Public Act 103-0156
 
HB2325 EnrolledLRB103 26311 BMS 52672 b

    AN ACT concerning regulation.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Residential Mortgage License Act of 1987 is
amended by changing Sections 1-3 and 1-4 and by adding Section
3-11 as follows:
 
    (205 ILCS 635/1-3)  (from Ch. 17, par. 2321-3)
    Sec. 1-3. Necessity for license; scope of Act.
    (a) No person, partnership, association, corporation or
other entity shall engage in the business of brokering,
funding, originating, servicing or purchasing of residential
mortgage loans without first obtaining a license from the
Secretary in accordance with the licensing procedure provided
in this Article I and such regulations as may be promulgated by
the Secretary. The licensing provisions of this Section shall
not apply to any entity engaged solely in commercial mortgage
lending or to any person, partnership association, corporation
or other entity exempted pursuant to Section 1-4, subsection
(d), of this Act or in accordance with regulations promulgated
by the Secretary hereunder. No provision of this Act shall
apply to an exempt person or entity as defined in items (1) and
(1.5) of subsection (d) of Section 1-4 of this Act.
Notwithstanding anything to the contrary in the preceding
sentence, an individual acting as a mortgage loan originator
who is not employed by and acting for an entity described in
item (1) of subsection (tt) of Section 1-4 of this Act shall be
subject to the mortgage loan originator licensing requirements
of Article VII of this Act.
    Effective January 1, 2011, no provision of this Act shall
apply to an exempt person or entity as defined in item (1.8) of
subsection (d) of Section 1-4 of this Act. Notwithstanding
anything to the contrary in the preceding sentence, an
individual acting as a mortgage loan originator who is not
employed by and acting for an entity described in item (1) of
subsection (tt) of Section 1-4 of this Act shall be subject to
the mortgage loan originator licensing requirements of Article
VII of this Act, and provided that an individual acting as a
mortgage loan originator under item (1.8) of subsection (d) of
Section 1-4 of this Act shall be further subject to a
determination by the U.S. Department of Housing and Urban
Development through final rulemaking or other authorized
agency determination under the federal Secure and Fair
Enforcement for Mortgage Licensing Act of 2008.
    (a-1) A person who is exempt from licensure pursuant to
paragraph (ii) of item (1) of subsection (d) of Section 1-4 of
this Act as a federally chartered savings bank that is
registered with the Nationwide Multistate Licensing System and
Registry may apply to the Secretary for an exempt company
registration for the purpose of sponsoring one or more
individuals subject to the mortgage loan originator licensing
requirements of Article VII of this Act. Registration with the
Division of Banking of the Department shall not affect the
exempt status of the applicant.
        (1) A mortgage loan originator eligible for licensure
    under this subsection shall (A) be covered under an
    exclusive written contract with, and originate residential
    mortgage loans solely on behalf of, that exempt person;
    and (B) hold a current, valid insurance producer license
    under Article XXXI of the Illinois Insurance Code.
        (2) An exempt person shall: (A) fulfill any reporting
    requirements required by the Nationwide Multistate
    Licensing System and Registry or the Secretary; (B)
    provide a blanket surety bond pursuant to Section 7-12 of
    this Act covering the activities of all its sponsored
    mortgage loan originators; (C) reasonably supervise the
    activities of all its sponsored mortgage loan originators;
    (D) comply with all rules and orders (including the
    averments contained in Section 2-4 of this Act as
    applicable to a non-licensed exempt entity provided for in
    this Section) that the Secretary deems necessary to ensure
    compliance with the federal SAFE Act; and (E) pay an
    annual registration fee established by the Director.
