We believe you are required to provide an Illinois Mortgage Escrow Account Act disclosure at the mortgage loan closing for purchase loans but not for refinances.

The Illinois Mortgage Escrow Account Act requires you to provide this notice at the closing of any mortgage loan made for the purpose of purchasing single-family owner occupied residential property for which your bank establishes an escrow account at closing or retains the right to establish one at a later date. Consequently, you would not be required to provide this disclosure at the closing of a refinance transaction.

For resources related to our guidance, please see:

• Illinois Mortgage Escrow Account Act, 765 ILCS 910/11 (“‘Notice of the requirements of the Act shall be furnished in writing to the borrower at the date of closing.”)

• Illinois Mortgage Escrow Account Act, 765 ILCS 910/3 (“Escrow Accounts or escrow-like arrangements established after the effective date of this Act in conjunction with mortgage agreements for single-family owner occupied residential property are hereby declared separate and distinct transactions from mortgages and, hence, subject to the laws and regulations of this State.”)

• Illinois Mortgage Escrow Account Act, 765 ILCS 910/2(c) (“‘Mortgage Lender’ means any bank, savings bank, savings and loan association, credit union, mortgage banker, or other institution, association, partnership, corporation or person who extends the loan of monies for the purpose of enabling another to purchase a residence or who services the loan, including successors in interest of the foregoing.”)