Full Text of HB4050 94th General Assembly
HB4050enr 94TH GENERAL ASSEMBLY
|
|
|
HB4050 Enrolled |
|
LRB094 11549 MKM 42525 b |
|
| 1 |
| AN ACT concerning lending practices.
| 2 |
| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Freedom of Information Act is amended by | 5 |
| changing Section 7 as follows: | 6 |
| (5 ILCS 140/7) (from Ch. 116, par. 207) | 7 |
| Sec. 7. Exemptions.
| 8 |
| (1) The following shall be exempt from inspection and | 9 |
| copying:
| 10 |
| (a) Information specifically prohibited from | 11 |
| disclosure by federal or
State law or rules and regulations | 12 |
| adopted under federal or State law.
| 13 |
| (b) Information that, if disclosed, would constitute a | 14 |
| clearly
unwarranted invasion of personal privacy, unless | 15 |
| the disclosure is
consented to in writing by the individual | 16 |
| subjects of the information. The
disclosure of information | 17 |
| that bears on the public duties of public
employees and | 18 |
| officials shall not be considered an invasion of personal
| 19 |
| privacy. Information exempted under this subsection (b) | 20 |
| shall include but
is not limited to:
| 21 |
| (i) files and personal information maintained with | 22 |
| respect to
clients, patients, residents, students or | 23 |
| other individuals receiving
social, medical, | 24 |
| educational, vocational, financial, supervisory or
| 25 |
| custodial care or services directly or indirectly from | 26 |
| federal agencies
or public bodies;
| 27 |
| (ii) personnel files and personal information | 28 |
| maintained with
respect to employees, appointees or | 29 |
| elected officials of any public body or
applicants for | 30 |
| those positions;
| 31 |
| (iii) files and personal information maintained | 32 |
| with respect to any
applicant, registrant or licensee |
|
|
|
HB4050 Enrolled |
- 2 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| by any public body cooperating with or
engaged in | 2 |
| professional or occupational registration, licensure | 3 |
| or discipline;
| 4 |
| (iv) information required of any taxpayer in | 5 |
| connection with the
assessment or collection of any tax | 6 |
| unless disclosure is otherwise required
by State | 7 |
| statute;
| 8 |
| (v) information revealing the identity of persons | 9 |
| who file complaints
with or provide information to | 10 |
| administrative, investigative, law enforcement
or | 11 |
| penal agencies; provided, however, that identification | 12 |
| of witnesses to
traffic accidents, traffic accident | 13 |
| reports, and rescue reports may be provided
by agencies | 14 |
| of local government, except in a case for which a | 15 |
| criminal
investigation is ongoing, without | 16 |
| constituting a clearly unwarranted per se
invasion of | 17 |
| personal privacy under this subsection; and
| 18 |
| (vi) the names, addresses, or other personal | 19 |
| information of
participants and registrants in park | 20 |
| district, forest preserve district, and
conservation | 21 |
| district programs.
| 22 |
| (c) Records compiled by any public body for | 23 |
| administrative enforcement
proceedings and any law | 24 |
| enforcement or correctional agency for
law enforcement | 25 |
| purposes or for internal matters of a public body,
but only | 26 |
| to the extent that disclosure would:
| 27 |
| (i) interfere with pending or actually and | 28 |
| reasonably contemplated
law enforcement proceedings | 29 |
| conducted by any law enforcement or correctional
| 30 |
| agency;
| 31 |
| (ii) interfere with pending administrative | 32 |
| enforcement proceedings
conducted by any public body;
| 33 |
| (iii) deprive a person of a fair trial or an | 34 |
| impartial hearing;
| 35 |
| (iv) unavoidably disclose the identity of a | 36 |
| confidential source or
confidential information |
|
|
|
HB4050 Enrolled |
- 3 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| furnished only by the confidential source;
| 2 |
| (v) disclose unique or specialized investigative | 3 |
| techniques other than
those generally used and known or | 4 |
| disclose internal documents of
correctional agencies | 5 |
| related to detection, observation or investigation of
| 6 |
| incidents of crime or misconduct;
| 7 |
| (vi) constitute an invasion of personal privacy | 8 |
| under subsection (b) of
this Section;
| 9 |
| (vii) endanger the life or physical safety of law | 10 |
| enforcement personnel
or any other person; or
| 11 |
| (viii) obstruct an ongoing criminal investigation.
