(765 ILCS 77/Art. 1 heading)
ARTICLE 1
SHORT TITLE
(Source: P.A. 94-280, eff. 1-1-06.)
|
(765 ILCS 77/1)
Sec. 1.
Short title.
This Act may be cited as
the Residential Real Property Disclosure Act.
(Source: P.A. 88-111.)
|
(765 ILCS 77/Art. 2 heading)
ARTICLE 2
DISCLOSURES
(Source: P.A. 94-280, eff. 1-1-06.)
|
(765 ILCS 77/5)
Sec. 5. Definitions. As used in this Act, unless the context otherwise
requires, the
following terms have the meaning given in this Section:
"Residential real property" means real property improved with not less
than one nor more than 4 residential dwelling units; units in residential
cooperatives; or, condominium units, including the limited common elements
allocated to the exclusive use thereof that form an integral part of the
condominium unit. The term includes a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code that is real property as defined in the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
"Seller" means every person or entity who: (1) is a beneficiary of an Illinois land trust; or (2) has an interest, legal or equitable, in | ||
| ||
(i) an owner; (ii) a beneficiary of a
trust; (iii) a beneficiary pursuant to testate | ||
| ||
(iv) a contract purchaser or lessee of a ground | ||
| ||
"Seller" does not include a party to a transfer that is exempt under Section 15 or a beneficiary who has both (i) never occupied the residential real property and (ii) never had management responsibility for the residential real property.
"Prospective buyer" means any person or entity negotiating or offering
to become an owner or lessee of a ground lease of residential real property by means of a
transfer for value to which this Act applies. "Contract" means a written agreement by the seller and prospective buyer that would, subject to the satisfaction of any negotiated contingencies, require the prospective buyer to accept a transfer of the residential real property.
(Source: P.A. 102-765, eff. 5-13-22; 103-427, eff. 8-4-23.)
|
(765 ILCS 77/10)
Sec. 10.
Except as provided in Section 15, this Act applies to any
transfer
by sale, exchange, installment land sale contract, assignment of beneficial
interest, lease with an option to purchase, ground lease, or assignment of
ground lease of residential real property.
(Source: P.A. 88-111.)
|
(765 ILCS 77/15)
Sec. 15. Seller exemptions.
A seller in any of the following transfers is exempt from this Act, regardless of whether a disclosure report is delivered:
(1) Transfers pursuant to court order, including, but | ||
| ||
(2) Transfers from a mortgagor to a mortgagee by deed | ||
| ||
(3) Transfers by a fiduciary in the course of the | ||
| ||
(4) Transfers from one co-owner to one or more other | ||
| ||
(5) Transfers from a decedent pursuant to testate | ||
| ||
(6) Transfers made to a spouse, or to a person or | ||
| ||
(7) Transfers from an entity that has taken title to | ||
| ||
(8) Transfers to or from any governmental entity.
(9) Transfers of newly constructed residential real | ||
| ||
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/20)
Sec. 20. Disclosure report requirements. A seller of residential real property shall
complete all items in the disclosure report described in Section
35. The seller shall deliver to the prospective buyer the written
disclosure report required by this Act before the signing of a contract.
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/25)
Sec. 25.
Liability of seller.
(a) The seller is not liable for any error, inaccuracy, or
omission of any information delivered pursuant to this Act if (i) the seller
had no knowledge of the error, inaccuracy, or omission, (ii) the error,
inaccuracy, or omission was based on a reasonable belief that a material defect
or other matter not disclosed had been corrected, or (iii) the error,
inaccuracy, or omission was based on information provided by a public agency or
by a licensed engineer, land surveyor, structural pest control operator, or by
a
contractor about matters within the scope of the contractor's occupation and
the seller had no knowledge of the error, inaccuracy, or omission.
(b) The seller shall disclose material defects of which the
seller has actual knowledge.
(c) The seller is not obligated by this Act to make any
specific investigation or inquiry in an effort to complete the
disclosure statement.
