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RESIDENTIAL REAL PROPERTY DISCLOSURE REPORT
NOTICE: The pur pose of this report is to provide prospective buyers with information about material defects in the residential real
property. This report does not limit the parties' right to contract for the sale of residential real property in "as is" cond ition. Under
common law, sellers who disclose material defects may be under a continuing obligation to advise the prospective buyers about the
condition of the residential real property even after the report is delivered to the prospective buyer. Completion of this re port by the
seller creates legal obligations on the seller; therefore the seller may wish to consult an attorney prior to completion of t his report.
Property Address:
City, State & Zip Code:
Seller’s Name:
This Report is a disclosure of certain conditions of the residential real property listed above in compliance with the Residential Real
Property Disclosure Act. This information is provided as of (month) (day)
(year), and does not reflect any changes made or occurring after that date or information that becomes known to the
seller after that date. The disclosures herein shall not be deemed warranti es of any kind by the seller or any person representing any
party in this transaction.
In this form, “am aware” means to have actual notice or actual knowledge without any specific investigation or inquiry. In th is form,
"material defect" means a condition that would have a substantial adverse effect on the value of the residential real property or that
would significantly impair the health or safety of future occupants of the residential real property u nless the seller reasonably believes
that the condition has been corrected.
The seller discloses the following information with the knowledge that even though the statements herein are not deemed to be
warranties, prospective buyers may choose t o rely on this information in deciding whether or not and on what terms to purchase the
residential real property.
The seller represents that to the best of his or her actual knowledge, the following statements have been accurately not ed as "yes"
(correct), "no" (incorrect), or "not applicable" to the property being sold . If the seller indicates that the response to any statement,
except number 1, is yes or not applicable, the seller shall provide an explanation, in the additi onal information area of this form.
YES NO N/A
1. Seller has occupied the property within the last 12 months. (No explanation is
needed.)
2. I am aware of flooding or recurring leakage problems in the crawl space or
basement.
3. I am aware that the property is located in a flood plain or that I currently have flood
hazard insurance on the property.
4. I am aware of material defects in the basement or foundation (including cracks and
bulges).
5. I am aware of leaks or material defects in the roof, ceilings, or chimney.
6. I am aware of material defects in the walls or floors.
7. I am aware of material defects in the electrical system.
8. I am aware of material defects in the plumbing system (include such things as water
heater, sump pump, water treatment system, sprinkler system, and swimming pool).
9. I am aware of material defects in the well or well equipment.
10. I am aware of unsafe conditions in the drinking water.
11. I am aware of material defects in the heating, air conditioning, or ventilating
systems.
12. I am aware of material defects in the fireplace or woodburning stove.
13. I am aware of material defects in the septic, sanitary sewer, or other disposal
system.
14. I am aware of unsafe concentrations of radon on the premises.
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15. I am aware of unsafe concentrations of or unsafe conditions relating t o asbestos on
the premises.
16. I am aware of unsafe concentrations of or unsafe conditions relating to lead paint,
lead water pipes, lead plumbing pipes or lead in the soil on the premises.
17. I am aware of mine subsidence, underground pits, settlement, sliding, upheaval, or
other earth stability defects on the premi ses.
18. I am aware of current infestations of termites or other wood boring insects.
19. I am aware of a structural defect caused by previous infestations of termites or
other wood boring insects.
20. I am aware of underground fuel storage tanks on the property.
21. I am aware of boundary or lot line disputes.
22. I have received notice of local, state or federal laws or regulations relating to this
property, which violation has not been corrected.
23. I am aware that this property has been used for the manufacture of
methamphetamine as defined in Section 10 of the Methamphetamine Control and
Community Protection Act.
NOTE: These disclosures are not intended to cover the common elements of a condominium, but only the actual residential r eal
property including limited common elements allocated to the exclusive use thereof that form an integral part of the condomini um unit.
NOTE: These disclosures are intended to reflect the current condition of the premises a nd do not include previous problems, if any,
that the seller reasonably believes have been corrected.
If any of the above are marked "not applicable" or "yes", please explain here or use additional pages, if necessary:
Check here if additional pages used:
Seller certifies that seller has prepared this statement and certifies that the information provided is based on the actual notice or actual
knowledge of the seller without any specific investigation or inquiry on the part of the seller. The seller hereby authorizes any person
representing any principal in this transaction to provide a copy of this report, and to disclose any information in the repor t, to any
person in connection with any actual or anticipated sale of the property.