| 12 |
| (d) Criminal history record information maintained by | 13 |
| State or local
criminal justice agencies, except the | 14 |
| following which shall be open for
public inspection and | 15 |
| copying:
| 16 |
| (i) chronologically maintained arrest information, | 17 |
| such as traditional
arrest logs or blotters;
| 18 |
| (ii) the name of a person in the custody of a law | 19 |
| enforcement agency and
the charges for which that | 20 |
| person is being held;
| 21 |
| (iii) court records that are public;
| 22 |
| (iv) records that are otherwise available under | 23 |
| State or local law; or
| 24 |
| (v) records in which the requesting party is the | 25 |
| individual
identified, except as provided under part | 26 |
| (vii) of
paragraph (c) of subsection (1) of this | 27 |
| Section.
| 28 |
| "Criminal history record information" means data | 29 |
| identifiable to an
individual and consisting of | 30 |
| descriptions or notations of arrests,
detentions, | 31 |
| indictments, informations, pre-trial proceedings, trials, | 32 |
| or
other formal events in the criminal justice system or | 33 |
| descriptions or
notations of criminal charges (including | 34 |
| criminal violations of local
municipal ordinances) and the | 35 |
| nature of any disposition arising therefrom,
including | 36 |
| sentencing, court or correctional supervision, |
|
|
|
HB4050 Enrolled |
- 4 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| rehabilitation and
release. The term does not apply to | 2 |
| statistical records and reports in
which individuals are | 3 |
| not identified and from which
their identities are not | 4 |
| ascertainable, or to information that is for
criminal | 5 |
| investigative or intelligence purposes.
| 6 |
| (e) Records that relate to or affect the security of | 7 |
| correctional
institutions and detention facilities.
| 8 |
| (f) Preliminary drafts, notes, recommendations, | 9 |
| memoranda and other
records in which opinions are | 10 |
| expressed, or policies or actions are
formulated, except | 11 |
| that a specific record or relevant portion of a
record | 12 |
| shall not be exempt when the record is publicly cited
and | 13 |
| identified by the head of the public body. The exemption | 14 |
| provided in
this paragraph (f) extends to all those records | 15 |
| of officers and agencies
of the General Assembly that | 16 |
| pertain to the preparation of legislative
documents.
| 17 |
| (g) Trade secrets and commercial or financial | 18 |
| information obtained from
a person or business where the | 19 |
| trade secrets or information are
proprietary, privileged | 20 |
| or confidential, or where disclosure of the trade
secrets | 21 |
| or information may cause competitive harm, including all
| 22 |
| information determined to be confidential under Section | 23 |
| 4002 of the
Technology Advancement and Development Act. | 24 |
| Nothing contained in this
paragraph (g) shall be construed | 25 |
| to prevent a person or business from
consenting to | 26 |
| disclosure.
| 27 |
| (h) Proposals and bids for any contract, grant, or | 28 |
| agreement, including
information which if it were | 29 |
| disclosed would frustrate procurement or give
an advantage | 30 |
| to any person proposing to enter into a contractor | 31 |
| agreement
with the body, until an award or final selection | 32 |
| is made. Information
prepared by or for the body in | 33 |
| preparation of a bid solicitation shall be
exempt until an | 34 |
| award or final selection is made.
| 35 |
| (i) Valuable formulae,
computer geographic systems,
| 36 |
| designs, drawings and research data obtained or
produced by |
|
|
|
HB4050 Enrolled |
- 5 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| any public body when disclosure could reasonably be | 2 |
| expected to
produce private gain or public loss.
The | 3 |
| exemption for "computer geographic systems" provided in | 4 |
| this paragraph
(i) does not extend to requests made by news | 5 |
| media as defined in Section 2 of
this Act when the | 6 |
| requested information is not otherwise exempt and the only
| 7 |
| purpose of the request is to access and disseminate | 8 |
| information regarding the
health, safety, welfare, or | 9 |
| legal rights of the general public.
| 10 |
| (j) Test questions, scoring keys and other examination | 11 |
| data used to
administer an academic examination or | 12 |
| determined the qualifications of an
applicant for a license | 13 |
| or employment.
| 14 |
| (k) Architects' plans, engineers' technical | 15 |
| submissions, and
other
construction related technical | 16 |
| documents for
projects not constructed or developed in | 17 |
| whole or in part with public funds
and the same for | 18 |
| projects constructed or developed with public funds, but
| 19 |
| only to the extent
that disclosure would compromise | 20 |
| security, including but not limited to water
treatment | 21 |
| facilities, airport facilities, sport stadiums, convention | 22 |
| centers,
and all government owned, operated, or occupied | 23 |
| buildings.
| 24 |
| (l) Library circulation and order records identifying | 25 |
| library users with
specific materials.
| 26 |
| (m) Minutes of meetings of public bodies closed to the
| 27 |
| public as provided in the Open Meetings Act until the | 28 |
| public body
makes the minutes available to the public under | 29 |
| Section 2.06 of the Open
Meetings Act.
