Illinois General Assembly - Illinois Compiled Statutes

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205 ILCS 5/48.2

(205 ILCS 5/48.2) (from Ch. 17, par. 360.1)

Sec. 48.2.

Prohibition against certain activities.

(a) Any bank, subsidiary, affiliate, officer or employee of such bank
subject to this Act shall not:

(1) grant any loan on the prior condition, agreement

or understanding that the borrower contract with any specific person or organization for the following:

(A) insurance services of an agent or broker;

(B) legal services rendered to the borrower;

(C) services of a real estate agent or broker; or

(D) real estate or property management services;

(2) require that insurance services, legal services,

real estate services or property management services be placed with any subsidiary, affiliate, officer or employee of any bank.

(b) Any bank or subsidiary, affiliate, employee, officer,
banking house, branch bank, branch office, additional office or agency of such
bank that is transacting an insurance business in this State shall comply
with Article XLIV of the Illinois
Insurance Code.

(c) Any officer or employee of a bank or its affiliates or subsidiaries
who violates this Section is guilty of a business offense, and upon conviction
shall be fined not more than $1,000.  This Section does not create a private
cause of action for civil damages.

(d) In any contract or loan which is secured by a mortgage, deed of
trust, or conveyance in the nature of a mortgage, on residential real
estate, the interest which is computed, calculated, charged, or collected
pursuant to such contract or loan, or pursuant to any regulation or rule
promulgated pursuant to this Act, may not be computed, calculated, charged
or collected for any period of time occurring after the date on which the
total indebtedness, with the exception of late payment penalties, is paid
in full.  For purposes of this subsection (d) of this Section 48.2, a
prepayment shall mean the payment of the total indebtedness, with the
exception of late payment penalties if incurred or charged, on any date
before the date specified in the contract or loan agreement on which the
total indebtedness shall be paid in full, or before the date on which all
payments, if timely made, shall have been made.  In the event of a
prepayment of the indebtedness which is made on a date
after the date on which interest on the indebtedness was last computed,
calculated, charged, or collected but before the next date on which interest
on the indebtedness was to be calculated, computed, charged, or collected,
the lender may calculate, charge and collect interest on the indebtedness
for the period which elapsed between the date on which the prepayment is
made and the date on which interest on the indebtedness was last computed,
calculated, charged or collected at a rate equal to 1/360 of the annual
rate for each day which so elapsed, which rate shall be applied to the
indebtedness outstanding as of the date of prepayment.  The lender shall
refund to the borrower any interest charged or collected which exceeds that
which the lender may charge or collect pursuant to the preceding sentence.
The provisions of this amendatory Act of 1985 shall apply only to contracts
or loans entered into on or after January 1, 1986.

(e) Any bank, affiliate or subsidiary of such bank which shall engage in
making residential mortgage financing transactions, shall with respect to
each such transaction, provide the following:

(1) if a contractual obligation is intended to a

borrower, a mortgage commitment which shall set forth the material terms, conditions and contingencies of such commitment;

(2) if the servicing of a residential mortgage shall

be transferred from the original mortgagee, within 45 days of such transfer, written notice sent by certified mail, return receipt requested, to the mortgagor at the address of the property, unless the mortgagor shall have directed correspondence from the mortgagee shall be sent to another address, which notice shall set forth:  the name and address of the transferee; the name, address and telephone number to which inquiries by the residential mortgagor should be addressed; and the name and address to which the next 3 monthly installments are to be submitted to the transferee and the amount of each of such monthly installment; and

(3) if the servicing of a residential mortgage shall

be transferred again or if the information in paragraph (2) above shall change, the notice with the corrected information shall be provided within 45 days of such subsequent transfer or change in information by the transferee of the servicing of the mortgage at that time.

(Source: P.A. 90-41, eff. 10-1-97.)