Seller: ___________________________ __________ Date: __________________________
Seller: _____________________________________ Date: __________________________
THE PROSPECTIVE BUYER IS AWARE THAT THE PARTIES MAY CHOOSE TO NEGOTIATE AN AGREEMENT FOR THE
SALE OF THE PROPERTY SUBJE CT TO ANY OR ALL MATERIAL DEFECTS DISCLOSED IN THIS REPORT ("AS IS").
THIS DISCLOSURE IS NOT A SUBSTITUTE FOR ANY INSPECTIONS OR WARRANTIES THAT THE PROSPECTIVE
BUYER OR SELLER MAY WISH TO OBTAIN OR NEGOTIATE. THE FACT THAT THE SELLER IS NOT AWA RE OF A
PARTICULAR CONDITION OR PROBLEM IS NO GUARANTEE THAT IT DOES NOT EXIST. THE PROSPECTIVE BUYER
IS AWARE THAT HE MAY REQUEST AN INSPECTION OF THE PREMISES PERFORMED BY A QUALIFIED
PROFESSIONAL.
Prospective Buyer: ______________________________ Date: _____________________ Time: _____________________
Prospective Buyer: ______________________________ Date: _____________________ Time: _____________________
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Residential Real Property Disclosure Act - 765 ILCS 77
Reprinted in full (excluding Section 35), as per 765 ILCS 77/65.
(765 ILCS 77/Art. 1 heading)
ARTICLE 1
SHORT TITLE
(Source: P.A. 94 -280, eff. 1 -1-06.)
(765 ILCS 77/1)
Sec. 1. Short title. This Act may be cited as the Residential Real Property Di sclosure Act.
(Source: P.A. 88 -111.)
(765 ILCS 77/Art. 2 heading)
ARTICLE 2
DISCLOSURES
(Source: P.A. 94 -280, eff. 1 -1-06.)
(765 ILCS 77/5)
Sec. 5. Definitions. As used in this Act, unless the context otherwise requires the following terms have the meaning given in this
Section.
"Residential real property" means real property improved with not less than one nor more than 4 residential dwelling units; units in
residential cooperatives; or, condominium units, including the limited common elements allocated to the exclusive use thereof that
form an integral part of the condominium unit. The term includes a manufactured home as defined in subdivision (53) of Section 9 -
102 of the Uniform Commercial Code that is real property as defined in the Conveyance and Encumbrance of Manufactured Homes a s
Real Property and Severance Act.
"Seller" means every person or entity who is an owner, benefi ciary of a trust, contract purchaser or lessee of a ground lease, who
has an interest (legal or equitable) in residential real property. However, "seller" shall not include any person who has bot h (i) never
occupied the residential real property and (ii) n ever had the management responsibility for the residential real property nor delegated
such responsibility for the residential real property to another person or entity.
"Prospective buyer" means any person or entity negotiating or offering to become an owner or lessee of residential real property by
means of a transfer for value to which this Act applies.
(Source: P.A. 98 -749, eff. 7 -16-14.)
(765 ILCS 77/10)
Sec. 10. Except as provided in Section 15, this Act applies to any transfer by sale , exchange, installment land sale contract,
assignment of beneficial interest, lease with an option to purchase, ground lease, or assignment of ground lease of residenti al real
property.
(Source: P.A. 88 -111.)
(765 ILCS 77/15)
Sec. 15. The provi sions of this Act do not apply to the following:
(1) Transfers pursuant to court order, including, but not limited to, transfers ordered by a probate court in administration of an
estate, transfers between spouses resulting from a judgment of dissolut ion of marriage or legal separation, transfers pursuant to an
order of possession, transfers by a trustee in bankruptcy, transfers by eminent domain, and transfers resulting from a decree for
specific performance.
(2) Transfers from a mortgagor to a m ortgagee by deed in lieu of foreclosure or consent judgment, transfer by judicial deed issued
pursuant to a foreclosure sale to the successful bidder or the assignee of a certificate of sale, transfer by a collateral as signment of a
beneficial interest of a land trust, or a transfer by a mortgagee or a successor in interest to the mortgagee's secured position or a
beneficiary under a deed in trust who has acquired the real property by deed in lieu of foreclosure, consent judgment or judi cial deed
issued pur suant to a foreclosure sale.