        (3) The Secretary may deny an exempt company
    registration to an exempt person or fine, suspend, or
    revoke an exempt company registration if the Secretary
    finds one of the following:
            (A) that the exempt person is not a person of
        honesty, truthfulness, or good character;
            (B) that the exempt person violated any applicable
        law, rule, or order;
            (C) that the exempt person refused or failed to
        furnish, within a reasonable time, any information or
        make any report that may be required by the Secretary;
            (D) that the exempt person had a final judgment
        entered against him or her in a civil action on grounds
        of fraud, deceit, or misrepresentation, and the
        conduct on which the judgment is based indicates that
        it would be contrary to the interest of the public to
        permit the exempt person to manage a loan originator;
            (E) that the exempt person had an order entered
        against him or her involving fraud, deceit, or
        misrepresentation by an administrative agency of this
        State, the federal government, or any other state or
        territory of the United States, and the facts relating
        to the order indicate that it would be contrary to the
        interest of the public to permit the exempt person to
        manage a loan originator;
            (F) that the exempt person made a material
        misstatement or suppressed or withheld information on
        the application for an exempt company registration or
        any document required to be filed with the Secretary;
        or
            (G) that the exempt person violated Section 4-5 of
        this Act.
    (a-5) An entity that is exempt from licensure pursuant to
item (7) of subsection (d) of Section 1-4 of this Act as an
independent loan processing entity shall annually apply to the
Secretary through the Nationwide Multistate Licensing System
and Registry for an exempt company registration for the
purpose of sponsoring one or more individuals subject to the
mortgage loan originator licensing requirements of Article VII
of this Act. A loan processor who performs clerical or support
duties at the direction of and subject to the supervision and
instruction of a licensed mortgage loan originator sponsored
by an independent loan processing entity shall be exempt from
his or her own licensing as a mortgage loan originator. An
independent loan processing entity shall not be subject to
examination by the Secretary. The Secretary may adopt rules to
implement any provisions necessary for the administration of
this subsection.
    (b) No person, partnership, association, corporation, or
other entity except a licensee under this Act or an entity
exempt from licensing pursuant to Section 1-4, subsection (d),
of this Act shall do any business under any name or title, or
circulate or use any advertising or make any representation or
give any information to any person, which indicates or
reasonably implies activity within the scope of this Act.
    (c) The Secretary may, through the Attorney General,
request the circuit court of either Cook or Sangamon County to
issue an injunction to restrain any person from violating or
continuing to violate any of the foregoing provisions of this
Section.
    (d) When the Secretary has reasonable cause to believe
that any entity which has not submitted an application for
licensure is conducting any of the activities described in
subsection (a) hereof, the Secretary shall have the power to
examine all books and records of the entity and any additional
documentation necessary in order to determine whether such
entity should become licensed under this Act.
    (d-1) The Secretary may issue orders against any person if
the Secretary has reasonable cause to believe that an unsafe,
unsound, or unlawful practice has occurred, is occurring, or
is about to occur, if any person has violated, is violating, or
is about to violate any law, rule, or written agreement with
the Secretary, or for the purposes of administering the
provisions of this Act and any rule adopted in accordance with
this Act.
    (e) Any person, partnership, association, corporation or
other entity who violates any provision of this Section
commits a business offense and shall be fined an amount not to
exceed $25,000. A mortgage loan brokered, funded, originated,
serviced, or purchased by a party who is not licensed under
this Section shall not be held to be invalid solely on the
basis of a violation under this Section. The changes made to
this Section by Public Act 99-113 are declarative of existing
law.
    (f) Each person, partnership, association, corporation or
other entity conducting activities regulated by this Act shall
be issued one license. Each full service office, place of
business or location at which a residential mortgage licensee
conducts any part of his or her business must be recorded with
the Secretary pursuant to Section 2-8 of this Act.
    (g) Licensees under this Act shall solicit, broker, fund,
originate, service and purchase residential mortgage loans
only in conformity with the provisions of this Act and such
rules and regulations as may be promulgated by the Secretary.
    (h) This Act applies to all entities doing business in
Illinois as residential mortgage bankers, as defined by "An
Act to provide for the regulation of mortgage bankers",
approved September 15, 1977, as amended, regardless of whether
licensed under that or any prior Act. Any existing residential
mortgage lender or residential mortgage broker in Illinois
whether or not previously licensed, must operate in accordance
with this Act.
