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| | 97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1018 Introduced 01/31/11, by Rep. Michael J. Madigan SYNOPSIS AS INTRODUCED:
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Amends the High Risk Home Loan Act. Makes a technical change in a Section
concerning the prohibition on certain home loans.
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| | A BILL FOR |
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| | HB1018 | | LRB097 03838 AEK 43876 b |
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| 1 | | AN ACT concerning business.
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| 2 | | Be it enacted by the People of the State of Illinois, |
| 3 | | represented in the General Assembly:
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| 4 | | Section 5. The High Risk Home Loan Act is amended by |
| 5 | | changing Section 15 as follows:
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| 6 | | (815 ILCS 137/15)
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| 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
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| 9 | | the creditor or broker does not believe at the
time the loan
is
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| 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
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| 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
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| 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.)
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