(3) Transfers by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or tr ust.
(4) Transfers from one co -owner to one or more other co -owners.
(5) Transfers purs uant to testate or intestate succession.
(6) Transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(7) Transfers from an entity that has taken title to residential real property fr om a seller for the purpose of assisting in the relocation
of the seller, so long as the entity makes available to all prospective buyers a copy of the disclosure form furnished to the entity by the
seller.
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(8) Transfers to or from any governmental en tity.
(9) Transfers of newly constructed residential real property that has not been occupied.
(Source: P.A. 88 -111.)
(765 ILCS 77/20)
Sec. 20. A seller of residential real property shall complete all applicable items in the disclosure docu ment described in Section 35
of this Act. The seller shall deliver to the prospective buyer the written disclosure statement required by this Act before t he signing of
a written agreement by the seller and prospective buyer that would, subject to the satis faction of any negotiated contingencies, require
the prospective buyer to accept a transfer of the residential real property.
(Source: P.A. 88 -111.)
(765 ILCS 77/25)
Sec. 25. Liability of seller.
(a) The seller is not liable for any error, inaccuracy, or omission of any information delivered pursuant to this Act if (i) the seller
had no knowledge of the error, inaccuracy, or omission, (ii) the error, inaccuracy, or omission was based on a reaso nable belief that a
material defect or other matter not disclosed had been corrected, or (iii) the error, inaccuracy, or omission was based on in formation
provided by a public agency or by a licensed engineer, land surveyor, structural pest control operato r, or by a contractor about matters
within the scope of the contractor's occupation and the seller had no knowledge of the error, inaccuracy, or omission.
(b) The seller shall disclose material defects of which the seller has actual knowledge.
(c) The seller is not obligated by this Act to make any specific investigation or inquiry in an effort to complete the disclosu re
statement.
(Source: P.A. 90 -383, eff. 1 -1-98.)
(765 ILCS 77/30)
Sec. 30. Disclosure supplement. If, prior to closing, any seller has actual knowledge of an error, inaccuracy, or omission in any prior
disclosure document after delivery of that disclosure document to a prospective buyer, that seller shall supplement the prior disclosure
document with a written supplemental disclosure.
(Source: P.A. 90 -383, eff. 1 -1-98; 91 -357, eff. 7 -29-99.)
(765 ILCS 77/35)
Sec. 35. Disclosure report form. (omitted per 765 ILCS 77/65)
(Source: P.A. 98 -754, eff. 1 -1-15.)
(765 ILCS 77/40)
Sec. 40. Material defect. If a material defect is disclosed in the Residential Real Property Disclosure Report, after accepta nce by the
prospective buyer of an offer or counter -offer made by a seller or after the execution of an offer made by a prospec tive buyer that is
accepted by the seller for the conveyance of the residential real property, then the prospective buyer may, within 3 business days after
receipt of that report by the prospective buyer, terminate the contract or other agreement without a ny liability or recourse except for
the return to prospective buyer of all earnest money deposits or down payments paid by prospective buyer in the transaction. If a
material defect is disclosed in a supplement to this disclosure document, the prospective buyer shall not have a right to terminate
unless the material defect results from an error, inaccuracy, or omission of which the seller had actual knowledge at the tim e the prior
disclosure document was completed and signed by the seller. The right to term inate the contract, however, shall no longer exist after
the conveyance of the residential real property. For purposes of this Act the termination shall be deemed to be made when wri tten
notice of termination is personally delivered to at least one of the sellers identified in the contract or other agreement or when
deposited, certified or registered mail, with the United States Postal Service, addressed to one of the sellers at the addres s indicated in
the contract or agreement, or, if there is not an addr ess contained therein, then at the address indicated for the residential real property
on the report.
(Source: P.A. 90 -383, eff. 1 -1-98.)
(765 ILCS 77/45)
Sec. 45. This Act is not intended to limit or modify any obligation to disclose created by any other statute or that may exist in
common law in order to avoid fraud, misrepresentation, or deceit in the transaction.
(Source: P.A. 88 -111.)
