Full Text of HB6411 96th General Assembly
HB6411ham001 96TH GENERAL ASSEMBLY
|
Rep. Jack McGuire
Filed: 3/23/2010
|
|
09600HB6411ham001 |
|
LRB096 21039 RPM 39510 a |
|
| 1 |
| AMENDMENT TO HOUSE BILL 6411
| 2 |
| AMENDMENT NO. ______. Amend House Bill 6411 by replacing | 3 |
| everything after the enacting clause with the following:
| 4 |
| "Section 5. The Mortgage Escrow Account Act is amended by | 5 |
| adding Section 20 as follows: | 6 |
| (765 ILCS 910/20 new) | 7 |
| Sec. 20. Notice of transfer of mortgage escrow account. | 8 |
| (a) A mortgage lender who acquires an escrow account | 9 |
| through assignment, sale, or transfer shall notify the borrower | 10 |
| of any such assignment, sale, or transfer. | 11 |
| (b) The notice required under this Section shall comport | 12 |
| with the following provisions concerning timing: | 13 |
| (1) The mortgage lender who acquires the escrow account | 14 |
| shall notify the borrower not less than 15 days after the | 15 |
| effective date of the assignment, sale, or transfer of the | 16 |
| escrow account. |
|
|
|
09600HB6411ham001 |
- 2 - |
LRB096 21039 RPM 39510 a |
|
| 1 |
| (2) The notice required under subsection (a) of this | 2 |
| Section shall be made to the borrower not more than 30 days | 3 |
| after the effective date of the assignment, sale, or | 4 |
| transfer of the mortgage account in any case in which the | 5 |
| assignment, sale, or transfer of the mortgage account was | 6 |
| preceded by: | 7 |
| (i) termination of the contract for servicing the | 8 |
| loan, including maintaining the escrow account, for | 9 |
| cause; | 10 |
| (ii) commencement of bankruptcy proceedings of the | 11 |
| mortgage lender; or | 12 |
| (iii) commencement of proceedings by the Federal | 13 |
| Deposit Insurance Corporation for receivership of the | 14 |
| mortgage lender or any entity that owns or controls the | 15 |
| mortgage lender. | 16 |
| (c) The notice required under this Section shall include | 17 |
| the following information: | 18 |
| (1) the effective date of assignment, sale, or transfer | 19 |
| of the escrow account; | 20 |
| (2) the name, address, website, fax number, and | 21 |
| toll-free or collect-call telephone number of the mortgage | 22 |
| lender who is acquiring the escrow account; | 23 |
| (3) the name of and a toll-free or collect-call number | 24 |
| for an individual employed by, or a department within, the | 25 |
| transferring mortgage lender that can be contacted by the | 26 |
| borrower to answer inquiries relating to the assignment, |
|
|
|
09600HB6411ham001 |
- 3 - |
LRB096 21039 RPM 39510 a |
|
| 1 |
| sale, or transfer of the mortgage account; | 2 |
| (4) the name of and toll-free or collect-call telephone | 3 |
| number for an individual employed by, or a department | 4 |
| within, the mortgage lender that is acquiring the escrow | 5 |
| account that can be contacted by the borrower to answer | 6 |
| inquiries related to the assignment, sale, or transfer of | 7 |
| the mortgage account; | 8 |
| (5) the date on which the mortgage lender who holds the | 9 |
| escrow account before the assignment, sale, or transfer | 10 |
| will cease to accept payments relating to the escrow | 11 |
| account and the date on which the mortgage lender who is | 12 |
| acquiring the escrow account will begin to accept such | 13 |
| payments; and | 14 |
| (6) the number of the toll-free consumer hotline | 15 |
| maintained by the Division of Banking of the Department of | 16 |
| Financial and Professional Regulation. | 17 |
| (d) The notice required under this Section shall be sent by | 18 |
| first class mail in an envelope that is marked with the | 19 |
| following statement, in 12-point, bold-faced font: "ENCLOSED | 20 |
| IS AN IMPORTANT NOTICE REGARDING YOUR MORTGAGE ESCROW ACCOUNT | 21 |
| WITH (insert name of the transferring mortgage lender).". | 22 |
| (e) The provisions of this Section shall not apply to any | 23 |
| assignment, sale, or transfer of a mortgage account if the | 24 |
| mortgage lender who makes the loan provides to the borrower, at | 25 |
| settlement, written notice of the assignment, sale, or | 26 |
| transfer. |
|
|
|
09600HB6411ham001 |
- 4 - |
LRB096 21039 RPM 39510 a |
|
| 1 |
| (f) A mortgage lender who violates this Section is guilty | 2 |
| of a business offense and, upon conviction, shall be fined not | 3 |
| more than $1,000 for each offense. ".
|
|