Full Text of SB1603 97th General Assembly
SB1603enr 97TH GENERAL ASSEMBLY |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Residential Mortgage License Act of 1987 is | 5 | | amended by changing Sections 1-3 and 1-4 as follows: | 6 | | (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3) | 7 | | Sec. 1-3. Necessity for License; Scope of Act. | 8 | | (a) No person, partnership, association, corporation or | 9 | | other entity
shall engage in the business of brokering, | 10 | | funding, originating, servicing
or purchasing of residential | 11 | | mortgage loans without first obtaining a
license from the | 12 | | Commissioner in accordance with the licensing procedure
| 13 | | provided in this Article I and such regulations as may be | 14 | | promulgated by
the Commissioner. The licensing provisions of | 15 | | this Section shall not apply
to any entity engaged solely in | 16 | | commercial mortgage lending or
to any person, partnership | 17 | | association, corporation or other entity
exempted pursuant to | 18 | | Section 1-4, subsection (d), of this Act or in accordance
with | 19 | | regulations promulgated by the Commissioner hereunder. No | 20 | | provision of this Act shall apply to an exempt person or entity | 21 | | as defined in items (1) and (1.5) of subsection (d) of Section | 22 | | 1-4 of this Act. Notwithstanding anything to the contrary in | 23 | | the preceding sentence, an individual acting as a mortgage loan |
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| 1 | | originator who is not employed by and acting for an entity | 2 | | described in item (1) of subsection (tt) of Section 1-4 of this | 3 | | Act shall be subject to the mortgage loan originator licensing | 4 | | requirements of Article VII of this Act. | 5 | | Effective January 1, 2011, no provision of this Act shall | 6 | | apply to an exempt person or entity as defined in item (1.8) of | 7 | | subsection (d) of Section 1-4 of this Act. Notwithstanding | 8 | | anything to the contrary in the preceding sentence, an | 9 | | individual acting as a mortgage loan originator who is not | 10 | | employed by and acting for an entity described in item (1) of | 11 | | subsection (tt) of Section 1-4 of this Act shall be subject to | 12 | | the mortgage loan originator licensing requirements of Article | 13 | | VII of this Act, and provided that an individual acting as a | 14 | | mortgage loan originator under item (1.8) of subsection (d) of | 15 | | Section 1-4 of this Act shall be further subject to a | 16 | | determination by the U.S. Department of Housing and Urban | 17 | | Development through final rulemaking or other authorized | 18 | | agency determination under the federal Secure and Fair | 19 | | Enforcement for Mortgage Licensing Act of 2008. | 20 | | (b) No person, partnership, association, corporation, or | 21 | | other entity
except a licensee under this Act or an entity | 22 | | exempt from licensing
pursuant to Section 1-4, subsection (d), | 23 | | of this Act shall do any business
under any name or title, or | 24 | | circulate or use any advertising or make any
representation or | 25 | | give any information to any person, which indicates or
| 26 | | reasonably implies activity within the scope
of this Act. |
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| 1 | | (c) The Commissioner may, through the Attorney General, | 2 | | request the circuit
court of either Cook or Sangamon County to | 3 | | issue an injunction to restrain
any person from violating or | 4 | | continuing to violate any of the foregoing
provisions of this | 5 | | Section. | 6 | | (d) When the Commissioner has reasonable cause to believe | 7 | | that any
entity which has not submitted an application for | 8 | | licensure is conducting
any of the activities described in | 9 | | subsection (a) hereof, the Commissioner
shall have the power to | 10 | | examine all books and records of the entity and any
additional | 11 | | documentation necessary in order to determine whether such
| 12 | | entity should become licensed under this Act. | 13 | | (d-1) The Commissioner may issue orders against any person | 14 | | if the Commissioner has reasonable cause to believe that an | 15 | | unsafe, unsound, or unlawful practice has occurred, is | 16 | | occurring, or is about to occur, if any person has violated, is | 17 | | violating, or is about to violate any law, rule, or written | 18 | | agreement with the Commissioner, or for the purposes of | 19 | | administering the provisions of this Act and any rule adopted | 20 | | in accordance with this Act.
| 21 | | (e) Any person, partnership, association, corporation or | 22 | | other entity
who violates any provision of this Section commits | 23 | | a business offense and
shall be fined an amount not to exceed | 24 | | $25,000. | 25 | | (f) Each person, partnership, association, corporation or | 26 | | other entity
conducting activities regulated by this Act shall |
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| 1 | | be issued one license.
