Bill Text: IL SB3551 | 2023-2024 | 103rd General Assembly | Introduced

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. Provides that, prior to taking any legally binding action on a shared appreciation agreement, the borrower or borrowers shall be provided specified counseling regardless of the county in which the property is located. Provides that the borrower may not waive counseling. Provides that the Secretary of Financial and Professional Regulation may adopt rules relating to shared appreciation agreements. Defines "shared appreciation agreement", and includes shared appreciation agreements within the definition of "mortgage loan", "residential mortgage loan", or "home mortgage loan". Defines "shared appreciation agreement" as a writing evidencing a transaction or any option, future, or any other derivative between a person and a consumer is which the consumer receives money or any other item of value in exchange for an interest or future interest in a dwelling or residential real estate or a future obligation to repay a sum on the occurrence of an event, such as (i) the transfer of ownership, (ii) a repayment maturity date, (iii) the death of the consumer, or (iv) any other event contemplated by the writing. Amends the Residential Real Property Disclosure Act. Defines "counseling". Effective immediately.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2024-08-09 - Public Act . . . . . . . . . 103-1015 [SB3551 Detail]

Download: Illinois-2023-SB3551-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB3551 Introduced 2/9/2024, by Sen. Sara Feigenholtz SYNOPSIS AS INTRODUCED:
205 ILCS 635/1-4
205 ILCS 635/5-12.5 new
765 ILCS 77/72
765 ILCS 77/73
Amends the Residential Mortgage License Act of 1987. Provides that, prior to taking any legally binding action on a shared appreciation agreement, the borrower or borrowers shall be provided specified counseling regardless of the county in which the property is located. Provides that the borrower may not waive counseling. Provides that the Secretary of Financial and Professional Regulation may adopt rules relating to shared appreciation agreements. Defines "shared appreciation agreement", and includes shared appreciation agreements within the definition of "Mortgage loan", "residential mortgage loan", or "home mortgage loan". Amends the Residential Real Property Disclosure Act. Provides that, for each loan for which the originator takes an application, the broker or originator must submit for inclusion in the predatory lending database whether the borrower has entered into a shared appreciation agreement. Provides that a borrower or borrowers subject to specified provisions shall be recommended for counseling if the Department of Financial and Professional Regulation finds the borrower or borrowers are all first-time homebuyers or refinancing a primary residence and the loan is a mortgage that includes a shared appreciation agreement. Effective immediately.
LRB103 37488 RTM 67611 b
A BILL FOR
SB3551 LRB103 37488 RTM 67611 b
AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Residential Mortgage License Act of 1987 is
amended by changing Section 1-4 and by adding Section 5-12.5
as follows:
(205 ILCS 635/1-4)
Sec. 1-4. Definitions. The following words and phrases
have the meanings given to them in this Section:
(a) "Residential real property" or "residential real
estate" shall mean any real property located in Illinois, upon
which is constructed or intended to be constructed a dwelling.
Those terms include a manufactured home as defined in
subdivision (53) of Section 9-102 of the Uniform Commercial
Code which is real property as defined in Section 5-35 of the
Conveyance and Encumbrance of Manufactured Homes as Real
Property and Severance Act.
(b) "Making a residential mortgage loan" or "funding a
residential mortgage loan" shall mean for compensation or
gain, either directly or indirectly, advancing funds or making
a commitment to advance funds to a loan applicant for a
residential mortgage loan.
(c) "Soliciting, processing, placing, or negotiating a

