House Sponsors: BURKE-DELGADO-SCHOENBERG-MORROW-JONES,LOU, RYAN, O'CONNOR, MCKEON, KENNER, HOWARD AND HAMOS. Senate Sponsors: LUECHTEFELD-LAUZEN Short description: STATE $-FINANCIAL INSTITUTIONS Synopsis of Bill as introduced: Creates the Home Loan Collateral Fund Act. Creates the Home Loan Collateral Fund, which is to be administered by the State Treasurer to provide collateral for Illinois citizens seeking home loans for a home in the State or seeking to avoid foreclosure on an existing home loan for a home in the State. Provides procedures for and restrictions on the administration of the Fund. Amends the State Finance Act to create the special fund in the State treasury. Effective immediately. FISCAL NOTE (State Treasurer) HB 2439 creates the Home Loan Collateral Fund with a transfer of $5,000,000. The Treasurer's Office anticipates that admin- istrative costs will be $200,000 of that amount. SENATE AMENDMENT NO. 1. Deletes reference to: New Act 30 ILCS 105/5.545 new Adds reference to: 15 ILCS 520/7 from Ch. 130, par. 26 Deletes everything. Amends the Deposit of State Moneys Act. Provides that the State Treasurer may accept a reduced rate of interest on deposits of State moneys from a financial institution if the institution agrees to (i) make home loans to Illinois citizens purchasing a home in Illinois in situations where the institution would not offer the borrower a home loan under the institution's prevailing credit standards without the incentive of the reduced rate of interest on deposits of State moneys and (ii) refrain from commencing or pursuing foreclosure proceedings with respect to home loans of Illinois citizens who have failed to make payments on the home loan as a result of a temporary layoff or disability when under the institutions prevailing policies it would commence or pursue foreclosure proceedings without the incentive of a reduced rate of interest on deposits of State moneys. Effective immediately. SENATE AMENDMENT NO. 2. Further amends the Deposit of State Moneys Act. Allows certain interest income on deposits of State moneys to be used to secure up to 10% of (i) home loans in situations where the financial institu- tion would not offer the borrower a loan under the institution's pre- vailing credit standards without the incentive of a reduced rate of interest on deposits of State moneys and (ii) existing home loans that would be subject to foreclosure under an institution's prevail- ing policies if it were not for the incentive of a reduced rate of interest on deposits of State moneys (instead of allowing the in- stitution to pay a reduced rate of interest if it agrees to a plan to make those loans). Last action on Bill: PUBLIC ACT.............................. 92-0482 Last action date: AUG-23-2001 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 2 END OF INQUIRY Full Text Bill Status