Rep. Angelo Saviano

Filed: 3/19/2010

 

 


 

 


 
09600HB5868ham002 LRB096 18123 ASK 39273 a

1
AMENDMENT TO HOUSE BILL 5868

2     AMENDMENT NO. ______. Amend House Bill 5868, AS AMENDED, by
3 replacing everything after the enacting clause with the
4 following:
 
5     "Section 5. The Real Estate Appraiser Licensing Act of 2002
6 is amended by changing Sections 1-10, 5-5, 10-10, 15-5, 15-15,
7 and 25-10 and by adding Section 5-20.3 as follows:
 
8     (225 ILCS 458/1-10)
9     (Section scheduled to be repealed on January 1, 2012)
10     Sec. 1-10. Definitions. As used in this Act, unless the
11 context otherwise requires:
12     "Accredited college or university, junior college, or
13 community college" means a college or university, junior
14 college, or community college that is approved or accredited by
15 the Board of Higher Education, a regional or national
16 accreditation association, or by an accrediting agency that is

 

 

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1 recognized by the U.S. Secretary of Education.
2     "Applicant" means person who applies to the Department for
3 a license under this Act.
4     "Appraisal" means (noun) the act or process of developing
5 an opinion of value; an opinion of value (adjective) of or
6 pertaining to appraising and related functions, such as
7 appraisal practice or appraisal services.
8     "Appraisal assignment" means a valuation service provided
9 as a consequence of an agreement between an appraiser and a
10 client.
11     "Appraisal company" means any individual, corporation,
12 partnership, sole proprietorship, subsidiary, unit, or other
13 business entity that (i) administers networks of independent
14 contractor appraisers to perform real estate appraisal
15 services for clients; (ii) receives requests for real estate
16 appraisal services from clients and enters into an agreement
17 with one or more independent contractor appraisers to perform
18 the real estate appraisal services contained in the request; or
19 (iii) otherwise serves as a third-party broker of appraisal
20 services between clients and appraisers.
21     For the purposes of this definition, "appraisal company"
22 includes an appraisal management company.
23     "Appraisal consulting" means the act or process of
24 developing an analysis, recommendation, or opinion to solve a
25 problem, where an opinion of value is a component of the
26 analysis leading to the assignment results.

 

 

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1     "Appraisal management company" means a business entity
2 that (i) administers a network of certified and licensed
3 appraisers to fulfill real estate appraisal assignments on
4 behalf of mortgage lending institutions, as well as other
5 entities; (ii) recruits, qualifies, verifies the licensing of,
6 and negotiates fees and service level expectations with a
7 network of third-party appraisers; (iii) provides
8 administrative duties including order entry and assignment,
9 tracking and status updates, pre-delivery quality control, and
10 preliminary and hard copy report delivery; and (iv) involves
11 ongoing quality control, accounts payable and receivable,
12 market value dispute resolution, warranty administration, and
13 record retention.
14     "Appraisal practice" means valuation services performed by
15 an individual acting as an appraiser, including, but not
16 limited to, appraisal, appraisal review, or appraisal
17 consulting.
18     "Appraisal report" means any communication, written or
19 oral, of an appraisal, appraisal review, or appraisal
20 consulting service that is transmitted to a client upon
21 completion of an assignment.
22     "Appraisal review" means the act or process of developing
23 and communicating an opinion about the quality of another
24 appraiser's work that was performed as part of an appraisal,
25 appraisal review, or appraisal assignment.
26     "Appraisal Subcommittee" means the Appraisal Subcommittee

 

 

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1 of the Federal Financial Institutions Examination Council as
2 established by Title XI.
3     "Appraiser" means a person, corporation, limited liability
4 company, registered limited liability partnership, or
5 partnership that who performs real estate or real property
6 appraisals. "Appraiser" does not mean an appraisal company or
7 appraisal management company.
8     "AQB" means the Appraisal Qualifications Board of the
9 Appraisal Foundation.
10     "Associate real estate trainee appraiser" means an
11 entry-level appraiser who holds a license of this
12 classification under this Act with restrictions as to the scope
13 of practice in accordance with this Act.
14     "Board" means the Real Estate Appraisal Administration and
15 Disciplinary Board.
16     "Classroom hour" means 50 minutes of instruction out of
17 each 60 minute segment of coursework.
18     "Client" means (i) the party or parties who engage an
19 appraiser or appraisal management company by employment or
20 contract in a specific assignment or (ii) the person who
21 utilizes the services of an appraiser or engages an appraiser
22 for an appraisal by employment or contract in a specific
23 assignment.
24     "Coordinator" means the Coordinator of Real Estate
25 Appraisal of the Division of Professional Regulation of the
26 Department of Financial and Professional Regulation.

