Full Text of SB2566 95th General Assembly
SB2566eng 95TH GENERAL ASSEMBLY
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| AN ACT concerning foreclosure.
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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 5. The Illinois Housing Development Act is amended | 5 |
| by adding Section 7.30 as follows: | 6 |
| (20 ILCS 3805/7.30 new) | 7 |
| Sec. 7.30. Foreclosure prevention counseling program. The | 8 |
| Authority shall establish and administer a foreclosure | 9 |
| prevention counseling program. The Authority shall use moneys | 10 |
| in the Foreclosure Prevention Counseling Fund, and any other | 11 |
| funds appropriated for this purpose, to make grants to | 12 |
| HUD-certified housing counseling agencies to support | 13 |
| pre-purchase and post-purchase home-ownership education and | 14 |
| foreclosure prevention counseling activities under the | 15 |
| program. | 16 |
| Section 10. The State Finance Act is amended by adding | 17 |
| Sections 5.708 and 6z-80 as follows: | 18 |
| (30 ILCS 105/5.708 new) | 19 |
| Sec. 5.708. The Foreclosure Prevention Counseling Fund. | 20 |
| (30 ILCS 105/6z-80 new) |
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| Sec. 6z-80. The Foreclosure Prevention Counseling Fund. | 2 |
| (a) There is created in the State treasury a special fund | 3 |
| to be known as the Foreclosure Prevention Counseling Fund. All | 4 |
| moneys received by the Commissioner of Banks and Real Estate | 5 |
| from the foreclosure prevention surcharge collected under | 6 |
| subsection (c) of Section 2-2 of the Residential Mortgage | 7 |
| License Act of 1987 shall be deposited into the Fund. | 8 |
| (b) Moneys in the Fund shall be used as follows: | 9 |
| (1) 25% of the moneys in the Fund on the first day of | 10 |
| each calendar month shall be distributed as grants by the | 11 |
| Illinois Housing Development Authority to the City of | 12 |
| Chicago to provide grants to HUD-certified housing | 13 |
| counseling agencies to support pre-purchase and | 14 |
| post-purchase home-ownership education and foreclosure | 15 |
| prevention counseling activities under programs | 16 |
| administered by that city. | 17 |
| (2) The remaining moneys shall, subject to | 18 |
| appropriation, be used by the Illinois Housing Development | 19 |
| Authority as provided in Section 7.30 of the Illinois | 20 |
| Housing Development Act. | 21 |
| Section 15. The Residential Mortgage License Act of 1987 is | 22 |
| amended by changing Section 2-2 as follows:
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| (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
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| Sec. 2-2. Application process; investigation; fee.
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| (a) The Commissioner shall issue a license upon completion | 2 |
| of all of the
following:
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| (1) The filing of an application for license.
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| (2) The filing with the Commissioner of a listing of | 5 |
| judgments entered
against, and bankruptcy petitions by, | 6 |
| the license applicant for the
preceding 10 years.
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| (3) The payment, in certified funds, of
investigation | 8 |
| and application fees, the total of which shall be in an
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| amount equal to $3,200 $2,700 annually, including the | 10 |
| foreclosure prevention surcharge provided for in | 11 |
| subsection (c) of this Section; however, the Commissioner | 12 |
| may
increase the
investigation and application fees by rule | 13 |
| as provided in Section 4-11.
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| (4) Except for a broker applying to renew a license, | 15 |
| the filing of an
audited balance sheet including all | 16 |
| footnotes prepared by a certified public
accountant in | 17 |
| accordance with generally accepted accounting principles | 18 |
| and
generally accepted auditing principles which evidences | 19 |
| that the applicant meets
the net worth requirements of | 20 |
| Section 3-5.
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| (5) The filing of proof satisfactory to the | 22 |
| Commissioner that the
applicant, the members thereof if the | 23 |
| applicant is a partnership or
association, the members or | 24 |
| managers thereof that retain any authority or
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| responsibility under the operating agreement if the | 26 |
| applicant is a limited
liability company, or the officers |
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| thereof if the applicant
is a corporation have 3 years | 2 |
| experience preceding application
in real estate finance. | 3 |
| Instead of this requirement, the applicant and the
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| applicant's officers or members, as applicable, may
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| satisfactorily complete a program of education in real | 6 |
| estate finance and
fair lending, as
approved by the | 7 |
| Commissioner, prior to receiving the
initial license.
The | 8 |
| Commissioner shall promulgate rules regarding proof of | 9 |
| experience
requirements and educational requirements and | 10 |
| the satisfactory completion of
those requirements. The | 11 |
| Commissioner may establish by rule a list of duly
licensed | 12 |
| professionals and others who may be exempt from this | 13 |
| requirement.
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| (6) An investigation of the averments required by | 15 |
| Section 2-4, which
investigation must allow the | 16 |
| Commissioner to issue positive findings stating
that the | 17 |
| financial responsibility, experience, character, and | 18 |
| general fitness
of the license applicant and of the members | 19 |
| thereof if the license applicant is
a partnership or | 20 |
| association, of the officers and directors thereof if the
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| license applicant is a corporation, and of the managers and | 22 |
| members that retain
any authority or responsibility under | 23 |
| the operating agreement if the license
applicant is a | 24 |
| limited liability company are such as to command the | 25 |
| confidence
of the community and to warrant belief that the | 26 |
| business will be operated
honestly, fairly and efficiently |
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| within the purpose of this Act. If the
Commissioner shall | 2 |
| not so find, he or she shall not issue such license, and he
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| or she shall notify the license applicant of the denial. | 4 |
| The Commissioner may impose conditions on a license if the | 5 |
| Commissioner determines that the conditions are necessary or | 6 |
| appropriate. These conditions shall be imposed in writing and | 7 |
| shall continue in effect for the period prescribed by the | 8 |
| Commissioner.
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| (b) All licenses shall be issued in duplicate with one copy
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| being transmitted to the license applicant and the second being
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| retained with the Commissioner.
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| Upon receipt of such license, a residential mortgage | 13 |
| licensee shall be
authorized to engage in the business | 14 |
| regulated by this Act. Such license
shall remain in full force | 15 |
| and effect until it expires without renewal, is
surrendered by | 16 |
| the licensee or revoked or suspended as hereinafter provided.
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| (c) Any application for issuance or renewal of a license | 18 |
| for a period beginning on or after July 1, 2008, shall include | 19 |
| payment of a foreclosure prevention surcharge in the amount of | 20 |
| $500. All proceeds from the surcharge shall be deposited into | 21 |
| the Foreclosure Prevention Counseling Fund. | 22 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
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| Section 99. Effective date. This Act takes effect upon | 24 |
| becoming law.
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