Yes, Illinois law requires banks to send a mortgage servicing transfer notice, and the content of the Illinois notice differs from the content of the servicing transfer notices required by federal law.

The Illinois Banking Act’s requirements for the servicing transfer notice include (1) “the name and address of the transferee,” (2) “the name, address and telephone number to which inquiries by the residential mortgagor should be addressed,” and (3) “the name and address to which the next 3 monthly installments are to be submitted to the transferee and the amount of each of such monthly installment.” The notice is required only when servicing is being transferred “from the original mortgagee . . . .”

The third item of information in the Illinois notice — the amount and receiving name and address for the next three monthly installments — is not required by either the Regulation X or Regulation Z servicing transfer requirements. Your servicing transfer forms should include both the information required under those federal regulations, along with the Illinois-required information about the next three payments.

In addition, we note that the Illinois administrative rule cited by your forms vendor does not apply to banks. There is a separate servicing transfer requirement under the Residential Mortgage License Act of 1987, but that law does not apply to banks (nor does its administrative rules).

For resources related to our guidance, please see:

• Illinois Banking Act, 205 ILCS 5/48.2(e) (Requires banks to provide a servicing transfer notice within 45 days “if the servicing of a residential mortgage shall be transferred from the original mortgagee . . . which notice shall set forth: the name and address of the transferee; the name, address and telephone number to which inquiries by the residential mortgagor should be addressed; and the name and address to which the next 3 monthly installments are to be submitted to the transferee and the amount of each of such monthly installment; . . .”)

• Regulation X, 12 CFR 1024.33(b)(4) (“The notices of transfer shall include the following information:  (i) The effective date of the transfer of servicing; (ii) The name, address, and a collect call or toll-free telephone number for an employee or department of the transferee servicer that can be contacted by the borrower to obtain answers to servicing transfer inquiries; (iii) The name, address, and a collect call or toll-free telephone number for an employee or department of the transferor servicer that can be contacted by the borrower to obtain answers to servicing transfer inquiries; (iv) The date on which the transferor servicer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. These dates shall either be the same or consecutive days; (v) Whether the transfer will affect the terms or the continued availability of mortgage life or disability insurance, or any other type of optional insurance, and any action the borrower must take to maintain such coverage; and (vi) A statement that the transfer of servicing does not affect any term or condition of the mortgage loan other than terms directly related to the servicing of the loan.”)

• Regulation Z, 12 CFR 1026.39(d) (“The disclosures required by this section shall identify the mortgage loan that was sold, assigned or otherwise transferred, and state the following, except that the information required by paragraph (d)(5) of this section shall be stated only for a mortgage loan that is a closed-end consumer credit transaction secured by a dwelling or real property other than a reverse mortgage transaction subject to § 1026.33 of this part: (1) The name, address, and telephone number of the covered person. . . . (2) The date of transfer. (3) The name, address and telephone number of an agent or party authorized to receive notice of the right to rescind and resolve issues concerning the consumer's payments on the loan. However, no information is required to be provided under this paragraph if the consumer can use the information provided under paragraph (d)(1) of this section for these purposes. (4) Where transfer of ownership of the debt to the covered person is or may be recorded in public records, or, alternatively, that the transfer of ownership has not been recorded in public records at the time the disclosure is provided. (6) Partial Payment Policy. . . .”)

• Illinois Administrative Code, Residential Mortgage License Act of 1987, 38 Ill. Adm. Code 1050.820 (“Whenever the servicing of a residential mortgage loan is transferred or sold by a licensee, or purchased or accepted by a licensee, each licensee who is a party to the arrangement shall issue to the mortgagor, simultaneous with the transfer, a notice that shall include at a minimum: . . . .”)

• 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.”)