[ Search ] [ Legislation ]
[ Home ] [ Back ] [ Bottom ]
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 will28 be notified not less than annually of an address and29 telephone number that may be used to contact the30 mortgagee to determine whether or not the insurance may31 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.
[ Top ]