HB6411ham001 96TH GENERAL ASSEMBLY

Rep. Jack McGuire

Filed: 3/23/2010

09600HB6411ham001 LRB096 21039 RPM 39510 a

AMENDMENT TO HOUSE BILL 6411

AMENDMENT NO. ______. Amend House Bill 6411 by replacing everything after the enacting clause with the following:

"Section 5. The Mortgage Escrow Account Act is amended by adding Section 20 as follows:

(765 ILCS 910/20 new)

Sec. 20. Notice of transfer of mortgage escrow account.

(a) A mortgage lender who acquires an escrow account through assignment, sale, or transfer shall notify the borrower of any such assignment, sale, or transfer.

(b) The notice required under this Section shall comport with the following provisions concerning timing:

(1) The mortgage lender who acquires the escrow account shall notify the borrower not less than 15 days after the effective date of the assignment, sale, or transfer of the escrow account.

(2) The notice required under subsection (a) of this Section shall be made to the borrower not more than 30 days after the effective date of the assignment, sale, or transfer of the mortgage account in any case in which the assignment, sale, or transfer of the mortgage account was preceded by:

(i) termination of the contract for servicing the loan, including maintaining the escrow account, for cause;

(ii) commencement of bankruptcy proceedings of the mortgage lender; or

(iii) commencement of proceedings by the Federal Deposit Insurance Corporation for receivership of the mortgage lender or any entity that owns or controls the mortgage lender.

(c) The notice required under this Section shall include the following information:

(1) the effective date of assignment, sale, or transfer of the escrow account;

(2) the name, address, website, fax number, and toll-free or collect-call telephone number of the mortgage lender who is acquiring the escrow account;

(3) the name of and a toll-free or collect-call number for an individual employed by, or a department within, the transferring mortgage lender that can be contacted by the borrower to answer inquiries relating to the assignment, sale, or transfer of the mortgage account;

(4) the name of and toll-free or collect-call telephone number for an individual employed by, or a department within, the mortgage lender that is acquiring the escrow account that can be contacted by the borrower to answer inquiries related to the assignment, sale, or transfer of the mortgage account;

(5) the date on which the mortgage lender who holds the escrow account before the assignment, sale, or transfer will cease to accept payments relating to the escrow account and the date on which the mortgage lender who is acquiring the escrow account will begin to accept such payments; and

(6) the number of the toll-free consumer hotline maintained by the Division of Banking of the Department of Financial and Professional Regulation.

(d) The notice required under this Section shall be sent by first class mail in an envelope that is marked with the following statement, in 12-point, bold-faced font: "ENCLOSED IS AN IMPORTANT NOTICE REGARDING YOUR MORTGAGE ESCROW ACCOUNT WITH (insert name of the transferring mortgage lender).".

(e) The provisions of this Section shall not apply to any assignment, sale, or transfer of a mortgage account if the mortgage lender who makes the loan provides to the borrower, at settlement, written notice of the assignment, sale, or transfer.

(f) A mortgage lender who violates this Section is guilty of a business offense and, upon conviction, shall be fined not more than $1,000 for each offense.".