Illinois General Assembly - Full Text of SB1440
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Full Text of SB1440  99th General Assembly


Rep. Arthur Turner

Filed: 5/13/2015





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2    AMENDMENT NO. ______. Amend Senate Bill 1440 by replacing
3everything after the enacting clause with the following:
4    "Section 1. Short title. This Act may be cited as the
5Reverse Mortgage Act.
6    Section 5. General definitions. As used in this Act, unless
7the context otherwise requires:
8    "Borrower" means a natural person who seeks or obtains a
9reverse mortgage.
10    "Homestead property" means the domicile and contiguous
11real estate owned and occupied by the borrower. "Homestead
12property" includes a manufactured home as defined in
13subdivision (53) of Section 9-102 of the Uniform Commercial
14Code that is real property under Section 5-35 of the Conveyance
15and Encumbrance of Manufactured Homes as Real Property and
16Severance Act.



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1    "Lender" means a natural or artificial person who
2transfers, deals in, offers, or makes a reverse mortgage.
3"Lender" includes, but is not limited to, creditors and brokers
4who transfer, deal in, offer, or make reverse mortgages.
5"Lender" does not include purchasers, assignees, or subsequent
6holders of reverse mortgages.
7    "Real property" includes a manufactured home as defined in
8subdivision (53) of Section 9-102 of the Uniform Commercial
9Code that is real property under Section 5-35 of the Conveyance
10and Encumbrance of Manufactured Homes as Real Property and
11Severance Act.
12    "Reverse mortgage" means a non-recourse loan, secured by
13real property or a homestead property, that complies with all
14of the following:
15        (1) Provides cash advances to a borrower for the
16    purchase of the home or based on the equity in a borrower's
17    owner-occupied principal residence, provided that it is a
18    residence with not more than 4 units.
19        (2) Requires no payment of principal or interest until
20    the entire loan becomes due and payable.
21    Section 10. Reverse mortgages.
22    (a) Reverse mortgage loans shall be subject to all of the
23following provisions:
24        (1) Payment, in whole or in part, shall be permitted
25    without penalty at any time during the term of the



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1    mortgage.
2        (2) A reverse mortgage may provide for an interest rate
3    that is fixed or adjustable and may provide for interest
4    that is contingent on appreciation in the value of the
5    property.
6        (3) If a reverse mortgage provides for periodic
7    advances to a borrower, the advances may not be reduced in
8    amount or number based on any adjustment in the interest
9    rate.
10        (4) A reverse mortgage may be subject to any additional
11    terms and conditions imposed by a lender that are required
12    under the provisions of the federal Housing and Community
13    Development Act of 1987 to enable the lender to obtain
14    federal government insurance on the mortgage if a loan is
15    to be insured under that Act.
16    (b) The repayment obligation under a reverse mortgage is
17subject to all of the following:
18        (1) Temporary absences from the home not exceeding 60
19    consecutive days shall not cause the mortgage to become due
20    and payable.
21        (2) Temporary absences from the home exceeding 60 days,
22    but not exceeding one year, shall not cause the mortgage to
23    become due and payable, provided that the borrower has
24    taken action that secures the home in a manner satisfactory
25    to the lender.
26    (c) A reverse mortgage shall become due and payable upon



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1the occurrence of any of the following events, unless the
2maturity date has been deferred under the Federal Housing
3Administration's Home Equity Conversion Mortgage Program:
4        (1) The property securing the loan is sold.
5        (2) All borrowers cease to occupy the home as a
6    principal residence.
7        (3) A fixed maturity date agreed to by the lender and
8    the borrower is reached.
9        (4) Default by the borrower in the performance of its
10    obligations under the loan agreement.
11        (5) The death of the borrower or, for homestead
12    properties in joint tenancy, the death of the last
13    surviving joint tenant who had an interest in the property
14    at the time the loan was initiated.
15    Section 15. Reverse mortgage disclosures.
16    (a) The Office of the Attorney General shall develop the
17content and format of the following 2 documents regarding
18reverse mortgage loans for the purpose of consumer education:
19        (1) An educational document providing independent
20    consumer information regarding reverse mortgages,
21    potential alternatives to reverse mortgages, and the
22    availability of independent counseling services, including
23    services provided by nonprofit agencies certified by the
24    federal government to provide required counseling for
25    reverse mortgages insured by the U.S. Federal Government.



