Per IDFPR the zip codes for HB4050 are - 60620, 60621, 60623, 60628, 60629. 60632, 60636, 60638, 60643 and 60652
We do know that the TitleIndustrySafeHarbor was removed from the rules, thus we are back to the situation that we may not have clear title at time of closing. If that is the case then lending will come to a stop in those areas for companies that are licensed by IDFPR (DOB) because the lenders will not buy or fund loans without clear title. We are waiting for the final word from ILTA on the issue.
At this point the payment of counseling and the data base system have not been announced as to when they will be in place.
As the IAMB sees it, we are back to the same situation as before the emergency rules were issued on December 21, 2005. Legal and lawsuit possibilities are back on the table.
The following are the rules:
TITLE 38: FINANCIAL INSTITUTIONS
CHAPTER II: DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION
PART 346
PREDATORY LENDING DATABASE
Section
346.10Definitions
346.15Information Required
346.20Standards for Credit Counseling
346.25Disclosure of Information Prohibited
346.30Credit Counselor Costs
346.35Declaration of Inception Date
346.40Exemption
AUTHORITY: Implementing and authorized by Section 70 of the Residential Real Property Disclosure Act [765 ILCS 77/70].
SOURCE: Adopted by emergency rulemaking at 30 Ill. Reg. 208, effective January 1, 2006, for a maximum of 150 days; adopted at 30 Ill. Reg. _____, effective ______.
Section 346.10 Definitions
"Act" means the Residential Real Property Disclosure Act [765 ILCS 77].
"Department" means the Department of Financial and Professional Regulation.
"FICO" means a credit risk score as defined by the Fair Isaac Corporation, or its successor, and reported under such names as "BEACON", "EMPIRICA", and "FAIR ISAAC RISK SCORE" by one or more of the following credit reporting agencies or their successors: Equifax, Inc., Experian Information Solutions, Inc., and TransUnion LLC.
"HUD-certified credit counselor" means a housing counselor employed by an agency certified by the U.S. Department of Housing and Urban Development (HUD).
"HUD-certified credit counseling" means counseling given to a borrower by a HUD-certified credit counselor pursuant to the Act, or as approved by the Department for counseling given to a borrower by a HUD-certified housing counseling agency pursuant to HUD counseling requirements for Federal Home Administration (FHA) programs.
"Pilot Program" means the Cook County Predatory Lending Database Pilot Program created by Section 70 of the Act.
"Points and fees" means all items required to be disclosed as points and fees as defined in Section 10 of the High Risk Home Loan Act [815 ILCS 137/10].
Section 346.15 Information Required
As part of the predatory lending database pilot 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:
a)The borrower's name, address, social security number or taxpayer identification number, date of birth, and income and expense information contained in the mortgage application.
b)The address, permanent index number, and a description of the collateral 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 periodterms, and any other material terms.
c)The borrower's credit score at the time of application.
d)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.
e)Information about affiliated or third party service providers, including the names and addresses of appraisers, title insurance companies, closing agents, attorneys, and realtors who are involved with the transaction and the broker or originator and any moneys received from the broker or originator in connection with the transaction.
f)All information indicated on the Good Faith Estimate and Truth in Lending statement disclosures given to the borrower by the broker or originator.
g)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 property of the borrower.
h)Information concerning how the broker or originator obtained the client and the name of its referral source, if any.
i)Information concerning the notices provided by the broker or originator to the borrower as required by law and the date those notices were given.
j)Information concerning whether a sale and leaseback is contemplated and the names of the lessor and lessee, seller, and purchaser.
k)The broker or loan originator for any mortgage on residential property within the Pilot Program area must submit additional information to the database as follows:
1)any and all financing by the borrower for the subject property within 12 months prior to the date of application; and
2)loan information, including interest rate, term, purchase price, down payment, closing costs and prepayment penalty, if any.
Section 346.20 Standards for Credit Counseling
A borrower or borrowers, subject to Article 3 of the Act, shall be recommended for HUD-certified credit counseling if, after reviewing the information on the Predatory Lending Database submitted under Section 72 of the Act and Section 346.15, the Department finds:
a)a FICO score of 620 or less for the middle score if three scores are used, or for the lowest score if fewer than three scores are used; or
b)a FICO score from 621 to 650 for the middle score if three scores are used, or for the lowest score if fewer than three scores are used, and one or more of the following factors exist:
1)the subject property was financed within 12 months prior to the date of application;
2)the loan payment is interest only;
3)the interest rate for the loan adjusts within 3 years or less;
4)the loan uses a stated income for the borrower, rather than verifying the borrower's income through means of tax returns, pay stubs, accounting statements, or other prudent means; or
c)the loan includes a prepayment penalty; or
d)the loan results in negative amortization; or
e)the total points and fees payable by the borrower at or before closing will exceed 5%.
