97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1018

 

Introduced 01/31/11, by Rep. Michael J. Madigan

 

SYNOPSIS AS INTRODUCED:
 
815 ILCS 137/15

    Amends the High Risk Home Loan Act. Makes a technical change in a Section concerning the prohibition on certain home loans.


LRB097 03838 AEK 43876 b

 

 

A BILL FOR

 

HB1018LRB097 03838 AEK 43876 b

1    AN ACT concerning business.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The High Risk Home Loan Act is amended by
5changing Section 15 as follows:
 
6    (815 ILCS 137/15)
7    Sec. 15. Ability to repay. A creditor or broker shall not
8transfer, deal in, offer, or make a high risk home loan if the
9the creditor or broker does not believe at the time the loan is
10consummated that the borrower will be able to make the
11scheduled payments to repay the obligation based upon a
12consideration of his or her current and expected income,
13current obligations, employment status, and other financial
14resources (other than the borrower's equity in the dwelling
15that secures repayment of the loan). A borrower shall be
16presumed to be able to repay the loan if, at the time the loan
17is consummated, or at the time of the first rate adjustment, in
18the case of a lower introductory interest rate, the borrower's
19scheduled monthly payments on the loan (including principal,
20interest, taxes, insurance, and assessments), combined with
21the scheduled payments for all other disclosed debts, do not
22exceed 50% of the borrower's monthly gross income.
23(Source: P.A. 93-561, eff. 1-1-04.)