    (i) This Act is a successor Act to and a continuance of the
regulation of residential mortgage bankers provided in "An Act
to provide for the regulation of mortgage bankers", approved
September 15, 1977, as amended.
    Entities and persons subject to the predecessor Act shall
be subject to this Act from and after its effective date.
(Source: P.A. 100-851, eff. 8-14-18; 100-1153, eff. 12-19-18;
101-81, eff. 7-12-19.)
 
    (205 ILCS 635/1-4)
    Sec. 1-4. Definitions. The following words and phrases
have the meanings given to them in this Section:
        (a) "Residential real property" or "residential real
    estate" shall mean any real property located in Illinois,
    upon which is constructed or intended to be constructed a
    dwelling. Those terms include a manufactured home as
    defined in subdivision (53) of Section 9-102 of the
    Uniform Commercial Code which is real property as defined
    in Section 5-35 of the Conveyance and Encumbrance of
    Manufactured Homes as Real Property and Severance Act.
        (b) "Making a residential mortgage loan" or "funding a
    residential mortgage loan" shall mean for compensation or
    gain, either directly or indirectly, advancing funds or
    making a commitment to advance funds to a loan applicant
    for a residential mortgage loan.
        (c) "Soliciting, processing, placing, or negotiating a
    residential mortgage loan" shall mean for compensation or
    gain, either directly or indirectly, accepting or offering
    to accept an application for a residential mortgage loan,
    assisting or offering to assist in the processing of an
    application for a residential mortgage loan on behalf of a
    borrower, or negotiating or offering to negotiate the
    terms or conditions of a residential mortgage loan with a
    lender on behalf of a borrower including, but not limited
    to, the submission of credit packages for the approval of
    lenders, the preparation of residential mortgage loan
    closing documents, including a closing in the name of a
    broker.
        (d) "Exempt person or entity" shall mean the
    following:
            (1) (i) Any banking organization or foreign
        banking corporation licensed by the Illinois
        Commissioner of Banks and Real Estate or the United
        States Comptroller of the Currency to transact
        business in this State; (ii) any national bank,
        federally chartered savings and loan association,
        federal savings bank, federal credit union; (iii)
        (blank); (iv) any bank, savings and loan association,
        savings bank, or credit union organized under the laws
        of this or any other state; (v) any Illinois Consumer
        Installment Loan Act licensee; (vi) any insurance
        company authorized to transact business in this State;
        (vii) any entity engaged solely in commercial mortgage
        lending; (viii) any service corporation of a savings
        and loan association or savings bank organized under
        the laws of this State or the service corporation of a
        federally chartered savings and loan association or
        savings bank having its principal place of business in
        this State, other than a service corporation licensed
        or entitled to reciprocity under the Real Estate
        License Act of 2000; or (ix) any first tier subsidiary
        of a bank, the charter of which is issued under the
        Illinois Banking Act by the Illinois Commissioner of
        Banks and Real Estate, or the first tier subsidiary of
        a bank chartered by the United States Comptroller of
        the Currency and that has its principal place of
        business in this State, provided that the first tier
        subsidiary is regularly examined by the Illinois
        Commissioner of Banks and Real Estate or the
        Comptroller of the Currency, or a consumer compliance
        examination is regularly conducted by the Federal
        Reserve Board.
            (1.5) Any employee of a person or entity mentioned
        in item (1) of this subsection, when acting for such
        person or entity, or any registered mortgage loan
        originator when acting for an entity described in
        subsection (tt) of this Section.
            (1.8) Any person or entity that does not originate
        mortgage loans in the ordinary course of business, but
        makes or acquires residential mortgage loans with his
        or her own funds for his or her or its own investment
        without intent to make, acquire, or resell more than 3
        residential mortgage loans in any one calendar year.
