The State of
Illinois has passed legislation that requires first-time
homebuyers and borrowers who are refinancing their
primary residence to receive a file review from a
HUD-certified housing counseling agency if the loan
meets certain criteria. Our counselors are trained to
review loan files under this legislation.
What areas are
The program will be implemented in all of Cook
County, Kane, Peoria and Will Counties.
When will it
July 1, 2008.
What are the
criteria for the loan?
1. Permits interest only payments.
2. May result in negative amortization.
3. Total points and fees payable by the borrower at
or before closing will exceed 5% of the loan amount.
4. Includes a prepayment penalty.
5. Loan is an adjustable rate (ARM) that adjusts
within the first three years.
How do you know if
your loan requires a file review?
The Illinois Department of Financial
Institutions and Professional Regulations will
notify you by e-mail (if address is provided by the
loan originator) and a formal letter in the mail.
Who pays for the
The mortgage originator must give the borrower a
cashier’s check or money order for $300 made payable
to the borrower’s selected counseling agency.
How long is the
File Review with the counselor?
The typical file review lasts from 1 to 2 hours
if all of the required documents are available.
How Can We Help?
We make the counseling fast and convenient for the
- We are available to
meet with client’s at our office or at the
- Counselor’s are
available for evening and weekend appointments.
- We have English and Spanish speaking counselors.
- Call for an appointment 773-533-0243.
- We accept payments
by certified check, money order or PayPal.
NECESSARY DOCS & FEE FOR A
SB1167 FILE REVIEW
1) Information about
the loan you have applied for:
Please bring with you your copies of:
- The Good Faith
Estimate provided by your loan originator
- The Truth-in-Lending
statement provided by your loan originator
- Your loan
application (if your lender gave you a copy)
- Your credit report
(if your lender gave you a copy)
- The primary
borrower’s Social Security Number and/or Property
Index Number (PIN) of the subject property (note:
your counselor will not be able to access the
database without at least one of these pieces of
Please bring with you the following documents/forms:
- Pay stubs for the
most recent month for any wages you have earned
- Your federal W-2
forms and Federal Income Tax Returns for the past 2
of any other forms of income that you may have.
- If you do not have a
copy of your credit report, please bring
documentation of all monthly expenses.
3) Counseling fee:
SB1167 requires that the loan originator pay for the
HUD-certified Counseling Agencies services. The fee for
this service is $300. Please bring a $300 CASHIER’S
CHECK OR MONEY ORDER from your mortgage lender or
broker, payable to Smart Money Housing. Payment may also
be made through PayPal.