Section 346.25 Disclosure of Information Prohibited
Pursuant to Section 70(h) of the Act, information or documents obtained by employees of the Department in the course of maintaining and administering the Predatory Lending Database shall be deemed confidential. Employees are prohibited from making disclosure of such confidential information or documents. Any request for production of information from the Predatory Lending Database, whether by subpoena, notice, or any other source, shall be referred to the Office of the Attorney General.
Section 346.30 Credit Counselor Costs
Reasonable and customary costs associated with credit counseling provided under the Act shall be paid by the broker or loan originator.
Section 346.35 Declaration of Inception Date
The Secretary of Financial and Professional Regulation will declare in writing the date of creation ("inception date") of the Pilot Program created by Section 70(b) of the Act. The inception date shall be at least 30 days after the date the Secretary's declaration is issued. The Secretary's declaration will be established in this Part and will be posted on the Department's website. The Department will communicate the declaration to affected licensees of the Department. Until the inception date, none of the duties, obligations, contingencies or consequences of or from the Pilot Program will be imposed. The four-year term of the program will begin on the inception date.
Section 346.40 Exemption
Borrowers applying for reverse mortgage financing of residential real estate under programs regulated by the Federal Housing Authority (FHA) that require HUD-certified counseling may submit a HUD counseling certificate to comply with the Pilot Program.
3 / Industry Awards
You have until January 29 to make your nominations for the following awards:
Broker Support Person Of The Year
Wholesale Support Person Of The Year
Vendor Support Person Of The Year
Processor Of The Year
Broker Closer Of The Year
Title Company Closer Of The Year
Wholesale Closer of the Year
Contract underwriter of the Year
Wholesale Underwriter Of The Year
Vendor Sales Representative Of The Year
Wholesale Sales Representative – “A” Paper
Wholesale Sales Representative – SubPrime
Broker - Operations Manager of the Year
Wholesale Operations Manager of the Year
Vendor Manager Of The Year
Wholesale Manager Of The Year
Loan Officer Of The Year – SubPrime
Loan Officer Of The Year – “A” Paper
Broker Owner of the Year
Vendor of The Year
Wholesaler of the Year
Broker Of The Year – SubPrime
Broker Of The Year - “A” Paper
The awards can be placed via the IAMB website at and with on the front page all you have to do is select the award you want to nominate someone for and complete the form and send, it is that easy. This is not a popularity contest it is based on the content of why the person should win the award. You can nominate as many people as you would like in and out of your company as long as they deserved to be nominated for a job well done. The nominations close on Monday January 30, 2006. It is anticipated there will be over 400 people nominated. Don’t forget to nominate that made your company the success it is.
There has been a wild rumor that is going around that this the winners are not selected but picked because of favoritism, that is the farthest from the truth. There is a private and select committee of wholesalers, vendors and brokers that select all the winners based on the content of the nominations. I want ot assure you that the Board of Directors is not on the committee and select only two awards and they are the Harold Issaccson Award – Broker of the Year, who has demonstrated the most the leadership of the IAMB. The other award is the President’s Award selected by the immediate Past President, Terry Bivins.
You can also register for this fantastic evening by registering through the website or faxing on the registration form.
See Articles 6 and 7 for the nominees through January 9.
4 / THURSDAY, FEBRUARY 2, 2006
IAMB BREAKFAST
DOB Staff Discussing Regulatory Changes.
The Rules and the Areas Will Have Been Announced Prior To The Meeting – What Is Next?
IDFPR and DOB Will Respond To Your Questions
DATE:THURSDAY, February 2, 2006
TIME:8:00 A.M. Registration8:30 A.M. Breakfast
LOCATION:The Carlisle, 435 East Butterfield Road, Lombard
(Just East of Highland on Butterfield) 630-960-0210
COST: Members: $25.00* At the door $40.00Non-Members:$65.00**
*BOTH IAMB AND IMBA MEMBERS MAY ATTEND AT THE MEMBERSHIP RATE.We Require Advance Reservations And Payment To Be Received No Later Than Noon on Wed., Feb. 1, 2006.
