Full Text of SB0278 94th General Assembly
SB0278sam003 94TH GENERAL ASSEMBLY
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Sen. William R. Haine
Filed: 4/11/2005
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LRB094 06374 RXD 44872 a |
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| AMENDMENT TO SENATE BILL 278
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| AMENDMENT NO. ______. Amend Senate Bill 278 by replacing | 3 |
| everything after the enacting clause with the following:
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| "Section 5. The High Risk Home Loan Act is amended by | 5 |
| changing Section 10 as follows:
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| (815 ILCS 137/10)
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| Sec. 10. Definitions. As used in this Act:
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| "Approved credit counselor" means a credit counselor | 9 |
| approved by the
Director of Financial Institutions.
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| "Borrower" means a natural person who seeks or obtains a | 11 |
| high risk
home loan.
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| "Commissioner" means the Commissioner of the Office of | 13 |
| Banks and Real
Estate.
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| "Department" means the Department of Financial | 15 |
| Institutions.
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| "Director" means the Director of Financial Institutions.
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| "Good faith" means honesty in fact in the conduct or | 18 |
| transaction concerned.
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| "High risk home loan"
means a home equity loan in which (i) | 20 |
| at the time of origination, the annual
percentage rate
exceeds | 21 |
| by more than 6 percentage points in the case of a first lien | 22 |
| mortgage,
or
by more than 8 percentage points in the case of a | 23 |
| junior mortgage, the yield on
U.S. Treasury securities having | 24 |
| comparable periods of maturity to the loan
maturity as of the |
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LRB094 06374 RXD 44872 a |
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| fifteenth day of the month immediately preceding the month
in
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| which the application for the loan is received by the lender or | 3 |
| (ii) the total
points
and fees payable by the consumer at or | 4 |
| before closing will exceed the greater
of
5% of the total loan | 5 |
| amount or $800. The $800 figure shall be adjusted annually
on | 6 |
| January 1 by the annual percentage change in the Consumer Price | 7 |
| Index for
All Urban Consumers for all items published by the | 8 |
| United States Department of
Labor.
"High risk home loan"
does
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| not include a loan that is made primarily for a business | 10 |
| purpose unrelated to
the
residential real property securing the | 11 |
| loan or to an open-end credit plan
subject to
12 CFR 226 (2000, | 12 |
| no subsequent amendments or editions are included).
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| "Home equity loan" means any loan secured by the borrower's | 14 |
| primary
residence where the proceeds are not used as purchase | 15 |
| money for the
residence.
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| "Lender" means a natural or artificial person who | 17 |
| transfers, deals in,
offers, or makes a high risk home loan. | 18 |
| "Lender" includes, but is not limited
to,
creditors and
brokers | 19 |
| who transfer, deal in, offer, or make high risk home loans. | 20 |
| "Lender"
does not include purchasers, assignees, or subsequent | 21 |
| holders of high risk home
loans.
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| "Office" means the Office of Banks and Real Estate.
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| "Points and fees" means all items required to be disclosed | 24 |
| as points and
fees under 12 CFR 226.32 (2000, no subsequent | 25 |
| amendments or editions
included); the premium of any single | 26 |
| premium credit life, credit disability,
credit
unemployment, | 27 |
| or any other life or health insurance that is financed directly
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| or
indirectly into the loan; and compensation paid directly or | 29 |
| indirectly to a
mortgage
broker, including a broker that | 30 |
| originates a loan in its own name in a
table-funded
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| transaction, not otherwise included in 12 CFR 226.4. "Points | 32 |
| and fees" does not include: (i) fees paid to the Veterans | 33 |
| Administration required by law; or (ii) fees paid to the | 34 |
| Federal Housing Administration required by law.
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| "Reasonable" means fair, proper, just, or prudent under the | 2 |
| circumstances.
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| "Servicer" means any entity chartered under the Illinois | 4 |
| Banking Act, the
Savings Bank Act, the Illinois Credit Union | 5 |
| Act, or the Illinois Savings and
Loan Act of 1985 and any | 6 |
| person or entity licensed under the Residential
Mortgage | 7 |
| License Act of 1987, the Consumer Installment Loan Act, or the | 8 |
| Sales
Finance Agency Act who
is responsible for the collection | 9 |
| or remittance for, or has the right or
obligation to collect or | 10 |
| remit for, any lender, note owner, or note holder or
for a | 11 |
| licensee's own account, of payments, interest, principal, and | 12 |
| trust items
(such as hazard
insurance and taxes on a | 13 |
| residential mortgage loan) in accordance with the
terms of the | 14 |
| residential mortgage loan, including loan payment follow-up,
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| delinquency loan follow-up, loan analysis, and any | 16 |
| notifications to
the borrower that are necessary to enable the | 17 |
| borrower to keep the loan current
and in good
standing.
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| "Total loan amount" has the same meaning as that term is | 19 |
| given in 12
CFR 226.32 and shall be calculated in accordance | 20 |
| with the Federal Reserve
Board's Official Staff Commentary to | 21 |
| that regulation.
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| (Source: P.A. 93-561, eff. 1-1-04.)".
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