Illinois Servicing Reference Guide
- Kacey Olson
Owned by Kacey Olson
| Citation | Topic | Requirement |
| High Risk Home Loan Act / 815 Ill. Comp. Stat. Ann. 137/100 | 30 Day Delinquency Notice | If a high risk home loan becomes delinquent by more than 30 days, the servicer must send a notice advising the borrower that he or she may wish to seek approved credit counseling. The notice required must, at a minimum, include the following language: "YOUR LOAN IS OR WAS MORE THAN 30 DAYS PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY. IT MAY BE IN YOUR BEST INTEREST TO SEEK APPROVED CREDIT COUNSELING. A LIST OF APPROVED CREDIT COUNSELORS MAY BE OBTAINED FROM EITHER THE ILLINOIS DEPARTMENT OF FINANCIAL INSTITUTIONS OR THE ILLINOIS OFFICE OF BANKS AND REAL ESTATE." |
| Mortgage Payment Statement Act / 765 Ill. Comp. Stat. Ann. 920/2 | Borrower Account Statements | Under the Mortgage Payment Statement Act, 765 ILCS §920/0.01, et seq., when any agreement provides for periodic payments to be made by the obligor to the obligee, and the payments include taxes or insurance (or both) with respect to the property covered by the agreement, and the amount of the periodic payments is increased for taxes or insurance premiums (or both) the obligee must, upon written request of the obligor, mail or deliver to the obligor an itemized statement showing the respective amounts of each payment applied to taxes, insurance, and other items. |
| 765 Ill. Comp. Stat. Ann. 605/9 | Condominiums | (3) The purchaser of a condominium unit at a judicial foreclosure sale, or a mortgagee who receives title to a unit by deed in lieu of foreclosure or judgment by common law strict foreclosure or otherwise takes possession pursuant to court order under the Illinois Mortgage Foreclosure Law, shall have the duty to pay the unit's proportionate share of the common expenses for the unit assessed from and after the first day of the month after the date of the judicial foreclosure sale, delivery of the deed in lieu of foreclosure, entry of a judgment in common law strict foreclosure, or taking of possession pursuant to such court order. |
| High Risk Home Loans / Ill. Admin. Code tit. 38, §345.110 | Consumer Credit Counseling Notice | In the event that a high risk home loan becomes delinquent by more than 30 days, the servicer must send a notice advising the borrower that he or she may wish to seek consumer credit counseling. The notice must, at a minimum, include the following language: "YOUR LOAN IS OR WAS MORE THAN 30 DAYS PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL DIFFICULTY. IT MAY BE IN YOUR BEST INTEREST TO SEEK APPROVED CONSUMER CREDIT COUNSELING. A LIST OF APPROVED CREDIT COUNSELORS MAY BE OBTAINED FROM THE ILLINOIS DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION-DIVISION OF BANKING." |
| Code of Civil Procedure / 715 Ill. Comp. Stat. Ann. 5/15-1602 | Cure of Default | In any foreclosure of a mortgage, a borrower may reinstate the mortgage by curing all defaults then existing, other than payment of such portion of the principal which would not have been due had no acceleration occurred, and by paying all costs and expenses required by the mortgage to be paid in the event of such defaults. The cure and payment must be made prior to the expiration of 90 days from the date the borrower has been served with summons or by publication or has otherwise submitted to the jurisdiction of the court. When service is made by publication, the first date of publication must be used for the calculation. Upon such reinstatement of the mortgage, the foreclosure and any other proceedings for the collection or enforcement of the obligation secured by the mortgage must be dismissed and the mortgage documents will remain in full force and effect as if no acceleration or default had occurred. |
| Code of Civil Procedure / 735 Ill. Comp. Stat. Ann. 5/15-1504.5 | Important Information for Homeowners in Foreclosure | The plaintiff in all residential foreclosure actions must attach an Important Information for Homeowners in Foreclosure Notice to the summons. The Notice must be in at least 12-point type and provided in English and Spanish. A Spanish translation of the Notice will be prepared by the Attorney General and posted on the Attorney General's website. A notice that includes the Attorney General's Spanish translation in substantially similar form will be deemed to comply with the Spanish notice requirement. |
