The Mortgage Reports Blog

Illinois SB 1674: The Final Vote?

I haven't much reported on Illinois SB 1674 other than to say that it's making its way through the state legislature.  That's because SB 1674 is not a law just yet; It's just a (heated) debate.

In Springfield, there is a lot going on behind the scenes so to get the best answers about SB 1674 and other mortgage broker bils, contact your state representative. 

Get your information straight from the horse's mouth, folks.

Don't worry about actually talking with your state representative, by the way.  The phone calls to their offices are usually answered by staffers and the staffers are very, very nice and willing to listen to everything you have to say.

Use http://www.elections.state.il.us/DistrictLocator/AddressSearch.aspx to find your representative's phone number.

(Image Courtesy: Risawn.com)

HB 1478: Dead for now, but look for SB 1674

Word from Springfield is that HB 1478 -- sometimes referred to as "HB 4050 On Steroids" -- has been retired. 

That's not the official status, but the law's third iteration was sent back to the Rules Commitee (again) and that usually signals the death of a bill.

From the state, here is the synopsis of HB 1478 (boldface added for emphasis):

Creates the Predatory Home Loan Practices Act. Prohibits various practices and charges in connection with home loans made to persons with respect to their primary residence. Prohibits the imposition of prepayment penalties, flipping of loans, and lender financing of credit insurance. Imposes limitations on high-cost loans. Prohibits loans unless the lender reasonably believes that the borrower is able to make scheduled payments to repay the loan without respect to the borrower's equity in the property. Authorizes a borrower to obtain damages for violations of the Act.

I believe that last line about "obtaining damages" is where this bill failed and I suspect that there will be more legislation introduced in the next session that resembles HB 1478.

Worth noting: the Illinois Senate is reviewing SB 1674 and a state official said via email that it "would be amended to include HB 1478 and [will be] the old HB 4050 but worse".  The house sponsors of SB 1674 are eerily similar to the HB 1478 sponsors.

If you haven't seen the state's running report of a bill's lifeline, it can be very interesting.  Or not, I suppose.  It depends on your view of politics.

Illinois Department of Financial and Professional Regulation Says: "We've Been Hacked"

This snippet comes from the Illinois Department of Financial and Professional Regulation Web site.  The original date of the posting is not listed:

A breach of security occurred on a State of Illinois server containing personal information of licensees of IDFPR. This was confirmed on May 3, 2007 and immediately referred it to State and Federal law enforcement authorities.

The rest of the notice says that the unauthorized access has not been linked to any known cases of identity theft, but that those affected have been notified via USPS.

It also states that the known breach occurred in January which begs the question: what happened between the January date and the confirmed May 3 date that the breach went undiscovered?

Every computer system in the world is vulnerable to some sort of attack and IDFPR is no different.  The timing is unfortunate for the state, however, because opponents of HB 4050 cite data security as a major risk to the state's residents and real estate practitioners.

This attack should stoke those fears.

Currently, HB 4050 is being reworked by the state lawmakers to make it apply to all of Cook County.  You can read more in the HB 4050 category link.

Thank you, Max, for the tip.

HB 4050: Outside Coverage

Mortgage blogger Kit Mueller is doing a terrific job tracking HB 4050 developments in Springfield and even spent some ink on the more onerous HB 1478.

Kit delivers his politics with a side order of flavor.  He's also a contributing member of Related Blogs.

HB 4050: Local Group Organizes Opposition to HB 4050

A group calling themselves "Concerned Citizens of Cook County" launched a Web site at http://www.nocounseling.com to fight the new proposed rules for Illinois HB 4050.

The site features an easy-to-use form that sends an email to JCARs members on your behalf.  You type in your name and then press "Submit" -- that's it. 

I haven't found an easier way to voice HB 4050 concern than on the No Counseling Web site. The pages also include a listing of all of the JCAR members and how to reach them.

For all of the good that they are trying to do, though, I find it strange that the creators of the No Counseling Web site (a) never list their names, and (b) don't have a "legitimate" email address.  The pages all show a "yahoo.com" email address.

Concerned Citizens of Cook County could be anyone.  Why are they not taking credit for their fight?

In any case, if HB 4050 concerns you, use the Concerned Citizens of Cook County Web site to help make a formal remark to the rules committee.

HB 4050: 45-Day Comment Period Begins

Last Friday, the comments period for Illinois House Bill 4050 began.  During the comments period, the Illinois Joint Committee on Administrative Rules (JCAR) determines whether the changes to the law will be accepted or rejected.

The new HB 4050 rules require home loan counseling for all 1-4 unit, primary residence financing in Cook County meeting any of the following criteria:

• Mortgage uses stated income
• Mortgage is an ARM that adjusts in fewer than 5 years
• Mortgage carries an interest only feature
• Mortgage is an Option ARM, or carries a negative amortization feature
• Mortgage financing is for 100% of the home's value
• Mortgage carries a prepayment penalty

This applies for first-time home buyers, for home buyers that have not made a purchase in the last three years, and for all remortgages.

Illinois House Bill 4050 is already law, signed by Gov. Blagojovich in 2006 so JCAR is voting on a modification to the scope of the law. 

There are 12 JCAR members and they represent Democrats, Republicans, Senators and Members of the House.  Letters to your local representative(s) are not really helpful unless they are JCAR members.

HB 4050: This Time, It Applies To All Borrowers In All Of Cook County

News today from the Illinois Department of Financial and Professional Regulation: HB 4050 is back on and all of Cook County is impacted.

The sub-headline for the press release reads:

New consumer protections to predatory lending pilot program will reduce foreclosures countywide

This time around, HB 4050 is not just for low-credit borrowers.  It applies to everyone in Cook County.  Read the press release and see for yourself.  HB 4050 is now in a 45-day waiting period during which a public hearing may be requested, or comments may be made.

Commenting on this blog will not register your remarks with the state.

HB 4050: Is HB 4050 On Its Way Back?

I thought that the HB 4050 issue went to bed when Blago changed its zip codes two months ago.  Apparently not, if this not-yet-verified latest story is true.

I received a tip today that Secretary Dean Martinez of the IDFPR is part of a plan to reinstate Illinois House Bill 4050, the Predatory Lending Database Pilot Program Act.

This time, though, instead of focusing on 10 zip codes in Cook County, the reincarnation of HB 4050 will apply to all of Cook County.

