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URGENT - IMMEDIATELY ACT!!!!! - - 2 THINGS YOU NEED TO KNOW!!!!

By
Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

Need to act by Monday, May 21rst, 2007.  HB 4050 has the last day for commenting as May 21rst for public comment...

TWO MAJOR THINGS:

1)  Summary of HB 4050 - Loan counseling for all 1-4 unit properties, unless the lender is an federally exempt lender.  If the lender is not federally exempt, then all financing in Cook County meeting any of the following will require mandatory counseling, as well as review of the terms by the "STATE OF ILLINOIS:"

  • Stated Income loans 
  •  Arms less than 5 years
  • Mortgage that are interest only 
  • Option ARMs 
  • All Neg Am Loans 
  • 100% financing
  • Prepayment loans

This applies for first-time home buyers, for home buyers that have not made a purchase in the last three years, and for all re-finances.

tHERE ARE 2 MAIN CONCERNS

1) Homebuyers will have choices eliminated.  All lenders whom are licensed by the State of Illinois now have to go through a higher criteria for doing a loan in Cook County than lenders who are exempt from licensing.  So...the federal lenders lack the training, but get to lend to consumers without the training that the state requires.

The Department has filed nw rules pertaining to the Illinois predatory Lending Database Pilot program, also known has HB4050. There is a 45 day comment period beginning April 6, 2007 (contingent upon publication in the Illinois Register) during which industry groups, advocates and other members of the public may file comments or request a public hearing. The Department will review all of the comments submitted. Therefore interested parties may submit written comments to:
           
            Craig Cellini
            Rule Administrator
            Illinois Department of Financial and
            Professional Regulation
            320 W. Washington
            Springfield IL 62786

Comments must be submitted on or before May 21, 2007. To view a copy of the proposed 4050 Rule please click here.

 

2)  MOST IMPORTANTLY - This program is being administered by the Illinois Department of Professional and Financial Regulation.  LOOK WHAT THE DEPARTMENT JUST DID FOR EVERY REAL ESATE PROFESSIONAL IN THE STATE OF ILLINOIS.

 

A breach of security occurred on a State of Illinois server containing personal information of licensees of IDFPR. This was confirmed on May 3, 2007 and immediately referred it to State and Federal law enforcement authorities

This matter involves criminal conduct, and law enforcement authorities asked us to delay notification to affected licensees and the General Assembly until now so that notification would not interfere with their ongoing criminal investigation.  We are notifying the General Assembly and the affected licensees simultaneously.   In addition to notifying them, we are providing each licensee with information and the tools they need to help protect themselves from being victims of identity theft.

At present, there is no indication that the unauthorized access to the server resulted in the theft of any personal identifying information.  A preliminary investigation revealed that the data on the server was compromised sometime in January 2007.  Since uncovering the breach, the compromised server has been isolated and all other like systems are being thoroughly checked for breaches of security.


 

Experian

 

Equifax

 TransUnion

State of Illinois

Even if you do not find any signs of fraud on your credit reports, we recommend that you check your credit report every three months for the next year.  For more information on identity theft, we suggest that you visit the Web site of the Federal Trade Commission at www.consumer.gov/idtheft.  For any other questions or concerns, please contact IDFPR at 1-800-532-8785.

In other words....we're all at jeapardy because of the ineptness of this department.  Now they want to oversee the adminstration of this program.....Comment by tomorrow.....

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Comments (11)

Dave Cheatham
INC Financial - Bartlett, IL

If this goes through we will have a bigger issue on our hands.  I would be very mad if the government is making me be educated. 

This law is just wrong and does not help fight what it is trying to do.

May 20, 2007 03:35 PM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
I agree Dave...the government just needs to prosecute the criminals....not install outrageous, unfair laws.
May 20, 2007 04:09 PM
Anonymous
Kim Murphy
Thank you for posting this to remind everyone to let our voices be heard!  This has to be stopped!
May 20, 2007 04:35 PM
#3
Randal Keberlein
Weichert Realtors, Precision - Kenosha, WI

I get nervous every time that the Government tries to "Protect" us. 

May 29, 2007 02:27 PM
Kris Krajecki
Kris Krajecki - FOX VALLEY MORTGAGE - Huntley, IL - Huntley, IL
Mortgage Broker Huntley, IL
...Because this worked so well the FIRST time!!!
May 29, 2007 03:38 PM
Anonymous
Anonymous

One of my AE's sent this information which clearly demonstrates the cause/effect relationship the legislature claims is not present.  I would very much like to see a similar study of unemployment statistics comparing the state in general to the areas where the foreclosures are taking place.  If anyone has that information please let me know.

 Thank you - Greg Z

Statistical Data

Jeff Metcalf, the owner of Record Information Services for over 15 years, compiled Cook County foreclosure numbers that originated with mortgage brokers and those that originated with banks, finance companies, credit unions, s&l's and owners financing.  According to Record Information Services (RIS) mortgage brokers originate 55% of the loans in Cook County.  Also according to RIS, the number of foreclosures in Cook County originated by mortgage brokers versus everyone else is listed below

  

Year                Mortgage broker        Everyone else

'04                   56.57%                       43.44%

'05                   57.02%                       42.98%

'06                   55.66%                       44.34%                        

'07                   50.22%                       49.78%                       

The number of loans that are in Cook County that are in foreclosure that are sub prime loans and traditional loans;

Year                Sub Prime                   Traditional

'04                   21%                            79%

'05                   22%                            78%

'06                   16%                            84%

'07                   15%                            85%

If mortgage brokers were the main cause of the foreclosures than the percentage of foreclosures originated by mortgage brokers would be well over 80% and that is clearly not the case.  Brokers originate 55% of the loans in Cook County and, on average, 55% of the loans in foreclosure are originated my mortgage brokers.  This means the other 45% are originated by banks, savings and loans and credit unions.


 

 

Jun 01, 2007 02:25 PM
#6
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Awesome Greg...thanks.  This will be useful for any other charges the state tries to put forth....

Jun 04, 2007 02:46 PM
Randy Lyon
Kettley and Company - Oswego, IL

Larry,

Our governor and his budget cutting has moved the realtors and lenders from OBRE  to IDPFR. That was mistake number one. Just this week end he held the state legislature over into the longest overtime session without a budget ever. Two thirds of the legislators didn't even show up. That tells me that the legislators in Springfield feel that this ship is being steered into the reef.

Jul 30, 2007 04:19 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Yeah...I know Randy....this is ridicuous.  Our governor is driving a ship into a reef.....if 2/3rds are absent, then even his own people have lost trust in him.
Jul 31, 2007 02:20 PM
Anonymous
C. Donovan
Even Pres. Bush said that people should be reading their mortgage documents better to help prevent foreclosures.  If the pilot program helps them to do that and it reduces foreclosures wha't wrong with that?  The counseling may delay a broker closing a loan but the broker isn't stuck with the vacant house in his neighborhood or on the bank's REO list after he/she sells the loan.
Sep 26, 2007 08:45 AM
#10
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Good words C. Donovan...thanks for writing
Sep 27, 2007 02:14 AM