| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||
1 | AN ACT concerning regulation.
| |||||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| |||||||||||||||||||||||||||
3 | represented in the General Assembly:
| |||||||||||||||||||||||||||
4 | Section 5. The Residential Mortgage License Act of 1987 is | |||||||||||||||||||||||||||
5 | amended by changing Sections 2-1, 2-2, 2-6, 4-5, and 4-8 as | |||||||||||||||||||||||||||
6 | follows:
| |||||||||||||||||||||||||||
7 | (205 ILCS 635/2-1) (from Ch. 17, par. 2322-1)
| |||||||||||||||||||||||||||
8 | Sec. 2-1. Licensee Name.
| |||||||||||||||||||||||||||
9 | (a) No person, partnership, association,
corporation, | |||||||||||||||||||||||||||
10 | limited liability company, or other entity engaged in the
| |||||||||||||||||||||||||||
11 | business regulated by this Act
shall operate such business | |||||||||||||||||||||||||||
12 | under a name other than the real names of the entity and
| |||||||||||||||||||||||||||
13 | individuals conducting such business. Such business may in | |||||||||||||||||||||||||||
14 | addition operate under , an assumed corporate name pursuant to
| |||||||||||||||||||||||||||
15 | the Business Corporation Act of 1983, an assumed limited
| |||||||||||||||||||||||||||
16 | liability company
name
pursuant to the Limited Liability | |||||||||||||||||||||||||||
17 | Company Act,
or an assumed business name pursuant to the | |||||||||||||||||||||||||||
18 | Assumed Business Name Act.
| |||||||||||||||||||||||||||
19 | (b) A knowing violation of this Section constitutes an | |||||||||||||||||||||||||||
20 | unlawful practice
within the meaning of this Act, and in | |||||||||||||||||||||||||||
21 | addition to the administrative relief
available under this Act, | |||||||||||||||||||||||||||
22 | may be prosecuted for the commission of a Class A
misdemeanor. | |||||||||||||||||||||||||||
23 | A person who is convicted of a second or subsequent violation
|
| |||||||
| |||||||
1 | of this Section is guilty of a Class 4 felony.
| ||||||
2 | (Source: P.A. 89-355, eff. 8-17-95.)
| ||||||
3 | (205 ILCS 635/2-2)
| ||||||
4 | Sec. 2-2. Application process; investigation; fee.
| ||||||
5 | (a) The Secretary shall issue a license upon completion of | ||||||
6 | all of the
following:
| ||||||
7 | (1) The filing of an application for license with the | ||||||
8 | Director or the Nationwide Mortgage Licensing System and | ||||||
9 | Registry as approved by the Director.
| ||||||
10 | (2) The filing with the Secretary of a listing of | ||||||
11 | judgments entered
against, and bankruptcy petitions by, | ||||||
12 | the license applicant for the
preceding 10 years.
| ||||||
13 | (3) The payment, in certified funds, of
investigation | ||||||
14 | and application fees, the total of which shall be in an
| ||||||
15 | amount equal to $2,700 annually. To comply with the common | ||||||
16 | renewal date and requirements of the Nationwide Mortgage | ||||||
17 | Licensing System and Registry, the term of initial licenses | ||||||
18 | may be extended or shortened with applicable fees prorated | ||||||
19 | or combined accordingly.
| ||||||
20 | (4) Except for a broker applying to renew a license, | ||||||
21 | the filing of an
audited balance sheet including all | ||||||
22 | footnotes prepared by a certified public
accountant in | ||||||
23 | accordance with generally accepted accounting principles | ||||||
24 | and
generally accepted auditing standards which evidences | ||||||
25 | that the applicant meets
the net worth requirements of |
| |||||||
| |||||||
1 | Section 3-5. Notwithstanding the requirements of this | ||||||
2 | subsection, an applicant that is a subsidiary may submit | ||||||
3 | audited consolidated financial statements of its parent, | ||||||
4 | intermediary parent, or ultimate parent as long as the | ||||||
5 | consolidated statements are supported by consolidating | ||||||
6 | statements which include the applicant's financial | ||||||
7 | statement. If the consolidating statements are unaudited, | ||||||
8 | the applicant's chief financial officer shall attest to the | ||||||
9 | applicant's financial statements disclosed in the | ||||||
10 | consolidating statements.
