Illinois General Assembly - Full Text of SB3551
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Full Text of SB3551  103rd General Assembly

SB3551 103RD GENERAL ASSEMBLY

 


 
103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3551

 

Introduced 2/9/2024, by Sen. Sara Feigenholtz

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 635/1-4
205 ILCS 635/5-12.5 new
765 ILCS 77/72
765 ILCS 77/73

    Amends the Residential Mortgage License Act of 1987. Provides that, prior to taking any legally binding action on a shared appreciation agreement, the borrower or borrowers shall be provided specified counseling regardless of the county in which the property is located. Provides that the borrower may not waive counseling. Provides that the Secretary of Financial and Professional Regulation may adopt rules relating to shared appreciation agreements. Defines "shared appreciation agreement", and includes shared appreciation agreements within the definition of "Mortgage loan", "residential mortgage loan", or "home mortgage loan". Amends the Residential Real Property Disclosure Act. Provides that, for each loan for which the originator takes an application, the broker or originator must submit for inclusion in the predatory lending database whether the borrower has entered into a shared appreciation agreement. Provides that a borrower or borrowers subject to specified provisions shall be recommended for counseling if the Department of Financial and Professional Regulation finds the borrower or borrowers are all first-time homebuyers or refinancing a primary residence and the loan is a mortgage that includes a shared appreciation agreement. Effective immediately.


LRB103 37488 RTM 67611 b

 

 

A BILL FOR

 

SB3551LRB103 37488 RTM 67611 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Residential Mortgage License Act of 1987 is
5amended by changing Section 1-4 and by adding Section 5-12.5
6as follows:
 
7    (205 ILCS 635/1-4)
8    Sec. 1-4. Definitions. The following words and phrases
9have the meanings given to them in this Section:
10    (a) "Residential real property" or "residential real
11estate" shall mean any real property located in Illinois, upon
12which is constructed or intended to be constructed a dwelling.
13Those terms include a manufactured home as defined in
14subdivision (53) of Section 9-102 of the Uniform Commercial
15Code which is real property as defined in Section 5-35 of the
16Conveyance and Encumbrance of Manufactured Homes as Real
17Property and Severance Act.
18    (b) "Making a residential mortgage loan" or "funding a
19residential mortgage loan" shall mean for compensation or
20gain, either directly or indirectly, advancing funds or making
21a commitment to advance funds to a loan applicant for a
22residential mortgage loan.
23    (c) "Soliciting, processing, placing, or negotiating a

 

 

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1residential mortgage loan" shall mean for compensation or
2gain, either directly or indirectly, accepting or offering to
3accept an application for a residential mortgage loan,
4assisting or offering to assist in the processing of an
5application for a residential mortgage loan on behalf of a
6borrower, or negotiating or offering to negotiate the terms or
7conditions of a residential mortgage loan with a lender on
8behalf of a borrower including, but not limited to, the
9submission of credit packages for the approval of lenders, the
10preparation of residential mortgage loan closing documents,
11including a closing in the name of a broker.
12    (d) "Exempt person or entity" shall mean the following:
13        (1) (i) Any banking organization or foreign banking
14    corporation licensed by the Illinois Commissioner of Banks
15    and Real Estate or the United States Comptroller of the
16    Currency to transact business in this State; (ii) any
17    national bank, federally chartered savings and loan
18    association, federal savings bank, federal credit union;
19    (iii) (blank); (iv) any bank, savings and loan
20    association, savings bank, or credit union organized under
21    the laws of this or any other state; (v) any Illinois
22    Consumer Installment Loan Act licensee; (vi) any insurance
23    company authorized to transact business in this State;
24    (vii) any entity engaged solely in commercial mortgage
25    lending; (viii) any service corporation of a savings and
26    loan association or savings bank organized under the laws

 

 