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residential mortgage loan" shall mean for compensation or
gain, either directly or indirectly, accepting or offering to
accept an application for a residential mortgage loan,
assisting or offering to assist in the processing of an
application for a residential mortgage loan on behalf of a
borrower, or negotiating or offering to negotiate the terms or
conditions of a residential mortgage loan with a lender on
behalf of a borrower including, but not limited to, the
submission of credit packages for the approval of lenders, the
preparation of residential mortgage loan closing documents,
including a closing in the name of a broker.
(d) "Exempt person or entity" shall mean the following:
(1) (i) Any banking organization or foreign banking
corporation licensed by the Illinois Commissioner of Banks
and Real Estate or the United States Comptroller of the
Currency to transact business in this State; (ii) any
national bank, federally chartered savings and loan
association, federal savings bank, federal credit union;
(iii) (blank); (iv) any bank, savings and loan
association, savings bank, or credit union organized under
the laws of this or any other state; (v) any Illinois
Consumer Installment Loan Act licensee; (vi) any insurance
company authorized to transact business in this State;
(vii) any entity engaged solely in commercial mortgage
lending; (viii) any service corporation of a savings and
loan association or savings bank organized under the laws

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of this State or the service corporation of a federally
chartered savings and loan association or savings bank
having its principal place of business in this State,
other than a service corporation licensed or entitled to
reciprocity under the Real Estate License Act of 2000; or
(ix) any first tier subsidiary of a bank, the charter of
which is issued under the Illinois Banking Act by the
Illinois Commissioner of Banks and Real Estate, or the
first tier subsidiary of a bank chartered by the United
States Comptroller of the Currency and that has its
principal place of business in this State, provided that
the first tier subsidiary is regularly examined by the
Illinois Commissioner of Banks and Real Estate or the
Comptroller of the Currency, or a consumer compliance
examination is regularly conducted by the Federal Reserve
Board.
(1.5) Any employee of a person or entity mentioned in
item (1) of this subsection, when acting for such person
or entity, or any registered mortgage loan originator when
acting for an entity described in subsection (tt) of this
Section.
(1.8) Any person or entity that does not originate
mortgage loans in the ordinary course of business, but
makes or acquires residential mortgage loans with his or
her own funds for his or her or its own investment without
intent to make, acquire, or resell more than 3 residential

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mortgage loans in any one calendar year.
(2) (Blank).
(2.1) A bona fide nonprofit organization.
(2.2) An employee of a bona fide nonprofit
organization when acting on behalf of that organization.
(3) Any person employed by a licensee to assist in the
performance of the residential mortgage licensee's
activities regulated by this Act who is compensated in any
manner by only one licensee.
(4) (Blank).
(5) Any individual, corporation, partnership, or other
entity that originates, services, or brokers residential
mortgage loans, as these activities are defined in this
Act, and who or which receives no compensation for those
activities, subject to the Commissioner's regulations and
the federal Secure and Fair Enforcement for Mortgage
Licensing Act of 2008 and the rules promulgated under that
Act with regard to the nature and amount of compensation.
(6) (Blank).
(7) Any entity engaged solely in providing loan
processing services through the sponsoring of individuals
acting pursuant to subsection (d) of Section 7-1A of this
Act.
(e) "Licensee" or "residential mortgage licensee" shall
mean a person, partnership, association, corporation, or any
other entity who or which is licensed pursuant to this Act to

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engage in the activities regulated by this Act.
(f) "Mortgage loan", "residential mortgage loan", or "home
mortgage loan" shall mean any loan primarily for personal,
family, or household use that is secured by a mortgage, deed of
trust, or other equivalent consensual security interest on a
dwelling as defined in Section 103(v) of the federal Truth in
Lending Act, or residential real estate upon which is
constructed or intended to be constructed a dwelling.
"Mortgage loan", "residential mortgage loan", or "home
mortgage loan" includes a loan in which funds are advanced
through a shared appreciation agreement.
(g) "Lender" shall mean any person, partnership,
association, corporation, or any other entity who either lends
or invests money in residential mortgage loans.
(h) "Ultimate equitable owner" shall mean a person who,
directly or indirectly, owns or controls an ownership interest
in a corporation, foreign corporation, alien business
organization, trust, or any other form of business
organization regardless of whether the person owns or controls
the ownership interest through one or more persons or one or
more proxies, powers of attorney, nominees, corporations,
associations, partnerships, trusts, joint stock companies, or
other entities or devices, or any combination thereof.
(i) "Residential mortgage financing transaction" shall
mean the negotiation, acquisition, sale, or arrangement for or
the offer to negotiate, acquire, sell, or arrange for, a

