91st General Assembly
Summary of HB3007
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House Sponsors:

Short description: 
PREDATORY HOME LOAN ACT                                                    

Synopsis of Bill as introduced:
        Creates the Predatory Home Loan Practices Act. Prohibits  various      
   practices  and  charges  in connection with home loans made to persons      
   with respect to their primary residence.  Prohibits the imposition  of      
   prepayment  penalties,  flipping  of  loans,  and  lender financing of      
   credit insurance.  Imposes limitations on high-cost loans.   Prohibits      
   loans  unless the lender reasonably believes that the borrower is able      
   to make scheduled payments to repay the loan without  respect  to  the      
   borrower's  equity  in  the property.  Authorizes a borrower to obtain      
   damages for violations of the Act.                                          
        HOUSE AMENDMENT NO. 1.                                                 
        Replaces the title and everything after enacting clause. Creates       
   the Predatory Home Loan Practices Act. Includes provisions of the bill      
   as introduced. Adds restrictions on home-improvement contracts. Pro-        
   vides that remedies under the Act are not exclusive.                        
          HOUSING AFFORDABILITY NOTE, H-AM 1 (Housing Development Auth.)       
          It is anticipated that this legislation will decrease the cost       
          of purchasing or owning a home for those that access high cost       
          home loans. However, it is not possible to determine the number      
          of high cost loans that will be avoided because of this Act.         
          Therefore, there is insufficient information available to            
          determine the fiscal effect to the cost of purchasing or owning      
          a single family residence.                                           
          FISCAL NOTE, H-AM 1 (Dept. of Financial Institutions)                
          There would be a total fiscal impact of $528,207, which would        
          include 9 additional employees.                                      
          STATE DEBT NOTE, H-AM 1 (Ill. Economic and Fiscal Commission)        
          HB 3007, as amended, would not change the amount of authori-         
          zation for any type of State-issued or State-supported bond,         
          and therefore, would not affect the level of State indebted-         
          HOME RULE NOTE, H-AM 1                                               
          (Department of Commerce and Community Affairs)                       
          This legislation does not relate to the activities of home rule      
          units of government, and therefore does not preempt home rule        
          FISCAL NOTE, H-AM 1 (Department of Corrections)                      
          There would be no corrections population or fiscal impact.           
          CORRECTIONAL NOTE, H-AM 1 (Department of Corrections)                
          Same as DOC fiscal note.                                             
        HOUSE AMENDMENT NO. 2.                                                 
          Deletes reference to:                                                
          New Act                                                              
          Adds reference to:                                                   
          205 ILCS 635/1-4                from Ch. 17, par. 2321-4             
          205 ILCS 635/1-5                from Ch. 17, par. 2321-5             
          205 ILCS 635/4-8                from Ch. 17, par. 2324-8             
          205 ILCS 635/4-8.1 new                                               
          205 ILCS 635/4-8.2 new                                               
          205 ILCS 635/4-8.3 new                                               
          205 ILCS 635/4-8.4 new                                               
          205 ILCS 635/4-8.5 new                                               
          205 ILCS 635/4-8.6 new                                               
          205 ILCS 635/4-8.7 new                                               
          205 ILCS 635/4-8.8 new                                               
          205 ILCS 635/4-8.9 new                                               
          205 ILCS 635/4-8.10 new                                              
          205 ILCS 635/4-8.11 new                                              
        Replaces the title and  everything  after  the  enacting  clause.      
   Amends  the  Residential  Mortgage License Act of 1987.  Increases the      
   size of the Residential Mortgage Board from 5 to 7 members.   Provides      
   that  one  of  the additional members shall be a representative of the      
   National  Training  and  Information  Center  and  one  shall   be   a      
   representative  of the Woodstock Institute. Requires the board to meet      
   at least 4 times each calendar year. Provides that the Commissioner of      
   Banks and Real Estate or the board shall  investigate  licensees  when      
   there are facts that would constitute grounds for disciplinary action.      
   Provides  for  hearings  and  procedures  for the hearings.  Effective      
          FISCAL NOTE, H-AM 2 (Office of Banks and Real Estate)                
          This legislation would necessitate the hiring of 7 additional        
          staff to accommodate the expansion of examinations and prose-        
          cutions of licensed entities, as well as enforcement powers          
          provided within the legislation. The estimated total fiscal          
          impact is approximately $428,000 annually.                           
          HOUSING AFFORDABILITY NOTE, H-AM 2 (Housing Development Auth.)       
          There is no fiscal impact on a single-family residence.              
          JUDICIAL NOTE, H-AM 2 (Administrative Office of Ill. Courts)         
          There may be an increase in judicial workloads. However, it          
          is not possible to determine what impact the bill will have          
          on the number of judges needed in the State.                         
Last action on Bill: SESSION SINE DIE

   Last action date: 01-01-09

           Location: House

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   0


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