Bill Text: IL SB3522 | 2011-2012 | 97th General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Amends the Residential Mortgage License Act of 1987, the High Risk Home Loan Act, and the Interest Act. Limits the imposition of prepayment penalties in connection with high risk home loans. Limits the size of balloon payments in connection with high risk home loans. Limits the imposition of late fees. Effective January 1, 2013.

Spectrum: Partisan Bill (Democrat 24-0)

Status: (Failed) 2013-01-08 - Session Sine Die [SB3522 Detail]

Download: Illinois-2011-SB3522-Amended.html

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Sen. Jacqueline Y. Collins

Filed: 3/14/2012

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AMENDMENT TO SENATE BILL 3522
AMENDMENT NO. ______. Amend Senate Bill 3522 on page 3 by
replacing lines 21 through 24 with the following:
"junior mortgage, the average prime offer rate, as defined in
Section 129C(b)(2)(B) of the federal Truth in Lending Act, for
a comparable transaction as of the date on which the interest
rate for the transaction is set, yield on U.S. Treasury
securities having comparable periods of maturity to the loan
maturity as of the fifteenth day of the month immediately
preceding the month in which the application for the loan is
received by the lender"; and
on page 4 by replacing lines 3 through 24 with the following:
"and fees payable in connection with the transaction, other
than bona fide third-party charges not retained by the mortgage
originator, creditor, or an affiliate of the mortgage

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originator or creditor, by the consumer at or before closing
will exceed (1) the greater of 5% of the total loan amount in
the case of a transaction for $20,000 or more or (2) the lesser
of 8% of the total loan amount or $1,000 (or such other dollar
amount as prescribed by federal regulation pursuant to the
federal Dodd-Frank Act) in the case of a transaction for less
than $20,000, except that, with respect to all transactions,
bona fide loan discount points may be excluded as provided for
in Section 35 of this Act. or $800. The $800 figure shall be
adjusted annually on January 1 by the annual percentage change
in the Consumer Price Index for All Urban Consumers for all
items published by the United States Department of Labor. "High
risk home loan" does not"; and
on page 6 by replacing lines 4 and 5 with the following:
"closing or financed directly or indirectly into the loan for
any credit life, credit"; and
on page 10 by replacing lines 14 through 21 with the following:
"finances, directly or indirectly, any points and fees. No
lender shall transfer, deal in, offer, or make a high risk home
loan that finances any prepayment fee or penalty payable by the
consumer in a refinancing transaction if the creditor or an
affiliate of the creditor is the noteholder of the note being

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refinanced in excess of 6% of the total loan amount.".