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residential mortgage loan or residential mortgage loan
commitment.
(j) "Personal residence address" shall mean a street
address and shall not include a post office box number.
(k) "Residential mortgage loan commitment" shall mean a
contract for residential mortgage loan financing.
(l) "Party to a residential mortgage financing
transaction" shall mean a borrower, lender, or loan broker in
a residential mortgage financing transaction.
(m) "Payments" shall mean payment of all or any of the
following: principal, interest and escrow reserves for taxes,
insurance and other related reserves, and reimbursement for
lender advances.
(n) "Commissioner" shall mean the Commissioner of Banks
and Real Estate, except that, beginning on April 6, 2009 (the
effective date of Public Act 95-1047), all references in this
Act to the Commissioner of Banks and Real Estate are deemed, in
appropriate contexts, to be references to the Secretary of
Financial and Professional Regulation, or his or her designee,
including the Director of the Division of Banking of the
Department of Financial and Professional Regulation.
(n-1) "Director" shall mean the Director of the Division
of Banking of the Department of Financial and Professional
Regulation, except that, beginning on July 31, 2009 (the
effective date of Public Act 96-112), all references in this
Act to the Director are deemed, in appropriate contexts, to be

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the Secretary of Financial and Professional Regulation, or his
or her designee, including the Director of the Division of
Banking of the Department of Financial and Professional
Regulation.
(o) "Loan brokering", "brokering", or "brokerage service"
shall mean the act of helping to obtain from another entity,
for a borrower, a loan secured by residential real estate
situated in Illinois or assisting a borrower in obtaining a
loan secured by residential real estate situated in Illinois
in return for consideration to be paid by either the borrower
or the lender including, but not limited to, contracting for
the delivery of residential mortgage loans to a third party
lender and soliciting, processing, placing, or negotiating
residential mortgage loans.
(p) "Loan broker" or "broker" shall mean a person,
partnership, association, corporation, or limited liability
company, other than those persons, partnerships, associations,
corporations, or limited liability companies exempted from
licensing pursuant to Section 1-4, subsection (d), of this
Act, who performs the activities described in subsections (c),
(o), and (yy) of this Section.
(q) "Servicing" shall mean the collection or remittance
for or the right or obligation to collect or remit for any
lender, noteowner, noteholder, or for a licensee's own
account, of payments, interests, principal, and trust items
such as hazard insurance and taxes on a residential mortgage

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loan in accordance with the terms of the residential mortgage
loan; and includes loan payment follow-up, delinquency loan
follow-up, loan analysis and any notifications to the borrower
that are necessary to enable the borrower to keep the loan
current and in good standing. "Servicing" includes management
of third-party entities acting on behalf of a residential
mortgage licensee for the collection of delinquent payments
and the use by such third-party entities of said licensee's
servicing records or information, including their use in
foreclosure.
(r) "Full service office" shall mean an office, provided
by the licensee and not subleased from the licensee's
employees or independent contractors, and staff in Illinois
reasonably adequate to handle efficiently communications,
questions, and other matters relating to any application for,
or an existing home mortgage secured by residential real
estate situated in Illinois with respect to which the licensee
is brokering, funding originating, purchasing, or servicing.
The management and operation of each full service office must
include observance of good business practices such as proper
signage; adequate, organized, and accurate books and records;
ample phone lines, hours of business, staff training and
supervision, and provision for a mechanism to resolve consumer
inquiries, complaints, and problems. The Commissioner shall
issue regulations with regard to these requirements and shall
include an evaluation of compliance with this Section in his

