Full Text of SB1998 95th General Assembly
SB1998eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 1. Short title. This Act may be cited as the | 5 |
| Homeowner Protection Act. | 6 |
| Section 5. Purpose and construction. The purpose of this | 7 |
| Act is to help homeowners and communities avoid the devastating | 8 |
| effects of foreclosure. This Act is to be construed as a | 9 |
| borrower protection statute for all purposes. This Act shall be | 10 |
| liberally construed to effectuate its purpose. | 11 |
| Section 10. Definitions. As used in this Act: | 12 |
| "Approved counseling agency" means a housing counseling | 13 |
| agency approved by the U.S. Department of Housing and Urban | 14 |
| Development, a credit counseling agency approved by the | 15 |
| Secretary, or any other person or entity approved by the | 16 |
| Secretary.
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| "Borrower" means a natural person who seeks or obtains a | 18 |
| home loan. | 19 |
| "Delinquent" means past due with respect to payments on a | 20 |
| home loan. | 21 |
| "Department" means the Department of Financial and | 22 |
| Professional Regulation. |
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| "Foreclosure Prevention Report" means the report required | 2 |
| by Section 30 of this Act. | 3 |
| "Home loan" means a loan to or for the benefit of any | 4 |
| natural person made primarily for personal, family, or | 5 |
| household use, primarily secured by either a mortgage on | 6 |
| residential real property, title to a mobile home, or | 7 |
| certificates of stock or other evidence of ownership interests | 8 |
| in and proprietary leases from corporations, partnerships, or | 9 |
| limited liability companies formed for the purpose of | 10 |
| cooperative ownership of residential real property, all | 11 |
| located in this State. | 12 |
| "Lender" means any person, partnership, association, | 13 |
| corporation, or any other entity who either transfers, offers, | 14 |
| lends, or invests money in home loans. | 15 |
| "Secretary" means the Secretary of the Department of | 16 |
| Financial and Professional Regulation or other person | 17 |
| authorized to act in the Secretary's stead. | 18 |
| "Servicer" means any entity chartered under the Illinois | 19 |
| Banking Act, the Savings Bank Act, the Illinois Credit Union | 20 |
| Act, or the Illinois Savings and Loan Act of 1985 and any | 21 |
| person or entity licensed under the Residential Mortgage | 22 |
| License Act of 1987, the Consumer Installment Loan Act, or the | 23 |
| Sales Finance Agency Act who is responsible for the collection | 24 |
| or remittance for or has the right or obligation to collect or | 25 |
| remit for any lender, note owner, or note holder or for a | 26 |
| lender's own account of payments, interest, principal, and |
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| escrow items (such as hazard insurance and taxes on a | 2 |
| residential mortgage loan) in accordance with the terms of the | 3 |
| home loan, including loan payment follow up, delinquency loan | 4 |
| follow up, loan analysis, and any notifications to the borrower | 5 |
| that are necessary to enable the borrower to keep the loan | 6 |
| current and in good standing.
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| Section 15. Counseling prior to perfecting foreclosure | 8 |
| proceedings.
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| (a) Except for home loans in which any borrower has filed | 10 |
| for relief under the United States Bankruptcy Code, if a home | 11 |
| loan becomes delinquent by more than 30 days, the servicer | 12 |
| shall send a notice advising the borrower that he or she may | 13 |
| wish to seek approved credit counseling. | 14 |
| (b) The notice required in subsection (a) of this Section | 15 |
| shall state the date on which the notice was mailed, shall be | 16 |
| headed in bold, 14-point type, "GRACE PERIOD NOTICE", and shall | 17 |
| state the following in 14-point type:
"YOUR LOAN IS OR WAS MORE | 18 |
| THAN 30 DAYS PAST DUE. YOU MAY BE EXPERIENCING FINANCIAL | 19 |
| DIFFICULTY. IT MAY BE IN YOUR BEST INTEREST TO SEEK APPROVED | 20 |
| HOUSING OR CREDIT COUNSELING. YOU HAVE A GRACE PERIOD OF 30 | 21 |
| DAYS FROM THE DATE OF THIS FORM TO OBTAIN APPROVED HOUSING OR | 22 |
| CREDIT COUNSELING. DURING THE GRACE PERIOD, THE LAW PROHIBITS | 23 |
| US FROM TAKING ANY LEGAL ACTION AGAINST YOU. A LIST OF APPROVED | 24 |
| COUNSELING AGENCIES MAY BE OBTAINED FROM THE ILLINOIS | 25 |
| DEPARTMENT OF FINANCIAL AND PROFESSIONAL REGULATION." The |
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| notice shall also list the Department's current consumer | 2 |
| hotline, the Department's website, and the telephone number, | 3 |
| fax number, and mailing address of the servicer's loss | 4 |
| mitigation department. No language, other than the language | 5 |
| prescribed in this subsection (b), shall be included in the | 6 |
| notice. The requirements of this subsection (b) shall be deemed | 7 |
| satisfied if the language and format prescribed in this | 8 |
| subsection (b) is included in a counseling notification | 9 |
| required under federal law. | 10 |
| (c) Upon mailing the notice provided for under subsection | 11 |
| (b) of this Section, neither the lender, servicer, nor lender's | 12 |
| agent shall institute legal action under Part 15 of Article XV | 13 |
| of the Code of Civil Procedure for 30 days. Only one such | 14 |
| 30-day period of forbearance is allowed under this subsection | 15 |
| (c) per subject loan. | 16 |
| (d) If, within the 30-day period provided under subsection | 17 |
| (c) of this Section, an approved counseling agency notifies the | 18 |
| lender, servicer, or lender's agent that the borrower is | 19 |
| seeking approved counseling services, then the lender, | 20 |
| servicer, or lender's agent shall not institute legal action | 21 |
| under Part 15 of Article XV of the Code of Civil Procedure for | 22 |
| 30 days after the date of that notice. During the 30-day period | 23 |
| provided under this subsection (d), the borrower or counselor | 24 |
| or both may prepare and proffer to the lender, servicer, or | 25 |
| lender's agent a proposed debt management plan. The lender, | 26 |
| servicer, or lender's agent shall then determine whether to |
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| accept the proposed debt management plan, based upon an | 2 |
| evaluation of the borrower's ability to repay the loan under | 3 |
| the proffered plan, in light of the borrower's current income | 4 |
| and other financial resources. If the lender, servicer, or | 5 |
| lender's agent and the borrower agree to a debt management | 6 |
| plan, then the lender, servicer, or lender's agent shall not | 7 |
| institute legal action under Part 15 of Article XV of the Code | 8 |
| of Civil Procedure for as long as the debt management plan is | 9 |
| complied with by the borrower.
The agreed debt management plan | 10 |
| and any modifications thereto must be in writing and signed by | 11 |
| the lender, servicer, or lender's agent and the borrower.
Upon | 12 |
| written notice to the lender, servicer, or lender's agent, the | 13 |
| borrower may change approved counseling agencies, but such a | 14 |
| change does not entitle the borrower to any additional period | 15 |
| of forbearance. | 16 |
| (e) If the borrower fails to comply with the agreed debt | 17 |
| management plan, then nothing in this Section shall be | 18 |
| construed to impair the legal right of the lender, servicer, or | 19 |
| lender's agent to enforce the contract.
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| (f) This Section is repealed on December 31, 2010. | 21 |
| Section 20. Foreclosure Prevention Report; requirements. A | 22 |
| servicer shall compile and submit to the Secretary on or before | 23 |
| the twentieth business day of every other month a Foreclosure | 24 |
| Prevention Report that contains the following information for | 25 |
| the preceding 2 months or as otherwise indicated: |
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| (1) The number of home loans the servicer is servicing. | 2 |
| (2) The number of home loans that the servicer is | 3 |
| servicing that are in payment default. | 4 |
| (3) Information on loss mitigation activities | 5 |
| undertaken, including, but not limited to, the following: | 6 |
| (A) the number and identification of home loans | 7 |
| that were refinanced into more affordable or fixed home | 8 |
| loans; | 9 |
| (B) the number and identification of home loans for | 10 |
| which the borrower has sought housing or credit | 11 |
| counseling, if known; | 12 |
| (C) the number of workout arrangements entered | 13 |
| into by the servicer in connection with home loans; and | 14 |
| (D) the proactive steps taken by the servicer to | 15 |
| identify borrowers at a heightened risk of default, | 16 |
| such as those with impending interest rate resets, | 17 |
| including, but not limited to, contacts with borrowers | 18 |
| to assess their ability to repay their home loan | 19 |
| obligations. | 20 |
| (4) The number of foreclosure actions commenced in this | 21 |
| State in connection with home loans it is servicing.
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| (5) Any other information that the Secretary may deem | 23 |
| necessary, including geographic information regarding | 24 |
| applicable home loans.
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| Section 25. Foreclosure Prevention Report; form and manner |
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| prescribed by Secretary. The Secretary shall prescribe the form | 2 |
| and manner for filing the Foreclosure Prevention Report. This | 3 |
| Section is repealed on December 31, 2010. | 4 |
| Section 30. Foreclosure Prevention Report; publication. | 5 |
| The Secretary may publish for public review the Foreclosure | 6 |
| Prevention Report or any information contained in the | 7 |
| Foreclosure Prevention Report, except personally identifying | 8 |
| information regarding borrowers. This Section is repealed on | 9 |
| December 31, 2010. | 10 |
| Section 90. Enforcement.
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| (a) The Secretary shall have the power to issue orders | 12 |
| against any person or entity if the Secretary has reasonable | 13 |
| cause to believe that a violation of this Act has occurred, is | 14 |
| occurring, or is about to occur, if any person has violated, is | 15 |
| violating, or is about to violate any law, rule, order, or | 16 |
| written agreement with the Secretary, or for the purpose of | 17 |
| administering the provisions of this Act and any rule | 18 |
| promulgated in accordance with this Act. | 19 |
| (b) The Secretary may impose civil penalties of up to | 20 |
| $1,000 against any person for each violation of any provision | 21 |
| of this Act, any rule promulgated in accordance with this Act, | 22 |
| or any order of the Secretary. The Secretary shall also have | 23 |
| the power to subpoena witnesses, to administer an oath, to | 24 |
| examine any person under oath, and to require the production of |
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| any relevant books, papers, accounts, and documents in the | 2 |
| course of and pursuant to any investigation being conducted or | 3 |
| any action being taken by the Secretary in respect of any | 4 |
| matter relating to the duties imposed upon or the powers vested | 5 |
| in the Secretary under the provisions of this Act or any rule | 6 |
| promulgated in accordance with this Act. | 7 |
| (c) Any actions taken by the Secretary pursuant to this | 8 |
| Section shall be done in accordance with the Illinois | 9 |
| Administrative Procedure Act. | 10 |
| Section 95. Rulemaking. The Department may adopt | 11 |
| reasonable rules to implement and administer this Act.
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| Section 100. Judicial review. All final administrative | 13 |
| decisions under this Act are subject to judicial review | 14 |
| pursuant to the provisions of the Administrative Review Law and | 15 |
| any rules adopted pursuant thereto. | 16 |
| Section 105. Waiver prohibited. There shall be no waiver of | 17 |
| any provision of this Act. | 18 |
| Section 900. The Residential Mortgage License Act of 1987 | 19 |
| is amended by changing Sections 1-3, 1-4, 1-5, 2-2, 2-3, 2-4, | 20 |
| 2-5, 2-6, 2-7, 2-8, 2-9, 2-11, 3-1, 3-2, 3-3, 3-4, 3-5, 3-9, | 21 |
| 4-1, 4-2, 4-3, 4-4, 4-5, 4-6, 4-8, 4-8.1, 4-8.2, 4-8.3, 4-10, | 22 |
| 4-11, 4-12, 4-13, 5-1, 6-3, and 7-1 and by adding Section 1-1.5 |
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| as follows:
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| (205 ILCS 635/1-1.5 new) | 3 |
| Sec. 1-1.5. Findings; procedures for multistate automated | 4 |
| licensing system. | 5 |
| (1) The General Assembly finds that establishing and | 6 |
| implementing an automated multistate licensing system for | 7 |
| residential mortgage licensees is consistent with and furthers | 8 |
| the Purpose of Act and Policy Statement of Section 1-2. For | 9 |
| this purpose, the Director is authorized: | 10 |
| (a) to participate in a multistate automated licensing | 11 |
| system as the exclusive record collection and maintenance | 12 |
| system to apply for, renew, amend, and surrender residential | 13 |
| mortgage licenses; | 14 |
| (b) to adopt rules as necessary to implement a multistate | 15 |
| automated licensing system; | 16 |
| (c) to cause criminal history background checks by the | 17 |
| Illinois State Police and Federal Bureau of Identification to | 18 |
| be performed for use in the multistate automated licensing | 19 |
| system; | 20 |
| (d) to require payments of licensing fees be made to the | 21 |
| third-party administrator for the multistate automated | 22 |
| licensing system for transfer to the State of Illinois and | 23 |
| payment of processing fees for use of the multistate automated | 24 |
| licensing system with those processing fees to be retained by | 25 |
| the third-party administrator; and |
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| (e) to share licensing information in the multistate | 2 |
| automated licensing system pursuant to agreement with | 3 |
| participating state regulators and to protect licensing | 4 |
| information as so required by this Act or other applicable law. | 5 |
| (2) The Director shall not require any exempt person to | 6 |
| submit information to the multistate automated licensing | 7 |
| system. For purposes of this Section, "exempt person" means any | 8 |
| individual or company exempt from licensure in this State. | 9 |
| (3) No person shall be authorized to obtain information | 10 |
| from the multistate automated licensing system or initiate any | 11 |
| action based on information obtained from the multistate | 12 |
| automated licensing system that the person could not otherwise | 13 |
| have obtained or initiated based on information currently | 14 |
| available under existing State law. | 15 |
| (4) The Director shall accept and abide by the Privacy, | 16 |
| Data Security, and Security Breach Notification Policy, as | 17 |
| adopted by the multistate automated licensing system, and | 18 |
| ensure that it is in full compliance with existing State law. | 19 |
| The Director may make available, upon written request, a copy | 20 |
| of the contract between the Department and the multistate | 21 |
| automated licensing system that satisfies the provisions of | 22 |
| this subsection (4). | 23 |
| (5) The Director may, upon written request and consistent | 24 |
| with other state regulators, provide the most recently | 25 |
| available audited financial report of the multistate automated | 26 |
| licensing system.
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| (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3)
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| Sec. 1-3. Necessity for License; Scope of Act.
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| (a) No person, partnership, association, corporation or | 4 |
| other entity
shall engage in the business of brokering, | 5 |
| funding, originating, servicing
or purchasing of residential | 6 |
| mortgage loans without first obtaining a
license from the | 7 |
| Director Commissioner in accordance with the licensing | 8 |
| procedure
provided in this Article I and such regulations as | 9 |
| may be promulgated by
the Director Commissioner . The licensing | 10 |
| provisions of this Section shall not apply
to any entity | 11 |
| engaged solely in commercial mortgage lending or
to any person, | 12 |
| partnership association, corporation or other entity
exempted | 13 |
| pursuant to Section 1-4, subsection (d), of this Act or in | 14 |
| accordance
with regulations promulgated by the Director | 15 |
| Commissioner hereunder. No person, partnership, association, | 16 |
| corporation, or other entity that is not required to obtain a | 17 |
| license under this Act shall be granted a license under this | 18 |
| Act. The license of any person, partnership, association, | 19 |
| corporation, or other entity that is not required to obtain a | 20 |
| license under this Act shall be void and shall not be renewed.