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1    of this State or the service corporation of a federally
2    chartered savings and loan association or savings bank
3    having its principal place of business in this State,
4    other than a service corporation licensed or entitled to
5    reciprocity under the Real Estate License Act of 2000; or
6    (ix) any first tier subsidiary of a bank, the charter of
7    which is issued under the Illinois Banking Act by the
8    Illinois Commissioner of Banks and Real Estate, or the
9    first tier subsidiary of a bank chartered by the United
10    States Comptroller of the Currency and that has its
11    principal place of business in this State, provided that
12    the first tier subsidiary is regularly examined by the
13    Illinois Commissioner of Banks and Real Estate or the
14    Comptroller of the Currency, or a consumer compliance
15    examination is regularly conducted by the Federal Reserve
16    Board.
17        (1.5) Any employee of a person or entity mentioned in
18    item (1) of this subsection, when acting for such person
19    or entity, or any registered mortgage loan originator when
20    acting for an entity described in subsection (tt) of this
21    Section.
22        (1.8) Any person or entity that does not originate
23    mortgage loans in the ordinary course of business, but
24    makes or acquires residential mortgage loans with his or
25    her own funds for his or her or its own investment without
26    intent to make, acquire, or resell more than 3 residential

 

 

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1    mortgage loans in any one calendar year.
2        (2) (Blank).
3        (2.1) A bona fide nonprofit organization.
4        (2.2) An employee of a bona fide nonprofit
5    organization when acting on behalf of that organization.
6        (3) Any person employed by a licensee to assist in the
7    performance of the residential mortgage licensee's
8    activities regulated by this Act who is compensated in any
9    manner by only one licensee.
10        (4) (Blank).
11        (5) Any individual, corporation, partnership, or other
12    entity that originates, services, or brokers residential
13    mortgage loans, as these activities are defined in this
14    Act, and who or which receives no compensation for those
15    activities, subject to the Commissioner's regulations and
16    the federal Secure and Fair Enforcement for Mortgage
17    Licensing Act of 2008 and the rules promulgated under that
18    Act with regard to the nature and amount of compensation.
19        (6) (Blank).
20        (7) Any entity engaged solely in providing loan
21    processing services through the sponsoring of individuals
22    acting pursuant to subsection (d) of Section 7-1A of this
23    Act.
24    (e) "Licensee" or "residential mortgage licensee" shall
25mean a person, partnership, association, corporation, or any
26other entity who or which is licensed pursuant to this Act to

 

 

SB3551- 5 -LRB103 37488 RTM 67611 b

1engage in the activities regulated by this Act.
2    (f) "Mortgage loan", "residential mortgage loan", or "home
3mortgage loan" shall mean any loan primarily for personal,
4family, or household use that is secured by a mortgage, deed of
5trust, or other equivalent consensual security interest on a
6dwelling as defined in Section 103(v) of the federal Truth in
7Lending Act, or residential real estate upon which is
8constructed or intended to be constructed a dwelling.
9"Mortgage loan", "residential mortgage loan", or "home
10mortgage loan" includes a loan in which funds are advanced
11through a shared appreciation agreement.
12    (g) "Lender" shall mean any person, partnership,
13association, corporation, or any other entity who either lends
14or invests money in residential mortgage loans.
15    (h) "Ultimate equitable owner" shall mean a person who,
16directly or indirectly, owns or controls an ownership interest
17in a corporation, foreign corporation, alien business
18organization, trust, or any other form of business
19organization regardless of whether the person owns or controls
20the ownership interest through one or more persons or one or
21more proxies, powers of attorney, nominees, corporations,
22associations, partnerships, trusts, joint stock companies, or
23other entities or devices, or any combination thereof.
24    (i) "Residential mortgage financing transaction" shall
25mean the negotiation, acquisition, sale, or arrangement for or
26the offer to negotiate, acquire, sell, or arrange for, a

 

 

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1residential mortgage loan or residential mortgage loan
2commitment.
3    (j) "Personal residence address" shall mean a street
4address and shall not include a post office box number.
5    (k) "Residential mortgage loan commitment" shall mean a
6contract for residential mortgage loan financing.
7    (l) "Party to a residential mortgage financing
8transaction" shall mean a borrower, lender, or loan broker in
9a residential mortgage financing transaction.
10    (m) "Payments" shall mean payment of all or any of the
11following: principal, interest and escrow reserves for taxes,
12insurance and other related reserves, and reimbursement for
13lender advances.
14    (n) "Commissioner" shall mean the Commissioner of Banks
15and Real Estate, except that, beginning on April 6, 2009 (the
16effective date of Public Act 95-1047), all references in this
17Act to the Commissioner of Banks and Real Estate are deemed, in
18appropriate contexts, to be references to the Secretary of
19Financial and Professional Regulation, or his or her designee,
20including the Director of the Division of Banking of the
21Department of Financial and Professional Regulation.
22    (n-1) "Director" shall mean the Director of the Division
23of Banking of the Department of Financial and Professional
24Regulation, except that, beginning on July 31, 2009 (the
25effective date of Public Act 96-112), all references in this
26Act to the Director are deemed, in appropriate contexts, to be

