SB268 which passed the Senate as Foreclosure Assistance, is in the House of Representatives. The foreclosure assistance has been gutted from the bill and was amended with the language from HB705, which is the expansion of the 1167 Counseling to Peoria, Will and Kane counties. Well, they have done it again with Amendment #2, which expands the counseling to the whole state, YES I SAID THE WHOLE STATE.
This legislation could go to the floor of the House at any time, so do not wait to call, we have to call and keep calling until this weekend. WE WANT SA NOT VOTE ON SENATE BILL 268!!!!!
To say the least we have a great deal of work and concern in making sure this legislation stops. IT IS UP TO YOU, TO PROTECT YOUR INDUSTRY AND MAKE THE CALLS TO YOUR REPRESENTATIVE AND SENATOR TOMORROW AND ASK FOR A NO VOTE!!!!!!!!!!!!!!!!.
Was HB705
Now SB268
Talking Points
1) Costs would be increased to borrowers in the three counties because of the $100.00 to $250.00 increase in title policy and closing costs.
2) The increased time to close a loan because of counseling delays has increased the rate to extend the locks that will increase the interest paid over the life by as much as $7,000. on a $250,000 loan. That totals over $1,200,000 for just 160 loans.
3) With the State of Illinois dealing with a massive debt, what is the logical reason to spend an additional $2.5 to $3.0 million to cover the three new counties and affecting only 30% of the mortgages originated.
4) There is no data proving the Predatory Lending Database law stopped delinquency or foreclosures.
5) Negative Amortization loans, Payment Option Arm loans, loans with points and fees over 5%, Prepayment Penalties have not been offered since late 2007 thus to have IDFPR say that the Predatory Lending Database slowed or stopped these products is not reality.
6) The statement that there is no evidence that the SB1167 has not impeded business is not reality in that the industry has been going through a 60% retraction of business and also with 70% of the loans being originated are exempt entities, it is not possible to substantiate that statement
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