| 30 |
| (n) Communications between a public body and an | 31 |
| attorney or auditor
representing the public body that would | 32 |
| not be subject to discovery in
litigation, and materials | 33 |
| prepared or compiled by or for a public body in
| 34 |
| anticipation of a criminal, civil or administrative | 35 |
| proceeding upon the
request of an attorney advising the | 36 |
| public body, and materials prepared or
compiled with |
|
|
|
HB4050 Enrolled |
- 6 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| respect to internal audits of public bodies.
| 2 |
| (o) Information received by a primary or secondary | 3 |
| school, college or
university under its procedures for the | 4 |
| evaluation of faculty members by
their academic peers.
| 5 |
| (p) Administrative or technical information associated | 6 |
| with automated
data processing operations, including but | 7 |
| not limited to software,
operating protocols, computer | 8 |
| program abstracts, file layouts, source
listings, object | 9 |
| modules, load modules, user guides, documentation
| 10 |
| pertaining to all logical and physical design of | 11 |
| computerized systems,
employee manuals, and any other | 12 |
| information that, if disclosed, would
jeopardize the | 13 |
| security of the system or its data or the security of
| 14 |
| materials exempt under this Section.
| 15 |
| (q) Documents or materials relating to collective | 16 |
| negotiating matters
between public bodies and their | 17 |
| employees or representatives, except that
any final | 18 |
| contract or agreement shall be subject to inspection and | 19 |
| copying.
| 20 |
| (r) Drafts, notes, recommendations and memoranda | 21 |
| pertaining to the
financing and marketing transactions of | 22 |
| the public body. The records of
ownership, registration, | 23 |
| transfer, and exchange of municipal debt
obligations, and | 24 |
| of persons to whom payment with respect to these | 25 |
| obligations
is made.
| 26 |
| (s) The records, documents and information relating to | 27 |
| real estate
purchase negotiations until those negotiations | 28 |
| have been completed or
otherwise terminated. With regard to | 29 |
| a parcel involved in a pending or
actually and reasonably | 30 |
| contemplated eminent domain proceeding under
Article VII | 31 |
| of the Code of Civil Procedure, records, documents and
| 32 |
| information relating to that parcel shall be exempt except | 33 |
| as may be
allowed under discovery rules adopted by the | 34 |
| Illinois Supreme Court. The
records, documents and | 35 |
| information relating to a real estate sale shall be
exempt | 36 |
| until a sale is consummated.
|
|
|
|
HB4050 Enrolled |
- 7 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| (t) Any and all proprietary information and records | 2 |
| related to the
operation of an intergovernmental risk | 3 |
| management association or
self-insurance pool or jointly | 4 |
| self-administered health and accident
cooperative or pool.
| 5 |
| (u) Information concerning a university's adjudication | 6 |
| of student or
employee grievance or disciplinary cases, to | 7 |
| the extent that disclosure
would reveal the identity of the | 8 |
| student or employee and information
concerning any public | 9 |
| body's adjudication of student or employee grievances
or | 10 |
| disciplinary cases, except for the final outcome of the | 11 |
| cases.
| 12 |
| (v) Course materials or research materials used by | 13 |
| faculty members.
| 14 |
| (w) Information related solely to the internal | 15 |
| personnel rules and
practices of a public body.
| 16 |
| (x) Information contained in or related to | 17 |
| examination, operating, or
condition reports prepared by, | 18 |
| on behalf of, or for the use of a public
body responsible | 19 |
| for the regulation or supervision of financial
| 20 |
| institutions or insurance companies, unless disclosure is | 21 |
| otherwise
required by State law.
| 22 |
| (y) Information the disclosure of which is restricted | 23 |
| under Section
5-108 of the Public Utilities Act.
| 24 |
| (z) Manuals or instruction to staff that relate to | 25 |
| establishment or
collection of liability for any State tax | 26 |
| or that relate to investigations
by a public body to | 27 |
| determine violation of any criminal law.
| 28 |
| (aa) Applications, related documents, and medical | 29 |
| records received by
the Experimental Organ Transplantation | 30 |
| Procedures Board and any and all
documents or other records | 31 |
| prepared by the Experimental Organ
Transplantation | 32 |
| Procedures Board or its staff relating to applications
it | 33 |
| has received.
| 34 |
| (bb) Insurance or self insurance (including any | 35 |
| intergovernmental risk
management association or self | 36 |
| insurance pool) claims, loss or risk
management |
|
|
|
HB4050 Enrolled |
- 8 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| information, records, data, advice or communications.
| 2 |
| (cc) Information and records held by the Department of | 3 |
| Public Health and
its authorized representatives relating | 4 |
| to known or suspected cases of
sexually transmissible | 5 |
| disease or any information the disclosure of which
is | 6 |
| restricted under the Illinois Sexually Transmissible | 7 |
| Disease Control Act.
