If you live in Cook County: House Bill 4050 will affect YOU, requiring mandatory mortgage counseling at a cost of $300, if you refinance or purchase a home that falls into any of the following categories:
1. All first time homebuyers.
2. Anyone refinancing a primary residence.
3. Anyone obtaining an interest-only loan.
4. Anyone obtaining an option ARM, since all of them may result in negative amortization.
5. Any loan where the total points and fees payable by the borrowers at or before closing will exceed 5%.
6. Any loans with documentation type of stated income.
7. Any loan financing the transaction, which includes a simultaneous 100% second-lien loan.
The original HB4050 was suspended by Governor Blagojevich in January 2007, at which time it only affected 10 zip codes in Cook County. The current bill has been expanded to affect all 220 zip codes in Cook County.
The Governor has filed new 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. Take action and let your voice be heard!
Now, the 5.3 million residents of Cook County want to know: WHAT ARE YOU THINKING, Governor Rod Blagojevich?
I think that ALL Cook County homeowners and first time homebuyers need MANDATORY MORTGAGE COUNSELING (for $300) if they refinance or purchase a home with an adjustable rate mortgage (ARM) or interest-only loan.
I think that if it takes a Cook County homeowner or first time buyer 4 or 5 months to get an appointment to see a counselor, that’s not my problem. I just want the $300.
I have no idea that this new law will impact 100,000 transactions per month, or a total of 1.2 million transactions per year.
I think that there is no way for any State Agency to handle that volume without causing large disruptions in the Real Estate industry. But hey - who cares - I'm getting my $300.
I have no idea that 1.2 million transactions requiring $300 in counseling fees will equal $360 million dollars of increased state revenue per year - or 360 million reasons why I think this is a great law... despite the fact that I ACTUALLY SUSPENDED THIS LAW IN JANUARY OF 2007 BECAUSE I DIDN’T THINK IT WAS SO GREAT.
I don’t care how many developers, Realtors, homebuilders, construction workers, contractors, mortgage industry employees, or Cook County residents this new law affects. If a Realtor can’t close a sale, or if a developer can’t sell his condos, just because the Cook County resident is waiting for counseling - well, that's simply not my fault. I am protecting them from themselves!
I think that this law will only be for Cook County, and for no other county in Illinois. That's because Cook County homeowners and first time homebuyers are inferior (that means dumber - we learned that in school without counseling) to every other county in Illinois. Plus they won’t know what hit them until after the law is passed, because we aren’t going to talk about it!
;)
;)
