Cook County Illinois Requirements due to SB 1167
The State of Illinois passed SB 1167, which expands and revises the Residential Real Property Disclosure Act provisions regarding the predatory lending database. Compliance requirements include:
- Brokers will input loan-level details into a state-administered database that will determine if the loan's terms or the borrower's credit attributes warrant housing counseling
- A borrower who chooses not to obtain counseling, will not be able to complete the loan transaction because a Certificate of Compliance must be obtained in order for the loan originator to record its security interest.
- For all loans that originated prior to July 1, 2008, it is the responsibility of the Title Agency to provide an exemption certificate at the closing.The exemption certificate must be provided to Guaranteed Rate in order to close the loan.
- For all loans originated in Cook County Illinois after July 1, 2008, Underwriting will be conditioning for the certificate that the loan information was entered in the database if it is not included at the time of submission
- Certificate of Compliance or Exemption Certification must be obtained in order for the loan originator to record its security interest.
- This certificate is attached to the mortgage before it is sent for recording and is part of the security instrument package to be recorded. If it is not attached, the mortgage will not be recorded.
- The Title Commitment may not contain any verbiage regarding exceptions to Illinois S.B. 1167 Predatory Lending Database.
- If an exception is listed, the exception must be cleared prior to closing.
- Fees paid to counselors for counseling services required under SB 1167 (Predatory Lending Database program) may not be charged to the borrower(s) or shown as paid by the borrower(s) on the HUD-1 settlement statement for this loan.