 

 

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1     "Department" means the Department of Financial and
2 Professional Regulation.
3     "Due date" means the agreed upon date, based on Central
4 Standard Time, by which an assignment result is to be received
5 by the client.
6     "Federal financial institutions regulatory agencies" means
7 the Board of Governors of the Federal Reserve System, the
8 Federal Deposit Insurance Corporation, the Office of the
9 Comptroller of the Currency, the Office of Thrift Supervision,
10 and the National Credit Union Administration.
11     "Federally related transaction" means any real
12 estate-related financial transaction in which a federal
13 financial institutions regulatory agency, the Department of
14 Housing and Urban Development, Fannie Mae, Freddie Mae, or the
15 National Credit Union Administration engages in, contracts
16 for, or regulates and requires the services of an appraiser.
17     "Financial institution" means any bank, savings bank,
18 savings and loan association, credit union, mortgage broker,
19 mortgage banker, licensee under the Consumer Installment Loan
20 Act or the Sales Finance Agency Act, or a corporate fiduciary,
21 subsidiary, affiliate, parent company, or holding company of
22 any such licensee, or any institution involved in real estate
23 financing that is regulated by state or federal law.
24     "Managing appraiser" means a certified appraiser who has
25 supervisory responsibilities for licensees in one or, in the
26 case of a multi-office company, more than one office and who

 

 

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1 has been appointed as such by the owning appraiser.
2     "Modular Course" means the Appraisal Qualifying Course
3 Design conforming to the Sub Topics Course Outline contained in
4 the AQB Criteria 2008.
5     "Real estate" means an identified parcel or tract of land,
6 including any improvements.
7     "Real estate related financial transaction" means any
8 transaction involving:
9         (1) the sale, lease, purchase, investment in, or
10     exchange of real property, including interests in property
11     or the financing thereof;
12         (2) the refinancing of real property or interests in
13     real property; and
14         (3) the use of real property or interest in property as
15     security for a loan or investment, including mortgage
16     backed securities.
17     "Real property" means the interests, benefits, and rights
18 inherent in the ownership of real estate.
19     "Secretary" means the Secretary of Financial and
20 Professional Regulation.
21     "State certified general real estate appraiser" means an
22 appraiser who holds a license of this classification under this
23 Act and such classification applies to the appraisal of all
24 types of real property without restrictions as to the scope of
25 practice.
26     "State certified residential real estate appraiser" means

 

 

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1 an appraiser who holds a license of this classification under
2 this Act and such classification applies to the appraisal of
3 one to 4 units of residential real property without regard to
4 transaction value or complexity, but with restrictions as to
5 the scope of practice in a federally related transaction in
6 accordance with Title XI, the provisions of USPAP, criteria
7 established by the AQB, and further defined by rule.
8     "Supervising appraiser" means either (i) an appraiser who
9 holds a valid license under this Act as either a State
10 certified general real estate appraiser or a State certified
11 residential real estate appraiser, who co-signs an appraisal
12 report for an associate real estate trainee appraiser or (ii) a
13 State certified general real estate appraiser who holds a valid
14 license under this Act who co-signs an appraisal report for a
15 State certified residential real estate appraiser on
16 properties other than one to 4 units of residential real
17 property without regard to transaction value or complexity.
18     "Title XI" means Title XI of the federal Financial
19 Institutions Reform, Recovery and Enforcement Act of 1989.
20     "Turnaround time" or "turn time" means the period from when
21 an appraisal assignment is accepted by an appraiser or
22 appraisal company until it is received by the vendor management
23 company.
24     "USPAP" means the Uniform Standards of Professional
25 Appraisal Practice as promulgated by the Appraisal Standards
26 Board pursuant to Title XI and by rule.

 

 

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1     "Valuation services" means services pertaining to aspects
2 of property value.
3 (Source: P.A. 96-844, eff. 12-23-09.)
 
4     (225 ILCS 458/5-5)
5     (Section scheduled to be repealed on January 1, 2012)
6     Sec. 5-5. Necessity of license; use of title; exemptions.
7     (a) It is unlawful for a person to (i) act, offer services,
8 or advertise services as a State certified general real estate
9 appraiser, State certified residential real estate appraiser,
10 or associate real estate trainee appraiser, (ii) develop a real
11 estate appraisal, (iii) practice as a real estate appraiser,
12 (iv) advertise or hold himself or herself out to be a real
13 estate appraiser, or (v) solicit clients or enter into an
14 appraisal engagement with clients without a license issued
15 under this Act. A person who violates this subsection is guilty
16 of a Class A misdemeanor for a first offense and a Class 4
17 felony for any subsequent offense.
18     (b) It is unlawful for a person, other than a person who
19 holds a valid license issued pursuant to this Act as a State
20 certified general real estate appraiser, a State certified
21 residential real estate appraiser, or an associate real estate
22 trainee appraiser to use these titles or any other title,
23 designation, or abbreviation likely to create the impression
24 that the person is licensed as a real estate appraiser pursuant
25 to this Act. A person who violates this subsection is guilty of

 

 