(Source: P.A. 90-383, eff. 1-1-98.)
|
(765 ILCS 77/30)
Sec. 30. Disclosure report supplement. If, prior to closing, any seller becomes aware of an error, inaccuracy, or omission in any prior disclosure report or supplement
after delivery of that disclosure report or supplement to a prospective buyer,
that seller shall supplement the prior disclosure report or supplement with a written
supplemental disclosure, delivered by any method set forth in Section 50.
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/35)
Sec. 35. Disclosure report form. The disclosures required of a seller
by this Act shall be made in the following form:
RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
NOTICE: THE PURPOSE OF THIS REPORT IS TO PROVIDE PROSPECTIVE BUYERS WITH
INFORMATION ABOUT MATERIAL DEFECTS IN THE RESIDENTIAL REAL PROPERTY BEFORE THE SIGNING OF A CONTRACT. THIS
REPORT DOES NOT LIMIT THE PARTIES' RIGHT TO CONTRACT FOR THE SALE OF
RESIDENTIAL
REAL PROPERTY IN "AS IS" CONDITION. UNDER COMMON LAW, SELLERS WHO DISCLOSE
MATERIAL DEFECTS MAY BE UNDER A CONTINUING OBLIGATION TO ADVISE THE PROSPECTIVE
BUYERS ABOUT THE CONDITION OF THE RESIDENTIAL REAL PROPERTY EVEN AFTER THE
REPORT IS DELIVERED TO THE PROSPECTIVE BUYER. COMPLETION OF THIS REPORT BY
THE
SELLER CREATES LEGAL OBLIGATIONS ON THE SELLER; THEREFORE THE
SELLER MAY WISH TO CONSULT
AN ATTORNEY PRIOR TO COMPLETION OF THIS REPORT.
Property Address:
City, State & Zip Code:
Seller's Name:
This Report is a disclosure of certain conditions of the residential real
property listed above in compliance with the Residential Real Property
Disclosure Act. This information is provided as of ...(month) ...(day)
...(year). The
disclosures herein shall not be deemed warranties of any kind by the seller or
any person representing any party in this transaction.
In this form, "aware" means to have actual notice or
actual knowledge without any specific investigation or inquiry.
In this form, "material defect" means a condition that would
have a substantial adverse effect on the value of the residential
real property or that would significantly impair the health or
safety of future occupants of the residential real property
unless the seller reasonably believes that the condition has
been corrected.
The seller discloses the following information with the
knowledge that even though the statements herein are not deemed
to be warranties, prospective buyers may choose to rely on
this information in deciding whether or not and on what terms
to purchase the residential real property.
The seller represents that to the best of his or her actual
knowledge, the following statements have been accurately noted
as "yes" (correct), "no" (incorrect), or "not applicable" to the
property being sold. If the seller indicates that the response
to any statement, except number 1, is yes or not applicable, the
seller shall provide an explanation in the additional information
area of this form.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note: These disclosures are not intended to cover the common
elements of a condominium, but only the actual residential real
property including limited common elements allocated to the
exclusive use thereof that form an integral part of the
condominium unit.
Note: These disclosures are intended to reflect the current condition of
the premises and do not include previous problems, if any, that the seller
reasonably believes have been corrected.
If any of the above are marked "not applicable" or "yes", please explain here
or use additional pages, if necessary:
Check here if additional pages used: .....
Seller certifies that seller has prepared this report and
certifies that the information provided is based on the actual
notice or actual knowledge of the seller without any specific
investigation or inquiry on the part of the seller. The seller
hereby authorizes any person representing any principal in this
transaction to provide a copy of this report, and to disclose
any information in the report, to any person in connection
with any actual or anticipated sale of the property. (This paragraph shall be printed in boldface type.) THE SELLER ACKNOWLEDGES THAT THE SELLER IS REQUIRED TO PROVIDE THIS DISCLOSURE REPORT TO THE PROSPECTIVE BUYER BEFORE THE SIGNING OF THE CONTRACT AND HAS A CONTINUING OBLIGATION, PURSUANT TO SECTION 30 OF THE RESIDENTIAL REAL PROPERTY DISCLOSURE ACT, TO SUPPLEMENT THIS DISCLOSURE PRIOR TO CLOSING.