Tickets Are Held At The Door. We Are Unable To Accept Late Or Phone Reservations. Faxed Reservations Must Be Paid By Credit Card. All Member Payments At The Door Will Be $40.00 With No Guarantee Of Seating Availability.
****************************************************************************************************************
THURSDAY, February 2, 2006 IAMB BREAKFAST AND PROGRAM
REGISTER ON-LINE AT GO TO UPCOMING EVENTS.DETACH AND RETURN WITH PAYMENT TO:OR FAX CREDIT CARD PAYMENTS TO:
Illinois Association of Mortgage BrokersFax: 630-563-1784
350 W. 22nd St., Suite 104, Lombard, IL 60148Phone: 630-916-7720
COMPANY:______
NAMES: ______
______
For a confirmation of this registration, please supply your e-mail address ______
NAME FOR ONE (1) COMPLIMENTARY 2006 SPONSOR TICKET: ______
(Diamond, Emerald, Platinum & Gold Sponsor Companies ONLY)
# Tickets To Be Purchased:
____ MEMBERS @ $25.00 EA. (Both IAMB and IMBA Members)
______NON-MEMBER @$65.00 **($40.00 WILL BE CREDITED TO MEMBERSHIP IF YOU JOIN BY MARCH 10, 2006)
______Check payable to IAMB or Charge to: _____MasterCard _____Visa _____American Express
CARD NO. ______EXPIRATION DATE ______
NAME ON CARD (PLEASE PRINT) ______
ZIP CODE OF CARDHOLDER______STREET # (HOUSE NUMBER) OF CARDHOLDER______
CARDHOLDER'S SIGNATURE ______
ALL CANCELLATIONS ARE SUBJECT TO A $5.00 PROCESSING FEE. NO CANCELLATIONS OR REFUNDS AFTER JANUARY 26, 2006
5 /
IAMB UPCOMING EVENTS & CONTINUING EDUCATION CLASSES
Go to and click on Education Foundationand then click on Registration Forms or you can register on line by clicking on On-Line RegistrationIAMB UPCOMING EVENTS & CONTINUING EDUCATION CLASSES
Go to and click on Education Foundationand then click on Registration Forms or you can register on line by clicking on On-Line RegistrationFebruary
2 / Breakfast Meeting
2 / LP – in the AM DO in the PM
6 / Introduction to SubPrime
7 / Reverse Mortgages – AM Appraisal – PM
8- 10 / Mortgage One
13 / Credit Scoring – AM Disclosures - PM
14 / Calyx in the AM and PM
15 / Small Business
16 – 17 / Processing
20- 22 / Mortgage One
23 / Loan Officer Test Review – AM Mortgage Law – PM
24 / Truth-in-Lending – AM Fair Lending - PM
March
1 / Breakfast Meeting
2 and 3 / Introduction to Underwriting
6 – 8 / Mortgage One
9 / Board Meeting
14 / LP in the AM DO in the PM
16 / Loan Officer Test Review – AM Mortgage Law - PM
17 / Introduction to Commercial
20 / RESPA in the AM Calyx in the PM
21 / Advanced SubPrime
22 / Fraud in the AM Self-employed in the PM
23 and 24 / Processing
27 – 29 / NAMB Legislative Conference in WashingtonDC
6 / Congratulations To Father and Daughter
Congratulations to Ken Amstutz and Kirstan Amstutz Wilkinson on both obtaining the CMC and CRMS Designations from NAMB. This isthe first Father and Daughter combination to accomplish this feat in the United States and the history of IAMB and NAMB.Ken encourages more members to pursue education and the designations of CRMS and CMC.
Words that came from NAMB President Jim Nabors:
On behalf of the entire board of directors of the National Association of Mortgage Brokers I congratulate Kirstan on her accomplishment. You deserve to be proud as any father should be.
8 / Be On The Alert For A Call From This Person
It has been brought to our attention by one of our members that this person will cause you some problems concerning Do Not Call. He will call into your office and ask for someone to call back. He will then indicate that you are calling the DO Not Call Laws and that if you do not do as he requests he will take you to court and if you don’t want ot go to court, then he will settle out of court.
Our recommendation is to not return calls to this person if he calls into your company as it may cause you legal and unnecessary grief for you and or your company.