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1 a Class A misdemeanor for a first offense and a Class 4 felony
2 for any subsequent offense.
3     (b-1) It is unlawful for any person, corporation, limited
4 liability company, registered limited liability partnership,
5 or partnership (i) to act as an appraiser or appraisal company
6 or to advertise or assume to act as such appraiser or appraisal
7 company without a properly issued license issued under this Act
8 by the Department, either directly or through its authorized
9 designee; (ii) to develop a real estate appraisal; (iii) to
10 practice as a real estate appraiser; (iv) to advertise or hold
11 himself, herself, or itself out to be a real estate appraiser
12 or appraisal company; or (v) to solicit clients or enter into
13 an appraisal engagement with clients without a real estate
14 appraiser license or appraisal company license issued under
15 this Act. A person who violates this subsection (b-1) is guilty
16 of a Class A misdemeanor for a first offense and a Class 4
17 felony for any subsequent offense.
18     (b-2) No corporation shall be granted a license or engage
19 in the business or capacity, either directly or indirectly, of
20 a real estate appraiser or appraisal company, unless every
21 officer of the corporation who actively participates in the
22 activities of the corporation holds a license as a certified
23 general real estate appraiser or a certified residential real
24 estate appraiser and unless every employee who acts as an
25 appraiser for the corporation holds a license as a certified
26 general real estate appraiser, a certified residential real

 

 

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1 estate appraiser, or an associate real estate appraisal
2 trainee.
3     (b-3) No partnership shall be granted a license or engage
4 in the business or serve in the capacity, either directly or
5 indirectly, of a real estate appraiser or appraisal company
6 unless every general partner in the partnership holds a license
7 as a certified general real estate appraiser or as a certified
8 residential real estate appraiser and unless every employee who
9 acts as an appraiser holds a license as a certified general
10 real estate appraiser, a certified residential appraiser, or as
11 an associate real estate appraisal trainee.
12     In the case of a registered limited liability partnership
13 (LLP), every partner in the LLP must hold a license as a
14 certified certified general real estate appraiser or as a
15 certified residential real estate appraiser and every employee
16 who acts as an appraiser must hold a license as a certified
17 general real estate appraiser, a certified residential real
18 estate appraiser, or an associate real estate appraisal
19 trainee.
20     (b-4) No limited liability company shall be granted a
21 license or engage in the business or serve in the capacity,
22 either directly or indirectly, of a real estate appraiser or
23 appraisal company unless every member, employee, and
24 independent contractor of the limited liability company who
25 acts as an appraiser holds a license as a certified residential
26 real estate appraiser or an associate real estate appraisal

 

 

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1 trainee.
2     (b-5) No person, corporation, limited liability company,
3 registered limited liability partnership, or partnership shall
4 be licensed to conduct an appraisal business if an individual
5 or group of individuals who are not licensed as certified
6 appraisers in this State directly own or indirectly control
7 more than 49% of the shares of stock or other ownership in the
8 partnership or corporation.
9     (b-6) Except as provided in this Section, each appraiser
10 shall maintain a definite office or place of business within
11 this State for the transaction of appraisal business, and shall
12 conspicuously display his or her license in his or her office
13 or place of business. An appraiser who is licensed in this
14 State pursuant to Sections 5-10, 5-15, and 5-30 of this Act
15 shall not be required to maintain a definite office or place of
16 business in this State provided all of the following conditions
17 are met:
18         (1) the appraiser maintains an active certified
19     general real estate appraiser license or a certified
20     residential real estate appraiser license in the
21     appraiser's state of domicile
22         (2) the appraiser maintains an office in the
23     appraiser's state of domicile; and
24         (3) the appraiser has filed with the Department written
25     statements appointing the Secretary to act as the
26     appraiser's agent upon whom all judicial and other process

 

 

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1     or legal notices directed to the licensee may be served and
2     agreeing to abide by all of the provisions of this Act with
3     respect to his or her appraisal activities within the State
4     of Illinois and submitting to the jurisdiction of the
5     Department.
6     (b-7) Except as provided in this Section, each appraisal
7 company shall maintain a definite office or place of business
8 within this State for the transaction of appraisal business,
9 and shall conspicuously display its license in its office or
10 place of business. An appraisal company that is licensed in
11 this State pursuant to Section 5-20.3 of this Act shall not be
12 required to maintain a definite office or place of business in
13 this State provided all of the following conditions are met:
14         (1) the appraisal company is authorized to conduct
15     business as an appraisal company in its state of domicile
16         (2) the appraisal company maintains an office in its
17     state of domicile; and
18         (3) the appraisal company has filed with the Department
19     written statements appointing the Secretary to act as the
20     appraisal company's agent upon whom all judicial and other
21     process or legal notices directed to the licensee may be
22     served and agreeing to abide by all of the provisions of
23     this Act with respect to its appraisal activities within
24     the State of Illinois and submitting to the jurisdiction of
25     the Department.
26     (b-8) Upon the loss of a managing appraiser who is not

 

 

