Bill Text: IL HB2717 | 2023-2024 | 103rd General Assembly | Chaptered
Bill Title: Amends the Mortgage Escrow Account Act. Provides that a mortgage lender that complies with the escrow account requirements in Title 12 CFR Part 1026 for a mortgage loan that is a higher-priced mortgage loan is deemed to be in compliance with a provision regarding notification by a mortgage lender to a borrower about terminating or continuing such escrow account. Provides that the borrower shall not have the right to terminate any escrow account arrangement in conjunction with a mortgage loan that is a higher-priced mortgage loan unless the borrower has met all of the conditions for cancellation of an escrow account for a higher-priced mortgage loan in Title 12 CFR Part 1026. Effective immediately.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2023-07-28 - Public Act . . . . . . . . . 103-0322 [HB2717 Detail]
Download: Illinois-2023-HB2717-Chaptered.html
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| Public Act 103-0322 | ||||
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AN ACT concerning civil law.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Mortgage Escrow Account Act is amended by | ||||
changing Sections 5 and 7 as follows:
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(765 ILCS 910/5) (from Ch. 17, par. 4905)
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Sec. 5.
(a) When the mortgage is reduced to 65% of its | ||||
original amount by
payments of the borrower, timely made | ||||
according to the provisions of the
loan agreement secured by | ||||
the mortgage, and the borrower is otherwise not
in default on | ||||
the loan agreement, the mortgage lender must notify the | ||||
borrower
that he may terminate such escrow account or that he | ||||
may elect to continue
it until he requests a termination | ||||
thereof, or until the mortgage is paid
in full, whichever | ||||
occurs first. | ||||
(b) Notwithstanding the requirements in subsection (a), a | ||||
mortgage lender that complies with the escrow account | ||||
requirements in Title 12 CFR Part 1026, as amended, for a | ||||
mortgage loan that is a higher-priced mortgage loan, as | ||||
defined in Title 12 CFR Part 1026, as amended, is deemed to be | ||||
in compliance with subsection (a).
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(Source: P.A. 79-625.)
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(765 ILCS 910/7) (from Ch. 17, par. 4907)
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Sec. 7.
The borrower shall not have the right to terminate | ||
any such arrangement
under Section 5 in conjunction with | ||
mortgages insured, guaranteed, supplemented,
or assisted by | ||
the State of Illinois or the federal government that require
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an escrow arrangement for their continuation. The borrower | ||
shall not have the right to terminate any such arrangement | ||
under Section 5 in conjunction with a mortgage loan that is a | ||
higher-priced mortgage loan as defined in Title 12 CFR Part | ||
1026, as amended, unless the borrower has met all of the | ||
conditions for cancellation of an escrow account for a | ||
higher-priced mortgage loan in Title 12 CFR Part 1026, as | ||
amended.
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(Source: P.A. 79-625.)
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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