Bill Text: IL SB2777 | 2009-2010 | 96th General Assembly | Introduced

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Bill Title: Amends the High Risk Home Loan Act. Makes a technical change in a Section concerning the prohibition on certain home loans.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-06-27 - Pursuant to Senate Rule 3-9(b) / Referred to Assignments [SB2777 Detail]

Download: Illinois-2009-SB2777-Introduced.html

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96TH GENERAL ASSEMBLY State of Illinois 2009 and 2010 SB2777 Introduced 1/28/2010, by Sen. John J. Cullerton SYNOPSIS AS INTRODUCED:
815 ILCS 137/15
Amends the High Risk Home Loan Act. Makes a technical change in a Section concerning the prohibition on certain home loans.
LRB096 17303 DRJ 32653 b
A BILL FOR
SB2777 LRB096 17303 DRJ 32653 b
AN ACT concerning business.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The High Risk Home Loan Act is amended by
changing Section 15 as follows:
(815 ILCS 137/15)
Sec. 15. Ability to repay. A creditor or broker shall not
transfer, deal in, offer, or make a high risk home loan if the
the creditor or broker does not believe at the time the loan is
consummated that the borrower will be able to make the
scheduled payments to repay the obligation based upon a
consideration of his or her current and expected income,
current obligations, employment status, and other financial
resources (other than the borrower's equity in the dwelling
that secures repayment of the loan). A borrower shall be
presumed to be able to repay the loan if, at the time the loan
is consummated, or at the time of the first rate adjustment, in
the case of a lower introductory interest rate, the borrower's
scheduled monthly payments on the loan (including principal,
interest, taxes, insurance, and assessments), combined with
the scheduled payments for all other disclosed debts, do not
exceed 50% of the borrower's monthly gross income.
(Source: P.A. 93-561, eff. 1-1-04.)