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1 replaced or in the event of the death or adjudicated disability
2 of the sole proprietor of an office, a written request for
3 authorization allowing the continued operation of the office
4 may be submitted to the Department within 15 days after the
5 loss. The Department may issue a written authorization allowing
6 the continued operation, provided that a certified appraiser,
7 or in the case of the death or adjudicated disability of a sole
8 proprietor, the representative of the estate assumes
9 responsibility, in writing, for the operation of the office and
10 agrees to personally supervise the operation of the office. No
11 such written authorization shall be valid for more than 60 days
12 unless extended by the Department for good cause shown and upon
13 written request by the appraiser or representative.
14     (c) The licensing requirements of this Act do not require a
15 person who holds a valid license pursuant to the Real Estate
16 License Act of 2000, to be licensed as a real estate appraiser
17 under this Act, unless that person is providing or attempting
18 to provide an appraisal report, as defined in Section 1-10 of
19 this Act, in connection with a federally-related transaction.
20 Nothing in this Act shall prohibit a person who holds a valid
21 license under the Real Estate License Act of 2000 from
22 performing a comparative market analysis or broker price
23 opinion for compensation, provided that the person does not
24 hold himself out as being a licensed real estate appraiser.
25     (d) Nothing in this Act shall preclude a State certified
26 general real estate appraiser, a State certified residential

 

 

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1 real estate appraiser, or an associate real estate trainee
2 appraiser from rendering appraisals for or on behalf of a
3 partnership, association, corporation, firm, or group.
4 However, no State appraisal license or certification shall be
5 issued under this Act to a partnership, association,
6 corporation, firm, or group.
7     (e) This Act does not apply to a county assessor, township
8 assessor, multi-township assessor, county supervisor of
9 assessments, or any deputy or employee of any county assessor,
10 township assessor, multi-township assessor, or county
11 supervisor of assessments who is performing his or her
12 respective duties in accordance with the provisions of the
13 Property Tax Code.
14     (f) A State real estate appraisal certification or license
15 is not required under this Act for any of the following:
16         (1) A person, partnership, association, or corporation
17     that performs appraisals of property owned by that person,
18     partnership, association, or corporation for the sole use
19     of that person, partnership, association, or corporation.
20         (2) A court-appointed commissioner who conducts an
21     appraisal pursuant to a judicially ordered evaluation of
22     property.
23 However, any person who is certified or licensed under this Act
24 and who performs any of the activities set forth in this
25 subsection (f) must comply with the provisions of this Act. A
26 person who violates this subsection (f) is guilty of a Class A

 

 

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1 misdemeanor for a first offense and a Class 4 felony for any
2 subsequent offense.
3     (g) This Act does not apply to an employee, officer,
4 director, or member of a credit or loan committee of a
5 financial institution or any other person engaged by a
6 financial institution when performing an evaluation of real
7 property for the sole use of the financial institution in a
8 transaction for which the financial institution would not be
9 required to use the services of a State licensed or State
10 certified appraiser pursuant to federal regulations adopted
11 under Title XI of the federal Financial Institutions Reform,
12 Recovery, and Enforcement Act of 1989, nor does this Act apply
13 to the procurement of an automated valuation model.
14     "Automated valuation model" means an automated system that
15 is used to derive a property value through the use of publicly
16 available property records and various analytic methodologies
17 such as comparable sales prices, home characteristics, and
18 historical home price appreciations.
19     (h) This Act does not apply to a corporate relocation
20 company whereby the appraisal is not used for mortgage purposes
21 and the end user client is an employer company.
22     (i) This Section shall not be applicable to appraisers or
23 appraisal companies that contract with independent appraisers
24 for the performance of fewer than 10 appraisals in this State
25 in a calendar year.
26 (Source: P.A. 96-844, eff. 12-23-09.)
 

 

 

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1     (225 ILCS 458/5-20.3 new)
2     (Section scheduled to be repealed on January 1, 2012)
3     Sec. 5-20.3. Licensure of appraisal company. The
4 Department of Financial and Professional Regulation shall
5 adopt by rule standards for the licensure of appraisal
6 companies designed to protect the public interest and to ensure
7 compliance with this Act. The Department shall specify any
8 qualifications, including education or training, necessary for
9 licensure. The fee for licensure as an appraisal company
10 license shall not exceed $50.
 
11     (225 ILCS 458/10-10)
12     (Section scheduled to be repealed on January 1, 2012)
13     Sec. 10-10. Standards of practice. All persons licensed
14 under this Act as certified general real estate appraisers,
15 certified residential real estate appraisers, or associate
16 real estate appraisal trainees must comply with standards of
17 professional appraisal practice adopted by the Department. The
18 Department must adopt, as part of its rules, the Uniform
19 Standards of Professional Appraisal Practice (USPAP) as
20 published from time to time by the Appraisal Standards Board of
21 the Appraisal Foundation. The Department shall consider
22 federal laws and regulations regarding the licensure of real
23 estate appraisers prior to adopting its rules for the
24 administration of this Act. An appraisal company shall not

 

 

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1 request that an appraiser in any way violate the standards of
2 USPAP. An appraisal company shall not redact or otherwise
3 obscure compensation related disclosures contained within the
4 body of an appraisal report.
5 (Source: P.A. 96-844, eff. 12-23-09.)
 