According to the advance (and not-yet-confirmed) notice I received, the plan is for HB 4050 to apply to the following classes of people in all of Cook County:

• First-time home buyers
• Home buyers that have not bought a home in the last three years
• All refinance borrowers

If a borrower is in one of the above "classes", then he/she is HB 4050-susceptible.  For these borrowers, if the selected loan product meets any of the following criteria, HB 4050 counseling will be required:

• The home loan has a prepayment penalty
• The home loan can negatively amortize
• The home loan carries an interest only feature
• The home loan has fees in excess of 5% of its size
• The home loan is a "stated income" loan (i.e. income is not verified)
• The home loan(s) are for 100% of the home's value
• The home loan is an ARM that adjusts in fewer than 5 years

The last time HB 4050 was in effect, lenders decided that it was easier to avoid Cook County altogether than to try and play by their rules.  As a result, the amount of lenders making loans in the area plummeted and people in need of money were left hanging.

Area home sales dropped by 45% on both an annual and a year-over-year basis, partly as a result of HB 4050.

Like we've said before, Cook County is the crazy ex. 

To be fair to Cook County, though, this story has not been confirmed by the IDFPR Web site nor from IAMB. 

What we do know that the state is "re-writing the rules" for HB 4050 and that no definite decisions have been made.  Once new rules are written, the law will be subject to the standard 45-day period for comments before being enacted as a new law.

Stay tuned for more...

HB 4050: Is HB 4050 Repealed Forever?

HB 4050 is no longer?  That's what the IDFPR Web site seems to say.

The text at right, signed by Secretary Dean Martinez and dated from Friday, does not repeal the law, but instead designates a new target area to "no zip codes or areas whatsoever".

Governor Rod Blagojevich ordered the suspension, inviting criticism from House Speaker Michael Madigan, Senator Martin Sandoval and others in congress.

There is no word on how the repealment of Illinois House Bill 4050 will impact home loans already in process, or whether scheduled counseling sessions should be cancelled.

HB 4050: A Tale From The Front

Author's Note: This flier is from an HB 4050 presentation I recently hosted.  To print your own, just click it, then print it!

A few times each week, I get calls from residents and other stakeholders in the HB 4050 zip codes, asking questions and looking for my opinions on a whole host of issues.  Occasionally, the caller is a homeowner in need of help with a remortgage. 

"Yes," I tell them.  "I can lend to homeowners in the HB 4050 zip codes."

Their story always starts the same: the homeowner applied for a mortgage with a broker who didn't know the first thing about Illinois House Bill 4050 and -- surprise, surprise, surprise -- the applicant finds out at the very last minute that the loan can't be underwritten or closed "because of HB 4050".

So, the homeowner goes to Google, types in "HB 4050" and this blog shows up as Ranking #1.  They follow the links on the site, read up a bit, and that's when my phone rings.

One of the unintended consequences of HB 4050 is that lenders are choosing to avoid the areas altogether and this happens for two reasons:

1. It does not make business sense to restructure process flow just to accommodate a handful of zip codes versus the tens of thousands nationwide.
2. If HB 4050 is not followed to the letter of the law, the lender is left holding an unenforceable lien and forgoes its right to foreclose on a non-paying borrower.

This two reasons have driven nearly every single sub-prime lender away from the HB 4050 zip codes and this is a huge deal because if an applicant meets the trigger criteria for the law, you can be 99% certain that they are a sub-prime borrower.

Sub-prime lenders are the ones that do the "out-of-the-ordinary" home loans on which the government-backed Fannie Mae and Freddie Mac would turn their back. 

Borrowers who meet the HB 4050 rely on the diverse sub-prime product menu and -- now that sub-prime lenders have turned their back on them -- that menu has a lot fewer choices on it.  HB 4050 has made it harder for people with unique situations to get matched up with a lender and its mortgage products.

So back to my callers.

This week, one of the calls came from a gentleman who was clearly having trouble in his life.  A quick list:

• He has not paid his mortgage since September
• He is delinquent on every account on his credit report
• His credit score is a 456
• His current lender has filed foreclosure proceedings

But, he has one major strength going for him.  His equity position in his home is 54%.  He owes about $110,000 and the home is worth about $235,000.

For homeowners like this with strong equity positions, there is one sub-prime lender that loves to lend to them.  Because the lender's loan terms require the borrower to set aside 12 months worth of payments from their equity and place it in escrow for purposes of paying the loan for the next year, the loan can't default.  It's a win-win for the homeowner and the bank.

So, I called the lender with the plan and laid it out:

• The new mortgage will be $140,000
• All debts will be paid current
• The mortgage will be paid current
• The homeowner's mortgage payment would be paid for him for the next year while he got his life back in order

The lender loved it and was ready to ask me for paperwork until I asked the $64,000 question: "Do you guys lend in HB 4050 in Illinois?"

The answer came almost before I finished the question: "No!"  My client was being denied a home loan just because of where he lives.

The shame of the story is in this very nice man's personal plight to dig himself out of trouble.  But, it's HB 4050 that is holding him down.  His assets -- his $125,000 in home equity -- are literally frozen because the one bank that would have given him access to it chose to deny the application because of Illinois HB 4050.

Now, with $110,00 in equity but no means to access it, the homeowner is facing the eventual loss of his home in foreclosure proceedings and may need to seek bankruptcy protection from his creditors.

HB 4050: The First Month Of Statistics Roll In

With access to MLS, anybody could put together these figures. 

With access to Common Sense, anybody could have seen this coming.

September 2006 is the first month of the 4-year pilot program known as the Illinois Predatory Lending Database Act.  More affectionately, the law is called HB 4050.

If you are not up-to-date on how the state of Illinois is trying to curb predatory lending, read the complete review and commentary about the law.  Or, read this quick summary:

HB 4050 requires "High Risk" individuals to receive financial advice from HUD-approved counselors before completing a mortgage transaction. 

"High Risk" includes all applicants with FICOs less than 620, and some applicants with FICOs less than 650. 

The counselors can tell an applicant that his rate is above-avergage, and can recommend that an applicant go forward with the loan, look elsewhere for a new loan with better terms, or proceed with the loan. 

Federally-chartered banks are exempt -- the law only applies to mortgage brokerages.

Despite the clear language of the law, lenders are worried that if the law is not followed to the letter, their lien will not be legal.  In other words, they will lose their right to foreclose on the home.

So, as a matter of policy, some lenders -- 30 at my last count -- are not offering loans to residents of the pilot program's neighborhoods.