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or her periodic examination of each licensee. "Full service
office" does not include a remote location.
(s) "Purchasing" shall mean the purchase of conventional
or government-insured mortgage loans secured by residential
real estate situated in Illinois from either the lender or
from the secondary market.
(t) "Borrower" shall mean the person or persons who seek
the services of a loan broker, originator, or lender.
(u) "Originating" shall mean the issuing of commitments
for and funding of residential mortgage loans.
(v) "Loan brokerage agreement" shall mean a written
agreement in which a broker or loan broker agrees to do either
of the following:
(1) obtain a residential mortgage loan for the
borrower or assist the borrower in obtaining a residential
mortgage loan; or
(2) consider making a residential mortgage loan to the
borrower.
(w) "Advertisement" shall mean the attempt by publication,
dissemination, or circulation to induce, directly or
indirectly, any person to enter into a residential mortgage
loan agreement or residential mortgage loan brokerage
agreement relative to a mortgage secured by residential real
estate situated in Illinois.
(x) (Blank).
(y) "Government-insured mortgage loan" shall mean any

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mortgage loan made on the security of residential real estate
insured by the Department of Housing and Urban Development or
Farmers Home Loan Administration, or guaranteed by the
Veterans Administration.
(z) "Annual audit" shall mean a certified audit of the
licensee's books and records and systems of internal control
performed by a certified public accountant in accordance with
generally accepted accounting principles and generally
accepted auditing standards.
(aa) "Financial institution" shall mean a savings and loan
association, savings bank, credit union, or a bank organized
under the laws of Illinois or a savings and loan association,
savings bank, credit union or a bank organized under the laws
of the United States and headquartered in Illinois.
(bb) "Escrow agent" shall mean a third party, individual
or entity charged with the fiduciary obligation for holding
escrow funds on a residential mortgage loan pending final
payout of those funds in accordance with the terms of the
residential mortgage loan.
(cc) "Net worth" shall have the meaning ascribed thereto
in Section 3-5 of this Act.
(dd) "Affiliate" shall mean:
(1) any entity that directly controls or is controlled
by the licensee and any other company that is directly
affecting activities regulated by this Act that is
controlled by the company that controls the licensee;

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(2) any entity:
(A) that is controlled, directly or indirectly, by
a trust or otherwise, by or for the benefit of
shareholders who beneficially or otherwise control,
directly or indirectly, by trust or otherwise, the
licensee or any company that controls the licensee; or
(B) a majority of the directors or trustees of
which constitute a majority of the persons holding any
such office with the licensee or any company that
controls the licensee;
(3) any company, including a real estate investment
trust, that is sponsored and advised on a contractual
basis by the licensee or any subsidiary or affiliate of
the licensee.
(ee) "First tier subsidiary" shall be defined by
regulation incorporating the comparable definitions used by
the Office of the Comptroller of the Currency and the Illinois
Commissioner of Banks and Real Estate.
(ff) "Gross delinquency rate" means the quotient
determined by dividing (1) the sum of (i) the number of
government-insured residential mortgage loans funded or
purchased by a licensee in the preceding calendar year that
are delinquent and (ii) the number of conventional residential
mortgage loans funded or purchased by the licensee in the
preceding calendar year that are delinquent by (2) the sum of
(i) the number of government-insured residential mortgage

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loans funded or purchased by the licensee in the preceding
calendar year and (ii) the number of conventional residential
mortgage loans funded or purchased by the licensee in the
preceding calendar year.
(gg) "Delinquency rate factor" means the factor set by
rule of the Commissioner that is multiplied by the average
gross delinquency rate of licensees, determined annually for
the immediately preceding calendar year, for the purpose of
determining which licensees shall be examined by the
Commissioner pursuant to subsection (b) of Section 4-8 of this
Act.
(hh) (Blank).
(ii) "Confidential supervisory information" means any
report of examination, visitation, or investigation prepared
by the Commissioner under this Act, any report of examination
visitation, or investigation prepared by the state regulatory
authority of another state that examines a licensee, any
document or record prepared or obtained in connection with or
relating to any examination, visitation, or investigation, and
any record prepared or obtained by the Commissioner to the
extent that the record summarizes or contains information
derived from any report, document, or record described in this
subsection. "Confidential supervisory information" does not
include any information or record routinely prepared by a
licensee and maintained in the ordinary course of business or
any information or record that is required to be made publicly

