Tuesday, July 1, 2008
RETURN of the ILLINOIS ANTI-PREDATORY LENDING PROGRAM
Today marks the effective date of the new Illinois Anti-Predatory Lending Database Program. From this point forward, title companies must record a certificate of exemption or compliance with all residential mortgages. Here's one over here --->
Got this sucker at a purchase this morning. Gotta figure its one of the first ones to be issued, given that the law went into effect only hours ago. Cost my clients $50 (a title company charge to handle the paperwork) plus an additonal buck to the County Recorder for the additional page to be recorded. Tacked about twenty additional minutes onto the closing, but all in all (so far) not too bad a disruption of the closing process.
Of course, the real test will be when compliance (non-exempt) certifications start making their way through the closing pipeline. This may not begin for another week to 10 days as compliance certifications will only be necessary for certain specified types of mortgage loans applied for on and after July 1.
I understand that the new program requires title companies to undertake a fair amount of data collection and reporting to the State of Illinois. How big is the burden? Title companies are creating and staffing whole new compliance departments and buyers are going start paying roughly $150 per loan to pay for the effort. We'll soon see how much longer closing appointments will be.