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1    The document shall also include a statement that the terms
2    of a reverse mortgage may adversely affect the applicant's
3    eligibility to obtain a tax deferral under the Senior
4    Citizens Real Estate Tax Deferral Act.
5        (2) A document regarding the availability of
6    counseling services that shall be in at least 12-point
7    font, containing contact information (including agency
8    name, address, telephone number, and website) for all
9    agencies with an office in Illinois that are approved by
10    the U.S. Department of Housing and Urban Development (HUD)
11    to conduct reverse mortgage counseling. This document
12    shall contain the following statement:
13    "IMPORTANT NOTICE: Under Illinois law, reverse mortgages
14are non-recourse loans secured by real or homestead property.
15Reverse mortgages insured by the U.S. Federal Government, known
16as Home Equity Conversion Mortgages or HECM loans, require
17people considering reverse mortgages to get counseling from a
18federally approved counselor working for a HECM counseling
19agency prior to applying for the loan. The purpose of the
20counseling is to help the prospective borrower understand the
21financial implications, alternatives to securing a reverse
22mortgage, borrower obligations, costs of obtaining the loan,
23repayment conditions and other issues. Counseling can also be a
24benefit to people considering reverse mortgages not insured by
25the federal government.
26    There are advantages to receiving this counseling in



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1person, but it can also be conducted over the telephone.
2Illinois State law requires reverse mortgage lenders to provide
3potential reverse mortgage borrowers with a list including
4contact information for all agencies with an office in Illinois
5that are approved by the U.S. Department of Housing and Urban
6Development (HUD) to conduct reverse mortgage counseling.
7Contact information for approved counseling agencies located
8outside of Illinois is available from HUD.".
9    (b) The documents shall be updated and revised as often as
10deemed necessary by the Office of the Attorney General.
11    (c) At the time of the initial inquiry regarding a reverse
12mortgage or, if not practically feasible, at the time the
13lender provides additional written information about reverse
14mortgages, a lender shall provide to the borrower the documents
15prepared by the Office of the Attorney General under this
17    Section 20. Reverse mortgages cooling-off period.
18    (a) Any written commitment provided by the lender to the
19borrower must contain the material terms and conditions of the
20reverse mortgage. That commitment may be subject to a
21satisfactory appraisal and the borrower meeting standard
22closing conditions.
23    (b) A borrower shall not be bound for 3 full business days
24after the borrower's acceptance, in writing, of a lender's
25written commitment to make a reverse mortgage loan and may not



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1be required to close or proceed with the loan during that time
2period. A borrower may not waive the provisions of this
3subsection (b).
4    (c) At the time of making a written commitment, the lender
5shall provide the borrower a separate document in at least
612-point font that contains the following statement:
8State law requires a 3-day cooling-off period for reverse
9mortgage loans, during which time a potential borrower cannot
10be required to close or proceed with the loan. The purpose of
11this requirement is to provide potential borrowers with 3
12business days to consider their decision whether to secure a
13reverse mortgage or not. Potential borrowers may want to seek
14additional information and an analysis of the commitment from a
15reverse mortgage counselor during this 3-day period. The 3-day
16cooling-off period cannot be waived.".
17    Section 25. Reverse mortgages; restriction on
18cross-selling. No lender may:
19        (1) require the purchase of an annuity, investment,
20    life insurance, or long-term care insurance product as a
21    condition of obtaining a reverse mortgage loan; however,
22    nothing in this paragraph precludes a lender from requiring
23    the borrower to purchase property and casualty insurance,
24    title insurance, flood insurance, or other products meant
25    to insure or protect the value of the home and that are