            (2) (Blank).
            (2.1) A bona fide nonprofit organization.
            (2.2) An employee of a bona fide nonprofit
        organization when acting on behalf of that
        organization.
            (3) Any person employed by a licensee to assist in
        the performance of the residential mortgage licensee's
        activities regulated by this Act who is compensated in
        any manner by only one licensee.
            (4) (Blank).
            (5) Any individual, corporation, partnership, or
        other entity that originates, services, or brokers
        residential mortgage loans, as these activities are
        defined in this Act, and who or which receives no
        compensation for those activities, subject to the
        Commissioner's regulations and the federal Secure and
        Fair Enforcement for Mortgage Licensing Act of 2008
        and the rules promulgated under that Act with regard
        to the nature and amount of compensation.
            (6) (Blank).
            (7) Any entity engaged solely in providing loan
        processing services through the sponsoring of
        individuals acting pursuant to subsection (d) of
        Section 7-1A of this Act.
        (e) "Licensee" or "residential mortgage licensee"
    shall mean a person, partnership, association,
    corporation, or any other entity who or which is licensed
    pursuant to this Act to engage in the activities regulated
    by this Act.
        (f) "Mortgage loan" "residential mortgage loan" or
    "home mortgage loan" shall mean any loan primarily for
    personal, family, or household use that is secured by a
    mortgage, deed of trust, or other equivalent consensual
    security interest on a dwelling as defined in Section
    103(v) of the federal Truth in Lending Act, or residential
    real estate upon which is constructed or intended to be
    constructed a dwelling.
        (g) "Lender" shall mean any person, partnership,
    association, corporation, or any other entity who either
    lends or invests money in residential mortgage loans.
        (h) "Ultimate equitable owner" shall mean a person
    who, directly or indirectly, owns or controls an ownership
    interest in a corporation, foreign corporation, alien
    business organization, trust, or any other form of
    business organization regardless of whether the person
    owns or controls the ownership interest through one or
    more persons or one or more proxies, powers of attorney,
    nominees, corporations, associations, partnerships,
    trusts, joint stock companies, or other entities or
    devices, or any combination thereof.
        (i) "Residential mortgage financing transaction" shall
    mean the negotiation, acquisition, sale, or arrangement
    for or the offer to negotiate, acquire, sell, or arrange
    for, a residential mortgage loan or residential mortgage
    loan commitment.
        (j) "Personal residence address" shall mean a street
    address and shall not include a post office box number.
        (k) "Residential mortgage loan commitment" shall mean
    a contract for residential mortgage loan financing.
        (l) "Party to a residential mortgage financing
    transaction" shall mean a borrower, lender, or loan broker
    in a residential mortgage financing transaction.
        (m) "Payments" shall mean payment of all or any of the
    following: principal, interest and escrow reserves for
    taxes, insurance and other related reserves, and
    reimbursement for lender advances.
        (n) "Commissioner" shall mean the Commissioner of
    Banks and Real Estate, except that, beginning on April 6,
    2009 (the effective date of Public Act 95-1047), all
    references in this Act to the Commissioner of Banks and
    Real Estate are deemed, in appropriate contexts, to be
    references to the Secretary of Financial and Professional
    Regulation, or his or her designee, including the Director
    of the Division of Banking of the Department of Financial
    and Professional Regulation.
        (n-1) "Director" shall mean the Director of the
    Division of Banking of the Department of Financial and
    Professional Regulation, except that, beginning on July
    31, 2009 (the effective date of Public Act 96-112), all
    references in this Act to the Director are deemed, in
    appropriate contexts, to be the Secretary of Financial and
    Professional Regulation, or his or her designee, including
    the Director of the Division of Banking of the Department
    of Financial and Professional Regulation.