More Media Events /
About the Author
Over the past three and one-half years, Ryan Swanberg has developed a career not of the norm. He doesn’t drink alcohol, smoke, do drugs, or participate in criminal activity; however, he does have one addiction, lawsuits. What many people see as a burden, he sees as an opportunity. What many people see as a liability, he sees as an asset. What many people see as a waste of time, he sees as a lawsuit. Why is this? Why does he welcome telemarketers and debt collectors, the two most hated industries in the United States to invade his home, calling at all hours of the day and night harassing him into buying something or paying something off? The reason is simple, he is a career plaintiff.
Mr. Swanberg has successfully exposed, and ultimately settled, over three hundred lawsuit cases with unsuspecting companies, who had no clue that he was waiting for their employees’ to trip up and violate the law. He has made around $100,000 per year from suing, more specifically, suing the negligent, egregious, and law-breaking companies.
Every company he sued, every one, broke the law either inadvertently or intentional. He will not spare the law-breaking small mom and pop shop simply because they apologize incessantly and give him a sob story of their hardships. Whether a company is big or small doesn’t matter; if they broke the law and concurrently violated his rights, he sought to claim any and all applicable statutory or punitive damages allowed per federal and/or state law. Mr. Swanberg has done everything from settling cases with major corporations in his pajamas while feeding his cat, to ascertaining hefty judgments at trial in a suit.
In March 2005, Mr. Swanberg established Swanberg & Associates, Inc., to provide an appropriate venue to sell his book, and to branch out into consulting for both the debt collection and telemarketing industries. His experience of being the victimized debtor and consumer, as well as a career plaintiff, can provide a vast amount of insider knowledge to the unsuspecting industries.
Mr. Swanberg is not ashamed of who he is, nor the path he has led. It takes a unique individual to go against the grain of society with respect to an occupation and learn the judicial system in conjunction with multiple consumer rights laws. He has done just that. Not only has he learned the laws, but applied, enforced, and ultimately benefited monetarily from them.
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August Ash, Inc. / Home - The Book - About the Author - Media Coverage - Order Now - Consulting - Contact - Legal
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9 / Miscellaneous
Colorado Considers Mortgage Broker Registration Proposals
The Colorado legislature is expected to consider proposals to regulate mortgage brokers during its 2006 session. On January 18, 2006, House Bill 1161, entitled the Mortgage Broker Registration Act (the “Registration Act”), was introduced. Competing legislation, known as the Mortgage Enforcement Act (the “Enforcement Act”), is expected to be introduced soon and is supported by the Colorado Mortgage Lenders Association and the Colorado Association of Mortgage Brokers.
The provisions of the Registration Act track the recommendations made by the Colorado Department of Regulatory Agencies in an October 14, 2005 report. The Registration Act would require individuals who “directly or indirectly solicit, process, place, negotiate, or originate a mortgage loan for a borrower, or offer such services to a borrower” to be registered with the Division of Real Estate. Under the Registration Act, an applicant would be required to submit fingerprints as part of a criminal background check and post a $100,000 surety bond. Persons who only fund loans and do not solicit or engage in negotiations with borrowers would be exempt from registration. Registrations would be required to be renewed every three years. If enacted, the registration requirement would be effective January 1, 2007.
The Enforcement Act also would require individuals engaged in mortgage broker activities to be registered and renew the registration every three years at a cost of $75, but would not include a surety bond requirement. The Enforcement Act includes a fee, not to exceed $5, to be collected from the lender and/or broker at closing on every loan secured by property in Colorado. The revenue generated by this fee would be used to fund a mortgage enforcement board, which would have the authority to investigate complaints made about the loan originator who signs the loan application and to recommend prosecution by the state Attorney General.
A copy of the bill is available on our website, , in the Resources section of the Library.
Software Purchases
Be very cognizant of any software purchases as to the service contract, as you may think you have Technical Support and then come to find out that is an extra expense. It has come to the attention of the IAMB that member companies are being purchasing software thinking they have tech support to only find out that it is going to cost them big dollars to get protection and help in updating their software.
Appraisal Website Offers You Many Items That Can Help Your Business
The new non-appraiser subscription feature is on the ICAP home page under LATEST FEATURES. Mortgage Companies can either join immediately or they can try the FREE 10 day trial subscription. Right now we have over 50 local assessor's site links on the site and over 70 local zoning map links. 99% free data including plat maps, census info, property data pages, online tax info, Illinois legislative links, real estate news and much more.
Just go to IAMB.org and then click on Industry and Regulatory and click on the ICAP logo which will take you to .
Illinois Association of Mortgage Brokers