| 8 |
| (dd) Information the disclosure of which is exempted | 9 |
| under Section 30
of the Radon Industry Licensing Act.
| 10 |
| (ee) Firm performance evaluations under Section 55 of | 11 |
| the
Architectural, Engineering, and Land Surveying | 12 |
| Qualifications Based
Selection Act.
| 13 |
| (ff) Security portions of system safety program plans, | 14 |
| investigation
reports, surveys, schedules, lists, data, or | 15 |
| information compiled, collected,
or prepared by or for the | 16 |
| Regional Transportation Authority under Section 2.11
of | 17 |
| the Regional Transportation Authority Act or the St. Clair | 18 |
| County Transit
District under the
Bi-State Transit Safety | 19 |
| Act.
| 20 |
| (gg) Information the disclosure of which is restricted | 21 |
| and
exempted under Section 50 of the Illinois Prepaid | 22 |
| Tuition Act.
| 23 |
| (hh) Information the disclosure of which is
exempted | 24 |
| under the State Officials and Employees Ethics Act.
| 25 |
| (ii) Beginning July 1, 1999, information that would | 26 |
| disclose
or might lead to the disclosure of
secret or | 27 |
| confidential information, codes, algorithms, programs, or | 28 |
| private
keys intended to be used to create electronic or | 29 |
| digital signatures under the
Electronic Commerce Security | 30 |
| Act.
| 31 |
| (jj) Information contained in a local emergency energy | 32 |
| plan submitted to
a municipality in accordance with a local | 33 |
| emergency energy plan ordinance that
is adopted under | 34 |
| Section 11-21.5-5 of the Illinois Municipal Code.
| 35 |
| (kk) Information and data concerning the distribution | 36 |
| of
surcharge moneys collected and remitted by wireless |
|
|
|
HB4050 Enrolled |
- 9 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| carriers under the Wireless
Emergency Telephone Safety | 2 |
| Act.
| 3 |
| (ll) Vulnerability assessments, security measures, and | 4 |
| response policies
or plans that are designed to identify, | 5 |
| prevent, or respond to potential
attacks upon a community's | 6 |
| population or systems, facilities, or installations,
the | 7 |
| destruction or contamination of which would constitute a | 8 |
| clear and present
danger to the health or safety of the | 9 |
| community, but only to the extent that
disclosure could | 10 |
| reasonably be expected to jeopardize the effectiveness of | 11 |
| the
measures or the safety of the personnel who implement | 12 |
| them or the public.
Information exempt under this item may | 13 |
| include such things as details
pertaining to the | 14 |
| mobilization or deployment of personnel or equipment, to | 15 |
| the
operation of communication systems or protocols, or to | 16 |
| tactical operations.
| 17 |
| (mm) Maps and other records regarding the location or | 18 |
| security of a
utility's generation, transmission, | 19 |
| distribution, storage, gathering,
treatment, or switching | 20 |
| facilities.
| 21 |
| (nn) Law enforcement officer identification | 22 |
| information or
driver
identification
information compiled | 23 |
| by a law enforcement agency or the Department of
| 24 |
| Transportation
under Section 11-212 of the Illinois | 25 |
| Vehicle Code.
| 26 |
| (oo) Records and information provided to a residential
| 27 |
| health care
facility resident sexual assault
and death | 28 |
| review team or the Residential Health Care Facility | 29 |
| Resident Sexual
Assault and Death Review Teams Executive | 30 |
| Council under the Residential Health
Care Facility | 31 |
| Resident Sexual Assault and Death Review Team Act.
| 32 |
| (pp) Information provided to the predatory lending | 33 |
| database created pursuant to Article 3 of the Residential | 34 |
| Real Property Disclosure Act, except to the extent | 35 |
| authorized under that Article.
| 36 |
| (2) This Section does not authorize withholding of |
|
|
|
HB4050 Enrolled |
- 10 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| information or limit the
availability of records to the public, | 2 |
| except as stated in this Section or
otherwise provided in this | 3 |
| Act.
| 4 |
| (Source: P.A. 92-16, eff. 6-28-01; 92-241, eff. 8-3-01; 92-281, | 5 |
| eff. 8-7-01; 92-645, eff. 7-11-02; 92-651, eff. 7-11-02; 93-43, | 6 |
| eff. 7-1-03; 93-209, eff. 7-18-03; 93-237, eff. 7-22-03; | 7 |
| 93-325, eff. 7-23-03, 93-422, eff. 8-5-03; 93-577, eff. | 8 |
| 8-21-03; 93-617, eff. 12-9-03.)
