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Our new mortgage document provider is prompting us to provide the Borrower Information Document under the rules for the Residential Mortgage License Act of 1987 (38 Ill. Adm. Code 1050.1110) for HELOC borrowers. Is that required? A lot of the information required in this document seems inapplicable to HELOCs. – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Our new mortgage document provider is prompting us to provide the Borrower Information Document under the rules for the Residential Mortgage License Act of 1987 (38 Ill. Adm. Code 1050.1110) for HELOC borrowers. Is that required? A lot of the information required in this document seems inapplicable to HELOCs.

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No, you are not required to provide the Borrower Information Document required by the Illinois Residential Mortgage License Act of 1987. That law does not apply to financial institutions. It exempts “any bank . . . savings bank, or credit union.” However, if your institution has subsidiaries or affiliates that are not banks, they are not covered by this exemption.

For resources related to our guidance, please see:

  • Residential Mortgage License Act of 1987, 205 ILCS 635/1-3(a) (The Act does not apply to an institution that is considered an “exempt person or entity.”)
  • Residential Mortgage License Act of 1987, 205 ILCS 635/1-4(d) (An “exempt person or entity” includes “any bank . . . savings bank, or credit union.”)