Ill. Admin. Code tit. 38 § 1050.1320

Current through Register Vol. 48, No. 50, December 13, 2024

Section 1050.1320 - Charges to Seller

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.

Ill. Admin. Code tit. 38, § 1050.1320

Amended at 29 Ill. Reg. 14808, effective September 26, 2005

Amended at 41 Ill. Reg. 12405, effective 10/6/2017