HB3775 98TH GENERAL ASSEMBLY

LRB098 15165 ZMM 50142 b

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.

A BILL FOR

AN ACT concerning regulation.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Residential Mortgage License Act of 1987 is amended by adding Section 5-6.1 as follows:

(205 ILCS 635/5-6.1 new)

Sec. 5-6.1. Private trust agreements. A licensee acting on behalf of a borrower engaged in a real property transaction may not require that the seller of the real property or his or her agent disclose the terms of a private trust agreement regarding the real property if the seller or his or her agent has obtained title insurance in connection with the transaction in the manner prescribed by the Title Insurance Act. Nor shall a licensee withhold approval or threaten to withhold approval of the borrower's residential mortgage loan on the grounds that the seller or his or her agent has not disclosed the terms of a private trust agreement regarding the real property.