Does Illinois law overide RegZ in relation to HOEPA loans? I need some help. When you are testing for points and fees, what fees are included? I have read Reg Z several times, but apparently I cannot understand. Any help would be appreciated.

If you are talking about the state law for anti-predatory lending, yes, it would generally supercede Reg Z. So in Illinois, it would apply to any loan not used to purchase the primary residence, and the APR trigger would drop to US Treasury + 6 percent for firsts and 8 percent for 2nds. Total points and fees is calculated the same way as Section 32, except you get a smaller margin - only 5 percent (actually it's the greater of 5 percent or $800) on your points & fees limit.

As to what points & fees are included, you can generally exclude things like the appraisal and credit report and flood determination, things you would exclude under 226.4(c), unless of course they are paid to an affiliate.

Isn't this fun? Now do it for the other 12 states that have similar - but not quite the same - laws.

I tell you, this is scary!!! Just when I thought I knew what a finance charge was, now they say it is not a finance charge for purpose of the fees and points test to HOEPA. I think if I am in compliance for a hundred years, I will never understand it all. Thanks for your help. I appreciate it.

Where can I find this information in Illinois law ... can you provide an ILCS cite?

Look under Title 38: Financial Institutions; Part 110: Consumer Installment Loan Act; Subpart B: Mortgage Lending. If you go to the State's website you will see it and can choose by type of institution you are.