| ||||||
11 | (5) The filing of proof satisfactory to the | ||||||
12 | Commissioner that the
applicant, the members thereof if the | ||||||
13 | applicant is a partnership or
association, the members or | ||||||
14 | managers thereof that retain any authority or
| ||||||
15 | responsibility under the operating agreement if the | ||||||
16 | applicant is a limited
liability company, or the officers | ||||||
17 | thereof if the applicant
is a corporation have 3 years | ||||||
18 | experience preceding application
in real estate finance. | ||||||
19 | Instead of this requirement, the applicant and the
| ||||||
20 | applicant's officers or members, as applicable, may
| ||||||
21 | satisfactorily complete a program of education in real | ||||||
22 | estate finance and
fair lending, as
approved by the | ||||||
23 | Commissioner, prior to receiving the
initial license.
The | ||||||
24 | Commissioner shall promulgate rules regarding proof of | ||||||
25 | experience
requirements and educational requirements and | ||||||
26 | the satisfactory completion of
those requirements. The |
| |||||||
| |||||||
1 | Commissioner may establish by rule a list of duly
licensed | ||||||
2 | professionals and others who may be exempt from this | ||||||
3 | requirement.
| ||||||
4 | (6) An investigation of the averments required by | ||||||
5 | Section 2-4, which
investigation must allow the | ||||||
6 | Commissioner to issue positive findings stating
that the | ||||||
7 | financial responsibility, experience, character, and | ||||||
8 | general fitness
of the license applicant and of the members | ||||||
9 | thereof if the license applicant is
a partnership or | ||||||
10 | association, of the officers and directors thereof if the
| ||||||
11 | license applicant is a corporation, and of the managers and | ||||||
12 | members that retain
any authority or responsibility under | ||||||
13 | the operating agreement if the license
applicant is a | ||||||
14 | limited liability company are such as to command the | ||||||
15 | confidence
of the community and to warrant belief that the | ||||||
16 | business will be operated
honestly, fairly and efficiently | ||||||
17 | within the purpose of this Act. If the
Commissioner shall | ||||||
18 | not so find, he or she shall not issue such license, and he
| ||||||
19 | or she shall notify the license applicant of the denial. | ||||||
20 | The Commissioner may impose conditions on a license if the | ||||||
21 | Commissioner determines that the conditions are necessary or | ||||||
22 | appropriate. These conditions shall be imposed in writing and | ||||||
23 | shall continue in effect for the period prescribed by the | ||||||
24 | Commissioner.
| ||||||
25 | (b) All licenses shall be issued to the license applicant.
| ||||||
26 | Upon receipt of such license, a residential mortgage |
| |||||||
| |||||||
1 | licensee shall be
authorized to engage in the business | ||||||
2 | regulated by this Act. Such license
shall remain in full force | ||||||
3 | and effect until it expires without renewal, is
surrendered by | ||||||
4 | the licensee or revoked or suspended as hereinafter provided.
| ||||||
5 | (Source: P.A. 97-891, eff. 8-3-12; 98-1081, eff. 1-1-15 .)
| ||||||
6 | (205 ILCS 635/2-6)
| ||||||
7 | Sec. 2-6. License issuance and renewal; fee.
| ||||||
8 | (a) Licenses Beginning July 1, 2003, licenses shall be | ||||||
9 | renewed every year using on the
anniversary of the date of | ||||||
10 | issuance of the original license, or the common renewal date of | ||||||
11 | the Nationwide Mortgage Licensing System and Registry as | ||||||
12 | adopted by the Director. To comply with the common renewal date | ||||||
13 | of the Nationwide Mortgage Licensing System and Registry, the | ||||||
14 | term of existing licenses may be extended or shortened with | ||||||
15 | applicable fees prorated accordingly.