6     (225 ILCS 458/15-5)
7     (Section scheduled to be repealed on January 1, 2012)
8     Sec. 15-5. Unlicensed practice; civil penalty; injunctive
9 relief; unlawful influence.
10     (a) A person who violates Section 5-5 of this Act shall, in
11 addition to any other penalty provided by law, pay a civil
12 penalty to the Department in an amount not to exceed $25,000
13 for each violation as determined by the Secretary. The civil
14 penalty shall be assessed by the Secretary after a hearing in
15 accordance with the provisions of this Act regarding the
16 provision of a hearing for the discipline of a license.
17     (b) The Department has the authority to investigate any
18 activity that may violate this Act.
19     (c) A civil penalty imposed pursuant to subsection (a)
20 shall be paid within 60 days after the effective date of the
21 order imposing the civil penalty. The order shall constitute a
22 judgment and may be filed and executed in the same manner as
23 any judgment from any court of record. Any civil penalty
24 collected under this Act shall be made payable to the
25 Department of Financial and Professional Regulation and

 

 

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1 deposited into the Appraisal Administration Fund. In addition
2 to or in lieu of the imposition of a civil penalty, the
3 Department may report a violation of this Act or the failure or
4 refusal to comply with an order of the Department to the
5 Attorney General or to the appropriate State's Attorney.
6     (d) Practicing as an appraiser without holding a valid
7 license as required under this Act is declared to be adverse to
8 the public welfare, to constitute a public nuisance, and to
9 cause irreparable harm to the public welfare. The Secretary,
10 the Attorney General, or the State's Attorney of any county in
11 the State may maintain an action for injunctive relief in any
12 circuit court to enjoin any person from engaging in such
13 practice.
14     Upon the filing of a verified petition in a circuit court,
15 the court, if satisfied by affidavit or otherwise that a person
16 has been engaged in the practice of real estate appraisal
17 without a valid license, may enter a temporary restraining
18 order without notice or bond enjoining the defendant from
19 further practice. The showing of non-licensure, by affidavit or
20 otherwise, is sufficient for the issuance of a temporary
21 injunction. If it is established that the defendant has been or
22 is engaged in unlawful practice, the court may enter an order
23 or judgment perpetually enjoining the defendant from further
24 unlawful practice. In all proceedings under this Section, the
25 court, in its discretion, may apportion the costs among the
26 parties interested in the action, including the cost of filing

 

 

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1 the complaint, service of process, witness fees and expenses,
2 court reporter charges, and reasonable attorneys' fees. These
3 injunction proceedings shall be in addition to, and not in lieu
4 of, all penalties and other remedies provided in this Act.
5     (e) No person shall influence or attempt to influence
6 through coercion, extortion, or bribery the independent
7 judgment of an appraiser licensed or certified under this Act
8 in the development, reporting, result, or review of a real
9 estate appraisal. A person who violates this subsection (e) is
10 guilty of a Class A misdemeanor for the first offense and a
11 Class 4 felony for any subsequent offense.
12     (f) It shall be unlawful for any employee, director,
13 officer, or agent of an appraisal company licensed in this
14 State to influence or attempt to influence the development,
15 reporting, or review of an appraisal through coercion,
16 extortion, collusion, compensation, instruction, inducement,
17 intimidation, bribery, or in any other manner, including, but
18 not limited to, the following:
19         (1) withholding or threatening to withhold timely
20     payment for an appraisal;
21         (2) withholding or threatening to withhold future
22     business for an independent appraiser, or demoting or
23     terminating or threatening to demote or terminate an
24     independent appraiser;
25         (3) imposing turnaround time monetary penalties that
26     are not specified at the time of engagement;

 

 

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1         (4) requiring an appraiser to submit a notice of
2     absence when not an employee of the entity;
3         (5) requiring an appraiser to sign a non-compete clause
4     when not an employee of the entity;
5         (6) requesting the payment of compensation to achieve
6     higher priority in the assignment of appraisal business;
7         (7) requiring an appraiser to pay or otherwise
8     compensate the appraisal company for fees to upload or
9     otherwise deliver an appraisal report, fees for a report
10     transmitted after a due date, or fees for reviewing the
11     report;
12         (8) requiring an appraiser or appraisal company to sign
13     any sort of indemnification agreement that would require
14     the appraiser to defend and hold harmless the appraisal
15     company, any software provider that an appraisal company
16     requires an appraiser to use, or any other entity that the
17     appraisal company does business with, from any liability,
18     damage, loss, or claim that does not arise as a result of
19     the appraiser's performance of the appraisal assignment;
20     and
21         (9) requiring an appraiser who is not an employee of
22     the appraisal company to collect the appraisal fee from the
23     borrower, occupant, or any other person.
24     (g) It shall be unlawful for any licensed appraiser or
25 appraisal company to alter, modify, or otherwise change a
26 completed appraisal report submitted by an independent