| IL Residential Mortgage License Act of 1987 | 815 Ill. Comp. Stat. Ann. 205/4.1a(f) | Late Payment Fees | (f) if the agreement governing the loan so provides, for each loan installment in default for a period of not less than 10 days, a charge in an amount not in excess of 5% of such loan installment. Only one delinquency charge may be collected on any such loan installment regardless of the period during which it remains in default. Payments timely received by the lender under a written extension or deferral agreement shall not be subject to any delinquency charge. |
| Residential Mortgage License Act / 205 Ill. Comp. Stat. Ann. 635/5-8.5 | Mortgage Loan Arrears Payment | Sec. 5-8.5. Arrearage payments. When a mortgagor is in arrears more than one month, no licensee shall refuse to accept any payments offered by the mortgagor in whole month payment amounts. Such payments shall be applied to the unpaid balance in the manner provided in the licensee's mortgage with that mortgagor. Effective 1-1-2018 |
| High Risk Home Loan Act / 815 Ill. Comp. Stat. Ann. 137/105 | Notice of and Right to Cure Default | Before an action is filed to foreclose or collect money due pursuant to a high risk home loan or before other action is taken to seize or transfer ownership of property subject to a high risk home loan, the lender or lender's assignee of the loan must deliver to the borrower a notice of the right to cure the default, informing the borrower of all of the following: (1) the nature of the default; (2) the borrower's right to cure the default by paying the sum of money required, provided that a lender of assignee must accept any partial payment made or tendered in response to the notice (If the amount necessary to cure the default will change within 30 days of the notice due to the application of a daily interest rate or the addition of late fees, the notice must give sufficient information to enable the borrower to calculate the amount at any point within the 30-day period.); (3) the date by which the borrower may cure the default to avoid a court action, acceleration and initiation of foreclosure, or other action to seize the property (This date may not be less than 30 days after the date the notice is delivered.); (4) the name, address, and telephone number of a person to whom the borrower can make the payment; (5) a notice that if the borrower does not cure the default by the date specified, the lender or assignee may file an action for money due or take steps to terminate the borrower's ownership in the property by requiring payment in full of the high risk home loan and commencing a foreclosure proceeding or other action to seize the property; and (6) the name, address, and telephone number of a person whom the borrower may contact if the borrower disagrees with the assertion that a default has occurred or the correctness of the calculation of the amount required to cure the default. |
| Mortgage Rescue Fraud Act / 765 Ill. Comp. Stat. Ann. 940/10(e) | Notice of Cancellation for Distressed Property Consultant Contract | The distressed property consultant contract must be attached to a completed form captioned “NOTICE OF CANCELLATION.” |
| Mortgage Rescue Fraud Act / 765 Ill. Comp. Stat. Ann. 940/40(b) | Notice of Cancellation for Distressed Property Conveyance Contract | The distressed property conveyance contract must be attached to a completed form captioned “NOTICE OF CANCELLATION” in a size equal to a 12-point boldface type, if the contract is printed, or in capital letters, if the contract is typed, followed by a space in which the distressed property purchaser must enter the date on which the owner of the distressed property executes any contract. |
| Residential Mortgage License Act of 1987 / Ill. Admin. Code tit. 38, §1050.830 | Notice of Payment Change | When servicing includes the maintenance of an escrow account for payment of hazard insurance premiums, the licensee must make a good faith effort to pay hazard insurance premium bills on or before the due date, and to ensure sufficient funds, perform a complete analysis of each mortgage escrow account at least once every year. No later than 30 days before the effective date of a change in payment, the customer must receive the analysis, along with a plain English explanation of how the new payment amount has been calculated. |
| Collateral Protection Act / 815 Ill. Comp. Stat. Ann. 180/15(a) | Notice of Placement of Collateral Protection Insurance | Within 30 calendar days following the purchase of collateral protection insurance, the lender must mail to the borrower and to any cosigner, guarantor, or other person liable with the borrower for the obligation, at the last known address on file with the lender, a notice entitled “Notice of Placement of Insurance”. |