Properly completed | ||||||
16 | renewal application forms and filing fees must be received
by | ||||||
17 | the Secretary 30 60 days prior to the license expiration | ||||||
18 | renewal date to be timely received .
| ||||||
19 | (b) It shall be the responsibility of each licensee to | ||||||
20 | accomplish renewal
of its license ; failure of the licensee to | ||||||
21 | receive renewal forms absent a
request sent by certified mail | ||||||
22 | for such forms will not waive said
responsibility . Failure by a | ||||||
23 | licensee to submit a properly completed
renewal application | ||||||
24 | form and fees in a timely fashion, absent a written
extension | ||||||
25 | from the Secretary, will result in the license becoming |
| |||||||
| |||||||
1 | inactive. in the assessment of
additional fees, as follows:
| ||||||
2 | (1) A fee of $567.50 will be assessed to the licensee | ||||||
3 | 30 days
after the
proper renewal date and $1,135 each month | ||||||
4 | thereafter, until the
license is
either renewed or expires | ||||||
5 | pursuant to Section 2-6, subsections (c) and (d),
of this | ||||||
6 | Act.
| ||||||
7 | (2) Such fee will be assessed without prior notice to | ||||||
8 | the licensee, but
will be assessed only in cases wherein | ||||||
9 | the Secretary has in his or her
possession documentation of | ||||||
10 | the licensee's continuing activity for which
the unrenewed | ||||||
11 | license was issued.
| ||||||
12 | (c) A license which is not renewed by the date required in | ||||||
13 | this Section
shall automatically become inactive. No activity | ||||||
14 | regulated by this Act
shall be conducted by the licensee when a | ||||||
15 | license becomes inactive. The Commissioner may require the | ||||||
16 | licensee to provide a plan for the disposition of any | ||||||
17 | residential mortgage loans not closed or funded when the | ||||||
18 | license becomes inactive. The Commissioner may allow a licensee | ||||||
19 | with an inactive license to conduct activities regulated by | ||||||
20 | this Act for the sole purpose of assisting borrowers in the | ||||||
21 | closing or funding of loans for which the loan application was | ||||||
22 | taken from a borrower while the license was active. An
inactive | ||||||
23 | license may be reactivated by the Commissioner upon payment of | ||||||
24 | the renewal fee, and payment
of a reactivation fee equal to the | ||||||
25 | renewal fee.
| ||||||
26 | (d) (Blank) A license which is not renewed within one year |
| |||||||
| |||||||
1 | of becoming inactive
shall expire .
| ||||||
2 | (e) A licensee ceasing an activity or activities regulated | ||||||
3 | by this Act
and desiring to no longer be licensed shall so | ||||||
4 | inform the Commissioner in
writing and, at the same time, | ||||||
5 | convey any the license issued and all other symbols or
indicia | ||||||
6 | of licensure. The licensee shall include a plan for the | ||||||
7 | withdrawal
from regulated business, including a timetable for | ||||||
8 | the disposition of the
business, and comply with the surrender | ||||||
9 | guidelines or requirements of the Director. Upon receipt of | ||||||
10 | such written notice, the Commissioner shall post the | ||||||
11 | cancellation or issue
a certified statement canceling the | ||||||
12 | license.
| ||||||
13 | (Source: P.A. 95-1047, eff. 4-6-09; 96-112, eff. 7-31-09; | ||||||
14 | 96-1000, eff. 7-2-10.)
| ||||||
15 | (205 ILCS 635/4-5) (from Ch. 17, par. 2324-5)
| ||||||
16 | Sec. 4-5. Suspension, revocation of licenses; fines.
| ||||||
17 | (a) Upon written notice to a licensee, the Commissioner may | ||||||
18 | suspend
or revoke any license issued pursuant to this Act if he | ||||||
19 | or she shall make a
finding of one or more of the following in | ||||||
20 | the notice that:
| ||||||
21 | (1) Through separate acts or an act or a course of | ||||||
22 | conduct, the licensee
has violated any provisions of this | ||||||
23 | Act, any rule or regulation
promulgated by the Commissioner | ||||||
24 | or of any other law, rule or regulation of
this State or | ||||||
25 | the United States.
|
| |||||||
| |||||||
1 | (2) Any fact or condition exists which, if it had | ||||||
2 | existed at the time of
the original application for such | ||||||
3 | license would have warranted the
Commissioner in refusing | ||||||
4 | originally to issue such license.
| ||||||
5 | (3) If a licensee is other than an individual, any | ||||||
6 | ultimate
equitable owner, officer, director, or member of | ||||||
7 | the licensed partnership,
association, corporation, or | ||||||
8 | other entity has so acted or failed to act as
would be | ||||||
9 | cause for suspending or revoking a license to that party as | ||||||
10 | an
individual.