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| (b) No person, partnership, association, corporation, or | 22 |
| other entity
except a licensee under this Act or an entity | 23 |
| exempt from licensing
pursuant to Section 1-4, subsection (d), | 24 |
| of this Act shall do any business
under any name or title, or | 25 |
| circulate or use any advertising or make any
representation or |
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| give any information to any person, which indicates or
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| reasonably implies activity within the scope
of this Act.
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| (c) The Director Commissioner may, through the Attorney | 4 |
| General, request the circuit
court of either Cook or Sangamon | 5 |
| County to issue an injunction to restrain
any person from | 6 |
| violating or continuing to violate any of the foregoing
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| provisions of this Section.
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| (d) When the Director Commissioner has reasonable cause to | 9 |
| believe that any
entity which has not submitted an application | 10 |
| for licensure is conducting
any of the activities described in | 11 |
| subsection (a) hereof, the Director Commissioner
shall have the | 12 |
| power to examine all books and records of the entity and any
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| additional documentation necessary in order to determine | 14 |
| whether such
entity should become licensed under this Act.
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| (d-1) The Director Commissioner may issue orders against | 16 |
| any person if the Commissioner has reasonable cause to believe | 17 |
| that an unsafe, unsound, or unlawful practice has occurred, is | 18 |
| occurring, or is about to occur, if any person has violated, is | 19 |
| violating, or is about to violate any law, rule, or written | 20 |
| agreement with the Director Commissioner , or for the purposes | 21 |
| of administering the provisions of this Act and any rule | 22 |
| adopted in accordance with this Act.
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| (e) Any person, partnership, association, corporation or | 24 |
| other entity
who violates any provision of this Section commits | 25 |
| a business offense and
shall be fined an amount not to exceed | 26 |
| $25,000.
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| (f) Each person, partnership, association, corporation or | 2 |
| other entity
conducting activities regulated by this Act shall | 3 |
| be issued one license.
The person, partnership, association, | 4 |
| corporation, or other entity shall apply for a license only | 5 |
| under its real name and, if the application is approved, the | 6 |
| license shall be issued under and state the real name of the | 7 |
| person, partnership, association, corporation, or other | 8 |
| entity. In addition to the real name of the licensee, the | 9 |
| license shall also state any assumed name under which the | 10 |
| licensee intends to operate. A licensee may not operate under | 11 |
| an assumed name unless the Department has approved the use of | 12 |
| the assumed name and such name is stated on the license in | 13 |
| addition to the real name of the licensee. Each office, place | 14 |
| of business or location at which a residential mortgage
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| licensee conducts any part of his or her business must
be | 16 |
| recorded with the Director Commissioner pursuant to Section 2-8 | 17 |
| of this Act.
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| (g) Licensees under this Act shall solicit, broker, fund, | 19 |
| originate,
service and purchase residential mortgage loans | 20 |
| only in conformity with the
provisions of this Act and such | 21 |
| rules and regulations as may be promulgated
by the Director | 22 |
| Commissioner .
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| (h) This Act applies to all entities doing business in | 24 |
| Illinois as
residential mortgage bankers, as defined by "An Act | 25 |
| to provide for the
regulation of mortgage bankers", approved | 26 |
| September 15, 1977, as amended,
regardless of whether licensed |
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| under that or any prior Act. Any existing
residential mortgage | 2 |
| lender or residential mortgage broker in Illinois
whether or | 3 |
| not previously licensed, must operate in accordance with this | 4 |
| Act.
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| (i) This Act is a successor Act to and a continuance of the | 6 |
| regulation
of residential mortgage bankers provided in, "An Act | 7 |
| to provide for the
regulation of mortgage bankers", approved | 8 |
| September 15, 1977, as amended.
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| Entities and persons subject to the predecessor Act shall | 10 |
| be subject to
this Act from and after its effective date.
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| (Source: P.A. 93-1018, eff. 1-1-05.)
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| (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
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| Sec. 1-4. Definitions.
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| (a) "Residential real property" or "residential real | 15 |
| estate" shall mean
real property located in this State improved | 16 |
| by a one-to-four family
dwelling used or occupied, wholly or | 17 |
| partly, as the home or residence of
one or more persons and may | 18 |
| refer, subject to regulations of the Director
Commissioner , to | 19 |
| unimproved real property upon which those kinds dwellings
are | 20 |
| to be constructed.
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| (b) "Making a residential mortgage loan" or "funding a | 22 |
| residential mortgage
loan" shall mean for compensation or gain, | 23 |
| either directly or indirectly,
advancing funds or making a | 24 |
| commitment to advance funds to a loan applicant
for a | 25 |
| residential mortgage loan.
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| (c) "Soliciting, processing, placing, or negotiating a | 2 |
| residential
mortgage loan" shall mean for compensation or gain, | 3 |
| either directly or
indirectly, accepting or offering to accept | 4 |
| an application for a
residential mortgage loan, assisting or | 5 |
| offering to assist in the
processing of an application for a | 6 |
| residential mortgage loan on behalf of a
borrower, or | 7 |
| negotiating or offering to negotiate the terms or conditions
of | 8 |
| a residential mortgage loan with a lender on behalf of a | 9 |
| borrower
including, but not limited to, the submission of | 10 |
| credit packages for the
approval of lenders, the preparation of | 11 |
| residential mortgage loan closing
documents, including a | 12 |
| closing in the name of a broker.
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| (d) "Exempt person or entity" shall mean the following:
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| (1) (i) Any banking organization or foreign banking | 15 |
| corporation
licensed by the Director Illinois Commissioner | 16 |
| of Banks and Real Estate or the
United States Comptroller | 17 |
| of the Currency to transact business in this
State; (ii) | 18 |
| any national bank, federally chartered savings and loan
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| association, federal savings bank, federal credit union; | 20 |
| (iii) any pension
trust, bank trust, or bank trust company; | 21 |
| (iv) any bank, savings and loan
association, savings bank, | 22 |
| industrial bank, or credit union organized under the laws | 23 |
| of this
or any other state; (v) any Illinois Consumer | 24 |
| Installment Loan Act licensee;
(vi) any insurance company | 25 |
| authorized to transact business in this State;
(vii) any | 26 |
| entity engaged solely in commercial mortgage lending; |
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| (viii) any
service corporation or subsidiary of a savings | 2 |
| and loan association or savings bank organized
under the | 3 |
| laws of this State , or any other state, or the service | 4 |
| corporation or subsidiary of a federally
chartered savings | 5 |
| and loan association or savings bank having
its principal | 6 |
| place of business in this State , other than a service
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| corporation or subsidiary licensed or entitled to | 8 |
| reciprocity under the Real Estate
License Act of 2000; or | 9 |
| (ix) any first tier subsidiary of a
bank, the charter of | 10 |
| which is issued under the Illinois Banking Act
by the | 11 |
| Illinois Department of Financial and Professional | 12 |
| Regulation, Division of Banking, or the charter of which is | 13 |
| issued under the banking laws of any other state | 14 |
| Commissioner of Banks and Real Estate ,
or the first tier | 15 |
| subsidiary of a bank chartered by the United States
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| Comptroller of the Currency and that has its principal | 17 |
| place of business
in this State, provided that the first | 18 |
| tier subsidiary is regularly
examined by the Illinois | 19 |
| Commissioner of Banks and Real Estate
or the Comptroller of | 20 |
| the Currency, or a consumer compliance examination is
| 21 |
| regularly conducted by the Federal Reserve Board .
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| (1.5) Any employee of a person or entity mentioned in
| 23 |
| item (1) of this subsection.
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| (2) Any person or entity that does not originate
| 25 |
| mortgage loans in the ordinary course of
business making or | 26 |
| acquiring residential mortgage loans
with his or her or its |
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| own funds for his or her or its own investment
without | 2 |
| intent to
make, acquire, or resell more than 10 residential | 3 |
| mortgage loans in
any one calendar year.
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| (3) Any person employed by a licensee to assist in the | 5 |
| performance of
the activities regulated by this Act who is | 6 |
| compensated in any manner by
only one licensee.
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| (4) Any person licensed pursuant to the Real Estate
| 8 |
| License Act of
2000, who engages only in the taking of | 9 |
| applications and credit
and
appraisal information to | 10 |
| forward to a licensee or an exempt entity under this
Act | 11 |
| and who is compensated by either a licensee or an exempt | 12 |
| entity under this
Act, but is not compensated by either the | 13 |
| buyer (applicant) or the seller.
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| (5) Any individual, corporation, partnership, or other | 15 |
| entity that
originates, services, or brokers residential | 16 |
| mortgage loans, as these
activities are defined in this | 17 |
| Act, and who or which receives no
compensation for those | 18 |
| activities, subject to the Director's Commissioner's
| 19 |
| regulations with regard to the nature and amount of | 20 |
| compensation.
| 21 |
| (6) A person who prepares supporting documentation for | 22 |
| a residential
mortgage loan application taken by a licensee | 23 |
| and performs ministerial
functions pursuant to specific | 24 |
| instructions of the licensee who neither
requires nor | 25 |
| permits the preparer to exercise his or her discretion or
| 26 |
| judgment; provided that this activity is engaged in |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| pursuant to a binding,
written agreement between the | 2 |
| licensee and the preparer that:
| 3 |
| (A) holds the licensee fully accountable for the | 4 |
| preparer's action; and
| 5 |
| (B) otherwise meets the requirements of this | 6 |
| Section and this Act, does
not undermine the purposes | 7 |
| of this Act, and is approved by the Director
| 8 |
| Commissioner .
| 9 |
| (e) "Licensee" or "residential mortgage licensee" shall | 10 |
| mean a person,
partnership, association, corporation, or any | 11 |
| other entity who or which is
licensed pursuant to this Act to | 12 |
| engage in the activities regulated by
this Act.
| 13 |
| (f) "Mortgage loan" "residential mortgage loan" or "home
| 14 |
| mortgage loan" shall mean a loan to or for the benefit of any
| 15 |
| natural person made primarily for personal, family, or | 16 |
| household use,
primarily secured by either a mortgage on | 17 |
| residential real property or
certificates of stock or other | 18 |
| evidence of ownership interests in and
proprietary leases from, | 19 |
| corporations, partnerships, or limited
liability companies | 20 |
| formed for the purpose
of cooperative ownership of residential | 21 |
| real property, all located in Illinois.
| 22 |
| (g) "Lender" shall mean any person, partnership, | 23 |
| association,
corporation, or any other entity who either lends | 24 |
| or invests money in
residential mortgage loans.
| 25 |
| (h) "Ultimate equitable owner" shall mean a person who, | 26 |
| directly
or indirectly, owns or controls an ownership interest |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| in a corporation,
foreign corporation, alien business | 2 |
| organization, trust, or any other form
of business organization | 3 |
| regardless of whether the person owns or controls
the ownership | 4 |
| interest through one or more persons or one or more proxies,
| 5 |
| powers of attorney, nominees, corporations, associations, | 6 |
| partnerships,
trusts, joint stock companies, or other entities | 7 |
| or devices, or any
combination thereof.
| 8 |
| (i) "Residential mortgage financing transaction" shall | 9 |
| mean the negotiation,
acquisition, sale, or arrangement for or | 10 |
| the offer to negotiate, acquire,
sell, or arrange for, a | 11 |
| residential mortgage loan or residential mortgage
loan | 12 |
| commitment.
| 13 |
| (j) "Personal residence address" shall mean a street | 14 |
| address and shall
not include a post office box number.
| 15 |
| (k) "Residential mortgage loan commitment" shall mean a | 16 |
| contract for
residential mortgage loan financing.
| 17 |
| (l) "Party to a residential mortgage financing | 18 |
| transaction" shall mean a
borrower, lender, or loan broker in a | 19 |
| residential mortgage financing
transaction.
| 20 |
| (m) "Payments" shall mean payment of all or any of the | 21 |
| following:
principal, interest and escrow reserves for taxes, | 22 |
| insurance and other related
reserves, and reimbursement for | 23 |
| lender advances.
| 24 |
| (n) "Director" "Commissioner" shall mean the Director of | 25 |
| the Division of Banking of the Department of Financial and | 26 |
| Professional Regulation Commissioner of Banks and Real Estate
|
|
|
|
SB1998 Engrossed |
- 20 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| or a person authorized by the Director, the Division of Banking | 2 |
| of the Department of Financial and Professional Regulation | 3 |
| Commissioner, the Office of Banks and Real Estate
Act , or this | 4 |
| Act to act in the Director's Commissioner's stead.
| 5 |
| (o) "Loan brokering", "brokering", or "brokerage service" | 6 |
| shall mean the act
of helping to obtain from another entity, | 7 |
| for a borrower, a loan secured by
residential real estate | 8 |
| situated in Illinois or assisting a borrower in
obtaining a | 9 |
| loan secured by residential real estate situated in Illinois in
| 10 |
| return for consideration to be paid by either the borrower or | 11 |
| the lender
including, but not limited to, contracting for the | 12 |
| delivery of residential
mortgage loans to a third party lender | 13 |
| and soliciting, processing, placing,
or negotiating | 14 |
| residential mortgage loans.
| 15 |
| (p) "Loan broker" or "broker" shall mean a person, | 16 |
| partnership,
association, corporation, or limited liability | 17 |
| company, other than
those persons, partnerships,
associations, | 18 |
| corporations, or limited liability companies exempted
from | 19 |
| licensing pursuant to Section
1-4, subsection (d), of this Act, | 20 |
| who performs the activities described
in subsections (c) and | 21 |
| (o) of this Section.
| 22 |
| (q) "Servicing" shall mean the collection or remittance for | 23 |
| or the
right or obligation to collect or remit for any lender, | 24 |
| noteowner,
noteholder, or for a licensee's own account, of | 25 |
| payments, interests,
principal, and trust items such as hazard | 26 |
| insurance and taxes on a
residential mortgage loan in |
|
|
|
SB1998 Engrossed |
- 21 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| accordance with the terms of the residential
mortgage loan; and | 2 |
| includes loan payment follow-up, delinquency loan
follow-up, | 3 |
| loan analysis and any notifications to the borrower that are
| 4 |
| necessary to enable the borrower to keep the loan current and | 5 |
| in good standing.
| 6 |
| (r) "Full service office" shall mean an office , provided by | 7 |
| the licensee and not subleased from the licensee's employees, | 8 |
| and staff in Illinois
reasonably adequate to handle efficiently | 9 |
| communications, questions, and
other matters relating to any | 10 |
| application for, or an existing home mortgage
secured by | 11 |
| residential real estate situated in Illinois
with respect to | 12 |
| which the licensee is brokering, funding originating,
| 13 |
| purchasing, or servicing. The management and operation of each | 14 |
| full service
office must include observance of good business | 15 |
| practices such as adequate,
organized, and accurate books and | 16 |
| records; ample phone lines, hours of
business, staff training | 17 |
| and supervision, and provision for a mechanism to
resolve | 18 |
| consumer inquiries, complaints, and problems. The Director | 19 |
| Commissioner
shall issue regulations with regard to these | 20 |
| requirements and shall include
an evaluation of compliance with | 21 |
| this Section in his or her periodic
examination of each | 22 |
| licensee.
| 23 |
| (s) "Purchasing" shall mean the purchase of conventional or
| 24 |
| government-insured mortgage loans secured by residential real | 25 |
| estate
situated in Illinois from either the lender or from the | 26 |
| secondary market.