 

 

SB3551- 7 -LRB103 37488 RTM 67611 b

1the Secretary of Financial and Professional Regulation, or his
2or her designee, including the Director of the Division of
3Banking of the Department of Financial and Professional
4Regulation.
5    (o) "Loan brokering", "brokering", or "brokerage service"
6shall mean the act of helping to obtain from another entity,
7for a borrower, a loan secured by residential real estate
8situated in Illinois or assisting a borrower in obtaining a
9loan secured by residential real estate situated in Illinois
10in return for consideration to be paid by either the borrower
11or the lender including, but not limited to, contracting for
12the delivery of residential mortgage loans to a third party
13lender and soliciting, processing, placing, or negotiating
14residential mortgage loans.
15    (p) "Loan broker" or "broker" shall mean a person,
16partnership, association, corporation, or limited liability
17company, other than those persons, partnerships, associations,
18corporations, or limited liability companies exempted from
19licensing pursuant to Section 1-4, subsection (d), of this
20Act, who performs the activities described in subsections (c),
21(o), and (yy) of this Section.
22    (q) "Servicing" shall mean the collection or remittance
23for or the right or obligation to collect or remit for any
24lender, noteowner, noteholder, or for a licensee's own
25account, of payments, interests, principal, and trust items
26such as hazard insurance and taxes on a residential mortgage

 

 

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1loan in accordance with the terms of the residential mortgage
2loan; and includes loan payment follow-up, delinquency loan
3follow-up, loan analysis and any notifications to the borrower
4that are necessary to enable the borrower to keep the loan
5current and in good standing. "Servicing" includes management
6of third-party entities acting on behalf of a residential
7mortgage licensee for the collection of delinquent payments
8and the use by such third-party entities of said licensee's
9servicing records or information, including their use in
10foreclosure.
11    (r) "Full service office" shall mean an office, provided
12by the licensee and not subleased from the licensee's
13employees or independent contractors, and staff in Illinois
14reasonably adequate to handle efficiently communications,
15questions, and other matters relating to any application for,
16or an existing home mortgage secured by residential real
17estate situated in Illinois with respect to which the licensee
18is brokering, funding originating, purchasing, or servicing.
19The management and operation of each full service office must
20include observance of good business practices such as proper
21signage; adequate, organized, and accurate books and records;
22ample phone lines, hours of business, staff training and
23supervision, and provision for a mechanism to resolve consumer
24inquiries, complaints, and problems. The Commissioner shall
25issue regulations with regard to these requirements and shall
26include an evaluation of compliance with this Section in his

 

 

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1or her periodic examination of each licensee. "Full service
2office" does not include a remote location.
3    (s) "Purchasing" shall mean the purchase of conventional
4or government-insured mortgage loans secured by residential
5real estate situated in Illinois from either the lender or
6from the secondary market.
7    (t) "Borrower" shall mean the person or persons who seek
8the services of a loan broker, originator, or lender.
9    (u) "Originating" shall mean the issuing of commitments
10for and funding of residential mortgage loans.
11    (v) "Loan brokerage agreement" shall mean a written
12agreement in which a broker or loan broker agrees to do either
13of the following:
14        (1) obtain a residential mortgage loan for the
15    borrower or assist the borrower in obtaining a residential
16    mortgage loan; or
17        (2) consider making a residential mortgage loan to the
18    borrower.
19    (w) "Advertisement" shall mean the attempt by publication,
20dissemination, or circulation to induce, directly or
21indirectly, any person to enter into a residential mortgage
22loan agreement or residential mortgage loan brokerage
23agreement relative to a mortgage secured by residential real
24estate situated in Illinois.
25    (x) (Blank).
26    (y) "Government-insured mortgage loan" shall mean any