Compared to August 2006, sales were down 45% in the target zip codes.  The breakdown by zip code:

• 60620 experienced a 43% drop in sales
• 60621 experienced a 25% drop in sales
• 60623 experienced a 57% drop in sales
• 60628 experienced a 15% drop in sales
• 60629 experienced a 63% drop in sales
• 60632 experienced a 34% drop in sales      
• 60636 experienced a 41% drop in sales
• 60638 experienced a 54% drop in sales
• 60643 experienced a 49% drop in sales
• 60652 experienced a 43% drop in sales

Compared to September 2005, one year ago, sales were also down 45% in the target zip codes.  So, we can say with near certainty that the plummet is not strictly seasonal.  The breakdown by zip code:

• 60620 experienced a 28% drop in sales
• 60621 experienced a 37% drop in sales
• 60623 experienced a 61% drop in sales
• 60628 experienced a 17% drop in sales
• 60629 experienced a 70% drop in sales
• 60632 experienced a 54% drop in sales
• 60636 experienced a 1% drop in sales
• 60638 experienced a 65% drop in sales
• 60643 experienced a 49% drop in sales
• 60652 experienced a 41% drop in sales

Some neighboring zip codes saw drops, too, but not as significant:

• 60615 experienced a 19% drop in sales
• 60616 experienced a 38% drop in sales
• 60617 experienced a 48% drop in sales
• 60619 experienced a 17% drop in sales
• 60624 experienced a 26% drop in sales
• 60633 experienced a 58% increase in sales
• 60637 experienced a 17% drop in sales
• 60644 experienced a 17% drop in sales
• 60649 experienced a 1% drop in sales
• 60653 experienced a 13% drop in sales
• 60655 experienced a 21% increase in sales

One month is hardly enough for proof, but it looks like the HB 4050 zip codes are not faring as well as their neighbors. 

Surprise, surprise.

HB 4050: Chicago Public Radios covers HB 4050

Chicago Public Radio ran a story on the radio yesterday about HB 4050. 

With the coverage on Chicago Public Radio, two long-running thoughts of mine have been confirmed:

1. Radio is not dead.  People still listen to local news stations because the stories continue to be relevant.  Mass-market programming satiates, but micro-market programming enlightens.
2. I must have a face made for radio because the television stations haven't called yet.

I am thrilled that the HB 4050 story is making its way into more and more news rooms.  As an example, I just spoke with a reporter from the Cincinnati Enquirer about it, but this is just a beginning.  We need to see more stories specifically targeted to residents of the ten target zip codes.

As of October 1, there will be a full month's worth of real estate sales data to show how HB 4050 is impacting the target areas.  My guess is that after that date -- if the data is as apocalyptic as the loudest opponents of HB 4050 would believe it to be -- there will be a shift in the press will be toward Human Interest stories.

Those stories will create a lot of political pressure heading into the November Illinois elections.

HB 4050: Tribunes covers HB 4050 story. Finally.

Thank you, Mary Umberger.

Today, emblazoned on the front page of the Tribune's Business section reads the headline "Mortgage law under fire", with a large, above-the-fold photo of Robert Cordero and Alex Pellicano of Chicago.

Both had a pending property purchase thwarted because their lender was among those that will not originate loans in the Illinois House Bill 4050 target zip codes. 

Surprisingly, many neighborhod residents will learn about HB 4050 for the first time today when they grab the Trib.  For that reason, I wish that more stories highlighted the new law and how it is impacting people. 

Awareness seems to be the #1 issue.

HB 4050 : More Lenders Who've Pulled Out Of Target Zip Codes

From Scott Cheffer at Title Company of America comes this recent list of lenders and their response to HB 4050. 

The list is by no means comprehensive, but it gives you an idea of how few choices homeowners have for loans -- whether they trigger the counseling requirement or not.

1. GreenPoint temporarily suspending lending.
2. DK Lending suspending lending for the interim.
3. Emigrant has closed its doors in the Midwest.
4. New Century has suspended lending.
5. Ohio Saving Bank has temporarily suspended lending in the area.
6. Expanded Mortgage Credit has suspended funding.
7. First Horizon has suspended lending.
8. Argent has established practices on all loans in the area.
9. HSBC has established new lending policies.
10. Maxim Mortgage has temporarily stop lending in the area.
11. MILA has suspended lending
12. Irwin Mortgage has suspended lending
13. Credit Suisse has established new lending policies
14. National City has stopped lending on certain products and established new closing procedures
15. Morgan Stanley is requiring results from Counselor (again this is not possible through the system)
16. Molton, Allen, Williams has suspended lending as of September 1.
17. Capital Financial has temporarily suspended taking any applications.
18. WMC has temporarily suspended taking applications.
19. Aegis Funding has suspended taking loans in Cook County.
20. Webster Bank has suspended lending in the zip codes
21. Flagstar Bank has temporarily discontinued lending in the 10 zip codes.
22. HLB is not going to take locks in the 10 zip codes.
23. Peoples Choice Mortgage has temporarily suspended taking applications.

So, if you live in 60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643 or 60652, you now have fewer mortgage "stores" at which to shop. 

Fewer "stores" means less chance that the best home loan product for your financial goals can actually being "sold" to you.  You may have to settle for something imperfect.

HB 4050: Take control. Vote.

Today is September 1, 2006 and the Illinois Predatory Lending Database Act (House Bill 4050) is now law, and implemented.

If you are unhappy about this, here is the complete list of HB 4050's sponsors.  Do something constructive with your anger -- vote your representative out of office.

House Sponsors
Michael Madigan voted for Illinois HB 4050
Susana A Mendoza voted for Illinois HB 4050
Barbara Flynn Currie voted for Illinois HB 4050
Eddie Washington voted for Illinois HB 4050
Harry Osterman voted for Illinois HB 4050
Lisa M. Dugan voted for Illinois HB 4050
Daniel J. Burke voted for Illinois HB 4050
Mary E. Flowers voted for Illinois HB 4050
Milton Patterson voted for Illinois HB 4050
Kenneth Dunkin voted for Illinois HB 4050
Deborah L. Graham voted for Illinois HB 4050
Patricia Bailey voted for Illinois HB 4050
David E. Miller voted for Illinois HB 4050
Richard T. Bradley voted for Illinois HB 4050
Karen A. Yarbrough voted for Illinois HB 4050
Arthur L. Turner voted for Illinois HB 4050
Lovana Jones voted for Illinois HB 4050
William Davis voted for Illinois HB 4050

Senate Sponsors
Martin A. Sandoval voted for Illinois HB 4050
Jacqueline Y. Collins voted for Illinois HB 4050
Miguel del Valle voted for Illinois HB 4050
James T. Meeks voted for Illinois HB 4050
Mattie Hunter voted for Illinois HB 4050
Louis S. Viverito voted for Illinois HB 4050
Kimberly A. Lightford voted for Illinois HB 4050

If you want to change your world, start by voting for new elected officials.  After all, this is how democracy works.