| ||||||
11 | (b) No license shall be suspended or revoked, except as | ||||||
12 | provided in this
Section, nor shall any licensee be fined | ||||||
13 | without notice of his or her right
to a hearing as provided in | ||||||
14 | Section 4-12 of this Act.
| ||||||
15 | (c) The Commissioner, on good cause shown that an emergency | ||||||
16 | exists, may
suspend any license for a period not
exceeding 180 | ||||||
17 | days, pending investigation. Upon a showing that a
licensee has | ||||||
18 | failed to meet the experience or educational requirements of
| ||||||
19 | Section 2-2 or the requirements of subsection (g) of Section | ||||||
20 | 3-2, the
Commissioner shall suspend, prior to hearing as | ||||||
21 | provided in Section 4-12, the
license until those requirements | ||||||
22 | have been met.
| ||||||
23 | (d) The provisions of subsection (e) of Section 2-6 of this | ||||||
24 | Act
shall not affect a licensee's civil or criminal liability
| ||||||
25 | for acts committed prior to surrender of a license.
| ||||||
26 | (e) No revocation, suspension or surrender of any license |
| |||||||
| |||||||
1 | shall impair
or affect the obligation of any pre-existing | ||||||
2 | lawful contract between the
licensee and any person.
| ||||||
3 | (f) Every license issued under this Act shall remain in | ||||||
4 | force and effect
until the same shall have expired without | ||||||
5 | renewal, have been surrendered,
revoked or suspended in | ||||||
6 | accordance with the provisions of this Act, but the
| ||||||
7 | Commissioner shall have authority to reinstate a suspended | ||||||
8 | license or to
issue a new license to a licensee whose license | ||||||
9 | shall have been revoked if
no fact or condition then exists | ||||||
10 | which would have warranted the
Commissioner in refusing | ||||||
11 | originally to issue such license under this Act.
| ||||||
12 | (g) Whenever the Commissioner shall revoke or suspend a | ||||||
13 | license issued
pursuant to this Act or fine a licensee under | ||||||
14 | this Act, he or she shall
forthwith execute a written order to | ||||||
15 | that effect. The
Commissioner shall publish notice of such | ||||||
16 | order in the Illinois Register
and post notice of the order on | ||||||
17 | an agency Internet site maintained by the Commissioner or on | ||||||
18 | the Nationwide Mortgage Licensing System and Registry and shall | ||||||
19 | forthwith serve a copy of such order upon the
licensee. Any | ||||||
20 | such order may be reviewed in the manner provided by
Section | ||||||
21 | 4-12 of this Act.
| ||||||
22 | (h) When the Commissioner finds any person in violation of | ||||||
23 | the grounds
set forth in subsection (i), he or she may enter an | ||||||
24 | order imposing one or
more of the following penalties:
| ||||||
25 | (1) Revocation of license;
| ||||||
26 | (2) Suspension of a license subject to reinstatement |
| |||||||
| |||||||
1 | upon satisfying all
reasonable conditions the Commissioner | ||||||
2 | may specify;
| ||||||
3 | (3) Placement of the licensee or applicant on probation | ||||||
4 | for a period of
time and subject to all reasonable | ||||||
5 | conditions as the Commissioner may specify;
| ||||||
6 | (4) Issuance of a reprimand;
| ||||||
7 | (5) Imposition of a fine not to exceed $25,000 for each
| ||||||
8 | count of
separate offense, provided that a fine may be | ||||||
9 | imposed not to exceed $75,000 for each separate count of | ||||||
10 | offense of paragraph (2) of subsection (i) of this Section; | ||||||
11 | and
| ||||||
12 | (6) Denial of a license.
