ILCS » Chapter 765 · Act 910
Illinois Compiled Statutes

765 ILCS 910/5 (2026)

(a) When the mortgage is reduced to 65% of its original amount by payments of the borrower, timely made according to the provisions of the loan agreement secured by the mortgage, and the borrower is otherwise not in default on the loan agreement, the mortgage lender must notify the borrower that he may terminate such escrow account or that he may elect to continue it until he requests a termination thereof, or until the mortgage is paid in full, whichever occurs first

✓ current as of May 2026
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(765 ILCS 910/5) (from Ch. 17, par. 4905)
    Sec. 5. (a) When the mortgage is reduced to 65% of its original amount by payments of the borrower, timely made according to the provisions of the loan agreement secured by the mortgage, and the borrower is otherwise not in default on the loan agreement, the mortgage lender must notify the borrower that he may terminate such escrow account or that he may elect to continue it until he requests a termination thereof, or until the mortgage is paid in full, whichever occurs first.
    (b) Notwithstanding the requirements in subsection (a), a mortgage lender that complies with the escrow account requirements in Title 12 CFR Part 1026, as amended, for a mortgage loan that is a higher-priced mortgage loan, as defined in Title 12 CFR Part 1026, as amended, is deemed to be in compliance with subsection (a).
(Source: P.A. 103-322, eff. 7-28-23.)

    
Notes of Decisions
Cited in 1 case, 1996–1996 · leading case: Stern v. Norwest Mortg., Inc., 672 N.E.2d 296 (Ill. App. Ct. 1996).
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Stern v. Norwest Mortg., Inc., 672 N.E.2d 296 (Ill. App. Ct. 1996). “” 765 ILCS 910/5 (West 1992). The Act further provides that at any time during the term of the loan "[i]n lieu of the mortgage lender establishing an escrow account or an escrow-like arrangement, a borrower may pledge an interest bearing time deposit with the mortgage lender in…”
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