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1    customary for residential mortgage or reverse mortgage
2    transactions on the borrower's residence securing the
3    reverse mortgage loan;
4        (2) enter into any agreement to make a reverse mortgage
5    loan that obligates the borrower to purchase an annuity,
6    investment, life insurance, or long-term care insurance
7    product; or
8        (3) receive compensation out of reverse mortgage
9    proceeds for providing the borrower with information
10    relating to an annuity, investment, life insurance,
11    long-term care insurance, or property insurance product.
12    Section 30. Reverse mortgages; restriction on distribution
13of loan proceeds. No person, other than a borrower's spouse or
14partner, who directly or indirectly facilitates, processes,
15negotiates, assists, encourages, arranges, or otherwise
16induces consumers to take out a reverse mortgage with a lender
17may receive any portion of the loan proceeds for any service or
18product, including for services that fall under the Home Repair
19and Remodeling Act, other than that for bona fide fees for
20origination of the loan. This Section shall not prohibit
21disbursements of loan proceeds in compliance with guidelines,
22including uses defined as mandatory obligations, under the
23Federal Housing Administration's Home Equity Conversion
24Mortgage Program.



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1    Section 35. Reverse mortgages; certification requirements.
2    (a) No reverse mortgage commitment may be made unless all
3lenders involved in brokering and making the reverse mortgage
4loan certify, in writing, that:
5        (1) the borrower has received from the lender the
6    document prepared by the Office of the Attorney General
7    required in Section 15 regarding the advisability and
8    availability of independent information and counseling
9    services on reverse mortgages;
10        (2) the borrower has received from the lender, at the
11    time a written commitment was made to the applicant to
12    provide a reverse mortgage loan, the disclosure document
13    required in Section 20 regarding the 3-day cooling-off
14    period and that at least 3 business days have passed since
15    the document was provided; the certification shall also
16    include the date the cooling-off period disclosure was
17    provided;
18        (3) the reverse mortgage loan does not include any
19    current or future requirement for the applicant to purchase
20    an annuity, investment, life insurance, or long-term care
21    insurance product;
22        (4) no compensation has or will be provided to the
23    lender out of reverse mortgage proceeds for providing the
24    borrower with information relating to an annuity,
25    investment, life insurance, long-term care insurance, or
26    property insurance product; and



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1        (5) to their knowledge, no person, other than a
2    borrower's spouse or partner, who directly or indirectly
3    facilitates, processes, negotiates, assists, encourages,
4    arranges, or otherwise induces consumers to take out a
5    reverse mortgage with a lender has received or will receive
6    any portion of the loan proceeds for any service or
7    product, including for services that fall under the Home
8    Repair and Remodeling Act, other than that for bona fide
9    fees for origination of the loan.
10    This Section shall not prohibit disbursements of loan
11proceeds in compliance with guidelines under the Federal
12Housing Administration's Home Equity Conversion Mortgage
13Program, including uses defined as mandatory obligations.
14    (b) The certification regarding these requirements shall
15be in a separate document in at least 12-point font. The lender
16shall maintain the certification in an accurate, reproducible,
17and accessible format for the term of the reverse mortgage.
18    Section 40. Enforcement.
19    (a) Any violation of this Act shall also be considered an
20unlawful practice under the Consumer Fraud and Deceptive
21Business Practices Act. Only the Attorney General may enforce
22violations of this Act. The Attorney General shall only find a
23violation of this Act if the conduct constitutes a pattern or
25    (b) Any violation of this Act by a licensee or residential