HB 4050: Search Engines Everywhere Agree, The Mortgage Reports Is A Source for HB 4050 Information

Over the past 7-10 days, the blog has been receiving a redonkulous amount of traffic.  The majority of the hits are tracking Illinois HB 4050, the Illinois Predatory Lending Database Act.

This disturbs me.  Check out the number of Google searches that The Mortgage Reports is ranked in the Top 5:

• HB 4050
• Illinois HB 4050
• House Bill 4050
• Illinois House Bil 4050
• Cook County Mortgage Zip Codes
• HB4050
• HB4050 law
• Cook County Illinois Predatory Lending pilot
• IL 4050
• "Ben Savage" "Dan Green"

With such an important issue at hand, I am surprised to find that The Mortgage Reports is a top-ranked source for HB 4050 information.  After all, this is just a blog...

Either this blog represents a turning point in providing information to the public, or the public isn't demanding enough attention from the mainstream media.

HB 4050 : Illinois House Bill 4050 Due Friday

Effective Friday, September 1, Cook County will not record a mortgage without either a Certificate of Exemption or a Certificate of Completion stating that the law formerly known as Illinois House Bill 4050 has been abided by.

New to HB 4050?  Just read along and form your own opinions.

The law is restricted to 10 zip codes in Cook County:

• 60620
• 60621
• 60623
• 60628
• 60629
• 60632
• 60636
• 60638
• 60643
• 60652

The areas are highlighted in the map at right and the law applies to all mortgages for any property in the zones, residential, commercial or otherwise.

I took two applications last week in the target zip codes and had to tell my clients that I won't be able to fund their mortgage after September 1 because lenders are unilaterally "pulling out" from the area.  Too much risk, they are saying.

So, my clients are just sitting and waiting for the law to be repealed in court, or for lenders to start funding mortgages again.

If you have opinions, or have more information about HB 4050, please share it.  I beg you.  I only know what I hear and what I read and I rely on you all for that as much as you rely on me.

A few questions I'd like to have answered:

1. How many training sessions were offered by the state and how many "workers" in Illinois must be aware of how the law impacts them (i.e. title companies, counselors, loan officers)?
2. If you went to training, what did you learn?  What did you think of the curriculum?
3. How long will it take Cook County to record a mortgage because lenders won't release funds until the certificates are issued?
4. What is the expected cost increase for a title policy?
5. Has the press picked up this story at all?
6. What if the state-run database is not ready September 1?
7. What metrics is the state using to determine the program's success?
8. What sub-prime lenders are still funding in the target area after September 1?

As usual, please leave COMMENTS instead of emailing me.  Everyone can benefit from hearing the (constructive) thoughts of the group.

HB 4050 : Brain Dumping Updates

This afternoon, the faxes started rolling in about lenders pulling out of the 10 ZIP code associated with the Illinois Predatory Lending Database Act, formerly known as Illinois House Bill 4050.

Over the past few weeks, news has been trickling in about what we should all expect and many of you have shared that information with me.  A special thank you to Scott Cheffer of Title Company of America and Chris Rocks of Clybourn Financial for the good info.

I highly encourage you to read about the law and my prior posts about the law before reading ahead -- even if you just need a refresher course.

My random thoughts about HB 4050 right now are as follows:

(1)  The state has a Web site that seems like a lot of propaganda, but contains some good information.  I recommend reading it sometime.

(2) The state has only five training sessions listed for title closers and "housing counselors".  The only broker training session listed has no date or time.  That sort of training for all of Illinois' mortgage industry personnel won't cut it.  But, not only is training lacking, so is awareness of training.  Until I visited the site personally, I had no idea that training was even offered to me as a loan officer.

(3) There are 40 counselors in the state and there are 700,000 homes in the impacted area.  If just 10% of the impacted homes require new mortgages and of that 10%, just 1 in 5 of those mortgage applicants triggered the HB 4050 counseling requirements, that leaves 14,000 people who require training and just 40 counselors to handle them.  That equate to 350 people per year per counselor.

(4) The cost of counseling is $300 and that cost must be paid by the mortgage lender.  It may not be passed on to the mortgage applicant.  If an average mortgage of HB 4050-impacted homes is for $100,000 (and that is a complete guess), and if the average earnings per transaction is 1.5% for a lender, that means that a broker will forfeit 20% of his commission ($1,500 / $300) just to work with a HB 4050 client.  That's a huge hit to profitability.  I am not sure how it will be governed, but I do expect that many lenders will indeed build that cost into the mortgage somewhere.

(5) Mortgage brokers cannot refuse to take the application of a person who lives in an HB 4050 zip code.  No problem there -- a broker can take as many applications as he wants, but can't get the loans funded if lenders won't lend their money.  The law must have missed that loophole.

(6) If the law is not followed to the letter, the mortgage lien becomes unenforceable.  Therefore, lenders would lose their right to foreclose.  Or, to put that differently, homeowners would have zero incentive to pay their mortgage each month.  It's no wonder that lenders are refusing to lend in the zip codes -- there is too much risk for them.

(7)  It takes Cook County about 30 days to properly record a new lien and HB 4050 liens will require the same amount of time.  They will only be recorded if the new mortgage abides by the law and all steps have been followed properly.  Lenders know that is the lien is recorded, then the law must have been followed and the mortgage, therefore, is enforceable.  In other words, home sellers may have to wait up to 30 days for the proceeds from their home sale.

(8) Because Cook County requires 30 days to record a lien, closings are expected to be "dry", meaning that funds will not be available at closing.  This is good news for the brokers that can't seem to get their funds to the table on time anyway.  ;-)

(9) IAMB is not working this issue as hard as they need to be.  The Chicago Association of real estate agents has sent over 100,000 pieces of mail to real estate agents and the community.  They've been on WCKG, WLS, and all over the news.  And, to top it off, the logs of this blog show at least 10 hits per day from the CAR Web site.  I have never had one hit whatsoever from IAMB's.  I have also never received a phone call, or a letter informing me of what HB 4050 even is.  If my trade organization was as well organized (and funded) as CAR, maybe this conversation wouldn't even be happening.

(10) Town Hall meetings don't work.  Voting works.  If you want to change something, show up at the voting booths and vote your representatives out of office.  Period.  Just like the Unions, organize your people to vote for the candidates that are good for business.  You may personally believe that Blagojevich is a good person, but if he is presiding over the death of your business, vote him out.