Each office, place of business or | 2 | | location at which a residential mortgage
licensee conducts any | 3 | | part of his or her business must
be recorded with the | 4 | | Commissioner pursuant to Section 2-8 of this Act. | 5 | | (g) Licensees under this Act shall solicit, broker, fund, | 6 | | originate,
service and purchase residential mortgage loans | 7 | | only in conformity with the
provisions of this Act and such | 8 | | rules and regulations as may be promulgated
by the | 9 | | Commissioner. | 10 | | (h) This Act applies to all entities doing business in | 11 | | Illinois as
residential mortgage bankers, as defined by "An Act | 12 | | to provide for the
regulation of mortgage bankers", approved | 13 | | September 15, 1977, as amended,
regardless of whether licensed | 14 | | under that or any prior Act. Any existing
residential mortgage | 15 | | lender or residential mortgage broker in Illinois
whether or | 16 | | not previously licensed, must operate in accordance with this | 17 | | Act. | 18 | | (i) This Act is a successor Act to and a continuance of the | 19 | | regulation
of residential mortgage bankers provided in, "An Act | 20 | | to provide for the
regulation of mortgage bankers", approved | 21 | | September 15, 1977, as amended. | 22 | | Entities and persons subject to the predecessor Act shall | 23 | | be subject to
this Act from and after its effective date. | 24 | | (Source: P.A. 96-112, eff. 7-31-09; 96-1216, eff. 1-1-11.) | 25 | | (205 ILCS 635/1-4) |
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| 1 | | Sec. 1-4. Definitions. | 2 | | (a) "Residential real property" or "residential real | 3 | | estate" shall mean any real property located in Illinois, upon | 4 | | which is constructed or intended to be constructed a dwelling. | 5 | | (b) "Making a residential mortgage loan" or "funding a | 6 | | residential mortgage
loan" shall mean for compensation or gain, | 7 | | either directly or indirectly,
advancing funds or making a | 8 | | commitment to advance funds to a loan applicant
for a | 9 | | residential mortgage loan. | 10 | | (c) "Soliciting, processing, placing, or negotiating a | 11 | | residential
mortgage loan" shall mean for compensation or gain, | 12 | | either directly or
indirectly, accepting or offering to accept | 13 | | an application for a
residential mortgage loan, assisting or | 14 | | offering to assist in the
processing of an application for a | 15 | | residential mortgage loan on behalf of a
borrower, or | 16 | | negotiating or offering to negotiate the terms or conditions
of | 17 | | a residential mortgage loan with a lender on behalf of a | 18 | | borrower
including, but not limited to, the submission of | 19 | | credit packages for the
approval of lenders, the preparation of | 20 | | residential mortgage loan closing
documents, including a | 21 | | closing in the name of a broker. | 22 | | (d) "Exempt person or entity" shall mean the following: | 23 | | (1) (i) Any banking organization or foreign banking | 24 | | corporation
licensed by the Illinois Commissioner of Banks | 25 | | and Real Estate or the
United States Comptroller of the | 26 | | Currency to transact business in this
State; (ii) any |
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| 1 | | national bank, federally chartered savings and loan
| 2 | | association, federal savings bank, federal credit union; | 3 | | (iii) any pension
trust, bank trust, or bank trust company; | 4 | | (iv) any bank, savings and loan
association, savings bank, | 5 | | or credit union organized under the laws of this
or any | 6 | | other state; (v) any Illinois Consumer Installment Loan Act | 7 | | licensee;
(vi) any insurance company authorized to | 8 | | transact business in this State;
(vii) any entity engaged | 9 | | solely in commercial mortgage lending; (viii) any
service | 10 | | corporation of a savings and loan association or savings | 11 | | bank organized
under the laws of this State or the service | 12 | | corporation of a federally
chartered savings and loan | 13 | | association or savings bank having
its principal place of | 14 | | business in this State, other than a service
corporation | 15 | | licensed or entitled to reciprocity under the Real Estate
| 16 | | License Act of 2000; or (ix) any first tier subsidiary of a
| 17 | | bank, the charter of which is issued under the Illinois | 18 | | Banking Act
by the Illinois Commissioner of Banks and Real | 19 | | Estate,
or the first tier subsidiary of a bank chartered by | 20 | | the United States
Comptroller of the Currency and that has | 21 | | its principal place of business
in this State, provided | 22 | | that the first tier subsidiary is regularly
examined by the | 23 | | Illinois Commissioner of Banks and Real Estate
or the | 24 | | Comptroller of the Currency, or a consumer compliance | 25 | | examination is