 

 

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1 appraiser, including, without limitation, by doing any of the
2 following:
3         (1) permanently removing the appraiser's signature or
4     seal;
5         (2) adding information to, or removing information
6     from, the appraisal report with an intent to change the
7     value conclusion;
8         (3) expressly or impliedly promising future business,
9     promotions, or increased compensation for an independent
10     appraiser;
11         (4) conditioning the request for an appraisal service
12     or the payment of an appraisal fee or salary or bonus on
13     the opinion, conclusion, or valuation to be reached, or on
14     a preliminary estimate or opinion requested from an
15     independent appraiser;
16         (5) requesting that an independent appraiser provide
17     an estimated, predetermined, or desired valuation in an
18     appraisal report, or provide estimated values or
19     comparable sales at any time prior to the independent
20     appraiser's completion of an appraisal service;
21         (6) providing to an independent appraiser an
22     anticipated, estimated, encouraged, or desired value for a
23     subject property or a proposed or target amount to be
24     loaned to the borrower, except that a copy of the sales
25     contract for purchase transactions may be provided;
26         (7) providing to an independent appraiser, or any

 

 

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1     entity or person related to the appraiser, stock or other
2     financial or non-financial benefits;
3         (8) allowing the removal of an independent appraiser
4     from an appraiser panel, without prior written notice to
5     such appraiser;
6         (9) obtaining, using, or paying for a second or
7     subsequent appraisal or ordering an automated valuation
8     model in connection with a mortgage financing transaction
9     unless there is a reasonable basis to believe that the
10     initial appraisal was flawed or tainted and such basis is
11     clearly and appropriately noted in the loan file, or unless
12     such appraisal or automated valuation model is done
13     pursuant to a bona fide pre- or post-funding appraisal
14     review or quality control process; or
15         (10) any other act or practice that impairs or attempts
16     to impair an appraiser's independence, objectivity, or
17     impartiality.
18 (Source: P.A. 96-844, eff. 12-23-09.)
 
19     (225 ILCS 458/15-15)
20     (Section scheduled to be repealed on January 1, 2012)
21     Sec. 15-15. Investigation; notice; hearing.
22     (a) Upon the motion of the Department or the Board or upon
23 a complaint in writing of a person setting forth facts that, if
24 proven, would constitute grounds for suspension, revocation,
25 or other disciplinary action against a licensee or applicant

 

 

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1 for licensure, the Department or the Board shall investigate
2 the actions of the licensee or applicant. If, upon
3 investigation, the Department believes that there may be cause
4 for suspension, revocation, or other disciplinary action, the
5 Department shall use the services of a State certified general
6 real estate appraiser, a State certified residential real
7 estate appraiser, or the Real Estate Coordinator to assist in
8 determining whether grounds for disciplinary action exist
9 prior to commencing formal disciplinary proceedings.
10     (b) Formal disciplinary proceedings shall commence upon
11 the issuance of a written complaint describing the charges that
12 are the basis of the disciplinary action and delivery of the
13 detailed complaint to the address of record of the licensee or
14 applicant. The Department shall notify the licensee or
15 applicant to file a verified written answer within 20 days
16 after the service of the notice and complaint. The notification
17 shall inform the licensee or applicant of his or her right to
18 be heard in person or by legal counsel; that the hearing will
19 be afforded not sooner than 30 days after service of the
20 complaint; that failure to file an answer will result in a
21 default being entered against the licensee or applicant; that
22 the license may be suspended, revoked, or placed on
23 probationary status; and that other disciplinary action may be
24 taken pursuant to this Act, including limiting the scope,
25 nature, or extent of the licensee's practice. If the licensee
26 or applicant fails to file an answer after service of notice,

 

 

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1 his or her license may, at the discretion of the Department, be
2 suspended, revoked, or placed on probationary status and the
3 Department may take whatever disciplinary action it deems
4 proper, including limiting the scope, nature, or extent of the
5 person's practice, without a hearing.
6     (c) At the time and place fixed in the notice, the Board
7 shall conduct hearing of the charges, providing both the
8 accused person and the complainant ample opportunity to present
9 in person or by counsel such statements, testimony, evidence,
10 and argument as may be pertinent to the charges or to a defense
11 thereto.
12     (d) The Board shall present to the Secretary a written
13 report of its findings and recommendations. A copy of the
14 report shall be served upon the licensee or applicant, either
15 personally or by certified mail. Within 20 days after the
16 service, the licensee or applicant may present the Secretary
17 with a motion in writing for either a rehearing, a proposed
18 finding of fact, a conclusion of law, or an alternative
19 sanction, and shall specify the particular grounds for the
20 request. If the accused orders a transcript of the record as
21 provided in this Act, the time elapsing thereafter and before
22 the transcript is ready for delivery to the accused shall not
23 be counted as part of the 20 days. If the Secretary is not
24 satisfied that substantial justice has been done, the Secretary
25 may order a rehearing by the Board or other special committee
26 appointed by the Secretary, may remand the matter to the Board

