If you are a mortgage broker or banker in the state of Illinois I URGE you to please write your representative TODAY regarding HB1478. (Commonly known as HB4050 on steroids!) It is unfair for Banks to not have to follow the same rules as what they are asking of the mortgage bankers and brokers. More than half of the home loans are originated by brokers and bankers. Mortgage brokers and bankers are REQUIRED BY LAW to be licensed in the state of Illinois. I have known several and heard several more stories of individuals that could not pass the licensing exams, so they went to work for a Bank. (How is that in the best interest of the consumer?) I know my company sells to these banks. The banks will be excluded from HB1478, however we will not as a Mortgage Banker be able to originate these loans. Please look for your representative at http://www.house.gov/writerep. If you would like more information on this bill you can visit www.iamb.org. If this bill passes (voting on Friday) there will be no stopping HB4050!
Below is a sample letter....it does not have to be formal! Just cut, copy and paste and send to your representatvie TODAY!
(Simple Sample letter)
Senator _______________,
My name is _______________________and I am a resident of________________________. I wanted to let you know that I am very much against HB1478 and I hope you feel the same way. I have been in the mortgage business for _____ years and I work at a very reputable mortgage banking firm. This bill does not allow for a level playing field. A bank could do certain loans that we as a mortgage banker or mortgage broker could not. Also, I could be held personally responsible for my actions, but the loan officer at the bank would not. Competition is a great thing, but the rules must be the same for everyone.
I believe our industry is doing many, many things correct and well. I believe it was 2005 when nearly 70% of all home mortgages in IL were obtained from mortgage bankers and brokers.
(More detailed)
Dear Representative
As a lender in the state of Illinois, I am writing this letter to oppose HB1478 which goes before you on Friday, May 18th. Although this bill has many good things attached to it, there are 2 items I admittedly oppose to, which makes this bill something you need to vote against. The following is a synopsis of the part of the bill.
It Creates the Predatory Home Loan Practices Act. It prohibits various practices and charges in connection with home loans made to persons with respect to their primary residence & prohibits the imposition of prepayment penalties, flipping of loans, and lender financing of credit insurance. Imposes limitations on high-cost loans. It Prohibits loans unless the lender reasonably believes that the borrower is able to make scheduled payments to repay the loan without respect to the borrower's equity in the property and authorizes a borrower to obtain damages for violations of the Act.
But there are 2 areas that need to be addressed:
•1) This is a bill that excludes banks from this act. It is designed for mortgage brokers and mortgage brokers alone. This is exclusionary and fosters prejudice. The majority of loans in this country are done by mortgage brokers. Banks should not be excluded from this bill.
•2) There is a provision in this bill that requires all arm loans to be fully documented by tax returns and supporting documents. This immediately ceases all low documented loans, stated loans and no documentation loans. Although on the surface this may look good to reduce foreclosures, this ties the hands of lenders to reduce the amount of paperwork for those who either can't produce them for one reason or another or limits lenders who have an automated approval to reduce documentation.
Based on this information, I urge you to " VOTE NO" to HB1478 on Friday.
Thanks you for your consideration and support in this matter.
Thank you for your time,
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