 

 

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1mortgage loan made on the security of residential real estate
2insured by the Department of Housing and Urban Development or
3Farmers Home Loan Administration, or guaranteed by the
4Veterans Administration.
5    (z) "Annual audit" shall mean a certified audit of the
6licensee's books and records and systems of internal control
7performed by a certified public accountant in accordance with
8generally accepted accounting principles and generally
9accepted auditing standards.
10    (aa) "Financial institution" shall mean a savings and loan
11association, savings bank, credit union, or a bank organized
12under the laws of Illinois or a savings and loan association,
13savings bank, credit union or a bank organized under the laws
14of the United States and headquartered in Illinois.
15    (bb) "Escrow agent" shall mean a third party, individual
16or entity charged with the fiduciary obligation for holding
17escrow funds on a residential mortgage loan pending final
18payout of those funds in accordance with the terms of the
19residential mortgage loan.
20    (cc) "Net worth" shall have the meaning ascribed thereto
21in Section 3-5 of this Act.
22    (dd) "Affiliate" shall mean:
23        (1) any entity that directly controls or is controlled
24    by the licensee and any other company that is directly
25    affecting activities regulated by this Act that is
26    controlled by the company that controls the licensee;

 

 

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1        (2) any entity:
2            (A) that is controlled, directly or indirectly, by
3        a trust or otherwise, by or for the benefit of
4        shareholders who beneficially or otherwise control,
5        directly or indirectly, by trust or otherwise, the
6        licensee or any company that controls the licensee; or
7            (B) a majority of the directors or trustees of
8        which constitute a majority of the persons holding any
9        such office with the licensee or any company that
10        controls the licensee;
11        (3) any company, including a real estate investment
12    trust, that is sponsored and advised on a contractual
13    basis by the licensee or any subsidiary or affiliate of
14    the licensee.
15    (ee) "First tier subsidiary" shall be defined by
16regulation incorporating the comparable definitions used by
17the Office of the Comptroller of the Currency and the Illinois
18Commissioner of Banks and Real Estate.
19    (ff) "Gross delinquency rate" means the quotient
20determined by dividing (1) the sum of (i) the number of
21government-insured residential mortgage loans funded or
22purchased by a licensee in the preceding calendar year that
23are delinquent and (ii) the number of conventional residential
24mortgage loans funded or purchased by the licensee in the
25preceding calendar year that are delinquent by (2) the sum of
26(i) the number of government-insured residential mortgage

 

 

SB3551- 12 -LRB103 37488 RTM 67611 b

1loans funded or purchased by the licensee in the preceding
2calendar year and (ii) the number of conventional residential
3mortgage loans funded or purchased by the licensee in the
4preceding calendar year.
5    (gg) "Delinquency rate factor" means the factor set by
6rule of the Commissioner that is multiplied by the average
7gross delinquency rate of licensees, determined annually for
8the immediately preceding calendar year, for the purpose of
9determining which licensees shall be examined by the
10Commissioner pursuant to subsection (b) of Section 4-8 of this
11Act.
12    (hh) (Blank).
13    (ii) "Confidential supervisory information" means any
14report of examination, visitation, or investigation prepared
15by the Commissioner under this Act, any report of examination
16visitation, or investigation prepared by the state regulatory
17authority of another state that examines a licensee, any
18document or record prepared or obtained in connection with or
19relating to any examination, visitation, or investigation, and
20any record prepared or obtained by the Commissioner to the
21extent that the record summarizes or contains information
22derived from any report, document, or record described in this
23subsection. "Confidential supervisory information" does not
24include any information or record routinely prepared by a
25licensee and maintained in the ordinary course of business or
26any information or record that is required to be made publicly

 

 