(765 ILCS 77/50)
Sec. 50. Delivery of the Residential Real Property Disclosure Report provided by this Act shall be by:
(1) personal or facsimile delivery to the prospective buyer;
(2) depositing the report with the United States Postal Service, postage prepaid, first class mail, addressed to the prospective
buyer at the address provided by the prospective buyer or indicated on the contract or other agreement; or
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(3) depositing the report with an alternative delivery service such as Federal Express, UPS, or Airborne, delivery charges prepaid,
addressed to the prospective buyer at the address provided by the prospective buyer or indicated on the contract or other agr eement.
For purposes of this Act, delivery to one prospec tive buyer is deemed delivery to all prospective buyers. Delivery to an authorized
individual acting on behalf of a prospective buyer constitutes delivery to all prospective buyers. Delivery of the report is effective
upon receipt by the prospective buyer. Receipt may be acknowledged on the report, acknowledged in an agreement for the conveyance
of the residential real property, or shown in any other verifiable manner.
(Source: P.A. 91 -357, eff. 7 -29-99.)
(765 ILCS 77/55)
Sec. 55. Violations and damages. If the seller fails or refuses to provide the disclosure document prior to the conveyance of the
residential real property, the buyer shall have the right to terminate the contract. A person who knowingly violates or fails to perform
any duty pres cribed by any provision of this Act or who discloses any information on the Residential Real Property Disclosure Report
that he knows to be false shall be liable in the amount of actual damages and court costs, and the court may award reasonable attorney
fees incurred by the prevailing party.
(Source: P.A. 90 -383, eff. 1 -1-98.)
(765 ILCS 77/60)
Sec. 60. No action for violation of this Act may be commenced later than one year from the earlier of the date of possession, date of
occupancy, or date o f recording of an instrument of conveyance of the residential real property.
(Source: P.A. 88 -111.)
(765 ILCS 77/65)
Sec. 65. A copy of this Act, excluding Section 35, must be printed on or as a part of the Residential Real Property Disclosur e R eport
form.
(Source: P.A. 88 -111.)
(765 ILCS 77/Art. 3 heading)
ARTICLE 3
PREDATORY LENDING DATABASE
(Source: P.A. 94 -280, eff. 1 -1-06.)
765 ILCS 77/70)
Sec. 70. Predatory lending database program.
(a) As used in this Article:
"Adjustable rate mortgage" or "ARM" means a closed -end mortgage transaction that allows adjustments of the loan interest rate
during the first 3 years of the loan term.
"Borrower" means a person seeking a mortgage loan.
"Broker" means a "broke r" or "loan broker", as defined in subsection (p) of Section 1 -4 of the Residential Mortgage License Act of
1987.
"Closing agent" means an individual assigned by a title insurance company or a broker or originator to ensure that the execut ion of
docume nts related to the closing of a real estate sale or the refinancing of a real estate loan and the disbursement of closing fun ds are
in conformity with the instructions of the entity financing the transaction.
"Counseling" means in -person counseling pr ovided by a counselor employed by a HUD -approved counseling agency to all
borrowers, or documented telephone counseling where a hardship would be imposed on one or more borrowers. A hardship shall ex ist
in instances in which the borrower is confined to his or her home due to medical conditions, as verified in writing by a physician, or
the borrower resides 50 miles or more from the nearest participating HUD -approved housing counseling agency. In instances of
telephone counseling, the borrower must supply al l necessary documents to the counselor at least 72 hours prior to the scheduled
telephone counseling session.
"Counselor" means a counselor employed by a HUD -approved housing counseling agency.
"Credit score" means a credit risk score as defined by the Fair Isaac Corporation, or its successor, and reported under such names as
"BEACON", "EMPIRICA", and "FAIR ISAAC RISK SCORE" by one or more of the following credit reporting agencies or their
successors: Equifax, Inc., Experian Information Solutions, Inc., and TransUnion LLC. If the borrower's credit report contains credit
scores from 2 reporting agencies, then the broker or loan originator shall report the lower score. If the borrower's credit r eport contains
credit scores from 3 reporting agencies, t hen the broker or loan originator shall report the middle score.
"Department" means the Department of Financial and Professional Regulation.
"Exempt person or entity" means that term as it is defined in subsections (d)(1), (d)(1.5), and (d)(1.8) of Section 1 -4 of the
Residential Mortgage License Act of 1987.
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"First -time homebuyer" means a borrower who has not held an ownership interest in residential property.
"HUD -approved counseling" or "counseling" means counseling given to a borrower by a counselor employed by a HUD -approved
housing counseling agency.
