Topic: Loan Documentation
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In filling out a Form 1003 mortgage application, if the loan applicants are in a civil union, should we list them as unmarried?
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It would be most accurate to list the legal relationship as a “domestic partnership,” as a civil union is not the strict equivalent of a marriage. Under Illinois’s civil union law, every reference to “spouse” in any Illinois statute is now deemed to include a “party to a civil union.” 750 ILCS 75/10. A “party…
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Are Illinois notaries required to log all internal bank documents (mortgage releases, etc.)?
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Notaries are not required to log internal bank documents related to a residential mortgage, but they must log documents that are considered “documents of conveyance” of residential property. The Illinois Notary Public Act requires all notaries to keep a Notarial Record of any “document of conveyance” that transfers residential property (defined as a building or…
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Do we need to have borrowers sign the High Risk Home Loan Act waiver before the loan can close?
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The High Risk Home Loan Act does not expressly contain any timing requirements for either the certificate of completion or the waiver of participation in the Mortgage Awareness Program (except that the borrower must wait at least two business days after receiving the lender’s notice of the program before signing a waiver, 815 ILCS 137/110(h)).…
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In closing a mortgage loan, what documents need to be signed by a spouse who does not have title in the property being mortgaged (the non-titled spouse)?
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We do not believe that you would have to provide the TIL disclosure or the rescission disclosure to a spouse who is not receiving credit and who does not own the property securing the transaction. Regulation Z requires that banks provide all the required disclosures to “the consumer.” 12 CFR 1026.5, 1026.17. For purposes of…
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Does Illinois require that we provide mortgage loan applicants with a mortgage commitment letters? Do they need to be signed by the borrower(s)?
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We believe that Illinois law would require a mortgage commitment letter. 205 ILCS 5/48.2. They are not typically signed by borrowers.
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Are there any Illinois laws that govern the use of disclosures that are translated into Spanish for loan customers?
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We believe that the section of the Consumer Fraud and Deceptive Business Practices Act that you cite, Section 2N, would apply to a national bank’s use of interpreters. In one of the few cases interpreting this statute, a court applied Section 2N to a mortgage lender in residential loan transaction. Martinez v. Freedon Mortg. Team,…