| ||||||
13 | (i) The following acts shall constitute grounds for which | ||||||
14 | the
disciplinary actions specified in subsection (h) above may | ||||||
15 | be taken:
| ||||||
16 | (1) Being convicted or found guilty, regardless of | ||||||
17 | pendency of an
appeal, of a crime in any jurisdiction which | ||||||
18 | involves fraud, dishonest
dealing, or any other act of | ||||||
19 | moral turpitude;
| ||||||
20 | (2) Fraud, misrepresentation, deceit or negligence in | ||||||
21 | any mortgage
financing transaction;
| ||||||
22 | (3) A material or intentional misstatement of fact on | ||||||
23 | an initial or
renewal application;
| ||||||
24 | (4) Failure to follow the Commissioner's regulations | ||||||
25 | with respect to
placement of funds in escrow accounts;
| ||||||
26 | (5) Insolvency or filing under any provision of the |
| |||||||
| |||||||
1 | Bankruptcy Code
as a debtor;
| ||||||
2 | (6) Failure to account or deliver to any person any | ||||||
3 | property such as any
money, fund, deposit, check, draft, | ||||||
4 | mortgage, or other document or thing of
value, which has | ||||||
5 | come into his or her hands and which is not his or her
| ||||||
6 | property or which he or she is not in law or equity | ||||||
7 | entitled to retain,
under the circumstances and at the time | ||||||
8 | which has been agreed upon or is
required by law or, in the | ||||||
9 | absence of a fixed time, upon demand of the
person entitled | ||||||
10 | to such accounting and delivery;
| ||||||
11 | (7) Failure to disburse funds in accordance with | ||||||
12 | agreements;
| ||||||
13 | (8) Any misuse, misapplication, or misappropriation of | ||||||
14 | trust funds
or escrow funds;
| ||||||
15 | (9) Having a license, or the equivalent, to practice | ||||||
16 | any profession or
occupation revoked, suspended, or | ||||||
17 | otherwise acted against, including the
denial of licensure | ||||||
18 | by a licensing authority of this State or another
state, | ||||||
19 | territory or country for fraud, dishonest dealing or any | ||||||
20 | other act
of moral turpitude;
| ||||||
21 | (10) Failure to issue a satisfaction of mortgage when | ||||||
22 | the residential
mortgage has been executed and proceeds | ||||||
23 | were not disbursed to the benefit
of the mortgagor and when | ||||||
24 | the mortgagor has fully paid licensee's costs
and | ||||||
25 | commission;
| ||||||
26 | (11) Failure to comply with any order of the |
| |||||||
| |||||||
1 | Commissioner or rule made
or issued under the provisions of | ||||||
2 | this Act;
| ||||||
3 | (12) Engaging in activities regulated by this Act | ||||||
4 | without a current,
active license unless specifically | ||||||
5 | exempted by this Act;
| ||||||
6 | (13) Failure to pay in a timely manner any fee, charge | ||||||
7 | or fine under
this Act;
| ||||||
8 | (14) Failure to maintain, preserve, and keep available | ||||||
9 | for examination,
all books, accounts or other documents | ||||||
10 | required by the provisions of this
Act and the rules of the | ||||||
11 | Commissioner;
| ||||||
12 | (15) Refusing, obstructing, evading, or unreasonably | ||||||
13 | delaying an investigation, information request, or | ||||||
14 | examination authorized under this Act, or refusing, | ||||||
15 | obstructing, evading, or unreasonably delaying compliance | ||||||
16 | with the Director's subpoena or subpoena duces tecum;
| ||||||
17 | (16) A pattern of substantially underestimating the | ||||||
18 | maximum closing costs;
| ||||||
19 | (17) Failure to comply with or violation of any | ||||||
20 | provision of this Act; | ||||||
21 | (18) Failure to comply with or violation of any | ||||||
22 | provision of Article 3 of the Residential Real Property | ||||||
23 | Disclosure Act.
| ||||||
24 | (j) A licensee shall be subject to the disciplinary actions | ||||||
25 | specified in
this Act for violations of subsection (i) by any | ||||||
26 | officer, director,
shareholder, joint venture, partner, |
| |||||||
| |||||||
1 | ultimate equitable owner, or employee
of the licensee.
| ||||||
2 | (k) Such licensee shall be subject to suspension or | ||||||
3 | revocation for
unauthorized employee actions only if there is a | ||||||
4 | pattern of repeated violations by
employees or the licensee has | ||||||
5 | knowledge of the violations, or there is substantial harm to a | ||||||
6 | consumer.
