Illinois Administrative Code

Section 1050.1120 Description of Required Documentation A licensee shall provide an applicant, at the time of application, with an accurate and complete description of the exhibits and documentation the applicant is reasonably required to provide in order for the licensee to unde…

Section 1050.1130 Maintenance of Records (Repealed) (Source: Repealed at 15 Ill. Reg. 8580, effective May 28, 1991)

Section 1050.1140 Loan Application Procedures Loan application procedures shall comply with the Act as well as applicable Federal and State law and regulations, including, but not limited to, the Consumer Credit Protection Act (15 USC 1601 et seq.), including Title VII (Equal Cre…

Section 1050.115 Administrative Decision (Repealed) (Source: Repealed at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1150 Copies of Signed Documents The customer shall be provided, at the time of signing, a copy of each document he or she signs, except for releases for credit information and verifications of employment, bank accounts and current mortgage history. Forms furnished fo…

Section 1050.1160 Confirmation of Statements Upon a customer's written request, a licensee shall, within 3 days after receiving the request, confirm in writing any specific oral statements or promises made to the customer or the customer's agent or attorney. (Source: Amended at 2…

Section 1050.1170 Cancellation of Application If a residential mortgage loan applicant delivers to a licensee written cancellation of his or her application on the same day application was received by the licensee, the licensee shall refund all sums paid by the applicant, except …

Section 1050.1175 Loan Log a) Broker/Origination Loan Log. Each licensee engaged in loan brokerage or loan origination shall maintain a Broker/Origination Loan Log that contains the following for each loan application received, except that a Broker/Origination Log for reverse mor…

Section 1050.1176 Record Retention a) Record Retention. Pursuant to Section 2-4(c) of the Act, each licensee shall retain all records prepared or received in the course of its residential mortgage business for 36 months. 1) For records pertaining to the activities of loan brokeri…

Section 1050.1177 Required Loan Application File Documents For licensees engaged in loan brokering or originating, each licensee shall maintain a loan application file for each loan application. Each loan application file shall include: a) the Loan Brokerage Agreement and Loan Br…

Section 1050.1180 Ability to Repay A lender shall not make a high risk home loan if the lender does not believe, at the time the loan is consummated, that the borrower or borrowers will be able to make the scheduled payments to repay the obligation based upon a consideration of t…

Section 1050.1185 Verification of Ability to Pay Loan The lender shall verify the borrower's ability to repay the loan in the case of high risk home loans. The verification shall require, at a minimum, the following: a) The borrower prepares and submits to the lender a personal i…

Section 1050.1186 Fraudulent or Deceptive Practices No lender shall employ fraudulent or deceptive acts or practices in the making of a high risk home loan, including deceptive marketing and sales efforts. (Source: Amended at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1187 Prepayment Penalty No lender shall make a high risk home loan that includes a penalty provision for payment made: a) after the expiration of the 36 month period following the date the loan was made; or b) that is more than: 1) 3% of the total loan amount, if the…

Section 1050.120 Assisting (Repealed) (Source: Repealed at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1200 High Risk Home Loan Lending Practices; Applicability Pursuant to Section 150 of the High Risk Home Loan Act [815 ILCS 137/150], Section 1050.1250, to the extent it applies to high risk home loans, and Sections 1050.1260, 1050.1270, 1050.1272, 1050.1275, 1050.127…

Section 1050.1210 Notice to Joint Borrowers Any notice required by this Subpart to be given to a residential mortgage loan applicant, also referred to as "borrower" or "customer", needs be given only to any one of any joint applicants, borrowers or customers. (Source: Amended at …

Section 1050.1220 Inaccuracy of Disclosed Information If any information disclosed in accordance with this Part is subsequently rendered inaccurate as a result of any act or occurrence beyond the control of any party to the transaction, the inaccuracy shall not constitute a viola…

Section 1050.1230 Changes Affecting Loans in Process (Repealed) (Source: Repealed at 41 Ill. Reg. 12405, effective October 6, 2017)

Section 1050.1240 Prohibition of Unauthorized Lenders With respect to loans secured by mortgages on residential real estate located in the State of Illinois, no licensee shall knowingly utilize the services of any loan broker or lender, other than a licensee or an entity exempt f…

Section 1050.125 Commissioner (Repealed) (Source: Repealed at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1250 Good Faith Requirements a) For the purpose of this Part, "good faith" means honesty in fact in the conduct of the transaction. b) Any disclosure or action required by the Act or this Part shall be made in good faith. c) A licensee shall not accept a fee or charg…

Section 1050.1260 Pre-paid Insurance Products and Warranties No lender shall make a high risk home loan that finances a single premium credit life, credit disability, credit unemployment or any other life or health insurance, directly or indirectly. Insurance calculated and paid …