| 9 |
| Section 10. The Residential Real Property Disclosure Act | 10 |
| is amended by adding an Article caption immediately before | 11 |
| Section 1 as follows: | 12 |
| ARTICLE 1
| 13 |
| SHORT TITLE | 14 |
| Section 15. The Residential Real Property Disclosure Act is | 15 |
| amended by adding an Article caption immediately before Section | 16 |
| 5 as follows: | 17 |
| ARTICLE 2
| 18 |
| DISCLOSURES | 19 |
| Section 20. The Residential Real Property Disclosure Act is | 20 |
| amended by adding an Article caption and by adding Sections 70, | 21 |
| 72, 74, and 76 immediately after Section 65 as follows: | 22 |
| ARTICLE 3
| 23 |
| PREDATORY LENDING DATABASE | 24 |
| (765 ILCS 77/70 new) | 25 |
| Sec. 70. Predatory lending database pilot program. | 26 |
| (a) As used in this Article: | 27 |
| "Borrower" means a person seeking a mortgage loan.
| 28 |
| "Broker" means a "broker" or "loan broker", as defined in | 29 |
| subsection (p) of Section 1-4 of the Residential Mortgage |
|
|
|
HB4050 Enrolled |
- 11 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| License Act of 1987. | 2 |
| "Closing agent" means an individual assigned by a title | 3 |
| insurance company or a broker or originator to ensure that the | 4 |
| execution of documents related to the closing of a real estate | 5 |
| sale or the refinancing of a real estate loan and the | 6 |
| disbursement of closing funds are in conformity with the | 7 |
| instructions of the entity financing the transaction.
| 8 |
| "Department" means the Department of Financial and | 9 |
| Professional Regulation.
| 10 |
| "Exempt person" means that term as it is defined in | 11 |
| subsections (d)(1) and (d)(1.5) of Section 1-4 of the | 12 |
| Residential Mortgage License Act of 1987.
| 13 |
| "Lender" means that term as it is defined in subsection (g) | 14 |
| of Section 1-4 of the Residential Mortgage License Act.
| 15 |
| "Licensee" means that term as it is defined in subsection | 16 |
| (e) of Section 1-4 of the Residential Mortgage License Act of | 17 |
| 1987.
| 18 |
| "Mortgage loan" means that term as it is defined in | 19 |
| subsection (f) of Section 1-4 of the Residential Mortgage | 20 |
| License Act of 1987.
| 21 |
| "Originator" means a "loan originator" as defined in | 22 |
| subsection (hh) of Section 1-4 of the Residential Mortgage | 23 |
| License Act of 1987, except an exempt person. | 24 |
| "Pilot program area" means all areas within Cook County | 25 |
| designated as such by the Department due to the high rate of | 26 |
| foreclosure on residential home mortgages that is primarily the | 27 |
| result of predatory lending practices. The Department shall | 28 |
| designate the pilot program area within 30 days after the | 29 |
| effective date of this amendatory Act of the 94th General | 30 |
| Assembly.
| 31 |
| "Title insurance company" means any domestic company | 32 |
| organized under the laws of this State for the purpose of | 33 |
| conducting the business of guaranteeing or insuring titles to | 34 |
| real estate and any title insurance company organized under the | 35 |
| laws of another State, the District of Columbia, or a foreign | 36 |
| government and authorized to transact the business of |
|
|
|
HB4050 Enrolled |
- 12 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| guaranteeing or insuring titles to real estate in this State.