Seller: ............................... Date:
Seller: ............................... Date:
THE PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE
TO NEGOTIATE AN AGREEMENT FOR THE SALE OF THE PROPERTY SUBJECT TO
ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS IS").
THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES
THAT THE PROSPECTIVE BUYER OR SELLER MAY WISH TO OBTAIN
OR NEGOTIATE. (The remainder of this paragraph shall be printed in boldface type.) THE FACT THAT THE SELLER IS NOT AWARE OF A PARTICULAR
CONDITION OR PROBLEM IS NO GUARANTEE THAT IT DOES NOT EXIST.
THE PROSPECTIVE BUYER IS AWARE THAT THE PROSPECTIVE BUYER MAY REQUEST AN INSPECTION OF
THE PREMISES PERFORMED BY A QUALIFIED PROFESSIONAL.
Prospective Buyer: .................. Date: ...... Time: .... Prospective Buyer: .................. Date: ...... Time: ....
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/40)
Sec. 40. Material defect. (a) If a seller discloses a material defect in the Residential Real Property Disclosure Report, including a response to any statement that is answered "yes" except numbers 1 and 2, and, in violation of Section 20, it is delivered to the prospective buyer after all parties have signed a contract, the prospective buyer, within 5 business days after receipt of that report, may terminate the contract or other agreement with the return of all earnest money deposits or down payments paid by the prospective buyer in the transaction without any liability to or recourse by the seller. (b) If a seller discloses a material defect in a supplement to this
disclosure report, the prospective buyer shall not have a right to terminate
unless: (i) the material defect results from an error, inaccuracy, or omission of
which the seller had actual knowledge at the time the prior
disclosure was completed and signed by the seller; (ii) the material defect is not repairable prior to closing; or (iii) the material defect is repairable prior to closing, but within 5 business days after the delivery of the supplemental disclosure, the seller declines, or otherwise fails to agree in writing, to repair the material defect. (c) The right to
terminate the contract, however, shall no longer
exist after the conveyance of the residential real property. For purposes of
this Act the termination shall be deemed to be made when written notice of
termination is delivered to at least one of the sellers by any method set forth in Section 50, at the contact information provided by any seller or indicated in the contract or other agreement. Nothing in subsection (a) or (b) shall limit the remedies available under the contract or Section 55.
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/45)
Sec. 45. Other law. This Act is not intended to limit remedies or modify
any obligation to disclose created by any other statute or that
may exist in common law in order to avoid fraud, misrepresentation, or deceit
in the transaction.
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/50)
Sec. 50. Delivery of disclosure report. Delivery of the Residential Real Property Disclosure
Report provided by this Act shall be by:
(1) personal delivery or facsimile, email, or other | ||
| ||
(2) depositing the report with the United States | ||
| ||
(3) depositing the report with an alternative | ||
| ||
For purposes of this Act, delivery to one prospective buyer is
deemed delivery to all prospective buyers. Delivery to an authorized
individual acting on behalf of a prospective buyer constitutes delivery to
all prospective buyers. Delivery of the report is effective upon receipt
by the prospective buyer. Receipt may be acknowledged on the report,
acknowledged in an
agreement for the conveyance of the residential real property, or shown in any
other verifiable manner.
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/55)
Sec. 55. Violations and damages. If the seller fails or refuses to
provide the disclosure report prior to the conveyance of the residential
real
property, the prospective buyer shall have the right to terminate the contract. A seller
who knowingly violates or fails to perform any duty prescribed by
any provision of this Act or who discloses any information on
the Residential Real Property Disclosure Report that the seller knows to
be false shall be liable in the amount of actual damages and
court costs, and the court may award reasonable attorney's fees
incurred by the prevailing party.
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/60)
Sec. 60.
No action for violation of this Act may
be commenced later than one year from the earlier of the date of
possession, date of occupancy, or date of recording of an instrument of
conveyance of the residential real property.