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available pursuant to State or federal law or rule.
(jj) "Mortgage loan originator" means an individual who
for compensation or gain or in the expectation of compensation
or gain:
(i) takes a residential mortgage loan application; or
(ii) offers or negotiates terms of a residential
mortgage loan.
"Mortgage loan originator" includes an individual engaged
in loan modification activities as defined in subsection (yy)
of this Section. A mortgage loan originator engaged in loan
modification activities shall report those activities to the
Department of Financial and Professional Regulation in the
manner provided by the Department; however, the Department
shall not impose a fee for reporting, nor require any
additional qualifications to engage in those activities beyond
those provided pursuant to this Act for mortgage loan
originators.
"Mortgage loan originator" does not include an individual
engaged solely as a loan processor or underwriter except as
otherwise provided in subsection (d) of Section 7-1A of this
Act.
"Mortgage loan originator" does not include a person or
entity that only performs real estate brokerage activities and
is licensed in accordance with the Real Estate License Act of
2000, unless the person or entity is compensated by a lender, a
mortgage broker, or other mortgage loan originator, or by any

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agent of that lender, mortgage broker, or other mortgage loan
originator.
"Mortgage loan originator" does not include a person or
entity solely involved in extensions of credit relating to
timeshare plans, as that term is defined in Section 101(53D)
of Title 11, United States Code.
(kk) "Depository institution" has the same meaning as in
Section 3 of the Federal Deposit Insurance Act, and includes
any credit union.
(ll) "Dwelling" means a residential structure or mobile
home which contains one to 4 family housing units, or
individual units of condominiums or cooperatives.
(mm) "Immediate family member" means a spouse, child,
sibling, parent, grandparent, or grandchild, and includes
step-parents, step-children, step-siblings, or adoptive
relationships.
(nn) "Individual" means a natural person.
(oo) "Loan processor or underwriter" means an individual
who performs clerical or support duties as an employee at the
direction of and subject to the supervision and instruction of
a person licensed, or exempt from licensing, under this Act.
"Clerical or support duties" includes subsequent to the
receipt of an application:
(i) the receipt, collection, distribution, and
analysis of information common for the processing or
underwriting of a residential mortgage loan; and

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(ii) communicating with a consumer to obtain the
information necessary for the processing or underwriting
of a loan, to the extent that the communication does not
include offering or negotiating loan rates or terms, or
counseling consumers about residential mortgage loan rates
or terms. An individual engaging solely in loan processor
or underwriter activities shall not represent to the
public, through advertising or other means of
communicating or providing information, including the use
of business cards, stationery, brochures, signs, rate
lists, or other promotional items, that the individual can
or will perform any of the activities of a mortgage loan
originator.
(pp) "Nationwide Multistate Licensing System and Registry"
means a mortgage licensing system developed and maintained by
the Conference of State Bank Supervisors and the American
Association of Residential Mortgage Regulators for the
licensing and registration of licensed mortgage loan
originators.
(qq) "Nontraditional mortgage product" means any mortgage
product other than a 30-year fixed rate mortgage.
(rr) "Person" means a natural person, corporation,
company, limited liability company, partnership, or
association.
(ss) "Real estate brokerage activity" means any activity
that involves offering or providing real estate brokerage

