Section 1050.860  Payoff of Outstanding Mortgage Loan

a)         When a check or other negotiable instrument received in final payment is deposited in a financial institution, the licensee's refund policy shall conform to Section 4-213 of the Uniform Commercial Code [810 ILCS 5/4-213] time requirements on making those funds available for withdrawal by the licensee.

b)         Payoff Letter.  Within seven business days of receipt of a written request from an entity authorized by the borrower, a licensee shall furnish a written notice of the total amount required to pay in full on an outstanding mortgage loan, as of a specified date.  Payoff letters shall itemize and explain all charges included in the total figure stated.

c)         For shared appreciation agreements, the licensee shall furnish within five business days after receipt of a written request from a borrower or an entity authorized by the borrower an initial estimate of the total amount required for the borrower to pay at the termination or settlement of the shared appreciation agreement. The licensee shall furnish a final written notice of the total amount required for the borrower to pay at the termination or settlement of the shared appreciation agreement within three business days after the licensee receives the valuations on which the Ending Home Value and Final Settlement Payment Amount are based. The final written notice shall be provided to the borrower no more than 30 days after the licensee receives the request.

(Source:  Amended at 50 Ill. Reg. 8010, effective June 1, 2026)