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Rep. Jack McGuire
Filed: 3/23/2010
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09600HB6411ham001 |
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LRB096 21039 RPM 39510 a |
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| AMENDMENT TO HOUSE BILL 6411
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| AMENDMENT NO. ______. Amend House Bill 6411 by replacing |
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| everything after the enacting clause with the following:
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| "Section 5. The Mortgage Escrow Account Act is amended by |
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| adding Section 20 as follows:
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| (765 ILCS 910/20 new) |
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| Sec. 20. Notice of transfer of mortgage escrow account. |
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| (a) A mortgage lender who acquires an escrow account |
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| through assignment, sale, or transfer shall notify the borrower |
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| of any such assignment, sale, or transfer. |
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| (b) The notice required under this Section shall comport |
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| with the following provisions concerning timing: |
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| (1) The mortgage lender who acquires the escrow account |
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| shall notify the borrower not less than 15 days after the |
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| effective date of the assignment, sale, or transfer of the |
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| escrow account. |
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09600HB6411ham001 |
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LRB096 21039 RPM 39510 a |
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| (2) The notice required under subsection (a) of this |
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| Section shall be made to the borrower not more than 30 days |
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| after the effective date of the assignment, sale, or |
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| transfer of the mortgage account in any case in which the |
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| assignment, sale, or transfer of the mortgage account was |
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| preceded by: |
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| (i) termination of the contract for servicing the |
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| loan, including maintaining the escrow account, for |
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| cause; |
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| (ii) commencement of bankruptcy proceedings of the |
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| mortgage lender; or |
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| (iii) commencement of proceedings by the Federal |
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| Deposit Insurance Corporation for receivership of the |
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| mortgage lender or any entity that owns or controls the |
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| mortgage lender. |
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| (c) The notice required under this Section shall include |
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| the following information: |
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| (1) the effective date of assignment, sale, or transfer |
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| of the escrow account; |
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| (2) the name, address, website, fax number, and |
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| toll-free or collect-call telephone number of the mortgage |
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| lender who is acquiring the escrow account; |
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| (3) the name of and a toll-free or collect-call number |
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| for an individual employed by, or a department within, the |
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| transferring mortgage lender that can be contacted by the |
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| borrower to answer inquiries relating to the assignment, |
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09600HB6411ham001 |
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LRB096 21039 RPM 39510 a |
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| sale, or transfer of the mortgage account; |
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| (4) the name of and toll-free or collect-call telephone |
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| number for an individual employed by, or a department |
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| within, the mortgage lender that is acquiring the escrow |
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| account that can be contacted by the borrower to answer |
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| inquiries related to the assignment, sale, or transfer of |
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| the mortgage account; |
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| (5) the date on which the mortgage lender who holds the |
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| escrow account before the assignment, sale, or transfer |
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| will cease to accept payments relating to the escrow |
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| account and the date on which the mortgage lender who is |
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| acquiring the escrow account will begin to accept such |
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| payments; and |
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| (6) the number of the toll-free consumer hotline |
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| maintained by the Division of Banking of the Department of |
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| Financial and Professional Regulation. |
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| (d) The notice required under this Section shall be sent by |
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| first class mail in an envelope that is marked with the |
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| following statement, in 12-point, bold-faced font: "ENCLOSED |
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| IS AN IMPORTANT NOTICE REGARDING YOUR MORTGAGE ESCROW ACCOUNT |
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| WITH (insert name of the transferring mortgage lender).". |
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| (e) The provisions of this Section shall not apply to any |
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| assignment, sale, or transfer of a mortgage account if the |
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| mortgage lender who makes the loan provides to the borrower, at |
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| settlement, written notice of the assignment, sale, or |
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| transfer. |