| Mortgage Escrow Account Act / 765 Ill. Comp. Stat. Ann. 910/5 | Notice of Right to Terminate Escrow Account | Under the Mortgage Escrow Account Act, when the mortgage is reduced to 65% of its original amount by payments of the borrower, timely made according to the provisions of the loan agreement secured by the mortgage, and the borrower is otherwise not in default on the loan agreement, the mortgage lender must notify the borrower that he may terminate such escrow account or elect to continue it until he requests a termination thereof, or until the mortgage is paid in full, whichever occurs first. |
Code of Civil Procedure / 735 Ill. Comp. Stat. Ann. 5/15-1507 | Notice of Sale | Following expiration of any reinstatement period and redemption period, or upon the entry of a judgment of foreclosure after the waiver of all rights of redemption, the real estate must be sold at a judicial sale, on such terms and conditions as specified by the court in the judgment of foreclosure. The notice of sale must be published a minimum of 3 times, each 1 week apart, with the first notice being not more than 45 days prior to the sale and the last not less than 7 days prior to the sale. The mortgagee must also serve notice of the sale to all parties in the action who have appeared and have not been found by the court to be in default for failure to plead. No more than 45 days or less than 7 days prior to the sale, such notice must be served on the parties in the manner provided in the applicable rules of court for service of papers. With respect to residential real estate, the notice of sale must be sent to the borrower even if the borrower has previously been held in default. In the event the borrower has filed an appearance, the notice of sale must be sent to the address indicated on the appearance. In all other cases, the notice of sale must be sent to the borrower at the common address of the foreclosed property. The notice of sale must be sent by first class mail. Unless the right to possession has been previously terminated by the court, the notice of sale must also include the following language in 12-point boldface capitalized type: IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE ILLINOIS MORTGAGE FORECLOSURE LAW. |
Residential Mortgage License Act of 1987 / 205 Ill. Comp. Stat. Ann. 635/3-7 | Notice of Transfer of Servicing | Whenever the servicing of a residential mortgage is transferred or sold by a licensee, notice must be given to the mortgagor simultaneously with such transfer and must include, at the minimum: (1) where and to whom to address questions that relate to the mortgage, and a toll-free telephone arrangement of the licensee which purchased or accepted the mortgage; (2) the name and address to whom payments are to be submitted for at least the next 3 months; (3) the amount of each payment required for the next 3 months; (4) the effective date of the transfer; (5) reassurance that the transfer of servicing does not affect the terms and conditions of the mortgage; and (6 )the name and address of the primary regulatory authority having jurisdiction over the residential lending activities of the entity to whom payments are to be sent. Repealed effective 10/17/2017 HB2965 |
| Code of Civil Procedure / 735 Ill. Comp. Stat. Ann. 5/15-1508.5 | Notice to Occupants | The holder of the certificate of sale or deed issued pursuant to that certificate (or the purchaser if no certificate or deed was issued) must notify all known occupants of dwelling units of the mortgaged real estate that the holder or purchaser has acquired the mortgaged real estate. The notice must be in writing and must: (1) identify the occupant being served by the name known to the holder or purchaser; (2) inform the occupant that the mortgaged real estate at which the dwelling unit is located is the subject of a foreclosure and that control of the mortgaged real estate has changed; (3) provide the name, address, and telephone number of an individual or entity whom the occupants may contact with concerns about the mortgaged real estate or to request repairs of that property; and (4) include the name of the case, the case number, and the court where the order confirming the sale has been entered. |
| Code of Civil Procedure / 735 Ill. Comp. Stat. Ann. 5/15-1505.5(a) | Payoff Demand Statement | Upon written demand from a borrower or the borrower's authorized agent, a mortgagee or the mortgagee's authorized agent must prepare and deliver an accurate statement of the total outstanding balance of the mortgagor's obligation (within 10 business days) that would be required to satisfy the obligation in full as of the date of preparation. |
