Topic:
Title insurance and trust agreements
House Bill 3775 (Tyron, R-Crystal Lake) amends the Residential Mortgage License Act of 1987 to do two things. (1) Prohibits a mortgage lender acting on behalf of a borrower from requiring the seller of real property to disclose the terms of a private trust agreement regarding the real property if the seller has obtained title insurance for the transaction. (2) Prohibits a mortgage lender acting on behalf of a borrower from withholding approval or threatening to do so of the borrower’s residential mortgage loan because the seller has not disclosed the terms of a private trust agreement regarding the real property. Introduced and referred to House Rules Committee.