The Anti-Predatory Lending Database Program.....It's been out for 3 weeks and the verdict is.....

What's the latest?  It's out there....It's been around since July 1, 2008, but it's really quiet.  What is the Anti-Predatory Lending Database Program?  This Illinois requires all mortgages in Cook County to have a Certificate of Compliance or Certificate of Exemption, generated by the Database, affixed to it in order to be recorded. The Cook County Recorder will not close a mortgage without this certificate. If it's determined that the clients need to complete a counseling course a fee of $300 needs to be paid. 

This program is pretty clear....this applies for all mortgages whether commercial or residential that are to be recorded in Cook County.  Originators need to fill out the on-line information, but only after they're registered with the state to originate in Cook County.  The on-line engine will spit back findings of either a certificate of compliance or a certificate of exemption.  If there's no exemption then the counseling is requisite.

There are criteria the are determinations for counseling...counseling is NEEDED IF ONE OF THE FOLLOWING ARE TRUE:

1. The loan allows Interest Only payments;
2. loan allows negative amortization (neg am);
3. total points and fees are in excess of 5% of the loan amount (wow);
4. loan includes a prepayment penalty; or
5. the loan is an adjustable rate loan with an initial period of LESS THAN 3 years!!!!!

So far all of the loans that we've done in cook county haven't required the aforementioned.  We're taking our first this week.....first tim homebuyer.  We'll see where this goes, but so far, this isn't the end of the world.

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Larry Bettag Illinois FHA Specialist

Saint Charles, IL

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Larry Bettag - Cherry Creek Mortgage

Address: 40W310 LaFox Road, Saint Charles, IL, 60175

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