92nd General Assembly
Status of HB2227
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 Full Text  Bill Summary

   735 ILCS 5/15-1403        from Ch. 110, par. 15-1403                        
   735 ILCS 5/15-1406 new                                                      

        Amends the Mortgage Foreclosure Article  of  the  Code  of  Civil      
   Procedure.  Provides that, if a mortgagor of a single family residence      
   experiences a temporary or permanent loss of employment because  of  a      
   layoff,  lockout,  or  strike  and the employment had been the primary      
   source of income of  the  mortgagor's  household,  the  mortgagor  may      
   notify  the  mortgagee  of  those facts, the mortgagee may require the      
   mortgagor to supply verification, and the mortgagor shall then  supply      
   verification.  Provides  that  the  mortgagee  not  then  initiate  or      
   proceed with an action to foreclose  on  the  mortgage  or  declare  a      
   default.  Provides  that the mortgagor shall make monthly interest and      
   escrow payments, and when the mortgagor again becomes employed or  one      
   year  has  elapsed  since  the  mortgagor  or  mortgagors began making      
   monthly interest and  escrow  payments,  the  mortgagor  shall  resume      
   regular  monthly  payments  of  principal and interest and shall remit      
   additional monthly sums in equal monthly  amounts  that  will  pay  in      
   full,  over a 6 month period, all principal that was unpaid during the      
   loss of employment.  Contains provisions concerning failure to comply,      
   court stays, and applicability.                                             
          FISCAL NOTE (Office of Banks and Real Estate)                        
          HB 2227 has no fiscal impact on the Office of Banks and Real         
          Estate. Financial entities (mortgagees) would lose compound          
          interest from delayed principal payments for up to an 18-month       
          period. The Office of Banks and Real Estate is unable to cal-        
          culate the fiscal impact on financial entities, because of un-       
          known variables.                                                     
          HOUSING AFFORDABIILITY NOTE                                          
          The proposed bill does not identify at what point in time the        
          borrower may/shall notify the lender of his/her loss of emplyo-      
          ment. As such, the financial impact on the lender cannot be          
          determined.  Both lenders and insurance companies will assume a      
          higher degree of risk in making mortgage loans under this            
          bill's provisions. To compensate for potentially higher losses,      
          lenders may likely charge higher interest rates and insurance        
          companies may establish higher premiums for mortgage insurance.      
          In both cases, these can only be assumed but cannot be predict-      
          ed or calculated with any degree of accuracy.                        
   FEB-22-2001  H  FILED WITH CLERK                                               
   FEB-22-2001  H  FIRST READING                                                  
   FEB-22-2001  H  REFERRED TO HOUSE RULES COMMITTEE        RULES                 
   FEB-23-2001  H       ASSIGNED TO COMMITTEE               JUD-CIVIL LAW         
   FEB-27-2001  H  ADDED AS A JOINT SPONSOR                 FOWLER                
   FEB-27-2001  H  ADDED AS A JOINT SPONSOR                 FORBY                 
   MAR-07-2001  H  ADDED AS A JOINT SPONSOR                 HOFFMAN               
   MAR-07-2001  H  ADDED AS A JOINT SPONSOR                 HOLBROOK              
   MAR-08-2001  H  DO PASS/STANDARD DEBATE                  007-006-000   HJUA    
   MAR-08-2001  H  PLACED CAL 2ND READING-STANDARD DEBATE                         
   MAR-13-2001  H                     FISCAL NOTE REQUESTED BLACK                 
   MAR-13-2001  H  CALENDAR ORDER 2ND READING-STANDARD DBT                        
   MAR-16-2001  H                         FISCAL NOTE FILED                       
   MAR-16-2001  H  CALENDAR ORDER 2ND READING-STANDARD DBT                        
   MAR-19-2001  H  HOUSING AFORDABILITY IMPCT NOTE FILED                          
   MAR-19-2001  H  CALENDAR ORDER 2ND READING-STANDARD DBT                        
   APR-04-2001  H  SECOND READING-STANDARD DEBATE                                 
   APR-04-2001  H  HELD CAL ORDER 2ND READING-STANDARD DBT                        
   APR-06-2001  H  RE-REFERRED TO RULES COMM/RULE 19(A)     RULES         HRUL    
   JAN-07-2003  H  SESSION SINE DIE                                               


 Full Text  Bill Summary