If you live in cook county, or know anyone who does, please email this to them, AND READ IT - it's crazy what the governor is trying to do.
Thank you, Beth
PLEASE PASS THIS ON TO EVERYONE YOU KNOW WHO LIVES IN COOK COUNTY-
They are going to enact the law very quietly so that the screaming doesn't begin until you have to sell or purchase a new home, that is when everyone will find out that they should have screamed at their representatives!
The Governor of IL believes he should be involved in not only taxing us to death but also in our Real Estate deals. Everyone in Cook County will be affected by this ridiculous law. When you refinance or purchase a home and want to obtain an interest only product or an adjustable rate the State of IL will force you to counseling. I have dealt with the counselors a few months back when this law was only for 10 zip codes and now they are rolling it out for all of Cook County. The counseling and the counselors are a waste of everyone's time except for a certain select group of people who truly need counseling!
This law has already past and then was suspended by the Governor, now its back and worse than ever. Call your state representative and raise some hell because it will take you 60 to 90 days to go through counseling when all of Cook County is required. It took 30 days to get an appointment when there was only 10 zip codes and everyone I spoke to who was required to go said it was a complete waste of their time. Call your mayor, your state representative and tell them this needs to be changed.
DON'T LET THE GOVERNMENT CONTROL YOUR REAL ESTATE NEEDS. THIS LAW IS GOING TO HURT THE HOMEOWNERS OF COOK COUNTY, NOT THE MORTGAGE BROKERS. MORTGAGES WILL STILL GET DONE SO WE WILL BE FINE BUT HAVE FUN AT COUNSELING AND HAVE FUN WAITING FOR THE PERSON WHO PUT A CONTRACT ON YOUR HOUSE TO GET THROUGH COUNSELING BEFORE YOU CAN SELL YOUR HOME!!!!
New HB4050 Overview
This week, Governor Rod Blagojevich announced that he will be filing a revised rulemaking in connection with HB 4050. The proposed rule will be officially filed in the Illinois Register on April 6th. At that time the official comment period of 45 days will begin. The IAMB, along with its legal counsel, Larry Gold, will be reviewing the procedures allowed by law for the Association and its members to participate in the review process. We have learned of a process that might force the State of Illinois to hold a public hearing during this original comment period. Executive Director Marve Stockert will be traveling to Springfield next week to meet with senior staff members from the Joint Committee on Administrative Rules (JCAR), to discuss the IAMB's concerns with the proposed rule, and its impact on the mortgage process in Cook County.
The IAMB newsletter for March 30th will have a detailed explanation of the JCAR process and the guidelines for submitting comments on the new proposed rule. The IAMB plans on participating in the rulemaking process every step of the way, and we will use every legal recourse granted us under the Act to make sure our members voices are heard in the most effective way
A) This is not a new law but a new Rule that was proposed by the Governor. JCAR(Joint Committee on Administrative Rules) is a 12 person committee made up of Democrats, Republicans, Senators and Members of the House. The committee will review the information sent in on the comments, have the hearing recommend changes and have the ability to send a revised Rule back for another 45 day comment period and then have another hearing before making a decision to either pass the rule for implementation or override the rule and have it stop at that point.
B) Again this is not a new law so the Legislators and Senators will not be voting unless they are on JCAR.>
C) The implementation of the new rule if it passes will be at least five to six months.
D) All loans taken in the 218 zip codes of Cook County will have to be registered on the 4050 database (Section 346.15) via the internet. This covers all commercial, residential, Heloc> '> s, 2nds and any other type of residential mortgage product. If you do not enter the information, you will not be able to get a Certificate that is required in order to file the mortgage with the Cook County recorders office.
E) All primary residential 1 -4 Family units are covered. Non-Owner occupied are not covered under the counseling requirements but must be entered into the database.
F) Who is required to have Counseling (Sections 346.21 and 346.22)
1) All 1st Time Home Buyer Loans and all Refinances if they fall under anyone of the following triggers. All other purchases are exempt.
2) Any loan that uses Stated Income
3) Any ARM loans
4) Any Interest Only product
5) Any Option Arm or negative amortization loan products
6) The loan financing transaction includes a simultaneous 100% second-lien loan
7) Any loan with a prepayment penalty
8) Any loan that exceeds the High Cost Lending Limit of 5%.
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