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1 | AN ACT concerning foreclosure.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Housing Development Act is amended | ||||||||||||||||||||||||||||||
5 | by adding Section 7.30 as follows: | ||||||||||||||||||||||||||||||
6 | (20 ILCS 3805/7.30 new) | ||||||||||||||||||||||||||||||
7 | Sec. 7.30. Foreclosure prevention counseling program. The | ||||||||||||||||||||||||||||||
8 | Authority shall establish and administer a foreclosure | ||||||||||||||||||||||||||||||
9 | prevention counseling program. The Authority shall use moneys | ||||||||||||||||||||||||||||||
10 | in the Foreclosure Prevention Counseling Fund, and any other | ||||||||||||||||||||||||||||||
11 | funds appropriated for this purpose, to make grants to | ||||||||||||||||||||||||||||||
12 | HUD-certified housing counseling agencies to support | ||||||||||||||||||||||||||||||
13 | pre-purchase and post-purchase home-ownership education and | ||||||||||||||||||||||||||||||
14 | foreclosure prevention counseling activities under the | ||||||||||||||||||||||||||||||
15 | program. | ||||||||||||||||||||||||||||||
16 | Section 10. The State Finance Act is amended by adding | ||||||||||||||||||||||||||||||
17 | Sections 5.708 and 6z-80 as follows: | ||||||||||||||||||||||||||||||
18 | (30 ILCS 105/5.708 new) | ||||||||||||||||||||||||||||||
19 | Sec. 5.708. The Foreclosure Prevention Counseling Fund. | ||||||||||||||||||||||||||||||
20 | (30 ILCS 105/6z-80 new) |
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1 | Sec. 6z-80. The Foreclosure Prevention Counseling Fund. | ||||||
2 | (a) There is created in the State treasury a special fund | ||||||
3 | to be known as the Foreclosure Prevention Counseling Fund. All | ||||||
4 | moneys received by the Commissioner of Banks and Real Estate | ||||||
5 | from the foreclosure prevention surcharge collected under | ||||||
6 | subsection (c) of Section 2-2 of the Residential Mortgage | ||||||
7 | License Act of 1987 shall be deposited into the Fund. | ||||||
8 | (b) Moneys in the Fund shall be used as follows: | ||||||
9 | (1) 25% of the moneys in the Fund on the first day of | ||||||
10 | each calendar month shall be distributed as grants by the | ||||||
11 | Illinois Housing Development Authority to the City of | ||||||
12 | Chicago to provide grants to HUD-certified housing | ||||||
13 | counseling agencies to support pre-purchase and | ||||||
14 | post-purchase home-ownership education and foreclosure | ||||||
15 | prevention counseling activities under programs | ||||||
16 | administered by that city. | ||||||
17 | (2) The remaining moneys shall, subject to | ||||||
18 | appropriation, be used by the Illinois Housing Development | ||||||
19 | Authority as provided in Section 7.30 of the Illinois | ||||||
20 | Housing Development Act. | ||||||
21 | Section 15. The Residential Mortgage License Act of 1987 is | ||||||
22 | amended by changing Section 2-2 as follows:
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23 | (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
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24 | Sec. 2-2. Application process; investigation; fee.
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1 | (a) The Commissioner shall issue a license upon completion | ||||||
2 | of all of the
following:
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3 | (1) The filing of an application for license.
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4 | (2) The filing with the Commissioner of a listing of | ||||||
5 | judgments entered
against, and bankruptcy petitions by, | ||||||
6 | the license applicant for the
preceding 10 years.
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7 | (3) The payment, in certified funds, of
investigation | ||||||
8 | and application fees, the total of which shall be in an
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9 | amount equal to $3,700 $2,700 annually, including the | ||||||
10 | foreclosure prevention surcharge provided for in | ||||||
11 | subsection (c) of this Section; however, the Commissioner | ||||||
12 | may
increase the
investigation and application fees by rule | ||||||
13 | as provided in Section 4-11.
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14 | (4) Except for a broker applying to renew a license, | ||||||
15 | the filing of an
audited balance sheet including all | ||||||
16 | footnotes prepared by a certified public
accountant in | ||||||
17 | accordance with generally accepted accounting principles | ||||||
18 | and
generally accepted auditing principles which evidences | ||||||
19 | that the applicant meets
the net worth requirements of | ||||||
20 | Section 3-5.
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21 | (5) The filing of proof satisfactory to the | ||||||
22 | Commissioner that the
applicant, the members thereof if the | ||||||
23 | applicant is a partnership or
association, the members or | ||||||
24 | managers thereof that retain any authority or
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25 | responsibility under the operating agreement if the | ||||||
26 | applicant is a limited
liability company, or the officers |
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1 | thereof if the applicant
is a corporation have 3 years | ||||||
2 | experience preceding application
in real estate finance. | ||||||
3 | Instead of this requirement, the applicant and the
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4 | applicant's officers or members, as applicable, may
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5 | satisfactorily complete a program of education in real | ||||||
6 | estate finance and
fair lending, as
approved by the | ||||||
7 | Commissioner, prior to receiving the
initial license.
The | ||||||
8 | Commissioner shall promulgate rules regarding proof of | ||||||
9 | experience
requirements and educational requirements and | ||||||
10 | the satisfactory completion of
those requirements. The | ||||||
11 | Commissioner may establish by rule a list of duly
licensed | ||||||
12 | professionals and others who may be exempt from this | ||||||
13 | requirement.
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14 | (6) An investigation of the averments required by | ||||||
15 | Section 2-4, which
investigation must allow the | ||||||
16 | Commissioner to issue positive findings stating
that the | ||||||
17 | financial responsibility, experience, character, and | ||||||
18 | general fitness
of the license applicant and of the members | ||||||
19 | thereof if the license applicant is
a partnership or | ||||||
20 | association, of the officers and directors thereof if the
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21 | license applicant is a corporation, and of the managers and | ||||||
22 | members that retain
any authority or responsibility under | ||||||
23 | the operating agreement if the license
applicant is a | ||||||
24 | limited liability company are such as to command the | ||||||
25 | confidence
of the community and to warrant belief that the | ||||||
26 | business will be operated
honestly, fairly and efficiently |
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1 | within the purpose of this Act. If the
Commissioner shall | ||||||
2 | not so find, he or she shall not issue such license, and he
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3 | or she shall notify the license applicant of the denial. | ||||||
4 | The Commissioner may impose conditions on a license if the | ||||||
5 | Commissioner determines that the conditions are necessary or | ||||||
6 | appropriate. These conditions shall be imposed in writing and | ||||||
7 | shall continue in effect for the period prescribed by the | ||||||
8 | Commissioner.
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9 | (b) All licenses shall be issued in duplicate with one copy
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10 | being transmitted to the license applicant and the second being
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11 | retained with the Commissioner.
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12 | Upon receipt of such license, a residential mortgage | ||||||
13 | licensee shall be
authorized to engage in the business | ||||||
14 | regulated by this Act. Such license
shall remain in full force | ||||||
15 | and effect until it expires without renewal, is
surrendered by | ||||||
16 | the licensee or revoked or suspended as hereinafter provided.
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17 | (c) Any application for issuance or renewal of a license | ||||||
18 | for a period beginning on or after July 1, 2008, shall include | ||||||
19 | payment of a foreclosure prevention surcharge in the amount of | ||||||
20 | $1,000. All proceeds from the surcharge shall be deposited into | ||||||
21 | the Foreclosure Prevention Counseling Fund. | ||||||
22 | (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
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23 | Section 99. Effective date. This Act takes effect upon | ||||||
24 | becoming law.
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