|
|
|
|
SB1998 Engrossed |
- 22 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| (t) "Borrower" shall mean the person or persons who seek | 2 |
| the services of
a loan broker, originator, or lender.
| 3 |
| (u) "Originating" shall mean the issuing of commitments for | 4 |
| and funding of
residential mortgage loans.
| 5 |
| (v) "Loan brokerage agreement" shall mean a written | 6 |
| agreement in which a
broker or loan broker agrees to do either | 7 |
| of the following:
| 8 |
| (1) obtain a residential mortgage loan for the borrower | 9 |
| or assist the
borrower in obtaining a residential mortgage | 10 |
| loan; or
| 11 |
| (2) consider making a residential mortgage loan to the | 12 |
| borrower.
| 13 |
| (w) "Advertisement" shall mean the attempt by publication,
| 14 |
| dissemination, or circulation to induce, directly or | 15 |
| indirectly,
any person to enter into a residential mortgage | 16 |
| loan agreement or
residential mortgage loan brokerage | 17 |
| agreement relative to a
mortgage secured by residential real | 18 |
| estate situated in Illinois.
| 19 |
| (x) "Residential Mortgage Board" shall mean the | 20 |
| Residential Mortgage
Board created in Section 1-5 of this Act.
| 21 |
| (y) "Government-insured mortgage loan" shall mean any | 22 |
| mortgage loan made
on the security of residential real estate | 23 |
| insured by the Department of
Housing and Urban Development or | 24 |
| Farmers Home Loan Administration, or
guaranteed by the Veterans | 25 |
| Administration.
| 26 |
| (z) "Annual audit" shall mean a certified audit of the |
|
|
|
SB1998 Engrossed |
- 23 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| licensee's books and
records and systems of internal control | 2 |
| performed by a certified public
accountant in accordance with | 3 |
| generally accepted accounting principles
and generally | 4 |
| accepted auditing standards.
| 5 |
| (aa) "Financial institution" shall mean a savings and loan
| 6 |
| association, savings bank, credit union, or a bank organized | 7 |
| under the
laws of Illinois or a savings and loan association, | 8 |
| savings bank,
credit union or a bank organized under the laws | 9 |
| of the United States and
headquartered in Illinois.
| 10 |
| (bb) "Escrow agent" shall mean a third party, individual or | 11 |
| entity
charged with the fiduciary obligation for holding escrow | 12 |
| funds on a
residential mortgage loan pending final payout of | 13 |
| those funds
in accordance with the terms of the residential | 14 |
| mortgage loan.
| 15 |
| (cc) "Net worth" shall have the meaning ascribed thereto in | 16 |
| Section 3-5
of this Act.
| 17 |
| (dd) "Affiliate" shall mean:
| 18 |
| (1) any entity that directly controls or is controlled | 19 |
| by the licensee
and any other company that is directly | 20 |
| affecting activities regulated by
this Act that is | 21 |
| controlled by the company that controls the licensee;
| 22 |
| (2) any entity:
| 23 |
| (A) that is controlled, directly or indirectly, by | 24 |
| a trust or otherwise,
by or for the benefit of | 25 |
| shareholders who beneficially or otherwise
control, | 26 |
| directly or indirectly, by trust or otherwise, the |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| licensee or any
company that controls the licensee; or
| 2 |
| (B) a majority of the directors or trustees of | 3 |
| which constitute a
majority of the persons holding any | 4 |
| such office with the licensee or any
company that | 5 |
| controls the licensee;
| 6 |
| (3) any company, including a real estate investment | 7 |
| trust, that is
sponsored and advised on a contractual basis | 8 |
| by the licensee or any
subsidiary or affiliate of the | 9 |
| licensee.
| 10 |
| The Director Commissioner may define by rule and regulation | 11 |
| any terms used
in this Act for the efficient and clear | 12 |
| administration of this Act.
| 13 |
| (ee) "First tier subsidiary" shall be defined by regulation
| 14 |
| incorporating the comparable definitions used by the Office of | 15 |
| the
Comptroller of the Currency and the Director Illinois | 16 |
| Commissioner of Banks
and Real Estate .
| 17 |
| (ff) "Gross delinquency rate" means the quotient | 18 |
| determined by dividing
(1) the sum of (i) the number of | 19 |
| government-insured residential mortgage loans
funded or | 20 |
| purchased by a licensee in the preceding calendar year that are
| 21 |
| delinquent and (ii) the number of conventional residential | 22 |
| mortgage loans
funded or purchased by the licensee in the | 23 |
| preceding calendar year that are
delinquent by (2) the sum of | 24 |
| (i) the number of government-insured residential
mortgage | 25 |
| loans funded or purchased by the licensee in the preceding | 26 |
| calendar
year and (ii) the number of conventional residential |
|
|
|
SB1998 Engrossed |
- 25 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| mortgage loans funded or
purchased by the licensee in the | 2 |
| preceding calendar year.
| 3 |
| (gg) "Delinquency rate factor" means the factor set by rule | 4 |
| of the Director
Commissioner that is multiplied by the average | 5 |
| gross delinquency rate of
licensees, determined annually for | 6 |
| the immediately preceding calendar year, for
the purpose of | 7 |
| determining which licensees shall be examined by the Director
| 8 |
| Commissioner pursuant to subsection (b) of Section 4-8 of this | 9 |
| Act.
| 10 |
| (hh) "Loan originator" means any natural person who, for | 11 |
| compensation or in
the expectation of compensation, either | 12 |
| directly or indirectly makes, offers to
make, solicits, places, | 13 |
| or negotiates a residential mortgage loan.
| 14 |
| (ii) "Confidential supervisory information" means any | 15 |
| report of examination, visitation, or investigation prepared | 16 |
| by the Director Commissioner under this Act, any report of | 17 |
| examination visitation, or investigation prepared by the state | 18 |
| regulatory authority of another state that examines a licensee, | 19 |
| any document or record prepared or obtained in connection with | 20 |
| or relating to any examination, visitation, or investigation, | 21 |
| and any record prepared or obtained by the Director | 22 |
| Commissioner to the extent that the record summarizes or | 23 |
| contains information derived from any report, document, or | 24 |
| record described in this subsection. "Confidential supervisory | 25 |
| information" does not include any information or record | 26 |
| routinely prepared by a licensee and maintained in the ordinary |
|
|
|
SB1998 Engrossed |
- 26 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| course of business or any information or record that is | 2 |
| required to be made publicly available pursuant to State or | 3 |
| federal law or rule.
| 4 |
| (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
| 5 |
| (205 ILCS 635/1-5) (from Ch. 17, par. 2321-5)
| 6 |
| Sec. 1-5. Residential Mortgage Board.
| 7 |
| (a) Board composition, compensation. There is created the | 8 |
| Residential
Mortgage Board composed of 5 members appointed by | 9 |
| the Director of the Division of Banks of the Department of | 10 |
| Financial and Professional Regulation Commissioner of Banks
| 11 |
| and Real Estate . The majority of persons
on the Board shall | 12 |
| have no financial interest in any residential mortgage
business | 13 |
| and one member shall be a representative of the Mortgage | 14 |
| Banking Trade
Association and one member shall be a | 15 |
| representative of the Mortgage Broker
Trade Association. | 16 |
| Members of the Board serving on the effective
date of this | 17 |
| amendatory Act of 1996 shall continue to serve their
unexpired | 18 |
| terms as members of the Residential Mortgage Board. Thereafter, | 19 |
| on
or before January 15 of each year, the Director Commissioner | 20 |
| shall appoint one or more
board members, as shall be necessary | 21 |
| to maintain a 5 member Board, whose terms
shall be for 3 years | 22 |
| commencing February 1 of the year in which they are
| 23 |
| respectively appointed.
| 24 |
| If a vacancy occurs on the Residential Mortgage Board, the | 25 |
| Director Commissioner
shall within 60 days appoint a new member |
|
|
|
SB1998 Engrossed |
- 27 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| who shall hold office for the
remainder of the vacated term.
| 2 |
| The Board shall meet at the call of the chairman, who along | 3 |
| with a
Secretary, shall be selected by the Board from among its | 4 |
| members.
| 5 |
| The members of the Board serve at the pleasure of the | 6 |
| Director
Commissioner .
| 7 |
| (b) Duties of Board. The Residential Mortgage Board shall | 8 |
| assist the
Director Commissioner by:
| 9 |
| (1) submitting recommendations to the Director | 10 |
| Commissioner for the efficient
administration of this Act; | 11 |
| and
| 12 |
| (2) performing other duties as are prescribed by the | 13 |
| Director Commissioner .
| 14 |
| (c) Conflict of interest declarations. Each member of the | 15 |
| Residential
Mortgage Board shall file annually, no later than | 16 |
| February 1, with the Director
Commissioner a statement of his | 17 |
| or her current business transactions or
other affiliations with | 18 |
| any licensee under this Act.
The Director Commissioner may | 19 |
| adopt rules to avoid conflicts of interest on the
part of | 20 |
| members of the Residential Mortgage Board in connection with | 21 |
| their
position on the Board.
| 22 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 23 |
| (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
| 24 |
| Sec. 2-2. Application process; investigation; fee.
| 25 |
| (a) The Director Commissioner shall issue a license upon |
|
|
|
SB1998 Engrossed |
- 28 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| completion of all of the
following:
| 2 |
| (1) The filing of an application for license with the | 3 |
| Director or a multistate automated licensing system | 4 |
| approved by the Director. If an application is filed with | 5 |
| an approved multistate automated licensing system, then | 6 |
| the Director shall issue a license upon completion of the | 7 |
| multistate automated licensing system .
| 8 |
| (2) The filing with the Director Commissioner of a | 9 |
| listing of judgments entered
against, and bankruptcy | 10 |
| petitions by, the license applicant for the
preceding 10 | 11 |
| years.
| 12 |
| (3) The payment, in certified funds, of
investigation | 13 |
| and application fees, the total of which shall be in an
| 14 |
| amount equal to $2,700 annually, however, alternatively a | 15 |
| licensing fee equal to $2,700 shall be paid through an | 16 |
| approved credit card or Automated Clearing House (ACH) | 17 |
| payment to the multistate automated licensing system. The | 18 |
| Director the Commissioner may
increase the
investigation | 19 |
| and application fees by rule as provided in Section 4-11.
| 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 principles which evidences | 25 |
| that the applicant meets
the net worth requirements of | 26 |
| Section 3-5.
|
|
|
|
SB1998 Engrossed |
- 29 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| (5) The filing of proof satisfactory to the Director | 2 |
| Commissioner that the
applicant, the members thereof if the | 3 |
| applicant is a partnership or
association, the members or | 4 |
| managers thereof that retain any authority or
| 5 |
| responsibility under the operating agreement if the | 6 |
| applicant is a limited
liability company, or the officers | 7 |
| thereof if the applicant
is a corporation have 3 years | 8 |
| experience preceding application
in real estate finance. | 9 |
| Instead of this requirement, the applicant and the
| 10 |
| applicant's officers or members, as applicable, may
| 11 |
| satisfactorily complete a program of education in real | 12 |
| estate finance and
fair lending, as
approved by the | 13 |
| Director Commissioner , prior to receiving the
initial | 14 |
| license.
The Director Commissioner shall promulgate rules | 15 |
| regarding proof of experience
requirements and educational | 16 |
| requirements and the satisfactory completion of
those | 17 |
| requirements. The Commissioner may establish by rule a list | 18 |
| of duly
licensed professionals and others who may be exempt | 19 |
| from this requirement.
| 20 |
| (6) An investigation of the averments required by | 21 |
| Section 2-4, which
investigation must allow the Director | 22 |
| Commissioner to issue positive findings stating
that the | 23 |
| financial responsibility, experience, character, and | 24 |
| general fitness
of the license applicant and of the members | 25 |
| thereof if the license applicant is
a partnership or | 26 |
| association, of the officers and directors thereof if the
|
|
|
|
SB1998 Engrossed |
- 30 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| license applicant is a corporation, and of the managers and | 2 |
| members that retain
any authority or responsibility under | 3 |
| the operating agreement if the license
applicant is a | 4 |
| limited liability company are such as to command the | 5 |
| confidence
of the community and to warrant belief that the | 6 |
| business will be operated
honestly, fairly and efficiently | 7 |
| within the purpose of this Act. If the
Director | 8 |
| Commissioner shall not so find, he or she shall not issue | 9 |
| such license, and he
or she shall notify the license | 10 |
| applicant of the denial. | 11 |
| The Director Commissioner may impose conditions on a | 12 |
| license if the Director Commissioner determines that the | 13 |
| conditions are necessary or appropriate. These conditions | 14 |
| shall be imposed in writing and shall continue in effect for | 15 |
| the period prescribed by the Director Commissioner .
| 16 |
| (b) All licenses shall be issued in duplicate with one copy
| 17 |
| being transmitted to the license applicant or license status | 18 |
| may be posted on the multistate automated licensing system and | 19 |
| the second being
retained with the Commissioner .
| 20 |
| Upon receipt of such license, a residential mortgage | 21 |
| licensee shall be
authorized to engage in the business | 22 |
| regulated by this Act. Such license
shall remain in full force | 23 |
| and effect until it expires without renewal, is
surrendered by | 24 |
| the licensee or revoked or suspended as hereinafter provided.
| 25 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
|
|
|
|
SB1998 Engrossed |
- 31 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| (205 ILCS 635/2-3) (from Ch. 17, par. 2322-3)
| 2 |
| Sec. 2-3. Application form.
| 3 |
| (a) Application for a residential mortgage license must be | 4 |
| made in
accordance with Section 2-6 and the requirements of the | 5 |
| multistate automated licensing system approved by the | 6 |
| Director . The application shall be in writing, under oath,
and | 7 |
| on a form obtained from and prescribed by the Director, or may | 8 |
| be submitted electronically, with attestation, to the | 9 |
| multistate automated licensing system Commissioner .
| 10 |
| (b) The application shall contain the name and complete | 11 |
| business and
residential address or addresses of the license | 12 |
| applicant. If the license
applicant is a partnership, | 13 |
| association, corporation or other form of
business | 14 |
| organization, the application shall contain the names and | 15 |
| complete
business and residential addresses of each member, | 16 |
| director and principal
officer thereof. Such application shall | 17 |
| also include a description of the
activities of the license | 18 |
| applicant, in such detail and for such periods,
as the Director | 19 |
| Commissioner may require, including all of the following:
| 20 |
| (1) An affirmation of financial solvency noting such | 21 |
| capitalization
requirements as may be required by the | 22 |
| Director Commissioner , and access to such
credit as may be | 23 |
| required by the Director Commissioner .
| 24 |
| (2) An affirmation that the license applicant or its | 25 |
| members, directors or
principals as may be appropriate, are | 26 |
| at least 18 years of age.
