Illinois HB 4050
I am trying to gauge a response on what actions other lenders will take if this bill is not vetoed in early October. Has anyone addressed this situation yet?
Billy, can you elaborate a little for us. What is this Bill in regards too? and do you have a link or other reference you could provide? Thanks, jaw
It is being put into place to restrict predatory lending in Cook County and there are several steps a mortgage company must complete prior to a loan funding. It is very interesting and quite disturbing to read. Below is a link to the text of the bill. http://www.ilga.gov/legislation/fulltext.asp?DocName=&SessionId=50&GA=94&DocTypeId=HB&DocNum=4050&GAID=8&LegID=20873&SpecSess=&Session=
This looks like the meat of the legislation. So any lender or broker that takes an application in Cook County, must submit all of the application data including credit information and much more to a general database for analysis by this group? How would they enforce this? I see a lot less lenders taking applications from the pilot area (Cook County, IL). Excerpt from page 12... "Within 10 days after taking a mortgage application, the broker or originator for any mortgage on residential property within the pilot program area must submit to the predatory lending database all of the information required under Section 72 and any other information required by the Department by rule. Within 7 days after receipt of the information, the Department shall compare that information to credit counseling standards developed by the Department by rule and issue to the borrower and the broker or originator a determination of whether credit counseling is recommended for the borrower. The borrower may not waive credit counseling. If at any time after submitting the information required under Section 72 the broker or originator (i) changes the terms of the loan or (ii) issues a new commitment to the borrower, then, within 5 days thereafter, the broker or originator shall re-submit all of the information required under Section 72 and, within 4 days after receipt of the information re-submitted by the broker or originator, the Department shall compare that information to credit counseling standards developed by the Department by rule and shall issue to the borrower and the broker or originator a new determination of whether credit counseling is recommended for the borrower based on the information re-submitted by the broker or originator."
It is a very ugly law. At this point the MBA is actively trying to get this bill vetoed, but only time will tell.
Hi! Now this is third party information and we all know how that works, but didn't the Illinois Governor play some part in the initiation of this bill? They have taken the HUD proposed packaging (thank goodness that didn't come to fruition) to a whole new level and you're right...it's quite disturbing. If this passes, I guarantee all the big name investors will pull out of Cook County with their correspondents quickly following. Hopefully they are cognizant of this reality and will re-think the situation. Keep your fingers crossed! Tracy
The governor did sign this bill and I am under the impression a lot of lenders will pull out of the area.