(Source: P.A. 88-111.)
|
(765 ILCS 77/65)
Sec. 65.
A copy of Sections 5 through 65 of Article 2 of this Act, excluding Section 35, must
be printed on or as a part of the Residential Real Property
Disclosure Report form.
(Source: P.A. 102-765, eff. 5-13-22.)
|
(765 ILCS 77/Art. 3 heading)
ARTICLE 3
PREDATORY LENDING DATABASE
(Source: P.A. 94-280, eff. 1-1-06.)
|
(765 ILCS 77/70) Sec. 70. Predatory lending database program. (a) As used in this Article: "Adjustable rate mortgage" or "ARM" means a closed-end mortgage transaction that allows adjustments of the loan interest rate during the first 3 years of the loan term. "Borrower" means a person seeking a mortgage loan. "Broker" means a "broker" or "loan broker", as defined in subsection (p) of Section 1-4 of the Residential Mortgage License Act of 1987. "Closing agent" means an individual assigned by a title insurance company or a broker or originator to ensure that the execution of documents related to the closing of a real estate sale or the refinancing of a real estate loan and the disbursement of closing funds are in conformity with the instructions of the entity financing the transaction. "Counseling" means counseling provided by a counselor employed by a HUD-approved counseling agency to all borrowers. Counseling must be provided in the following manner: (i) in person; or (ii) by remote electronic or telephonic means, with | ||
| ||
"Counselor" means a counselor employed by a HUD-approved housing counseling agency. "Credit score" means a credit risk score as defined by the Fair Isaac Corporation, or its successor, and reported under such names as "BEACON", "EMPIRICA", and "FAIR ISAAC RISK SCORE" by one or more of the following credit reporting agencies or their successors: Equifax, Inc., Experian Information Solutions, Inc., and TransUnion LLC. If the borrower's credit report contains credit scores from 2 reporting agencies, then the broker or loan originator shall report the lower score. If the borrower's credit report contains credit scores from 3 reporting agencies, then the broker or loan originator shall report the middle score. "Department" means the Department of Financial and Professional Regulation. "Exempt person or entity" means that term as it is defined in subsection (d) of Section 1-4 of the Residential Mortgage License Act of 1987. "First-time homebuyer" means a borrower who has not held an ownership interest in residential property. "HUD-approved counseling" or "counseling" means counseling given to a borrower by a counselor employed by a HUD-approved housing counseling agency. "Interest only" means a closed-end loan that permits one or more payments of interest without any reduction of the principal balance of the loan, other than the first payment on the loan. "Lender" means that term as it is defined in subsection (g) of Section 1-4 of the Residential Mortgage License Act of 1987. "Licensee" means that term as it is defined in subsection (e) of Section 1-4 of the Residential Mortgage License Act of 1987. "Mortgage loan" means that term as it is defined in subsection (f) of Section 1-4 of the Residential Mortgage License Act of 1987. "Negative amortization" means an amortization method under which the outstanding balance may increase at any time over the course of the loan because the regular periodic payment does not cover the full amount of interest due. "Originator" means a "mortgage loan originator" as defined in subsection (jj) of Section 1-4 of the Residential Mortgage License Act of 1987, except an exempt person. "Points and fees" has the meaning ascribed to that term in Section 10 of the High Risk Home Loan Act. "Prepayment penalty" means a charge imposed by a lender under a mortgage note or rider when the loan is paid before the expiration of the term of the loan. "Refinancing" means a loan secured by the borrower's or borrowers' primary residence where the proceeds are not used as purchase money for the residence. "Title insurance company" means any domestic company organized under the laws of this State for the purpose of conducting the business of guaranteeing or insuring titles to real estate and any title insurance company organized under the laws of another State, the District of Columbia, or a foreign government and authorized to transact the business of guaranteeing or insuring titles to real estate in this State. (a-5) A predatory lending database program shall be established within Cook County. The program shall be administered in accordance with this Article. The inception date of the program shall be July 1, 2008. A predatory lending database program shall be expanded to include Kane, Peoria, and Will counties. The inception date of the expansion of the program as it applies to Kane, Peoria, and Will counties shall be July 1, 2010. Until the inception date, none of the duties, obligations, contingencies, or consequences of or from the program shall be imposed. The program shall apply to all mortgage applications that are governed by this Article and that are made or taken on or after the inception of the program. (b) The database created under this program shall be maintained and administered by the Department. The database shall be designed to allow brokers, originators, counselors, title insurance companies, and closing agents to submit information to the database online. The database shall not be designed to allow those entities to retrieve