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (3) Information as to the character, fitness, | 2 |
| financial and business
responsibility, background, | 3 |
| experience, and criminal record of any
(i) person, entity, | 4 |
| or ultimate equitable owner that owns or controls,
directly | 5 |
| or indirectly, 10% or more of any class of stock of the | 6 |
| license
applicant; (ii) person, entity, or ultimate | 7 |
| equitable owner that is not a
depository institution, as | 8 |
| defined in Section 1007.50 of the Savings Bank
Act, that | 9 |
| lends, provides, or infuses, directly or indirectly, in any | 10 |
| way,
funds to or into a license applicant, in an amount | 11 |
| equal to or more than 10% of
the license applicant's net | 12 |
| worth; (iii) person, entity, or ultimate equitable
owner | 13 |
| that controls, directly or indirectly, the election of 25% | 14 |
| or more of the
members of the board of directors of a | 15 |
| license applicant; or (iv) person,
entity, or ultimate | 16 |
| equitable owner that the Director Commissioner finds | 17 |
| influences
management of the license applicant.
| 18 |
| (4) Upon written request by the licensee and | 19 |
| notwithstanding the
provisions of paragraphs (1), (2), and | 20 |
| (3) of this subsection, the Director Commissioner
may | 21 |
| permit the licensee to omit all or part of the information | 22 |
| required by
those paragraphs if, in lieu of the omitted | 23 |
| information, the licensee submits
an affidavit stating | 24 |
| that the information submitted on the licensee's previous
| 25 |
| renewal application is still true and accurate. The | 26 |
| Director Commissioner may
promulgate rules prescribing the |
|
|
|
SB1998 Engrossed |
- 33 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| form and content of the affidavit that are
necessary to | 2 |
| accomplish the purposes of this Section.
| 3 |
| (5) Such other information as required by regulations | 4 |
| of the
Director Commissioner . | 5 |
| In the event the information required by the multistate | 6 |
| automated licensing system, as adopted by the Director, | 7 |
| conflicts with any information required in this subsection | 8 |
| (b), the requirements of the multistate automated | 9 |
| licensing system as adopted shall prevail.
| 10 |
| (Source: P.A. 89-355, eff. 8-17-95.)
| 11 |
| (205 ILCS 635/2-4) (from Ch. 17, par. 2322-4)
| 12 |
| Sec. 2-4. Averments of Licensee. Each application for | 13 |
| license or for the
renewal of a license shall be accompanied by | 14 |
| the following averments stating
that the applicant:
| 15 |
| (a) Will maintain at least one full service office | 16 |
| within the
State of Illinois pursuant to Section 3-4 of | 17 |
| this Act;
| 18 |
| (b) Will maintain staff reasonably adequate to meet the | 19 |
| requirements of
Section 3-4 of this Act;
| 20 |
| (c) Will keep and maintain for 36 months the same | 21 |
| written records
as required by the federal Equal Credit | 22 |
| Opportunity Act, and any other
information required by | 23 |
| regulations of the Director Commissioner regarding any | 24 |
| home
mortgage in the course of the conduct of its | 25 |
| residential mortgage business;
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (d) Will file with the Director, or multistate | 2 |
| automated licensing system Commissioner , when due, any | 3 |
| report or reports
which it is required to file under any of | 4 |
| the provisions of this Act;
| 5 |
| (e) Will not engage, whether as principal or agent, in | 6 |
| the practice of
rejecting residential mortgage | 7 |
| applications without reasonable cause, or
varying terms or | 8 |
| application procedures without reasonable cause, for home
| 9 |
| mortgages on real estate within any specific geographic | 10 |
| area from the terms
or procedures generally provided by the | 11 |
| licensee within other geographic
areas of the State;
| 12 |
| (f) Will not engage in fraudulent home mortgage | 13 |
| underwriting practices;
| 14 |
| (g) Will not make payment, whether directly or | 15 |
| indirectly, of any kind
to any in house or fee appraiser of | 16 |
| any government or private money lending
agency with which | 17 |
| an application for a home mortgage has been filed for the
| 18 |
| purpose of influencing the independent judgment of the | 19 |
| appraiser with respect
to the value of any real estate | 20 |
| which is to be covered by such home mortgage;
| 21 |
| (h) Has filed tax returns (State and Federal) for the | 22 |
| past 3
years or filed as required by the Director with the | 23 |
| Commissioner an accountant's or attorney's
statement as to | 24 |
| why no return was filed;
| 25 |
| (i) Will not engage in any discrimination or redlining | 26 |
| activities
prohibited by Section 3-8 of this Act;
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (j) Will not knowingly make any false promises likely | 2 |
| to influence or
persuade, or pursue a course of | 3 |
| misrepresentation and false promises
through agents, | 4 |
| solicitors, advertising or otherwise;
| 5 |
| (k) Will not knowingly misrepresent, circumvent or | 6 |
| conceal, through
whatever subterfuge or device, any of the | 7 |
| material particulars or the
nature thereof, regarding a | 8 |
| transaction to which it is a party to the
injury of another | 9 |
| party thereto;
| 10 |
| (l) Will disburse funds in accordance with its | 11 |
| agreements;
| 12 |
| (m) Has not committed a crime against the law of this | 13 |
| State, any other
state or of the United States, involving | 14 |
| moral turpitude, fraudulent or
dishonest dealing, and that | 15 |
| no final judgment has been entered against it in
a civil | 16 |
| action upon grounds of fraud, misrepresentation or deceit | 17 |
| which has
not been previously reported to the Director | 18 |
| Commissioner ;
| 19 |
| (n) Will account or deliver to the owner upon request | 20 |
| any person any personal property such as
money, fund, | 21 |
| deposit, check, draft, mortgage, other document or thing of
| 22 |
| value, which has come into its possession, and which is not | 23 |
| its property,
or which it is not in law or equity entitled | 24 |
| to retain under the
circumstances , at the time which has | 25 |
| been agreed upon or is required
by law, or, in the absence | 26 |
| of a fixed time, upon demand of the person
entitled to such |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| accounting and delivery ;
| 2 |
| (o) Has not engaged in any conduct which would be cause | 3 |
| for denial of a
license;
| 4 |
| (p) Has not become insolvent;
| 5 |
| (q) Has not submitted an application for a license | 6 |
| under this Act which
contains a material misstatement;
| 7 |
| (r) Has not demonstrated by course of conduct, | 8 |
| negligence or incompetence
in performing any act for which | 9 |
| it is required to hold a license under this
Act;
| 10 |
| (s) Will advise the Director Commissioner in writing , | 11 |
| or the multistate automated licensing system by electronic | 12 |
| means, of any changes to the
information submitted on the | 13 |
| most recent application for license within 30
days of said | 14 |
| change , or by the date required for entry of changes to the | 15 |
| multistate automated licensing system . The written notice | 16 |
| must be signed in the same form as
the application for | 17 |
| license being amended;
| 18 |
| (t) Will comply with the provisions of this Act, or | 19 |
| with any lawful
order, rule or regulation made or issued | 20 |
| under the provisions of this Act;
| 21 |
| (u) Will submit to periodic examination by the Director | 22 |
| Commissioner as required
by this Act;
| 23 |
| (v) Will advise the Director Commissioner in writing of | 24 |
| judgments entered
against, and bankruptcy petitions by, | 25 |
| the license applicant within 5
days of occurrence;
| 26 |
| (w) Will advise the Director Commissioner in writing |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| within 30 days of any request made to when the
license | 2 |
| applicant requests a licensee under this Act to repurchase | 3 |
| a loan in a manner that completely and clearly identifies | 4 |
| to whom the request was made, the loans involved, and the | 5 |
| reason for the request , and
the circumstances therefor ;
| 6 |
| (x) Will advise the Director Commissioner in writing | 7 |
| within 30 days of any request from any entity when the
| 8 |
| license applicant is requested by another entity to | 9 |
| repurchase a loan in a manner that completely and clearly | 10 |
| identifies who made the request, the loans involved, and | 11 |
| the reason for the request , and the
circumstances therefor ;
| 12 |
| (y) Will at all times act in a manner consistent with | 13 |
| subsections (a) and
(b) of Section 1-2 of this Act; and
| 14 |
| (z) Will not knowingly hire or employ a loan originator | 15 |
| who is
not registered with the Director Commissioner as | 16 |
| required under Section 7-1 of this Act.
| 17 |
| A licensee who fails to fulfill obligations of an averment, | 18 |
| to comply with
averments made, or otherwise violates any of the | 19 |
| averments made under this
Section shall be subject to the | 20 |
| penalties in Section 4-5 of this Act.
| 21 |
| (Source: P.A. 95-331, eff. 8-21-07.)
| 22 |
| (205 ILCS 635/2-5) (from Ch. 17, par. 2322-5)
| 23 |
| Sec. 2-5. Refusal to Issue License. The Director | 24 |
| Commissioner shall refuse to
license or renew a license if:
| 25 |
| (1) it is determined that the applicant is not in |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| compliance with any
provisions of the Act or the provisions | 2 |
| of the multistate automated licensing system as approved by | 3 |
| the Director ; or
| 4 |
| (2) there is substantial continuity between the | 5 |
| applicant and any
violator of this Act; or
| 6 |
| (3) the Director Commissioner cannot make the findings | 7 |
| specified in Section 2-2,
subsection (a), of this Act.
| 8 |
| (Source: P.A. 86-137; 87-642.)
| 9 |
| (205 ILCS 635/2-6) (from Ch. 17, par. 2322-6)
| 10 |
| Sec. 2-6. License issuance and renewal; fee.
| 11 |
| (a) Beginning July 1, 2003, licenses shall be renewed every | 12 |
| year on the
anniversary of the date of issuance of the original | 13 |
| license , or if the multistate automated licensing system is | 14 |
| approved, then on the common renewal date selected for the | 15 |
| multistate automated licensing system .
Properly completed | 16 |
| renewal application forms and filing fees must be received
by | 17 |
| the Director Commissioner 60 days prior to the renewal date , or | 18 |
| if the multistate automated licensing system is approved, then | 19 |
| by the date of receipt selected for the multistate automated | 20 |
| licensing system .
| 21 |
| (b) It shall be the responsibility of each licensee to | 22 |
| accomplish renewal
of its license; failure of the licensee to | 23 |
| receive renewal forms or electronic notice absent a
request | 24 |
| sent by certified mail for such forms will not waive said
| 25 |
| responsibility. Failure by a licensee to submit a properly |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| completed
renewal application form , or complete renewal on the | 2 |
| multistate automated licensing system, and pay fees in a timely | 3 |
| fashion, absent a written
extension from the Director | 4 |
| Commissioner , will result in the assessment of
additional fees, | 5 |
| as follows:
| 6 |
| (1) A fee of $750 will be assessed to the licensee 30 | 7 |
| days
after the
proper renewal date and $1,500 each month | 8 |
| thereafter, or late fees as determined by the Director in | 9 |
| conjunction with the multistate automated licensing | 10 |
| system, until the
license is
either renewed or expires | 11 |
| pursuant to Section 2-6, subsections (c) and (d),
of this | 12 |
| Act.
| 13 |
| (2) Such fee will be assessed without prior notice to | 14 |
| the licensee, but
will be assessed only in cases wherein | 15 |
| the Director Commissioner has in his or her
possession | 16 |
| documentation of the licensee's continuing activity for | 17 |
| which
the unrenewed license was issued.
| 18 |
| (c) A license which is not renewed by the date required in | 19 |
| this Section
shall automatically become inactive. No activity | 20 |
| regulated by this Act
shall be conducted by the licensee when a | 21 |
| license becomes inactive. The Director Commissioner may | 22 |
| require the licensee to provide a plan for the disposition of | 23 |
| any residential mortgage loans not closed or funded when the | 24 |
| license becomes inactive. The Director Commissioner may allow a | 25 |
| licensee with an inactive license to conduct activities | 26 |
| regulated by this Act for the sole purpose of assisting |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| borrowers in the closing or funding of loans for which the loan | 2 |
| application was taken from a borrower while the license was | 3 |
| active. An
inactive license may be reactivated by the Director, | 4 |
| or by the multistate automated licensing system at the | 5 |
| direction of the Director, Commissioner upon payment of the | 6 |
| renewal fee, and payment
of a reactivation fee equal to the | 7 |
| renewal fee.
| 8 |
| (d) A license which is not renewed within one year of | 9 |
| becoming inactive
shall expire.
| 10 |
| (e) A licensee ceasing an activity or activities regulated | 11 |
| by this Act
and desiring to no longer be licensed shall so | 12 |
| inform the Director Commissioner in
writing and, at the same | 13 |
| time, convey the license and all other symbols or
indicia of | 14 |
| licensure , or request a license status change on the multistate | 15 |
| automated licensing system . The licensee shall include a plan | 16 |
| for the withdrawal
from regulated business, including a | 17 |
| timetable for the disposition of the
business and comply with | 18 |
| surrender guidelines of the Director to ensure proper surrender | 19 |
| of the license . Upon completion of all requirements receipt of | 20 |
| such written notice , the Director Commissioner shall issue
a | 21 |
| certified statement canceling the license or the surrendered or | 22 |
| cancelled license status shall be posted on the multistate | 23 |
| automated licensing system .
| 24 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-561, eff. 1-1-04; 93-1018, | 25 |
| eff. 1-1-05.)
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (205 ILCS 635/2-7) (from Ch. 17, par. 2322-7)
| 2 |
| Sec. 2-7. Waiver of licensing fee. The Director | 3 |
| Commissioner may waive the
licensing fee upon receipt of:
| 4 |
| (a) an application for a residential mortgage license in | 5 |
| Illinois,
| 6 |
| (b) an addendum requesting waiver of the fee stating
the | 7 |
| grounds in support of such waiver, including but not limited | 8 |
| to, not
for profit status, bankruptcy or the showing of undue | 9 |
| hardship, and
| 10 |
| (c) in case of an out-of-state servicer of loans in | 11 |
| Illinois,
the following documentation is required:
| 12 |
| (1) A verification that the firm services only 100 or | 13 |
| fewer
loans secured
by residential real estate situated in | 14 |
| Illinois;
| 15 |
| (2) An agreement not to originate, purchase or acquire | 16 |
| additional
servicing of loans secured by residential real | 17 |
| estate situated in Illinois;
| 18 |
| (3) An agreement to maintain a dedicated toll free | 19 |
| (800) number for
exclusive use by the licensee's Illinois | 20 |
| customers;
| 21 |
| (4) An agreement to provide a written notice at least | 22 |
| annually to the
licensee's Illinois customers advising | 23 |
| them of the dedicated toll free (800)
number; and to | 24 |
| furnish the Director Commissioner with a copy of such | 25 |
| written notice.
| 26 |
| A request for waiver of the filing fee must be submitted |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| each
year in conjunction with the license renewal procedure.
| 2 |
| (Source: P.A. 90-301, eff. 8-1-97.)
| 3 |
| (205 ILCS 635/2-8) (from Ch. 17, par. 2322-8)
| 4 |
| Sec. 2-8. Additional Full-service Offices.
| 5 |
| (a) A licensee may apply for authority to open and maintain | 6 |
| additional
full-service offices by:
| 7 |
| (1) Giving the Director or multistate automated licensing | 8 |
| system Commissioner prior notice of its intention in such form
| 9 |
| as shall be prescribed by the Commissioner.
| 10 |
| (2) Payment of a fee to be established by regulation.
| 11 |
| (b) Upon receipt of the notice and fee required in | 12 |
| subsection (a) above, the
Commissioner shall issue a | 13 |
| certificate for the additional full-service office , or the | 14 |
| license status shall be posted to the multistate automated | 15 |
| licensing system .
| 16 |
| (c) The certificate , if issued by the Director, shall be | 17 |
| conspicuously posted in the respective
additional full-service | 18 |
| offices.
| 19 |
| (Source: P.A. 85-735.)
| 20 |
| (205 ILCS 635/2-9) (from Ch. 17, par. 2322-9)
| 21 |
| Sec. 2-9. Posting of license. The license of a licensee
| 22 |
| whose home office is within the State of Illinois or of an
| 23 |
| out-of-state licensee , if issued by the Director, shall be | 24 |
| conspicuously posted in every
office of the licensee located in |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| Illinois. Out-of-state
licensees without an Illinois office | 2 |
| shall produce the license , if issued,
upon request. Licensees | 3 |
| originating loans on the Internet shall post on
their Internet | 4 |
| web site their license number and the address and telephone
| 5 |
| number of the Director Commissioner . The license shall state | 6 |
| the full name and
address
of the licensee. The license shall | 7 |
| not be transferable or assignable.
