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 Post subject: new law coming to cook county - requiring mandatory mortgage
PostPosted: Tue Apr 10, 2007 10:45 pm 
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http://wbbm780.com/pages/52889.php?cont ... tId=166837
New Law Requires Counseling First-Time Home-Buyers: www.nocounseling.com or www.illinois.gov

http:// www.nocounseling.com/



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:
All first time homebuyers.
Anyone refinancing a primary residence.
Anyone obtaining an interest-only loan.
Anyone obtaining an option ARM, since all of them may result in negative amortization.
Any loan where the total points and fees payable by the borrowers at or before closing will exceed 5%.
Any loans with documentation type of stated income.
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!


NEWS
Chicago Tribune, March 26, 2007
Foreclosure remedies must include lenders

Chicago Sun-Times, March 22, 2007
Course required for some home hunters: Counseling aimed at reducing damage of predatory loans

Chicago Tribune, March 22, 2007
Doubts are voiced on new lending law

Chicago Tribune, March 21, 2007
Revised predatory lending law near: New rules may apply throughout county

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>


This site is brought to you by concerned cizitens of Cook County. http://www.illinois.gov/PressReleases/P ... ecNum=5794

FOR IMMEDIATE RELEASE
March 21, 2007


Governor Blagojevich announces new rules to help protect homebuyers in Cook County
New consumer protections to predatory lending pilot program will reduce foreclosures countywide

CHICAGO –Governor Rod R. Blagojevich today directed the Illinois Department of Financial and Professional Regulation (IDFPR) to increase protections to homebuyers and more effectively fight predatory lending by filing new rules to the Illinois Predatory Lending Database Pilot Program, also known as HB 4050. The new rules will help protect consumers by focusing scrutiny on the lenders and their loans rather than consumers and their credit history. These rules will provide first time homebuyers and homeowners who are refinancing their homes with counseling to protect them against predatory or other non-traditional types of loans.

The Governor also directed the Department to designate the pilot area to be all of Cook County once the rules are approved by the legislature. Last month, Gov. Blagojevich temporarily halted implementation of the original program that was drafted to only apply in certain Cook County neighborhoods after community organizations and civic leaders raised serious concerns.

“The goals of HB 4050 are important and can spare consumers who are going after the American Dream from the financial devastation caused by predatory mortgages. It’s critical that we get this right, and the original rules raised enough red flags that it made sense to take a step back and make sure we are not inadvertently hurting the communities where predatory lending has been most prevalent. After weeks of discussions with community organizations, community leaders and legislators, I’m directing IDFPR to file new rules that will help protect consumers and will apply evenly to all potentially-predatory mortgages, regardless of which community the borrower lives in,” said Gov. Blagojevich.

HB 4050 was meant to protect consumers and their communities from the financial and personal costs of predatory lending. The new rules will increase protections effectively by focusing on predatory loans rather than a borrower’s credit history. Predatory lenders often use loans with unusual provisions such as ‘teaser rates’ (artificially low rates that are raised to market average or above, shortly after the mortgage is approved), little or no income documentation or excessively high fees and interest charges to entice homebuyers. These loans frequently result in foreclosures.

Under the proposed rules for HB 4050, first time homebuyers and owners opting to refinance their primary residence will be recommended for counseling if the loan they are considering contains any of the following provisions:

· Permits interest-only payments;

· Allows payments that results in negative amortization;

· Total points and fees payable by the borrower exceed 5% of the amount of the mortgage;

· Approval of the loan relies on the stated income of the borrower;

· A pre-payment penalty is included; or

· The financing transaction includes a second lien on the property, often known as an 80/20 loan.

Initial implementation of HB 4050 created uncertainty for lenders, limiting their interest in offering products to consumers in certain neighborhoods where the new rules applied. Furthermore, a report from the University of Illinois Urbana-Champaign showed that housing sales in the HB 4050 zip codes dropped by nearly half over the fall of 2006. Comparable zip codes in which the pilot program was not being applied saw a decline of just 20 percent. The report also stated that the pilot program did not offer borrowers additional consumer protections.

Once today’s rule has been filed with the Secretary of State, there is a 45-day 1st Notice period, during which industry groups, advocates and other concerned members of the public may file comments or request a public hearing. During the 2nd Notice period, also 45 days long, the rule and any modifications or amendments, will be reviewed by the Joint Committee on Administrative Rules (JCAR). JCAR can request additional clarification or information from the Department that must be supplied during JCAR’s review. At the end of that time, if JCAR takes no action, the rule becomes permanent and any further changes must be filed through a new rulemaking process. Once the new rules have become permanent, the pilot program will be restarted, and the new designation for the pilot area will become effective.

Email: nocounseling@yahoo.com

_________________

When the government fears the People, that is Liberty.
When the People fear the Government, that is tyranny."
~ Thomas Jefferson
...................................
HOW TO FIX 2011 - REPEAT 1776


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 Post subject:
PostPosted: Mon Apr 16, 2007 3:03 pm 
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Hey Martha, are you licensed by the state to speak upon the selling of houses, and advice? Hmmmmmmmm?

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 Post subject:
PostPosted: Mon Apr 16, 2007 8:53 pm 
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nope. but I listen to the radio all of the time.
and it was on different radio programs coming out of chicago.

I gave everyone the info that was from a site to stop it.
and I gave info for the site for the state government.

other wise I have nothing to do with any of it.



expresso66 wrote:
Hey Martha, are you licensed by the state to speak upon the selling of houses, and advice? Hmmmmmmmm?

_________________

When the government fears the People, that is Liberty.
When the People fear the Government, that is tyranny."
~ Thomas Jefferson
...................................
HOW TO FIX 2011 - REPEAT 1776


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 Post subject:
PostPosted: Sat May 26, 2007 12:32 pm 
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:lol:

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