regularly conducted by the Federal Reserve | 26 | | Board. |
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| 1 | | (1.5) Any employee of a person or entity mentioned in
| 2 | | item (1) of this subsection, when acting for such person or | 3 | | entity, or any registered mortgage loan originator when | 4 | | acting for an entity described in subsection (tt) of this | 5 | | Section. | 6 | | (1.8) Any person or entity that does not originate | 7 | | mortgage loans in the ordinary course of business, but | 8 | | makes or acquires residential mortgage loans with his or | 9 | | her own funds for his or her or its own investment without | 10 | | intent to make, acquire, or resell more than 3 residential | 11 | | mortgage loans in any one calendar year. | 12 | | (2) (Blank). | 13 | | (3) Any person employed by a licensee to assist in the | 14 | | performance of
the residential mortgage licensee's | 15 | | activities regulated by this Act who is compensated in any | 16 | | manner by
only one licensee. | 17 | | (4) (Blank). | 18 | | (5) Any individual, corporation, partnership, or other | 19 | | entity that
originates, services, or brokers residential | 20 | | mortgage loans, as these
activities are defined in this | 21 | | Act, and who or which receives no
compensation for those | 22 | | activities, subject to the Commissioner's
regulations and | 23 | | the federal Secure and Fair Enforcement for Mortgage | 24 | | Licensing Act of 2008 and the rules promulgated under that | 25 | | Act with regard to the nature and amount of compensation. | 26 | | (6) (Blank). |
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| 1 | | (e) "Licensee" or "residential mortgage licensee" shall | 2 | | mean a person,
partnership, association, corporation, or any | 3 | | other entity who or which is
licensed pursuant to this Act to | 4 | | engage in the activities regulated by
this Act. | 5 | | (f) "Mortgage loan" "residential mortgage loan" or "home
| 6 | | mortgage loan" shall mean any loan primarily for personal, | 7 | | family, or household use that is secured by a mortgage, deed of | 8 | | trust, or other equivalent consensual security interest on a | 9 | | dwelling as defined in Section 103(v) of the federal Truth in | 10 | | Lending Act, or residential real estate upon which is | 11 | | constructed or intended to be constructed a dwelling. | 12 | | (g) "Lender" shall mean any person, partnership, | 13 | | association,
corporation, or any other entity who either lends | 14 | | or invests money in
residential mortgage loans. | 15 | | (h) "Ultimate equitable owner" shall mean a person who, | 16 | | directly
or indirectly, owns or controls an ownership interest | 17 | | in a corporation,
foreign corporation, alien business | 18 | | organization, trust, or any other form
of business organization | 19 | | regardless of whether the person owns or controls
the ownership | 20 | | interest through one or more persons or one or more proxies,
| 21 | | powers of attorney, nominees, corporations, associations, | 22 | | partnerships,
trusts, joint stock companies, or other entities | 23 | | or devices, or any
combination thereof. | 24 | | (i) "Residential mortgage financing transaction" shall | 25 | | mean the negotiation,
acquisition, sale, or arrangement for or | 26 | | the offer to negotiate, acquire,
sell, or arrange for, a |
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| 1 | | residential mortgage loan or residential mortgage
loan | 2 | | commitment. | 3 | | (j) "Personal residence address" shall mean a street | 4 | | address and shall
not include a post office box number. | 5 | | (k) "Residential mortgage loan commitment" shall mean a | 6 | | contract for
residential mortgage loan financing. | 7 | | (l) "Party to a residential mortgage financing | 8 | | transaction" shall mean a
borrower, lender, or loan broker in a | 9 | | residential mortgage financing
transaction. | 10 | | (m) "Payments" shall mean payment of all or any of the | 11 | | following:
principal, interest and escrow reserves for taxes, | 12 | | insurance and other related
reserves, and reimbursement for | 13 | | lender advances. | 14 | | (n) "Commissioner" shall mean the Commissioner of Banks and | 15 | | Real Estate, except that, beginning on April 6, 2009 (the | 16 | | effective date of Public Act 95-1047), all references in this | 17 | | Act to the Commissioner of Banks and Real Estate are deemed, in | 18 | | appropriate contexts, to be references to the Secretary of | 19 | | Financial and Professional Regulation, or his or her designee, | 20 | | including the Director of the Division of Banking of the | 21 | | Department of Financial and Professional Regulation. | 22 | | (n-1) "Director" shall mean the Director of the Division of | 23 | | Banking of the Department of Financial and Professional | 24 | | Regulation, except that, beginning on July 31, 2009 (the | 25 | | effective date of Public Act 96-112), all references in this | 26 | | Act to the Director are deemed, in appropriate contexts, to be |