A separate certificate may | 8 |
| shall be issued for posting in each full
service Illinois | 9 |
| office.
| 10 |
| (Source: P.A. 91-586, eff. 8-14-99.)
| 11 |
| (205 ILCS 635/2-11) (from Ch. 17, par. 2322-11)
| 12 |
| Sec. 2-11. Miscellaneous fees. In addition to any license | 13 |
| fee collected
under this Act, the Director Commissioner shall | 14 |
| by rule and regulation establish a
schedule to apply to | 15 |
| assessment and collection of necessary contingent and
| 16 |
| miscellaneous fees.
| 17 |
| (Source: P.A. 85-735.)
| 18 |
| (205 ILCS 635/3-1) (from Ch. 17, par. 2323-1)
| 19 |
| Sec. 3-1. Bonds of licensees.
| 20 |
| (a) Every licensee, with respect to any person appointed or | 21 |
| elected
to any position requiring the receipt of payment, | 22 |
| management, or use of money
belonging to a residential mortgage | 23 |
| licensee engaged in the activities of
originating, servicing, | 24 |
| or purchasing mortgage loans or whose duties permit him
or her |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| to have access to or custody of any of its money or securities | 2 |
| or
custody of any money or securities belonging to third | 3 |
| parties or whose duties
permit him or her regularly to make | 4 |
| entries in the books or other records of a
licensee, shall, | 5 |
| before assuming his or her duties, maintain a fidelity bond in
| 6 |
| the amount of $100,000 by some fidelity insurance company | 7 |
| licensed to do
business in this State.
| 8 |
| (b) Each bond shall be for any loss the licensee may | 9 |
| sustain in money or
other property through the commission of | 10 |
| any dishonest or criminal act or
omission by any person | 11 |
| required to be bonded, whether committed alone or in
concert | 12 |
| with another. The bond shall be in the form and amount approved
| 13 |
| by the Director Commissioner who may at any time require one or | 14 |
| more additional
bonds. A true copy of every bond, including all | 15 |
| riders and endorsements
executed subsequent to the effective | 16 |
| date of the bond, shall be filed at
all times with the Director | 17 |
| Commissioner . Each bond shall provide that a
cancellation | 18 |
| thereof shall not become effective unless and until
30 days | 19 |
| notice in writing first shall have been given to the Director | 20 |
| Commissioner
unless he or she shall have approved the | 21 |
| cancellation earlier.
If the Director Commissioner believes | 22 |
| the licensee's business is being conducted in
an unsafe manner | 23 |
| due to the lack of bonds or the inadequacy of bonds,
he or she | 24 |
| may proceed against the licensee as provided for in Section | 25 |
| 4-5.
| 26 |
| (c) All licensees shall maintain a bond in accordance with |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| this subsection.
Each bond shall be for the recovery of | 2 |
| expenses, fines, or fees due to or
levied by the Director | 3 |
| Commissioner in accordance with this Act. The bond shall be
| 4 |
| payable when the licensee fails to comply with any provisions | 5 |
| of this Act and
shall be in the form of a surety or licensure | 6 |
| bond in the amount and form as
prescribed by the Director | 7 |
| Commissioner pursuant to rules and regulations. The bond
shall | 8 |
| be payable to the Division of Banking of the Department of | 9 |
| Financial and Professional Regulation Office of Banks and Real | 10 |
| Estate and shall be issued by some insurance company
authorized | 11 |
| to do business in this State. A copy of the bond, including any | 12 |
| and
all riders and endorsements executed subsequent to the | 13 |
| effective date of the
bond, shall be placed on file with the | 14 |
| Division of Banking of the Department of Financial and | 15 |
| Professional Regulation Office of Banks and Real Estate within | 16 |
| 10 days of the
execution thereof.
| 17 |
| (d) The Director Commissioner may promulgate rules with | 18 |
| respect to bonding
requirements for residential mortgage | 19 |
| licensees that are
reasonable and necessary to accomplish the | 20 |
| purposes of this Act.
| 21 |
| (Source: P.A. 89-508, eff. 7-3-96.)
| 22 |
| (205 ILCS 635/3-2) (from Ch. 17, par. 2323-2)
| 23 |
| Sec. 3-2. Annual audit.
| 24 |
| (a) At the licensee's fiscal year-end, but in no
case more | 25 |
| than 12 months after the last audit conducted pursuant to this
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| Section, except as otherwise provided in this Section, it shall | 2 |
| be
mandatory for each residential mortgage licensee to
cause | 3 |
| its books and accounts to be audited by a certified public | 4 |
| accountant
licensed under the Illinois Public Accounting Act or | 5 |
| by an equivalent state licensing law not connected with such | 6 |
| licensee. The books and records of all licensees
under this Act | 7 |
| shall be maintained on an accrual basis. The audit must be
| 8 |
| sufficiently comprehensive in scope to permit
the expression of | 9 |
| an opinion on the financial statements, which must be
prepared | 10 |
| in accordance with generally accepted accounting principles, | 11 |
| and
must be performed in accordance with generally accepted | 12 |
| auditing standards. Notwithstanding
the requirements of this | 13 |
| subsection, a licensee that is a first tier subsidiary
may | 14 |
| submit audited consolidated financial statements of its parent | 15 |
| as long as
the consolidated statements are supported by | 16 |
| consolidating statements. The
licensee's chief financial | 17 |
| officer shall attest to the licensee's financial
statements | 18 |
| disclosed in the consolidating statements.
| 19 |
| (b) As used herein, the term "expression of opinion" | 20 |
| includes either
(1) an unqualified opinion, (2) a qualified | 21 |
| opinion, (3) a disclaimer of
opinion, or (4) an adverse | 22 |
| opinion.
| 23 |
| (c) If a qualified or adverse opinion is expressed or if an | 24 |
| opinion is
disclaimed, the reasons therefore must be fully | 25 |
| explained. An opinion,
qualified as to a scope limitation, | 26 |
| shall not be acceptable.
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (d) The most recent audit report shall be filed with the | 2 |
| Director
Commissioner within 90 days after the end of the | 3 |
| licensee's fiscal year. The report
filed with the Director | 4 |
| Commissioner shall be certified by the certified public
| 5 |
| accountant conducting the audit. The Director Commissioner may | 6 |
| promulgate rules
regarding late audit reports.
| 7 |
| (e) If any licensee required to make an audit shall fail to | 8 |
| cause an
audit to be made, the Director Commissioner shall | 9 |
| cause the same to be made by a
certified public accountant at | 10 |
| the licensee's expense. The Director Commissioner
shall select | 11 |
| such certified public accountant by advertising for bids or
by | 12 |
| such other fair and impartial means as he or she establishes by | 13 |
| regulation.
| 14 |
| (f) In lieu of the audit or compilation financial statement
| 15 |
| required by this Section, a licensee shall submit and the | 16 |
| Director Commissioner may
accept any audit made in conformance | 17 |
| with the audit
requirements of the U.S. Department of Housing | 18 |
| and Urban Development.
| 19 |
| (g) With respect to licensees who solely broker residential | 20 |
| mortgage
loans as defined in subsection (o) of Section 1-4, | 21 |
| instead of the audit
required by this Section, the Director | 22 |
| Commissioner may
accept
compilation financial statements | 23 |
| prepared at least every 12 months, and
the compilation | 24 |
| financial statement must be prepared by an independent
| 25 |
| certified public accountant licensed under the Illinois Public | 26 |
| Accounting Act
or by an equivalent state licensing law with |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| full disclosure in accordance with generally accepted | 2 |
| accounting
principals and must be submitted within 90 days | 3 |
| after the end of
the licensee's fiscal year. If a
licensee
| 4 |
| under this Section fails to file a compilation as required, the | 5 |
| Director Commissioner
shall cause an audit of the licensee's | 6 |
| books and accounts to be made by a
certified public accountant | 7 |
| at the licensee's expense. The Director Commissioner shall
| 8 |
| select the certified public accountant by advertising for bids | 9 |
| or by such other
fair and impartial means as he or she | 10 |
| establishes by rule. A licensee who
files false or misleading | 11 |
| compilation financial statements is guilty of a
business | 12 |
| offense and shall be fined not less than $5,000.
| 13 |
| (h) The workpapers of the certified public accountants | 14 |
| employed
by each
licensee for purposes of this Section are to | 15 |
| be made available to the Director
Commissioner or the | 16 |
| Director's Commissioner's designee upon request and may be
| 17 |
| reproduced by the Director Commissioner or the Director's | 18 |
| Commissioner's designee to enable to
the Director Commissioner | 19 |
| to carry out the purposes of this Act.
| 20 |
| (i) Notwithstanding any other provision of this Section, if | 21 |
| a licensee
relying on subsection (g) of this Section causes its | 22 |
| books to be audited at any
other time or causes its financial | 23 |
| statements to be reviewed, a complete copy
of the audited or | 24 |
| reviewed financial statements shall be delivered to the | 25 |
| Director
Commissioner at the time of the annual license renewal | 26 |
| payment following
receipt by the licensee of the audited or |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| reviewed financial statements. All workpapers shall be made | 2 |
| available to the Director
Commissioner upon request. The | 3 |
| financial statements and workpapers may be
reproduced by the | 4 |
| Director Commissioner or the Director's Commissioner's | 5 |
| designee to carry out the
purposes of this Act.
| 6 |
| (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
| 7 |
| (205 ILCS 635/3-3) (from Ch. 17, par. 2323-3)
| 8 |
| Sec. 3-3. Advertising. In addition to such other rules, | 9 |
| regulations
and policies as the Director Commissioner may | 10 |
| promulgate to effectuate the purpose of
this Act, the Director | 11 |
| Commissioner shall prescribe regulations governing the
| 12 |
| advertising of mortgage loans, including without limitation, | 13 |
| the following
requirements:
| 14 |
| (a) Advertising for loans transacted under this Act may not | 15 |
| be false,
misleading or deceptive. No entity whose activities | 16 |
| are regulated under
this Act may advertise in any manner so as | 17 |
| to indicate or imply that its
interest rates or charges for | 18 |
| loans are in any way "recommended", "approved",
"set" or | 19 |
| "established" by the State or by this Act. The Director | 20 |
| Commissioner may issue
a cease and desist order for any | 21 |
| violation of this Section.
| 22 |
| (b) All advertisements by a licensee shall contain the name | 23 |
| and an
office address of such entity, which shall conform to a | 24 |
| name and address on
record with the Director Commissioner .
| 25 |
| (c) No licensee shall advertise its services in Illinois in |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| any media,
whether print or electronic, without the words | 2 |
| "Illinois Residential
Mortgage Licensee".
| 3 |
| (Source: P.A. 87-1098.)
| 4 |
| (205 ILCS 635/3-4) (from Ch. 17, par. 2323-4)
| 5 |
| Sec. 3-4. Office and staff within the State.
| 6 |
| (a) A licensee whose principal place of business is located | 7 |
| in the State
of Illinois shall
maintain at least one full | 8 |
| service office with
staff reasonably adequate to handle | 9 |
| efficiently communications, questions,
and all other matters | 10 |
| relating to any application for a home mortgage or an
existing | 11 |
| home mortgage with respect
to which such licensee is performing | 12 |
| services, regardless of kind, for any
borrower or lender, note | 13 |
| owner or holder, or for himself or herself while
engaged in the | 14 |
| residential
mortgage business. The location and operation of a | 15 |
| full service office shall be in compliance with any applicable | 16 |
| zoning laws or ordinances and home office or business | 17 |
| regulations.
The office or place of business shall not be | 18 |
| located in any real estate, retail, or financial business | 19 |
| establishment unless it is separated from the other business by | 20 |
| a separate and distinct area within the establishment.
| 21 |
| (b) In lieu of maintaining a full service office in the | 22 |
| State of
Illinois,
and subject to the rules of the Department, | 23 |
| a licensee whose principal place of business is located outside | 24 |
| the
State of Illinois
may comply with all of the following | 25 |
| requirements: |
|
|
|
SB1998 Engrossed |
- 51 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| (1) maintain a limited service office in Illinois that | 2 |
| is adequate to accommodate a full-scope examination of the | 3 |
| licensee's books and records as they relate to activity in | 4 |
| Illinois, as determined by the Department; | 5 |
| (2) must submit a certified audit as required in | 6 |
| Section 3-2 of this Act
evidencing a minimum net worth of | 7 |
| $150,000 $100,000 , which must be maintained at all
times ; | 8 |
| and | 9 |
| (3) , and shall submit and maintain a fidelity bond in | 10 |
| the amount of
$100,000 , a copy of which must be submitted | 11 |
| to the Department. The Department may promulgate rules | 12 |
| permitting licensees that do not comply with the net worth | 13 |
| requirement established on the effective date of this | 14 |
| amendatory Act of the 95th General Assembly to do so within | 15 |
| 12 months after the effective date of this amendatory Act | 16 |
| of the 95th General Assembly .
| 17 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 18 |
| (205 ILCS 635/3-5) (from Ch. 17, par. 2323-5)
| 19 |
| Sec. 3-5. Net worth requirement. A licensee that holds a | 20 |
| license on the
effective date of this amendatory Act of the | 21 |
| 93rd General Assembly shall have and
maintain a net worth of | 22 |
| not less than $100,000; however, no later than 2
years after | 23 |
| the effective date of this amendatory
Act of the 93rd General | 24 |
| Assembly, the licensee must maintain a net worth of not
less | 25 |
| than $150,000. A licensee that first obtains a license after |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| the effective
date of this amendatory Act of the 93rd General | 2 |
| Assembly must have and maintain
a net worth of not less than | 3 |
| $150,000.
Notwithstanding other requirements of this Section, | 4 |
| the net worth
requirement for a residential mortgage licensee | 5 |
| whose
only licensable
activity is that of brokering residential | 6 |
| mortgage loans and that holds a
license on the effective date | 7 |
| of this amendatory Act of the 93rd General
Assembly shall be | 8 |
| $35,000; however, no later than 2 years after the
effective | 9 |
| date of this amendatory
Act of the 93rd General Assembly, the | 10 |
| licensee must maintain a net worth of
not less than $50,000. | 11 |
| Such a licensee that first obtains a license after the
| 12 |
| effective date of this amendatory Act of the 93rd General | 13 |
| Assembly
must have and maintain a net worth of not less than | 14 |
| $50,000.
Net worth shall be evidenced by a balance sheet | 15 |
| prepared by a certified
public accountant in accordance with | 16 |
| generally accepted accounting principles
and generally | 17 |
| accepted auditing standards or by the compilation financial
| 18 |
| statements authorized under subsection (g) of Section 3-2. The | 19 |
| Director Commissioner
may promulgate
rules with respect to net | 20 |
| worth definitions
and requirements for residential mortgage | 21 |
| licensees as necessary to
accomplish the purposes of this Act. | 22 |
| In lieu of the net worth requirement
established by this | 23 |
| Section, the Director Commissioner may accept evidence of
| 24 |
| conformance by the licensee with the net worth requirements of | 25 |
| the United
States Department of Housing and Urban Development.
| 26 |
| (Source: P.A. 93-561, eff. 1-1-04.)
