SB0252sam001 96TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 3/10/2009

09600SB0252sam001 LRB096 03548 KTG 23334 a

AMENDMENT TO SENATE BILL 252

AMENDMENT NO. ______. Amend Senate Bill 252 by replacing everything after the enacting clause with the following:

"Section 5. The High Risk Home Loan Act is amended by changing Section 15 as follows:

(815 ILCS 137/15)

Sec. 15. Ability to repay. A creditor or broker shall not transfer, deal in, offer, or make a high risk home loan if the the creditor or broker does not believe at the time the loan is consummated that the borrower will be able to make the scheduled payments to repay the obligation based upon a consideration of his or her current and expected income, current obligations, employment status, and other financial resources (other than the borrower's equity in the dwelling that secures repayment of the loan). A borrower shall be presumed to be able to repay the loan if, at the time the loan is consummated, or at the time of the first rate adjustment, in the case of a lower introductory interest rate, the borrower's scheduled monthly payments on the loan (including principal, interest, taxes, insurance, and assessments), combined with the scheduled payments for all other disclosed debts, do not exceed 50% of the borrower's monthly gross income.

(Source: P.A. 93-561, eff. 1-1-04.)".