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1 | AN ACT concerning regulation.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 1. Short title. This Act may be cited as the | ||||||
5 | Reverse Mortgage Act. | ||||||
6 | Section 5. General definitions. As used in this Act, unless | ||||||
7 | the context otherwise requires:
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8 | "Borrower" means a natural person who seeks or obtains a | ||||||
9 | reverse mortgage.
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10 | "Homestead property" means the domicile and contiguous | ||||||
11 | real estate owned and occupied by the borrower. "Homestead | ||||||
12 | property" includes a manufactured home as defined in | ||||||
13 | subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
14 | Code that is real property under Section 5-35 of the Conveyance | ||||||
15 | and Encumbrance of Manufactured Homes as Real Property and | ||||||
16 | Severance Act.
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17 | "Lender" means a natural or artificial person who | ||||||
18 | transfers, deals in, offers, or makes a reverse mortgage. | ||||||
19 | "Lender" includes, but is not limited to, creditors and brokers | ||||||
20 | who transfer, deal in, offer, or make reverse mortgages. | ||||||
21 | "Lender" does not include purchasers, assignees, or subsequent | ||||||
22 | holders of reverse mortgages.
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23 | "Real property" includes a manufactured home as defined in |
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1 | subdivision (53) of Section 9-102 of the Uniform Commercial | ||||||
2 | Code that is real property under Section 5-35 of the Conveyance | ||||||
3 | and Encumbrance of Manufactured Homes as Real Property and | ||||||
4 | Severance Act.
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5 | "Reverse mortgage" means a non-recourse loan, secured by | ||||||
6 | real property or a homestead property, that complies with all | ||||||
7 | of the following:
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8 | (1) Provides cash advances to a borrower for the | ||||||
9 | purchase of the home or based on the equity in a borrower's | ||||||
10 | owner-occupied principal residence, provided that it is a | ||||||
11 | residence with not more than 4 units.
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12 | (2) Requires no payment of principal or interest until | ||||||
13 | the entire loan becomes due and payable.
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14 | Section 10. Reverse mortgages.
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15 | (a) Reverse mortgage loans shall be subject to all of the | ||||||
16 | following provisions:
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17 | (1) Payment, in whole or in part, shall be permitted | ||||||
18 | without penalty at any time during the term of the | ||||||
19 | mortgage.
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20 | (2) A reverse mortgage may provide for an interest rate | ||||||
21 | that is fixed or adjustable and may provide for interest | ||||||
22 | that is contingent on appreciation in the value of the | ||||||
23 | property.
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24 | (3) If a reverse mortgage provides for periodic | ||||||
25 | advances to a borrower, the advances may not be reduced in |
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1 | amount or number based on any adjustment in the interest | ||||||
2 | rate.
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3 | (4) A reverse mortgage may be subject to any additional | ||||||
4 | terms and conditions imposed by a lender that are required | ||||||
5 | under the provisions of the federal Housing and Community | ||||||
6 | Development Act of 1987 to enable the lender to obtain | ||||||
7 | federal government insurance on the mortgage if a loan is | ||||||
8 | to be insured under that Act.
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9 | (b) The repayment obligation under a reverse mortgage is | ||||||
10 | subject to all of the following:
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11 | (1) Temporary absences from the home not exceeding 60 | ||||||
12 | consecutive days shall not cause the mortgage to become due | ||||||
13 | and payable.
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14 | (2) Temporary absences from the home exceeding 60 days, | ||||||
15 | but not exceeding one year, shall not cause the mortgage to | ||||||
16 | become due and payable, provided that the borrower has | ||||||
17 | taken action that secures the home in a manner satisfactory | ||||||
18 | to the lender.
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19 | (c) A reverse mortgage shall become due and payable upon | ||||||
20 | the occurrence of any of the following events, unless the | ||||||
21 | maturity date has been deferred under the Federal Housing | ||||||
22 | Administration's Home Equity Conversion Mortgage Program:
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23 | (1) The property securing the loan is sold.
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24 | (2) All borrowers cease to occupy the home as a | ||||||
25 | principal residence.
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26 | (3) A fixed maturity date agreed to by the lender and |
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1 | the borrower is reached.
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2 | (4) Default by the borrower in the performance of its | ||||||
3 | obligations under the loan agreement.
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4 | (5) The death of the borrower or, for homestead | ||||||
5 | properties in joint tenancy, the death of the last | ||||||
6 | surviving joint tenant who had an interest in the property | ||||||
7 | at the time the loan was initiated.
