HB2717 EnrolledLRB103 30866 LNS 57379 b

1    AN ACT concerning civil law.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Mortgage Escrow Account Act is amended by
5changing Sections 5 and 7 as follows:
 
6    (765 ILCS 910/5)  (from Ch. 17, par. 4905)
7    Sec. 5. (a) When the mortgage is reduced to 65% of its
8original amount by payments of the borrower, timely made
9according to the provisions of the loan agreement secured by
10the mortgage, and the borrower is otherwise not in default on
11the loan agreement, the mortgage lender must notify the
12borrower that he may terminate such escrow account or that he
13may elect to continue it until he requests a termination
14thereof, or until the mortgage is paid in full, whichever
15occurs first.
16    (b) Notwithstanding the requirements in subsection (a), a
17mortgage lender that complies with the escrow account
18requirements in Title 12 CFR Part 1026, as amended, for a
19mortgage loan that is a higher-priced mortgage loan, as
20defined in Title 12 CFR Part 1026, as amended, is deemed to be
21in compliance with subsection (a).
22(Source: P.A. 79-625.)
 

 

 

HB2717 Enrolled- 2 -LRB103 30866 LNS 57379 b

1    (765 ILCS 910/7)  (from Ch. 17, par. 4907)
2    Sec. 7. The borrower shall not have the right to terminate
3any such arrangement under Section 5 in conjunction with
4mortgages insured, guaranteed, supplemented, or assisted by
5the State of Illinois or the federal government that require
6an escrow arrangement for their continuation. The borrower
7shall not have the right to terminate any such arrangement
8under Section 5 in conjunction with a mortgage loan that is a
9higher-priced mortgage loan as defined in Title 12 CFR Part
101026, as amended, unless the borrower has met all of the
11conditions for cancellation of an escrow account for a
12higher-priced mortgage loan in Title 12 CFR Part 1026, as
13amended.
14(Source: P.A. 79-625.)
 
15    Section 99. Effective date. This Act takes effect upon
16becoming law.