MORT CERTIF RELEASE-PENALTY Senate SponsorsSen. Jacqueline Y. Collins-James T. Meeks-Kwame Raoul-Mattie Hunter House Sponsors(Rep. Karen A. Yarbrough-LaShawn K. Ford-Lou Lang-Monique D. Davis-Annazette Collins, Daniel J. Burke, Joseph M. Lyons and Richard T. Bradley) 11/2/2007SenatePublic Act . . . . . . . . . 95-0691 765 ILCS 935/10.5 new Amends the Mortgage Certificate of Release Act. Provides that, if any title insurance company or its duly appointed title insurance agent, knowing the mortgage to be paid pursuant to the lender's written payoff statement, fails to file a certificate of release within one month after the payment of the debt secured by the mortgage or trust deed, the title company shall be liable for and pay to the party aggrieved the sum of $200, for each offense, which may be recovered by the party aggrieved in a civil action together with reasonable attorney's fees. Provides that, in any such action, introduction of a loan payment book or receipt that indicates that the obligation has been paid shall be sufficient evidence to raise a presumption that the obligation has been paid. Provides that, upon a finding for the party aggrieved, the court shall order the title insurance company or its duly appointed title insurance agent, to make, execute, and deliver the certificate of release that complies with the requirements of this Act.Senate Floor Amendment No. 1 Deletes reference to:765 ILCS 935/10.5 (new)Adds reference to:15 ILCS 520/7from Ch. 130, par. 26Deletes everything after the enacting clause. Amends the Deposit of State Moneys Act. Authorizes the State Treasurer to accept a proposal from an eligible institution that provides for interest earnings on deposits of State moneys to be held by the institution in a separate account that the State Treasurer may use to secure up to 10% of any home loans that are made to refinance loans that meet the definition of a "high risk home loan" or that are expected to meet the definition of "high risk home loan" during the term of the loan. In the definition of "home loan", provides that the principal amount of the loan may not exceed 50% of the conforming loan size limit (now, 50% of the conforming loan size limit for a single-family dwelling), as established from time to time by the Federal National Mortgage Association. Effective immediately.Senate Floor Amendment No. 2 Authorizes the State Treasurer to accept a proposal from an eligible institution that provides for interest earnings on deposits of State moneys to be held by the institution in a separate account that the State Treasurer may use to secure up to 10% of any home loans that the Treasurer determines would meet the definition of a "high risk home loan" during the term of the loan (instead of home loans that are expected to meet the definition of a "high risk home loan" during the term of the loan).House Amendment No. 1 Deletes reference to:15 ILCS 520/7from Ch. 130, par. 26Adds reference to:65 ILCS 95/11from Ch. 24, par. 1611205 ILCS 635/4-10from Ch. 17, par. 2324-10205 ILCS 635/4-15 new205 ILCS 635/4-16 new205 ILCS 635/5-6 new205 ILCS 635/5-7 new205 ILCS 635/5-8 new205 ILCS 635/5-9 new205 ILCS 635/5-10 new205 ILCS 635/5-11 new205 ILCS 635/5-12 new205 ILCS 635/5-14 new205 ILCS 635/5-15 new205 ILCS 635/5-16 new205 ILCS 635/5-17 new765 ILCS 77/70765 ILCS 77/72765 ILCS 77/73 new765 ILCS 77/74765 ILCS 77/78 new765 ILCS 940/5815 ILCS 205/4.1afrom Ch. 17, par. 6406Replaces everything after the enacting clause. Amends the Home Equity Assurance Act. Provides that a governing commission with no less than $4,000,000 in its guarantee fund, may, if authorized by referendum, establish a Foreclosure Prevention Loan Fund to provide low interest emergency loans to eligible applicants that may be forced into foreclosure proceedings. Provides that if a majority of the voters on the public question approve the creation of a Foreclosure Prevention Loan Fund, the commission shall establish the program and administer the program with funds collected under the Guaranteed Home Equity Program, subject to specified conditions. Amends the Residential Mortgage License Act of 1987. Contains provisions concerning the issuance of written interpretations of the Act by the Department of Financial and Professional Regulation. Provides that the Attorney General may enforce violations of specified provisions. Specifies the criteria for a private right of action under specified provisions. Provides that a licensee must follow specified rules concerning the verification of a borrower's ability to repay a residential mortgage loan. Provides that a mortgage broker shall be considered to have created an agency relationship