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services to the public, including:
(1) acting as a real estate agent or real estate
broker for a buyer, seller, lessor, or lessee of real
property;
(2) bringing together parties interested in the sale,
purchase, lease, rental, or exchange of real property;
(3) negotiating, on behalf of any party, any portion
of a contract relating to the sale, purchase, lease,
rental, or exchange of real property, other than in
connection with providing financing with respect to any
such transaction;
(4) engaging in any activity for which a person
engaged in the activity is required to be registered or
licensed as a real estate agent or real estate broker
under any applicable law; or
(5) offering to engage in any activity, or act in any
capacity, described in this subsection (ss).
(tt) "Registered mortgage loan originator" means any
individual that:
(1) meets the definition of mortgage loan originator
and is an employee of:
(A) a depository institution;
(B) a subsidiary that is:
(i) owned and controlled by a depository
institution; and
(ii) regulated by a federal banking agency; or

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(C) an institution regulated by the Farm Credit
Administration; and
(2) is registered with, and maintains a unique
identifier through, the Nationwide Multistate Licensing
System and Registry.
(uu) "Unique identifier" means a number or other
identifier assigned by protocols established by the Nationwide
Multistate Licensing System and Registry.
(vv) "Residential mortgage license" means a license issued
pursuant to Section 1-3, 2-2, or 2-6 of this Act.
(ww) "Mortgage loan originator license" means a license
issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.
(xx) "Secretary" means the Secretary of the Department of
Financial and Professional Regulation, or a person authorized
by the Secretary or by this Act to act in the Secretary's
stead.
(yy) "Loan modification" means, for compensation or gain,
either directly or indirectly offering or negotiating on
behalf of a borrower or homeowner to adjust the terms of a
residential mortgage loan in a manner not provided for in the
original or previously modified mortgage loan.
(zz) "Short sale facilitation" means, for compensation or
gain, either directly or indirectly offering or negotiating on
behalf of a borrower or homeowner to facilitate the sale of
residential real estate subject to one or more residential
mortgage loans or debts constituting liens on the property in

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which the proceeds from selling the residential real estate
will fall short of the amount owed and the lien holders are
contacted to agree to release their lien on the residential
real estate and accept less than the full amount owed on the
debt.
(aaa) "Bona fide nonprofit organization" means an
organization that is described in Section 501(c)(3) of the
Internal Revenue Code, is exempt from federal income tax under
Section 501(a) of the Internal Revenue Code, does not operate
in a commercial context, and does all of the following:
(1) Promotes affordable housing or provides home
ownership education or similar services.
(2) Conducts its activities in a manner that serves
public or charitable purposes.
(3) Receives funding and revenue and charges fees in a
manner that does not create an incentive for itself or its
employees to act other than in the best interests of its
clients.
(4) Compensates its employees in a manner that does
not create an incentive for its employees to act other
than in the best interests of its clients.
(5) Provides to, or identifies for, the borrower
residential mortgage loans with terms favorable to the
borrower and comparable to residential mortgage loans and
housing assistance provided under government housing
assistance programs.

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(bbb) "Remote location" means a location other than a
principal place of business or a full service office at which a
mortgage loan originator of a licensee may conduct business.
(ccc) "Shared appreciation agreement" means a writing
evidencing a transaction or any option, future, or any other
derivative between a person and a consumer where the consumer
receives money or any other item of value in exchange for an
interest or future interest in a dwelling or residential real
estate or a future obligation to repay a sum on the occurrence
of an event, such as:
(1) the transfer of ownership;
(2) a repayment maturity date;
(3) the death of the consumer; or
(4) any other event contemplated by the writing.
The Commissioner may define by rule and regulation any
terms used in this Act for the efficient and clear
administration of this Act.
(Source: P.A. 103-156, eff. 1-1-24.)
(205 ILCS 635/5-12.5 new)
Sec. 5-12.5. Shared appreciation agreement consumer
counseling and disclosures.
(a) Notwithstanding any provision in this Act to the
contrary, prior to taking any legally binding action on a
shared appreciation agreement, the borrower or borrowers shall
be provided counseling, as that term is defined in Section 70