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (205 ILCS 635/3-9) (from Ch. 17, par. 2323-9)
| 2 |
| Sec. 3-9. Escrow Funds. The Director Commissioner may | 3 |
| promulgate rules with
respect to placement in escrow accounts | 4 |
| by any licensee of any money, fund,
deposit, check or draft | 5 |
| entrusted to it by any persons dealing with it as a
residential | 6 |
| mortgage licensee.
| 7 |
| (Source: P.A. 85-735.)
| 8 |
| (205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| 9 |
| Sec. 4-1. Director of the Division of Banking of the | 10 |
| Department of Financial and Professional Regulation | 11 |
| Commissioner of Banks and Real Estate ; functions, powers, and | 12 |
| duties. The functions,
powers, and duties of the Director | 13 |
| Commissioner of Banks and Real Estate shall include the | 14 |
| following:
| 15 |
| (a) To issue or refuse to issue any license as provided by | 16 |
| this Act;
| 17 |
| (b) To revoke or suspend for cause any license issued under | 18 |
| this Act;
| 19 |
| (c) To keep records of all licenses issued under this Act;
| 20 |
| (d) To receive, consider, investigate, and act upon | 21 |
| complaints made by
any person in connection with any | 22 |
| residential mortgage licensee in this State;
| 23 |
| (e) To consider and act upon any recommendations from the | 24 |
| Residential
Mortgage Board;
|
|
|
|
SB1998 Engrossed |
- 54 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| (f) To prescribe the forms of and receive:
| 2 |
| (1) applications for licenses; and
| 3 |
| (2) all reports and all books and records required to | 4 |
| be made by
any licensee under this Act, including annual | 5 |
| audited financial statements
and annual reports of | 6 |
| mortgage activity;
| 7 |
| (g) To adopt rules and regulations necessary and proper for | 8 |
| the
administration of this Act;
| 9 |
| (h) To subpoena documents and witnesses and compel their | 10 |
| attendance and
production, to administer oaths, and to require | 11 |
| the production of any books,
papers, or other materials | 12 |
| relevant to any inquiry authorized by this Act;
| 13 |
| (h-1) To issue orders against any person, if the Director | 14 |
| Commissioner has reasonable cause to believe that an unsafe, | 15 |
| unsound, or unlawful practice has occurred, is occurring, or is | 16 |
| about to occur, if any person has violated, is violating, or is | 17 |
| about to violate any law, rule, or written agreement with the | 18 |
| Director Commissioner , or for the purpose of administering the | 19 |
| provisions of this Act and any rule adopted in accordance with | 20 |
| the Act; | 21 |
| (h-2) To address any inquiries to any licensee, or the | 22 |
| officers thereof, in relation to its activities and conditions, | 23 |
| or any other matter connected with its affairs, and it shall be | 24 |
| the duty of any licensee or person so addressed, to promptly | 25 |
| reply in writing to such inquiries. The Director Commissioner | 26 |
| may also require reports from any licensee at any time the |
|
|
|
SB1998 Engrossed |
- 55 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| Director Commissioner may deem desirable;
| 2 |
| (i) To require information with regard to any license | 3 |
| applicant
as he or she may deem desirable, with due regard to | 4 |
| the paramount interests
of the public as to the experience, | 5 |
| background, honesty, truthfulness,
integrity, and competency | 6 |
| of the license applicant as to financial
transactions involving | 7 |
| primary or subordinate mortgage financing, and where
the | 8 |
| license applicant is an entity other than an individual, as to | 9 |
| the
honesty, truthfulness, integrity, and competency of any | 10 |
| officer or director
of the corporation, association, or other | 11 |
| entity, or the members of a
partnership;
| 12 |
| (j) To examine the books and records of every licensee | 13 |
| under this Act at
intervals as specified in Section 4-2;
| 14 |
| (k) To enforce provisions of this Act;
| 15 |
| (l) To levy fees, fines, and charges for services performed | 16 |
| in administering
this Act; the aggregate of all fees collected | 17 |
| by the Director Commissioner on and after
the effective date of | 18 |
| this Act shall be paid promptly after receipt of the
same, | 19 |
| accompanied by a detailed statement thereof, into the Savings | 20 |
| and
Residential Finance Regulatory Fund; the amounts deposited | 21 |
| into that Fund shall
be used for the ordinary and contingent | 22 |
| expenses of the Office of Banks and
Real Estate. Nothing in | 23 |
| this Act shall prevent continuing the practice of paying
| 24 |
| expenses involving salaries, retirement, social security, and | 25 |
| State-paid
insurance of State officers by appropriation from | 26 |
| the General Revenue Fund.
|
|
|
|
SB1998 Engrossed |
- 56 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| (m) To appoint examiners, supervisors, experts, and | 2 |
| special assistants as
needed to effectively and efficiently | 3 |
| administer this Act;
| 4 |
| (n) To conduct hearings for the purpose of:
| 5 |
| (1) appeals of orders of the Director Commissioner ;
| 6 |
| (2) suspensions or revocations of licenses, or fining | 7 |
| of licensees;
| 8 |
| (3) investigating:
| 9 |
| (i) complaints against licensees; or
| 10 |
| (ii) annual gross delinquency rates; and
| 11 |
| (4) carrying out the purposes of this Act;
| 12 |
| (o) To exercise exclusive visitorial power over a licensee | 13 |
| unless otherwise authorized by this Act or as vested in the | 14 |
| courts, or upon prior consultation with the Director | 15 |
| Commissioner , a foreign residential mortgage regulator with an | 16 |
| appropriate supervisory interest in the parent or affiliate of | 17 |
| a licensee;
| 18 |
| (p) To enter into cooperative agreements with state | 19 |
| regulatory authorities of other states to provide for | 20 |
| examination of corporate offices or branches of those states | 21 |
| and to accept reports of such examinations;
| 22 |
| (q) To assign an examiner or examiners to monitor the | 23 |
| affairs of a licensee with whatever frequency the Commissioner | 24 |
| determines appropriate and to charge the licensee for | 25 |
| reasonable and necessary expenses of the Director | 26 |
| Commissioner , if in the opinion of the Director Commissioner an |
|
|
|
SB1998 Engrossed |
- 57 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| emergency exists or appears likely to occur; and
| 2 |
| (r) To impose civil penalties of up to $50 per day against | 3 |
| a licensee for failing to respond to a regulatory request or | 4 |
| reporting requirement.
| 5 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 6 |
| (205 ILCS 635/4-2) (from Ch. 17, par. 2324-2)
| 7 |
| Sec. 4-2. Examination; prohibited activities.
| 8 |
| (a) The business affairs of a licensee under this Act shall | 9 |
| be examined
for compliance with this Act as often as the | 10 |
| Director Commissioner deems necessary and
proper. The Director | 11 |
| Commissioner shall promulgate rules with respect to the | 12 |
| frequency
and manner of examination. The Director Commissioner | 13 |
| shall appoint a suitable person
to perform such
examination. | 14 |
| The Director Commissioner and his appointees may examine the
| 15 |
| entire
books, records, documents, and operations of each | 16 |
| licensee and its subsidiary, affiliate, or agent, and may | 17 |
| examine
any of the licensee's or its subsidiary's, affiliate's, | 18 |
| or agent's officers, directors, employees and agents under | 19 |
| oath. For purposes of this Section, "agent" includes service | 20 |
| providers such as accountants, closing services providers, | 21 |
| providers of outsourced services such as call centers, | 22 |
| marketing consultants, and loan processors, even if exempt from | 23 |
| licensure under this Act.
| 24 |
| (b) The Director Commissioner shall prepare a
sufficiently
| 25 |
| detailed
report of each
licensee's examination, shall issue a |
|
|
|
SB1998 Engrossed |
- 58 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| copy of such report to each
licensee's principals, officers, or | 2 |
| directors and shall take appropriate
steps to ensure correction | 3 |
| of violations of this Act.
| 4 |
| (c) Affiliates of a licensee shall be subject to | 5 |
| examination by the Director
Commissioner on the same terms as | 6 |
| the licensee, but only when reports
from, or examination of a | 7 |
| licensee provides for documented evidence of
unlawful activity | 8 |
| between a licensee and affiliate benefiting, affecting or
| 9 |
| deriving from the activities regulated by this Act.
| 10 |
| (d) The expenses of any examination of the licensee and | 11 |
| affiliates shall
be borne by the licensee and assessed by the | 12 |
| Commissioner as established
by regulation.
| 13 |
| (e) Upon completion of the examination, the Director | 14 |
| Commissioner shall issue a
report to the licensee. All | 15 |
| confidential supervisory information, including the | 16 |
| examination report
and the work papers
of the report, shall | 17 |
| belong to the Director's Commissioner's office and may not be
| 18 |
| disclosed to anyone other than the licensee, law enforcement | 19 |
| officials or other
regulatory agencies that have an appropriate | 20 |
| regulatory interest as determined by the Commissioner, or to a | 21 |
| party presenting a lawful subpoena to the Office of the | 22 |
| Director
Commissioner . The Director Commissioner may | 23 |
| immediately appeal to the court of jurisdiction the disclosure | 24 |
| of such confidential supervisory information and seek a stay of | 25 |
| the subpoena pending the outcome of the appeal. Reports | 26 |
| required of licensees by the Director Commissioner under this |
|
|
|
SB1998 Engrossed |
- 59 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| Act
and results of examinations performed by the Director | 2 |
| Commissioner under this Act shall
be the property of only the | 3 |
| Director Commissioner , but may be shared with the licensee. | 4 |
| Access under this
Act to the books and records of each licensee | 5 |
| shall be limited to the Director
Commissioner and his agents as | 6 |
| provided in this Act and to the licensee and its
authorized | 7 |
| agents and designees. No other person shall have access to the
| 8 |
| books and records of a licensee under this Act. Any person upon | 9 |
| whom a demand for production of confidential supervisory | 10 |
| information is made, whether by subpoena, order, or other | 11 |
| judicial or administrative process, must withhold production | 12 |
| of the confidential supervisory information and must notify the | 13 |
| Director Commissioner of the demand, at which time the Director | 14 |
| Commissioner is authorized to intervene for the purpose of | 15 |
| enforcing the limitations of this Section or seeking the | 16 |
| withdrawal or termination of the attempt to compel production | 17 |
| of the confidential supervisory information. The Director | 18 |
| Commissioner may impose any conditions and limitations on the | 19 |
| disclosure of confidential supervisory information that are | 20 |
| necessary to protect the confidentiality of such information. | 21 |
| Except as authorized by the Director Commissioner , no person | 22 |
| obtaining access to confidential supervisory information may | 23 |
| make a copy of the confidential supervisory information. The | 24 |
| Director Commissioner may condition a decision to disclose | 25 |
| confidential supervisory information on entry of a protective | 26 |
| order by the court or administrative tribunal presiding in the |
|
|
|
SB1998 Engrossed |
- 60 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| particular case or on a written agreement of confidentiality. | 2 |
| In a case in which a protective order or agreement has already | 3 |
| been entered between parties other than the Director | 4 |
| Commissioner , the Director Commissioner may nevertheless | 5 |
| condition approval for release of confidential supervisory | 6 |
| information upon the inclusion of additional or amended | 7 |
| provisions in the protective order. The Director Commissioner | 8 |
| may authorize a party who obtained the records for use in one | 9 |
| case to provide them to another party in another case, subject | 10 |
| to any conditions that the Director Commissioner may impose on | 11 |
| either or both parties. The requestor shall promptly notify | 12 |
| other parties to a case of the release of confidential | 13 |
| supervisory information obtained and, upon entry of a | 14 |
| protective order, shall provide copies of confidential | 15 |
| supervisory information to the other parties.
| 16 |
| (f) The Director, deputy directors, and employees of the | 17 |
| Division of Banks of the Department of Financial and | 18 |
| Professional Regulation Commissioner, deputy commissioners, | 19 |
| and employees
of the Office of Banks and Real Estate shall be | 20 |
| subject to the restrictions
provided in Section 2.5 of the | 21 |
| Office of Banks and Real Estate Act including,
without | 22 |
| limitation, the restrictions on (i) owning shares of stock or | 23 |
| holding
any other equity interest in an entity regulated under | 24 |
| this Act or in any
corporation or company that owns or controls | 25 |
| an entity regulated under this
Act; (ii) being an officer, | 26 |
| director, employee, or agent of an entity regulated
under this |
|
|
|
SB1998 Engrossed |
- 61 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| Act; and (iii) obtaining a loan or accepting a gratuity from an
| 2 |
| entity regulated under this Act.
| 3 |
| (g) After the initial examination for those licensees whose | 4 |
| only mortgage
activity is servicing fewer than 1,000 Illinois | 5 |
| residential loans,
the
examination required in subsection (a) | 6 |
| may be waived upon submission of a
letter from the licensee's | 7 |
| independent certified auditor that the licensee
serviced fewer | 8 |
| than 1,000 Illinois residential loans during the
year
in which | 9 |
| the
audit was performed.
| 10 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 11 |
| (205 ILCS 635/4-3) (from Ch. 17, par. 2324-3)
| 12 |
| Sec. 4-3. Subpoena power of the Director Commissioner . (a) | 13 |
| The Director Commissioner
shall have the power to issue and to | 14 |
| serve subpoenas and subpoenas duces
tecum to compel the | 15 |
| attendance of witnesses and the production of all
books, | 16 |
| accounts, records and other documents and materials relevant to | 17 |
| an
examination or investigation. The Director Commissioner or | 18 |
| his or her duly
authorized representative, shall have power to | 19 |
| administer oaths and
affirmations to any person.
| 20 |
| (b) In the event of noncompliance with a subpoena or | 21 |
| subpoena duces
tecum issued or caused to be issued by the | 22 |
| Director Commissioner , the Director Commissioner
may petition | 23 |
| the circuit court of the county in which the person subpoenaed
| 24 |
| resides or has its principal place of business for an order | 25 |
| requiring the
subpoenaed person to appear and testify and to |
|
|
|
SB1998 Engrossed |
- 62 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| produce such books,
accounts, records and other documents as | 2 |
| are specified in the subpoena
duces tecum. The court may grant | 3 |
| injunctive relief restraining the person
from advertising, | 4 |
| promoting, soliciting, entering into, offering to enter
into, | 5 |
| continuing, or completing any residential mortgage financing
| 6 |
| transaction or residential mortgage servicing transaction. The | 7 |
| court may
grant such other relief, including, but not limited | 8 |
| to, the
restraint, by injunction or appointment of a receiver, | 9 |
| of any transfer,
pledge, assignment or other disposition of the | 10 |
| person's assets or any
concealment, alteration, destruction or | 11 |
| other disposition of books,
accounts, records or other | 12 |
| documents and materials as
the court deems appropriate, until | 13 |
| the person has fully complied with the
subpoena or subpoena | 14 |
| duces tecum and the Director Commissioner has completed an
| 15 |
| investigation or examination.
| 16 |
| (c) When it shall appear to the Director Commissioner that | 17 |
| the compliance with a
subpoena or subpoena duces tecum issued | 18 |
| or caused to be issued by the Director
Commissioner pursuant to | 19 |
| this Section is essential to an investigation or
examination, | 20 |
| the Director Commissioner , in addition to the other remedies | 21 |
| provided
for herein, may apply for relief to the circuit court | 22 |
| of the county in
which the subpoenaed person resides or has its | 23 |
| principal place of business.