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1available pursuant to State or federal law or rule.
2    (jj) "Mortgage loan originator" means an individual who
3for compensation or gain or in the expectation of compensation
4or gain:
5        (i) takes a residential mortgage loan application; or
6        (ii) offers or negotiates terms of a residential
7    mortgage loan.
8    "Mortgage loan originator" includes an individual engaged
9in loan modification activities as defined in subsection (yy)
10of this Section. A mortgage loan originator engaged in loan
11modification activities shall report those activities to the
12Department of Financial and Professional Regulation in the
13manner provided by the Department; however, the Department
14shall not impose a fee for reporting, nor require any
15additional qualifications to engage in those activities beyond
16those provided pursuant to this Act for mortgage loan
17originators.
18    "Mortgage loan originator" does not include an individual
19engaged solely as a loan processor or underwriter except as
20otherwise provided in subsection (d) of Section 7-1A of this
21Act.
22    "Mortgage loan originator" does not include a person or
23entity that only performs real estate brokerage activities and
24is licensed in accordance with the Real Estate License Act of
252000, unless the person or entity is compensated by a lender, a
26mortgage broker, or other mortgage loan originator, or by any

 

 

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1agent of that lender, mortgage broker, or other mortgage loan
2originator.
3    "Mortgage loan originator" does not include a person or
4entity solely involved in extensions of credit relating to
5timeshare plans, as that term is defined in Section 101(53D)
6of Title 11, United States Code.
7    (kk) "Depository institution" has the same meaning as in
8Section 3 of the Federal Deposit Insurance Act, and includes
9any credit union.
10    (ll) "Dwelling" means a residential structure or mobile
11home which contains one to 4 family housing units, or
12individual units of condominiums or cooperatives.
13    (mm) "Immediate family member" means a spouse, child,
14sibling, parent, grandparent, or grandchild, and includes
15step-parents, step-children, step-siblings, or adoptive
16relationships.
17    (nn) "Individual" means a natural person.
18    (oo) "Loan processor or underwriter" means an individual
19who performs clerical or support duties as an employee at the
20direction of and subject to the supervision and instruction of
21a person licensed, or exempt from licensing, under this Act.
22"Clerical or support duties" includes subsequent to the
23receipt of an application:
24        (i) the receipt, collection, distribution, and
25    analysis of information common for the processing or
26    underwriting of a residential mortgage loan; and

 

 

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1        (ii) communicating with a consumer to obtain the
2    information necessary for the processing or underwriting
3    of a loan, to the extent that the communication does not
4    include offering or negotiating loan rates or terms, or
5    counseling consumers about residential mortgage loan rates
6    or terms. An individual engaging solely in loan processor
7    or underwriter activities shall not represent to the
8    public, through advertising or other means of
9    communicating or providing information, including the use
10    of business cards, stationery, brochures, signs, rate
11    lists, or other promotional items, that the individual can
12    or will perform any of the activities of a mortgage loan
13    originator.
14    (pp) "Nationwide Multistate Licensing System and Registry"
15means a mortgage licensing system developed and maintained by
16the Conference of State Bank Supervisors and the American
17Association of Residential Mortgage Regulators for the
18licensing and registration of licensed mortgage loan
19originators.
20    (qq) "Nontraditional mortgage product" means any mortgage
21product other than a 30-year fixed rate mortgage.
22    (rr) "Person" means a natural person, corporation,
23company, limited liability company, partnership, or
24association.
25    (ss) "Real estate brokerage activity" means any activity
26that involves offering or providing real estate brokerage

 

 

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1services to the public, including:
2        (1) acting as a real estate agent or real estate
3    broker for a buyer, seller, lessor, or lessee of real
4    property;
5        (2) bringing together parties interested in the sale,
6    purchase, lease, rental, or exchange of real property;
7        (3) negotiating, on behalf of any party, any portion
8    of a contract relating to the sale, purchase, lease,
9    rental, or exchange of real property, other than in
10    connection with providing financing with respect to any
11    such transaction;
12        (4) engaging in any activity for which a person
13    engaged in the activity is required to be registered or
14    licensed as a real estate agent or real estate broker
15    under any applicable law; or
16        (5) offering to engage in any activity, or act in any
17    capacity, described in this subsection (ss).
18    (tt) "Registered mortgage loan originator" means any
19individual that:
20        (1) meets the definition of mortgage loan originator
21    and is an employee of:
22            (A) a depository institution;
23            (B) a subsidiary that is:
24                (i) owned and controlled by a depository
25            institution; and
26                (ii) regulated by a federal banking agency; or

 

 

