Full Text of SB2495 94th General Assembly
SB2495sam001 94TH GENERAL ASSEMBLY
|
Sen. Terry Link
Filed: 1/31/2006
|
|
09400SB2495sam001 |
|
LRB094 17958 MKM 55221 a |
|
| 1 |
| AMENDMENT TO SENATE BILL 2495
| 2 |
| AMENDMENT NO. ______. Amend Senate Bill 2495 on page 12, | 3 |
| lines 25 and 26, by deleting " , other than for unappropriated | 4 |
| administrative expenses "; and
| 5 |
| on page 22, lines 3 and 4, by deleting " , other than for | 6 |
| unappropriated administrative expenses "; and | 7 |
| on page 27, lines 17 and 18, by deleting " , other than for | 8 |
| unappropriated administrative expenses "; and | 9 |
| on page 28, immediately below line 22, by inserting the | 10 |
| following: | 11 |
| "Section 30. The Residential Mortgage License Act of 1987 | 12 |
| is amended by changing Section 2-2, 2-6, and 4-1 as follows:
| 13 |
| (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
| 14 |
| Sec. 2-2. Application process; investigation; fee.
| 15 |
| (a) The Commissioner shall issue a license upon completion | 16 |
| of all of the
following:
| 17 |
| (1) The filing of an application for license.
| 18 |
| (2) The filing with the Commissioner of a listing of | 19 |
| judgments entered
against, and bankruptcy petitions by, | 20 |
| the license applicant for the
preceding 10 years.
| 21 |
| (3) The payment, in certified funds, of
investigation |
|
|
|
09400SB2495sam001 |
- 2 - |
LRB094 17958 MKM 55221 a |
|
| 1 |
| and application fees, the total of which shall be in an
| 2 |
| amount equal to $1,800
$2,700 annually, however, the | 3 |
| Commissioner may
increase the
investigation and | 4 |
| application fees by rule as provided in Section 4-11.
| 5 |
| (4) Except for a broker applying to renew a license, | 6 |
| the filing of an
audited balance sheet including all | 7 |
| footnotes prepared by a certified public
accountant in | 8 |
| accordance with generally accepted accounting principles | 9 |
| and
generally accepted auditing principles which evidences | 10 |
| that the applicant meets
the net worth requirements of | 11 |
| Section 3-5.
| 12 |
| (5) The filing of proof satisfactory to the | 13 |
| Commissioner that the
applicant, the members thereof if the | 14 |
| applicant is a partnership or
association, the members or | 15 |
| managers thereof that retain any authority or
| 16 |
| responsibility under the operating agreement if the | 17 |
| applicant is a limited
liability company, or the officers | 18 |
| thereof if the applicant
is a corporation have 3 years | 19 |
| experience preceding application
in real estate finance. | 20 |
| Instead of this requirement, the applicant and the
| 21 |
| applicant's officers or members, as applicable, may
| 22 |
| satisfactorily complete a program of education in real | 23 |
| estate finance and
fair lending, as
approved by the | 24 |
| Commissioner, prior to receiving the
initial license.
The | 25 |
| Commissioner shall promulgate rules regarding proof of | 26 |
| experience
requirements and educational requirements and | 27 |
| the satisfactory completion of
those requirements. The | 28 |
| Commissioner may establish by rule a list of duly
licensed | 29 |
| professionals and others who may be exempt from this | 30 |
| requirement.
