COOK COUNTY IL PREDATORY LENDING DATABASE PROGRAM Begins July 1, 2008!
CERTAIN BUYERS REQUIRE SPECIAL COUNSELING EFFECTIVE NEXT MONTH - NEW COOK COUNTY FILING REQUIREMENTS FOR ALL MORTGAGES!
Stricter lending requirements will begin in Cook County IL effective July 1st, for first-time homebuyers of most owner-occupied property. Those taking types of loans considered higher risk by the State of Illinois will have to complete special loan counseling, offered by the U.S. Department of Housing and Urban Development (HUD), before they can close on their loan.
ALL mortgage loans recorded in Cook County, regardless of buyer status, must have a competed Certificate of Compliance with this program, or a Certificate of Exemption, to assure compliance with the new state guidelines for selected first-time-buyer counseling.
Special Mortgage Counseling will be required if -
The loan is offered by a Mortgage Broker or Loan Originator in Illinois, licensed by the Illinois Department of Financial and Professional Regulation (loans directly from banks are exempt, since loan officers at banks are not required to be licensed in this manner), and -
The borrowers are purchasing a one-to-four unit residence which they will occupy as owners, and they are first-time homebuyers.
The counseling program would only apply to loans with one or more of the following characteristics -
The loan permits interest-only payments, or
The loan could result in negative amortization, or
The total points or fees payable at closing by the borrower will exceed 5% of the loan amount, or
The loan features a pre-payment penalty, or
The loan is an Adjustable Rate Mortgage (ARM), where the first rate adjustment occurs within the first three years of the loan term.
Mortgage Brokers, Independent Loan Originators, and Real Estate Professionals are being trained on the new Predatory Lending program in advance of its July 1, 2008 effective date.
Here is a fact sheet summarizing the new program's requirements and other information.
DEAN MOSS & DEAN'S TEAM CHICAGO