| ||||||
7 | (l) Procedure for surrender of license:
| ||||||
8 | (1) The Commissioner may, after 10 days notice by | ||||||
9 | certified mail to the
licensee at the address set forth on | ||||||
10 | the license, stating the contemplated
action and in general | ||||||
11 | the grounds therefor and the date, time and place of
a | ||||||
12 | hearing thereon, and after providing the licensee with a | ||||||
13 | reasonable
opportunity to be heard prior to such action, | ||||||
14 | fine such licensee an amount
not exceeding $25,000
per | ||||||
15 | violation, or revoke or suspend any license
issued | ||||||
16 | hereunder if he or she finds that:
| ||||||
17 | (i) The licensee has failed to comply with any | ||||||
18 | provision of this Act or
any order, decision, finding, | ||||||
19 | rule, regulation or direction of the
Commissioner | ||||||
20 | lawfully made pursuant to the authority of this Act; or
| ||||||
21 | (ii) Any fact or condition exists which, if it had | ||||||
22 | existed at the time
of the original application for the | ||||||
23 | license, clearly would have warranted
the Commissioner | ||||||
24 | in refusing to issue the license.
| ||||||
25 | (2) Any licensee may submit application to surrender a | ||||||
26 | license,
but upon the Director approving the surrender, it |
| |||||||
| |||||||
1 | shall not affect the licensee's civil or criminal liability
| ||||||
2 | for acts committed prior to surrender or entitle the | ||||||
3 | licensee to a return
of any part of the license fee.
| ||||||
4 | (Source: P.A. 96-112, eff. 7-31-09; 97-891, eff. 8-3-12.)
| ||||||
5 | (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
| ||||||
6 | Sec. 4-8. Delinquency Default rate; examination.
| ||||||
7 | (a) The Secretary shall conduct an examination of each | ||||||
8 | licensee that engages in brokering and lending activities, the | ||||||
9 | scope of which shall address the delinquency rate of the | ||||||
10 | licensee's loan portfolio. The examination may assess any | ||||||
11 | relevant data and information pertaining to the licensee's | ||||||
12 | delinquency rate, which may include a review of the licensee's | ||||||
13 | compliancy with ability to repay regulations, a review of the | ||||||
14 | internal loan performance reports and statistics from the | ||||||
15 | licensee, a review of loan servicing data, a review of the | ||||||
16 | Nationwide Mortgage Licensing System and Registry Mortgage | ||||||
17 | Call Report data, a review of the federal Department of Housing | ||||||
18 | and Urban Development Neighborhood Watch data, if available, | ||||||
19 | and a review of any other third-party data. In addition, for | ||||||
20 | brokers, the examination may assess the status of agreements | ||||||
21 | with lenders and reasons for any funding terminations. The | ||||||
22 | purpose of collecting the delinquency rate information is to | ||||||
23 | determine whether the licensee's practices deviate from sound | ||||||
24 | and accepted practices, including, but not limited to, credit | ||||||
25 | fraud, appraisal fraud, and inspection fraud. The licensee's |
| |||||||
| |||||||
1 | delinquency rate and related information shall be considered | ||||||
2 | accordingly in the component ratings and composite rating for | ||||||
3 | the examination. Upon receipt of a report of examination that | ||||||
4 | finds that the licensee has a delinquency rate deemed | ||||||
5 | unacceptable to the Secretary, the licensee shall submit a | ||||||
6 | written response setting forth the necessary corrective action | ||||||
7 | plan. The Secretary reserves the right to refer the examination | ||||||
8 | findings to the Supervision Unit or Legal Unit The Commissioner | ||||||
9 | shall obtain from the U.S. Department of Housing and
Urban | ||||||
10 | Development on a semi-annual basis that Department's default | ||||||
11 | claim rates
for endorsements issued by that Department .
| ||||||
12 | (b) The Secretary may share with the Residential Mortgage | ||||||
13 | Board non-confidential delinquency rate related information, | ||||||
14 | including any public disciplinary orders against licensees | ||||||
15 | that result from the delinquency rate related examination | ||||||
16 | findings The Commissioner shall conduct an examination of each | ||||||
17 | licensee
having a default rate equal to or greater than 5% .
| ||||||
18 | This subsection shall not be construed as a limitation
of | ||||||
19 | the Commissioner's examination authority under Section 4-2 of | ||||||
20 | this Act or as
otherwise provided in this Act.
