Illinois 95th Regular Session Status: Passed Senate

SB 1347 — FAIR LEN-HIG RISK HOME ACT-DEF

Last action — Session Sine Die

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 95th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Amends the Illinois Fairness in Lending Act. Provides that "equity stripping" and "loan flipping" shall only include loans that qualify as high risk home loans. Amends the High Risk Home Loan Act. Provides that "points and fees" does not include: (i) fees paid to the Veterans Administration required by law; (ii) fees paid to the Federal Housing Administration required by law; (iii) fees paid for private mortgage insurance; or (iv) all fees paid to a mortgage broker by a lender if the loan is less than $50,000, or 50% of fees paid to a mortgage broker by a lender if the loan is between $50,000 and $100,000.

Bill Text

What changed in the latest version

83 added · 155 removed

Plain-language change summary

The amendments to SB 1347 clarify and streamline definitions related to high-risk home loans, focusing specifically on who qualifies for these loans and what constitutes "points and fees." Notably, terms such as "equity stripping" and "loan flipping" are now explicitly tied to high-risk home loans, which helps in regulating these practices. This change is significant because it aims to protect consumers by ensuring they are informed about the terms of their loans, ultimately promoting more responsible lending practices.

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*LRB09504890LCT24954b* SB1347 95TH GENERAL ASSEMBLY State of Illinois and 2008 SB1347 Introduced 2/9/2007, by Sen.
SB1347 Engrossed LRB095 04890 LCT 24954 b AN ACT concerning business.
William R.
Haine SYNOPSIS AS INTRODUCED:
ILCS 120/2 from Ch.
17, par.
852 ILCS 137/10 Amends the Illinois Fairness in Lending Act.
Provides that "equity stripping" and "loan flipping" shall only include loans that qualify as high risk home loans.
Amends the High Risk Home Loan Act.
Provides that "points and fees" does not include:
(i) fees paid to the Veterans Administration required by law;
(ii) fees paid to the Federal Housing Administration required by law;
(iii) fees paid for private mortgage insurance;
or (iv) all fees paid to a mortgage broker by a lender if the loan is less than $50,000, or 50% of fees paid to a mortgage broker by a lender if the loan is between $50,000 and $100,000.
LRB095 04890 LCT 24954 b A BILL FOR SB1347 LRB095 04890 LCT 24954 b AN ACT concerning business.
The Illinois Fairness in Lending Act is amended by changing Section 2 as follows:
(815 ILCS 120/2) (from Ch.
17, par.
852) Sec.
2.
As used in this Act:
(a) "Financial Institution" means any bank, credit union, insurance company, mortgage banking company, savings bank, savings and loan association, or other residential mortgage lender which operates or has a place of business in this State.
(b) "Person" means any natural person.
(c) "Varying the terms of a loan" includes, but is not limited to the following practices:
(1) Requiring a greater than average down payment than is usual for the particular type of a loan involved.
(2) Requiring a shorter period of amortization than is usual for the particular type of loan involved.
(3) Charging a higher interest rate than is usual for the particular type of loan involved.
(4) An underappraisal of real estate or other item of property offered as security.
(d) "Equity stripping" means to assist a person in SB1347 - 2 - LRB095 04890 LCT 24954 b obtaining a loan secured by the person’s principal residence for the primary purpose of receiving fees related to the financing when (i) the loan decreased the person’s equity in the principal residence and (ii) at the time the loan is made, the financial institution does not reasonably believe that the person will be able to make the scheduled payments to repay the loan.
"Equity stripping" shall only include loans that qualify as "high risk home loans" as defined in the High Risk Home Loan Act.
"Equity stripping" does not include reverse mortgages as defined in Section 5a of the Illinois Banking Act, Section 1-6a of the Illinois Savings and Loan Act of 1985, or subsection (3) of Section 46 of the Illinois Credit Union Act.
(e) "Loan flipping" means to assist a person in refinancing a loan secured by the person’s principal residence for the primary purpose of receiving fees related to the refinancing when (i) the refinancing of the loan results in no tangible benefit to the person and (ii) at the time the loan is made, the financial institution does not reasonably believe that the refinancing of the loan will result in a tangible benefit to the person.