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8 | Section 15. Reverse mortgage disclosures. | ||||||
9 | (a) The Office of the Attorney General shall develop the | ||||||
10 | content and format of the following 2 documents regarding | ||||||
11 | reverse mortgage loans for the purpose of consumer education: | ||||||
12 | (1) An educational document providing independent | ||||||
13 | consumer information regarding reverse mortgages, | ||||||
14 | potential alternatives to reverse mortgages, and the | ||||||
15 | availability of independent counseling services, including | ||||||
16 | services provided by nonprofit agencies certified by the | ||||||
17 | federal government to provide required counseling for | ||||||
18 | reverse mortgages insured by the U.S. Federal Government. | ||||||
19 | The document shall also include a statement that the terms | ||||||
20 | of a reverse mortgage may adversely affect the applicant's | ||||||
21 | eligibility to obtain a tax deferral under the Senior | ||||||
22 | Citizens Real Estate Tax Deferral Act. | ||||||
23 | (2) A document regarding the availability of | ||||||
24 | counseling services that shall be in at least 12-point | ||||||
25 | font, containing contact information (including agency |
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1 | name, address, telephone number, and website) for all | ||||||
2 | agencies with an office in Illinois that are approved by | ||||||
3 | the U.S. Department of Housing and Urban Development (HUD) | ||||||
4 | to conduct reverse mortgage counseling. This document | ||||||
5 | shall contain the following statement: | ||||||
6 | "IMPORTANT NOTICE: Under Illinois law, reverse mortgages | ||||||
7 | are non-recourse loans secured by real or homestead property. | ||||||
8 | Reverse mortgages insured by the U.S. Federal Government, known | ||||||
9 | as Home Equity Conversion Mortgages or HECM loans, require | ||||||
10 | people considering reverse mortgages to get counseling from a | ||||||
11 | federally approved counselor working for a HECM counseling | ||||||
12 | agency prior to applying for the loan. The purpose of the | ||||||
13 | counseling is to help the prospective borrower understand the | ||||||
14 | financial implications, alternatives to securing a reverse | ||||||
15 | mortgage, borrower obligations, costs of obtaining the loan, | ||||||
16 | repayment conditions and other issues. Counseling can also be a | ||||||
17 | benefit to people considering reverse mortgages not insured by | ||||||
18 | the federal government. | ||||||
19 | There are advantages to receiving this counseling in | ||||||
20 | person, but it can also be conducted over the telephone. | ||||||
21 | Illinois State law requires reverse mortgage lenders to provide | ||||||
22 | potential reverse mortgage borrowers with a list including | ||||||
23 | contact information for all agencies with an office in Illinois | ||||||
24 | that are approved by the U.S. Department of Housing and Urban | ||||||
25 | Development (HUD) to conduct reverse mortgage counseling. | ||||||
26 | Contact information for approved counseling agencies located |
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1 | outside of Illinois is available from HUD.". | ||||||
2 | (b) The documents shall be updated and revised as often as | ||||||
3 | deemed necessary by the Office of the Attorney General. | ||||||
4 | (c) At the time of the initial inquiry regarding a reverse | ||||||
5 | mortgage or, if not practically feasible, at the time the | ||||||
6 | lender provides additional written information about reverse | ||||||
7 | mortgages, a lender shall provide to the borrower the documents | ||||||
8 | prepared by the Office of the Attorney General under this | ||||||
9 | Section. | ||||||
10 | Section 20. Reverse mortgages cooling-off period.
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11 | (a) Any written commitment provided by the lender to the | ||||||
12 | borrower must contain the material terms and conditions of the | ||||||
13 | reverse mortgage. That commitment may be subject to a | ||||||
14 | satisfactory appraisal and the borrower meeting standard | ||||||
15 | closing conditions.
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16 | (b) A borrower shall not be bound for 3 full business days | ||||||
17 | after the borrower's acceptance, in writing, of a lender's | ||||||
18 | written commitment to make a reverse mortgage loan and may not | ||||||
19 | be required to close or proceed with the loan during that time | ||||||
20 | period. A borrower may not waive the provisions of this | ||||||
21 | subsection (b).
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22 | (c) At the time of making a written commitment, the lender | ||||||
23 | shall provide the borrower a separate document in at least | ||||||
24 | 12-point font that contains the following statement: | ||||||
25 | "IMPORTANT NOTICE REGARDING THE COOLING-OFF PERIOD: Illinois |
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1 | State law requires a 3-day cooling-off period for reverse | ||||||
2 | mortgage loans, during which time a potential borrower cannot | ||||||
3 | be required to close or proceed with the loan. The purpose of | ||||||
4 | this requirement is to provide potential borrowers with 3 | ||||||
5 | business days to consider their decision whether to secure a | ||||||
6 | reverse mortgage or not. Potential borrowers may want to seek | ||||||
7 | additional information and an analysis of the commitment from a | ||||||
8 | reverse mortgage counselor during this 3-day period. The 3-day | ||||||
9 | cooling-off period cannot be waived.".
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10 | Section 25. Reverse mortgages; restriction on | ||||||
11 | cross-selling. No lender may:
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12 | (1) require the purchase of an annuity, investment, | ||||||
13 | life insurance, or long-term care insurance product as a | ||||||
14 | condition of obtaining a reverse mortgage loan; however, | ||||||
15 | nothing in this paragraph precludes a lender from requiring | ||||||
16 | the borrower to purchase property and casualty insurance, | ||||||
17 | title insurance, flood insurance, or other products meant | ||||||
18 | to insure or protect the value of the home and that are | ||||||
19 | customary for residential mortgage or reverse mortgage | ||||||
20 | transactions on the borrower's residence securing the | ||||||
21 | reverse mortgage loan;
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22 | (2) enter into any agreement to make a reverse mortgage | ||||||
23 | loan that obligates the borrower to purchase an annuity, | ||||||
24 | investment, life insurance, or long-term care insurance | ||||||
25 | product; or
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1 | (3) receive compensation out of reverse mortgage | ||||||
2 | proceeds for providing the borrower with information | ||||||
3 | relating to an annuity, investment, life insurance, | ||||||
4 | long-term care insurance, or property insurance product.
