment of the fee against a bank that, together with its affiliates, has total assets of $10,000,000,000 or less. In a provision concerning the judicial sale fee for the Abandoned Residential Property Municipality Relief Fund, deletes a provision making the fee inoperative on January 1, 2018 as well as the provision's March 2, 2018 repeal date. Makes other changes. Effective immediately.

 Correctional Note, House Floor Amendment No. 2 (Dept of Corrections)
 There are no penalty enhancements associated with SB 3522 (H-AM 2). The bill would have no fiscal or population impact on the Department.

 Judicial Note, House Floor Amendment No. 2 (Admin Office of the Illinois Courts)
 Based on a review of the bill it has been determined that there may be a minimal increase in judicial workloads. However, it is not anticipated that the bill would increase the number of judges needed in the State.

 Land Conveyance Appraisal Note, House Floor Amendment No. 2 (Dept. of Transportation)
 No land conveyances are included in this bill; therefore, there are no appraisals to be filed.

 Pension Note, House Floor Amendment No. 2 (Government Forecasting & Accountability)
 SB 3522 (H-AM 2) will not impact any public pension fund or retirement system in Illinois.

 Housing Affordability Impact Note, House Floor Amendment No. 2 (Housing Development Authority)
 It is not possible to compute the cost of constructing, purchasing, owning, or selling a single-family residence by funding these activities. The type and level of securing, rehabilitation, and demolition will vary between municipalities, as will the costs. It is also unclear if these costs will be passed on to the next homebuyer for several reasons: (1) Home with severely reduced values may be demolished, resulting in no subsequent homeowner: (2) Property values of foreclosed homes often significantly decline due to their location and/or condition such that there is insufficient value to induce anyone to purchase the home; (3) The benefit of stabilized property values achieved by proper and timely maintenance of foreclosed homes likely outweighs the amount of the fees contemplated in this bill.

 Fiscal Note, House Floor Amendment No. 2 (Housing Development Authority)
 The total, combined estimated immediate fiscal impact of SB 3522 (H-AM 2) to the Illinois Housing Development Authority will be $558,000.

 State Debt Impact Note, House Floor Amendment No. 2 (Government Forecasting & Accountability)
 SB 3522, as amended by House Amendment 2, would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.

