(815 ILCS 137/95)
Sec. 95.
Disclosure prior to making a high risk home loan.
A lender
shall not transfer, deal in, offer, or make a high risk home loan unless the
lender has given the following
notice or a substantially similar notice in writing, to the borrower,
acknowledged
in writing and signed by the borrower not later than the time the notice is
required
under the notice provision contained in 12 CFR 226.31(c):
NOTICE TO BORROWER
YOU SHOULD BE AWARE THAT YOU MIGHT BE ABLE TO OBTAIN A LOAN
AT A LOWER COST. YOU SHOULD SHOP AROUND AND COMPARE LOAN
RATES AND FEES. LOAN RATES AND CLOSING COSTS AND FEES VARY
BASED ON MANY FACTORS, INCLUDING YOUR PARTICULAR CREDIT AND
FINANCIAL CIRCUMSTANCES, YOUR EMPLOYMENT HISTORY, THE LOAN-TO-VALUE REQUESTED,
AND THE TYPE OF PROPERTY THAT WILL
SECURE YOUR LOAN. THE LOAN RATE AND FEES COULD ALSO VARY
BASED ON WHICH LENDER OR BROKER YOU SELECT. IF YOU ACCEPT
THE TERMS OF THIS LOAN, THE LENDER WILL HAVE A MORTGAGE LIEN
ON YOUR HOME. YOU COULD LOSE YOUR HOME AND ANY MONEY YOU
PUT INTO IT IF YOU DO NOT MEET YOUR PAYMENT OBLIGATIONS UNDER
THE LOAN. YOU SHOULD CONSULT AN ATTORNEY-AT-LAW AND AN
APPROVED CREDIT COUNSELOR OR OTHER EXPERIENCED FINANCIAL
ADVISOR REGARDING THE RATE, FEES, AND PROVISIONS OF THIS LOAN
BEFORE YOU PROCEED. A LIST OF APPROVED CREDIT COUNSELORS IS
AVAILABLE BY CONTACTING EITHER THE ILLINOIS DEPARTMENT OF
FINANCIAL INSTITUTIONS OR THE ILLINOIS OFFICE OF BANKS AND REAL
ESTATE. YOU ARE NOT REQUIRED TO COMPLETE THIS LOAN
AGREEMENT MERELY BECAUSE YOU HAVE RECEIVED THIS DISCLOSURE
OR HAVE SIGNED A LOAN APPLICATION. ALSO, YOUR PAYMENTS ON
EXISTING DEBTS CONTRIBUTE TO YOUR CREDIT RATINGS. YOU
SHOULD NOT ACCEPT ANY ADVICE TO IGNORE YOUR REGULAR
PAYMENTS TO YOUR EXISTING LENDERS.
(Source: P.A. 93-561, eff. 1-1-04.)
|