| 31 |
| (6) An investigation of the averments required by | 32 |
| Section 2-4, which
investigation must allow the | 33 |
| Commissioner to issue positive findings stating
that the | 34 |
| financial responsibility, experience, character, and |
|
|
|
09400SB2495sam001 |
- 3 - |
LRB094 17958 MKM 55221 a |
|
| 1 |
| general fitness
of the license applicant and of the members | 2 |
| thereof if the license applicant is
a partnership or | 3 |
| association, of the officers and directors thereof if the
| 4 |
| license applicant is a corporation, and of the managers and | 5 |
| members that retain
any authority or responsibility under | 6 |
| the operating agreement if the license
applicant is a | 7 |
| limited liability company are such as to command the | 8 |
| confidence
of the community and to warrant belief that the | 9 |
| business will be operated
honestly, fairly and efficiently | 10 |
| within the purpose of this Act. If the
Commissioner shall | 11 |
| not so find, he or she shall not issue such license, and he
| 12 |
| or she shall notify the license applicant of the denial. | 13 |
| The Commissioner may impose conditions on a license if the | 14 |
| Commissioner determines that the conditions are necessary or | 15 |
| appropriate. These conditions shall be imposed in writing and | 16 |
| shall continue in effect for the period prescribed by the | 17 |
| Commissioner.
| 18 |
| (b) All licenses shall be issued in duplicate with one copy
| 19 |
| being transmitted to the license applicant and the second being
| 20 |
| retained with the Commissioner.
| 21 |
| Upon receipt of such license, a residential mortgage | 22 |
| licensee shall be
authorized to engage in the business | 23 |
| regulated by this Act. Such license
shall remain in full force | 24 |
| and effect until it expires without renewal, is
surrendered by | 25 |
| the licensee or revoked or suspended as hereinafter provided.
| 26 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
| 27 |
| (205 ILCS 635/2-6) (from Ch. 17, par. 2322-6)
| 28 |
| Sec. 2-6. License issuance and renewal; fee.
| 29 |
| (a) Beginning July 1, 2003, licenses shall be renewed every | 30 |
| year on the
anniversary of the date of issuance of the original | 31 |
| license.
Properly completed renewal application forms and | 32 |
| filing fees must be received
by the Commissioner 60 days prior | 33 |
| to the renewal date.
|
|
|
|
09400SB2495sam001 |
- 4 - |
LRB094 17958 MKM 55221 a |
|
| 1 |
| (b) It shall be the responsibility of each licensee to | 2 |
| accomplish renewal
of its license; failure of the licensee to | 3 |
| receive renewal forms absent a
request sent by certified mail | 4 |
| for such forms will not waive said
responsibility. Failure by a | 5 |
| licensee to submit a properly completed
renewal application | 6 |
| form and fees in a timely fashion, absent a written
extension | 7 |
| from the Commissioner, will result in the assessment of
| 8 |
| additional fees, as follows:
| 9 |
| (1) A fee of $500
$750 will be assessed to the licensee | 10 |
| 30 days
after the
proper renewal date and $1,000
$1,500
| 11 |
| each month thereafter, until the
license is
either renewed | 12 |
| or expires pursuant to Section 2-6, subsections (c) and | 13 |
| (d),
of this Act.
| 14 |
| (2) Such fee will be assessed without prior notice to | 15 |
| the licensee, but
will be assessed only in cases wherein | 16 |
| the Commissioner has in his or her
possession documentation | 17 |
| of the licensee's continuing activity for which
the | 18 |
| unrenewed license was issued.
| 19 |
| (c) A license which is not renewed by the date required in | 20 |
| this Section
shall automatically become inactive. No activity | 21 |
| regulated by this Act
shall be conducted by the licensee when a | 22 |
| license becomes inactive. The Commissioner may require the | 23 |
| licensee to provide a plan for the disposition of any | 24 |
| residential mortgage loans not closed or funded when the | 25 |
| license becomes inactive. The Commissioner may allow a licensee | 26 |
| with an inactive license to conduct activities regulated by | 27 |
| this Act for the sole purpose of assisting borrowers in the | 28 |
| closing or funding of loans for which the loan application was | 29 |
| taken from a borrower while the license was active. An
inactive | 30 |
| license may be reactivated by the Commissioner upon payment of | 31 |
| the renewal fee, and payment
of a reactivation fee equal to the | 32 |
| renewal fee.