"Interest only" means a closed -end loan that permits one or more payments of interest without any reduction of the principal
balance of the loan, other than the first payment on the loan.
"Lender" means that term as it is defined in subsection (g) of Section 1 -4 of the Residential Mortgage License Act of 1987.
"Licensee" means that term as it is defined in subsection (e) of Section 1 -4 of the Residential Mortgage License Act of 1987.
"Mortgage loan" means that term as it is defined in subsection (f) of Section 1 -4 of the Residential Mortgage License Act of 1987.
"Negative amortization" means an amortization method under which the outstanding balance may increase at a ny time over the
course of the loan because the regular periodic payment does not cover the full amount of interest due.
"Originator" means a "loan originator" as defined in subsection (hh) of Section 1 -4 of the Residential Mortgage License Act of
1987 , except an exempt person, and means a "mortgage loan originator" as defined in subsection (jj) of Section 1 -4 of the Residential
Mortgage License Act of 1987, except an exempt person.
"Points and fees" has the meaning ascribed to that term in Section 10 of the High Risk Home Loan Act.
"Prepayment penalty" means a charge imposed by a lender under a mortgage note or rider when the loan is paid before the
expiration of the term of the loan.
"Refinancing" means a loan secured by the borrower's or b orrowers' primary residence where the proceeds are not used as purchase
money for the residence.
"Title insurance company" means any domestic company organized under the laws of this State for the purpose of conducting the
business of guaranteeing or i nsuring titles to real estate and any title insurance company organized under the laws of another State, the
District of Columbia, or a foreign government and authorized to transact the business of guaranteeing or insuring titles to r eal estate in
this Sta te.
(a-5) A predatory lending database program shall be established within Cook County. The program shall be administered in
accordance with this Article. The inception date of the program shall be July 1, 2008. A predatory lending database program s hall be
expanded to include Kane, Peoria, and Will counties. The inception date of the expansion of the program as it applies to Kane , Peoria,
and Will counties shall be July 1, 2010. Until the inception date, none of the duties, obligations, contingencies, or consequences of or
from the program shall be imposed. The program shall apply to all mortgage applications that are governed by this Article and that are
made or taken on or after the inception of the program.
(b) The database created under this p rogram shall be maintained and administered by the Department. The database shall be
designed to allow brokers, originators, counselors, title insurance companies, and closing agents to submit information to th e database
online. The database shall not be d esigned to allow those entities to retrieve information from the database, except as otherwise
provided in this Article. Information submitted by the broker or originator to the Department may be used to populate the onl ine form
submitted by a counselor, t itle insurance company, or closing agent.
(c) Within 10 business days after taking a mortgage application, the broker or originator for any mortgage on residential pro perty
within the program area must submit to the predatory lending database all of the information required under Section 72 and any other
information required by the Department by rule. Within 7 business days after receipt of the information, the Department shall compare
that information to the housing counseling standards in Section 7 3 and issue to the borrower and the broker or originator a
determination of whether counseling is recommended for the borrower. The borrower may not waive counseling. If at any time af ter
submitting the information required under Section 72 the broker or o riginator (i) changes the terms of the loan or (ii) issues a new
commitment to the borrower, then, within 5 business days thereafter, the broker or originator shall re -submit all of the information
required under Section 72 and, within 4 business days afte r receipt of the information re -submitted by the broker or originator, the
Department shall compare that information to the housing counseling standards in Section 73 and shall issue to the borrower a nd the
broker or originator a new determination of wheth er re -counseling is recommended for the borrower based on the information re -
submitted by the broker or originator. The Department shall require re -counseling if the loan terms have been modified to meet
another counseling standard in Section 73, or if the broker has increased the interest rate by more than 200 basis points.
