Illinois Compiled Statutes 815 ILCS 120/2 – As used in this Act: (a) “Financial …
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As used in this Act:
(a) “Financial Institution” means any bank, credit union, insurance company, mortgage banking company, savings bank, savings and loan association, or other residential mortgage lender which operates or has a place of business in this State.
(b) “Person” means any natural person.
(c) “Varying the terms of a loan” includes, but is not limited to the following practices:
(1) Requiring a greater than average down payment
(a) “Financial Institution” means any bank, credit union, insurance company, mortgage banking company, savings bank, savings and loan association, or other residential mortgage lender which operates or has a place of business in this State.
Terms Used In Illinois Compiled Statutes 815 ILCS 120/2
- Amortization: Paying off a loan by regular installments.
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
(b) “Person” means any natural person.
(c) “Varying the terms of a loan” includes, but is not limited to the following practices:
(1) Requiring a greater than average down payment
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than is usual for the particular type of a loan involved.
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(2) Requiring a shorter period of amortization than
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is usual for the particular type of loan involved.
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(3) Charging a higher interest rate than is usual for
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the particular type of loan involved.
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(4) An underappraisal of real estate or other item of
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property offered as security.
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(d) “Equity stripping” means to assist a person in obtaining a loan secured by the person’s principal residence for the primary purpose of receiving fees related to the financing when (i) the loan decreased the person’s equity in the principal residence and (ii) at the time the loan is made, the financial institution does not reasonably believe that the person will be able to make the scheduled payments to repay the loan. “Equity stripping” does not include reverse mortgages as defined in § 5a of the Illinois Banking Act, Section 1-6a of the Illinois Savings and Loan Act of 1985, or subsection (3) of § 46 of the Illinois Credit Union Act.
(e) “Loan flipping” means to assist a person in refinancing a loan secured by the person’s principal residence for the primary purpose of receiving fees related to the refinancing when (i) the refinancing of the loan results in no tangible benefit to the person and (ii) at the time the loan is made, the financial institution does not reasonably believe that the refinancing of the loan will result in a tangible benefit to the person.
(f) “Principal residence” means a person’s primary residence that is a dwelling consisting of 4 or fewer family units or that is in a dwelling consisting of condominium or cooperative units.
(e) “Loan flipping” means to assist a person in refinancing a loan secured by the person’s principal residence for the primary purpose of receiving fees related to the refinancing when (i) the refinancing of the loan results in no tangible benefit to the person and (ii) at the time the loan is made, the financial institution does not reasonably believe that the refinancing of the loan will result in a tangible benefit to the person.
(f) “Principal residence” means a person’s primary residence that is a dwelling consisting of 4 or fewer family units or that is in a dwelling consisting of condominium or cooperative units.