"Loan flipping" shall only include loans that qualify as "high risk home loans" as defined in the High Risk Home Loan Act.
(f) "Principal residence" means a person’s primary residence that is a dwelling consisting of 4 or fewer family units or that is in a dwelling consisting of condominium or cooperative units.
SB1347 - 3 - LRB095 04890 LCT 24954 b (Source:
P.A.
93-561, eff.
1-1-04.) Section 10.
Treasury securities having comparable periods of maturity to the loan maturity as of the fifteenth day of the month immediately preceding the month in which the application for the loan is received by the lender or SB1347 - 4 - LRB095 04890 LCT 24954 b (ii) the total points and fees payable by the consumer at or before closing will exceed the greater of 5% of the total loan amount or $800.
Treasury securities having SB1347 Engrossed - 2 - LRB095 04890 LCT 24954 b comparable periods of maturity to the loan maturity as of the fifteenth day of the month immediately preceding the month in which the application for the loan is received by the lender or (ii) the total points and fees payable by the consumer at or before closing will exceed the greater of 5% of the total loan amount or $800.
the premium of any single premium credit life, credit disability, credit unemployment, or any other life or health insurance that is financed directly or indirectly into the loan;
the premium of any single SB1347 Engrossed - 3 - LRB095 04890 LCT 24954 b premium credit life, credit disability, credit unemployment, or any other life or health insurance that is financed directly or indirectly into the loan;
and compensation paid directly or SB1347 - 5 - LRB095 04890 LCT 24954 b indirectly to a mortgage broker, including a broker that originates a loan in its own name in a table-funded transaction, not otherwise included in 12 CFR 226.4.
and compensation paid directly or indirectly to a mortgage broker, including a broker that originates a loan in its own name in a table-funded transaction, not otherwise included in 12 CFR 226.4.
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(iii) fees paid for private mortgage insurance;
or (iii) fees paid to the United States Department of Agriculture’s Rural Development Loan Program required by law.
or (iv) all fees paid to a mortgage broker by a lender if the loan is less than $50,000, or 50% of fees paid to a mortgage broker by a lender if the loan is between $50,000 and $100,000.
"Servicer" means any entity chartered under the Illinois Banking Act, the Savings Bank Act, the Illinois Credit Union Act, or the Illinois Savings and Loan Act of 1985 and any person or entity licensed under the Residential Mortgage License Act of 1987, the Consumer Installment Loan Act, or the Sales Finance Agency Act who is responsible for the collection or remittance for, or has the right or obligation to collect or remit for, any lender, note owner, or note holder or for a licensee’s own account, of payments, interest, principal, and trust items (such as hazard insurance and taxes on a residential mortgage loan) in accordance with the terms of the residential mortgage loan, including loan payment follow-up, delinquency loan follow-up, loan analysis, and any notifications to the borrower that are necessary to enable the SB1347 - 6 - LRB095 04890 LCT 24954 b borrower to keep the loan current and in good standing.
"Servicer" means any entity chartered under the Illinois Banking Act, the Savings Bank Act, the Illinois Credit Union Act, or the Illinois Savings and Loan Act of 1985 and any person or entity licensed under the Residential Mortgage License Act of 1987, the Consumer Installment Loan Act, or the Sales Finance Agency Act who is responsible for the collection or remittance for, or has the right or obligation to collect or remit for, any lender, note owner, or note holder or for a licensee’s own account, of payments, interest, principal, and trust items (such as hazard insurance and taxes on a residential mortgage loan) in accordance with the terms of the residential mortgage loan, including loan payment follow-up, delinquency loan follow-up, loan analysis, and any SB1347 Engrossed - 4 - LRB095 04890 LCT 24954 b notifications to the borrower that are necessary to enable the borrower to keep the loan current and in good standing.
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Action History