(11) Speaking of sponsors, here is the complete list of HB 4050's sponsors:

House Sponsors
Michael Madigan
Susana A Mendoza
Barbara Flynn Currie
Eddie Washington
Harry Osterman
Lisa M. Dugan
Daniel J. Burke
Mary E. Flowers
Milton Patterson
Kenneth Dunkin
Deborah L. Graham
Patricia Bailey
David E. Miller
Richard T. Bradley
Karen A. Yarbrough
Arthur L. Turner
Lovana Jones
William Davis

Senate Sponsors
Martin A. Sandoval
Jacqueline Y. Collins
Miguel del Valle
James T. Meeks
Mattie Hunter
Louis S. Viverito
Kimberly A. Lightford

If you want to change your world, start by voting.  Heck, if 18-year incumbent and Iraqi War supporter Joe Lieberman can lose his own party's primary election to a political unknown because his support for the war alienated his constituents, why can't Illinois residents do the same thing on supporters of HB 4050?

(12) Re-read #11.  Take your business seriously and take control of your elected officials.

(13) September 1 is the supposed implementation date.  I don't think the database will be ready, nor will the state be ready.  I still see October 1 or later as a more realistic date, but it's not my call, of course.

Alrighty.  That was some brain dump.  Hope it helps you see more of what's ahead in Cook County.

HB 4050 : Lending Shutdown Recommences

I will draft a more complete update later tonight, but I just received a fax that NovaStar has suspended lending to HB 4050 ZIP codes in Cook County beginning August 31, 2006.  Loans not funded by August 31, 2006 will not fund at all, as of today.

From NovaStar:

LENDING IN COOK COUNTY, IL

There have been recent ordinance changes by Cook County, Illinois. Please see the list of ZIP codes impacted by the ordinance below. As NovaStar reviews and assesses the impact of these changes, we will temporarily suspend lending activities for properties in the affected ZIP codes. We will only resume lending activities when we are comfortable we can fully comply with the regulation. Loan applications for impacted Cook County, IL properties must be received by August 10th and locks and commitments must also be made by that date. All loans for impacted Cook County properties must be funded by August 31st.   

Affected ZIP Codes: 60620, 60621, 60623, 60628, 60629, 60632, 60636, 60638, 60643 and 60652.

If you have Cook County loans in the pipeline that are impacted, we apologize for any inconvenience this may cause you and your borrower. Please contact your AE and or NovaStar Solutions (877-480-3939) with your questions or concerns.

Let the chaos begin...

HB 4050 : Illinois Broker Fines Reaching $200,000

According the Illinois Department of Financial and Professional Regulation, $190,750 in fines related to mortgage broker regulation in Illinois have been levied. 

Most of the fines stem from non-state registered loan officers processing loan applications.  The IDFPR released a statement in April about the busts they've made. 

Given some of the law-skirting practices that I hear about in some of the sketchier mortgage shops around Cook and the collar counties, this is a smaller number than I expected. 

Or, it could be that the industry regulation positively impacting the mortgage brokerages in Chicagoland.  Now that criminal background checks are required to be licensed, and a formal testing process is in place for all originators, a lot of the riff-raff may have already been expunged from the mortgage industry.

This is one of the reasons why the Illinois Predatory Lending Database Law (HB 4050) may be overkill.  Many prior offenders may be gone from the business of origination because they couldn't procure an Illinois Loan Originator license.

How Illinois is eliminating "bad" LOs is sort of silly -- there is no control group. 

In business, it's similar to running two long-term marketing campaigns at once, and then trying to determine which campaign was more effective.  In three years, we'll look back at mountains of Illinois loan origination data and not know whether professional regulation was the difference-maker, or "protecting" at-risk borrowers was.

But for now, the state is throwing thousands (millions?) of dollars at trying to fix a Predatory Lending problem that it may have already fixed with industry regulation and watchdogs.  It takes time for new regulation to reveal itself in the market and the state hasn't let enough time pass.

HB 4050 : State-run HB 4050 Web site launched

The Illinois Department of Financial Professional Regulation launched a Web site called "House Bill 4050 Web site" at http://www.hb4050info.com.

The site's usability does not meet general Web standards, but it contains useful information -- especially in the FAQ section.  This is the first example that I've seen of the state making an effort to answer concerns about the bill.

For example, the Web site asks itself the question: "How can the Department take on this much additional responsibility?  Does it have the resources to make this work?"

Then, it answers:

"In addition to establishing the pilot program, the legislation appropriated an additional $3 million to implement the program. This will allow the Department to establish the database and hire about 20 new people to run the pilot program."

The state released the site too soon, but it is clear that the IDFPR is trying to be more forthcoming with relevant information for consumers.

HB 4050 : Brian Bernardoni speaks out on HB 4050

Brian Bernardoni of the Chicago Association of REALTORS (CAR) recently presented to the Southwest Realty Board about HB 4050.  He made the speech publicly available and I wanted to pull out some key ideas.

You'll remember that Illinois House Bill 4050 was passed into law and is awaiting implementation by the state.  The law mandates financial counseling for "high risk" borrowers, as defined by the state. 

CAR's stance is that HB 4050 is discriminatory, akin to the redlining of 1975.  State legislators purport that HB 4050 protects Cook County's most vulnerable homeowners.  Both sides have legitimate concerns, but the state has not articulated its vision as clearly as Bernardoni.

From Brian's speech (part I):

"History tells us that when great changes occur in our public policy; when great principals are involved; as a rule the majority is wrong and the minority is right.  In that, great efforts must take place to undo these changes.  In the case of HB 4050 there is no question the Governor and the General Assembly were wrong and we in turn are right.  Here great effort is needed."

"I pause to say this in that real estate agents in Chicago and across Illinois as a group are not used to being in the minority.  We are perhaps victims of years of legislative success at City Hall and the County Building; in Springfield and in Washington DC."

(Part II):

"In short, we must educate an indifferent majority on this issue and bring to them our understanding of this bill and its impact on real estate, communities and the public at large.

"Those who pushed this bill; including Jim Capraro of the Southwest Development Corp did not allow for the time; did not allow for a venue to create a dialogue for that critical discourse - primary in a democracy to take place.  This was not good faith negotiations.

"In less than two weeks time, with no time to review final language - HB 4050 was passed. 

"In fact; as in the documents I have distributed to some of you disclose; HB 4050 passed as “negotiations” were taking place in Chicago.  While Capraro talked about workable solutions in that meeting and suggested that we would have a summer 'to work out the details' he now gloats in the press and I quote:

At one point we had a big meeting in our office with about 10 people from the industry, listening to their reasons not to support the bill. Later I found out that while the industry people were busy at our meeting, members of the Illinois House had passed the bill!