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| 1 | | the Secretary of Financial and Professional Regulation, or his | 2 | | or her designee, including the Director of the Division of | 3 | | Banking of the Department of Financial and Professional | 4 | | Regulation. | 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 |
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| 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 proper signage; adequate,
organized, and | 16 | | accurate books and records; ample phone lines, hours of
| 17 | | business, staff training and supervision, and provision for a | 18 | | mechanism to
resolve consumer inquiries, complaints, and | 19 | | problems. The Commissioner
shall issue regulations with regard | 20 | | to these requirements and shall include
an evaluation of | 21 | | compliance with this Section in his or her periodic
examination | 22 | | of each 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. |
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| 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 |
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| 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 |
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| 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 Commissioner may define by rule and regulation any | 11 | | 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 Illinois Commissioner | 16 | | 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 |
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| 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
Commissioner that is multiplied by the average gross | 5 | | delinquency rate of
licensees, determined annually for the | 6 | | immediately preceding calendar year, for
the purpose of | 7 | | determining which licensees shall be examined by the
| 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. This definition | 14 | | applies only to Section 7-1 of this Act. | 15 | | (ii) "Confidential supervisory information" means any | 16 | | report of examination, visitation, or investigation prepared | 17 | | by the Commissioner under this Act, any report of examination | 18 | | visitation, or investigation prepared by the state regulatory | 19 | | authority of another state that examines a licensee, any | 20 | | document or record prepared or obtained in connection with or | 21 | | relating to any examination, visitation, or investigation, and | 22 | | any record prepared or obtained by the Commissioner to the | 23 | | extent that the record summarizes or contains information | 24 | | derived from any report, document, or record described in this | 25 | | subsection. "Confidential supervisory information" does not | 26 | | include any information or record routinely prepared by a |
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| 1 | | licensee and maintained in the ordinary course of business or | 2 | | any information or record that is required to be made publicly | 3 | | available pursuant to State or federal law or rule.
| 4 | | (jj) "Mortgage loan originator" means an individual who for | 5 | | compensation or gain or in the expectation of compensation or | 6 | | gain: | 7 | | (i) takes a residential mortgage loan application; or | 8 | | (ii) offers or negotiates terms of a residential | 9 | | mortgage loan. | 10 | | "Mortgage loan originator" does not include an individual | 11 | | engaged solely as a loan processor or underwriter except as | 12 | | otherwise provided in subsection (d) of Section 7-1A of this | 13 | | Act. | 14 | | "Mortgage loan originator" does not include a person or | 15 | | entity that only performs real estate brokerage activities and | 16 | | is licensed in accordance with the Real Estate License Act of | 17 | | 2000, unless the person or entity is compensated by a lender, a | 18 | | mortgage broker, or other mortgage loan originator, or by any | 19 | | agent of that lender, mortgage broker, or other mortgage loan | 20 | | originator. | 21 | | "Mortgage loan originator" does not include a person or | 22 | | entity solely involved in extensions of credit relating to | 23 | | timeshare plans, as that term is defined in Section 101(53D) of | 24 | | Title 11, United States Code. | 25 | | (kk) "Depository institution" has the same meaning as in | 26 | | Section 3 of the Federal Deposit Insurance Act, and includes |
