Illinois General Assembly

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 Bill Status of SB1281  99th General Assembly


Short Description:  REVERSE MORTGAGE ACT

Senate Sponsors
Sen. Linda Holmes - Jacqueline Y. Collins - Patricia Van Pelt - Kimberly A. Lightford - Emil Jones, III, Napoleon Harris, III, David Koehler and Wm. Sam McCann

House Sponsors
(Rep. Jay Hoffman - La Shawn K. Ford)

Last Action
DateChamber Action
  11/30/2016SenateBill Dead - Amendatory Veto

Statutes Amended In Order of Appearance
20 ILCS 105/4.01from Ch. 23, par. 6104.01
205 ILCS 5/6.1from Ch. 17, par. 313.1
205 ILCS 5/6.2
205 ILCS 5/6.3 new
205 ILCS 5/6.4 new
205 ILCS 5/6.5 new
205 ILCS 5/6.6 new
205 ILCS 5/6.7 new
205 ILCS 5/6.8 new
205 ILCS 5/5a rep.
205 ILCS 205/1010 rep.
205 ILCS 305/46from Ch. 17, par. 4447
205 ILCS 305/46.1from Ch. 17, par. 4447.1
205 ILCS 305/46.2 rep.
205 ILCS 635/5-5


Synopsis As Introduced
Amends the Illinois Act on the Aging. Provides that the Department on Aging has the power and duty to develop the content and format of a statement regarding non-recourse reverse mortgage loans under a specified provision of the Illinois Banking Act. Provides that the statement shall provide independent consumer information regarding the potential benefits and risks associated with non-recourse reverse mortgages, potential alternatives to non-recourse reverse mortgages, and the availability of independent counseling services, including services provided by nonprofit agencies certified by the federal government to provide required counseling for non-recourse reverse mortgages insured by the federal government. Amends the Illinois Banking Act. Provides that a reverse mortgage may be subject to any additional terms and conditions imposed by a lender that are required under the provisions of the federal Housing and Community Development Act of 1987 to enable the lender to obtain federal government insurance on mortgage borrowers 62 years of age or older if the loans are to be insured under that Act. Makes changes to provisions concerning the definition of a "reverse mortgage" and other definitions, repayment obligations under a reverse mortgage, disclosure requirements, restrictions on cross-selling, and certification requirements. Repeals a provision that regulated reverse mortgages. Amends the Savings Bank Act. Repeals a provision concerning reverse mortgage disclosures. Amends the Illinois Credit Union Act. Removes a provision concerning credit unions making reverse mortgages. Removes the definition of "real estate". Amends the Residential Mortgage License Act of 1987. Makes corresponding changes requiring licensees to follow the requirements of the Illinois Banking Act.

Senate Floor Amendment No. 1
Deletes reference to:
205 ILCS 5/6.1from Ch. 17, par. 313.1
205 ILCS 5/6.2
205 ILCS 5/6.3 new
205 ILCS 5/6.4 new
205 ILCS 5/6.5 new
205 ILCS 5/6.6 new
205 ILCS 5/6.7 new
205 ILCS 5/6.8 new
205 ILCS 305/46.1from Ch. 17, par. 4447.1
205 ILCS 635/5-5
Adds reference to:
New Act
205 ILCS 5/6.1 rep.
205 ILCS 5/6.2 rep.
205 ILCS 305/46.1 rep.
205 ILCS 305/46.2 rep.
205 ILCS 635/5-5A new
205 ILCS 635/5-5 rep.
815 ILCS 505/2Zfrom Ch. 121 1/2, par. 262Z

Replaces everything after the enacting clause. Creates the Reverse Mortgage Act. Establishes requirements for lenders of reverse mortgages, establishes disclosure requirements, requires a 3-day cooling-off period before a borrower can be bound by the loan terms, and prohibits certain activities by lenders. Amends the Attorney General Act. Provides that the Office of the Attorney General shall develop documents regarding reverse mortgage loans for the purpose of consumer education. Provides that only the Attorney General may enforce violations of the Act. Amends the Illinois Act on the Aging, the Illinois Banking Act, the Savings Bank Act, the Illinois Credit Union Act, and the Residential Mortgage License Act of 1987 to remove references to non-recourse reverse mortgage loans. Amends the Residential Mortgage License Act of 1987. Provides that any violation of the Reverse Mortgage Act by a residential mortgage licensee shall be considered a violation of the Residential Mortgage License Act of 1987. Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that any person who knowingly violates the Reverse Mortgage Act commits an unlawful practice within the meaning of the Consumer Fraud and Deceptive Business Practices Act.

House Floor Amendment No. 2
Deletes reference to:
New Act
20 ILCS 105/4.01
205 ILCS 5/5a rep.
205 ILCS 5/6.1 rep.
205 ILCS 5/6.2 rep.
205 ILCS 205/1010 rep.
205 ILCS 305/46
205 ILCS 305/46.1 rep.
205 ILCS 305/46.2 rep.
205 ILCS 635/5-5A new
205 ILCS 635/5-5 rep.
815 ILCS 505/2Z
Adds reference to:
415 ILCS 5/14.7 new
605 ILCS 5/4-106 new

Replaces everything after the enacting clause. Amends the Environmental Protection Act. Requires the Environmental Protection Agency to adopt rules governing corrosion prevention projects affecting a public water supply. Amends the Illinois Highway Code. Authorizes the Department of Transportation to adopt rules governing corrosion prevention projects affecting eligible bridges. Exempts persons licensed under the Professional Engineering Practice Act of 1989 or the Structural Engineering Act of 1989. Provides for consideration of industry standards and the handling of hazardous materials. Defines terms. Effective July 1, 2016.