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5 | Section 30. Reverse mortgages; restriction on distribution | ||||||
6 | of loan proceeds. No person, other than a borrower's spouse or | ||||||
7 | partner, who directly or indirectly facilitates, processes, | ||||||
8 | negotiates, assists, encourages, arranges, or otherwise | ||||||
9 | induces consumers to take out a reverse mortgage with a lender | ||||||
10 | may receive any portion of the loan proceeds for any service or | ||||||
11 | product, including for services that fall under the Home Repair | ||||||
12 | and Remodeling Act, other than that for bona fide fees for | ||||||
13 | origination of the loan. This Section shall not prohibit | ||||||
14 | disbursements of loan proceeds in compliance with guidelines, | ||||||
15 | including uses defined as mandatory obligations, under the | ||||||
16 | Federal Housing Administration's Home Equity Conversion | ||||||
17 | Mortgage Program. | ||||||
18 | Section 35. Reverse mortgages; certification requirements.
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19 | (a) No reverse mortgage commitment may be made unless all | ||||||
20 | lenders involved in brokering and making the reverse mortgage | ||||||
21 | loan certify, in writing, that:
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22 | (1) the borrower has received from the lender the | ||||||
23 | document prepared by the Office of the Attorney General | ||||||
24 | required in Section 15 regarding the advisability and |
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1 | availability of independent information and counseling | ||||||
2 | services on reverse mortgages;
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3 | (2) the borrower has received from the lender, at the | ||||||
4 | time a written commitment was made to the applicant to | ||||||
5 | provide a reverse mortgage loan, the disclosure document | ||||||
6 | required in Section 20 regarding the 3-day cooling-off | ||||||
7 | period and that at least 3 business days have passed since | ||||||
8 | the document was provided; the certification shall also | ||||||
9 | include the date the cooling-off period disclosure was | ||||||
10 | provided;
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11 | (3) the reverse mortgage loan does not include any | ||||||
12 | current or future requirement for the applicant to purchase | ||||||
13 | an annuity, investment, life insurance, or long-term care | ||||||
14 | insurance product;
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15 | (4) no compensation has or will be provided to the | ||||||
16 | lender out of reverse mortgage proceeds for providing the | ||||||
17 | borrower with information relating to an annuity, | ||||||
18 | investment, life insurance, long-term care insurance, or | ||||||
19 | property insurance product; and
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20 | (5) to their knowledge, no person, other than a | ||||||
21 | borrower's spouse or partner, who directly or indirectly | ||||||
22 | facilitates, processes, negotiates, assists, encourages, | ||||||
23 | arranges, or otherwise induces consumers to take out a | ||||||
24 | reverse mortgage with a lender has received or will receive | ||||||
25 | any portion of the loan proceeds for any service or | ||||||
26 | product, including for services that fall under the Home |
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1 | Repair and Remodeling Act, other than that for bona fide | ||||||
2 | fees for origination of the loan.
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3 | This Section shall not prohibit disbursements of loan | ||||||
4 | proceeds in compliance with guidelines under the Federal | ||||||
5 | Housing Administration's Home Equity Conversion Mortgage | ||||||
6 | Program, including uses defined as mandatory obligations. | ||||||
7 | (b) The certification regarding these requirements shall | ||||||
8 | be in a separate document in at least 12-point font. The lender | ||||||
9 | shall maintain the certification in an accurate, reproducible, | ||||||
10 | and accessible format for the term of the reverse mortgage.
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11 | Section 40. Enforcement.
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12 | (a) Any violation of this Act shall also be considered an | ||||||
13 | unlawful practice under the Consumer Fraud and Deceptive | ||||||
14 | Business Practices Act. Only the Attorney General may enforce | ||||||
15 | violations of this Act. The Attorney General shall only find a | ||||||
16 | violation of this Act if the conduct constitutes a pattern or | ||||||
17 | practice.
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18 | (b) Any violation of this Act by a licensee or residential | ||||||
19 | mortgage licensee under the Residential Mortgage License Act of | ||||||
20 | 1987 shall also be considered a violation of the Residential | ||||||
21 | Mortgage License Act of 1987.
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22 | Section 900. The Illinois Act on the Aging is amended by | ||||||
23 | changing Section 4.01 as follows:
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1 | (20 ILCS 105/4.01) (from Ch. 23, par. 6104.01)
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2 | Sec. 4.01. Additional powers and duties of the Department. | ||||||
3 | In addition
to powers and duties otherwise provided by law, the | ||||||
4 | Department shall have the
following powers and duties:
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5 | (1) To evaluate all programs, services, and facilities for | ||||||
6 | the aged
and for minority senior citizens within the State and | ||||||
7 | determine the extent
to which present public or private | ||||||
8 | programs, services and facilities meet the
needs of the aged.
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9 | (2) To coordinate and evaluate all programs, services, and | ||||||
10 | facilities
for the Aging and for minority senior citizens | ||||||
11 | presently furnished by State
agencies and make appropriate | ||||||
12 | recommendations regarding such services, programs
and | ||||||
13 | facilities to the Governor and/or the General Assembly.
