Our Mission is to provide the communities we serve homeownership education and professional counseling to purchase a home, refinance an existing home, obtain a HUD Insured Reverse (HECM) Mortgage or to prevent foreclosure. We are a HUD Approved Housing Agency serving people since 1994.
This counseling is unique to Cook, Will, Kane and Peoria Counties in Illinois. The legislation that brought this counseling requirement into being is commonly referred to as "SB1167" APLD Counseling. The stated purpose of the law was to reduce predatory lending practices by assisting the borrower in understanding the terms and conditions of the loan for which he or she has applied. The act does not prohibit any type of loan but requires prospective borrowers to receive counseling based on certain trigger points. Here is the list of the counseling trigger points:
A) In a purchase transaction, all borrowers are first time home buyers or the borrower(s) are refinancing a primary residence, and;
B) The loan is a mortgage that includes one or more of the following:
1) The loan permits interest-only payments
2) The loan may result in negative amortization
3) The total points and fees payable by the borrower at or before closing will exceed 5%
4) The loan includes a prepayment penalty
5) The loan is an adjustable rate mortgage which allows adjustments of the interest rate in the first three years.
Please note that one standard from group A and at least one standard from group B must be present or counseling will not be required.
The process begins when borrowers with 1 to 4 family owner occupied residences that are located in Cook, Will, Kane or Peoria Counties apply for a mortgage. The mortgage company is required by state law to provide detailed loan application information to the government Anti-Predatory Lending Database within 10 business days from the date your loan application was taken. The government database then evaluates whether or not you must obtain the counseling services. The cost for the counseling must be paid by the lender and not the borrower.
All our SB1167 counseling services are conducted on a one-on-one basis to insure that borrowers fully understand the loan transaction and receive the highest standards of care throughout the counseling process. For more information you may call our offices at 708-761-6264.
Mortgage Education Foundation
Homeownership Counseling and Learning Center