        (o) "Loan brokering", "brokering", or "brokerage
    service" shall mean the act of helping to obtain from
    another entity, for a borrower, a loan secured by
    residential real estate situated in Illinois or assisting
    a borrower in obtaining a loan secured by residential real
    estate situated in Illinois in return for consideration to
    be paid by either the borrower or the lender including,
    but not limited to, contracting for the delivery of
    residential mortgage loans to a third party lender and
    soliciting, processing, placing, or negotiating
    residential mortgage loans.
        (p) "Loan broker" or "broker" shall mean a person,
    partnership, association, corporation, or limited
    liability company, other than those persons, partnerships,
    associations, corporations, or limited liability companies
    exempted from licensing pursuant to Section 1-4,
    subsection (d), of this Act, who performs the activities
    described in subsections (c), (o), and (yy) of this
    Section.
        (q) "Servicing" shall mean the collection or
    remittance for or the right or obligation to collect or
    remit for any lender, noteowner, noteholder, or for a
    licensee's own account, of payments, interests, principal,
    and trust items such as hazard insurance and taxes on a
    residential mortgage loan in accordance with the terms of
    the residential mortgage loan; and includes loan payment
    follow-up, delinquency loan follow-up, loan analysis and
    any notifications to the borrower that are necessary to
    enable the borrower to keep the loan current and in good
    standing. "Servicing" includes management of third-party
    entities acting on behalf of a residential mortgage
    licensee for the collection of delinquent payments and the
    use by such third-party entities of said licensee's
    servicing records or information, including their use in
    foreclosure.
        (r) "Full service office" shall mean an office,
    provided by the licensee and not subleased from the
    licensee's employees or independent contractors, and staff
    in Illinois reasonably adequate to handle efficiently
    communications, questions, and other matters relating to
    any application for, or an existing home mortgage secured
    by residential real estate situated in Illinois with
    respect to which the licensee is brokering, funding
    originating, purchasing, or servicing. The management and
    operation of each full service office must include
    observance of good business practices such as proper
    signage; adequate, organized, and accurate books and
    records; ample phone lines, hours of business, staff
    training and supervision, and provision for a mechanism to
    resolve consumer inquiries, complaints, and problems. The
    Commissioner shall issue regulations with regard to these
    requirements and shall include an evaluation of compliance
    with this Section in his or her periodic examination of
    each licensee. "Full service office" does not include a
    remote location.
        (s) "Purchasing" shall mean the purchase of
    conventional or government-insured mortgage loans secured
    by residential real estate situated in Illinois from
    either the lender or from the secondary market.
        (t) "Borrower" shall mean the person or persons who
    seek the services of a loan broker, originator, or lender.
        (u) "Originating" shall mean the issuing of
    commitments for and funding of residential mortgage loans.
        (v) "Loan brokerage agreement" shall mean a written
    agreement in which a broker or loan broker agrees to do
    either of the following:
            (1) obtain a residential mortgage loan for the
        borrower or assist the borrower in obtaining a
        residential mortgage loan; or
            (2) consider making a residential mortgage loan to
        the borrower.
        (w) "Advertisement" shall mean the attempt by
    publication, dissemination, or circulation to induce,
    directly or indirectly, any person to enter into a
    residential mortgage loan agreement or residential
    mortgage loan brokerage agreement relative to a mortgage
    secured by residential real estate situated in Illinois.
        (x) (Blank).
        (y) "Government-insured mortgage loan" shall mean any
    mortgage loan made on the security of residential real
    estate insured by the Department of Housing and Urban
    Development or Farmers Home Loan Administration, or
    guaranteed by the Veterans Administration.
        (z) "Annual audit" shall mean a certified audit of the
    licensee's books and records and systems of internal
    control performed by a certified public accountant in
    accordance with generally accepted accounting principles
    and generally accepted auditing standards.
        (aa) "Financial institution" shall mean a savings and
    loan association, savings bank, credit union, or a bank
    organized under the laws of Illinois or a savings and loan
    association, savings bank, credit union or a bank
    organized under the laws of the United States and
    headquartered in Illinois.