| 2 |
| (b) A predatory lending database pilot program is | 3 |
| established within the pilot program area. The pilot program | 4 |
| shall continue for 4 years after its creation and shall be | 5 |
| administered in accordance with Article 3 of this Act. The | 6 |
| database created under this program shall be maintained and | 7 |
| administered by the Department. The database shall be designed | 8 |
| to allow brokers, originators, credit counselors, title | 9 |
| insurance companies, and closing agents to submit information | 10 |
| to the database online. The database shall not be designed to | 11 |
| allow those entities to retrieve information from the database, | 12 |
| except as otherwise provided in this Article. Information | 13 |
| submitted by the broker or originator to the Department may be | 14 |
| used to populate the online form submitted by a credit | 15 |
| counselor, title insurance company, or closing agent. | 16 |
| (c) Within 10 days after taking a mortgage application, the | 17 |
| broker or originator for any mortgage on residential property | 18 |
| within the pilot program area must submit to the predatory | 19 |
| lending database all of the information required under Section | 20 |
| 72 and any other information required by the Department by | 21 |
| rule. Within 7 days after receipt of the information, the | 22 |
| Department shall compare that information to credit counseling | 23 |
| standards developed by the Department by rule and issue to the | 24 |
| borrower and the broker or originator a determination of | 25 |
| whether credit counseling is recommended for the borrower. The | 26 |
| borrower may not waive credit counseling. If at any time after | 27 |
| submitting the information required under Section 72 the broker | 28 |
| or originator (i) changes the terms of the loan or (ii) issues | 29 |
| a new commitment to the borrower, then, within 5 days | 30 |
| thereafter, the broker or originator shall re-submit all of the | 31 |
| information required under Section 72 and, within 4 days after | 32 |
| receipt of the information re-submitted by the broker or | 33 |
| originator, the Department shall compare that information to | 34 |
| credit counseling standards developed by the Department by rule | 35 |
| and shall issue to the borrower and the broker or originator a | 36 |
| new determination of whether credit counseling is recommended |
|
|
|
HB4050 Enrolled |
- 13 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| for the borrower based on the information re-submitted by the | 2 |
| broker or originator. | 3 |
| (d) If the Department recommends credit counseling for the | 4 |
| borrower under subsection (c), then the Department shall notify | 5 |
| the borrower of all HUD-certified counseling agencies located | 6 |
| within the State and direct the borrower to interview with a | 7 |
| counselor associated with one of those agencies. Within 10 days | 8 |
| after receipt of the notice of HUD-certified counseling | 9 |
| agencies, the borrower shall select one of those agencies and | 10 |
| shall engage in an interview with a counselor associated with | 11 |
| that agency. Within 7 days after interviewing the borrower, the | 12 |
| credit counselor must submit to the predatory lending database | 13 |
| all of the information required under Section 74 and any other | 14 |
| information required by the Department by rule. Any costs | 15 |
| associated with credit counseling provided under the pilot | 16 |
| program shall be paid by the broker or originator. | 17 |
| (e) The broker or originator and the borrower may not take | 18 |
| any legally binding action concerning the loan transaction | 19 |
| until the later of the following: | 20 |
| (1) the Department issues a determination not to | 21 |
| recommend credit counseling for the borrower in accordance | 22 |
| with subsection (c); or | 23 |
| (2) the Department issues a determination that credit | 24 |
| counseling is recommended for the borrower and the credit | 25 |
| counselor submits all required information to the database | 26 |
| in accordance with subsection (d).
| 27 |
| (f) Within 10 days after closing, the title insurance | 28 |
| company or closing agent must submit to the predatory lending | 29 |
| database all of the information required under Section 76 and | 30 |
| any other information required by the Department by rule. | 31 |
| (g) Upon recording the mortgage, the title insurance | 32 |
| company or closing agent must simultaneously file with the | 33 |
| recorder a certificate of its compliance with the requirements | 34 |
| of this Article, as generated by the database. If the title | 35 |
| insurance company or closing agent fails to file the | 36 |
| certificate of compliance, then the mortgage is not recordable. |
|
|
|
HB4050 Enrolled |
- 14 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| In addition, if any lis pendens for a residential mortgage | 2 |
| foreclosure is recorded on the property within the pilot | 3 |
| program area, a certificate of service must be simultaneously | 4 |
| recorded that affirms that a copy of the lis pendens was filed | 5 |
| with the Department. If the certificate of service is not | 6 |
| recorded, then the lis pendens pertaining to the residential | 7 |
| mortgage foreclosure in question is not recordable and is of no | 8 |
| force and effect. | 9 |
| (h) All information provided to the predatory lending | 10 |
| database under the program is confidential and is not subject | 11 |
| to disclosure under the Freedom of Information Act, except as | 12 |
| otherwise provided in this Article. Any borrower may authorize | 13 |
| in writing the release of database information. The Department | 14 |
| may use the information in the database without the consent of | 15 |
| the borrower: (i) for the purposes of administering and | 16 |
| enforcing the pilot program; (ii) to provide relevant | 17 |
| information to a credit counselor providing credit counseling | 18 |
| to a borrower under the pilot program; or (iii) to the | 19 |
| appropriate law enforcement agency or the applicable | 20 |
| administrative agency if the database information demonstrates | 21 |
| criminal, fraudulent, or otherwise illegal activity.
| 22 |
| (i) Nothing in this Article is intended to prevent a | 23 |
| borrower from making his or her own decision as to whether to | 24 |
| proceed with a transaction.
| 25 |
| (j) Any person who violates any provision of this Article | 26 |
| commits an unlawful practice within the meaning of the Consumer | 27 |
| Fraud and Deceptive Business Practices Act.
| 28 |
| (k) Not later than one year after the Department designates | 29 |
| the pilot program area and annually thereafter during the | 30 |
| existence of the pilot program, the Department shall report to | 31 |
| the Governor and to the General Assembly concerning its | 32 |
| administration and the effectiveness of the pilot program.