The Commissioner | ||||||
21 | may require a licensee to provide loan default
data as the | ||||||
22 | Commissioner deems necessary for the proper enforcement
of the | ||||||
23 | Act.
| ||||||
24 | (c) (Blank). The purpose of the examination under | ||||||
25 | subsection (b) shall be
to determine whether the default rate | ||||||
26 | of the
licensee has resulted from practices which deviate from
|
| |||||||
| |||||||
1 | sound and accepted mortgage underwriting practices, including | ||||||
2 | but not
limited to credit fraud, appraisal fraud and property | ||||||
3 | inspection fraud.
For the purpose of conducting this | ||||||
4 | examination, the Commissioner may accept
materials prepared | ||||||
5 | for the U.S. Department of Housing and Urban Development.
At | ||||||
6 | the conclusion of the examination, the Commissioner shall make | ||||||
7 | his or
her findings available to the Residential Mortgage | ||||||
8 | Board.
| ||||||
9 | (d) The Secretary Commissioner , at his or her discretion, | ||||||
10 | may hold public
hearings involving a licensee's compliance with | ||||||
11 | ability to repay regulations on a specific residential mortgage | ||||||
12 | loan, as further described in this Section , or at the direction | ||||||
13 | of the Residential Mortgage Board, shall hold
public hearings . | ||||||
14 | Such testimony shall be by a homeowner or mortgagor or his
| ||||||
15 | agent, whose residential interest is affected by the activities | ||||||
16 | of the
residential mortgage licensee subject to such hearing.
| ||||||
17 | At such public hearing, a witness may present testimony on his | ||||||
18 | or her behalf
concerning only his or her home, or home mortgage | ||||||
19 | or a witness may authorize a
third party to appear on his or | ||||||
20 | her behalf. The testimony shall be
restricted to information | ||||||
21 | and comments related to a specific residence or
specific | ||||||
22 | residential mortgage application or applications for a | ||||||
23 | residential
mortgage or residential loan transaction. The | ||||||
24 | testimony must be preceded
by either a letter of complaint or a | ||||||
25 | completed consumer complaint form
prescribed by the Secretary | ||||||
26 | Commissioner .
|
| |||||||
| |||||||
1 | (e) The Secretary may Commissioner shall , at the conclusion | ||||||
2 | of the public hearings,
release his or her findings and may | ||||||
3 | shall also make public any action taken
with respect to the | ||||||
4 | licensee. The Secretary may Commissioner shall also give full
| ||||||
5 | consideration to the findings resulting from the public hearing | ||||||
6 | of this examination whenever the licensee submits an | ||||||
7 | application for renewal of the license or an application for a | ||||||
8 | new license reapplication is
made by the licensee for a new | ||||||
9 | license under this Act .
| ||||||
10 | (f) (Blank). A licensee that is examined pursuant to | ||||||
11 | subsection (b)
shall submit to the Commissioner a plan which | ||||||
12 | shall be designed to reduce that
licensee's default rate to a | ||||||
13 | figure that is
less than 5%. The plan shall be implemented by | ||||||
14 | the
licensee as approved by the Commissioner. A licensee that | ||||||
15 | is
examined pursuant to subsection (b) shall report monthly,
| ||||||
16 | for a one year period, one, 2, and 3 month defaults.
| ||||||
17 | (g) Whenever the Secretary Commissioner finds that a | ||||||
18 | licensee's
default rate
on insured mortgages is unusually high | ||||||
19 | within a particular
geographic area, the Secretary may he or | ||||||
20 | she shall require that licensee to submit such
information as | ||||||
21 | is necessary to determine whether that licensee's practices
| ||||||
22 | have constituted credit fraud, appraisal fraud or property | ||||||
23 | inspection
fraud. The Commissioner shall promulgate such rules | ||||||
24 | as are necessary to
determine whether any licensee's default | ||||||
25 | rate is
unusually high within a particular area.
| ||||||
26 | (h) This Section shall not be construed as a limitation of |
| |||||||
| |||||||
1 | the Secretary's authority to investigate or examine any and all | ||||||
2 | licensed activities of a licensee at any time deemed warranted | ||||||
3 | by the Secretary. | ||||||
4 | (Source: P.A. 89-355, eff. 1-1-96; 89-626, eff. 8-9-96; 90-301, | ||||||
5 | eff. 8-1-97.)
|