Illinois Amends Predatory Lending Database Program Requirements

Illinois has modified the Predatory Lending Database Program of the Residential Real Property Disclosure Act, effective immediately.

The definition of “Counseling” as applied to the Predatory Lending Database Program has been modified to remove the requirement that a borrower supply all necessary documents to the counselor at least 72 hours prior to scheduled telephone counseling. However, section 70(d) of the Act now requires the borrower to supply all necessary documents to the counselor at least 72 hours prior to a scheduled interview.

The definition of “Originator” within this section of the Act has been modified to mean only “mortgage loan originator” as defined in subsection (jj) of Section 1-4 of the Residential Mortgage License Act of 1987, except an exempt person.

Section 70(g) of the Act has been modified to require that at least one of the borrower’s names and the property index number be included when a title insurance company or closing agent attaches a certificate of compliance or exemption to the mortgage.

Under section 72(2), loan originators are no longer required to include the permanent index number when submitting information for inclusion to the predatory lending database. Section 72(5) of the Act has been removed. Section 72(5) had required the loan originator to provide information about affiliated or third party service providers.

When submitting information for inclusion to the predatory lending database, loan originators must also now include 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.

Section 76 now requires that a title insurance company or closing agent must submit, in addition to previous requirements:

  • All itemizations and descriptions set forth in or in connection with the TILA-RESPA Integrated Closing Disclosure or RESPA settlement statement, including items to be disbursed, payable outside closing “POC” items noted on the statement, and a list of payees and the amounts of their checks.
  • The date of closing, a detailed list of all notices provided to the borrower at closing and the date of those notices, and all information indicated on or in connection with the TILA-RESPA Integrated Loan Estimate Disclosure or on the Truth in Lending statement and Good Faith Estimate disclosures.

For the full text of Public Act 100-0509, please refer to:

Public Act 100-0509

  • Regulatory Compliance Consultant
  • Lexington, MA
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Ryan Peters, JD, is a regulatory compliance consultant with Bankers Advisory. He is a graduate of the University of Maine and earned his juris doctor at Suffolk University Law School.

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