Full Text of SB3287 96th General Assembly
SB3287eng 96TH GENERAL ASSEMBLY
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| AN ACT concerning business.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The High Risk Home Loan Act is amended by | 5 |
| changing Section 10 as follows:
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| (815 ILCS 137/10)
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| Sec. 10. Definitions. As used in this Act:
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| "Approved credit counselor" means a credit counselor | 9 |
| approved by the
Director of Financial Institutions.
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| "Borrower" means a natural person who seeks or obtains a | 11 |
| high risk
home loan.
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| "Commissioner" means the Commissioner of the Office of | 13 |
| Banks and Real
Estate.
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| "Department" means the Department of Financial | 15 |
| Institutions.
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| "Director" means the Director of Financial Institutions.
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| "Good faith" means honesty in fact in the conduct or | 18 |
| transaction concerned.
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| "High risk home loan"
means a home equity loan in which (i) | 20 |
| at the time of origination, the annual
percentage rate
exceeds | 21 |
| by more than 6 percentage points in the case of a first lien | 22 |
| mortgage,
or
by more than 8 percentage points in the case of a | 23 |
| junior mortgage, the yield on
U.S. Treasury securities having |
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| comparable periods of maturity to the loan
maturity as of the | 2 |
| fifteenth day of the month immediately preceding the month
in
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| which the application for the loan is received by the lender or | 4 |
| (ii) the total
points
and fees payable by the consumer at or | 5 |
| before closing will exceed the greater
of
5% of the total loan | 6 |
| amount or $800. The $800 figure shall be adjusted annually
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| January 1 by the annual percentage change in the Consumer Price | 8 |
| Index for
All Urban Consumers for all items published by the | 9 |
| United States Department of
Labor.
"High risk home loan"
does
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| not include a loan for reverse mortgage financing of | 11 |
| residential real estate, including under programs regulated by | 12 |
| the Federal Housing Administration (FHA), or a loan that is | 13 |
| made primarily for a business purpose unrelated to
the
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| residential real property securing the loan or to an open-end | 15 |
| credit plan
subject to
12 CFR 226 (2000, no subsequent | 16 |
| amendments or editions are included).
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| "Home equity loan" means any loan secured by the borrower's | 18 |
| primary
residence where the proceeds are not used as purchase | 19 |
| money for the
residence.
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| "Lender" means a natural or artificial person who | 21 |
| transfers, deals in,
offers, or makes a high risk home loan. | 22 |
| "Lender" includes, but is not limited
to,
creditors and
brokers | 23 |
| who transfer, deal in, offer, or make high risk home loans. | 24 |
| "Lender"
does not include purchasers, assignees, or subsequent | 25 |
| holders of high risk home
loans.
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| "Office" means the Office of Banks and Real Estate.
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| "Points and fees" means all items required to be disclosed | 2 |
| as points and
fees under 12 CFR 226.32 (2000, no subsequent | 3 |
| amendments or editions
included); the premium of any single | 4 |
| premium credit life, credit disability,
credit
unemployment, | 5 |
| or any other life or health insurance that is financed directly
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| or
indirectly into the loan; and compensation paid directly or | 7 |
| indirectly to a
mortgage
broker, including a broker that | 8 |
| originates a loan in its own name in a
table-funded
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| transaction, not otherwise included in 12 CFR 226.4.
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| "Reasonable" means fair, proper, just, or prudent under the | 11 |
| circumstances.
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| "Servicer" means any entity chartered under the Illinois | 13 |
| Banking Act, the
Savings Bank Act, the Illinois Credit Union | 14 |
| Act, or the Illinois Savings and
Loan Act of 1985 and any | 15 |
| person or entity licensed under the Residential
Mortgage | 16 |
| License Act of 1987, the Consumer Installment Loan Act, or the | 17 |
| Sales
Finance Agency Act who
is responsible for the collection | 18 |
| or remittance for, or has the right or
obligation to collect or | 19 |
| remit for, any lender, note owner, or note holder or
for a | 20 |
| licensee's own account, of payments, interest, principal, and | 21 |
| trust items
(such as hazard
insurance and taxes on a | 22 |
| residential mortgage loan) in accordance with the
terms of the | 23 |
| residential mortgage loan, including loan payment follow-up,
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| delinquency loan follow-up, loan analysis, and any | 25 |
| notifications to
the borrower that are necessary to enable the | 26 |
| borrower to keep the loan current
and in good
standing.
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| "Total loan amount" has the same meaning as that term is | 2 |
| given in 12
CFR 226.32 and shall be calculated in accordance | 3 |
| with the Federal Reserve
Board's Official Staff Commentary to | 4 |
| that regulation.
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| (Source: P.A. 93-561, eff. 1-1-04.)
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