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94TH GENERAL ASSEMBLY
State of Illinois
2005 and 2006
HB2056
Introduced 2/14/2005, by Rep. Michael J. Madigan - Barbara Flynn Currie - Susana A Mendoza SYNOPSIS AS INTRODUCED:
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Amends the High Risk Home Loan Act. Makes a technical change in a Section
concerning the prohibition on certain home loans.
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A BILL FOR
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HB2056 |
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LRB094 02758 RXD 32759 b |
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois, |
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| represented in the General Assembly:
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| Section 5. The High Risk Home Loan Act is amended by |
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| changing Section 15 as follows:
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| (815 ILCS 137/15)
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| Sec. 15. Ability to repay. A creditor or broker shall not |
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| transfer, deal
in, offer,
or
make a high risk home loan if the
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| the creditor or broker does not believe at the
time the loan
is
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| consummated that the borrower will be able to make the |
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| scheduled
payments to repay the obligation based upon a |
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| consideration of his or her
current and
expected income, |
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| current obligations, employment status, and other financial
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| resources (other than the borrower's equity in the dwelling |
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| that secures
repayment of the loan). A borrower shall be |
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| presumed to be able to repay the
loan if, at the time the loan |
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| is consummated, or at the time of the first rate
adjustment, in |
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| the case of a lower introductory interest rate, the borrower's
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| scheduled monthly payments on the loan (including principal, |
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| interest, taxes,
insurance, and assessments), combined with |
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| the scheduled payments for all
other disclosed debts, do not |
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| exceed 50% of the borrower's monthly gross
income. |
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| (Source: P.A. 93-561, eff. 1-1-04.)
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