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91_HJ0059
LRB9113707CBcbB
1 HOUSE JOINT RESOLUTION
2 WHEREAS, Illinois residential mortgage foreclosures have
3 increased nearly forty times since 1993 according to a recent
4 published foreclosure report by the National Training and
5 Information Center; and
6 WHEREAS, These residential mortgage foreclosures appear
7 to result from unscrupulous lending practices involving
8 misleading marketing and high pressure lending tactics,
9 excessive fees, exorbitant interest rates, and hidden loan
10 terms; and
11 WHEREAS, These lending practices and high cost loans
12 strip hard earned equity from Illinois homeowners who cannot
13 ever afford to repay; and
14 WHEREAS, These lending practices contribute to an
15 increase in abandoned homes which leads to greater drug and
16 crime activity in and around those vacant homes; and
17 WHEREAS, Regulatory oversight of these lenders who engage
18 in these lending practices has been at best inadequate; and
19 WHEREAS, The Illinois General Assembly desires additional
20 information concerning the extent of these lending practices
21 in Illinois to better determine an appropriate legislative
22 and regulatory response to the alarming incidence of mortgage
23 default and foreclosure; therefore, be it
24 RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
25 NINETY-FIRST GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, THE
26 SENATE CONCURRING HEREIN, that the Commissioner of Banks and
27 Real Estate is directed, pursuant to Section 48 of the
28 Illinois Banking Act (205 ILCS 5/48) and Sections 4-1 through
29 4-14 of the Residential Mortgage License Act of 1987 (205
30 ILCS 635/4-1 through 4-14), to prepare and deliver on or
31 before November 1, 2000 to the President and Minority Leader
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1 of the Senate and the Speaker and Minority Leader of the
2 House of Representatives a report detailing the following:
3 1. The number of high cost loans - meaning loans
4 with an annual percentage rate exceeding by 5 or more
5 percentage points the yield on the United States
6 securities having comparable periods of maturity to the
7 loan's maturity, measured as of the 15th day of each
8 month - made by the licensee, since January 1, 1996;
9 2. The market share ratio of the licensee's
10 refinance loans in minority census tracts to non-minority
11 census tracts, since January 1, 1996;
12 3. The market share ratio of the licensee's
13 refinance loans in low and moderate income census tracts
14 to middle and upper income census tracts, with ratios of
15 high cost loans broken out separately and considering
16 each licensee and affiliate separately in the
17 calculations, since January 1, 1996;
18 4. The number of foreclosures upon residential
19 properties including FHA and non-FHA loans in each
20 legislative district, since January 1, 1996;
21 5. The ratio of foreclosures upon residential
22 properties including FHA and non-FHA loans in minority
23 census tracts to non-minority tracts, since January 1,
24 1996;
25 6. The ratio of foreclosures upon residential
26 properties including FHA and non-FHA loans in low and
27 moderate income census tracts to middle and upper income
28 census tracts, since January 1, 1996;
29 7. The number of defaults in residential mortgage
30 loans brokered in each legislative district by year,
31 since January 1, 1996;
32 8. The number of residential home purchase
33 complaints in each legislative district expressed by a
34 mortgagor to the Office including but not limited to
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1 complaints of fraudulent, high-pressure, and misleading
2 marketing and sales efforts to sell high cost loans;
3 excessive fees and exorbitant interest rates; the
4 financing of those excessive origination fees as well as
5 fees for excessively priced products into high cost
6 loans, since January 1, 1996;
7 9. The number of short-term balloon payment plans
8 utilized in each legislative district, since January 1,
9 1996; and
10 10. The number of residential mortgage loans in each
11 legislative district that where refinanced and charged
12 additional points, charges, or other costs and secured by
13 residential real estate within a two year period after
14 the original loan was made, since January 1, 1996; and be
15 it further
16 RESOLVED, That a suitable copy of this resolution be
17 delivered to the Commissioner of Banks and Real Estate.