Section 190.580  Third Party Review

In the case of each subject loan, upon approval of the loan application, the lender shall advise the borrower in writing of the opportunity to seek independent review of the loan terms in order to determine affordability of the loan.  When and if the General Assembly appropriates adequate funding to the Division of Financial Institutions specifically for this program:

a)         Every borrower who chooses to participate in the independent review provided in this Subpart shall submit information requested on the worksheets outlined in Appendix A and B.

b)         The Division shall provide the borrower with a review of the worksheets and inform the borrower of the amount the borrower has available for a monthly mortgage payment based upon the borrower's budget.  The Division shall also provide a projection of the payments required under the terms of the loan based upon a review of loan information pertaining to balloon payments, adjustable interest rates and other items disclosed by the loan documents affecting the amount of payment.

c)         The borrower shall receive a copy of the completed forms and shall sign the forms acknowledging receipt.  A copy of the written and signed forms shall be submitted to the lender prior to the closing of the loan and shall become a part of the permanent file for the loan.

If, based upon the review, the borrower determines that the loan is not in his or her best economic interest, the reviewer shall so note this in the completed forms sent to the lender.  This determination shall enable the borrower to withdraw from the contemplated loan with no financial penalty.

(Source:  Amended at 30 Ill. Reg. 18919, effective December 4, 2006)