"This issue has been an agenda item for IAR and CAR since 2004.  The Public Policy Meetings of IAR and the Government Affairs Committee of CAR as well as the respective Boards, at the State and at CAR opposed it actively in 2005. 

"I need to advise you that in those negotiations with the Speakers Office and Capraro that Friday afternoon that there was no deal being made by IAR or the other parties.  There was no compromise offered.  We opposed the bill from the very beginning.

(Part III)

"I have always encouraged you to get involved.  To not rely on liaisons for information but to go to the source.  Now, as always, you have that opportunity to make an impact on your business and your Association. 

"From board opportunities to committee chairmanships - this is the opportunity to take the Indifferent Majority into an Engaged Majority that works for us.  That is up to each of you.

"We ask you to tell us what is happening in the field.  If lenders are not lending; we need to know.  If title companies are suggesting they will not work with you; we need to know.  Facts will prevail over hyperbole and your efforts to work with us and to enjoin are efforts are critical.

Brian's speech is a call to action for real estate agents in Chicago.  The full text of the speech can be found here.

HB 4050: Updates from the IAMB

The IAMB recently sent a HB 4050 update to its members.  Here is a brief recap of that email and my comments.  I left all IAMB spelling and grammar mistakes intact.

Point #1 from the IAMB:
Veritec the company that is developing the Database is still building the database and upon completion there will be training and beta testing. Thus, an estimated start date of May or June. 

My comments:
Training and beta testing is not a speedy process.  Neither is building a database for that matter.  The biggest hurdle in dealing with state agencies is the deadly amount of bureaucratic oversight. 

Once the database is built, expect that it will need to be "tweaked" and adjusted to meet new requirements (more on this later).  Beta testing is the "dry run" of the database.  Never, never, never does this work on the first try. 

Beta testing is the equivalent of buying a suit off the racks.  It's a suit, but it doesn't really fit anybody.  It takes two weeks to tailor a suit; it takes much longer to tailor a complex database. 

The state says May or June?  I say August or September at the earliest.

Point #2 from the IAMB:
Negotiations with counselors is ongoing as to how the counselors will be paid and when. The counselors are also concerned about liability resulting from the counseling as the law is written.  The IAMB along with the other counseling groups have offered to write a counseling program that would be generic and cover the mortgage process as well as the programs and required disclosures. This would reduce the number for re-counseling demands we hope.

My Comments:
This is a positive step towards ensuring that mortgage applicants' time and money is respected and perserved.

Point #3 from the IAMB:
No date has been set and it looks as though it will be at least another 90 to 120 days before full implementation.

My Comments:
Take the estimate, and multiply it by 150%.  More realistic time frame: 135 to 180 days.

Point #4 from the IAMB:
As I have been saying that it would be surprised that legislative relief would come, well I have been surprised. SB895 was submitted this week, which allows the IDFPR to delay the implementation until such as they feel comfortable the system will work. Also, it allows the title companies to file the Counseling Certificate with the mortgage to save money for the consumers. The IAMB has requested a change of the term Credit Counseling to Mortgage Counseling to reduce the risk to the consumer on having their credit score hurt. Stay tuned.

My Comments:
It appears that the state is watering-down HB 4050, and giving the IDFPR a legal "out" from ever implementing the law.  For example, if IDFPR never "feels comfortable that the system will work", they can delay it indefinitely. 

The state has also addressed a major lender concern by changing the verbiage of "credit counseling" to "mortgage counseling".  To the layman, the subtlety gets lost.  To lenders, though, credit counseling is just a non-court-protected form of Chapter 13 bankruptcy.  Mortgage applicants with consumer credit counseling on their credit reports are usually treated the same as applicants with a history of bankruptcy.

HB 4050: The Worst Way to Deal

So, I check my logs fairly frequently to see where my hits are coming from.  Call it vain, but it's important to me to know who's "referring business" this way.

A large percentage of the hits come aren't referred which tells me that people are getting our RSS feed, or connecting to us directly from My Yahoo!.

Today, though, a few stray hits came from Craig's List.  This was some rant.  I am all for getting the word out in any way possible, but using fear as a motivator is no way to go about your business.

I have many, many opinions.  You probably know that by now (especially if you are a loyal reader).  But, I always speak objectively and based in fact.  I will speculate, but I will also tell you that I am speculating.

Aside from not being fact-based, the author of the post foretells his view of the future:

• Mortgage Brokers will go out of business
• Lenders will not do business in Cook County
• Title companies will not do business in Cook County
• No Money Down programs will no longer be offered
• The state database will be easily hackable

He also lists all of the Cook County zip codes as being part of the Pilot Program (which is incorrect).

Then, the kicker -- the author says that Madigan "is getting paid".

Okay, like I said. I am okay with the airing of the grievances.  I am even okay with me using that reference twice in four days.  I am not okay with fear-mongering, or mis-representation of the facts.

This is so little information available about HB 4050 that the public will likely find out by accident.  The press isn't covering it all that well and there is a complete dearth of industry awareness programs.

So, when somebody posts ridiculous stuff like the Craig's List post, it only makes the awareness issue harder because people are in fear, instead of being in a state to deal with the issue.

The state doesn't want to shut down homeownership options anymore than the rest of us do.  The shame is that when the law was being debated in March-May 2005, nobody stood up to complain.  No, they're all doing that now instead. 

Consider it a "lesson in civics", as a friend in the title business likes to say.

Time will tell about HB 4050 and its implications on homeownership in the impacted areas.  But, for now, we must all learn to live within the law rather than complain about it.

As always, I recommend reading HB4050: Everything You Need To Know (January 28, 2006) Edition.  It's got everything I think that is relevant.  If I am missing anything, leave a comment and chime in.

HB 4050: Updates from IAMB Breakfast

I attended a IAMB-sponsored event this morning.  The hot topic?  HB 4050, of course.

IAMB Executive Director Marve Stockert began the meeting by reminding everyone: "4050 is a law, and you have 10 zip codes".  The event was intended to inform brokers in the Chicagoland area about HB 4050, but there was very little information revealed that readers of this blog don't already know.

Here is my take on the event highlights:

1. The state has selected a vendor to build the state database.  That vendor is Veritech.  I can't find much about them on the Internet.  Can anybody provide a URL...?
2. Banks and Savings & Loans remain exempt from HB 4050.  Only mortgage brokers must comply.  I want to remind people about that.
3. The fruit served at the breakfast buffet was surprisingly sweet and juicy.  Kudos to the Carlisle, an otherwise dumpy venue that looks like a 70's holdover.
4. A broker expressed his HB 4050 concerns to the room: "People will end-around brokers entirely and go directly to banks for mortgages."  And that is because the law only applies to brokers. 
5. The same broker questioned House Speaker Madigan's allegiances to the banking industry and he was politely rebuffed by the IAMB for making unsubstantiated claims.