The court shall thereupon direct | 24 |
| the issuance of an order against the
subpoenaed person | 25 |
| requiring sufficient bond conditioned on compliance with
the | 26 |
| subpoena or subpoena duces tecum. The court shall cause to be |
|
|
|
SB1998 Engrossed |
- 63 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| endorsed
on the order a suitable amount of bond or payment | 2 |
| pursuant to which the
person named in the order shall be freed, | 3 |
| having a due regard to the nature of the case.
| 4 |
| (d) In addition, the Director Commissioner may seek a writ | 5 |
| of attachment or an
equivalent order from the circuit court | 6 |
| having jurisdiction over the person
who has refused to obey a | 7 |
| subpoena, who has refused to give testimony or
who has refused | 8 |
| to produce the matters described in the subpoena duces tecum.
| 9 |
| (Source: P.A. 85-735.)
| 10 |
| (205 ILCS 635/4-4) (from Ch. 17, par. 2324-4)
| 11 |
| Sec. 4-4. Report Required of Licensee; False Statements; | 12 |
| Delay;
Penalties.(a) In addition to any reports required under | 13 |
| this Act, every
licensee shall file such other reports as the | 14 |
| Director Commissioner shall request.
| 15 |
| (b) Any licensee or any officer, director, employee or | 16 |
| agent of any
licensee who shall fail to file any reports | 17 |
| required by this Act, including
those under subsection (a) | 18 |
| above, or who shall deliberately, wilfully or
knowingly make, | 19 |
| subscribe to or cause to be made any false entry with
intent to | 20 |
| deceive the Director Commissioner or his or her appointees or | 21 |
| who shall
purposely cause unreasonable delay in filing such | 22 |
| reports, shall be guilty
of a Class 4 Felony.
| 23 |
| (Source: P.A. 85-735.)
| 24 |
| (205 ILCS 635/4-5) (from Ch. 17, par. 2324-5)
|
|
|
|
SB1998 Engrossed |
- 64 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| Sec. 4-5. Suspension, revocation of licenses; fines.
| 2 |
| (a) Upon written notice to a licensee, the Director | 3 |
| Commissioner may suspend
or revoke any license issued pursuant | 4 |
| to this Act if he or she shall make a
finding of one or more of | 5 |
| the following in the notice that:
| 6 |
| (1) Through separate acts or an act or a course of | 7 |
| conduct, the licensee
has violated any provisions of this | 8 |
| Act, any rule or regulation
promulgated by the Director | 9 |
| Commissioner or of any other law, rule or regulation of
| 10 |
| this State or the United States.
| 11 |
| (2) Any fact or condition exists which, if it had | 12 |
| existed at the time of
the original application for such | 13 |
| license would have warranted the Director
Commissioner in | 14 |
| refusing originally to issue such license.
| 15 |
| (3) If a licensee is other than an individual, any | 16 |
| ultimate
equitable owner, officer, director, or member of | 17 |
| the licensed partnership,
association, corporation, or | 18 |
| other entity has so acted or failed to act as
would be | 19 |
| cause for suspending or revoking a license to that party as | 20 |
| an
individual.
| 21 |
| (b) No license shall be suspended or revoked, except as | 22 |
| provided in this
Section, nor shall any licensee be fined | 23 |
| without notice of his or her right
to a hearing as provided in | 24 |
| Section 4-12 of this Act.
| 25 |
| (c) The Director Commissioner , on good cause shown that an | 26 |
| emergency exists, may
suspend any license for a period not
|
|
|
|
SB1998 Engrossed |
- 65 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| exceeding 180 days, pending investigation. Upon a showing that | 2 |
| a
licensee has failed to meet the experience or educational | 3 |
| requirements of
Section 2-2 or the requirements of subsection | 4 |
| (g) of Section 3-2, the Director
Commissioner shall suspend, | 5 |
| prior to hearing as provided in Section 4-12, the
license until | 6 |
| those requirements have been met.
| 7 |
| (d) The provisions of subsection (e) of Section 2-6 of this | 8 |
| Act
shall not affect a licensee's civil or criminal liability
| 9 |
| for acts committed prior to surrender of a license.
| 10 |
| (e) No revocation, suspension or surrender of any license | 11 |
| shall impair
or affect the obligation of any pre-existing | 12 |
| lawful contract between the
licensee and any person.
| 13 |
| (f) Every license issued under this Act shall remain in | 14 |
| force and effect
until the same shall have expired without | 15 |
| renewal, have been surrendered,
revoked or suspended in | 16 |
| accordance with the provisions of this Act, but the Director
| 17 |
| Commissioner shall have authority to reinstate a suspended | 18 |
| license or to
issue a new license to a licensee whose license | 19 |
| shall have been revoked if
no fact or condition then exists | 20 |
| which would have warranted the Director
Commissioner in | 21 |
| refusing originally to issue such license under this Act.
| 22 |
| (g) Whenever the Director Commissioner shall revoke or | 23 |
| suspend a license issued
pursuant to this Act or fine a | 24 |
| licensee under this Act, he or she shall
forthwith execute in | 25 |
| duplicate a written order to that effect. The Director
| 26 |
| Commissioner shall publish notice of such order in the Illinois |
|
|
|
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|
| 1 |
| Register
or and post notice of the order on an agency Internet | 2 |
| site maintained by the Director Commissioner and shall | 3 |
| forthwith serve a copy of such order upon the
licensee. Any | 4 |
| such order may be reviewed in the manner provided by
Section | 5 |
| 4-12 of this Act.
| 6 |
| (h) When the Director Commissioner finds any person in | 7 |
| violation of the grounds
set forth in subsection (i), he or she | 8 |
| may enter an order imposing one or
more of the following | 9 |
| penalties:
| 10 |
| (1) Revocation of license;
| 11 |
| (2) Suspension of a license subject to reinstatement | 12 |
| upon satisfying all
reasonable conditions the Director | 13 |
| Commissioner may specify;
| 14 |
| (3) Placement of the licensee or applicant on probation | 15 |
| for a period of
time and subject to all reasonable | 16 |
| conditions as the Director Commissioner may specify;
| 17 |
| (4) Issuance of a reprimand;
| 18 |
| (5) Imposition of a fine not to exceed $25,000 for each
| 19 |
| count of
separate offense; and
| 20 |
| (6) Denial of a license.
| 21 |
| (i) The following acts shall constitute grounds for which | 22 |
| the
disciplinary actions specified in subsection (h) above may | 23 |
| be taken:
| 24 |
| (1) Being convicted or found guilty, regardless of | 25 |
| pendency of an
appeal, of a crime in any jurisdiction which | 26 |
| involves fraud, dishonest
dealing, or any other act of |
|
|
|
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|
| 1 |
| moral turpitude;
| 2 |
| (2) Fraud, misrepresentation, deceit or negligence in | 3 |
| any mortgage
financing transaction;
| 4 |
| (3) A material or intentional misstatement of fact on | 5 |
| an initial or
renewal application;
| 6 |
| (4) Failure to follow the Director's Commissioner's | 7 |
| regulations with respect to
placement of funds in escrow | 8 |
| accounts;
| 9 |
| (5) Insolvency or filing under any provision of the | 10 |
| Bankruptcy Code
as a debtor;
| 11 |
| (6) Failure to account or deliver to any person any | 12 |
| property such as any
money, fund, deposit, check, draft, | 13 |
| mortgage, or other document or thing of
value, which has | 14 |
| come into his or her hands and which is not his or her
| 15 |
| property or which he or she is not in law or equity | 16 |
| entitled to retain,
under the circumstances and at the time | 17 |
| which has been agreed upon or is
required by law or, in the | 18 |
| absence of a fixed time, upon demand of the
person entitled | 19 |
| to such accounting and delivery;
| 20 |
| (7) Failure to disburse funds in accordance with | 21 |
| agreements;
| 22 |
| (8) Any misuse, misapplication, or misappropriation of | 23 |
| trust funds
or escrow funds;
| 24 |
| (9) Having a license, or the equivalent, to practice | 25 |
| any profession or
occupation revoked, suspended, or | 26 |
| otherwise acted against, including the
denial of licensure |
|
|
|
SB1998 Engrossed |
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|
| 1 |
| by a licensing authority of this State or another
state, | 2 |
| territory or country for fraud, dishonest dealing or any | 3 |
| other act
of moral turpitude;
| 4 |
| (10) Failure to issue a satisfaction of mortgage when | 5 |
| the residential
mortgage has been executed and proceeds | 6 |
| were not disbursed to the benefit
of the mortgagor and when | 7 |
| the mortgagor has fully paid licensee's costs
and | 8 |
| commission;
| 9 |
| (11) Failure to comply with any order of the | 10 |
| Commissioner or rule made
or issued under the provisions of | 11 |
| this Act;
| 12 |
| (12) Engaging in activities regulated by this Act | 13 |
| without a current,
active license unless specifically | 14 |
| exempted by this Act;
| 15 |
| (13) Failure to pay in a timely manner any fee, charge | 16 |
| or fine under
this Act;
| 17 |
| (14) Failure to maintain, preserve, and keep available | 18 |
| for examination,
all books, accounts or other documents | 19 |
| required by the provisions of this
Act and the rules of the | 20 |
| Director Commissioner ;
| 21 |
| (15) Refusing, obstructing, evading, or unreasonably | 22 |
| delaying an investigation, information request, or | 23 |
| examination authorized under this Act, or refusing, | 24 |
| obstructing, evading, or unreasonably delaying compliance | 25 |
| with the Director's Refusal to permit an investigation or | 26 |
| examination of the licensee's
or its affiliates' books and |
|
|
|
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|
| 1 |
| records or refusal to comply with the
Commissioner's | 2 |
| subpoena or subpoena duces tecum;
| 3 |
| (16) A pattern of substantially underestimating the | 4 |
| maximum closing costs;
| 5 |
| (17) Failure to comply with or violation of any | 6 |
| provision of this Act.
| 7 |
| (j) A licensee shall be subject to the disciplinary actions | 8 |
| specified in
this Act for violations of subsection (i) by any | 9 |
| officer, director,
shareholder, joint venture, partner, | 10 |
| ultimate equitable owner, or employee
of the licensee.
| 11 |
| (k) Such licensee shall be subject to suspension or | 12 |
| revocation for
employee actions only if there is a pattern of | 13 |
| repeated violations by
employees or the licensee has knowledge | 14 |
| of the violations.
| 15 |
| (l) Procedure for surrender of license:
| 16 |
| (1) The Director Commissioner may, after 10 days notice | 17 |
| by certified mail to the
licensee at the address set forth | 18 |
| on the license, stating the contemplated
action and in | 19 |
| general the grounds therefor and the date, time and place | 20 |
| of
a hearing thereon, and after providing the licensee with | 21 |
| a reasonable
opportunity to be heard prior to such action, | 22 |
| fine such licensee an amount
not exceeding $25,000
per | 23 |
| violation, or revoke or suspend any license
issued | 24 |
| hereunder if he or she finds that:
| 25 |
| (i) The licensee has failed to comply with any | 26 |
| provision of this Act or
any order, decision, finding, |
|
|
|
SB1998 Engrossed |
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|
| 1 |
| rule, regulation or direction of the Director
| 2 |
| Commissioner lawfully made pursuant to the authority | 3 |
| of this Act; or
| 4 |
| (ii) Any fact or condition exists which, if it had | 5 |
| existed at the time
of the original application for the | 6 |
| license, clearly would have warranted
the Commissioner | 7 |
| in refusing to issue the license.
| 8 |
| (2) A surrender of a license Any licensee may surrender | 9 |
| a license by delivering to the
Commissioner written notice | 10 |
| that he or she thereby surrenders such license,
but | 11 |
| surrender shall not affect the licensee's civil or criminal | 12 |
| liability
for acts committed prior to surrender or entitle | 13 |
| the licensee to a return
of any part of the license fee.
| 14 |
| (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
| 15 |
| (205 ILCS 635/4-6) (from Ch. 17, par. 2324-6)
| 16 |
| Sec. 4-6. Investigation of Complaints. The Director | 17 |
| Commissioner shall at all times maintain staff and facilities
| 18 |
| adequate to receive, record and investigate complaints and | 19 |
| inquiries made by
any person concerning this Act and any | 20 |
| licensees under this Act. Each
licensee shall open its books, | 21 |
| records, documents and offices wherever
situated to the | 22 |
| Director Commissioner or his or her appointees as needed to | 23 |
| facilitate
such investigations.
| 24 |
| (Source: P.A. 85-735.)
|
|
|
|
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|
| 1 |
| (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
| 2 |
| Sec. 4-8. Default rate; examination.
| 3 |
| (a) The Director Commissioner shall obtain from the U.S. | 4 |
| Department of Housing and
Urban Development on a semi-annual | 5 |
| basis that Department's default claim rates
for endorsements | 6 |
| issued by that Department.
| 7 |
| (b) The Director Commissioner shall conduct an examination | 8 |
| of each licensee
having a default rate equal to or greater than | 9 |
| 5%.
| 10 |
| This subsection shall not be construed as a limitation
of | 11 |
| the Director's Commissioner's examination authority under | 12 |
| Section 4-2 of this Act or as
otherwise provided in this Act.
| 13 |
| The Director Commissioner may require a licensee to provide | 14 |
| loan default
data as the Director Commissioner deems necessary | 15 |
| for the proper enforcement
of the Act.
| 16 |
| (c) The purpose of the examination under subsection (b) | 17 |
| shall be
to determine whether the default rate of the
licensee | 18 |
| has resulted from practices which deviate from
sound and | 19 |
| accepted mortgage underwriting practices, including but not
| 20 |
| limited to credit fraud, appraisal fraud and property | 21 |
| inspection fraud.
For the purpose of conducting this | 22 |
| examination, the Director Commissioner may accept
materials | 23 |
| prepared for the U.S. Department of Housing and Urban | 24 |
| Development.
At the conclusion of the examination, the Director | 25 |
| Commissioner shall make his or
her findings available to the | 26 |
| Residential Mortgage Board.
|
|
|
|
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|
| 1 |
| (d) The Director Commissioner , at his or her discretion, | 2 |
| may hold public
hearings, or at the direction of the | 3 |
| Residential Mortgage Board, shall hold
public hearings. Such | 4 |
| testimony shall be by a homeowner or mortgagor or his
agent, | 5 |
| whose residential interest is affected by the activities of the
| 6 |
| residential mortgage licensee subject to such hearing.
