SB0703 95TH GENERAL ASSEMBLY

LRB095 04898 AJO 24963 b

95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB0703

Introduced 2/8/2007, by Sen. A. J. Wilhelmi

SYNOPSIS AS INTRODUCED:

765 ILCS 5/11

from Ch. 30, par. 10

Amends the Conveyances Act. Provides that every mortgage securing residential real estate shall have attached a rider, certified by the mortgage lender, that states the name of each participant in the origination of the mortgage, the participant's applicable license or registration number, if any, and the participant's function by using these function categories: mortgage origination company; loan officer; appraiser; real estate broker for the seller, real estate broker for the buyer, lender funding the mortgage; and title insurance company. Provides that a mortgage on residential real estate that is subject to the Illinois predatory lending database pilot program must have attached to it a certificate of compliance or a certificate of exemption issued pursuant to that program.

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning property.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Conveyances Act is amended by changing Section 11 as follows:

(765 ILCS 5/11) (from Ch. 30, par. 10)

Sec. 11. Mortgages of lands may be substantially in the following form:

The Mortgagor (here insert name or names), mortgages and warrants to (here insert name or names of mortgagee or mortgagees), to secure the payment of (here recite the nature and amount of indebtedness, showing when due and the rate of interest, and whether secured by note or otherwise), the following described real estate (here insert description thereof), situated in the County of ...., in the State of Illinois.

Dated (insert date).

(signature of mortgagor or mortgagors)

The names of the parties shall be typed or printed below the signatures. Such form shall have a blank space of 3 1/2 inches by 3 1/2 inches for use by the recorder. However, the failure to comply with the requirement that the names of the parties be typed or printed below the signatures and that the form have a blank space of 3 1/2 inches by 3 1/2 inches for use by the recorder shall not affect the validity and effect of such form.

Such mortgage, when otherwise properly executed, shall be deemed and held a good and sufficient mortgage in fee to secure the payment of the moneys therein specified; and if the same contains the words "and warrants," the same shall be construed the same as if full covenants of ownership, good right to convey against incumbrances of quiet enjoyment and general warranty, as expressed in Section 9 of this Act were fully written therein; but if the words "and warrants" are omitted, no such covenants shall be implied. When the grantor or grantors in such deed or mortgage for the conveyance of any real estate desires to release or waive his, her or their homestead rights therein, they or either of them may release or waive the same by inserting in the form of deed or mortgage (as the case may be), provided in Sections 9, 10 and 11, after the words "State of Illinois," in substance the following words, "hereby releasing and waiving all rights under and by virtue of the homestead exemption laws of this State."

Mortgages securing "reverse mortgage" loans shall be subject to this Section except where requirements concerning the definiteness of the term and amount of indebtedness provisions of a mortgage would be inconsistent with the Acts authorizing "reverse mortgage" loans, or rules and regulations promulgated under those Acts.

A mortgage securing "residential real estate" as defined in the Residential Mortgage License Act of 1987 shall have attached a rider, certified by the mortgage lender, that states the name of each participant in the origination of the mortgage, the participant's applicable license or registration number, if any, and the participant's function in the origination of the mortgage by using these function categories: (i) mortgage origination company; (ii) loan officer; (iii) appraiser holding a license pursuant to the Real Estate Appraiser Licensing Act of 2002; (iv) "real estate broker", as defined in the Real Estate License Act of 2000, representing the seller; (v) real estate broker representing the buyer; (vi) lender funding the mortgage; and (vii) title insurance company (preparing the HUD-1 form).

Mortgages on residential real estate that are subject to the Illinois predatory lending database pilot program pursuant to the Residential Real Property Disclosure Act must have attached a certificate of compliance or a certificate of exemption issued pursuant to the program.

Mortgages securing "revolving credit" loans shall be subject to this Section.

(Source: P.A. 91-357, eff. 7-29-99.)