| 33 |
| (765 ILCS 77/72 new) | 34 |
| Sec. 72. Originator; required information. As part of the | 35 |
| predatory lending database pilot program, the broker or |
|
|
|
HB4050 Enrolled |
- 15 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| originator must submit all of the following information for | 2 |
| inclusion in the predatory lending database for each loan for | 3 |
| which the originator takes an application: | 4 |
| (1) The borrower's name, address, social security | 5 |
| number or taxpayer identification number, date of birth, | 6 |
| and income and expense information contained in the | 7 |
| mortgage application.
| 8 |
| (2) The address, permanent index number, and a | 9 |
| description of the collateral and information about the | 10 |
| loan or loans being applied for and the loan terms, | 11 |
| including the amount of the loan, the rate and whether the | 12 |
| rate is fixed or adjustable, amortization or loan period | 13 |
| terms, and any other material terms.
| 14 |
| (3) The borrower's credit score at the time of | 15 |
| application.
| 16 |
| (4) Information about the originator and the company | 17 |
| the originator works for, including the originator's | 18 |
| license number and address, fees being charged, whether the | 19 |
| fees are being charged as points up front, the yield spread | 20 |
| premium payable outside closing, and other charges made or | 21 |
| remuneration required by the broker or originator or its | 22 |
| affiliates or the broker's or originator's employer or its | 23 |
| affiliates for the mortgage loans.
| 24 |
| (5) Information about affiliated or third party | 25 |
| service providers, including the names and addresses of | 26 |
| appraisers, title insurance companies, closing agents, | 27 |
| attorneys, and realtors who are involved with the | 28 |
| transaction and the broker or originator and any moneys | 29 |
| received from the broker or originator in connection with | 30 |
| the transaction.
| 31 |
| (6) All information indicated on the Good Faith | 32 |
| Estimate and Truth in Lending statement disclosures given | 33 |
| to the borrower by the broker or originator.
| 34 |
| (7) Annual real estate taxes for the property, together | 35 |
| with any assessments payable in connection with the | 36 |
| property to be secured by the collateral and the proposed |
|
|
|
HB4050 Enrolled |
- 16 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| monthly principal and interest charge of all loans to be | 2 |
| taken by the borrower and secured by the property of the | 3 |
| borrower.
| 4 |
| (8) Information concerning how the broker or | 5 |
| originator obtained the client and the name of its referral | 6 |
| source, if any.
| 7 |
| (9) Information concerning the notices provided by the | 8 |
| broker or originator to the borrower as required by law and | 9 |
| the date those notices were given.
| 10 |
| (10) Information concerning whether a sale and | 11 |
| leaseback is contemplated and the names of the lessor and | 12 |
| lessee, seller, and purchaser.
| 13 |
| (765 ILCS 77/74 new) | 14 |
| Sec. 74. Credit counselor; required information. As part of | 15 |
| the predatory lending database pilot program, a credit | 16 |
| counselor must submit all of the following information for | 17 |
| inclusion in the predatory lending database: | 18 |
| (1) The information called for in Section 72. | 19 |
| (2) Any information from the borrower that confirms or | 20 |
| contradicts the information called for under item (1) of | 21 |
| this Section. | 22 |
| (3) The name and address of the credit counselor.
| 23 |
| (4) Information pertaining to the borrower's monthly | 24 |
| expenses that assists the credit counselor in determining | 25 |
| whether the borrower can afford the loans or loans for | 26 |
| which the borrower is applying. | 27 |
| (5) A list of the disclosures furnished to the | 28 |
| borrower, as seen and reviewed by the credit counselor, and | 29 |
| a comparison of that list to all disclosures required by | 30 |
| law. | 31 |
| (6) Whether the borrower provided tax returns to the | 32 |
| broker or originator or to the credit counselor, and, if | 33 |
| so, who prepared the tax returns. | 34 |
| (7) The date the loan commitment expires and whether a | 35 |
| written commitment has been given, together with the |
|
|
|
HB4050 Enrolled |
- 17 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| proposed date of closing. | 2 |
| (8) A statement of the recommendations of the credit | 3 |
| counselor that indicates the counselor's response to each | 4 |
| of the following statements: | 5 |
| (A) The loan should not be approved due to indicia | 6 |
| of fraud. | 7 |
| (B) The loan should be approved; no material | 8 |
| problems noted. | 9 |
| (C) The borrower cannot afford the loan. | 10 |
| (D) The borrower does not understand the | 11 |
| transaction. | 12 |
| (E) The borrower does not understand the costs | 13 |
| associated with the transaction. | 14 |
| (F) The borrower's monthly income and expenses | 15 |
| have been reviewed and disclosed. | 16 |
| (G) The rate of the loan is above market rate. | 17 |
| (H) The borrower should seek a competitive bid from | 18 |
| another broker or originator. | 19 |
| (I) There are discrepancies between the borrower's | 20 |
| verbal understanding and the originator's completed | 21 |
| form. | 22 |
| (J) The borrower is precipitously close to not | 23 |
| being able to afford the loan. | 24 |
| (K) The borrower understands the true cost of debt | 25 |
| consolidation and the need for credit card discipline.