At such | 7 |
| public hearing, a witness may present testimony on his or her | 8 |
| behalf
concerning only his or her home, or home mortgage or a | 9 |
| witness may authorize a
third party to appear on his or her | 10 |
| behalf. The testimony shall be
restricted to information and | 11 |
| comments related to a specific residence or
specific | 12 |
| residential mortgage application or applications for a | 13 |
| residential
mortgage or residential loan transaction. The | 14 |
| testimony must be preceded
by either a letter of complaint or a | 15 |
| completed consumer complaint form
prescribed by the | 16 |
| Commissioner.
| 17 |
| (e) The Director Commissioner shall, at the conclusion of | 18 |
| the public hearings,
release his or her findings and shall also | 19 |
| make public any action taken
with respect to the licensee. The | 20 |
| Director Commissioner shall also give full
consideration to the | 21 |
| findings of this examination whenever reapplication is
made by | 22 |
| the licensee for a new license under this Act.
| 23 |
| (f) A licensee that is examined pursuant to subsection (b)
| 24 |
| shall submit to the Director Commissioner a plan which shall be | 25 |
| designed to reduce that
licensee's default rate to a figure | 26 |
| that is
less than 5%. The plan shall be implemented by the
|
|
|
|
SB1998 Engrossed |
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|
| 1 |
| licensee as approved by the Director Commissioner . A licensee | 2 |
| that is
examined pursuant to subsection (b) shall report | 3 |
| monthly,
for a one year period, one, 2, and 3 month defaults.
| 4 |
| (g) Whenever the Director Commissioner finds that a | 5 |
| licensee's
default rate
on insured mortgages is unusually high | 6 |
| within a particular
geographic area, he or she shall require | 7 |
| that licensee to submit such
information as is necessary to | 8 |
| determine whether that licensee's practices
have constituted | 9 |
| credit fraud, appraisal fraud or property inspection
fraud. The | 10 |
| Director Commissioner shall promulgate such rules as are | 11 |
| necessary to
determine whether any licensee's default rate is
| 12 |
| unusually high within a particular area.
| 13 |
| (Source: P.A. 89-355, eff. 1-1-96; 89-626, eff. 8-9-96; 90-301, | 14 |
| eff. 8-1-97.)
| 15 |
| (205 ILCS 635/4-8.2)
| 16 |
| Sec. 4-8.2. Reports of violations. Any person licensed | 17 |
| under this Act or
any other person may report to the Director | 18 |
| Commissioner any information to show that a
person subject to | 19 |
| this Act is or may be in violation of this Act.
| 20 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 21 |
| (205 ILCS 635/4-8.3) | 22 |
| Sec. 4-8.3. Annual reports report of mortgage , brokerage, | 23 |
| and servicing activity. On or before March 1 of each year, or | 24 |
| by the date selected by the multistate automated licensing |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| system, each licensee , except residential mortgage brokers, | 2 |
| shall file a report of its mortgage, brokerage, and servicing | 3 |
| activity with the Director Commissioner that shall disclose | 4 |
| such information as the Commissioner requires. Exempt entities | 5 |
| as defined in subsection (d) of Section 1-4 shall not file the | 6 |
| annual reports report of mortgage , brokerage, and servicing | 7 |
| activity required by this Section.
| 8 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 9 |
| (205 ILCS 635/4-10) (from Ch. 17, par. 2324-10)
| 10 |
| (Text of Section before amendment by P.A. 95-691 )
| 11 |
| Sec. 4-10. Rules and Regulations of the Director | 12 |
| Commissioner . (a) In addition to such powers as may be | 13 |
| prescribed by this Act, the Director
Commissioner is hereby | 14 |
| authorized and empowered to promulgate regulations
consistent | 15 |
| with the purposes of this Act, including but not limited to:
| 16 |
| (1) Such rules and regulations in connection with the | 17 |
| activities of
licensees as may be necessary and appropriate for | 18 |
| the protection of
consumers in this State;
| 19 |
| (2) Such rules and regulations as may be necessary and | 20 |
| appropriate to
define improper or fraudulent business | 21 |
| practices in connection with the
activities of licensees in | 22 |
| making mortgage loans;
| 23 |
| (3) Such rules and regulations as may define the terms used | 24 |
| in this Act
and as may be necessary and appropriate to | 25 |
| interpret and implement the
provisions of this Act; and
|
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (4) Such rules and regulations as may be necessary for the | 2 |
| enforcement of this Act.
| 3 |
| (b) The Director Commissioner is hereby authorized and | 4 |
| empowered to make such
specific rulings, demands and findings | 5 |
| as he or she may deem necessary for the
proper conduct of the | 6 |
| mortgage lending industry.
| 7 |
| (Source: P.A. 85-735.)
| 8 |
| (Text of Section after amendment by P.A. 95-691 )
| 9 |
| Sec. 4-10. Rules and Regulations of the Director | 10 |
| Commissioner .
| 11 |
| (a) In addition to such powers as may be prescribed by this | 12 |
| Act, the Director
Commissioner is hereby authorized and | 13 |
| empowered to promulgate regulations
consistent with the | 14 |
| purposes of this Act, including but not limited to:
| 15 |
| (1) Such rules and regulations in connection with the | 16 |
| activities of
licensees as may be necessary and appropriate | 17 |
| for the protection of
consumers in this State;
| 18 |
| (2) Such rules and regulations as may be necessary and | 19 |
| appropriate to
define improper or fraudulent business | 20 |
| practices in connection with the
activities of licensees in | 21 |
| making mortgage loans;
| 22 |
| (3) Such rules and regulations as may define the terms | 23 |
| used in this Act
and as may be necessary and appropriate to | 24 |
| interpret and implement the
provisions of this Act; and
| 25 |
| (4) Such rules and regulations as may be necessary for |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| the enforcement of this Act.
| 2 |
| (b) The Director Commissioner is hereby authorized and | 3 |
| empowered to make such
specific rulings, demands and findings | 4 |
| as he or she may deem necessary for the
proper conduct of the | 5 |
| mortgage lending industry. | 6 |
| (c) A person or entity may make a written application to | 7 |
| the Department for a written interpretation of this Act. The | 8 |
| Department may then, in its sole discretion, choose to issue a | 9 |
| written interpretation. To be valid, a written interpretation | 10 |
| must be signed by the Secretary, or his or her designated | 11 |
| Director of Financial and Professional Regulation, and the | 12 |
| Department's General Counsel. A written interpretation expires | 13 |
| 2 years after the date that it was issued. | 14 |
| (d) No provision in this Act that imposes liability or | 15 |
| establishes violations shall apply to any act taken by a person | 16 |
| or entity in conformity with a written interpretation of this | 17 |
| Act that is in effect at the time the act is taken, | 18 |
| notwithstanding whether the written interpretation is later | 19 |
| amended, rescinded, or determined by judicial or other | 20 |
| authority to by invalid for any reason.
| 21 |
| (Source: P.A. 95-691, eff. 6-1-08.)
| 22 |
| (205 ILCS 635/4-11) (from Ch. 17, par. 2324-11)
| 23 |
| Sec. 4-11. Costs of Supervision; Examination and | 24 |
| Investigative Fees.
The expenses of administering this Act, | 25 |
| including investigations and
examinations provided for in this |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| Act shall be borne by and assessed
against entities regulated | 2 |
| by this Act. The Director Commissioner shall establish
fees by | 3 |
| regulation in at least the following categories:
| 4 |
| (1) application fees;
| 5 |
| (2) investigation of license applicant fees;
| 6 |
| (3) examination fees;
| 7 |
| (4) contingent fees;
| 8 |
| and such other categories as may be required to administer this | 9 |
| Act.
| 10 |
| (Source: P.A. 85-735.)
| 11 |
| (205 ILCS 635/4-12) (from Ch. 17, par. 2324-12)
| 12 |
| Sec. 4-12. Appeal and Review. (a) Any person or entity | 13 |
| affected by a
decision of the Director Commissioner under any | 14 |
| provision of this Act may obtain
review of such decision within | 15 |
| the Office of the Director Commissioner .
| 16 |
| (b) The Director Commissioner shall, in accordance with the | 17 |
| "Illinois
Administrative Procedure Act", promulgate rules and | 18 |
| regulations to provide
for review within the Office of the | 19 |
| Director Commissioner (hereinafter referred to
as "agency | 20 |
| review") of his or her decisions affecting the rights of | 21 |
| entities
under this Act. Such review shall provide for, at a | 22 |
| minimum:
| 23 |
| (1) appointment of a hearing officer other than a regular | 24 |
| employee of
the Office of the Director Commissioner ;
| 25 |
| (2) appropriate procedural rules, specific deadlines for |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| filings, and
standards of evidence and of proof;
| 2 |
| (3) provision for apportioning costs among parties to the | 3 |
| appeal.
| 4 |
| (c) All final agency determinations of appeals to decisions | 5 |
| of the Director
Commissioner may be reviewed in accordance with | 6 |
| and under the provisions
of the "Administrative Review Law". | 7 |
| Appeals from all final orders and
judgments entered by a court | 8 |
| in review of any final administrative decision
of the Director | 9 |
| Commissioner or of any final agency review of a decision of the | 10 |
| Director
Commissioner may be taken as in other civil cases.
| 11 |
| (Source: P.A. 85-735.)
| 12 |
| (205 ILCS 635/4-13) (from Ch. 17, par. 2324-13)
| 13 |
| Sec. 4-13. Violations of this Act; Director's | 14 |
| Commissioner's Orders. If the Director
Commissioner finds, as | 15 |
| the result of examination, investigation or review
of reports | 16 |
| submitted by a licensee that the business and affairs of a
| 17 |
| licensee are not being conducted in accordance with this Act, | 18 |
| the Director
Commissioner shall notify the licensee of the | 19 |
| correction necessary. Should
a licensee fail to correct such | 20 |
| violations, the Director Commissioner shall issue an
order | 21 |
| requiring immediate correction and compliance with this Act,
| 22 |
| specifying a reasonable date for performance.
| 23 |
| The Director Commissioner shall promulgate rules and | 24 |
| regulations to provide for an
orderly and timely appeal of all | 25 |
| orders within the Office of the Director Commissioner .
Such |
|
|
|
SB1998 Engrossed |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| rules shall include provision for assessment of fees and costs.
| 2 |
| (Source: P.A. 85-735.)
| 3 |
| (205 ILCS 635/5-1) (from Ch. 17, par. 2325-1)
| 4 |
| Sec. 5-1. The Director Commissioner may promulgate rules | 5 |
| with respect to
brokering and lending procedures of residential | 6 |
| mortgage licensees as
necessary to accomplish the purposes of | 7 |
| this Act.
| 8 |
| (Source: P.A. 85-735.)
| 9 |
| (205 ILCS 635/6-3) (from Ch. 17, par. 2326-3)
| 10 |
| Sec. 6-3. Appointment of receiver or conservator. When the | 11 |
| Director Commissioner makes
a finding that a receivership or | 12 |
| conservatorship is necessary to protect
consumers of a licensee | 13 |
| from the consequences of the licensee's failures to
comply with | 14 |
| this Act or other unsafe and unsound practices, the Director | 15 |
| Commissioner
shall request the Attorney General of this State | 16 |
| to petition the Circuit Court
of Cook County, or of the county | 17 |
| in which the licensee is located, to appoint a
receiver or | 18 |
| conservator for purposes of protecting consumers and resolving | 19 |
| the
affairs of the licensee.
| 20 |
| (Source: P.A. 87-1098.)
| 21 |
| (205 ILCS 635/7-1)
| 22 |
| Sec. 7-1. Registration required; rules and regulations. | 23 |
| Beginning 6 months
after the effective date of this amendatory |
|
|
|
SB1998 Engrossed |
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|
| 1 |
| Act of the 93rd General Assembly,
it is unlawful for any | 2 |
| natural person to act or assume to act as a loan
originator, as | 3 |
| defined in subsection (hh) of Section 1-4, without being
| 4 |
| registered with the Director Commissioner unless the natural | 5 |
| person is exempt under
items (1) and (1.5) of subsection (d) of | 6 |
| Section 1-4 of this Act. The Director
Commissioner shall | 7 |
| promulgate
rules
prescribing the criteria for the registration | 8 |
| and regulation of loan
originators, including but not limited | 9 |
| to, qualifications, fees, examination,
education, supervision, | 10 |
| and enforcement.
| 11 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 12 |
| Section 95. No acceleration or delay. Where this Act makes | 13 |
| changes in a statute that is represented in this Act by text | 14 |
| that is not yet or no longer in effect (for example, a Section | 15 |
| represented by multiple versions), the use of that text does | 16 |
| not accelerate or delay the taking effect of (i) the changes | 17 |
| made by this Act or (ii) provisions derived from any other | 18 |
| Public Act. | 19 |
| Section 950. Severability. The provisions of this Act are | 20 |
| severable under Section 1.31 of the Statute on Statutes.
| 21 |
| Section 999. Effective date. This Act takes effect January | 22 |
| 1, 2009.
|
|
|
|
SB1998 Engrossed |
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|
| 1 |
|
INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 205 ILCS 635/1-1.5 new |
|
| 4 |
| 205 ILCS 635/1-3 |
from Ch. 17, par. 2321-3 |
| 5 |
| 205 ILCS 635/1-4 |
from Ch. 17, par. 2321-4 |
| 6 |
| 205 ILCS 635/1-5 |
from Ch. 17, par. 2321-5 |
| 7 |
| 205 ILCS 635/2-2 |
from Ch. 17, par. 2322-2 |
| 8 |
| 205 ILCS 635/2-3 |
from Ch. 17, par. 2322-3 |
| 9 |
| 205 ILCS 635/2-4 |
from Ch. 17, par. 2322-4 |
| 10 |
| 205 ILCS 635/2-5 |
from Ch. 17, par. 2322-5 |
| 11 |
| 205 ILCS 635/2-6 |
from Ch. 17, par. 2322-6 |
| 12 |
| 205 ILCS 635/2-7 |
from Ch. 17, par. 2322-7 |
| 13 |
| 205 ILCS 635/2-8 |
from Ch. 17, par. 2322-8 |
| 14 |
| 205 ILCS 635/2-9 |
from Ch. 17, par. 2322-9 |
| 15 |
| 205 ILCS 635/2-11 |
from Ch. 17, par. 2322-11 |
| 16 |
| 205 ILCS 635/3-1 |
from Ch. 17, par. 2323-1 |
| 17 |
| 205 ILCS 635/3-2 |
from Ch. 17, par. 2323-2 |
| 18 |
| 205 ILCS 635/3-3 |
from Ch. 17, par. 2323-3 |
| 19 |
| 205 ILCS 635/3-4 |
from Ch. 17, par. 2323-4 |
| 20 |
| 205 ILCS 635/3-5 |
from Ch. 17, par. 2323-5 |
| 21 |
| 205 ILCS 635/3-9 |
from Ch. 17, par. 2323-9 |
| 22 |
| 205 ILCS 635/4-1 |
from Ch. 17, par. 2324-1 |
| 23 |
| 205 ILCS 635/4-2 |
from Ch. 17, par. 2324-2 |
| 24 |
| 205 ILCS 635/4-3 |
from Ch. 17, par. 2324-3 |
| 25 |
| 205 ILCS 635/4-4 |
from Ch. 17, par. 2324-4 |
|
|
|
|
SB1998 Engrossed |
- 82 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| 205 ILCS 635/4-5 |
from Ch. 17, par. 2324-5 |
| 2 |
| 205 ILCS 635/4-6 |
from Ch. 17, par. 2324-6 |
| 3 |
| 205 ILCS 635/4-8 |
from Ch. 17, par. 2324-8 |
| 4 |
| 205 ILCS 635/4-8.2 |
|
| 5 |
| 205 ILCS 635/4-8.3 |
|
| 6 |
| 205 ILCS 635/4-10 |
from Ch. 17, par. 2324-10 |
| 7 |
| 205 ILCS 635/4-11 |
from Ch. 17, par. 2324-11 |
| 8 |
| 205 ILCS 635/4-12 |
from Ch. 17, par. 2324-12 |
| 9 |
| 205 ILCS 635/4-13 |
from Ch. 17, par. 2324-13 |
| 10 |
| 205 ILCS 635/5-1 |
from Ch. 17, par. 2325-1 |
| 11 |
| 205 ILCS 635/6-3 |
from Ch. 17, par. 2326-3 |
| 12 |
| 205 ILCS 635/7-1 |
|
| |
|