Rep. William Davis

Filed: 11/28/2016

 

 


 

 


 
09900SB2884ham001LRB099 18144 RPS 51754 a

1
AMENDMENT TO SENATE BILL 2884

2    AMENDMENT NO. ______. Amend Senate Bill 2884 as follows:
 
3by deleting line 19 on page 255 through line 1 on page 264; and
 
4on page 378, line 12, by deleting "605-825,"; and
 
5by deleting line 8 on page 378; and
 
6by deleting line 14 on page 378 through line 11 on page 379;
7and
 
8by replacing line 2 on page 381 through line 12 on page 384
9with the following:
 
10    "(205 ILCS 635/3-2)  (from Ch. 17, par. 2323-2)
11    Sec. 3-2. Annual audit.
12    (a) At the licensee's fiscal year-end, but in no case more

 

 

09900SB2884ham001- 2 -LRB099 18144 RPS 51754 a

1than 12 months after the last audit conducted pursuant to this
2Section, except as otherwise provided in this Section, it shall
3be mandatory for each residential mortgage licensee to cause
4its books and accounts to be audited by a certified public
5accountant not connected with such licensee. The books and
6records of all licensees under this Act shall be maintained on
7an accrual basis. The audit must be sufficiently comprehensive
8in scope to permit the expression of an opinion on the
9financial statements, which must be prepared in accordance with
10generally accepted accounting principles, and must be
11performed in accordance with generally accepted auditing
12standards. Notwithstanding the requirements of this
13subsection, a licensee that is a subsidiary may submit audited
14consolidated financial statements of its parent, intermediary
15parent, or ultimate parent as long as the consolidated
16statements are supported by consolidating statements which
17include the licensee's financial statement. If the
18consolidating statements are unaudited, the licensee's chief
19financial officer shall attest to the licensee's financial
20statements disclosed in the consolidating statements.
21    (b) As used herein, the term "expression of opinion"
22includes either (1) an unqualified opinion, (2) a qualified
23opinion, (3) a disclaimer of opinion, or (4) an adverse
24opinion.
25    (c) If a qualified or adverse opinion is expressed or if an
26opinion is disclaimed, the reasons therefore must be fully

 

 

09900SB2884ham001- 3 -LRB099 18144 RPS 51754 a

1explained. An opinion, qualified as to a scope limitation,
2shall not be acceptable.
3    (d) The most recent audit report shall be filed with the
4Commissioner within 90 days after the end of the licensee's
5fiscal year, or with the Nationwide Mortgage Licensing System
6and Registry, if applicable, pursuant to Mortgage Call Report
7requirements. The report filed with the Commissioner shall be
8certified by the certified public accountant conducting the
9audit. The Commissioner may promulgate rules regarding late
10audit reports.
11    (e) (Blank). If any licensee required to make an audit
12shall fail to cause an audit to be made, the Commissioner shall
13cause the same to be made by a certified public accountant at
14the licensee's expense. The Commissioner shall select such
15certified public accountant by advertising for bids or by such
16other fair and impartial means as he or she establishes by
17regulation.
18    (f) In lieu of the audit or compilation financial statement
19required by this Section, a licensee shall submit and the
20Commissioner may accept any audit made in conformance with the
21audit requirements of the U.S. Department of Housing and Urban
22Development.
23    (g) With respect to licensees who solely broker residential
24mortgage loans as defined in subsection (o) of Section 1-4,
25instead of the audit required by this Section, the Commissioner
26may accept compilation financial statements prepared at least

 

 

09900SB2884ham001- 4 -LRB099 18144 RPS 51754 a

1every 12 months, and the compilation financial statement must
2be submitted within 90 days after the end of the licensee's
3fiscal year, or with the Nationwide Mortgage Licensing System
4and Registry, if applicable, pursuant to Mortgage Call Report
5requirements. If a licensee under this Section fails to file a
6compilation as required, the Commissioner shall cause an audit
7of the licensee's books and accounts to be made by a certified
8public accountant at the licensee's expense. The Commissioner
9shall select the certified public accountant by advertising for
10bids or by such other fair and impartial means as he or she
11establishes by rule. A licensee who files false or misleading
12compilation financial statements is guilty of a business
13offense and shall be fined not less than $5,000.
14    (h) The workpapers of the certified public accountants
15employed by each licensee for purposes of this Section are to
16be made available to the Commissioner or the Commissioner's
17designee upon request and may be reproduced by the Commissioner
18or the Commissioner's designee to enable to the Commissioner to
19carry out the purposes of this Act.
20    (i) Notwithstanding any other provision of this Section, if
21a licensee relying on subsection (g) of this Section causes its
22books to be audited at any other time or causes its financial
23statements to be reviewed, a complete copy of the audited or
24reviewed financial statements shall be delivered to the
25Commissioner at the time of the annual license renewal payment
26following receipt by the licensee of the audited or reviewed

 

 

09900SB2884ham001- 5 -LRB099 18144 RPS 51754 a

1financial statements. All workpapers shall be made available to
2the Commissioner upon request. The financial statements and
3workpapers may be reproduced by the Commissioner or the
4Commissioner's designee to carry out the purposes of this Act.
5(Source: P.A. 97-813, eff. 7-13-12; 97-891, eff. 8-3-12;
698-463, eff. 8-16-13; 98-1081, eff. 1-1-15.)"; and
 
7by deleting line 16 on page 385 through line 18 on page 388;
8and
 
9by deleting line 23 on page 388 through line 1 on page 389; and
 
10on page 389, by deleting lines 5 through 11; and
 
11by deleting line 15 on page 389 through line 7 on page 390; and
 
12on page 405, by deleting lines 5 through 7.