Representatives from Illinois Land Title Association, and from the state, were also on hand to give brief speeches.  Neither provided new information, but their talks revealed to the crowd that there are still plenty of question marks.

For example:

1. Is the credit counselor paid by the broker at the time of counseling, or at closing?
2. If a credit counselor recommends that an applicant seeks a mortgage elsewhere, and the applicant does so, which originator is responsible for paying the credit counselor?
3. Is it considered discriminatory if a loan officer, mortgage lender, or title company refuses to do business in a Pilot Program zip code?
4. How will title companies know if an applicant is required to attend counseling?
5. How will title companies verify that counseling was completed?
6. When will the database be completed?

None of the questions could be answered with 100% certainty which makes me believe that the implementation of HB 4050 is still a 6-9 months away.  This is my opinion, of course.  A representative of the Division of Banking told us all to think "Spring/Summer" for implementation.

HB 4050: Everything You Need to Know (January 28, 2006 Edition)

UPDATE 3 (Mar 21,2007): HB 4050 IS REDRAFTED TO APPLY TO ALL BORROWERS IN ALL OF COOK COUNTY.  GET THE LATEST ON THE STORY.

UPDATE 2: HB 4050 HAS CHANGED ITS DESIGNATION AREA TO "NO ZIP CODES OR AREAS WHATSOEVER".  READ MORE ABOUT IT.

Update: Since this post went live in January 2006, we've spent a lot more time writing about HB 4050. 

Instead of starting in the middle of the story, read everything about HB 4050 in chronological order.

We've covered Illinois House Bill 4050 -- the Illinois Predatory Lending Database Law -- 17 times.  The story has been a moving target of sorts, so for those coming late to the party, here is the brief run-down:

• HB 4050 is a pilot program in Cook County (Illinois) designed to protect mortgage applicants from unscrupulous loan originators. 
• The pilot program lasts four years.
• HB 4050 was passed in July 2005 and became Illinois state law January 1, 2006.  It will not be implemented and enforced until the physical database to compile and store data is completed, however.
• HB 4050 applies to state-chartered loan originators (i.e. mortgage brokers and local mortgage bankers).  Therefore, federally-chartered banks are exempt (i.e. Chase, National City, Fifth Third, Bank of America) from the law.
• HB 4050 requires "High Risk" individuals to receive financial advice from federally-approved financial counselors before completing a mortgage transaction.
• The definition of "High Risk" is stated in the rules of the law.  These are summarized as follows:
  • Applicant FICO score is less than 620, or
  • Applicant FICO score is between 621-650 and any one of these conditions is true:
    • Subject property was financed within the last 12 months
    • Mortgage product has an Interest Only feature
    • Mortgage product is an ARM with an initial fixed period of 3 years or less
    • Mortgage application does not require the verification of applicant's income
  • Mortgage product contains a prepayment penalty
  • Mortgage product contains a negative amortization feature (i.e. Option ARM)
  • Total points and fees payable by borrower at, or before, closing exceeds 5% of the loan size
• HB 4050 does not apply to all of Cook County.  It only applies to designated zip codes.  This is a map of those zip codes.  We also created an overlay map of the pilot program with a map of areas in which mortgage fraud has occured.

Some industry parties are concerned about Illinois House Bill 4050:

• Title companies are concerned about their ability to navigate HB 4050 in order to provide a clean title policy.  They have asked the state for "Safe Harbor" (i.e. "we'll do our very best to comply with the law in good faith, but please don't hold us responsible for other companies' errors, omissions and falsehoods").  That request was denied.
• Lenders are concerned that title companies cannot provide clean title.  That means that a lender will forgo its right to foreclose on a non-performing loan.  In other words, a homeowner has no incentive to pay the mortgage because the lender won't legally be able to take the home back.  No right to foreclose = no money lent to homeowners.
• Consumer Rights Advocates are concerned that employees of the state, of brokers, of lenders and of title companies will have access to a single database that stores every detail about a mortgage applicant's life -- social security number, credit history, income, address, date of birth, assets, employment and more.
• real estate agents are concerned that the difficulty in acquiring mortgage financing will depress, or halt, home buying in impacted areas.
• Community leaders are concerned that the pilot program will extend the mortgage approval process and will add "time costs" for the homeowner.  It is more expensive to lock a loan for 60 days than for 30 days, as an example.
• The Illinois Association of Mortgage Brokers is concerned on a number of fronts, mostly raising questions to the practicality of the law.
• This author is concerned that federally-chartered banks are in the business of collecting deposits, not the business of assessing risk of and lending money for mortgages.  Therefore, these banks tend not to lend money to folks with FICO scores lower than 650 (although some will on a case-by-case basis) -- it's too much risk for the bank.  So, if federally-chartered banks won't lend below 650 FICO score, homeowners may be left without any options for mortgages whatsoever.  This problem is exacerbated for sub-620 FICO homeowners.

Read the complete rules of Illinois House Bill 4050 if you want to see the law in print (Download HB4050Rules.txt).

If you'd like to read all of the HB 4050 stories on The Mortgage Reports, they are summarized neatly by category.

HB 4050: How Mortgage Fraud and the Illinois Predatory Lending Law Match Up

Recently, David Jackson of the Chicago Tribune began an investigation into mortgage fraud in Chicago. 

The original series ran for five days, covering five different angles.  Mr. Jackson has since ran follow-up articles. 

All in all, great stuff.

In one of the pieces, the Tribune ran a graphic that showed where mortgage fraud has been reported within Chicago city limits.

Using that image, and a Zip Code-friendly grid of Chicago (courtesy of the Chicago Reader), we can see how mortgage fraud and Illinois House Bill 4050 match up.

The images didn't match up exactly, but it's pretty darn close (after Photoshop) and that allowed us to overlay the two.

The overlay is pictured here.  And it raises some concerning observations about the HB 4050 Pilot Program.

For example:

1. All of the areas targeted by the pilot program are south of Roosevelt Road.  There are huge pockets of fraud activity north of Roosevelt but those neighborhoods are not included.
2. There are zip codes in which no fraud was reported but are the subject of the pilot program.
3. Rogers Park (60626) is not included in the pilot program.  Remember that Rogers Park is the midst of a huge gentrification and is the southern neighbor of affluent Evanston.
4. South Shore (60647) is not included in the pilot program.  This is another gentrification area and a real estate speculation zone for builders, developers, and the city of Chicago.

