Section 1050.1230  Changes Affecting Loans in Process

a)         If it is determined that a borrower does not qualify for the loan amount, terms or program for which he or she applied and the costs of another recommended program would materially differ from the costs itemized on the good faith estimate, the licensee immediately shall provide to the customer a written and, when possible, a verbal, plain-English explanation of any program the licensee recommends as one for which the borrower may be qualified.  The explanation shall include, but not be limited to, detailed information on costs to the borrower.

b)         When any notice is received from a secondary market underwriter, an investor, the Federal Housing Administration or the Veteran's Administration that materially affects a loan in process, the licensee processing the loan application shall so notify the customer in writing and, when possible, verbally, immediately upon receipt of the notice.  Examples include, but are not limited to, future or immediate change of rules or requirements, discontinuation of a specific loan program, failure by the borrower to qualify, and alternatives, if any, available to the borrower.

(Source:  Amended at 29 Ill. Reg. 14808, effective September 26, 2005)