Cook County Illinois recently took steps to protect residents of the county from predatory lending practices. It should be no surprise that local and state governments are legislating against lenders to prevent another sub-prime mortgage crisis in the future. Great news for Cook County residents, but what does it mean for lenders and real estate transaction service companies?
Here’s what you need to know:
- Every mortgage recorded in Cook County after July 1, 2008 must have a Certificate of Compliance or Certificate of Exemption attached as a cover sheet. The certificates are issued by the Department of Financial and Professional Regulation, Division of Banking through the database program web site.
- The Act creates a counseling requirement for some mortgage borrowers. The requirement applies to certain mortgage transactions involving owner-occupied residential property of one to four units.
- Licensed mortgage brokers and loan originators must enter information about each mortgage transaction into a database created by the program to determine whether the property, entity or transaction is exempt from the program.
- Exempt properties include residential property of five or more units, non-owner occupied property, commercial property and government property.
- Authorized access to the database is limited to mortgage brokers, loan originators, housing counselors and closing agents.
More information on the Cook County recording requirements is available at the State of Illinois website.
Contact Paul Hodnefield by email or phone (800) 921-9801, extension 2375 if you have questions.
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