Reprint from the Chicago Association of Realtors
Public Act 94-280 (HB 4050 from the 94th General Assembly) establishes a pilot program targeting communities with a high proportion of predatory loans, higher than average foreclosure rates and unusually high numbers of mortgages for individual properties. In those communities, the pilot program has been designed to provide additional financial guidance to families who wish to take on a mortgage, or refinance the mortgage they already have. In addition, the pilot program will allow the State to gather important information on the kinds of loans being offered to Chicagoans and the costs and terms of those loans.
New!—Comment Submitted to Secretary Dean Martinez Regarding New Proposed HB 4050 Rules
NEW!- NEW RULES FOR HB 4050 WERE PUBLISHED APRIL 6 WITH A 45-DAY COMMENT PERIOD
ALL OF COOK COUNTY INCLUDED AS HB4050 IS RE-INSTATED
Rule making process begins – public comment is being solicited by C.A.R. As anticipated, the Governor has ordered the Illinois Department of Financial and Professional Regulation to promulgate rules for REVIEW and future implementation on an expanded scope for HB4050. These rules should be shared with all of your staff as well as with lenders and other associated parties you work with. There will be a 45-day review process. We encourage all of you to organize your thoughts and to prepare written testimony for submission to the Joint Committee on Rules (JCAR)
NEW PROPOSED LEGISLATION-SB 703-FEBRUARY, 2007
Amends the Conveyances Act. Provides that every mortgage securing residential real estate shall have attached a rider, certified by the mortgage lender, that states the name of each participant in the origination of the mortgage, the participant’s applicable license or registration number, if any, and the participant’s function by using these function categories mortgage origination company; loan officer; appraiser; real estate broker for the seller, real estate broker for the buyer, lender funding the mortgage; and title insurance company. Provides that a mortgage on residential real estate that is subject to the Illinois predatory lending database pilot program must have attached to it a certificate of compliance or a certificate of exemption issued pursuant to that program.
IAR has met with the mortgage industry, the industry behind the introduction of SB 703, and has been assured that before any action is taken on the bill; any language referencing the predatory lending database pilot program will be removed from the bill. IAR will oppose the bill until this language is removed. Also, since this bill was introduced as an initiative of the mortgage industry there is no intent for this bill to recreate HB 4050.
CHICAGO TITLE TO CLOSE AND INSURE MORTGAGES WITHOUT HB4050 REQUIREMENTS
Following the Governor’s Jan. 19 suspension of the Illinois Predatory Lending Database Pilot Program (HB4050), the Fidelity National Family of Title Companies (Chicago Title, Fidelity National, Ticor and Security Union) issued this statement on Jan. 22: “We are now advised that the Cook County Recorder will accept mortgages for recording whether in the 10 zip codes or not without any Certificates of Compliance or Exemption. Accordingly, we are prepared to close and insure mortgages as though the Predatory Lending Database Pilot Program Act did not exist. No requirements; no exceptions.” IAR will continue to monitor this development and keep you apprised of further details.
- Learn more about HB 4050 (Excerpt from the IAR Weekly Connection.)