IBA Compliance Connection

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We have a loan secured by property in Cook County that is not occupied by the owner. The points and fees for the loan trigger the homeownership counseling requirements in the Residential Real Property Disclosure Act. However, is this loan exempt because it is non-owner-occupied?

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Yes, the loan is exempt because it is secured by non-owner-occupied property. The Residential Real Property Disclosure Act exempts loans that are secured by non-owner-occupied property. For this type of exempt loan, the Act requires a certificate of exemption to be attached to the mortgage for recording.

For resources related to our guidance, please see:

  • Residential Real Property Disclosure Act, 765 ILCS 77/78 (“Mortgages secured by non-owner occupied property, commercial property, residential property consisting of more than 4 units, and government property are exempt but require a certificate of exemption for recording.”)