information from the database, except as otherwise provided in this Article. Information submitted by the broker or originator to the Department may be used to populate the online form submitted by a counselor, title insurance company, or closing agent. (c) Within 10 business days after taking a mortgage application, the broker or originator for any mortgage on residential property within the program area must submit to the predatory lending database all of the information required under Section 72 and any other information required by the Department by rule. Within 7 business days after receipt of the information, the Department shall compare that information to the housing counseling standards in Section 73 and issue to the borrower and the broker or originator a determination of whether counseling is recommended for the borrower. The borrower may not waive counseling. If at any time after submitting the information required under Section 72 the broker or originator (i) changes the terms of the loan or (ii) issues a new commitment to the borrower, then, within 5 business days thereafter, the broker or originator shall re-submit all of the information required under Section 72 and, within 4 business days after receipt of the information re-submitted by the broker or originator, the Department shall compare that information to the housing counseling standards in Section 73 and shall issue to the borrower and the broker or originator a new determination of whether re-counseling is recommended for the borrower based on the information re-submitted by the broker or originator. The Department shall require re-counseling if the loan terms have been modified to meet another counseling standard in Section 73, or if the broker has increased the interest rate by more than 200 basis points. (d) If the Department recommends counseling for the borrower under subsection (c), then the Department shall notify the borrower of all participating HUD-approved counseling agencies located within the State and, where applicable, nationally HUD-approved counseling agencies, and direct the borrower to interview with a counselor associated with one of those agencies. Within 10 business days after receipt of the notice of HUD-approved counseling agencies, it is the borrower's responsibility to select one of those agencies and shall engage in an interview with a counselor associated with that agency. The borrower must supply all necessary documents, as set forth by the counselor, at least 72 hours before the scheduled interview. The selection must take place and the appointment for the interview must be set within 10 business days, although the interview may take place beyond the 10 business day period. Within 7 business days after interviewing the borrower, the counselor must submit to the predatory lending database all of the information required under Section 74 and any other information required by the Department by rule. Reasonable and customary costs not to exceed $300 associated with counseling provided under the program shall be paid by the broker or originator and shall not be charged back to, or recovered from, the borrower. The Department shall annually calculate to the nearest dollar an adjusted rate for inflation. A counselor shall not recommend or suggest that a borrower contact any specific mortgage origination company, financial institution, or entity that deals in mortgage finance to obtain a loan, another quote, or for any other reason related to the specific mortgage transaction; however, a counselor may suggest that the borrower seek an opinion or a quote from another mortgage origination company, financial institution, or entity that deals in mortgage finance. A counselor or housing counseling agency that in good faith provides counseling shall not be liable to a broker or originator or borrower for civil damages, except for willful or wanton misconduct on the part of the counselor in providing the counseling. (e) The broker or originator and the borrower may not take any legally binding action concerning the loan transaction until the later of the following: (1) the Department issues a determination not to | ||
| ||
(2) the Department issues a determination that | ||
| ||
(f) Within 10 business days after closing, the title insurance company or closing agent must submit to the predatory lending database all of the information required under Section 76 and any other information required by the Department by rule. (g) The title insurance company or closing agent shall attach to the mortgage a certificate of compliance with the requirements of this Article, as generated by the database. If the transaction is exempt, the title insurance company or closing agent shall attach to the mortgage a certificate of exemption, as generated by the database. Each certificate of compliance or certificate of exemption must contain, at a minimum, one of the borrower's names on the mortgage loan and the property index number for the subject property. If the title insurance company or closing agent fails to attach the certificate of compliance or exemption, whichever is required, then the mortgage is not recordable. In addition, if any lis pendens for a residential mortgage foreclosure is recorded on the property within the program area, a certificate of service must be simultaneously recorded that affirms that a copy of the lis pendens was filed with the Department. A