 

 

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1 for its reconsideration of the matter based on the pleadings
2 and evidence presented to the Board, or may enter a final order
3 in contravention of the Board's recommendation. In all
4 instances under this Act in which the Board has rendered a
5 recommendation to the Secretary with respect to a particular
6 licensee or applicant, the Secretary, if he or she disagrees
7 with the recommendation of the Board, shall file with the Board
8 and provide to the licensee or applicant a copy of the
9 Secretary's specific written reasons for disagreement with the
10 Board. The reasons shall be filed within 60 days of the Board's
11 recommendation to the Secretary and prior to any contrary
12 action. Notwithstanding a licensee's or applicant's failure to
13 file a motion for rehearing, the Secretary shall have the right
14 to take any of the actions specified in this subsection (d).
15 Upon the suspension or revocation of a license, the licensee
16 shall be required to surrender his or her license to the
17 Department, and upon failure or refusal to do so, the
18 Department shall have the right to seize the license.
19     (e) The Department has the power to issue subpoenas and
20 subpoenas duces tecum to bring before it any person in this
21 State, to take testimony, or to require production of any
22 records relevant to an inquiry or hearing by the Board in the
23 same manner as prescribed by law in judicial proceedings in the
24 courts of this State. In a case of refusal of a witness to
25 attend, testify, or to produce books or papers concerning a
26 matter upon which he or she might be lawfully examined, the

 

 

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1 circuit court of the county where the hearing is held, upon
2 application of the Department or any party to the proceeding,
3 may compel obedience by proceedings as for contempt.
4     (f) Any license that is suspended indefinitely or revoked
5 may not be restored for a minimum period of 2 years, or as
6 otherwise ordered by the Secretary.
7     (g) In addition to the provisions of this Section
8 concerning the conduct of hearings and the recommendations for
9 discipline, the Department has the authority to negotiate
10 disciplinary and non-disciplinary settlement agreements
11 concerning any license issued under this Act. All such
12 agreements shall be recorded as Consent Orders or Consent to
13 Administrative Supervision Orders.
14     (h) The Secretary shall have the authority to appoint an
15 attorney duly licensed to practice law in the State of Illinois
16 to serve as the hearing officer in any action to suspend,
17 revoke, or otherwise discipline any license issued by the
18 Department. The Hearing Officer shall have full authority to
19 conduct the hearing.
20     (i) The Department, at its expense, shall preserve a record
21 of all formal hearings of any contested case involving the
22 discipline of a license. At all hearings or pre-hearing
23 conferences, the Department and the licensee shall be entitled
24 to have the proceedings transcribed by a certified shorthand
25 reporter. A copy of the transcribed proceedings shall be made
26 available to the licensee by the certified shorthand reporter

 

 

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1 upon payment of the prevailing contract copy rate.
2 (Source: P.A. 96-844, eff. 12-23-09.)
 
3     (225 ILCS 458/25-10)
4     (Section scheduled to be repealed on January 1, 2012)
5     Sec. 25-10. Real Estate Appraisal Administration and
6 Disciplinary Board; appointment.
7     (a) There is hereby created the Real Estate Appraisal
8 Administration and Disciplinary Board. The Board shall be
9 composed of 11 10 persons appointed by the Governor, plus the
10 Coordinator of the Real Estate Appraisal Division. Members
11 shall be appointed to the Board subject to the following
12 conditions:
13         (1) All appointed members shall have been residents and
14     citizens of this State for at least 5 years prior to the
15     date of appointment.
16         (2) The appointed membership of the Board should
17     reasonably reflect the geographic distribution of the
18     population of the State.
19         (3) Four appointed members shall have been actively
20     engaged and currently licensed as State certified general
21     real estate appraisers for a period of not less than 5
22     years.
23         (4) Two appointed members shall have been actively
24     engaged and currently licensed as State certified
25     residential real estate appraisers for a period of not less

 

 

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1     than 5 years.
2         (5) Two appointed members shall hold a valid license as
3     a real estate broker for at least 10 years prior to the
4     date of the appointment, one of whom shall hold a valid
5     State certified general real estate appraiser license
6     issued under this Act or a predecessor Act for a period of
7     at least 5 years prior to the appointment and one of whom
8     shall hold a valid State certified residential real estate
9     appraiser license issued under this Act or a predecessor
10     Act for a period of at least 5 years prior to the
11     appointment.
12         (6) One appointed member shall be a representative of a
13     financial institution, as evidenced by his or her
14     employment with a financial institution.
15         (7) One appointed member shall represent the interests
16     of the general public. This member or his or her spouse
17     shall not be licensed under this Act nor be employed by or
18     have any interest in an appraisal business, real estate
19     brokerage business, or a financial institution.
20         (8) One appointed member shall be a representative of
21     an appraisal management company, as evidenced by his or her
22     being an officer or employee of an appraisal management
23     company which employs or contracts with, in the aggregate,
24     at least 10 licensed appraisers.
25     In making appointments as provided in paragraphs (3) and
26 (4) of this subsection, the Governor shall give due

