DAVIS,STEVE-FOWLER-FORBY-HOFFMAN-HOLBROOK. 735 ILCS 5/15-1403 from Ch. 110, par. 15-1403 735 ILCS 5/15-1406 new Amends the Mortgage Foreclosure Article of the Code of Civil Procedure. Provides that, if a mortgagor of a single family residence experiences a temporary or permanent loss of employment because of a layoff, lockout, or strike and the employment had been the primary source of income of the mortgagor's household, the mortgagor may notify the mortgagee of those facts, the mortgagee may require the mortgagor to supply verification, and the mortgagor shall then supply verification. Provides that the mortgagee not then initiate or proceed with an action to foreclose on the mortgage or declare a default. Provides that the mortgagor shall make monthly interest and escrow payments, and when the mortgagor again becomes employed or one year has elapsed since the mortgagor or mortgagors began making monthly interest and escrow payments, the mortgagor shall resume regular monthly payments of principal and interest and shall remit additional monthly sums in equal monthly amounts that will pay in full, over a 6 month period, all principal that was unpaid during the loss of employment. Contains provisions concerning failure to comply, court stays, and applicability. FISCAL NOTE (Office of Banks and Real Estate) HB 2227 has no fiscal impact on the Office of Banks and Real Estate. Financial entities (mortgagees) would lose compound interest from delayed principal payments for up to an 18-month period. The Office of Banks and Real Estate is unable to cal- culate the fiscal impact on financial entities, because of un- known variables. HOUSING AFFORDABIILITY NOTE The proposed bill does not identify at what point in time the borrower may/shall notify the lender of his/her loss of emplyo- ment. As such, the financial impact on the lender cannot be determined. Both lenders and insurance companies will assume a higher degree of risk in making mortgage loans under this bill's provisions. To compensate for potentially higher losses, lenders may likely charge higher interest rates and insurance companies may establish higher premiums for mortgage insurance. In both cases, these can only be assumed but cannot be predict- ed or calculated with any degree of accuracy. FEB-22-2001 H FILED WITH CLERK FEB-22-2001 H FIRST READING FEB-22-2001 H REFERRED TO HOUSE RULES COMMITTEE RULES FEB-23-2001 H ASSIGNED TO COMMITTEE JUD-CIVIL LAW FEB-27-2001 H ADDED AS A JOINT SPONSOR FOWLER FEB-27-2001 H ADDED AS A JOINT SPONSOR FORBY MAR-07-2001 H ADDED AS A JOINT SPONSOR HOFFMAN MAR-07-2001 H ADDED AS A JOINT SPONSOR HOLBROOK MAR-08-2001 H DO PASS/STANDARD DEBATE 007-006-000 HJUA MAR-08-2001 H PLACED CAL 2ND READING-STANDARD DEBATE MAR-13-2001 H FISCAL NOTE REQUESTED BLACK MAR-13-2001 H HOUSING AFORDABLTY IMPCT NOTE REQUESTED BLACK MAR-13-2001 H CALENDAR ORDER 2ND READING-STANDARD DBT MAR-16-2001 H FISCAL NOTE FILED MAR-16-2001 H CALENDAR ORDER 2ND READING-STANDARD DBT MAR-19-2001 H HOUSING AFORDABILITY IMPCT NOTE FILED MAR-19-2001 H CALENDAR ORDER 2ND READING-STANDARD DBT APR-04-2001 H SECOND READING-STANDARD DEBATE APR-04-2001 H HELD CAL ORDER 2ND READING-STANDARD DBT APR-06-2001 H RE-REFERRED TO RULES COMM/RULE 19(A) RULES HRUL JAN-07-2003 H SESSION SINE DIE END OF INQUIRY Full Text Bill Summary