| Mortgage Insurance Limitation and Notification Act / 765 Ill. Comp. Stat. Ann. 930/20 | PMI Cancellation Notice (Annual Statement) | Within 30 days after the end of the calendar year, a mortgagee must inform the mortgagor in writing of the procedure to cancel the PMI together with the telephone number and address. This annual statement may be printed on or included with any other annual statement that is required by and federal or Illinois law to be made by the mortgagee to the mortgagor. |
| 735 III Comp. Stat. 5/15-1508(b-5) | Post Sale Notice | (b-5) Notice with respect to residential real estate. With respect to residential real estate, the notice required under subsection (b) of this Section shall be sent to the mortgagor even if the mortgagor has previously been held in default. In the event the mortgagor has filed an appearance, the notice shall be sent to the address indicated on the appearance. In all other cases, the notice shall be sent to the mortgagor at the common address of the foreclosed property. The notice shall be sent by first class mail. Unless the right to possession has been previously terminated by the court, the notice shall include the following language in 12-point boldface capitalized type: IF YOU ARE THE MORTGAGOR (HOMEOWNER), YOU HAVE THE RIGHT TO REMAIN IN POSSESSION FOR 30 DAYS AFTER ENTRY OF AN ORDER OF POSSESSION, IN ACCORDANCE WITH SECTION 15-1701(c) OF THE ILLINOIS MORTGAGE FORECLOSURE LAW. |
| Mortgage Escrow Account Act / 765 Ill. Comp. Stat. Ann. 910/15 | Property Tax Notice | When any mortgage lender pays the property tax from an escrow account, the mortgage lender must give the borrower written notice of the following, within 45 business days after the tax payment: (1) the date the taxes were paid; (2) the amount of taxes paid; and (3) the permanent index number, mortgage account number, address of the property, or other property description that is used for assessment and taxation purposes under the Property Tax Code. In lieu of providing the notice of tax payments, a mortgage lender may provide, at least annually, notice to a borrower of a means of communication for the borrower to access the information required to be in the notice of tax payments by telephone, facsimile, e-mail, Internet access, or other means of communication. This notice may be delivered, mailed or transmitted by any usual means of communication. |
| Mortgage Act / 765 Ill. Comp. Stat. Ann. 905/2 | Release of Lien | Every mortgagee of real property that has received full satisfaction and payment of all sums of money as are due from the mortgagor, at the request of the mortgagor, must make, execute and deliver to the mortgagor an instrument in writing releasing such mortgage, which release will be entitled to be recorded or registered. If the release is delivered to the mortgagor, it must have imprinted on its face in bold letters at least 1/4 inch in height the following: FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL BE FILED WITH THE RECORDER OR THE REGISTRAR OF TITLES IN WHOSE OFFICE THE MORTGAGE OR DEED OF TRUST WAS FILED. A certificate of release issued and recorded by a title insurance company or its agent pursuant to the Mortgage Certificate of Release Act, 765 ILCS §935/1 et seq., satisfies these requirements. |
| Mortgage Rescue Fraud Act / 765 Ill. Comp. Stat. Ann. 940/10 | Written Contract for Distressed Property Consultants | A distressed property consultant contract must be in writing and must fully disclose the exact nature of the distressed property consultant's services and the total amount and terms of compensation. The contract must contain on the first page, in a type size no smaller than that generally used in the body of the document, each of the following: (1) the name and address of the distressed property consultant to which the Notice of Cancellation is to be mailed; and (2) the date the owner signed the contract. Certain statements in the contract must be in at least 12-point boldface type. |
| Mortgage Rescue Fraud Act / 765 Ill. Comp. Stat. Ann. 940/25 | Written Contract for Distressed Property Purchasers | A distressed property purchaser must enter into every distressed property conveyance in the form of a written contract. The contract must be written in letters of a size equal to at least 12-point boldface type in the same language principally used by the owner of the distressed property to negotiate the sale of the distressed property; fully completed, signed, and dated by the owner of the distressed property and the distressed property purchaser; and witnessed and acknowledged by a notary public, before the execution of any instrument of conveyance of the distressed property. See 765 Ill. Comp. Stat. Ann. 940/40(a) and 765 Ill. Comp. Stat. Ann. 940/30(7) for additional information. |