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1mortgage licensee under the Residential Mortgage License Act of
21987 shall also be considered a violation of the Residential
3Mortgage License Act of 1987.
4    Section 900. The Illinois Act on the Aging is amended by
5changing Section 4.01 as follows:
6    (20 ILCS 105/4.01)  (from Ch. 23, par. 6104.01)
7    Sec. 4.01. Additional powers and duties of the Department.
8In addition to powers and duties otherwise provided by law, the
9Department shall have the following powers and duties:
10    (1) To evaluate all programs, services, and facilities for
11the aged and for minority senior citizens within the State and
12determine the extent to which present public or private
13programs, services and facilities meet the needs of the aged.
14    (2) To coordinate and evaluate all programs, services, and
15facilities for the Aging and for minority senior citizens
16presently furnished by State agencies and make appropriate
17recommendations regarding such services, programs and
18facilities to the Governor and/or the General Assembly.
19    (2-a) To request, receive, and share information
20electronically through the use of data-sharing agreements for
21the purpose of (i) establishing and verifying the initial and
22continuing eligibility of older adults to participate in
23programs administered by the Department; (ii) maximizing
24federal financial participation in State assistance



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1expenditures; and (iii) investigating allegations of fraud or
2other abuse of publicly funded benefits. Notwithstanding any
3other law to the contrary, but only for the limited purposes
4identified in the preceding sentence, this paragraph (2-a)
5expressly authorizes the exchanges of income, identification,
6and other pertinent eligibility information by and among the
7Department and the Social Security Administration, the
8Department of Employment Security, the Department of
9Healthcare and Family Services, the Department of Human
10Services, the Department of Revenue, the Secretary of State,
11the U.S. Department of Veterans Affairs, and any other
12governmental entity. The confidentiality of information
13otherwise shall be maintained as required by law. In addition,
14the Department on Aging shall verify employment information at
15the request of a community care provider for the purpose of
16ensuring program integrity under the Community Care Program.
17    (3) To function as the sole State agency to develop a
18comprehensive plan to meet the needs of the State's senior
19citizens and the State's minority senior citizens.
20    (4) To receive and disburse State and federal funds made
21available directly to the Department including those funds made
22available under the Older Americans Act and the Senior
23Community Service Employment Program for providing services
24for senior citizens and minority senior citizens or for
25purposes related thereto, and shall develop and administer any
26State Plan for the Aging required by federal law.



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1    (5) To solicit, accept, hold, and administer in behalf of
2the State any grants or legacies of money, securities, or
3property to the State of Illinois for services to senior
4citizens and minority senior citizens or purposes related
6    (6) To provide consultation and assistance to communities,
7area agencies on aging, and groups developing local services
8for senior citizens and minority senior citizens.
9    (7) To promote community education regarding the problems
10of senior citizens and minority senior citizens through
11institutes, publications, radio, television and the local
13    (8) To cooperate with agencies of the federal government in
14studies and conferences designed to examine the needs of senior
15citizens and minority senior citizens and to prepare programs
16and facilities to meet those needs.
17    (9) To establish and maintain information and referral
18sources throughout the State when not provided by other
20    (10) To provide the staff support that may reasonably be
21required by the Council.
22    (11) To make and enforce rules and regulations necessary
23and proper to the performance of its duties.
24    (12) To establish and fund programs or projects or
25experimental facilities that are specially designed as
26alternatives to institutional care.



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1    (13) To develop a training program to train the counselors
2presently employed by the Department's aging network to provide
3Medicare beneficiaries with counseling and advocacy in
4Medicare, private health insurance, and related health care
5coverage plans. The Department shall report to the General
6Assembly on the implementation of the training program on or
7before December 1, 1986.
8    (14) To make a grant to an institution of higher learning
9to study the feasibility of establishing and implementing an
10affirmative action employment plan for the recruitment,
11hiring, training and retraining of persons 60 or more years old
12for jobs for which their employment would not be precluded by
14    (15) To present one award annually in each of the
15categories of community service, education, the performance
16and graphic arts, and the labor force to outstanding Illinois
17senior citizens and minority senior citizens in recognition of
18their individual contributions to either community service,
19education, the performance and graphic arts, or the labor
20force. The awards shall be presented to 4 senior citizens and
21minority senior citizens selected from a list of 44 nominees
22compiled annually by the Department. Nominations shall be
23solicited from senior citizens' service providers, area
24agencies on aging, senior citizens' centers, and senior
25citizens' organizations. The Department shall establish a
26central location within the State to be designated as the