        (bb) "Escrow agent" shall mean a third party,
    individual or entity charged with the fiduciary obligation
    for holding escrow funds on a residential mortgage loan
    pending final payout of those funds in accordance with the
    terms of the residential mortgage loan.
        (cc) "Net worth" shall have the meaning ascribed
    thereto in Section 3-5 of this Act.
        (dd) "Affiliate" shall mean:
            (1) any entity that directly controls or is
        controlled by the licensee and any other company that
        is directly affecting activities regulated by this Act
        that is controlled by the company that controls the
        licensee;
            (2) any entity:
                (A) that is controlled, directly or
            indirectly, by a trust or otherwise, by or for the
            benefit of shareholders who beneficially or
            otherwise control, directly or indirectly, by
            trust or otherwise, the licensee or any company
            that controls the licensee; or
                (B) a majority of the directors or trustees of
            which constitute a majority of the persons holding
            any such office with the licensee or any company
            that controls the licensee;
            (3) any company, including a real estate
        investment trust, that is sponsored and advised on a
        contractual basis by the licensee or any subsidiary or
        affiliate of the licensee.
        (ee) "First tier subsidiary" shall be defined by
    regulation incorporating the comparable definitions used
    by the Office of the Comptroller of the Currency and the
    Illinois Commissioner of Banks and Real Estate.
        (ff) "Gross delinquency rate" means the quotient
    determined by dividing (1) the sum of (i) the number of
    government-insured residential mortgage loans funded or
    purchased by a licensee in the preceding calendar year
    that are delinquent and (ii) the number of conventional
    residential mortgage loans funded or purchased by the
    licensee in the preceding calendar year that are
    delinquent by (2) the sum of (i) the number of
    government-insured residential mortgage loans funded or
    purchased by the licensee in the preceding calendar year
    and (ii) the number of conventional residential mortgage
    loans funded or purchased by the licensee in the preceding
    calendar year.
        (gg) "Delinquency rate factor" means the factor set by
    rule of the Commissioner that is multiplied by the average
    gross delinquency rate of licensees, determined annually
    for the immediately preceding calendar year, for the
    purpose of determining which licensees shall be examined
    by the Commissioner pursuant to subsection (b) of Section
    4-8 of this Act.
        (hh) (Blank).
        (ii) "Confidential supervisory information" means any
    report of examination, visitation, or investigation
    prepared by the Commissioner under this Act, any report of
    examination visitation, or investigation prepared by the
    state regulatory authority of another state that examines
    a licensee, any document or record prepared or obtained in
    connection with or relating to any examination,
    visitation, or investigation, and any record prepared or
    obtained by the Commissioner to the extent that the record
    summarizes or contains information derived from any
    report, document, or record described in this subsection.
    "Confidential supervisory information" does not include
    any information or record routinely prepared by a licensee
    and maintained in the ordinary course of business or any
    information or record that is required to be made publicly
    available pursuant to State or federal law or rule.
        (jj) "Mortgage loan originator" means an individual
    who for compensation or gain or in the expectation of
    compensation or gain:
            (i) takes a residential mortgage loan application;
        or
            (ii) offers or negotiates terms of a residential
        mortgage loan.
        "Mortgage loan originator" includes an individual
    engaged in loan modification activities as defined in
    subsection (yy) of this Section. A mortgage loan
    originator engaged in loan modification activities shall
    report those activities to the Department of Financial and
    Professional Regulation in the manner provided by the
    Department; however, the Department shall not impose a fee
    for reporting, nor require any additional qualifications
    to engage in those activities beyond those provided
    pursuant to this Act for mortgage loan originators.
        "Mortgage loan originator" does not include an
    individual engaged solely as a loan processor or
    underwriter except as otherwise provided in subsection (d)
    of Section 7-1A of this Act.
        "Mortgage loan originator" does not include a person
    or entity that only performs real estate brokerage
    activities and is licensed in accordance with the Real
    Estate License Act of 2000, unless the person or entity is
    compensated by a lender, a mortgage broker, or other
    mortgage loan originator, or by any agent of that lender,
    mortgage broker, or other mortgage loan originator.