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1            (C) an institution regulated by the Farm Credit
2        Administration; and
3        (2) is registered with, and maintains a unique
4    identifier through, the Nationwide Multistate Licensing
5    System and Registry.
6    (uu) "Unique identifier" means a number or other
7identifier assigned by protocols established by the Nationwide
8Multistate Licensing System and Registry.
9    (vv) "Residential mortgage license" means a license issued
10pursuant to Section 1-3, 2-2, or 2-6 of this Act.
11    (ww) "Mortgage loan originator license" means a license
12issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.
13    (xx) "Secretary" means the Secretary of the Department of
14Financial and Professional Regulation, or a person authorized
15by the Secretary or by this Act to act in the Secretary's
16stead.
17    (yy) "Loan modification" means, for compensation or gain,
18either directly or indirectly offering or negotiating on
19behalf of a borrower or homeowner to adjust the terms of a
20residential mortgage loan in a manner not provided for in the
21original or previously modified mortgage loan.
22    (zz) "Short sale facilitation" means, for compensation or
23gain, either directly or indirectly offering or negotiating on
24behalf of a borrower or homeowner to facilitate the sale of
25residential real estate subject to one or more residential
26mortgage loans or debts constituting liens on the property in

 

 

SB3551- 18 -LRB103 37488 RTM 67611 b

1which the proceeds from selling the residential real estate
2will fall short of the amount owed and the lien holders are
3contacted to agree to release their lien on the residential
4real estate and accept less than the full amount owed on the
5debt.
6    (aaa) "Bona fide nonprofit organization" means an
7organization that is described in Section 501(c)(3) of the
8Internal Revenue Code, is exempt from federal income tax under
9Section 501(a) of the Internal Revenue Code, does not operate
10in a commercial context, and does all of the following:
11        (1) Promotes affordable housing or provides home
12    ownership education or similar services.
13        (2) Conducts its activities in a manner that serves
14    public or charitable purposes.
15        (3) Receives funding and revenue and charges fees in a
16    manner that does not create an incentive for itself or its
17    employees to act other than in the best interests of its
18    clients.
19        (4) Compensates its employees in a manner that does
20    not create an incentive for its employees to act other
21    than in the best interests of its clients.
22        (5) Provides to, or identifies for, the borrower
23    residential mortgage loans with terms favorable to the
24    borrower and comparable to residential mortgage loans and
25    housing assistance provided under government housing
26    assistance programs.

 

 

SB3551- 19 -LRB103 37488 RTM 67611 b

1    (bbb) "Remote location" means a location other than a
2principal place of business or a full service office at which a
3mortgage loan originator of a licensee may conduct business.
4    (ccc) "Shared appreciation agreement" means a writing
5evidencing a transaction or any option, future, or any other
6derivative between a person and a consumer where the consumer
7receives money or any other item of value in exchange for an
8interest or future interest in a dwelling or residential real
9estate or a future obligation to repay a sum on the occurrence
10of an event, such as:
11        (1) the transfer of ownership;
12        (2) a repayment maturity date;
13        (3) the death of the consumer; or
14        (4) any other event contemplated by the writing.
15    The Commissioner may define by rule and regulation any
16terms used in this Act for the efficient and clear
17administration of this Act.
18(Source: P.A. 103-156, eff. 1-1-24.)
 
19    (205 ILCS 635/5-12.5 new)
20    Sec. 5-12.5. Shared appreciation agreement consumer
21counseling and disclosures.
22    (a) Notwithstanding any provision in this Act to the
23contrary, prior to taking any legally binding action on a
24shared appreciation agreement, the borrower or borrowers shall
25be provided counseling, as that term is defined in Section 70

 

 

SB3551- 20 -LRB103 37488 RTM 67611 b

1of the Residential Real Property Disclosure Act, regardless of
2the county in which the property is located. The borrower may
3not waive counseling.
4    (b) The Secretary may adopt rules relating to shared
5appreciation agreements, including, but not limited to, rules
6defining statutory terms; relating to disclosures to help
7consumers understand the cost, duration, and fees of the
8agreement, as well as potential alternatives; on the limits on
9the interest or other fees that may be charged to a borrower;
10and relating to counseling under subsection (a).
 
