Illinois recently passed SB 1779, which adds an amendment to the Illinois Consumer Fraud and Deceptive Business Practices Act (the “Act”). The amendment adds new section 815 ILCS 505/2WWW, which provides that a lender, or an agent of a lending company, when offering terms for the purchase of a manufactured home that is not deemed to be real property as defined under the Mobile Home Park Act, must provide a disclosure that includes the following:
- any affiliation between the landlord and the lending company;
- that the loan is a chattel loan;
- that the terms of a chattel loan prohibit refinancing;
- that, depending on where the consumer affixes the manufactured home (be it property owned by the consumer or on certain types of leased land), the manufactured home may qualify as real property under the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act; and
- any other reason that prohibits refinancing.
The new section became effective on January 1, 2022. DocMagic has made the new form, Manufactured Home Chattel Loan Disclosure (Form ID: ILMHCLD.MSC) available from the forms list, for use when applicable for Illinois purchase loans of manufactured homes. DocMagic forms and plans currently contemplate that manufactured housing would always be affixed to real property.