(d) If the Department recommends counseling for the borrower under subsection (c), then the Department shall notify the borro wer
of all participating HUD -approved counseling agenci es located within the State and direct the borrower to interview with a counselor
associated with one of those agencies. Within 10 business days after receipt of the notice of HUD -approved counseling agencies, it is
the borrower's responsibility to select one of those agencies and shall engage in an interview with a counselor associated with that
agency. The selection must take place and the appointment for the interview must be set within 10 business days, although the
interview may take place beyond the 1 0 business day period. Within 7 business days after interviewing the borrower, the counselor
must submit to the predatory lending database all of the information required under Section 74 and any other information requ ired by
the Department by rule. Reason able and customary costs not to exceed $300 associated with counseling provided under the program
shall be paid by the broker or originator and shall not be charged back to, or recovered from, the borrower. The Department s hall
annually calculate to the ne arest dollar an adjusted rate for inflation. A counselor shall not recommend or suggest that a borrower
contact any specific mortgage origination company, financial institution, or entity that deals in mortgage finance to obtain a loan,
another quote, or f or any other reason related to the specific mortgage transaction; however, a counselor may suggest that the borrower
seek an opinion or a quote from another mortgage origination company, financial institution, or entity that deals in mortgage finance.
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A co unselor or housing counseling agency that in good faith provides counseling shall not be liable to a broker or originator or
borrower for civil damages, except for willful or wanton misconduct on the part of the counselor in providing the counseling.
(e) The broker or originator and the borrower may not take any legally binding action concerning the loan transaction until th e later
of the following:
(1) the Department issues a determination not to
recommend HUD -approved counseling for the borrower in accordance with subsection (c); or
(2) the Department issues a determination that
HUD -approved counseling is recommended for the borrower and the counselor submits all required information to the database in
accordance with subsec tion (d).
(f) Within 10 business days after closing, the title insurance company or closing agent must submit to the predatory lending
database all of the information required under Section 76 and any other information required by the Department by rul e.
(g) The title insurance company or closing agent shall attach to the mortgage a certificate of compliance with the requiremen ts of
this Article, as generated by the database. If the transaction is exempt, the title insurance company or closing agent shall attach to the
mortgage a certificate of exemption, as generated by the database. If the title insurance company or closing agent fails to a ttach the
certificate of compliance or exemption, whichever is required, then the mortgage is not recordable. In addition, if any lis pendens for a
residential mortgage foreclosure is recorded on the property within the program area, a certificate of service must be simult aneously
recorded that affirms that a copy of the lis pendens was filed with the Department. The lis pendens may be filed with the Department
either electronically or by filing a hard copy. If the certificate of service is not recorded, then the lis pendens pertainin g to the
residential mortgage foreclosure in question is not recordable and is of no force and effect.
(h) All information provided to the predatory lending database under the program is confidential and is not subject to disclo sure
under the Freedom of Information Act, except as otherwise provided in this Article. Information or do cuments obtained by employees
of the Department in the course of maintaining and administering the predatory lending database are deemed confidential. Empl oyees
are prohibited from making disclosure of such confidential information or documents. Any reques t for production of information from
the predatory lending database, whether by subpoena, notice, or any other source, shall be referred to the Department of Fina ncial and
Professional Regulation. Any borrower may authorize in writing the release of databa se information. The Department may use the
information in the database without the consent of the borrower: (i) for the purposes of administering and enforcing the prog ram; (ii)
to provide relevant information to a counselor providing counseling to a borro wer under the program; or (iii) to the appropriate law
enforcement agency or the applicable administrative agency if the database information demonstrates criminal, fraudulent, or
otherwise illegal activity.
(i) Nothing in this Article is intended to prevent a borrower from making his or her own decision as to whether to proceed with a
transaction.
(j) Any person who violates any provision of this Article commits an unlawful practice within the meaning of the Consumer Fra ud
and Deceptive Business Practices Act.
(j-1) A violation of any provision of this Article by a mortgage banking licensee or licensed mortgage loan originator shall
constitute a violation of the Residential Mortgage License Act of 1987.
(j-2) A violation of any provision of this Article by a title insurance company, title agent, or escrow agent shall constitute a violation
of the Title Insurance Act.
(j-3) A violation of any provision of this Article by a housing counselor shall be referred to the Department of Housing and Urban
Development.
(k) During the existence of the program, the Department shall submit semi -annual reports to the Governor and to the General
Assembly by May 1 and November 1 of each year detailing its findings regarding the program. The report shall include, by county, at
least the following information for each reporting period:
(1) the number of loans registered with the program;
(2) the number of borrowers receiving counseling;
(3) the number of loans closed;
(4) the number of loans requiring counseling for each
of the standards set forth in Section 73;
(5) the number of loans requiring counseling where
the mortgage originator changed the loan terms subsequent to counseling;
(6) the n umber of licensed mortgage brokers and loan
originators entering information into the database;
(7) the number of investigations based on information
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obtained from the database, including the number of licensees fined, the number of licenses suspended, and the number of lice nses
revoked;
(8) a summary of the types of non -traditional
mortgage products being offered; and
(9) a summar y of how the Department is actively
utilizing the program to combat mortgage fraud.
