205 ILCS 635/5-8 prohibits a licensee from making, providing, or arranging a mortgage loan with a prepayment penalty unless the licensee first offers a loan without a prepayment penalty, the offer is in writing, and the borrower initials the offer to indicate that the they have declined.
To conform with this language requirement, we have slightly modified the Illinois Prepayment Charge Disclosure (our Cx13520) by adding: “…and borrowers have declined the offer.” to the end of the the paragraph acknowledgement, where borrowers acknowledge that the lender has offered a loan without a prepayment penalty, and borrowers have declined the offer.
This document change will be in effect on February 12, 2019. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
DR 282586 and 284194