        "Mortgage loan originator" does not include a person
    or entity solely involved in extensions of credit relating
    to timeshare plans, as that term is defined in Section
    101(53D) of Title 11, United States Code.
        (kk) "Depository institution" has the same meaning as
    in Section 3 of the Federal Deposit Insurance Act, and
    includes any credit union.
        (ll) "Dwelling" means a residential structure or
    mobile home which contains one to 4 family housing units,
    or individual units of condominiums or cooperatives.
        (mm) "Immediate family member" means a spouse, child,
    sibling, parent, grandparent, or grandchild, and includes
    step-parents, step-children, step-siblings, or adoptive
    relationships.
        (nn) "Individual" means a natural person.
        (oo) "Loan processor or underwriter" means an
    individual who performs clerical or support duties as an
    employee at the direction of and subject to the
    supervision and instruction of a person licensed, or
    exempt from licensing, under this Act. "Clerical or
    support duties" includes subsequent to the receipt of an
    application:
            (i) the receipt, collection, distribution, and
        analysis of information common for the processing or
        underwriting of a residential mortgage loan; and
            (ii) communicating with a consumer to obtain the
        information necessary for the processing or
        underwriting of a loan, to the extent that the
        communication does not include offering or negotiating
        loan rates or terms, or counseling consumers about
        residential mortgage loan rates or terms. An
        individual engaging solely in loan processor or
        underwriter activities shall not represent to the
        public, through advertising or other means of
        communicating or providing information, including the
        use of business cards, stationery, brochures, signs,
        rate lists, or other promotional items, that the
        individual can or will perform any of the activities
        of a mortgage loan originator.
        (pp) "Nationwide Multistate Licensing System and
    Registry" means a mortgage licensing system developed and
    maintained by the Conference of State Bank Supervisors and
    the American Association of Residential Mortgage
    Regulators for the licensing and registration of licensed
    mortgage loan originators.
        (qq) "Nontraditional mortgage product" means any
    mortgage product other than a 30-year fixed rate mortgage.
        (rr) "Person" means a natural person, corporation,
    company, limited liability company, partnership, or
    association.
        (ss) "Real estate brokerage activity" means any
    activity that involves offering or providing real estate
    brokerage services to the public, including:
            (1) acting as a real estate agent or real estate
        broker for a buyer, seller, lessor, or lessee of real
        property;
            (2) bringing together parties interested in the
        sale, purchase, lease, rental, or exchange of real
        property;
            (3) negotiating, on behalf of any party, any
        portion of a contract relating to the sale, purchase,
        lease, rental, or exchange of real property, other
        than in connection with providing financing with
        respect to any such transaction;
            (4) engaging in any activity for which a person
        engaged in the activity is required to be registered
        or licensed as a real estate agent or real estate
        broker under any applicable law; or
            (5) offering to engage in any activity, or act in
        any capacity, described in this subsection (ss).
        (tt) "Registered mortgage loan originator" means any
    individual that:
            (1) meets the definition of mortgage loan
        originator and is an employee of:
                (A) a depository institution;
                (B) a subsidiary that is:
                    (i) owned and controlled by a depository
                institution; and
                    (ii) regulated by a federal banking
                agency; or
                (C) an institution regulated by the Farm
            Credit Administration; and
            (2) is registered with, and maintains a unique
        identifier through, the Nationwide Multistate
        Licensing System and Registry.
        (uu) "Unique identifier" means a number or other
    identifier assigned by protocols established by the
    Nationwide Multistate Licensing System and Registry.
        (vv) "Residential mortgage license" means a license
    issued pursuant to Section 1-3, 2-2, or 2-6 of this Act.
        (ww) "Mortgage loan originator license" means a
    license issued pursuant to Section 7-1A, 7-3, or 7-6 of
    this Act.
