No, we are not aware of any Illinois requirements that would supersede Regulation Z’s requirements for disclosing rate-lock agreements in the Loan Estimate.

The Illinois Administrative Code citation is from a section of the administrative rules for the Residential Mortgagee License Act of 1987 that addresses rate lock agreements and fees. However, that law and its accompanying administrative rules are inapplicable to banks (including national banks) and their employees.

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.37(a)(13) (“For each transaction subject to § 1026.19(e), the creditor shall disclose the information in this section: . . . A statement of whether the interest rate disclosed pursuant to paragraph (b)(2) of this section is locked for a specific period of time, labeled ‘Rate Lock.’

(i) For transactions in which the interest rate is locked for a specific period of time, the creditor must provide the date and time (including the applicable time zone) when that period ends.

(ii) The ‘Rate Lock’ statement required by this paragraph (a)(13) shall be accompanied by a statement that the interest rate, any points, and any lender credits may change unless the interest rate has been locked, and the date and time (including the applicable time zone) at which estimated closing costs expire.”)

• Illinois Administrative Code, Residential Mortgagee License Act of 1987, 38 Ill. Adm. Code 1050.1335(a)(2) (“A) A Rate-Lock Fee Agreement shall be in writing and signed by both the licensee and prospective borrower and provided to prospective borrowers regardless of whether a fee is collected or the interest rate is locked or floating.

  B) The Rate-Lock Fee Agreement shall state all of the following: i) The expiration date of the Rate-Lock Fee Agreement; ii) The amount of the loan; iii) The maximum interest rate of the loan; iv) The term of the loan; v) The maximum discount (points) to be paid; and vi) That the interest rate is locked or the interest rate is floating.

  C) The licensee shall be able to demonstrate to the Director that: i) The licensee is able to perform under the terms of the Rate-Lock Fee Agreement; ii) Subject to verification, the information submitted by the borrower indicates that the loan will be approved in accordance with the Rate-Lock Fee Agreement; and iii) The Rate-Lock Fee will be credited to the borrower at closing.

  D) The Rate-Lock Fee shall be deposited in escrow by the licensee in accordance with the requirements of Section 1050.440 of this Part.

  E)  A Rate-Lock fee may be collected by a licensee even if a loan does not close if: i) The fee was disclosed in the Rate-Lock Fee Agreement provided to a borrower and signed by the borrower; and ii) A Rate-Lock was obtained by the licensee consistent with the Rate-Lock Fee Agreement and the borrower withdraws the loan application; or the borrower has made a material misrepresentation on the loan application; or the borrower has failed to provide documentation necessary to the processing or closing of the loan.”)

• Illinois Residential Mortgage License Act of 1987, 205 ILCS 635/1-3(a) (“No provision of this Act shall apply to an exempt person or entity as defined in items (1) and (1.5) of subsection (d) of Section 1-4 of this Act.”)

• Illinois Residential Mortgage License Act of 1987, 205 ILCS 635/1-4(d)(1) (“‘Exempt person or entity’ shall mean the following: (1) . . . any national bank, federally chartered savings and loan association, federal savings bank, federal credit union; . . . any bank, savings and loan association, savings bank, or credit union organized under the laws of this or any other state; . . .”)

• Illinois Residential Mortgage License Act of 1987, 205 ILCS 635/1-4(d)(1.5) (“‘Exempt person or entity’ shall mean the following: (1.5) Any employee of a person or entity mentioned in item (1) of this subsection, when acting for such person or entity, or any registered mortgage loan originator when acting for an entity described in subsection (tt) of this Section.”)