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91_HB0190
LRB9101004SMpr
1 AN ACT to amend the Mortgage Insurance Limitation and
2 Notification Act by changing Section 15, repealing Section
3 20, and adding Section 21.
4 Be it enacted by the People of the State of Illinois,
5 represented in the General Assembly:
6 Section 5. The Mortgage Insurance Limitation and
7 Notification Act is amended by changing Section 15 and adding
8 Section 21 as follows:
9 (765 ILCS 930/15)
10 Sec. 15. Transaction disclosure. After July 1, 1998, if
11 a person enters into a transaction to obtain a mortgage for
12 his or her principal residence and private mortgage insurance
13 may be required in connection with that transaction, the
14 mortgagee shall disclose in writing all of the following:
15 (1) Whether private mortgage insurance will be
16 required to be obtained or maintained with respect to the
17 mortgage.
18 (2) The period during which the insurance shall be
19 required to be in effect.
20 (3) The conditions under which the mortgagor may
21 cancel the insurance.
22 (4) That when the mortgagor's equity interest in
23 the residence which is the subject of the mortgage
24 reaches 20%, the mortgagee shall cancel the private
25 mortgage insurance and notify the mortgagor of the
26 cancellation and that the mortgagor no longer has to pay
27 private mortgage insurance premiums. the mortgagor will
28 be notified not less than annually of an address and
29 telephone number that may be used to contact the
30 mortgagee to determine whether or not the insurance may
31 be terminated and, if the insurance may be terminated,
-2- LRB9101004SMpr
1 the conditions and procedures for termination.
2 (Source: P.A. 90-455, eff. 7-1-98.)
3 (765 ILCS 930/21 new)
4 Sec. 21. Private mortgage insurance cancellation.
5 (a) A mortgagee shall cancel the private mortgage
6 insurance carried by a mortgagor when that mortgagor's equity
7 interest in the residence which is the subject of the
8 mortgage reaches 20%. Upon cancellation, the mortgagee shall
9 notify the mortgagor that the private mortgage insurance has
10 been cancelled and that the mortgagor no longer has to make
11 private mortgage insurance premium payments. The mortgagee
12 shall notify the mortgagor, at the same time, of the new
13 monthly payment amount.
14 (b) If a mortgagee does not comply with the provisions
15 of subsection (a), the mortgagor shall be refunded any
16 premiums paid to the mortgagee after the mortgagor's equity
17 interest in the residence which is the subject of the
18 mortgage reaches 20%.
19 (765 ILCS 930/20 rep.)
20 Section 10. The Mortgage Insurance Limitation and
21 Notification Act is amended by repealing Section 20.
22 Section 99. Effective date. This Act takes effect upon
23 becoming law.