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92nd General Assembly

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Public Act 92-0577

HB5742 Enrolled                                LRB9215341JSpc

    AN ACT concerning reverse mortgage loans.

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

    Section 5.  The Illinois Banking Act is amended by adding
Section 6.2 as follows:

    (205 ILCS 5/6.2 new)
    Sec.  6.2.  Reverse mortgage;   disclosure. At the time a
reverse mortgage loan is made, the lender must provide to the
mortgagor a separate document that informs the mortgagor that
by obtaining the reverse mortgage the mortgagor's eligibility
to obtain a tax  deferral  under  the  Senior  Citizens  Real
Estate  Tax  Deferral  Act  may  be  adversely  affected. The
mortgagor must sign the disclosure document as  part  of  the
reverse mortgage transaction.

    Section 10.  The Illinois Savings and Loan Act of 1985 is
amended by adding Section 1-6e as follows:

    (205 ILCS 105/1-6e new)
    Sec.  1-6e.  Reverse mortgage;  disclosure. At the time a
reverse mortgage loan is made, the lender must provide to the
mortgagor a separate document that informs the mortgagor that
by obtaining the reverse mortgage the mortgagor's eligibility
to obtain a tax  deferral  under  the  Senior  Citizens  Real
Estate  Tax  Deferral  Act  may  be  adversely  affected. The
mortgagor must sign the disclosure document as  part  of  the
reverse mortgage transaction.

    Section  15.  The  Savings  Bank Act is amended by adding
Section 1010 as follows:
    (205 ILCS 205/1010 new)
    Sec. 1010.  Reverse mortgage;  disclosure. At the time  a
reverse mortgage loan is made, the lender must provide to the
mortgagor a separate document that informs the mortgagor that
by obtaining the reverse mortgage the mortgagor's eligibility
to  obtain  a  tax  deferral  under  the Senior Citizens Real
Estate Tax  Deferral  Act  may  be  adversely  affected.  The
mortgagor  must  sign  the disclosure document as part of the
reverse mortgage transaction.

    Section 20.  The Illinois Credit Union Act is amended  by
adding Section 46.2 as follows:

    (205 ILCS 305/46.2 new)
    Sec.  46.2.  Reverse mortgage;  disclosure. At the time a
reverse mortgage loan is made, the lender must provide to the
mortgagor a separate document that informs the mortgagor that
by obtaining the reverse mortgage the mortgagor's eligibility
to obtain a tax  deferral  under  the  Senior  Citizens  Real
Estate  Tax  Deferral  Act  may  be  adversely  affected. The
mortgagor must sign the disclosure document as  part  of  the
reverse mortgage transaction.

    Section 25.  The Residential Mortgage License Act of 1987
is amended by adding Section 5-5 as follows:

    (205 ILCS 635/5-5 new)
    Sec.  5-5.  Reverse  mortgage;  disclosure. At the time a
reverse mortgage loan is made or brokered,  a  licensee  must
provide to the mortgagor a separate document that informs the
mortgagor   that   by  obtaining  the  reverse  mortgage  the
mortgagor's eligibility to obtain a tax  deferral  under  the
Senior Citizens Real Estate Tax Deferral Act may be adversely
affected.  The mortgagor must sign the disclosure document as
part of the reverse mortgage transaction.

    Section 99.  Effective date. This Act takes  effect  upon
becoming law.
    Passed in the General Assembly April 25, 2002.
    Approved June 26, 2002.
    Effective June 26, 2002.

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