Synopsis As Introduced Amends the Residential Mortgage License Act of 1987. Provides that no licensee may make, provide, or arrange a mortgage loan with a prepayment penalty (rather than permitting prepayment penalties under specified conditions). Provides that prepayment penalties are prohibited in connection with the sale or destruction of a dwelling secured by a residential mortgage loan. Amends the High Risk Home Loan Act to provide that for any loan that is subject to the provisions of the Act and is not subject to the provisions of the Home Ownership and Equity Protection Act of 1994, no lender shall make a high risk home loan that includes a penalty provision (rather than permitting prepayment penalties under specified conditions). Amends the Interest Act. Deletes a provision providing that notwithstanding specified provisions, the lender, in the case of any nonexempt residential mortgage loan, shall have the right to include a prepayment penalty that meets specified criteria.
Replaces everything after the enacting clause. Amends the Consumer Installment Loan Act. Changes provisions concerning the licensure of a licensee. Changes provisions concerning permitted charges. Adds provisions concerning small consumer loans with respect to permitted charges, terms, and loan amounts. Adds provisions concerning the verification of a borrower's ability to repay a small consumer loan. Contains provisions concerning the prohibition against accepting certain checks. Amends the Illinois Financial Services Development Act to change the definition of the term "financial institution". Amends the Payday Loan Reform Act to make changes concerning loan terms, permitted fees, borrower verification, consumer reporting services qualification bonding, required disclosures, default, licensure of licensees, and prohibited acts. Effective 9 months after becoming law.
Senate Floor Amendment No. 3 Changes a reference of "financial institution" to "licensee". Restores current law with respect to the prohibition against a lender charging more than $15.50 per $100 loaned on any payday loan over the term of the loan.
Senate Floor Amendment No. 4 Changes a reference of "financial institution" to "licensee". Makes changes in a provision prohibiting certain lender charging practices. Provides that no lender may charge more than $15.50 per $100 loaned on any payday loan or more than $15.50 per $100 on the initial principal balance and on the principal balances scheduled to be outstanding during any installment period on any installment payday loan. Provides that, except for installment payday loans and except as provided in the provisions concerning the right to cancel future payment obligations, this charge is considered fully earned as of the date on which the loan is made. Provides that the disclosed annual percentage rate shall be applied to the principal balances outstanding from time to time. Provides that no finance charge may be imposed after the final scheduled maturity date. Provides that when any loan contract is paid in full, the licensee shall refund any unearned finance charge. Makes other changes.