lis pendens filed after July 1, 2016 shall be filed with the Department electronically. If the certificate of service is not recorded, then the lis pendens pertaining to the residential mortgage foreclosure in question is not recordable and is of no force and effect. (h) All information provided to the predatory lending database under the program is confidential and is not subject to disclosure under the Freedom of Information Act, except as otherwise provided in this Article. Information or documents obtained by employees of the Department in the course of maintaining and administering the predatory lending database are deemed confidential. Employees are prohibited from making disclosure of such confidential information or documents. Any request for production of information from the predatory lending database, whether by subpoena, notice, or any other source, shall be referred to the Department of Financial and Professional Regulation. Any borrower may authorize in writing the release of database information. The Department may use the information in the database without the consent of the borrower: (i) for the purposes of administering and enforcing the program; (ii) to provide relevant information to a counselor providing counseling to a borrower under the program; or (iii) to the appropriate law enforcement agency or the applicable administrative agency if the database information demonstrates criminal, fraudulent, or otherwise illegal activity. (i) Nothing in this Article is intended to prevent a borrower from making his or her own decision as to whether to proceed with a transaction. (j) Any person who violates any provision of this Article commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act. (j-1) A violation of any provision of this Article by a mortgage banking licensee or licensed mortgage loan originator shall constitute a violation of the Residential Mortgage License Act of 1987. (j-2) A violation of any provision of this Article by a title insurance company, title agent, or escrow agent shall constitute a violation of the Title Insurance Act. (j-3) A violation of any provision of this Article by a housing counselor shall be referred to the Department of Housing and Urban Development. (k) During the existence of the program, the Department shall submit semi-annual reports to the Governor and to the General Assembly by May 1 and November 1 of each year detailing its findings regarding the program. The report shall include, by county, at least the following information for each reporting period: (1) the number of loans registered with the program; (2) the number of borrowers receiving counseling; (3) the number of loans closed; (4) the number of loans requiring counseling for each | ||
| ||
(5) the number of loans requiring counseling where | ||
| ||
(6) the number of licensed mortgage brokers and loan | ||
| ||
(7) the number of investigations based on information | ||
| ||
(8) a summary of the types of non-traditional | ||
| ||
(9) a summary of how the Department is actively | ||
| ||
(Source: P.A. 103-1015, eff. 1-1-25 .) |
(765 ILCS 77/72) Sec. 72. Originator; required information. As part of the predatory lending database program, the broker or originator must submit all of the following information for inclusion in the predatory lending database for each loan for which the originator takes an application: (1) The borrower's name, address, social security | ||
| ||
(2) The address and a description of the collateral | ||
| ||
(3) The borrower's credit score at the time of | ||
| ||
(4) Information about the originator and the company | ||
| ||
(5) (Blank).
(6) All information indicated in connection with the | ||
| ||
(7) Annual real estate taxes for the property, | ||
| ||
(8) Information concerning how the broker or | ||
| ||
(9) Information concerning the notices provided by | ||
| ||
(10) Information concerning whether a sale and | ||
| ||
(11) Any and all financing by the borrower for the | ||
| ||
(12) Loan information, including interest rate, term, | ||
| ||
(13) Whether the buyer is a first-time homebuyer or | ||
| ||
(14) Whether the loan permits interest only payments. (15) Whether the loan may result in negative | ||
| ||
(16) Whether the total points and fees payable by the | ||
| ||
(17) Whether the loan includes a prepayment penalty, | ||
| ||
(18) Whether the loan is an ARM. All information entered into the predatory lending database must be true and correct to the best of the originator's knowledge. The originator shall, prior to closing, correct, update, or amend the data as necessary. If any corrections become necessary after the file has been accessed by the closing agent or housing counselor, a new file must be entered. (Source: P.A. 100-509, eff. 9-15-17.) |
(765 ILCS 77/73)
Sec. 73. Standards for counseling. A borrower or borrowers subject to this Article shall be recommended for counseling if, after reviewing the information in the predatory lending database submitted under Section 72, the Department finds the borrower or borrowers are all first-time homebuyers or refinancing a primary residence and the loan is a mortgage that includes one or more of the following: (1) the loan permits interest only payments; (2) the loan may result in negative amortization; (3) the total points and fees payable by the borrower | ||
| ||
(4) the loan includes a prepayment penalty; or (5) the loan is an ARM.
