98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3775

 

Introduced , by Rep. Michael W. Tryon

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 635/5-6.1 new

    Amends the Residential Mortgage License Act of 1987. Provides that a mortgage lender acting on behalf of a borrower may not require that the seller of real property or his or her agent disclose the terms of a private trust agreement regarding the real property that is the subject of the underlying real estate transaction.


LRB098 15165 ZMM 50142 b

 

 

A BILL FOR

 

HB3775LRB098 15165 ZMM 50142 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Residential Mortgage License Act of 1987 is
5amended by adding Section 5-6.1 as follows:
 
6    (205 ILCS 635/5-6.1 new)
7    Sec. 5-6.1. Private trust agreements. A licensee acting on
8behalf of a borrower engaged in a real property transaction may
9not require that the seller of the real property or his or her
10agent disclose the terms of a private trust agreement regarding
11the real property if the seller or his or her agent has
12obtained title insurance in connection with the transaction in
13the manner prescribed by the Title Insurance Act. Nor shall a
14licensee withhold approval or threaten to withhold approval of
15the borrower's residential mortgage loan on the grounds that
16the seller or his or her agent has not disclosed the terms of a
17private trust agreement regarding the real property.