103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2717
 
Introduced 2/16/2023, by Rep. Edgar Gonzalez, Jr.
 
SYNOPSIS AS INTRODUCED:
 

 





765 ILCS 910/5  from Ch. 17, par. 4905
765 ILCS 910/7  from Ch. 17, par. 4907

     Amends the Mortgage Escrow Account Act. Provides that a mortgage lender that complies with the escrow account requirements in Title 12 CFR Part 1026 for a mortgage loan that is a higher-priced mortgage loan is deemed to be in compliance with a provision regarding notification by a mortgage lender to a borrower about terminating or continuing such escrow account. Provides that the borrower shall not have the right to terminate any escrow account arrangement in conjunction with a mortgage loan that is a higher-priced mortgage loan unless the borrower has met all of the conditions for cancellation of an escrow account for a higher-priced mortgage loan in Title 12 CFR Part 1026. Effective immediately.
  


LRB103 30866 LNS 57379 b

 
 
A BILL FOR
 

  
HB2717LRB103 30866 LNS 57379 b


  
1    AN ACT concerning civil law.
  
 
2    Be it enacted by the People of the State of Illinois,
 
3represented in the General Assembly:
  
 
 
4    Section 5. The Mortgage Escrow Account Act is amended  by 
5changing Sections 5 and 7 as follows:
 



6    (765 ILCS 910/5)  (from Ch. 17, par. 4905)



7    Sec. 5. 
(a) When the mortgage is reduced to 65% of its 
8original amount by
payments of the borrower, timely made 
9according to the provisions of the
loan agreement secured by 
10the mortgage, and the borrower is otherwise not
in default on 
11the loan agreement, the mortgage lender must notify the 
12borrower
that he may terminate such escrow account or that he 
13may elect to continue
it until he requests a termination 
14thereof, or until the mortgage is paid
in full, whichever 
15occurs first.
16    (b) Notwithstanding the requirements in subsection (a), a 
17mortgage lender that complies with the escrow account 
18requirements in Title 12 CFR Part 1026, as amended, for a 
19mortgage loan that is a higher-priced mortgage loan, as 
20defined in Title 12 CFR Part 1026, as amended, is deemed to be 
21in compliance with subsection (a). 

22(Source: P.A. 79-625.)

 



 
 
HB2717- 2 -LRB103 30866 LNS 57379 b

1    (765 ILCS 910/7)  (from Ch. 17, par. 4907)



2    Sec. 7. 
The borrower shall not have the right to terminate 
3any such arrangement
under Section 5 in conjunction with 
4mortgages insured, guaranteed, supplemented,
or assisted by 
5the State of Illinois or the federal government that require

6an escrow arrangement for their continuation. The borrower 
7shall not have the right to terminate any such arrangement 
8under Section 5 in conjunction with a mortgage loan that is a 
9higher-priced mortgage loan as defined in Title 12 CFR Part 
101026, as amended, unless the borrower has met all of the 
11conditions for cancellation of an escrow account for a 
12higher-priced mortgage loan in Title 12 CFR Part 1026, as 
13amended. 

14(Source: P.A. 79-625.)

 
 
15    Section 99. Effective date. This Act takes effect upon 
16becoming law.