with the borrower in all cases and shall comply with specified duties. Contains provisions concerning prepayment penalties by a licensee. Provides that a licensee must follow specified rules concerning notices of change in loan terms. Contains provisions concerning a licensee's duties with respect to (1) comparable monthly payment quotes, (2) the requirement to provide a borrower with a copy of all appraisals, and (3) the disclosure of refinancing options. Contains a prohibition on (1) financing certain insurance premiums, (2) equity stripping and loan flipping, and (3) encouraging default. Provides for the disclosure of refinancing options. Amends the Residential Property Disclosure Act. Provides that a predatory lending database program shall be established within Cook County and shall be administered in accordance with the Article. Provides that the inception date of the program shall be July 1, 2008. Contains provisions concerning the predatory lending database program. Adds provisions concerning the information to be contained in the predatory lending database program. Provides the standards for loan counseling. Provides that borrowers applying for reverse mortgage financing of residential real estate including under programs regulated by the Federal Housing Authority (FHA) that require HUD-certified counseling are exempt from the program and may submit a HUD counseling certificate to comply with the program. Changes the definitions of "distressed property purchaser" and "distressed property conveyance" in the Mortgage Rescue Fraud Act. Amends the Interest Act to provide that the lender, in the case of any nonexempt residential mortgage loan, as defined in specified provisions, shall have the right to include a prepayment penalty that extends no longer than the fixed rate period of a variable rate mortgage provided that, if a prepayment is made during the fixed rate period and not in connection with the sale or destruction of the dwelling securing the loan, the lender shall receive an amount that is no more than specified amounts. Makes other changes. Contains a severability clause.Land Conveyance Appraisal Note, House Amendment No. 1 (Dept. of Transportation) No land conveyances are included in SB 1167 (H-AM 1), therefore, there are not appraisals to be filed. Judicial Note, House Amendment No. 1 (Admin Office of the Illinois Courts) This legislation would neither increase nor decrease the number of judges needed in the State. State Debt Impact Note, House Amendment No. 1 (Government Forecasting & Accountability) SB 1167 (H-AM 1) would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness. Housing Affordability Impact Note, House Amendment No. 1 (Housing Development Authority) This legislation extends and expands several extant Acts designed to create a pool of monies to be used for consumer protection acts. This guarantee fund shall be raised by means if an annual levy on all residential property within the territory of the program having at least one, but not more than six dwelling units and classified as residential. The changes to these Acts are designed for the purpose of protecting first time homebuyers, and of providing low interest loans for foreclosure protection should homebuyers fall victim to unscrupulous mortgage brokers and/or lenders. This legislation also provides for the use of this pool of funds, in areas that approve this legislation, for low interest rehabilitation loans once a base amount in the fund is attained. This legislation also provides that a predatory lending database program for Cook County be established. Creation of these programs is conditioned upon local voter approval. In areas where voters approve the creation of these programs, the cost of owning a single family home would increase however there is insufficient information to calculate an exact cost, due to the fact that the levy amounts and individual home owner's property assessments will vary.Pension Note, House Amendment No. 1 (Government Forecasting & Accountability) SB 1167 (H-AM 1) will have no fiscal impact on any pension fund or retirement system in the State of Illinois. Fiscal Note (Financial & Professional Regulation) SB 1167 would expand the scope of the Predatory Lending Database Program to include all of Cook County. This would result in an approximate annual negative fiscal impact of $1,434,000 on the Illinois Department of Financial and Professional Regulation including the increase in an EDP contract of ($600,000) and the hiring of 9 additional employees (primarily examiners & investigators). 