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14 | (2-a) To request, receive, and share information | ||||||
15 | electronically through the use of data-sharing agreements for | ||||||
16 | the purpose of (i) establishing and verifying the initial and | ||||||
17 | continuing eligibility of older adults to participate in | ||||||
18 | programs administered by the Department; (ii) maximizing | ||||||
19 | federal financial participation in State assistance | ||||||
20 | expenditures; and (iii) investigating allegations of fraud or | ||||||
21 | other abuse of publicly funded benefits. Notwithstanding any | ||||||
22 | other law to the contrary, but only for the limited purposes | ||||||
23 | identified in the preceding sentence, this paragraph (2-a) | ||||||
24 | expressly authorizes the exchanges of income, identification, | ||||||
25 | and other pertinent eligibility information by and among the | ||||||
26 | Department and the Social Security Administration, the |
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1 | Department of Employment Security, the Department of | ||||||
2 | Healthcare and Family Services, the Department of Human | ||||||
3 | Services, the Department of Revenue, the Secretary of State, | ||||||
4 | the U.S. Department of Veterans Affairs, and any other | ||||||
5 | governmental entity. The confidentiality of information | ||||||
6 | otherwise shall be maintained as required by law. In addition, | ||||||
7 | the Department on Aging shall verify employment information at | ||||||
8 | the request of a community care provider for the purpose of | ||||||
9 | ensuring program integrity under the Community Care Program. | ||||||
10 | (3) To function as the sole State agency to develop a | ||||||
11 | comprehensive
plan to meet the needs of the State's senior | ||||||
12 | citizens and the State's
minority senior citizens.
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13 | (4) To receive and disburse State and federal funds made | ||||||
14 | available
directly to the Department including those funds made | ||||||
15 | available under the
Older Americans Act and the Senior | ||||||
16 | Community Service Employment Program for
providing services | ||||||
17 | for senior citizens and minority senior citizens or for
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18 | purposes related thereto, and shall develop and administer any | ||||||
19 | State Plan
for the Aging required by federal law.
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20 | (5) To solicit, accept, hold, and administer in behalf of | ||||||
21 | the State
any grants or legacies of money, securities, or | ||||||
22 | property to the State of
Illinois for services to senior | ||||||
23 | citizens and minority senior citizens or
purposes related | ||||||
24 | thereto.
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25 | (6) To provide consultation and assistance to communities, | ||||||
26 | area agencies
on aging, and groups developing local services |
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1 | for senior citizens and
minority senior citizens.
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2 | (7) To promote community education regarding the problems | ||||||
3 | of senior
citizens and minority senior citizens through | ||||||
4 | institutes, publications,
radio, television and the local | ||||||
5 | press.
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6 | (8) To cooperate with agencies of the federal government in | ||||||
7 | studies
and conferences designed to examine the needs of senior | ||||||
8 | citizens and minority
senior citizens and to prepare programs | ||||||
9 | and facilities to meet those needs.
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10 | (9) To establish and maintain information and referral | ||||||
11 | sources
throughout the State when not provided by other | ||||||
12 | agencies.
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13 | (10) To provide the staff support that may reasonably be | ||||||
14 | required
by the Council.
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15 | (11) To make and enforce rules and regulations necessary | ||||||
16 | and proper
to the performance of its duties.
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17 | (12) To establish and fund programs or projects or | ||||||
18 | experimental facilities
that are specially designed as | ||||||
19 | alternatives to institutional care.
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20 | (13) To develop a training program to train the counselors | ||||||
21 | presently
employed by the Department's aging network to provide | ||||||
22 | Medicare
beneficiaries with counseling and advocacy in | ||||||
23 | Medicare, private health
insurance, and related health care | ||||||
24 | coverage plans. The Department shall
report to the General | ||||||
25 | Assembly on the implementation of the training
program on or | ||||||
26 | before December 1, 1986.
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1 | (14) To make a grant to an institution of higher learning | ||||||
2 | to study the
feasibility of establishing and implementing an | ||||||
3 | affirmative action
employment plan for the recruitment, | ||||||
4 | hiring, training and retraining of
persons 60 or more years old | ||||||
5 | for jobs for which their employment would not
be precluded by | ||||||
6 | law.
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7 | (15) To present one award annually in each of the | ||||||
8 | categories of community
service, education, the performance | ||||||
9 | and graphic arts, and the labor force
to outstanding Illinois | ||||||
10 | senior citizens and minority senior citizens in
recognition of | ||||||
11 | their individual contributions to either community service,
| ||||||
12 | education, the performance and graphic arts, or the labor | ||||||
13 | force. The awards
shall be presented to 4 senior citizens and | ||||||
14 | minority senior citizens
selected from a list of 44 nominees | ||||||
15 | compiled annually by
the Department. Nominations shall be | ||||||
16 | solicited from senior citizens'
service providers, area | ||||||
17 | agencies on aging, senior citizens'
centers, and senior | ||||||
18 | citizens' organizations. The Department shall establish a | ||||||
19 | central location within
the State to be designated as the | ||||||
20 | Senior Illinoisans Hall of Fame for the
public display of all | ||||||
21 | the annual awards, or replicas thereof.
