Cook County Predatory Lending Database Program effective July 1, 2008
 

The program assists qualifying Cook County borrowers in understanding the terms and conditions of the loan they are seeking. Under the program, the Illinois Department of Financial and Professional Regulation (IDFPR) will collect information from certain mortgage brokers and loan originators on home loan applications in Cook County. First-time homebuyers seeking loans with certain characteristics will be referred to a loan counselor certified by the U.S. Department of Housing and Urban Development (HUD) before the loan can be closed.

How do I determine if the counseling requirements affect me?

Counseling will be required IF:

• The loan is obtained through a mortgage broker or loan originator licensed by IDFPR under the Residential Mortgage License Act
  AND

• The borrowers (ALL borrowers if more than one) are first-time homebuyers seeking a mortgage on a 1-4 unit, owner-occupied residential property located in Cook County or the borrowers are refinancing a primary residence.
  AND

• The loan includes one or more of the following characteristics:
  1. The loan permits interest-only payments;
  2. The loan may result in negative amortization;
  3. The total points and fees payable by the borrower at or before closing will exceed 5 percent;
  4. The loan includes a prepayment penalty; or
  5. The loan is an adjustable rate mortgage (ARM) which allows adjustments of the interest rate in the first three years.

Will I be notified if I have to undergo counseling?

If counseling is required, you will be notified by the mortgage broker/loan originator and IDFPR and will be given a list of all participating HUD-certified counseling agencies in the Cook County area. You will be required to set up and participate in a counseling session within 10 days of receiving the information on the counseling agencies from IDFPR. The counselor will review the loan terms with you and counsel you on various aspects of the loan.

Can I still obtain the loan if the counselor recommends against it?

Whatever the counselor’s recommendation may be, it is your decision whether to proceed with the loan.

Does the program have any impact on me if I am not a first-time homebuyer or I am buying commercial property?

In order to implement the counseling aspects of the program, when required, all mortgages recorded in Cook County after June 30, 2008 will be required to be accompanied by a Certificate of Exemption or a Certificate of Compliance. If counseling is not required under the program you will need a Certificate of Exemption in order to record a mortgage in Cook County.

Resources:

Illinois Department of Financial and Professional Regulation, www.idfpr.com
(312) 793-4190 or (866) 266-4120

Fair Housing Resources, www.thehousingsite.org