| 33 |
| (d) A license which is not renewed within one year of | 34 |
| becoming inactive
shall expire.
|
|
|
|
09400SB2495sam001 |
- 5 - |
LRB094 17958 MKM 55221 a |
|
| 1 |
| (e) A licensee ceasing an activity or activities regulated | 2 |
| by this Act
and desiring to no longer be licensed shall so | 3 |
| inform the Commissioner in
writing and, at the same time, | 4 |
| convey the license and all other symbols or
indicia of | 5 |
| licensure. The licensee shall include a plan for the withdrawal
| 6 |
| from regulated business, including a timetable for the | 7 |
| disposition of the
business. Upon receipt of such written | 8 |
| notice, the Commissioner shall issue
a certified statement | 9 |
| canceling the license.
| 10 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-561, eff. 1-1-04; 93-1018, | 11 |
| eff. 1-1-05.)
| 12 |
| (205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| 13 |
| Sec. 4-1. Commissioner of Banks and Real Estate; functions, | 14 |
| powers, and duties. The functions,
powers, and duties of the | 15 |
| Commissioner of Banks and Real Estate shall include the | 16 |
| following:
| 17 |
| (a) To issue or refuse to issue any license as provided by | 18 |
| this Act;
| 19 |
| (b) To revoke or suspend for cause any license issued under | 20 |
| this Act;
| 21 |
| (c) To keep records of all licenses issued under this Act;
| 22 |
| (d) To receive, consider, investigate, and act upon | 23 |
| complaints made by
any person in connection with any | 24 |
| residential mortgage licensee in this State;
| 25 |
| (e) To consider and act upon any recommendations from the | 26 |
| Residential
Mortgage Board;
| 27 |
| (f) To prescribe the forms of and receive:
| 28 |
| (1) applications for licenses; and
| 29 |
| (2) all reports and all books and records required to | 30 |
| be made by
any licensee under this Act, including annual | 31 |
| audited financial statements
and annual reports of | 32 |
| mortgage activity;
| 33 |
| (g) To adopt rules and regulations necessary and proper for |
|
|
|
09400SB2495sam001 |
- 6 - |
LRB094 17958 MKM 55221 a |
|
| 1 |
| the
administration of this Act;
| 2 |
| (h) To subpoena documents and witnesses and compel their | 3 |
| attendance and
production, to administer oaths, and to require | 4 |
| the production of any books,
papers, or other materials | 5 |
| relevant to any inquiry authorized by this Act;
| 6 |
| (h-1) To issue orders against any person, if the | 7 |
| Commissioner has reasonable cause to believe that an unsafe, | 8 |
| unsound, or unlawful practice has occurred, is occurring, or is | 9 |
| about to occur, if any person has violated, is violating, or is | 10 |
| about to violate any law, rule, or written agreement with the | 11 |
| Commissioner, or for the purpose of administering the | 12 |
| provisions of this Act and any rule adopted in accordance with | 13 |
| the Act; | 14 |
| (h-2) To address any inquiries to any licensee, or the | 15 |
| officers thereof, in relation to its activities and conditions, | 16 |
| or any other matter connected with its affairs, and it shall be | 17 |
| the duty of any licensee or person so addressed, to promptly | 18 |
| reply in writing to such inquiries. The Commissioner may also | 19 |
| require reports from any licensee at any time the Commissioner | 20 |
| may deem desirable;
| 21 |
| (i) To require information with regard to any license | 22 |
| applicant
as he or she may deem desirable, with due regard to | 23 |
| the paramount interests
of the public as to the experience, | 24 |
| background, honesty, truthfulness,
integrity, and competency | 25 |
| of the license applicant as to financial
transactions involving | 26 |
| primary or subordinate mortgage financing, and where
the | 27 |
| license applicant is an entity other than an individual, as to | 28 |