(Source: P.A. 95-691, eff. 6-1-08 .) |
(765 ILCS 77/74) Sec. 74. Counselor; required information. As part of the predatory lending database program, a counselor must submit all of the following information for inclusion in the predatory lending database: (1) The information called for in items (1), (6), | ||
| ||
(2) Any information from the borrower that confirms | ||
| ||
(3) The name of the counselor and address of the | ||
| ||
(4) Information pertaining to the borrower's monthly | ||
| ||
(5) A list of the disclosures furnished to the | ||
| ||
(6) Whether the borrower provided tax returns to the | ||
| ||
(7) A statement of the recommendations of the | ||
| ||
(A) The loan should not be approved due to | ||
| ||
(B) The loan should be approved; no material | ||
| ||
(C) The borrower cannot afford the loan. (D) The borrower does not understand the | ||
| ||
(E) The borrower does not understand the costs | ||
| ||
(F) The borrower's monthly income and expenses | ||
| ||
(G) The rate of the loan is above market rate. (H) The borrower should seek a competitive bid | ||
| ||
(I) There are discrepancies between the | ||
| ||
(J) The borrower is precipitously close to not | ||
| ||
(K) The borrower understands the true cost of | ||
| ||
(L) The information that the borrower provided | ||
| ||
(Source: P.A. 97-813, eff. 7-13-12; 98-1081, eff. 1-1-15 .) |
(765 ILCS 77/76) Sec. 76. Title insurance company or closing agent; required information. As part of the predatory lending database program, a title insurance company or closing agent must submit all of the following information for inclusion in the predatory lending database:
(1) The borrower's name, address, social security | ||
| ||
(2) The address, permanent index number, and a | ||
| ||
(3) Annual real estate taxes for the property, | ||
| ||
(4) All itemizations and descriptions set forth in or | ||
| ||
(5) The name and license number of the title | ||
| ||
(6) The names and addresses of all originators, | ||
| ||
(7) The date of closing, a detailed list of all | ||
| ||
(Source: P.A. 100-509, eff. 9-15-17.) |
(765 ILCS 77/78) Sec. 78. Exemption. Borrowers applying for reverse mortgage financing of residential real estate including under programs regulated by the Federal Housing Administration (FHA) that require HUD-approved counseling are exempt from the program and may submit a HUD counseling certificate to comply with the program. A certificate of exemption is required for recording.
Mortgages secured by non-owner occupied property, commercial property, residential property consisting of more than 4 units, and government property are exempt but require a certificate of exemption for recording. Mortgages originated by an exempt person or entity are exempt but require a certificate of exemption for recording. (Source: P.A. 98-463, eff. 8-16-13; 98-1081, eff. 1-1-15 .) |
(765 ILCS 77/80) Sec. 80. Predatory Lending Database Program Fund. The Predatory Lending Database Program Fund is created as a special fund in the State treasury. Subject to appropriation, moneys in the Fund shall be appropriated to the Illinois Housing Development Authority for the purpose of making grants for HUD-approved counseling agencies participating in the Predatory Lending Database Program to assist with implementation and development of the Predatory Lending Database Program.
(Source: P.A. 98-1081, eff. 1-1-15 .) |
(765 ILCS 77/Art. 4 heading)
ARTICLE 4
EFFECTIVE DATE
(Source: P.A. 94-280, eff. 1-1-06.)
|
(765 ILCS 77/99)
Sec. 99.
This Act takes effect on October 1, 1994.
(Source: P.A. 88-111.)
|