SB 1167 Illinois Lending

Implementing SB 1167

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 affected?

The program will be implemented in all of Cook County, Kane, Peoria and Will Counties.

When did it start?

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 file review?

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 client.

  • We are available to meet with client’s at our office or at the client’s home.
  • 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.


1) Please bring with you your the following Loan Information:

  • 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 information)

2) Please bring with you the following Monthly Income/Expenses Information:

  • 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 years
  • Proof/documentation 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.

Smart Money Housing

3510 W. Franklin Blvd
Chicago, IL 60624-1316
Phone: 773 533-0243
Fax: 866 834-6233

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