11    Section 10. The Residential Real Property Disclosure Act
12is amended by changing Sections 72 and 73 as follows:
 
13    (765 ILCS 77/72)
14    Sec. 72. Originator; required information. As part of the
15predatory lending database program, the broker or originator
16must submit all of the following information for inclusion in
17the predatory lending database for each loan for which the
18originator takes an application:
19        (1) The borrower's name, address, social security
20    number or taxpayer identification number, date of birth,
21    and income and expense information, including total
22    monthly consumer debt, contained in the mortgage
23    application.
24        (2) The address and a description of the collateral

 

 

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1    and information about the loan or loans being applied for
2    and the loan terms, including the amount of the loan, the
3    rate and whether the rate is fixed or adjustable,
4    amortization or loan period terms, and any other material
5    terms.
6        (3) The borrower's credit score at the time of
7    application.
8        (4) Information about the originator and the company
9    the originator works for, including the originator's
10    license number and address, fees being charged, whether
11    the fees are being charged as points up front, the yield
12    spread premium payable outside closing, and other charges
13    made or remuneration required by the broker or originator
14    or its affiliates or the broker's or originator's employer
15    or its affiliates for the mortgage loans.
16        (5) (Blank).
17        (6) All information indicated in connection with the
18    TILA-RESPA Integrated Loan Estimate Disclosure or on the
19    Good Faith Estimate and Truth in Lending statement
20    disclosures given to the borrower by the broker or
21    originator.
22        (7) Annual real estate taxes for the property,
23    together with any assessments payable in connection with
24    the property to be secured by the collateral and the
25    proposed monthly principal and interest charge of all
26    loans to be taken by the borrower and secured by the

 

 

SB3551- 22 -LRB103 37488 RTM 67611 b

1    property of the borrower.
2        (8) Information concerning how the broker or
3    originator obtained the client and the name of its
4    referral source, if any.
5        (9) Information concerning the notices provided by the
6    broker or originator to the borrower as required by law
7    and the date those notices were given.
8        (10) Information concerning whether a sale and
9    leaseback is contemplated and the names of the lessor and
10    lessee, seller, and purchaser.
11        (11) Any and all financing by the borrower for the
12    subject property within 12 months prior to the date of
13    application.
14        (12) Loan information, including interest rate, term,
15    purchase price, down payment, and closing costs.
16        (13) Whether the buyer is a first-time homebuyer or
17    refinancing a primary residence.
18        (14) Whether the loan permits interest only payments.
19        (15) Whether the loan may result in negative
20    amortization.
21        (16) Whether the total points and fees payable by the
22    borrowers at or before closing will exceed 5%.
23        (17) Whether the loan includes a prepayment penalty,
24    and, if so, the terms of the penalty.
25        (18) Whether the loan is an ARM.
26        (19) Whether the borrower has entered into a shared

 

 

SB3551- 23 -LRB103 37488 RTM 67611 b

1    appreciation agreement as defined in Section 1-4 of the
2    Residential Mortgage License Act of 1987.
3    All information entered into the predatory lending
4database must be true and correct to the best of the
5originator's knowledge. The originator shall, prior to
6closing, correct, update, or amend the data as necessary. If
7any corrections become necessary after the file has been
8accessed by the closing agent or housing counselor, a new file
9must be entered.
10(Source: P.A. 100-509, eff. 9-15-17.)
 
11    (765 ILCS 77/73)
12    Sec. 73. Standards for counseling. A borrower or borrowers
13subject to this Article shall be recommended for counseling
14if, after reviewing the information in the predatory lending
15database submitted under Section 72, the Department finds the
16borrower or borrowers are all first-time homebuyers or
17refinancing a primary residence and the loan is a mortgage
18that includes one or more of the following:
19        (1) the loan permits interest only payments;
20        (2) the loan may result in negative amortization;
21        (3) the total points and fees payable by the borrower
22    at or before closing will exceed 5%;
23        (4) the loan includes a prepayment penalty; or
24        (5) the loan is an ARM; or .
25        (6) the borrower has entered into
     a shared

 

 

SB3551- 24 -LRB103 37488 RTM 67611 b

1    appreciation agreement as defined in Section 1-4 of the
2    Residential Mortgage License Act of 1987.
3(Source: P.A. 95-691, eff. 6-1-08.)
 
4    Section 99. Effective date. This Act takes effect upon
5becoming law.