Section 345.10  Definitions

            "Act" means the Illinois Banking Act [205 ILCS 5].

            "Approved Credit Counselor" means a credit counselor as approved by the Director of the Department of Financial Institutions.

            "Good faith" means honesty in fact in the conduct of the transaction.

            "High risk home loan on residential real property" means a home equity loan in which:

            at the time of origination, the APR exceeds by more than 6 percentage points in the case of a first lien mortgage, or by more than 8 percentage points in the case of a junior mortgage, the yield on U.S. Treasury securities having comparable periods of maturity to the loan maturity as of the fifteenth day of the month immediately preceding the month in which the application for the loan is received by the lender; or

            the total points and fees payable by the consumer at or before closing will exceed the greater of 5% of the total loan amount or $800.  The $800 figure shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index.

            However, this Part shall not apply to a loan that is made primarily for a business purpose unrelated to the residential real property securing the loan or to an open-end credit plan subject to 12 CFR 226 (2000, no subsequent amendments or editions are included).

            "Home equity loan" means any loan secured by the borrower's primary residence where the proceeds are not used as purchase money for the residence.

            "Points and fees" means:

            all items required to be disclosed as points and fees under 12 CFR 226.32 (2000, no subsequent amendments or editions included);

            the premium of any single premium credit life, credit disability, credit unemployment, or any other life or health insurance that is financed directly or indirectly into the loan;

            all compensation paid directly or indirectly to a mortgage broker, including a broker that originates a loan in its own name in a table funded transaction, not otherwise included in 12 CFR 226.4.

            "Servicer" means any entity chartered under the Act who is responsible for the collection or remittance for, or the right or obligation to collect or remit for, any lender, noteowner,  noteholder, or for a licensee's own account, of payments, interest, principal, and trust items such as hazard insurance and taxes on a residential mortgage loan in accordance with the terms of the residential mortgage loan; and includes loan payment follow-up, delinquency loan follow-up, loan analysis and any notifications to the borrower that are necessary to enable the borrower to keep the loan current and in good standing.

            "Total loan amount" is the same as the term used in 12 CFR 226.32, and shall be calculated in accordance with the Federal Reserve Board's Official Staff Commentary to that regulation.