All in all, it appears that politics may have played a bigger role in defining the pilot program zip codes than did mortgage fraud activity in those zip codes.

HB 4050: Zip Codes Impacted by Illinois House Bill 4050

The Illinois Department of Financial and Professional Regulation posted the Illinois House Bill 4050 (Predatory Lending Database) Zip Codes today. 

The HB 4050 Zip Codes are:

• 60620
• 60621
• 60623
• 60628
• 60629
• 60632
• 60636
• 60638
• 60643
• 60652

Notice a pattern?  The South Side.

My guess is that most residents of these communities have no idea what just happened to their home values.  "Plummet" isn't even a strong enough word.

My next task will be to overlay the map at the right with a map of Chicago mortgage fraud cases to see what the correlation is.

The IDFPR beat their February 1, 2006 deadline to define the Zip Codes, but revealing the areas on a Friday is very much like the Elian Gonzalez case. 

If you'll remember, the case was highly politicized and polarizing to the nation.  So, on a quiet Saturday morning -- while all of the newsies slept in their beds -- the Feds stormed Elian's caretaker's home and returned him to Cuba.

Clearly, state legislators tried to minimize public outcry.

HB 4050: Religious Leaders Fire Back

This press release came across my desk today regarding Illinois House Bill 4050.  It's a lot more release than it is press, but whatever. 

Here is the note, unaltered.  My comments are at the bottom.

Bishop Willie L. Jordan Sr., Cook County Residents, Business and Religious Leaders Outraged at Rep. Michael Madigan’s HB4050 on Lending Practices at Open Forum on January 13th

Bishop William L. Jordan Sr. of St. Mark Covenant Churches Fellowship, Marve Stockert, Executive Director, Illinois Association of Mortgage Brokers and members from the religious, mortgage and real estate Cook County community discussed their disapproval of Rep. Michael Madigan’s House Bill 4050 on home lending practices.   Members of the State of Illinois Department of Financial and Professional Regulations were present to defend the bill at the Forum which took place at Noon on Friday, January 13, 2006 at St. Mark Missionary Baptist Church in Chicago’s South suburb of Harvey, IL.

House Bill 4050 claims to address the issue of high foreclosure rates and lending practices in Cook County by establishing a predatory lending database pilot program within certain zip code areas.  The intent appears to be admirable, but upon deeper investigation, this bill has infuriated the mortgage, real estate community and now top religious figures after realizing the unfairness of this House Bill as it only pertains to mortgage companies, but not banks; certain zip codes, primarily minority communities (African-American and Latino); licensed IL loan originators which work for mortgage brokers, yet bank loan officers are not required to be licensed by the State of Illinois and are exempt from HB4050.  The bill has been sponsored and passed by various House and Senate members including Rep. Michael J. Madigan, Daniel J. Burke, David E. Miller, Lovana Jones, and William Davis; Sen. Louis S. Viverito, Martin A. Sandoval, and James T. Meeks.

House Bill 4050 will damage the mortgage and real estate industry in Cook County, but most importantly it will hurt the consumers it aims to help.  This legislation will add an average of 30-45 days to the lending process, as the State, specifically the Department of Financial and Professional Regulation (DFPR), will require mortgage brokers to submit personal information on all borrowers within designated zip codes, to determine if credit counseling, which the borrower may not waive,  is necessary.  The lending process currently averages 15-30 days, but now with HB4050, home buying for certain individuals can last 2-3 months.  As noted on the State’s legislation webpage (www.ilga.gov/legislation), "The Department may use the information in the database without the consent of the borrower".

A concerned citizen and IL mortgage professional notes "This bill is definitely about unfair lending practices...it’s about eliminating competition, which is bad for consumers, by making the banks exempt from HB4050, disclosing back end fees, and hiring licensed loan originators.  However, I, as a licensed loan originator working for a mortgage broker, must add an additional month to my loan process because the government wants to lead consumers away from mortgage brokers, who often times find competitive rates from various lenders and provide an opportunity for home ownership when banks reject them.  The government wants an excuse to violate our privacy rights and eliminate competition.  I find it very suspicious that the banks are completely exempt from disclosure and this bill".are they behind this bill?  Is Madigan and/or the other politicians receiving large contributions from the banking industry?  Or, why are they trying to hurt my job and potentially eliminate mortgage companies and the jobs of thousands of Illinois loan officers, real estate agents, and the hopes of many people to own a home."

Unfortunately, the forum concluded with Dean Martinez, Acting Secretary for the Illinois Department of Financial and Professional Regulations, providing no consolation to those opposing HB4050 among them, a group of concerned priests who indicated that when they attempted to seek loans for their churches, it was the mortgage brokers who assisted them when the banks turned them away.  Many of those present, including Bishop Jordan, were disturbed at the fact that this bill passed without the complete understanding and knowledge of consumers, real estate agent s, and even most mortgage brokers and lenders.  The State emphasized that the bill has passed, but Bishop Jordan insisted that there must be a way to "amend this bill" in order to allow for consumer petitions and dialogue in this crucial matter in town hall meetings.

Those interested in learning more about the threats that HB4050 poses to consumers, IL employment, and the real estate and mortgage industry may contact any of the following individuals, Bishop William Jordan of St. Mark Baptist Church, 708-333-2800; Father William Stenzel of St. Bede, 773-582-9100; Aux. Bishop Charles Jones of St. Mark, 708-333-2800, representing the voice of the people and not government.

Okay, did you get all of that?  Here are my notes -- good and bad:

• Key point: Mortgage brokers helped when the traditional banks could/would not.  That is a key function of brokers -- find the best source of money.
• Quantifying the "time" is essential to understanding obstacles HB 4050 puts up.  "2-3 months" may be an unfair estimate, but then again, maybe not -- we just don't know yet.
• If you're going a use a quote, name your source -- and don't abbreviate.  "A concerned citizen and IL mortgage professional notes..."  That's Bush League.
• Great job in naming the sponsors.  May your district residents have long memories, folks.
• I am not quite sure how mortgage lending became a religious issue.  "This bill has infuriated the mortgage, real estate community and now top religious figures"...
• Speculating why the law passed may have weakened this statement, but it may have also given the media something to investigate.  Smart move.

Today is January 25, 2006.  Remember that the state has until February 1, 2006 to define the zip codes impacted by HB 4050.  That is a few short days away, and these religious leaders must be thinking that their neighborhoods are in the crosshairs. 

HB 4050: Lawsuits Pending for Illinois