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22 | (16) To establish multipurpose senior centers through area | ||||||
23 | agencies on
aging and to fund those new and existing | ||||||
24 | multipurpose senior centers
through area agencies on aging, the | ||||||
25 | establishment and funding to begin in
such areas of the State | ||||||
26 | as the Department shall designate by rule and as
specifically |
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1 | appropriated funds become available.
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2 | (17) (Blank). To develop the content and format of the | ||||||
3 | acknowledgment regarding
non-recourse reverse mortgage loans | ||||||
4 | under Section 6.1 of the Illinois
Banking Act; to provide | ||||||
5 | independent consumer information on reverse
mortgages and | ||||||
6 | alternatives; and to refer consumers to independent
counseling | ||||||
7 | services with expertise in reverse mortgages.
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8 | (18) To develop a pamphlet in English and Spanish which may | ||||||
9 | be used by
physicians licensed to practice medicine in all of | ||||||
10 | its branches pursuant
to the Medical Practice Act of 1987, | ||||||
11 | pharmacists licensed pursuant to the
Pharmacy Practice Act, and | ||||||
12 | Illinois residents 65 years of age or
older for the purpose of | ||||||
13 | assisting physicians, pharmacists, and patients in
monitoring | ||||||
14 | prescriptions provided by various physicians and to aid persons
| ||||||
15 | 65 years of age or older in complying with directions for | ||||||
16 | proper use of
pharmaceutical prescriptions. The pamphlet may | ||||||
17 | provide space for recording
information including but not | ||||||
18 | limited to the following:
| ||||||
19 | (a) name and telephone number of the patient;
| ||||||
20 | (b) name and telephone number of the prescribing | ||||||
21 | physician;
| ||||||
22 | (c) date of prescription;
| ||||||
23 | (d) name of drug prescribed;
| ||||||
24 | (e) directions for patient compliance; and
| ||||||
25 | (f) name and telephone number of dispensing pharmacy.
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26 | In developing the pamphlet, the Department shall consult |
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1 | with the
Illinois State Medical Society, the Center for | ||||||
2 | Minority Health Services,
the Illinois Pharmacists Association | ||||||
3 | and
senior citizens organizations. The Department shall | ||||||
4 | distribute the
pamphlets to physicians, pharmacists and | ||||||
5 | persons 65 years of age or older
or various senior citizen | ||||||
6 | organizations throughout the State.
| ||||||
7 | (19) To conduct a study of the feasibility of
implementing | ||||||
8 | the Senior Companion Program throughout the State.
| ||||||
9 | (20) The reimbursement rates paid through the community | ||||||
10 | care program
for chore housekeeping services and home care | ||||||
11 | aides
shall be the same.
| ||||||
12 | (21) From funds appropriated to the Department from the | ||||||
13 | Meals on Wheels
Fund, a special fund in the State treasury that | ||||||
14 | is hereby created, and in
accordance with State and federal | ||||||
15 | guidelines and the intrastate funding
formula, to make grants | ||||||
16 | to area agencies on aging, designated by the
Department, for | ||||||
17 | the sole purpose of delivering meals to homebound persons 60
| ||||||
18 | years of age and older.
| ||||||
19 | (22) To distribute, through its area agencies on aging, | ||||||
20 | information
alerting seniors on safety issues regarding | ||||||
21 | emergency weather
conditions, including extreme heat and cold, | ||||||
22 | flooding, tornadoes, electrical
storms, and other severe storm | ||||||
23 | weather. The information shall include all
necessary | ||||||
24 | instructions for safety and all emergency telephone numbers of
| ||||||
25 | organizations that will provide additional information and | ||||||
26 | assistance.
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1 | (23) To develop guidelines for the organization and | ||||||
2 | implementation of
Volunteer Services Credit Programs to be | ||||||
3 | administered by Area Agencies on
Aging or community based | ||||||
4 | senior service organizations. The Department shall
hold public | ||||||
5 | hearings on the proposed guidelines for public comment, | ||||||
6 | suggestion,
and determination of public interest. The | ||||||
7 | guidelines shall be based on the
findings of other states and | ||||||
8 | of community organizations in Illinois that are
currently | ||||||
9 | operating volunteer services credit programs or demonstration
| ||||||
10 | volunteer services credit programs. The Department shall offer | ||||||
11 | guidelines for
all aspects of the programs including, but not | ||||||
12 | limited to, the following:
| ||||||
13 | (a) types of services to be offered by volunteers;
| ||||||
14 | (b) types of services to be received upon the | ||||||
15 | redemption of service
credits;
| ||||||
16 | (c) issues of liability for the volunteers and the | ||||||
17 | administering
organizations;
| ||||||
18 | (d) methods of tracking service credits earned and | ||||||
19 | service credits
redeemed;
| ||||||
20 | (e) issues of time limits for redemption of service | ||||||
21 | credits;
| ||||||
22 | (f) methods of recruitment of volunteers;
| ||||||
23 | (g) utilization of community volunteers, community | ||||||
24 | service groups, and
other resources for delivering | ||||||
25 | services to be received by service credit
program clients;
| ||||||
26 | (h) accountability and assurance that services will be |
| |||||||
| |||||||
1 | available to
individuals who have earned service credits; | ||||||
2 | and
| ||||||
3 | (i) volunteer screening and qualifications.
