Borrower Information Document. Before a mortgage loan
applicant, also referred to in this Subpart as "borrower" or "customer", signs
a completed residential mortgage loan application or gives the licensee any
consideration, whichever comes first, the licensee shall give the customer a
Borrower Information Document. The document may be incorporated into or
appended to the material as is necessary for compliance with relative Federal
requirements, including but not limited to Regulation Z ( 12 CFR 226 ). Except
for the explicit wording required by subsection (a) of this Section, the
following format is for illustrative purposes only; however, all of the
following information shall be included in the document:
a) Regulatory Disclosure Statement: The
following statement: "This document is being provided to you pursuant to the
Residential Mortgage License Act of 1987 and Rules promulgated thereunder (38
Ill. Adm. Code
1050). The purpose of this document is to set forth those
exhibits and materials you should receive or be receiving in connection with
your residential mortgage loan application with (name of licensee), holder of
License (license number) and regulated by the State of Illinois, Division of
Banking, under the aforesaid Act".
b) Significant information: Significant
information on the types of situations that could affect the processing of the
loan but that may not be known by the licensee at the time the application was
taken. Examples of such situations include, but are not limited to:
1) An appraisal value different from that
estimated by the borrower;
2)
Credit obligations the borrower fails to report;
3) A change in the borrower's financial
circumstances that would result in his or her ineligibility for the loan;
or
4) A material change or
discontinuation of a loan program by an investor or other entity, such as the
U.S. Department of Housing and Urban Development, the Veterans' Administration
or a private investor.
c) "Your Home Loan Toolkit": If the mortgage
relates to the purchase of the security real estate, a "Your Home Loan Toolkit"
as required by the federal Consumer Financial Protection Bureau that describes
the home buying process. The "Your Home Loan Toolkit" may be obtained at the
CFPB website: consumerfinance.gov, or from the United States Government
Printing Office (GPO) at the GPO website: bookstore.gpo.gov. This toolkit,
released on March 31, 2015 and effective October 3, 2015, is hereby
incorporated by reference with no subsequent dates or editions
included.
d) Good Faith or Loan
Estimate of Costs:
1) For any residential
mortgage loan, regardless of whether it represents a position of first or
junior lien against the security real estate, a good faith estimate or
TILA-RESPA Integrated Loan Estimate of the costs that will be paid in
connection with the financing as outlined in Regulation Z ( 12 CFR
226
).
2) If the mortgage relates to
the purchase of the security real estate, a good faith estimate or TILA-RESPA
Integrated Loan Estimate of the amount and nature of charges discussed at
Section
1050.1320(b)
of this Part.
e) Loan
Application: A copy of the loan application or equivalent form that will have
to be signed and delivered to the lender in order to obtain the loan.
f) Mortgage Escrow Account Act, Related
Document: If the mortgage is not FHA-insured or VA-guaranteed and relates to
the purchase of owner-occupied, single-family security real estate, unless
there is a certainty that the lender will not require maintenance on an escrow
account for payment of taxes, a copy of the Mortgage Escrow Account Act [ 765
ILCS 910 ], along with a copy of the document to be executed by the applicant
at closing with respect to use of a pledged time deposit account in lieu of an
escrow account pursuant to that Act.
g) "Consumer Handbook on Adjustable Rate
Mortgages": If the mortgage is an adjustable rate mortgage representing a
first-lien position with respect to the security real estate, the "Consumer
Handbook on Adjustable Rate Mortgages", as required by Federal regulations ( 12
CFR
535.33 ), that describes the special features of adjustable rate
mortgages.
h) Documents upon
Request: Upon request by the
applicant, the following information shall be
provided:
1) A sample of the form of note and
mortgage that will be executed if the loan applied for is approved;
2) A general description of underwriting
standards that will be considered in evaluating the application.
i) Dated Customer Acknowledgment:
A provision for an applicant to acknowledge receipt of each of the above-listed
disclosures, showing the date of receipt.