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1Senior Illinoisans Hall of Fame for the public display of all
2the annual awards, or replicas thereof.
3    (16) To establish multipurpose senior centers through area
4agencies on aging and to fund those new and existing
5multipurpose senior centers through area agencies on aging, the
6establishment and funding to begin in such areas of the State
7as the Department shall designate by rule and as specifically
8appropriated funds become available.
9    (17) (Blank). To develop the content and format of the
10acknowledgment regarding non-recourse reverse mortgage loans
11under Section 6.1 of the Illinois Banking Act; to provide
12independent consumer information on reverse mortgages and
13alternatives; and to refer consumers to independent counseling
14services with expertise in reverse mortgages.
15    (18) To develop a pamphlet in English and Spanish which may
16be used by physicians licensed to practice medicine in all of
17its branches pursuant to the Medical Practice Act of 1987,
18pharmacists licensed pursuant to the Pharmacy Practice Act, and
19Illinois residents 65 years of age or older for the purpose of
20assisting physicians, pharmacists, and patients in monitoring
21prescriptions provided by various physicians and to aid persons
2265 years of age or older in complying with directions for
23proper use of pharmaceutical prescriptions. The pamphlet may
24provide space for recording information including but not
25limited to the following:
26        (a) name and telephone number of the patient;



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1        (b) name and telephone number of the prescribing
2    physician;
3        (c) date of prescription;
4        (d) name of drug prescribed;
5        (e) directions for patient compliance; and
6        (f) name and telephone number of dispensing pharmacy.
7    In developing the pamphlet, the Department shall consult
8with the Illinois State Medical Society, the Center for
9Minority Health Services, the Illinois Pharmacists Association
10and senior citizens organizations. The Department shall
11distribute the pamphlets to physicians, pharmacists and
12persons 65 years of age or older or various senior citizen
13organizations throughout the State.
14    (19) To conduct a study of the feasibility of implementing
15the Senior Companion Program throughout the State.
16    (20) The reimbursement rates paid through the community
17care program for chore housekeeping services and home care
18aides shall be the same.
19    (21) From funds appropriated to the Department from the
20Meals on Wheels Fund, a special fund in the State treasury that
21is hereby created, and in accordance with State and federal
22guidelines and the intrastate funding formula, to make grants
23to area agencies on aging, designated by the Department, for
24the sole purpose of delivering meals to homebound persons 60
25years of age and older.
26    (22) To distribute, through its area agencies on aging,



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1information alerting seniors on safety issues regarding
2emergency weather conditions, including extreme heat and cold,
3flooding, tornadoes, electrical storms, and other severe storm
4weather. The information shall include all necessary
5instructions for safety and all emergency telephone numbers of
6organizations that will provide additional information and
8    (23) To develop guidelines for the organization and
9implementation of Volunteer Services Credit Programs to be
10administered by Area Agencies on Aging or community based
11senior service organizations. The Department shall hold public
12hearings on the proposed guidelines for public comment,
13suggestion, and determination of public interest. The
14guidelines shall be based on the findings of other states and
15of community organizations in Illinois that are currently
16operating volunteer services credit programs or demonstration
17volunteer services credit programs. The Department shall offer
18guidelines for all aspects of the programs including, but not
19limited to, the following:
20        (a) types of services to be offered by volunteers;
21        (b) types of services to be received upon the
22    redemption of service credits;
23        (c) issues of liability for the volunteers and the
24    administering organizations;
25        (d) methods of tracking service credits earned and
26    service credits redeemed;