 

 

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1 consideration to recommendations by members and organizations
2 representing the profession.
3     In making the appointments as provided in paragraph (5) of
4 this subsection, the Governor shall give due consideration to
5 the recommendations by members and organizations representing
6 the real estate industry.
7     In making the appointment as provided in paragraph (6) of
8 this subsection, the Governor shall give due consideration to
9 the recommendations by members and organizations representing
10 financial institutions.
11     (b) The term for members of the Board shall be 4 years, and
12 each member shall serve until his or her successor is appointed
13 and qualified. No member shall serve more than 10 years in a
14 lifetime.
15     (c) The Governor may terminate the appointment of a member
16 for cause that, in the opinion of the Governor, reasonably
17 justifies the termination. Cause for termination may include,
18 without limitation, misconduct, incapacity, neglect of duty,
19 or missing 4 Board meetings during any one calendar year.
20     (d) A majority of the Board members shall constitute a
21 quorum. A vacancy in the membership of the Board shall not
22 impair the right of a quorum to exercise all of the rights and
23 perform all of the duties of the Board.
24     (e) The Board shall meet at least quarterly and may be
25 convened by the Chairperson, Vice-Chairperson, or 3 members of
26 the Board upon 10 days written notice.

 

 

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1     (f) The Board shall, annually at the first meeting of the
2 fiscal year, elect a Chairperson and Vice-Chairperson from its
3 members. The Chairperson shall preside over the meetings and
4 shall coordinate with the Coordinator in developing and
5 distributing an agenda for each meeting. In the absence of the
6 Chairperson, the Vice-Chairperson shall preside over the
7 meeting.
8     (g) The Coordinator of the Real Estate Appraisal Division
9 shall serve as a member of the Board without vote.
10     (h) The Board shall advise and make recommendations to the
11 Department on the education and experience qualifications of
12 any applicant for initial licensure as a State certified
13 general real estate appraiser or a State certified residential
14 real estate appraiser. The Department shall not make any
15 decisions concerning education or experience qualifications of
16 an applicant for initial licensure as a State certified general
17 real estate appraiser or a State certified residential real
18 estate appraiser without having first received the advice and
19 recommendation of the Board and shall give due consideration to
20 all such advice and recommendations; however, if the Board does
21 not render advice or make a recommendation within a reasonable
22 amount of time, then the Department may render a decision.
23     (h-5) The Board shall issue educational findings, as it
24 deems appropriate.
25     (i) Except as provided in Section 15-17 of this Act, the
26 Board shall hear and make recommendations to the Secretary on

 

 

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1 disciplinary matters that require a formal evidentiary
2 hearing. The Secretary shall give due consideration to the
3 recommendations of the Board involving discipline and
4 questions involving standards of professional conduct of
5 licensees.
6     (j) The Department shall seek and the Board shall provide
7 recommendations to the Department consistent with the
8 provisions of this Act and for the administration and
9 enforcement of all rules adopted pursuant to this Act. The
10 Department shall give due consideration to such
11 recommendations prior to adopting rules.
12     (k) The Department shall seek and the Board shall provide
13 recommendations to the Department on the approval of all
14 courses submitted to the Department pursuant to this Act and
15 the rules adopted pursuant to this Act. The Department shall
16 not approve any courses without having first received the
17 recommendation of the Board and shall give due consideration to
18 such recommendations prior to approving and licensing courses;
19 however, if the Board does not make a recommendation within a
20 reasonable amount of time, then the Department may approve
21 courses.
22     (l) Each voting member of the Board shall receive a per
23 diem stipend in an amount to be determined by the Secretary.
24 Each member shall be paid his or her necessary expenses while
25 engaged in the performance of his or her duties.
26     (m) Members of the Board shall be immune from suit in an

 

 

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1 action based upon any disciplinary proceedings or other acts
2 performed in good faith as members of the Board.
3     (n) If the Department disagrees with any advice or
4 recommendation provided by the Board under this Section to the
5 Secretary or the Department, then notice of such disagreement
6 must be provided to the Board by the Department.
7     (o) Upon resolution adopted at any Board meeting, the
8 exercise of any Board function, power, or duty enumerated in
9 this Section or in subsection (d) of Section 15-10 of this Act
10 may be suspended. The exercise of any suspended function,
11 power, or duty of the Board may be reinstated by a resolution
12 adopted at a subsequent Board meeting. Any resolution adopted
13 pursuant to this Section shall take effect immediately.
14 (Source: P.A. 96-844, eff. 12-23-09.)".