Illinois Administrative Code
Title 38 - FINANCIAL INSTITUTIONS
Part 190 - ILLINOIS CREDIT UNION ACT
Subpart A - GENERAL PROVISIONS
Section 190.140 - Real Estate Lending
Current through Register Vol. 48, No. 12, March 22, 2024
a) A credit union with total assets greater than $1 million may, following a resolution of its board, make loans secured by a lien on real estate, including an assignment of a beneficial interest in a land trust, subject to the following procedures:
Total Assets of a Credit Union |
Maximum Amount of Loans Secured by Real Estate |
Aggregate of All First Mortgage Loans Secured by Real Estate |
Under $1 million |
Lending Limits for Consumer Loans |
0% of total assets |
$1 - 2.5 million |
$165,000* |
25% of total assets |
$2.5 - 5 million |
$250,000* |
30% of total assets |
$5 - 10 million |
$330,000 |
35% of total assets |
$10 - 30 million |
$580,000 |
40% of total assets |
$30 - 100 million |
$825,000 |
45% of total assets |
Over $100 million |
$1,000,000 |
50% of total assets |
* The aggregate loans to one member may not exceed the aggregate limit referenced in subsection (e).
b) Credit unions with assets under $1 million may make home equity and second mortgage loans subject to the lending limits for consumer loans set forth in Section 190.160. Credit unions with assets under $1 million shall not make first mortgage real estate loans.
c) Credit unions shall not make first mortgage real estate loans for more than the estimated market value or appraised value of the real estate securing the loans. Real estate loans, other than first mortgage loans, shall be limited to the value of the member-borrower's equity in the real estate securing the loan, provided a credit union may consider as equity any outstanding loan amount secured by the real estate if the outstanding loan will be repaid with the proceeds of the credit union's loan.
d) The maximum individual lending limit and the maximum ratio of first mortgage real estate loans may be increased by obtaining written approval from the Secretary. Approval is to be based upon the need of the members and the credit union's real estate lending record.
e) The maximum limit on an individual loan by credit unions with assets greater than $1 million is in addition to the secured and unsecured lending limits of Section 190.160; provided, however, in no event shall all loans to any member exceed in the aggregate 10% of the credit union's unimpaired capital and surplus as defined in Section 190.2. Loans subject to the requirements for business loans shall be subject to the appraisal requirements set forth in subsection (h), but shall not be subject to the other provisions of this Section.
f) The maximum maturity of a loan secured by a first mortgage shall not exceed 40 years.
g) Procedures
h) Documentation
i) Sale of Real Estate Loans