| ||||||
4 | The Department shall submit a written copy of the guidelines to | ||||||
5 | the General
Assembly by July 1, 1998.
| ||||||
6 | (24) To function as the sole State agency to receive and | ||||||
7 | disburse State and federal funds for providing adult protective | ||||||
8 | services in a domestic living situation in accordance with the | ||||||
9 | Adult Protective Services Act. | ||||||
10 | (25) To hold conferences, trainings, and other programs for | ||||||
11 | which the Department shall determine by rule a reasonable fee | ||||||
12 | to cover related administrative costs. Rules to implement the | ||||||
13 | fee authority granted by this paragraph (25) must be adopted in | ||||||
14 | accordance with all provisions of the Illinois Administrative | ||||||
15 | Procedure Act and all rules and procedures of the Joint | ||||||
16 | Committee on Administrative Rules; any purported rule not so | ||||||
17 | adopted, for whatever reason, is unauthorized. | ||||||
18 | (Source: P.A. 98-8, eff. 5-3-13; 98-49, eff. 7-1-13; 98-380, | ||||||
19 | eff. 8-16-13; 98-756, eff. 7-16-14.)
| ||||||
20 | (205 ILCS 5/5a rep.)
| ||||||
21 | (205 ILCS 5/6.1 rep.)
| ||||||
22 | (205 ILCS 5/6.2 rep.)
| ||||||
23 | Section 905. The Illinois Banking Act is amended by | ||||||
24 | repealing Sections 5a, 6.1, and 6.2.
|
| |||||||
| |||||||
1 | (205 ILCS 205/1010 rep.)
| ||||||
2 | Section 910. The Savings Bank Act is amended by repealing | ||||||
3 | Section 1010. | ||||||
4 | Section 915. The Illinois Credit Union Act is amended by | ||||||
5 | changing Section 46 as follows: | ||||||
6 | (205 ILCS 305/46) (from Ch. 17, par. 4447)
| ||||||
7 | Sec. 46. Loans and interest rate.
| ||||||
8 | (1) A credit union may make loans
to its members for such | ||||||
9 | purpose and upon such security and terms, including
rates of | ||||||
10 | interest, as the credit committee, credit manager, or loan | ||||||
11 | officer
approves.
Notwithstanding the provisions of any other | ||||||
12 | law in connection with extensions
of credit, a credit union may | ||||||
13 | elect to
contract for and receive interest and fees and other | ||||||
14 | charges for extensions of
credit subject only to the provisions | ||||||
15 | of this Act and rules promulgated under
this Act, except that | ||||||
16 | extensions of credit secured by residential real estate
shall | ||||||
17 | be subject to the laws applicable thereto.
The rates of | ||||||
18 | interest to be charged on loans to members shall be
set by the | ||||||
19 | board of directors of each individual credit union in | ||||||
20 | accordance with Section 30 of this Act and such
rates may be | ||||||
21 | less than, but may not exceed, the maximum rate set forth in
| ||||||
22 | this Section. A borrower may repay his loan prior to maturity, | ||||||
23 | in whole or
in part, without penalty. The credit contract may | ||||||
24 | provide for the payment
by the member and receipt by the credit |
| |||||||
| |||||||
1 | union of all costs and
disbursements, including reasonable | ||||||
2 | attorney's fees and collection agency
charges, incurred by the | ||||||
3 | credit union to collect or enforce the debt in the
event of a | ||||||
4 | delinquency by the member, or in the event of a breach of any
| ||||||
5 | obligation of the member under the credit contract. A | ||||||
6 | contingency or
hourly arrangement established under an | ||||||
7 | agreement entered into by a credit
union with an attorney or | ||||||
8 | collection agency to collect a loan of a member
in default | ||||||
9 | shall be presumed prima facie reasonable.
| ||||||
10 | (2) Credit unions may make loans based upon the security of | ||||||
11 | any
interest or equity in real estate, subject to rules and | ||||||
12 | regulations
promulgated by the Secretary. In any contract or | ||||||
13 | loan which
is secured by a mortgage, deed of
trust, or | ||||||
14 | conveyance in the nature of a mortgage, on residential real
| ||||||
15 | estate, the interest which is computed, calculated, charged, or | ||||||
16 | collected
pursuant to such contract or loan, or pursuant to any | ||||||
17 | regulation or rule
promulgated pursuant to this Act, may not be | ||||||
18 | computed, calculated, charged
or collected for any period of | ||||||
19 | time occurring after the date on which the
total indebtedness, | ||||||
20 | with the exception of late payment penalties, is paid
in full.