        (xx) "Secretary" means the Secretary of the Department
    of Financial and Professional Regulation, or a person
    authorized by the Secretary or by this Act to act in the
    Secretary's stead.
        (yy) "Loan modification" means, for compensation or
    gain, either directly or indirectly offering or
    negotiating on behalf of a borrower or homeowner to adjust
    the terms of a residential mortgage loan in a manner not
    provided for in the original or previously modified
    mortgage loan.
        (zz) "Short sale facilitation" means, for compensation
    or gain, either directly or indirectly offering or
    negotiating on behalf of a borrower or homeowner to
    facilitate the sale of residential real estate subject to
    one or more residential mortgage loans or debts
    constituting liens on the property in which the proceeds
    from selling the residential real estate will fall short
    of the amount owed and the lien holders are contacted to
    agree to release their lien on the residential real estate
    and accept less than the full amount owed on the debt.
        (aaa) "Bona fide nonprofit organization" means an
    organization that is described in Section 501(c)(3) of the
    Internal Revenue Code, is exempt from federal income tax
    under Section 501(a) of the Internal Revenue Code, does
    not operate in a commercial context, and does all of the
    following:
            (1) Promotes affordable housing or provides home
        ownership education or similar services.
            (2) Conducts its activities in a manner that
        serves public or charitable purposes.
            (3) Receives funding and revenue and charges fees
        in a manner that does not create an incentive for
        itself or its employees to act other than in the best
        interests of its clients.
            (4) Compensates its employees in a manner that
        does not create an incentive for its employees to act
        other than in the best interests of its clients.
            (5) Provides to, or identifies for, the borrower
        residential mortgage loans with terms favorable to the
        borrower and comparable to residential mortgage loans
        and housing assistance provided under government
        housing assistance programs.
        (bbb) "Remote location" means a location other than a
    principal place of business or a full service office at
    which a mortgage loan originator of a licensee may conduct
    business.
    The Commissioner may define by rule and regulation any
terms used in this Act for the efficient and clear
administration of this Act.
(Source: P.A. 100-783, eff. 8-10-18; 100-851, eff. 8-14-18;
100-1153, eff. 12-19-18; 101-81, eff. 7-12-19.)
 
    (205 ILCS 635/3-11 new)
    Sec. 3-11. Remote location operations. Licensees may allow
mortgage loan originators to work from a remote location if:
        (1) the licensee has written policies and procedures
    for the supervision of mortgage loan originators working
    from a remote location;
        (2) access to company platforms and customer
    information is in accordance with the licensee's
    comprehensive written information security plan;
        (3) no in-person customer interaction occurs at a
    mortgage originator's residence unless that residence is a
    licensed location;
        (4) physical records are not maintained at a remote
    location;
        (5) customer interactions and conversations about
    consumers will be in compliance with federal and State
    information security requirements, including applicable
    provisions under the federal Gramm-Leach-Bliley Act and
    the Safeguards Rule established by the Federal Trade
    Commission and set forth in 16 CFR Part 314, as such
    requirements may be amended from time to time;
        (6) mortgage loan originators working at a remote
    location access the company's secure systems, including a
    cloud-based system, directly from any out-of-office device
    the mortgage loan originator uses, including, but not
    limited to, a laptop, phone, desktop computer, or tablet,
    via a virtual private network or comparable system that
    ensures secure connectivity and requires passwords or
    other forms of authentication to access;
        (7) the licensee ensures that appropriate security
    updates, patches, or other alterations to the security of
    all devices used at remote locations are installed and
    maintained;
        (8) the licensee has an ability to remotely lock or
    erase company-related contents of any device or otherwise
    remotely limit all access to a company's secure systems;
    and
        (9) the Nationwide Multistate Licensing System and
    Registry record of a loan originator that works from a
    remote location designates the principal place of business
    as the loan originator's registered location unless the
    loan originator elects another licensed branch office as a
    registered location.