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1        (e) issues of time limits for redemption of service
2    credits;
3        (f) methods of recruitment of volunteers;
4        (g) utilization of community volunteers, community
5    service groups, and other resources for delivering
6    services to be received by service credit program clients;
7        (h) accountability and assurance that services will be
8    available to individuals who have earned service credits;
9    and
10        (i) volunteer screening and qualifications.
11The Department shall submit a written copy of the guidelines to
12the General Assembly by July 1, 1998.
13    (24) To function as the sole State agency to receive and
14disburse State and federal funds for providing adult protective
15services in a domestic living situation in accordance with the
16Adult Protective Services Act.
17    (25) To hold conferences, trainings, and other programs for
18which the Department shall determine by rule a reasonable fee
19to cover related administrative costs. Rules to implement the
20fee authority granted by this paragraph (25) must be adopted in
21accordance with all provisions of the Illinois Administrative
22Procedure Act and all rules and procedures of the Joint
23Committee on Administrative Rules; any purported rule not so
24adopted, for whatever reason, is unauthorized.
25(Source: P.A. 98-8, eff. 5-3-13; 98-49, eff. 7-1-13; 98-380,
26eff. 8-16-13; 98-756, eff. 7-16-14.)



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1    (205 ILCS 5/5a rep.)
2    (205 ILCS 5/6.1 rep.)
3    (205 ILCS 5/6.2 rep.)
4    Section 905. The Illinois Banking Act is amended by
5repealing Sections 5a, 6.1, and 6.2.
6    (205 ILCS 205/1010 rep.)
7    Section 910. The Savings Bank Act is amended by repealing
8Section 1010.
9    Section 915. The Illinois Credit Union Act is amended by
10changing Section 46 as follows:
11    (205 ILCS 305/46)  (from Ch. 17, par. 4447)
12    Sec. 46. Loans and interest rate.
13    (1) A credit union may make loans to its members for such
14purpose and upon such security and terms, including rates of
15interest, as the credit committee, credit manager, or loan
16officer approves. Notwithstanding the provisions of any other
17law in connection with extensions of credit, a credit union may
18elect to contract for and receive interest and fees and other
19charges for extensions of credit subject only to the provisions
20of this Act and rules promulgated under this Act, except that
21extensions of credit secured by residential real estate shall
22be subject to the laws applicable thereto. The rates of



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1interest to be charged on loans to members shall be set by the
2board of directors of each individual credit union in
3accordance with Section 30 of this Act and such rates may be
4less than, but may not exceed, the maximum rate set forth in
5this Section. A borrower may repay his loan prior to maturity,
6in whole or in part, without penalty. The credit contract may
7provide for the payment by the member and receipt by the credit
8union of all costs and disbursements, including reasonable
9attorney's fees and collection agency charges, incurred by the
10credit union to collect or enforce the debt in the event of a
11delinquency by the member, or in the event of a breach of any
12obligation of the member under the credit contract. A
13contingency or hourly arrangement established under an
14agreement entered into by a credit union with an attorney or
15collection agency to collect a loan of a member in default
16shall be presumed prima facie reasonable.
17    (2) Credit unions may make loans based upon the security of
18any interest or equity in real estate, subject to rules and
19regulations promulgated by the Secretary. In any contract or
20loan which is secured by a mortgage, deed of trust, or
21conveyance in the nature of a mortgage, on residential real
22estate, the interest which is computed, calculated, charged, or
23collected pursuant to such contract or loan, or pursuant to any
24regulation or rule promulgated pursuant to this Act, may not be
25computed, calculated, charged or collected for any period of
26time occurring after the date on which the total indebtedness,



