We have a branch in Illinois and would like to know when the new Illinois manufactured home purchase disclosure (effective January 1, 2022) must be provided — at the time of application or before the loan closing?

We believe that the disclosure must be provided before the loan closing, as it must be provided “when offering terms for a mortgage note for the purchase of a manufactured home . . . that has not been caused to be deemed to be real property.” Based on the wording of the statute, we do not believe you are required to provide this disclosure until you have made the determination to offer the loan to the borrower.

Additionally, we note that this disclosure requirement applies only to manufactured homes as defined in the Mobile Home Act (which excludes campers, recreational vehicles, and modular homes) and expressly does not apply to manufactured homes that have been converted into real property under the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.

For resources related to our guidance, please see:

Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2WWW(a) (“A lender, or agent of a lending company, when offering terms for a mortgage note for the purchase of a manufactured home, as defined in the Mobile Home Park Act, that has not been caused to be deemed to be real property by satisfying the requirements of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, shall disclose:

(1) any affiliation between the landlord and the lending company;

(2) that the loan is a chattel loan;

(3) that the terms of a chattel loan prohibit refinancing;

(4) that, depending on where the consumer affixes the manufactured home (be it property owned by the consumer or on certain types of leased land), the manufactured home may qualify as real property under the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act; and

(5) any other reason that prohibits refinancing.”)

Mobile Home Park Act, 210 ILCS 115/2.1 (“‘Manufactured home’ means a factory-assembled, completely integrated structure designed for permanent habitation, with a permanent chassis, and so constructed as to permit its transport, on wheels temporarily or permanently attached to its frame, and is a movable or portable unit that is (i) 8 body feet or more in width, (ii) 40 body feet or more in length, and (iii) 320 or more square feet, constructed to be towed on its own chassis (comprised of frame and wheels) from the place of its construction to the location, or subsequent locations, at which it is connected to utilities for year-round occupancy for use as a permanent habitation, and designed and situated so as to permit its occupancy as a dwelling place for one or more persons, and specifically includes a ‘manufactured home’ as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code. The term shall include units containing parts that may be folded, collapsed, or telescoped when being towed and that may be expected to provide additional cubic capacity, and that are designed to be joined into one integral unit capable of being separated again into the components for repeated towing. The term excludes campers and recreational vehicles. The term ‘mobile home’ shall not include modular homes and their support systems. The words ‘mobile home’ and ‘manufactured home’ are synonymous for the purposes of this Act.”)

Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act, 765 ILCS 170/5-1, et seq.