| the
honesty, truthfulness, integrity, and competency of any | 29 |
| officer or director
of the corporation, association, or other | 30 |
| entity, or the members of a
partnership;
| 31 |
| (j) To examine the books and records of every licensee | 32 |
| under this Act at
intervals as specified in Section 4-2;
| 33 |
| (k) To enforce provisions of this Act;
| 34 |
| (l) To levy fees, fines, and charges for services performed |
|
|
|
09400SB2495sam001 |
- 7 - |
LRB094 17958 MKM 55221 a |
|
| 1 |
| in administering
this Act; the aggregate of all fees collected | 2 |
| by the Commissioner on and after
the effective date of this Act | 3 |
| shall be paid promptly after receipt of the
same, accompanied | 4 |
| by a detailed statement thereof, into the Savings and
| 5 |
| Residential Finance Regulatory Fund; the amounts deposited | 6 |
| into that Fund shall
be used for the ordinary and contingent | 7 |
| expenses of the Office of Banks and
Real Estate. Nothing in | 8 |
| this Act shall prevent continuing the practice of paying
| 9 |
| expenses involving salaries, retirement, social security, and | 10 |
| State-paid
insurance of State officers by appropriation from | 11 |
| the General Revenue Fund. For the fiscal year beginning on July | 12 |
| 1, 2007, the Commissioner must adopt rules to adjust regulatory | 13 |
| fee rates to those in effect prior to the escalation in rates | 14 |
| published in 27 Ill.Reg. 10783, July 1, 2003, unless an audit | 15 |
| by the Auditor General of banking regulatory oversight | 16 |
| activities requires a different rate to be set. Any adjustments | 17 |
| made pursuant to an Auditor General's audit must be set forth | 18 |
| in the form of a notice to each affected entity 45 days prior | 19 |
| to making those adjustments. The notice must contain an | 20 |
| explanation that includes a description of the audit results | 21 |
| pertaining to the banking industry and a description of each | 22 |
| reason why adjustments to the regulatory fee rates are | 23 |
| required.
| 24 |
| (m) To appoint examiners, supervisors, experts, and | 25 |
| special assistants as
needed to effectively and efficiently | 26 |
| administer this Act;
| 27 |
| (n) To conduct hearings for the purpose of:
| 28 |
| (1) appeals of orders of the Commissioner;
| 29 |
| (2) suspensions or revocations of licenses, or fining | 30 |
| of licensees;
| 31 |
| (3) investigating:
| 32 |
| (i) complaints against licensees; or
| 33 |
| (ii) annual gross delinquency rates; and
| 34 |
| (4) carrying out the purposes of this Act;
|
|
|
|
09400SB2495sam001 |
- 8 - |
LRB094 17958 MKM 55221 a |
|
| 1 |
| (o) To exercise exclusive visitorial power over a licensee | 2 |
| unless otherwise authorized by this Act or as vested in the | 3 |
| courts, or upon prior consultation with the Commissioner, a | 4 |
| foreign residential mortgage regulator with an appropriate | 5 |
| supervisory interest in the parent or affiliate of a licensee;
| 6 |
| (p) To enter into cooperative agreements with state | 7 |
| regulatory authorities of other states to provide for | 8 |
| examination of corporate offices or branches of those states | 9 |
| and to accept reports of such examinations;
| 10 |
| (q) To assign an examiner or examiners to monitor the | 11 |
| affairs of a licensee with whatever frequency the Commissioner | 12 |
| determines appropriate and to charge the licensee for | 13 |
| reasonable and necessary expenses of the Commissioner, if in | 14 |
| the opinion of the Commissioner an emergency exists or appears | 15 |
| likely to occur; and
| 16 |
| (r) To impose civil penalties of up to $50 per day against | 17 |
| a licensee for failing to respond to a regulatory request or | 18 |
| reporting requirement.
| 19 |
| (Source: P.A. 93-1018, eff. 1-1-05.)".
|
|