| ||||||
21 | For purposes of this subsection (2) of this Section 46, a | ||||||
22 | prepayment
shall mean the payment of the total indebtedness, | ||||||
23 | with the exception of
late payment penalties if incurred or | ||||||
24 | charged, on any date before the date
specified in the contract | ||||||
25 | or loan agreement on which the total indebtedness
shall be paid | ||||||
26 | in full, or before the date on which all payments, if timely
|
| |||||||
| |||||||
1 | made, shall have been made. In the event of a prepayment of the
| ||||||
2 | indebtedness which is made on a date
after the date on which | ||||||
3 | interest on the indebtedness was last computed,
calculated, | ||||||
4 | charged, or collected but before the next date on which | ||||||
5 | interest
on the indebtedness was to be calculated, computed, | ||||||
6 | charged, or collected,
the lender may calculate, charge and | ||||||
7 | collect interest on the indebtedness
for the period which | ||||||
8 | elapsed between the date on which the prepayment is
made and | ||||||
9 | the date on which interest on the indebtedness was last | ||||||
10 | computed,
calculated, charged or collected at a rate equal to | ||||||
11 | 1/360 of the annual
rate for each day which so elapsed, which | ||||||
12 | rate shall be applied to the
indebtedness outstanding as of the | ||||||
13 | date of prepayment. The lender shall
refund to the borrower any | ||||||
14 | interest charged or collected which exceeds that
which the | ||||||
15 | lender may charge or collect pursuant to the preceding | ||||||
16 | sentence.
The provisions of this amendatory Act of 1985 shall | ||||||
17 | apply only to contracts
or loans entered into on or after the | ||||||
18 | effective date of this amendatory
Act.
| ||||||
19 | (3) (Blank). Notwithstanding any other provision of this | ||||||
20 | Act, a credit union
authorized under this Act to make loans | ||||||
21 | secured by an interest or equity in
real estate may engage in | ||||||
22 | making "reverse mortgage" loans to persons for
the purpose of | ||||||
23 | making home improvements or repairs, paying insurance
premiums | ||||||
24 | or paying real estate taxes on the homestead properties
of such | ||||||
25 | persons. If made, such loans shall be made on such terms and
| ||||||
26 | conditions as the credit union shall determine and as shall be |
| |||||||
| |||||||
1 | consistent
with the provisions of this Section and such rules | ||||||
2 | and regulations as the Secretary
shall promulgate hereunder. | ||||||
3 | For purposes of this Section, a
"reverse mortgage" loan shall | ||||||
4 | be a loan extended on the basis of existing
equity in homestead | ||||||
5 | property and secured by a mortgage on such property.
Such loans | ||||||
6 | shall be repaid upon the sale of the property or upon the death
| ||||||
7 | of the owner or, if the property is in joint tenancy, upon the | ||||||
8 | death of the
last surviving joint tenant who had such an | ||||||
9 | interest in the property at the
time the loan was initiated, | ||||||
10 | provided, however, that the credit union and
its member may by | ||||||
11 | mutual agreement, establish other repayment terms. A
credit | ||||||
12 | union, in making a "reverse mortgage" loan, may add deferred
| ||||||
13 | interest to principal or otherwise provide for the charging of | ||||||
14 | interest or
premiums on such deferred interest. "Homestead" | ||||||
15 | property, for purposes of
this Section, means the domicile and | ||||||
16 | contiguous real estate owned and
occupied by the mortgagor.
| ||||||
17 | (4) Notwithstanding any other provisions of this Act, a | ||||||
18 | credit union
authorized under this Act to make loans secured by | ||||||
19 | an interest or equity
in real property may engage in making | ||||||
20 | revolving credit loans secured by
mortgages or deeds of trust | ||||||
21 | on such real property or by security
assignments of beneficial | ||||||
22 | interests in land trusts.
| ||||||
23 | For purposes of this Section, "revolving credit" has the | ||||||
24 | meaning defined
in Section 4.1 of the Interest Act.
| ||||||
25 | Any mortgage or deed of trust given to secure a revolving | ||||||
26 | credit loan may,
and when so expressed therein shall, secure |
| |||||||
| |||||||
1 | not only the existing indebtedness
but also such future | ||||||
2 | advances, whether such advances are obligatory or to
be made at | ||||||
3 | the option of the lender, or otherwise, as are made within | ||||||
4 | twenty
years from the date thereof, to the same extent as if | ||||||
5 | such future advances
were made on the date of the execution of | ||||||
6 | such mortgage or deed of trust,
although there may be no | ||||||
7 | advance made at the time of execution of such mortgage
or other | ||||||
8 | instrument, and although there may be no indebtedness | ||||||
9 | outstanding
at the time any advance is made. The lien of such | ||||||
10 | mortgage or deed of trust,
as to third persons
without actual | ||||||
11 | notice thereof, shall be valid as to all such indebtedness
and | ||||||
12 | future advances form the time said mortgage or deed of trust is | ||||||
13 | filed
for record in the office of the recorder of deeds or the | ||||||
14 | registrar of titles
of the county where the real property | ||||||
15 | described therein is located. The
total amount of indebtedness | ||||||
16 | that may be so secured may increase or decrease
from time to | ||||||
17 | time, but the total unpaid balance so secured at any one time
| ||||||
18 | shall not exceed a maximum principal amount which must be | ||||||
19 | specified in such
mortgage or deed of trust, plus interest | ||||||
20 | thereon, and any disbursements
made for the payment of taxes, | ||||||
21 | special assessments, or insurance on said
real property, with | ||||||
22 | interest on such disbursements.
| ||||||
23 | Any such mortgage or deed of trust shall be valid and have | ||||||
24 | priority over
all subsequent liens and encumbrances, including | ||||||
25 | statutory liens, except
taxes and assessments levied on said | ||||||
26 | real property.
