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91_HB1803
LRB9103382WHdv
1 AN ACT concerning mortgage escrow accounts, amending
2 named Acts.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Mortgage Escrow Account Act is amended by
6 adding Section 5.1 as follows:
7 (765 ILCS 910/5.1 new)
8 Sec. 5.1. Interest payment on escrow account. A
9 mortgage lender that requires an escrow account or an escrow
10 like arrangement shall pay interest to the borrower of those
11 funds, calculated on a daily basis, at the rate the mortgage
12 lender pays to depositors of funds in ordinary savings
13 accounts.
14 Section 10. The Mortgage Tax Escrow Act is amended by
15 changing Section 1 as follows:
16 (765 ILCS 915/1) (from Ch. 17, par. 5001)
17 Sec. 1. Amount in escrow account. A lender providing a
18 mortgage for a single family residence shall collect and hold
19 no more in an escrow account than is necessary to make
20 required tax or insurance payments or other charges when due,
21 plus, if provided in the mortgage loan instruments, an amount
22 sufficient to maintain a cushion equal to one-sixth of an
23 amount that the lender reasonably estimates will be the total
24 amount of charges payable from the escrow account during the
25 ensuing 12 month period under normal practice. No agreement
26 for the mortgage of a single-family residence shall contain
27 any requirement that the mortgagor of the residence shall
28 maintain in any escrow account for the payment of real
29 property taxes or in any escrow-like arrangement for the same
-2- LRB9103382WHdv
1 purpose any amount of money greater than 150% of the previous
2 year's assessed real property tax upon the real property in
3 regard to which the account is maintained, except in the
4 first year of the mortgage's life.
5 (Source: P.A. 79-726.)