(765 ILCS 930/1)
Sec. 1.
Short Title.
This Act may be cited as the Mortgage Insurance Limitation and Notification Act.
(Source: P.A. 90-455, eff. 7-1-98.)
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(765 ILCS 930/5)
Sec. 5.
Application.
This Act applies to mortgages entered into on or
after the effective date of this Act and only to the principal single family
residence of the mortgagor.
(Source: P.A. 90-455, eff. 7-1-98.)
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(765 ILCS 930/10)
Sec. 10.
Definitions.
For the purpose of this Act:
"Mortgagee" means the holder of an indebtedness secured by a mortgage of a
single family residence or the entity that provides the servicing of the
mortgage, meaning the receipt of payments from the mortgagor and the
administration of the loan on behalf of the entity that holds the mortgage.
"Mortgage insurance" means insurance, including any mortgage guaranty
insurance, against the nonpayment of, or default on, a mortgage or loan
involved in a residential mortgage transaction, the premiums of which are paid
by the mortgagor.
"Mortgagor" means a natural person whose interest in a single family
residence is the subject of a mortgage for which the mortgagee has required
mortgage insurance.
"Private mortgage insurance" means mortgage insurance other than mortgage
insurance made available under the federal National Housing Act, title 38 of
the United States Code, or title V of the Housing Act of 1949.
(Source: P.A. 90-455, eff. 7-1-98.)
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(765 ILCS 930/15)
Sec. 15.
Transaction disclosure.
After July 1, 1998, if a person enters
into a transaction to obtain a mortgage for his or her principal residence and
private mortgage insurance may be required in connection with that transaction,
the mortgagee shall disclose in writing all of the following:
(1) Whether private mortgage insurance will be | ||
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(2) The period during which the insurance shall be | ||
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(3) The conditions under which the mortgagor may | ||
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(4) That the mortgagor will be notified not less than | ||
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(Source: P.A. 90-455, eff. 7-1-98.)
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(765 ILCS 930/17) Sec. 17. Insurance coverage. (a) No lender shall require a borrower, as a condition of receiving or maintaining a loan secured by real property, to provide hazard insurance coverage against risks to the improvements on that real property in an amount exceeding the replacement value of the improvements on the property. (b) Any person harmed by a violation of this Section shall be entitled to obtain injunctive relief and may recover damages and reasonable attorney's fees and costs.
(c) A violation of this Section does not affect the validity of the loan, note secured by a deed of trust, mortgage, or deed of trust.
(Source: P.A. 93-1021, eff. 8-24-04.) |
(765 ILCS 930/20)
Sec. 20.
Annual notification statement.
After July 1, 1998, in addition to
the transaction disclosure requirement set forth in Section 15 and
within 30 days after the end of the calendar year, the mortgagee shall inform
the mortgagor in writing of the procedure to cancel the private mortgage
insurance together with the telephone number and address. The annual statement
required by this Section may be printed on or included with any other annual
statement that is required by any federal or State law to be made by the
mortgagee to the mortgagor.
Nothing contained in this Section shall prevent a mortgagee from waiving any
or all of the conditions of its cancellation policy in effect when the mortgage
loan is originated or from modifying its cancellation policy applicable to a
particular mortgage loan from time to time, upon the written approval of the
mortgagor. If a cancellation policy is modified, the mortgagor shall be
notified within 30 days of material changes to the policy.
(Source: P.A. 90-455, eff. 7-1-98; 91-357, eff. 7-29-99.)
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(765 ILCS 930/30)
Sec. 30.
Federal law.
If federal law is enacted governing or otherwise
regulating private mortgage insurance, a mortgagee who is governed by the
provisions of this Act may have the option to comply with the federal law, and
compliance with the federal law by the mortgagee shall be deemed compliance
with this Act.
(Source: P.A. 90-455, eff. 7-1-98.)
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(765 ILCS 930/40)
Sec. 40.
Severability.
The provisions of this Act are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 90-455, eff. 7-1-98.)
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(765 ILCS 930/99)
Sec. 99.
Effective date.
This Act takes effect July 1, 1998.
(Source: P.A. 90-455, eff. 7-1-98.)
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