|
| |||||||
| |||||||
1 | (4-5) For purposes of this Section, "real estate" and "real | ||||||
2 | property" include a manufactured home as defined in subdivision | ||||||
3 | (53) of Section 9-102 of the Uniform Commercial Code which is | ||||||
4 | real property as defined in Section 5-35 of the Conveyance and | ||||||
5 | Encumbrance of Manufactured Homes as Real Property and | ||||||
6 | Severance Act. | ||||||
7 | (5) Compliance with federal or Illinois preemptive laws or | ||||||
8 | regulations
governing loans made by a credit union chartered | ||||||
9 | under this Act shall
constitute compliance with this Act.
| ||||||
10 | (6) Credit unions may make residential real estate mortgage | ||||||
11 | loans on terms and conditions established by the United States | ||||||
12 | Department of Agriculture through its Rural Development | ||||||
13 | Housing and Community Facilities Program. The portion of any | ||||||
14 | loan in excess of the appraised value of the real estate shall | ||||||
15 | be allocable only to the guarantee fee required under the | ||||||
16 | program. | ||||||
17 | (7) For a renewal, refinancing, or restructuring of an | ||||||
18 | existing loan that is secured by an interest or equity in real | ||||||
19 | estate, a new appraisal of the collateral shall not be required | ||||||
20 | when the transaction involves an existing extension of credit | ||||||
21 | at the credit union, no new moneys are advanced other than | ||||||
22 | funds necessary to cover reasonable closing costs, and there | ||||||
23 | has been no obvious or material change in market conditions or | ||||||
24 | physical aspects of the real estate that threatens the adequacy | ||||||
25 | of the credit union's real estate collateral protection after | ||||||
26 | the transaction. |
| |||||||
| |||||||
1 | (Source: P.A. 97-133, eff. 1-1-12; 98-749, eff. 7-16-14; | ||||||
2 | 98-784, eff. 7-24-14; revised 10-2-14.)
| ||||||
3 | (205 ILCS 305/46.1 rep.)
| ||||||
4 | (205 ILCS 305/46.2 rep.)
| ||||||
5 | Section 920. The Illinois Credit Union Act is amended by | ||||||
6 | repealing Sections 46.1 and 46.2. | ||||||
7 | Section 925. The Residential Mortgage License Act of 1987 | ||||||
8 | is amended by adding Section 5-5A as follows: | ||||||
9 | (205 ILCS 635/5-5A new) | ||||||
10 | Sec. 5-5A. Violations of the Reverse Mortgage Act. Any | ||||||
11 | violation of the Reverse Mortgage Act by a residential mortgage | ||||||
12 | licensee shall be considered a violation of this Act.
| ||||||
13 | (205 ILCS 635/5-5 rep.)
| ||||||
14 | Section 930. The Residential Mortgage License Act of 1987 | ||||||
15 | is amended by repealing Section 5-5.
| ||||||
16 | Section 935. The Consumer Fraud and Deceptive Business | ||||||
17 | Practices Act is amended by changing Section 2Z as follows:
| ||||||
18 | (815 ILCS 505/2Z) (from Ch. 121 1/2, par. 262Z)
| ||||||
19 | Sec. 2Z. Violations of other Acts. Any person who knowingly | ||||||
20 | violates
the Automotive Repair Act, the Automotive Collision |
| |||||||
| |||||||
1 | Repair Act,
the Home Repair and Remodeling Act,
the Dance | ||||||
2 | Studio Act,
the Physical Fitness Services Act,
the Hearing | ||||||
3 | Instrument Consumer Protection Act,
the Illinois Union Label | ||||||
4 | Act,
the Job Referral and Job Listing Services Consumer | ||||||
5 | Protection Act,
the Travel Promotion Consumer Protection Act,
| ||||||
6 | the Credit Services Organizations Act,
the Automatic Telephone | ||||||
7 | Dialers Act,
the Pay-Per-Call Services Consumer Protection | ||||||
8 | Act,
the Telephone Solicitations Act,
the Illinois Funeral or | ||||||
9 | Burial Funds Act,
the Cemetery Oversight Act, the Cemetery Care | ||||||
10 | Act,
the Safe and Hygienic Bed Act,
the Pre-Need Cemetery Sales | ||||||
11 | Act,
the High Risk Home Loan Act, the Payday Loan Reform Act, | ||||||
12 | the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section | ||||||
13 | 3-10 of the
Cigarette Tax Act, subsection
(a) or (b) of Section | ||||||
14 | 3-10 of the Cigarette Use Tax Act, the Electronic
Mail Act, the | ||||||
15 | Internet Caller Identification Act, paragraph (6)
of
| ||||||
16 | subsection (k) of Section 6-305 of the Illinois Vehicle Code, | ||||||
17 | Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150, | ||||||
18 | or 18d-153 of the Illinois Vehicle Code, Article 3 of the | ||||||
19 | Residential Real Property Disclosure Act, the Automatic | ||||||
20 | Contract Renewal Act, the Reverse Mortgage Act, or the Personal | ||||||
21 | Information Protection Act commits an unlawful practice within | ||||||
22 | the meaning of this Act.
| ||||||
23 | (Source: P.A. 96-863, eff. 1-19-10; 96-1369, eff. 1-1-11; | ||||||
24 | 96-1376, eff. 7-29-10; 97-333, eff. 8-12-11.) |