Actions 
DateChamber Action
  2/8/2012SenateFiled with Secretary by Sen. Jacqueline Y. Collins
  2/8/2012SenateFirst Reading
  2/8/2012SenateReferred to Assignments
  2/22/2012SenateAssigned to Financial Institutions
  3/1/2012SenateDo Pass Financial Institutions; 009-000-000
  3/1/2012SenatePlaced on Calendar Order of 2nd Reading March 6, 2012
  3/8/2012SenateSecond Reading
  3/8/2012SenatePlaced on Calendar Order of 3rd Reading March 21, 2012
  3/14/2012SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. Jacqueline Y. Collins
  3/14/2012SenateSenate Floor Amendment No. 1 Referred to Assignments
  3/22/2012SenateSenate Floor Amendment No. 1 Assignments Refers to Financial Institutions
  3/27/2012SenateSenate Floor Amendment No. 1 Recommend Do Adopt Financial Institutions; 008-000-000
  3/28/2012SenateAdded as Co-Sponsor Sen. Mattie Hunter
  3/28/2012SenateSponsor Removed Sen. Mattie Hunter
  3/28/2012SenateAdded as Chief Co-Sponsor Sen. Iris Y. Martinez
  3/28/2012SenateRecalled to Second Reading
  3/28/2012SenateSenate Floor Amendment No. 1 Adopted; J. Collins
  3/28/2012SenatePlaced on Calendar Order of 3rd Reading
  3/28/2012SenateAdded as Chief Co-Sponsor Sen. Mattie Hunter
  3/28/2012SenateAdded as Co-Sponsor Sen. Pamela J. Althoff
  3/28/2012SenateThird Reading - Passed; 053-000-000
  3/29/2012HouseArrived in House
  3/29/2012HouseChief House Sponsor Rep. Lou Lang
  3/29/2012HousePlaced on Calendar Order of First Reading
  3/29/2012HouseFirst Reading
  3/29/2012HouseReferred to Rules Committee
  5/7/2012HouseCommittee Deadline Extended-Rule 9(b) May 18, 2012
  5/7/2012HouseAssigned to Judiciary I - Civil Law Committee
  5/17/2012HouseAlternate Chief Sponsor Changed to Rep. Elaine Nekritz
  5/17/2012HouseAdded Alternate Chief Co-Sponsor Rep. Lou Lang
  5/17/2012HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Elaine Nekritz
  5/17/2012HouseHouse Committee Amendment No. 1 Referred to Rules Committee
  5/17/2012HouseAlternate Chief Co-Sponsor Removed Rep. Lou Lang
  5/18/2012HouseFinal Action Deadline Extended-9(b) May 29, 2012
  5/21/2012HouseHouse Committee Amendment No. 1 Rules Refers to Judiciary I - Civil Law Committee
  5/22/2012HouseHouse Committee Amendment No. 1 Adopted in Judiciary I - Civil Law Committee; by Voice Vote
  5/22/2012HouseDo Pass as Amended / Short Debate Judiciary I - Civil Law Committee; 010-000-000
  5/23/2012HousePlaced on Calendar 2nd Reading - Short Debate
  5/23/2012HouseSecond Reading - Short Debate
  5/23/2012HouseHeld on Calendar Order of Second Reading - Short Debate
  5/24/2012HouseAdded Alternate Chief Co-Sponsor Rep. Al Riley
  5/29/2012HouseFinal Action Deadline Extended-9(b) May 31, 2012
  5/29/2012HouseAlternate Chief Sponsor Changed to Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Filed with Clerk by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Referred to Rules Committee
  5/30/2012HouseHouse Floor Amendment No. 2 Rules Refers to Judiciary I - Civil Law Committee
  5/30/2012HouseAdded Alternate Chief Co-Sponsor Rep. Luis Arroyo
  5/30/2012HouseAdded Alternate Chief Co-Sponsor Rep. André M. Thapedi
  5/30/2012HouseAdded Alternate Chief Co-Sponsor Rep. Kelly M. Cassidy
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. La Shawn K. Ford
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Deborah Mell
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Kimberly du Buclet
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Cynthia Soto
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Elizabeth Hernandez
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Daniel Biss
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Camille Y. Lilly
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Maria Antonia Berrios
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Sara Feigenholtz
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Edward J. Acevedo
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Kenneth Dunkin
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Jehan A. Gordon
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Constance A. Howard
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Michael J. Zalewski
  5/30/2012HouseAdded Alternate Co-Sponsor Rep. Barbara Flynn Currie
  5/30/2012HouseHouse Committee Amendment No. 1 Fiscal Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 State Mandates Fiscal Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 Balanced Budget Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 Correctional Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 Home Rule Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 Housing Affordability Impact Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 Judicial Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 Land Conveyance Appraisal Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 Pension Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Committee Amendment No. 1 State Debt Impact Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Fiscal Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 State Mandates Fiscal Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Balanced Budget Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Correctional Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Home Rule Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Housing Affordability Impact Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Judicial Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Land Conveyance Appraisal Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Pension Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 State Debt Impact Note Requested as Amended by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 2 Recommends Be Adopted Judiciary I - Civil Law Committee; 007-003-000
  5/30/2012HouseHouse Floor Amendment No. 3 Filed with Clerk by Rep. Karen A. Yarbrough
  5/30/2012HouseHouse Floor Amendment No. 3 Referred to Rules Committee
  5/31/2012HouseHouse Floor Amendment No. 2 Correctional Note Filed as Amended
  5/31/2012HouseHouse Floor Amendment No. 3 Recommends Be Adopted Rules Committee; 005-000-000
  5/31/2012HouseHouse Floor Amendment No. 2 Judicial Note Filed as Amended
  5/31/2012SenateSponsor Removed Sen. Pamela J. Althoff
  5/31/2012HouseHouse Floor Amendment No. 2 Land Conveyance Appraisal Note Filed as Amended
  5/31/2012HouseHouse Floor Amendment No. 2 Pension Note Filed as Amended
  5/31/2012HouseHouse Floor Amendment No. 2 Housing Affordability Impact Note Filed as Amended
  5/31/2012HouseHouse Floor Amendment No. 2 Fiscal Note Filed as Amended
  5/31/2012HouseHouse Floor Amendment No. 2 State Debt Impact Note Filed as Amended
  5/31/2012SenateAdded as Chief Co-Sponsor Sen. Kimberly A. Lightford
  5/31/2012HouseHouse Committee Amendment No. 1 Fiscal Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 State Mandates Fiscal Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 Balanced Budget Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 Correctional Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 Home Rule Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 Housing Affordability Impact Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 Judicial Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 Land Conveyance Appraisal Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 Pension Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Committee Amendment No. 1 State Debt Impact Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Floor Amendment No. 2 State Mandates Fiscal Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Floor Amendment No. 2 Balanced Budget Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Floor Amendment No. 2 Home Rule Note Requested as Amended - Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HouseHouse Floor Amendment No. 2 Adopted by Voice Vote
  5/31/2012HouseHouse Floor Amendment No. 3 Withdrawn by Rep. Karen A. Yarbrough
  5/31/2012HousePlaced on Calendar Order of 3rd Reading - Short Debate
  5/31/2012HouseThird Reading - Short Debate - Passed 067-048-002
  5/31/2012SenateSecretary's Desk - Concurrence House Amendment(s) 1, 2
  5/31/2012SenatePlaced on Calendar Order of Concurrence House Amendment(s) 1, 2 - May 31, 2012
  5/31/2012SenateHouse Committee Amendment No. 1 Motion to Concur Filed with Secretary Sen. Jacqueline Y. Collins
  5/31/2012SenateHouse Committee Amendment No. 1 Motion to Concur Referred to Assignments
  5/31/2012SenateHouse Floor Amendment No. 2 Motion to Concur Filed with Secretary Sen. Jacqueline Y. Collins
  5/31/2012SenateHouse Floor Amendment No. 2 Motion to Concur Referred to Assignments
  5/31/2012SenateHouse Committee Amendment No. 1 Motion to Concur Assignments Referred to Financial Institutions
  5/31/2012SenateHouse Floor Amendment No. 2 Motion to Concur Assignments Referred to Financial Institutions
  5/31/2012SenateHouse Committee Amendment No. 1 Motion To Concur Recommended Do Adopt Financial Institutions; 007-005-000
  5/31/2012SenateHouse Floor Amendment No. 2 Motion To Concur Recommended Do Adopt Financial Institutions; 007-005-000
  7/1/2012SenatePursuant to Senate Rule 3-9(b) / Referred to Assignments
  7/1/2012SenateHouse Committee Amendment No. 1 Motion to Concur Referred to Assignments; Pursuant to Senate Rule 3-9(b).
  7/1/2012SenateHouse Floor Amendment No. 2 Motion to Concur Referred to Assignments; Pursuant to Senate Rule 3-9(b).
  1/8/2013SenateSession Sine Die

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