SB2677 Summary

• Establishes a predatory lending database program in Cook County beginning July 1, 2008, expanded to Kane, Peoria, and Will counties effective July 1, 2010, to track and monitor mortgage applications for predatory lending practices.

• Requires brokers and originators to submit mortgage application information to the database within 10 business days, with the Department comparing data against counseling standards and issuing recommendations for borrower counseling within 7 business days.

• Mandates borrowers receive HUD-approved counseling if recommended by the Department, with counseling costs up to $300 paid by the broker or originator; borrowers cannot waive counseling and cannot proceed with the loan transaction until either counseling is completed or the Department determines counseling is not recommended.

• Requires title insurance companies or closing agents to obtain and attach a certificate of compliance or exemption to the mortgage before recording; makes lis pendens filings after July 1, 2016 subject to electronic filing with the Department and unrecordable without a recorded certificate of service.

• Designates database information as confidential and not subject to Freedom of Information Act disclosure; establishes violations as unlawful consumer practices and subject to enforcement under the Residential Mortgage License Act and Title Insurance Act.