House Sponsors: BURKE-MORROW-GRANBERG-JONES,LOU-SHARP, HAMOS, DAVIS,MONIQUE, LYONS,JOSEPH, BRADLEY, PUGH, HOFFMAN, ACEVEDO, CAPPARELLI, CURRIE, DELGADO, FEIGENHOLTZ, HOWARD, KENNER, LANG, LOPEZ, MCKEON, OSTERMAN, TURNER,ART AND GARRETT. Short description: PREDATORY HOME LOAN ACT Synopsis of Bill as introduced: Creates the Predatory Home Loan Practices Act. Prohibits various practices and charges in connection with home loans made to persons with respect to their primary residence. Prohibits the imposition of prepayment penalties, flipping of loans, and lender financing of credit insurance. Imposes limitations on high-cost loans. Prohibits loans unless the lender reasonably believes that the borrower is able to make scheduled payments to repay the loan without respect to the borrower's equity in the property. Authorizes a borrower to obtain damages for violations of the Act. HOUSE AMENDMENT NO. 1. Replaces the title and everything after enacting clause. Creates the Predatory Home Loan Practices Act. Includes provisions of the bill as introduced. Adds restrictions on home-improvement contracts. Pro- vides that remedies under the Act are not exclusive. HOUSING AFFORDABILITY NOTE, H-AM 1 (Housing Development Auth.) It is anticipated that this legislation will decrease the cost of purchasing or owning a home for those that access high cost home loans. However, it is not possible to determine the number of high cost loans that will be avoided because of this Act. Therefore, there is insufficient information available to determine the fiscal effect to the cost of purchasing or owning a single family residence. FISCAL NOTE, H-AM 1 (Dept. of Financial Institutions) There would be a total fiscal impact of $528,207, which would include 9 additional employees. STATE DEBT NOTE, H-AM 1 (Ill. Economic and Fiscal Commission) HB 3007, as amended, would not change the amount of authori- zation for any type of State-issued or State-supported bond, and therefore, would not affect the level of State indebted- ness. HOME RULE NOTE, H-AM 1 (Department of Commerce and Community Affairs) This legislation does not relate to the activities of home rule units of government, and therefore does not preempt home rule authority. FISCAL NOTE, H-AM 1 (Department of Corrections) There would be no corrections population or fiscal impact. CORRECTIONAL NOTE, H-AM 1 (Department of Corrections) Same as DOC fiscal note. HOUSE AMENDMENT NO. 2. Deletes reference to: New Act Adds reference to: 205 ILCS 635/1-4 from Ch. 17, par. 2321-4 205 ILCS 635/1-5 from Ch. 17, par. 2321-5 205 ILCS 635/4-8 from Ch. 17, par. 2324-8 205 ILCS 635/4-8.1 new 205 ILCS 635/4-8.2 new 205 ILCS 635/4-8.3 new 205 ILCS 635/4-8.4 new 205 ILCS 635/4-8.5 new 205 ILCS 635/4-8.6 new 205 ILCS 635/4-8.7 new 205 ILCS 635/4-8.8 new 205 ILCS 635/4-8.9 new 205 ILCS 635/4-8.10 new 205 ILCS 635/4-8.11 new Replaces the title and everything after the enacting clause. Amends the Residential Mortgage License Act of 1987. Increases the size of the Residential Mortgage Board from 5 to 7 members. Provides that one of the additional members shall be a representative of the National Training and Information Center and one shall be a representative of the Woodstock Institute. Requires the board to meet at least 4 times each calendar year. Provides that the Commissioner of Banks and Real Estate or the board shall investigate licensees when there are facts that would constitute grounds for disciplinary action. Provides for hearings and procedures for the hearings. Effective immediately. FISCAL NOTE, H-AM 2 (Office of Banks and Real Estate) This legislation would necessitate the hiring of 7 additional staff to accommodate the expansion of examinations and prose- cutions of licensed entities, as well as enforcement powers provided within the legislation. The estimated total fiscal impact is approximately $428,000 annually. HOUSING AFFORDABILITY NOTE, H-AM 2 (Housing Development Auth.) There is no fiscal impact on a single-family residence. JUDICIAL NOTE, H-AM 2 (Administrative Office of Ill. Courts) There may be an increase in judicial workloads. However, it is not possible to determine what impact the bill will have on the number of judges needed in the State. Last action on Bill: SESSION SINE DIE Last action date: 01-01-09 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 2 SENATE - 0 END OF INQUIRY Full Text Bill Status