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1with the exception of late payment penalties, is paid in full.
2    For purposes of this subsection (2) of this Section 46, a
3prepayment shall mean the payment of the total indebtedness,
4with the exception of late payment penalties if incurred or
5charged, on any date before the date specified in the contract
6or loan agreement on which the total indebtedness shall be paid
7in full, or before the date on which all payments, if timely
8made, shall have been made. In the event of a prepayment of the
9indebtedness which is made on a date after the date on which
10interest on the indebtedness was last computed, calculated,
11charged, or collected but before the next date on which
12interest on the indebtedness was to be calculated, computed,
13charged, or collected, the lender may calculate, charge and
14collect interest on the indebtedness for the period which
15elapsed between the date on which the prepayment is made and
16the date on which interest on the indebtedness was last
17computed, calculated, charged or collected at a rate equal to
181/360 of the annual rate for each day which so elapsed, which
19rate shall be applied to the indebtedness outstanding as of the
20date of prepayment. The lender shall refund to the borrower any
21interest charged or collected which exceeds that which the
22lender may charge or collect pursuant to the preceding
23sentence. The provisions of this amendatory Act of 1985 shall
24apply only to contracts or loans entered into on or after the
25effective date of this amendatory Act.
26    (3) (Blank). Notwithstanding any other provision of this



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1Act, a credit union authorized under this Act to make loans
2secured by an interest or equity in real estate may engage in
3making "reverse mortgage" loans to persons for the purpose of
4making home improvements or repairs, paying insurance premiums
5or paying real estate taxes on the homestead properties of such
6persons. If made, such loans shall be made on such terms and
7conditions as the credit union shall determine and as shall be
8consistent with the provisions of this Section and such rules
9and regulations as the Secretary shall promulgate hereunder.
10For purposes of this Section, a "reverse mortgage" loan shall
11be a loan extended on the basis of existing equity in homestead
12property and secured by a mortgage on such property. Such loans
13shall be repaid upon the sale of the property or upon the death
14of the owner or, if the property is in joint tenancy, upon the
15death of the last surviving joint tenant who had such an
16interest in the property at the time the loan was initiated,
17provided, however, that the credit union and its member may by
18mutual agreement, establish other repayment terms. A credit
19union, in making a "reverse mortgage" loan, may add deferred
20interest to principal or otherwise provide for the charging of
21interest or premiums on such deferred interest. "Homestead"
22property, for purposes of this Section, means the domicile and
23contiguous real estate owned and occupied by the mortgagor.
24    (4) Notwithstanding any other provisions of this Act, a
25credit union authorized under this Act to make loans secured by
26an interest or equity in real property may engage in making



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1revolving credit loans secured by mortgages or deeds of trust
2on such real property or by security assignments of beneficial
3interests in land trusts.
4    For purposes of this Section, "revolving credit" has the
5meaning defined in Section 4.1 of the Interest Act.
6    Any mortgage or deed of trust given to secure a revolving
7credit loan may, and when so expressed therein shall, secure
8not only the existing indebtedness but also such future
9advances, whether such advances are obligatory or to be made at
10the option of the lender, or otherwise, as are made within
11twenty years from the date thereof, to the same extent as if
12such future advances were made on the date of the execution of
13such mortgage or deed of trust, although there may be no
14advance made at the time of execution of such mortgage or other
15instrument, and although there may be no indebtedness
16outstanding at the time any advance is made. The lien of such
17mortgage or deed of trust, as to third persons without actual
18notice thereof, shall be valid as to all such indebtedness and
19future advances form the time said mortgage or deed of trust is
20filed for record in the office of the recorder of deeds or the
21registrar of titles of the county where the real property
22described therein is located. The total amount of indebtedness
23that may be so secured may increase or decrease from time to
24time, but the total unpaid balance so secured at any one time
25shall not exceed a maximum principal amount which must be
26specified in such mortgage or deed of trust, plus interest