(Source: P.A. 97 -891, eff. 1 -1-13; 98 -1081, eff. 1 -1-15.)
(765 ILCS 77/72)
Sec. 72. Originator; required information. As part of the predatory lending datab ase program, the broker or originator must submit
all of the following information for inclusion in the predatory lending database for each loan for which the originator takes an
application:
(1) The borrower's name, address, social security
number or taxpayer identification number, date of birth, and income and expense information, including total monthly consumer debt,
contained in the mortgage application.
(2) The address, permanent index number, and a
description of the colla teral and information about the loan or loans being applied for and the loan terms, including the amount of the
loan, the rate and whether the rate is fixed or adjustable, amortization or loan period terms, and any other material terms.
(3) The bor rower's credit score at the time of
application.
(4) Information about the originator and the company
the originator works for, including the originator's license number and address, fees being charged, whether the fees are bei ng charge d
as points up front, the yield spread premium payable outside closing, and other charges made or remuneration required by the broker
or originator or its affiliates or the broker's or originator's employer or its affiliates for the mortgage loans.
(5) Information about affiliated or third party
service providers, including the names and addresses of appraisers, title insurance companies, closing agents, attorneys, an d realtors
who are involved with the transaction and the broker or originator and any moneys received from the broker or originator in
connection with the transaction.
(6) All information indicated on the Good Faith
Estimate and Truth in Lend ing statement disclosures given to the borrower by the broker or originator.
(7) Annual real estate taxes for the property,
together with any assessments payable in connection with the property to be secured by the collateral and the proposed monthly
principal and interest charge of all loans to be taken by the borrower and secured by the property of the borrower.
(8) Information concerning how the broker or
originator obtained the client and the name of its referral source, if a ny.
(9) Information concerning the notices provided by
the broker or originator to the borrower as required by law and the date those notices were given.
(10) Information concerning whether a sale and
leaseback is contemplated a nd the names of the lessor and lessee, seller, and purchaser.
(11) Any and all financing by the borrower for the
subject property within 12 months prior to the date of application.
(12) Loan information, including interest rate, term,
purchase price, down payment, and closing costs.
(13) Whether the buyer is a first -time homebuyer or
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refinancing a primary residence.
(14) Whether the loan permits interest only payments.
(15) Whether the loan may resul t in negative
amortization.
(16) Whether the total points and fees payable by the
borrowers at or before closing will exceed 5%.
(17) Whether the loan includes a prepayment penalty,
and, if so, the terms of the penalty.
(18) Whether the loan is an ARM.
All information entered into the predatory lending database must be true and correct to the best of the originator's knowledg e. The
originator shall, prior to closing, correct, update, or amend the data as necessa ry. If any corrections become necessary after the file has
been accessed by the closing agent or housing counselor, a new file must be entered.
(Source: P.A. 97 -891, eff. 1 -1-13; 98 -1081, eff. 1 -1-15.)
(765 ILCS 77/73)
Sec. 73. Standards for cou nseling. A borrower or borrowers subject to this Article shall be recommended for counseling if, after
reviewing the information in the predatory lending database submitted under Section 72, the Department finds the borrower or
borrowers are all first -time homebuyers or refinancing a primary residence and the loan is a mortgage that includes one or more of the
following:
(1) the loan permits interest only payments;
(2) the loan may result in negative amortization;
(3) the total point s and fees payable by the borrower
at or before closing will exceed 5%;
(4) the loan includes a prepayment penalty; or
(5) the loan is an ARM.
(Source: P.A. 95 -691, eff. 6 -1-08.)
(765 ILCS 77/74)
Sec. 74. Counselor; require d information. As part of the predatory lending database program, a counselor must submit all of the
following information for inclusion in the predatory lending database:
(1) The information called for in items (1), (6),
(9), (11), (12), (13 ), (14), (15), (16), (17), and (18) of Section 72.
(2) Any information from the borrower that confirms
or contradicts the information called for under item (1) of this Section.
(3) The name of the counselor and address of the
HUD -approved housing counseling agency that employs the counselor.
