Full Text of SB1998 95th General Assembly
SB1998sam001 95TH GENERAL ASSEMBLY
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Sen. Jacqueline Y. Collins
Filed: 4/2/2008
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| AMENDMENT TO SENATE BILL 1998
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| AMENDMENT NO. ______. Amend Senate Bill 1998 on page 1, | 3 |
| line 8, by replacing "Section 1-1.5" with "Sections 1-1.5 and | 4 |
| 5-20 and Article VIII"; and | 5 |
| on page 17, immediately below line 16, by inserting the | 6 |
| following: | 7 |
| " (jj) "HUD-approved housing counselor" means a counselor | 8 |
| employed by a housing counseling agency approved by the United | 9 |
| States Department of Housing and Urban Development. "; and
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| on page 70, immediately below line 21, by inserting the | 11 |
| following: | 12 |
| "(205 ILCS 635/5-20 new)
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| Sec. 5-20. Counseling prior to perfecting foreclosure | 14 |
| proceedings. | 15 |
| (a) If a mortgage loan becomes delinquent by more than 30 |
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| days, the servicer shall send a notice advising the borrower | 2 |
| that he or she may wish to seek HUD-approved housing | 3 |
| counseling. | 4 |
| (b) The notice required in subsection (a) of this Section | 5 |
| shall state the date on which the notice was mailed and state | 6 |
| the following in 14-point type: | 7 |
| "YOUR LOAN IS OR WAS MORE THAN 30 DAYS PAST DUE. YOU MAY BE | 8 |
| EXPERIENCING FINANCIAL DIFFICULTY. IT MAY BE IN YOUR BEST | 9 |
| INTEREST TO SEEK HUD-APPROVED HOUSING COUNSELING. YOU HAVE A | 10 |
| GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS FORM TO OBTAIN A | 11 |
| HUD-APPROVED HOUSING COUNSELOR. DURING THE GRACE PERIOD, THE | 12 |
| LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU. A | 13 |
| LIST OF HUD-APPROVED HOUSING COUNSELORS MAY BE OBTAINED FROM | 14 |
| THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR FROM | 15 |
| THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL | 16 |
| REGULATION." | 17 |
| No language, other than the language prescribed in this | 18 |
| subsection (b), shall be included in the notice. | 19 |
| (c) Upon mailing the notice provided for under subsection | 20 |
| (b), the lender, servicer, or lender's agent shall not | 21 |
| institute legal action under Part 15 of Article XV of the Code | 22 |
| of Civil Procedure for 30 days. Only one 30-day period of | 23 |
| forbearance is allowed under this subsection (c) per subject | 24 |
| loan. | 25 |
| (d) If, within the 30-day period provided under subsection | 26 |
| (c) of this Section, a HUD-approved housing counselor notifies |
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| the lender, servicer, or lender's agent that the borrower is | 2 |
| seeking HUD-approved housing counseling, then the lender, | 3 |
| servicer, or lender's agent shall not institute legal action | 4 |
| under Part 15 of Article XV of the Code of Civil Procedure for | 5 |
| 30 days after the date of that notice. During the 30-period | 6 |
| provided under this subsection (d), the lender, servicer, or | 7 |
| lender's agent shall attempt to agree to a debt management plan | 8 |
| with the borrower. If the lender, servicer, or lender's agent | 9 |
| and the borrower agree to a debt management plan, then the | 10 |
| lender, servicer, or lender's agent shall not institute legal | 11 |
| action under Part 15 of Article XV of the Code of Civil | 12 |
| Procedure for as long as the debt management plan is complied | 13 |
| with by the borrower. | 14 |
| The agreed debt management plan must be in writing and | 15 |
| signed by the lender, servicer, or lender's agent, the | 16 |
| HUD-approved housing counselor, and the borrower. No | 17 |
| modification of an approved debt management plan can be made | 18 |
| without the mutual agreement of the lender, servicer, or | 19 |
| lender's agent, the HUD-approved housing counselor, and the | 20 |
| borrower. | 21 |
| Upon written notice to the lender, servicer, or lender's | 22 |
| agent, the borrower may change HUD-approved housing | 23 |
| counselors. | 24 |
| (e) If the borrower fails to comply with the agreed debt | 25 |
| management plan, then nothing in this Section shall be | 26 |
| construed to impair the legal right of the lender, servicer, or |
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| lender's agent to enforce the contract. "; and | 2 |
| on page 71, immediately below line 23, by inserting the | 3 |
| following: | 4 |
| "(205 ILCS 635/Art. VIII heading new)
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| ARTICLE VIII. SERVICER REPORTING | 6 |
| (205 ILCS 635/8-1 new)
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| Sec. 8-1. Servicer reporting; requirements. A licensee | 8 |
| acting as a servicer shall compile and submit to the Secretary | 9 |
| on or before the twentieth business day of each month a report | 10 |
| on a form required by the Secretary that contains all of | 11 |
| following information for the preceding month, or as otherwise | 12 |
| indicated: | 13 |
| (1) The number of mortgage loans the licensee is | 14 |
| servicing. | 15 |
| (2) The number of mortgage loans that the licensee is | 16 |
| servicing that are in payment default and a breakdown of | 17 |
| these mortgage loans by length of payment delinquency | 18 |
| including 30-day, 60-day, and 90-day and greater | 19 |
| delinquencies. | 20 |
| (3) Information on loss mitigation activities | 21 |
| undertaken, including, but not limited to, the following: | 22 |
| (A) the number and identification of mortgage | 23 |
| loans that were refinanced into more affordable or |
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| fixed mortgage loans; | 2 |
| (B)the number and identification of mortgage loans | 3 |
| for which the homeowner has sought credit or housing | 4 |
| counseling, if known; | 5 |
| (C) the number of workout arrangements entered | 6 |
| into by the licensee in connection with mortgage loans; | 7 |
| (D) a description of the types of workout | 8 |
| arrangements, including mortgage loan modifications, | 9 |
| and the percentage of each type of workout arrangement | 10 |
| entered into; and | 11 |
| (E) the proactive steps taken by the licensee to | 12 |
| identify borrowers at a heightened risk of default, | 13 |
| such as those with impending interest rate resets, | 14 |
| including, but not limited to, contacts with borrowers | 15 |
| to assess their ability to repay their mortgage loan | 16 |
| obligations. | 17 |
| (4) The number of foreclosure actions commenced in this | 18 |
| State in connection with mortgage loans it is servicing. | 19 |
| (5) Information regarding the types and volume of | 20 |
| adjustable rate mortgage loans that the licensee is | 21 |
| servicing. | 22 |
| (6) Any other information that the Secretary may deem | 23 |
| necessary, including geographic information regarding | 24 |
| applicable mortgage loans. | 25 |
| (205 ILCS 635/8-2 new)
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| Sec. 8-2. Public review of reports. The Secretary may | 2 |
| publish, for public review, the report, or any information | 3 |
| contained in the report, required under Section 8-1 of this | 4 |
| Act, except personally-identifying information regarding | 5 |
| borrowers. | 6 |
| (205 ILCS 635/8-3 new)
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| Sec. 8-3. Repeal. This Article is repealed on December 31, | 8 |
| 2010. ".
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