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of the Residential Real Property Disclosure Act, regardless of
the county in which the property is located. The borrower may
not waive counseling.
(b) The Secretary may adopt rules relating to shared
appreciation agreements, including, but not limited to, rules
defining statutory terms; relating to disclosures to help
consumers understand the cost, duration, and fees of the
agreement, as well as potential alternatives; on the limits on
the interest or other fees that may be charged to a borrower;
and relating to counseling under subsection (a).
Section 10. The Residential Real Property Disclosure Act
is amended by changing Sections 72 and 73 as follows:
(765 ILCS 77/72)
Sec. 72. Originator; required information. As part of the
predatory lending database program, the broker or originator
must submit all of the following information for inclusion in
the predatory lending database for each loan for which the
originator takes an application:
(1) The borrower's name, address, social security
number or taxpayer identification number, date of birth,
and income and expense information, including total
monthly consumer debt, contained in the mortgage
application.
(2) The address and a description of the collateral

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and information about the loan or loans being applied for
and the loan terms, including the amount of the loan, the
rate and whether the rate is fixed or adjustable,
amortization or loan period terms, and any other material
terms.
(3) The borrower's credit score at the time of
application.
(4) Information about the originator and the company
the originator works for, including the originator's
license number and address, fees being charged, whether
the fees are being charged as points up front, the yield
spread premium payable outside closing, and other charges
made or remuneration required by the broker or originator
or its affiliates or the broker's or originator's employer
or its affiliates for the mortgage loans.
(5) (Blank).
(6) All information indicated in connection with the
TILA-RESPA Integrated Loan Estimate Disclosure or on the
Good Faith Estimate and Truth in Lending statement
disclosures given to the borrower by the broker or
originator.
(7) Annual real estate taxes for the property,
together with any assessments payable in connection with
the property to be secured by the collateral and the
proposed monthly principal and interest charge of all
loans to be taken by the borrower and secured by the

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property of the borrower.
(8) Information concerning how the broker or
originator obtained the client and the name of its
referral source, if any.
(9) Information concerning the notices provided by the
broker or originator to the borrower as required by law
and the date those notices were given.
(10) Information concerning whether a sale and
leaseback is contemplated and the names of the lessor and
lessee, seller, and purchaser.
(11) Any and all financing by the borrower for the
subject property within 12 months prior to the date of
application.
(12) Loan information, including interest rate, term,
purchase price, down payment, and closing costs.
(13) Whether the buyer is a first-time homebuyer or
refinancing a primary residence.
(14) Whether the loan permits interest only payments.
(15) Whether the loan may result in negative
amortization.
(16) Whether the total points and fees payable by the
borrowers at or before closing will exceed 5%.
(17) Whether the loan includes a prepayment penalty,
and, if so, the terms of the penalty.
(18) Whether the loan is an ARM.
(19) Whether the borrower has entered into a shared

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appreciation agreement as defined in Section 1-4 of the
Residential Mortgage License Act of 1987.
All information entered into the predatory lending
database must be true and correct to the best of the
originator's knowledge. The originator shall, prior to
closing, correct, update, or amend the data as necessary. If
any corrections become necessary after the file has been
accessed by the closing agent or housing counselor, a new file
must be entered.
(Source: P.A. 100-509, eff. 9-15-17.)
(765 ILCS 77/73)
Sec. 73. Standards for counseling. A borrower or borrowers
subject to this Article shall be recommended for counseling
if, after reviewing the information in the predatory lending
database submitted under Section 72, the Department finds the
borrower or borrowers are all first-time homebuyers or
refinancing a primary residence and the loan is a mortgage
that includes one or more of the following:
(1) the loan permits interest only payments;
(2) the loan may result in negative amortization;
(3) the total points and fees payable by the borrower
at or before closing will exceed 5%;
(4) the loan includes a prepayment penalty; or
(5) the loan is an ARM; or .
(6) the borrower has entered into
a shared

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appreciation agreement as defined in Section 1-4 of the
Residential Mortgage License Act of 1987.
(Source: P.A. 95-691, eff. 6-1-08.)