  1. Session Sine Die

  2. Rule 19(a) / Re-referred to Rules Committee

  3. Final Action Deadline Extended-9(b) May 31, 2007

  4. Committee Deadline Extended-Rule 9(b) May 25, 2007

  5. Assigned to Executive Committee

  6. Referred to Rules Committee

  7. First Reading

  8. Chief House Sponsor Rep. Jim Watson

  9. Placed on Calendar Order of First Reading

  10. Arrived in House

  11. Third Reading - Passed; 054-000-000

  12. Placed on Calendar Order of 3rd Reading

  13. Senate Floor Amendment No. 2 Adopted; Haine

  14. Recalled to Second Reading

  15. Added as Chief Co-Sponsor Sen. Jacqueline Y. Collins

  16. Rule 2-10 Third Reading Deadline Established As May 31, 2007

  17. Senate Floor Amendment No. 2 Recommend Do Adopt Financial Institutions; 008-000-000

  18. Added as Co-Sponsor Sen. Pamela J. Althoff

  19. Senate Floor Amendment No. 2 Rules Refers to Financial Institutions

  20. Placed on Calendar Order of 3rd Reading March 28, 2007

  21. Second Reading

  22. Senate Floor Amendment No. 2 Referred to Rules

  23. Senate Floor Amendment No. 2 Filed with Secretary by Sen. William R. Haine

  24. Placed on Calendar Order of 2nd Reading March 20, 2007

  25. Do Pass as Amended Financial Institutions; 007-000-002

  26. Senate Committee Amendment No. 1 Adopted

  27. Postponed - Financial Institutions

  28. Senate Committee Amendment No. 1 Postponed - Financial Institutions

  29. Senate Committee Amendment No. 1 Rules Refers to Financial Institutions

  30. Senate Committee Amendment No. 1 Referred to Rules

  31. Senate Committee Amendment No. 1 Filed with Secretary by Sen. William R. Haine

  32. Assigned to Financial Institutions

  33. Referred to Rules

  34. First Reading

  35. Filed with Secretary by Sen. William R. Haine

Sponsors

  • William R. Haine · Cosponsor

Sponsorship breakdown

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0 sponsors · 1 co-sponsors · 182 not signed on

Sponsors (0)

None.

Co-sponsors (1)

  • William R. Haine

Not signed on (182)

182 members have not signed on to this bill.

Show all 182 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Third Reading

Passed 54 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 45004
Democrat 8001
Republican 1000
Total 54005
% of votes cast 92%0%0%8%
How each member voted (59)
Member Party Vote
Halvorson — Yea
Hultgren — Yea
Noland — Yea
Luechtefeld — Yea
Maloney — Yea
Meeks — Yea
Millner — Yea
Peterson — Yea
Sieben — Yea
Silverstein — Yea
Brady — Yea
Viverito — Yea
Wilhelmi — Yea
Sullivan — Yea
Munoz — Yea
Cullerton — Yea
Jacobs — Yea
Watson — Yea
Jones, J. — Yea
Clayborne — Yea
Crotty — Yea
DeLeo — Yea
Forby — Yea
Garrett — Yea
Haine — Yea
Hendon — Yea
Demuzio — Yea
Schoenberg — Not Voting
Trotter — Not Voting
Dahl — Not Voting
Dillard — Yea
Kotowski — Yea
Pankau — Yea
Radogno — Yea
Raoul — Yea
Righter — Yea
Risinger — Yea
Ronen — Yea
Rutherford — Yea
Sandoval — Yea
Lauzen — Yea
Link — Yea
Althoff — Yea
Martinez — Yea
Bomke — Yea
Bond — Yea
Burzynski — Yea
Cronin — Not Voting
Frerichs — Yea
David Koehler Democrat Yea
Don Harmon Democrat Yea
Emil Jones, III Democrat Yea
Eva-Dina Delgado Democrat Yea
Kimberly A. Lightford Democrat Yea
Lakesia Collins Democrat Yea
Laura M. Murphy Democrat Yea
Linda Holmes Democrat Not Voting
Mattie Hunter Democrat Yea
Dave Syverson Republican Yea

Official roll call →

Subjects

finance housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 1347 do?
Amends the Illinois Fairness in Lending Act. Provides that "equity stripping" and "loan flipping" shall only include loans that qualify as high risk home loans. Amends the High Risk Home Loan Act. Provides that "points and fees" does not include: (i) fees paid to the Veterans Administration required by law; (ii) fees paid to the Federal Housing Administration required by law; (iii) fees paid for private mortgage insurance; or (iv) all fees paid to a mortgage broker by a lender if the loan is less than $50,000, or 50% of fees paid to a mortgage broker by a lender if the loan is between $50,000 and $100,000.
Who sponsors SB 1347?
SB 1347 is sponsored by William R. Haine.
What is the current status of SB 1347?
This bill died with 95th Regular Session. It reached “Passed Senate” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track SB 1347?
Track SB 1347 free on One Click Politics — get push/email alerts when it moves.

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