2/8/2007SenateFiled with Secretary by Sen. Jacqueline Y. Collins 2/8/2007SenateFirst Reading 2/8/2007SenateReferred to Rules 2/21/2007SenateAssigned to Financial Institutions 3/2/2007SenatePostponed - Financial Institutions 3/8/2007SenatePostponed - Financial Institutions 3/15/2007SenateDo Pass Financial Institutions; 008-001-000 3/15/2007SenatePlaced on Calendar Order of 2nd Reading March 20, 2007 3/22/2007SenateSecond Reading 3/22/2007SenatePlaced on Calendar Order of 3rd Reading March 27, 2007 3/30/2007SenateRule 2-10 Third Reading Deadline Established As May 31, 2007 4/26/2007SenateSenate Floor Amendment No. 1 Filed with Secretary by Sen. Jacqueline Y. Collins 4/26/2007SenateSenate Floor Amendment No. 1 Referred to Rules 5/2/2007SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. Jacqueline Y. Collins 5/2/2007SenateSenate Floor Amendment No. 2 Referred to Rules 5/2/2007SenateSenate Floor Amendment No. 1 Rules Refers to Financial Institutions 5/2/2007SenateSenate Floor Amendment No. 2 Rules Refers to Financial Institutions 5/3/2007SenateSenate Floor Amendment No. 1 Recommend Do Adopt Financial Institutions; 007-000-000 5/3/2007SenateSenate Floor Amendment No. 2 Recommend Do Adopt Financial Institutions; 007-000-000 5/3/2007SenateAdded as Chief Co-Sponsor Sen. Dan Rutherford 5/9/2007SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. Jacqueline Y. Collins 5/9/2007SenateSenate Floor Amendment No. 3 Referred to Rules 5/9/2007SenateAdded as Chief Co-Sponsor Sen. James T. Meeks 5/9/2007SenateRecalled to Second Reading 5/9/2007SenateSenate Floor Amendment No. 1 Adopted; Collins 5/9/2007SenateSenate Floor Amendment No. 2 Adopted; Collins 5/9/2007SenatePlaced on Calendar Order of 3rd Reading 5/9/2007SenateThird Reading - Passed; 058-000-000 5/9/2007SenateSenate Floor Amendment No. 3 Tabled Pursuant to Rule 5-4(a) 5/9/2007HouseArrived in House 5/9/2007HousePlaced on Calendar Order of First Reading 5/9/2007HouseChief House Sponsor Rep. Karen A. Yarbrough 5/10/2007HouseFirst Reading 5/10/2007HouseReferred to Rules Committee 5/14/2007HouseAssigned to Executive Committee 5/18/2007HouseCommittee Deadline Extended-Rule 9(b) May 25, 2007 5/22/2007HouseAdded Alternate Chief Co-Sponsor Rep. LaShawn K. Ford 5/25/2007HouseFinal Action Deadline Extended-9(b) May 31, 2007 5/31/2007HouseRule 19(a) / Re-referred to Rules Committee 7/12/2007HouseFinal Action Deadline Extended-9(b) July 31, 2007 7/12/2007HouseAssigned to Executive Committee 7/16/2007HouseAdded Alternate Chief Co-Sponsor Rep. Lou Lang 7/19/2007HouseHouse Amendment No. 1 Filed with Clerk by Executive Committee 7/19/2007HouseHouse Amendment No. 1 Adopted in Executive Committee; by Voice Vote 7/19/2007HouseDo Pass as Amended / Short Debate Executive Committee; 010-000-000 7/19/2007HousePlaced on Calendar 2nd Reading - Short Debate 7/19/2007HouseSecond Reading - Short Debate 7/19/2007HousePlaced on Calendar Order of 3rd Reading - Short Debate 7/19/2007HouseAdded Alternate Chief Co-Sponsor Rep. Monique D. Davis 7/19/2007HouseAdded Alternate Chief Co-Sponsor Rep. Annazette Collins 7/19/2007HouseHouse Amendment No. 1 Land Conveyance Appraisal Note Filed as Amended 7/20/2007HouseHouse Amendment No. 1 Judicial Note Filed as Amended 7/23/2007HouseHouse Amendment No. 1 State Debt Impact Note Filed as Amended 7/23/2007HouseHouse Amendment No. 1 Housing Affordability Impact Note Filed as Amended 7/24/2007HouseHouse Amendment No. 1 Pension Note Filed as Amended 7/25/2007SenateSponsor Removed Sen. Dan Rutherford 7/25/2007HouseAdded Alternate Co-Sponsor Rep. Daniel J. Burke 7/25/2007HouseAdded Alternate Co-Sponsor Rep. Joseph M. Lyons 7/26/2007HouseThird Reading - Short Debate - Passed 070-043-001 7/26/2007SenateSecretary's Desk - Concurrence House Amendment(s) 01 7/26/2007SenatePlaced on Calendar Order of Concurrence House Amendment(s) 01 - July 27, 2007 7/26/2007HouseAdded Alternate Co-Sponsor Rep. Richard T. Bradley 7/26/2007SenateHouse Amendment No. 1 Motion to Concur Filed with Secretary Sen. Jacqueline Y. Collins 7/26/2007SenateHouse Amendment No. 1 Motion to Concur Referred to Rules 7/26/2007SenateFiscal Note Filed from the Illinois Department of Financial and Professional Regulation. 7/31/2007SenateHouse Amendment No. 1 Motion to Concur Rules Referred to Financial Institutions 8/1/2007SenateHouse Amendment No. 1 Motion To Concur Recommended Do Adopt Financial Institutions; 008-001-000 8/1/2007SenateAdded as Chief Co-Sponsor Sen. Kwame Raoul 8/1/2007SenateAdded as Chief Co-Sponsor Sen. Mattie Hunter 8/7/2007SenateHouse Amendment No. 1 Senate Concurs 033-019-003 8/7/2007SenatePassed Both Houses 9/5/2007SenateSent to the Governor 11/2/2007SenateGovernor Approved 11/2/2007SenateEffective Date June 1, 2008 11/2/2007SenatePublic Act . . . . . . . . . 95-0691