Section 1050.1270 Refinancing Prohibited in Certain Cases No lender shall refinance any high risk home loan, if the refinancing charges additional points and fees, within a 12 month period after the original loan agreement was signed, unless the refinancing results in a financial…

Section 1050.1272 Balloon Payments No lender shall make a high risk home loan that contains a scheduled final payment that is more than twice as large as the average of earlier scheduled monthly payments unless the balloon payment becomes due and payable at least 15 years after t…

Section 1050.1275 Financing of Certain Points and Fees No lender shall make a high risk home loan if that loan finances points and fees in excess of 6% of the total loan amount. (Source: Amended at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1276 Payments to Contractors No lender shall make a payment of any proceeds of a high risk home loan to a contractor under a home improvement contract other than: a) by instrument payable to the borrower or payable jointly to the borrower and the contractor; or b) at…

Section 1050.1277 Negative Amortization Other than a loan secured only by a reverse mortgage, no lender shall make a high risk home loan with terms under which the outstanding balance will increase at any time over the course of the loan because the regular periodic payments do n…

Section 1050.1278 Negative Equity No lender shall make a high risk home loan when the loan amount exceeds the value of the property securing the loan plus reasonable closing costs not to exceed 5% of the total loan amount. (Source: Amended at 29 Ill. Reg. 14808, effective Septemb…

Section 1050.1280 Counseling Prior to Perfecting Foreclosure Proceedings a) In the event that a high risk home loan becomes delinquent by more than 30 days, the servicer shall send a notice advising the borrower that he or she may wish to seek consumer credit counseling. b) The n…

Section 1050.130 Control (Repealed) (Source: Repealed at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1305 Approval Notice (Repealed) (Source: Repealed at 41 Ill. Reg. 12405, effective October 6, 2017)

Section 1050.1310 Inconsistent Conditions Prohibited No residential mortgage loan commitment shall contain conditions inconsistent with those required by this Part in effect at the time of application, unless those conditions are less onerous to the borrower. (Source: Amended at …

Section 1050.1315 Avoidance of Commitment If a residential mortgage loan applicant and the subject residential real estate meet a licensee's normal standards, the licensee shall not refuse to make a residential mortgage loan to the applicant in order to avoid complying with terms…

Section 1050.132 Conviction or Convicted (Repealed) (Source: Repealed at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1320 Charges to Seller a) Except for FHA-insured or VA-guaranteed residential mortgage loans, no licensee shall: 1) impose any charges upon a seller under a borrower's purchase contract; 2) condition any commitment for a residential mortgage loan upon the agreement o…

Section 1050.1325 Intentional Delay Any licensee that intentionally delays the processing of an application during periods of interest rate fluctuations so that the delay causes a borrower to incur higher costs regarding a residential mortgage loan shall be liable to the borrower…

Section 1050.1330 No Duplication to Borrower of Seller's Costs No licensee may require a borrower to furnish, or charge a borrower for, items that are inconsistent with the licensee's usual standards for residential mortgage loans. Those items may include, but are not limited to,…

Section 1050.1335 Fees and Charges a) Except as prohibited by federal statute or regulation, a licensee shall not require a borrower to pay any fees or charges prior to the loan closing, except charges to be incurred by the licensee on behalf of the borrower for services from thi…

Section 1050.1340 Refunds on Failure to Close If a residential mortgage loan is not closed, all the licensee's charges as described in Section 1050.1335(a)(1) shall be refunded to the borrower, except: a) To the extent a written agreement between the borrower and licensee or a wr…

Section 1050.1345 Representative at Closing No licensee may require a borrower to be present personally at the closing of a residential mortgage loan, if the borrower is willing to execute all the loan documents in advance and will be represented at the closing by an attorney. A …

Section 1050.135 Document (Repealed) (Source: Repealed at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1350 Compliance with Other Laws Commitment and closing procedures, including those involving TILA-RESPA Intergrated Disclosures set forth at 12 CFR 1024 (2017) and 12 CFR 1026 (2017), of a licensee shall comply with applicable Federal and State statutes and regulatio…

Section 1050.1355 Failure to Close – Disclosure If a residential mortgage loan fails to close within a specified commitment period, the licensee shall provide detailed written notification, in plain English, to the applicant as to why the residential mortgage loan failed to close…

Section 1050.1360 Escrow Account Agreements at Closing a) If the mortgage is not FHA-insured or VA-guaranteed and relates to the purchase of owner-occupied, single-family security real estate: 1) A document shall be executed by the residential mortgage loan applicant at closing t…

Section 1050.140 Employee (Repealed) (Source: Repealed at 29 Ill. Reg. 14808, effective September 26, 2005)

Section 1050.1410 General The exemption provision of Section 1-4(d) of the Act shall be construed to avoid duplication of licensing and regulatory supervision of the same or similar activity by State and Federal agencies. To the extent that the specific conduct or business activi…