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1thereon, and any disbursements made for the payment of taxes,
2special assessments, or insurance on said real property, with
3interest on such disbursements.
4    Any such mortgage or deed of trust shall be valid and have
5priority over all subsequent liens and encumbrances, including
6statutory liens, except taxes and assessments levied on said
7real property.
8    (4-5) For purposes of this Section, "real estate" and "real
9property" include a manufactured home as defined in subdivision
10(53) of Section 9-102 of the Uniform Commercial Code which is
11real property as defined in Section 5-35 of the Conveyance and
12Encumbrance of Manufactured Homes as Real Property and
13Severance Act.
14    (5) Compliance with federal or Illinois preemptive laws or
15regulations governing loans made by a credit union chartered
16under this Act shall constitute compliance with this Act.
17    (6) Credit unions may make residential real estate mortgage
18loans on terms and conditions established by the United States
19Department of Agriculture through its Rural Development
20Housing and Community Facilities Program. The portion of any
21loan in excess of the appraised value of the real estate shall
22be allocable only to the guarantee fee required under the
24    (7) For a renewal, refinancing, or restructuring of an
25existing loan that is secured by an interest or equity in real
26estate, a new appraisal of the collateral shall not be required



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1when the transaction involves an existing extension of credit
2at the credit union, no new moneys are advanced other than
3funds necessary to cover reasonable closing costs, and there
4has been no obvious or material change in market conditions or
5physical aspects of the real estate that threatens the adequacy
6of the credit union's real estate collateral protection after
7the transaction.
8(Source: P.A. 97-133, eff. 1-1-12; 98-749, eff. 7-16-14;
998-784, eff. 7-24-14; revised 10-2-14.)
10    (205 ILCS 305/46.1 rep.)
11    (205 ILCS 305/46.2 rep.)
12    Section 920. The Illinois Credit Union Act is amended by
13repealing Sections 46.1 and 46.2.
14    Section 925. The Residential Mortgage License Act of 1987
15is amended by adding Section 5-5A as follows:
16    (205 ILCS 635/5-5A new)
17    Sec. 5-5A. Violations of the Reverse Mortgage Act. Any
18violation of the Reverse Mortgage Act by a residential mortgage
19licensee shall be considered a violation of this Act.
20    (205 ILCS 635/5-5 rep.)
21    Section 930. The Residential Mortgage License Act of 1987
22is amended by repealing Section 5-5.



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1    Section 935. The Consumer Fraud and Deceptive Business
2Practices Act is amended by changing Section 2Z as follows:
3    (815 ILCS 505/2Z)  (from Ch. 121 1/2, par. 262Z)
4    Sec. 2Z. Violations of other Acts. Any person who knowingly
5violates the Automotive Repair Act, the Automotive Collision
6Repair Act, the Home Repair and Remodeling Act, the Dance
7Studio Act, the Physical Fitness Services Act, the Hearing
8Instrument Consumer Protection Act, the Illinois Union Label
9Act, the Job Referral and Job Listing Services Consumer
10Protection Act, the Travel Promotion Consumer Protection Act,
11the Credit Services Organizations Act, the Automatic Telephone
12Dialers Act, the Pay-Per-Call Services Consumer Protection
13Act, the Telephone Solicitations Act, the Illinois Funeral or
14Burial Funds Act, the Cemetery Oversight Act, the Cemetery Care
15Act, the Safe and Hygienic Bed Act, the Pre-Need Cemetery Sales
16Act, the High Risk Home Loan Act, the Payday Loan Reform Act,
17the Mortgage Rescue Fraud Act, subsection (a) or (b) of Section
183-10 of the Cigarette Tax Act, subsection (a) or (b) of Section
193-10 of the Cigarette Use Tax Act, the Electronic Mail Act, the
20Internet Caller Identification Act, paragraph (6) of
21subsection (k) of Section 6-305 of the Illinois Vehicle Code,
22Section 11-1431, 18d-115, 18d-120, 18d-125, 18d-135, 18d-150,
23or 18d-153 of the Illinois Vehicle Code, Article 3 of the
24Residential Real Property Disclosure Act, the Automatic



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1Contract Renewal Act, the Reverse Mortgage Act, or the Personal
2Information Protection Act commits an unlawful practice within
3the meaning of this Act.
4(Source: P.A. 96-863, eff. 1-19-10; 96-1369, eff. 1-1-11;
596-1376, eff. 7-29-10; 97-333, eff. 8-12-11.)".