| 26 |
| (L) The information that the borrower provided the | 27 |
| originator has been amended by the originator.
| 28 |
| (765 ILCS 77/76 new) | 29 |
| Sec. 76. Title insurance company or closing agent; required | 30 |
| information. As part of the predatory lending database pilot | 31 |
| program, a title insurance company or closing agent must submit | 32 |
| all of the following information for inclusion in the predatory | 33 |
| lending database:
| 34 |
| (1) The borrower's name, address, social security | 35 |
| number or taxpayer identification number, date of birth, |
|
|
|
HB4050 Enrolled |
- 18 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| and income and expense information contained in the | 2 |
| mortgage application. | 3 |
| (2) The address, permanent index number, and a | 4 |
| description of the collateral and information about the | 5 |
| loan or loans being applied for and the loan terms, | 6 |
| including the amount of the loan, the rate and whether the | 7 |
| rate is fixed or adjustable, amortization or loan period | 8 |
| terms, and any other material terms. | 9 |
| (3) Annual real estate taxes for the property, together | 10 |
| with any assessments payable in connection with the | 11 |
| property to be secured by the collateral and the proposed | 12 |
| monthly principal and interest charge of all loans to be | 13 |
| taken by the borrower and secured by the property of the | 14 |
| borrower as well as any required escrows and the amounts | 15 |
| paid monthly for those escrows. | 16 |
| (4) All itemizations and descriptions set forth in the | 17 |
| RESPA settlement statement including items to be | 18 |
| disbursed, payable outside closing "POC" items noted on the | 19 |
| statement, and a list of payees and the amounts of their | 20 |
| checks. | 21 |
| (5) The name and license number of the title insurance | 22 |
| company or closing agent together with the name of the | 23 |
| agent actually conducting the closing. | 24 |
| (6) The names and addresses of all originators, | 25 |
| brokers, appraisers, sales persons, attorneys, and | 26 |
| surveyors that are present at the closing. | 27 |
| (7) The date of closing, a detailed list of all notices | 28 |
| provided to the borrower at closing and the date of those | 29 |
| notices, and all information indicated on the Truth in | 30 |
| Lending statement and Good Faith Estimate disclosures.
| 31 |
| Section 25. The Residential Real Property Disclosure Act is | 32 |
| amended by adding an Article caption immediately before Section | 33 |
| 99 as follows: | 34 |
| ARTICLE 4 |
|
|
|
HB4050 Enrolled |
- 19 - |
LRB094 11549 MKM 42525 b |
|
| 1 |
| EFFECTIVE DATE
| 2 |
| Section 30. The Consumer Fraud and Deceptive Practices Act | 3 |
| is amended by changing Section 2Z as follows:
| 4 |
| (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
| 5 |
| Sec. 2Z. Violations of other Acts. Any person who knowingly | 6 |
| violates
the Automotive Repair Act,
the Home Repair and | 7 |
| Remodeling Act,
the Dance Studio Act,
the Physical Fitness | 8 |
| Services Act,
the Hearing Instrument Consumer Protection Act,
| 9 |
| the Illinois Union Label Act,
the Job Referral and Job Listing | 10 |
| Services Consumer Protection Act,
the Travel Promotion | 11 |
| Consumer Protection Act,
the Credit Services Organizations | 12 |
| Act,
the Automatic Telephone Dialers Act,
the Pay-Per-Call | 13 |
| Services Consumer Protection Act,
the Telephone Solicitations | 14 |
| Act,
the Illinois Funeral or Burial Funds Act,
the Cemetery | 15 |
| Care Act,
the Safe and Hygienic Bed Act,
the Pre-Need Cemetery | 16 |
| Sales Act,
the High Risk Home Loan Act, subsection (a) or (b) | 17 |
| of Section 3-10 of the
Cigarette Tax Act, subsection
(a) or (b) | 18 |
| of Section 3-10 of the Cigarette Use Tax Act, the Electronic
| 19 |
| Mail Act, paragraph (6)
of
subsection (k) of Section 6-305 of | 20 |
| the Illinois Vehicle Code, Article 3 of the Residential Real | 21 |
| Property Disclosure Act, or the Automatic Contract Renewal Act | 22 |
| commits an unlawful practice within the meaning of this Act.
| 23 |
| (Source: P.A. 92-426, eff. 1-1-02; 93-561, eff. 1-1-04; 93-950, | 24 |
| eff. 1-1-05.)
|
|