(4) Information pertaining to the borrower's monthly
expenses that assists the counselor in determining whether the borrower can afford the loans or loans for which the borrow er is
applying.
(5) A list of the disclosures furnished to the
borrower, as seen and reviewed by the counselor, and a comparison of that list to all disclosures required by law.
(6) Whether the borrower provided tax returns to the
broker or originator or to the counselor, and, if so, who prepared the tax returns.
(7) A statement of the recommendations of the
counselor that indicates the counselor's response to each of the following statements:
(A) The lo an should not be approved due to
indicia of fraud.
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(B) The loan should be approved; no material
problems noted.
(C) The borrower cannot afford the loan.
(D) The borrower does not understand the
transaction.
(E) The borrower does not understand the costs
associated with the transaction.
(F) The borrower's monthly income and expenses
have been reviewed and disclosed.
(G) The rate of the loan is above market rate.
(H) The borrower should seek a competitive bid
from another broker or originator.
(I) There are discrepancies between the
borrower's verbal understanding and the originator's completed form.
(J) The borrower is precipitously close to not
being able to afford the loan.
(K) The borrower understands the true cost of
debt consolidation and the need for credit card di scipline.
(L) The information that the borrower provided
the originator has been amended by the originator.
(Source: P.A. 97 -813, eff. 7 -13-12; 98 -1081, eff. 1 -1-15.)
(765 ILCS 77/76)
Sec. 76. Title insurance company or clos ing agent; required information. As part of the predatory lending database program, a title
insurance company or closing agent must submit all of the following information for inclusion in the predatory lending databa se:
(1) The borrower's name, a ddress, social security
number or taxpayer identification number, date of birth, and income and expense information contained in the mortgage applica tion.
(2) The address, permanent index number, and a
description of the collateral and information about the loan or loans being applied for and the loan terms, including the amo unt of the
loan, the rate and whether the rate is fixed or adjustable, amortization or loan period terms, and any other material te rms.
(3) Annual real estate taxes for the property,
together with any assessments payable in connection with the property to be secured by the collateral and the proposed monthl y
principal and interest charge of all loans to be taken by the b orrower and secured by the property of the borrower as well as any
required escrows and the amounts paid monthly for those escrows.
(4) All itemizations and descriptions set forth in
the RESPA settlement statement including items to be disbur sed, payable outside closing "POC" items noted on the statement, and a
list of payees and the amounts of their checks.
(5) The name and license number of the title
insurance company or closing agent together with the name of the agent actuall y conducting the closing.
(6) The names and addresses of all originators,
brokers, appraisers, sales persons, attorneys, and surveyors that are present at the closing.
(7) The date of closing, a detailed list of all
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notices prov ided to the borrower at closing and the date of those notices, and all information indicated on the Truth in Lending
statement and Good Faith Estimate disclosures.
(Source: P.A. 98 -1081, eff. 1 -1-15.)
(765 ILCS 77/78)
Sec. 78. Exemption. Borrower s applying for reverse mortgage financing of residential real estate including under programs
regulated by the Federal Housing Administration (FHA) that require HUD -approved counseling are exempt from the program and
may submit a HUD counseling certificate to comply with the program. A certificate of exemption is required for recording.
Mortgages secured by non -owner occupied property, commercial property, residential property consisting of more than 4 units, and
government property are exempt but requ ire a certificate of exemption for recording.
Mortgages originated by an exempt person or entity are exempt but require a certificate of exemption for recording.
(Source: P.A. 98 -463, eff. 8 -16-13; 98 -1081, eff. 1 -1-15.)
(765 ILCS 77/80)
Sec. 80. Predatory Lending Database Program Fund. The Predatory Lending Database Program Fund is created as a special fund in
the State treasury. Subject to appropriation, moneys in the Fund shall be appropriated to the Illinois Housing Development Au thority
for the purpose of making grants for HUD -approved counseling agencies participating in the Predatory Lending Database Program to
assist with implementation and development of the Predatory Lending Database Program.
(Source: P.A. 98 -1081, eff. 1 -1-15.)
(765 ILCS 77/Art. 4 heading)
ARTICLE 4
EFFECTIVE DATE
(Source: P.A. 94 -280, eff. 1 -1-06.)
(765 ILCS 77/99)
Sec. 99. This Act takes effect on October 1, 1994.
(Source: P.A. 88 -111.)
