Sen. Jacqueline Y. Collins

Filed: 4/2/2008

 

 


 

 


 
09500SB1998sam001 LRB095 18639 MJR 48529 a

1
AMENDMENT TO SENATE BILL 1998

2     AMENDMENT NO. ______. Amend Senate Bill 1998 on page 1,
3 line 8, by replacing "Section 1-1.5" with "Sections 1-1.5 and
4 5-20 and Article VIII"; and
 
5 on page 17, immediately below line 16, by inserting the
6 following:
7     "(jj) "HUD-approved housing counselor" means a counselor
8 employed by a housing counseling agency approved by the United
9 States Department of Housing and Urban Development."; and
 
10 on page 70, immediately below line 21, by inserting the
11 following:
 
12     "(205 ILCS 635/5-20 new)
13     Sec. 5-20. Counseling prior to perfecting foreclosure
14 proceedings.
15     (a) If a mortgage loan becomes delinquent by more than 30

 

 

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1 days, the servicer shall send a notice advising the borrower
2 that he or she may wish to seek HUD-approved housing
3 counseling.
4     (b) The notice required in subsection (a) of this Section
5 shall state the date on which the notice was mailed and state
6 the following in 14-point type:
7     "YOUR LOAN IS OR WAS MORE THAN 30 DAYS PAST DUE. YOU MAY BE
8 EXPERIENCING FINANCIAL DIFFICULTY. IT MAY BE IN YOUR BEST
9 INTEREST TO SEEK HUD-APPROVED HOUSING COUNSELING. YOU HAVE A
10 GRACE PERIOD OF 30 DAYS FROM THE DATE OF THIS FORM TO OBTAIN A
11 HUD-APPROVED HOUSING COUNSELOR. DURING THE GRACE PERIOD, THE
12 LAW PROHIBITS US FROM TAKING ANY LEGAL ACTION AGAINST YOU. A
13 LIST OF HUD-APPROVED HOUSING COUNSELORS MAY BE OBTAINED FROM
14 THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT OR FROM
15 THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL
16 REGULATION."
17     No language, other than the language prescribed in this
18 subsection (b), shall be included in the notice.
19     (c) Upon mailing the notice provided for under subsection
20 (b), the lender, servicer, or lender's agent shall not
21 institute legal action under Part 15 of Article XV of the Code
22 of Civil Procedure for 30 days. Only one 30-day period of
23 forbearance is allowed under this subsection (c) per subject
24 loan.
25     (d) If, within the 30-day period provided under subsection
26 (c) of this Section, a HUD-approved housing counselor notifies

 

 

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1 the lender, servicer, or lender's agent that the borrower is
2 seeking HUD-approved housing counseling, then the lender,
3 servicer, or lender's agent shall not institute legal action
4 under Part 15 of Article XV of the Code of Civil Procedure for
5 30 days after the date of that notice. During the 30-period
6 provided under this subsection (d), the lender, servicer, or
7 lender's agent shall attempt to agree to a debt management plan
8 with the borrower. If the lender, servicer, or lender's agent
9 and the borrower agree to a debt management plan, then the
10 lender, servicer, or lender's agent shall not institute legal
11 action under Part 15 of Article XV of the Code of Civil
12 Procedure for as long as the debt management plan is complied
13 with by the borrower.
14     The agreed debt management plan must be in writing and
15 signed by the lender, servicer, or lender's agent, the
16 HUD-approved housing counselor, and the borrower. No
17 modification of an approved debt management plan can be made
18 without the mutual agreement of the lender, servicer, or
19 lender's agent, the HUD-approved housing counselor, and the
20 borrower.
21     Upon written notice to the lender, servicer, or lender's
22 agent, the borrower may change HUD-approved housing
23 counselors.
24     (e) If the borrower fails to comply with the agreed debt
25 management plan, then nothing in this Section shall be
26 construed to impair the legal right of the lender, servicer, or

 

 

09500SB1998sam001 - 4 - LRB095 18639 MJR 48529 a

1 lender's agent to enforce the contract."; and
 
2 on page 71, immediately below line 23, by inserting the
3 following:
 
4     "(205 ILCS 635/Art. VIII heading new)
5
ARTICLE VIII. SERVICER REPORTING

 
6     (205 ILCS 635/8-1 new)
7     Sec. 8-1. Servicer reporting; requirements. A licensee
8 acting as a servicer shall compile and submit to the Secretary
9 on or before the twentieth business day of each month a report
10 on a form required by the Secretary that contains all of
11 following information for the preceding month, or as otherwise
12 indicated:
13         (1) The number of mortgage loans the licensee is
14     servicing.
15         (2) The number of mortgage loans that the licensee is
16     servicing that are in payment default and a breakdown of
17     these mortgage loans by length of payment delinquency
18     including 30-day, 60-day, and 90-day and greater
19     delinquencies.
20         (3) Information on loss mitigation activities
21     undertaken, including, but not limited to, the following:
22             (A) the number and identification of mortgage
23         loans that were refinanced into more affordable or

 

 

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1         fixed mortgage loans;
2             (B)the number and identification of mortgage loans
3         for which the homeowner has sought credit or housing
4         counseling, if known;
5             (C) the number of workout arrangements entered
6         into by the licensee in connection with mortgage loans;
7             (D) a description of the types of workout
8         arrangements, including mortgage loan modifications,
9         and the percentage of each type of workout arrangement
10         entered into; and
11             (E) the proactive steps taken by the licensee to
12         identify borrowers at a heightened risk of default,
13         such as those with impending interest rate resets,
14         including, but not limited to, contacts with borrowers
15         to assess their ability to repay their mortgage loan
16         obligations.
17         (4) The number of foreclosure actions commenced in this
18     State in connection with mortgage loans it is servicing.
19         (5) Information regarding the types and volume of
20     adjustable rate mortgage loans that the licensee is
21     servicing.
22         (6) Any other information that the Secretary may deem
23     necessary, including geographic information regarding
24     applicable mortgage loans.
 
25     (205 ILCS 635/8-2 new)

 

 

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1     Sec. 8-2. Public review of reports. The Secretary may
2 publish, for public review, the report, or any information
3 contained in the report, required under Section 8-1 of this
4 Act, except personally-identifying information regarding
5 borrowers.
 
6     (205 ILCS 635/8-3 new)
7     Sec. 8-3. Repeal. This Article is repealed on December 31,
8 2010.".