Governor Amendatory Veto Message
Recommends: adding a definition of "protective coatings personnel"; changing the language amending the Environmental Protection Act by providing that a contract procured pursuant to the Illinois Procurement Code for the provision of services covered by the provisions of the bill amending the Environmental Protection Act shall comply with applicable provisions of the Illinois Procurement Code and shall include provisions for reporting participation by minority persons, females, and veterans in apprenticeship and training programs in which the contractor or its subcontractors participate; and making other changes.

Actions 
DateChamber Action
  2/18/2015SenateFiled with Secretary by Sen. Jacqueline Y. Collins
  2/18/2015SenateFirst Reading
  2/18/2015SenateReferred to Assignments
  2/25/2015SenateAssigned to Financial Institutions
  3/11/2015SenateAdded as Chief Co-Sponsor Sen. Patricia Van Pelt
  3/12/2015SenateAdded as Chief Co-Sponsor Sen. Kimberly A. Lightford
  3/17/2015SenateAdded as Chief Co-Sponsor Sen. Emil Jones, III
  3/25/2015SenateDo Pass Financial Institutions; 009-000-000
  3/25/2015SenatePlaced on Calendar Order of 2nd Reading March 26, 2015
  4/21/2015SenateSecond Reading
  4/21/2015SenatePlaced on Calendar Order of 3rd Reading April 22, 2015
  4/23/2015SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. Jacqueline Y. Collins
  4/23/2015SenateSenate Floor Amendment No. 1 Referred to Assignments
  4/23/2015SenateAdded as Co-Sponsor Sen. Napoleon Harris, III
  4/23/2015SenateAdded as Co-Sponsor Sen. David Koehler
  4/24/2015SenateRule 2-10 Committee/3rd Reading Deadline Established As May 15, 2015
  4/28/2015SenateSenate Floor Amendment No. 1 Assignments Refers to Financial Institutions
  4/29/2015SenateSenate Floor Amendment No. 1 Recommend Do Adopt Financial Institutions; 008-000-000
  4/29/2015SenateRecalled to Second Reading
  4/29/2015SenateSenate Floor Amendment No. 1 Adopted; Collins
  4/29/2015SenatePlaced on Calendar Order of 3rd Reading
  4/29/2015SenateThird Reading - Passed; 053-000-000
  4/29/2015HouseArrived in House
  4/29/2015HouseChief House Sponsor Rep. Arthur Turner
  4/29/2015HouseFirst Reading
  4/29/2015HouseReferred to Rules Committee
  5/4/2015HouseAdded Alternate Chief Co-Sponsor Rep. La Shawn K. Ford
  5/29/2015HouseFinal Action Deadline Extended-9(b) May 31, 2015
  5/29/2015HouseAssigned to Labor & Commerce Committee
  5/29/2015HouseMotion Filed to Suspend Rule 21 Labor & Commerce Committee; Rep. Barbara Flynn Currie
  5/29/2015HouseMotion Prevailed
  5/29/2015HouseHouse Committee Amendment No. 1 Filed with Clerk by Rep. Jay Hoffman
  5/29/2015HouseHouse Committee Amendment No. 1 Referred to Rules Committee
  5/29/2015HouseAlternate Chief Sponsor Changed to Rep. Jay Hoffman
  5/29/2015HouseDo Pass / Short Debate Labor & Commerce Committee; 025-000-000
  5/29/2015HouseHouse Committee Amendment No. 1 Tabled Pursuant to Rule 40
  5/29/2015HousePlaced on Calendar 2nd Reading - Short Debate
  5/29/2015HouseSecond Reading - Short Debate
  5/29/2015HouseHeld on Calendar Order of Second Reading - Short Debate
  5/30/2015HouseHouse Floor Amendment No. 2 Filed with Clerk by Rep. Jay Hoffman
  5/30/2015HouseHouse Floor Amendment No. 2 Referred to Rules Committee
  5/30/2015HouseHouse Floor Amendment No. 2 Recommends Be Adopted Rules Committee; 005-000-000
  5/30/2015HouseHouse Floor Amendment No. 2 Adopted
  5/30/2015HousePlaced on Calendar Order of 3rd Reading - Short Debate
  5/30/2015HouseThird Reading - Short Debate - Passed 112-000-000
  5/30/2015SenateChief Sponsor Changed to Sen. Linda Holmes
  5/30/2015SenateAdded as Chief Co-Sponsor Sen. Jacqueline Y. Collins
  5/30/2015SenateSecretary's Desk - Concurrence House Amendment(s) 2
  5/30/2015SenatePlaced on Calendar Order of Concurrence House Amendment(s) 2 - May 31, 2015
  5/31/2015SenateHouse Floor Amendment No. 2 Motion to Concur Filed with Secretary Sen. Linda Holmes
  5/31/2015SenateHouse Floor Amendment No. 2 Motion to Concur Referred to Assignments
  5/31/2015SenateAdded as Co-Sponsor Sen. Wm. Sam McCann
  5/31/2015SenateHouse Floor Amendment No. 2 Motion to Concur Be Approved for Consideration Assignments
  5/31/2015SenateHouse Floor Amendment No. 2 Senate Concurs 054-000-000
  5/31/2015SenateSenate Concurs 054-000-000
  5/31/2015SenateMotion Filed to Reconsider Vote Sen. John J. Cullerton
  9/12/2016SenateMotion Withdrawn Sen. John J. Cullerton
  9/12/2016SenatePassed Both Houses
  9/12/2016SenateSent to the Governor
  11/10/2016SenateGovernor Amendatory Veto
  11/15/2016SenatePlaced on Calendar Amendatory Veto November 16, 2016
  11/30/2016SenateBill Dead - Amendatory Veto

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