Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987
Subpart L - COMMITMENT AND CLOSING PRACTICES
Section 1050.1320 - Charges to Seller

Universal Citation: 38 IL Admin Code ยง 1050.1320

Current through Register Vol. 48, No. 12, March 22, 2024

a) Except for FHA-insured or VA-guaranteed residential mortgage loans, no licensee shall:

1) impose any charges upon a seller under a borrower's purchase contract;

2) condition any commitment for a residential mortgage loan upon the agreement of the seller to pay such charges; or

3) incur any charges on behalf of the seller, unless specifically authorized by that seller to do so.

b) With respect to FHA-insured or VA-guaranteed residential mortgage loans, the licensee shall provide, at time of application, a written good faith estimate or TILA-RESPA Integrated Loan Estimate Disclosure of the amounts and nature of charges to be paid that are disallowed by the applicable Federal agency for payment by the buyer. A clear and conspicuous statement shall disclose that such charges are disallowed by the applicable Federal agency for payment by the borrower. Examples of such charges may include, but are not limited to, tax service fee, assignment fee, underwriter fee.

c) For purposes of this Section, "seller" refers to the vendor of real estate that is the subject of the residential mortgage loan.

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