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| 1 | | any credit union. | 2 | | (ll) "Dwelling" means a residential structure or mobile | 3 | | home which contains one to 4 family housing units, or | 4 | | individual units of condominiums or cooperatives. | 5 | | (mm) "Immediate family member" means a spouse, child, | 6 | | sibling, parent, grandparent, or grandchild, and includes | 7 | | step-parents, step-children, step-siblings, or adoptive | 8 | | relationships. | 9 | | (nn) "Individual" means a natural person. | 10 | | (oo) "Loan processor or underwriter" means an individual | 11 | | who performs clerical or support duties as an employee at the | 12 | | direction of and subject to the supervision and instruction of | 13 | | a person licensed, or exempt from licensing, under this Act. | 14 | | "Clerical or support duties" includes subsequent to the receipt | 15 | | of an application: | 16 | | (i) the receipt, collection, distribution, and | 17 | | analysis of information common for the processing or | 18 | | underwriting of a residential mortgage loan; and | 19 | | (ii) communicating with a consumer to obtain the | 20 | | information necessary for the processing or underwriting | 21 | | of a loan, to the extent that the communication does not | 22 | | include offering or negotiating loan rates or terms, or | 23 | | counseling consumers about residential mortgage loan rates | 24 | | or terms. An individual engaging solely in loan processor | 25 | | or underwriter activities shall not represent to the | 26 | | public, through advertising or other means of |
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| 1 | | communicating or providing information, including the use | 2 | | of business cards, stationery, brochures, signs, rate | 3 | | lists, or other promotional items, that the individual can | 4 | | or will perform any of the activities of a mortgage loan | 5 | | originator. | 6 | | (pp) "Nationwide Mortgage Licensing System and Registry" | 7 | | means a mortgage licensing system developed and maintained by | 8 | | the Conference of State Bank Supervisors and the American | 9 | | Association of Residential Mortgage Regulators for the | 10 | | licensing and registration of licensed mortgage loan | 11 | | originators. | 12 | | (qq) "Nontraditional mortgage product" means any mortgage | 13 | | product other than a 30-year fixed rate mortgage. | 14 | | (rr) "Person" means a natural person, corporation, | 15 | | company, limited liability company, partnership, or | 16 | | association. | 17 | | (ss) "Real estate brokerage activity" means any activity | 18 | | that involves offering or providing real estate brokerage | 19 | | services to the public, including: | 20 | | (1) acting as a real estate agent or real estate broker | 21 | | for a buyer, seller, lessor, or lessee of real property; | 22 | | (2) bringing together parties interested in the sale, | 23 | | purchase, lease, rental, or exchange of real property; | 24 | | (3) negotiating, on behalf of any party, any portion of | 25 | | a contract relating to the sale, purchase, lease, rental, | 26 | | or exchange of real property, other than in connection with |
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| 1 | | providing financing with respect to any such transaction; | 2 | | (4) engaging in any activity for which a person engaged | 3 | | in the activity is required to be registered or licensed as | 4 | | a real estate agent or real estate broker under any | 5 | | applicable law; or | 6 | | (5) offering to engage in any activity, or act in any | 7 | | capacity, described in this subsection (ss). | 8 | | (tt) "Registered mortgage loan originator" means any | 9 | | individual that: | 10 | | (1) meets the definition of mortgage loan originator | 11 | | and is an employee of: | 12 | | (A) a depository institution; | 13 | | (B) a subsidiary that is: | 14 | | (i) owned and controlled by a depository | 15 | | institution; and | 16 | | (ii) regulated by a federal banking agency; or | 17 | | (C) an institution regulated by the Farm Credit | 18 | | Administration; and | 19 | | (2) is registered with, and maintains a unique | 20 | | identifier through, the Nationwide Mortgage Licensing | 21 | | System and Registry. | 22 | | (uu) "Unique identifier" means a number or other identifier | 23 | | assigned by protocols established by the Nationwide Mortgage | 24 | | Licensing System and Registry. | 25 | | (vv) "Residential mortgage license" means a license issued | 26 | | pursuant to Section 1-3, 2-2, or 2-6 of this Act. |
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| 1 | | (ww) "Mortgage loan originator license" means a license | 2 | | issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act. | 3 | | (xx) "Secretary" means the Secretary of the Department of | 4 | | Financial and Professional Regulation, or a person authorized | 5 | | by the Secretary or by this Act to act in the Secretary's | 6 | | stead. | 7 | | (Source: P.A. 95-1047, eff. 4-6-09; 96-112, eff. 7-31-09; | 8 | | 96-1000, eff. 7-2-10; 96-1216, eff. 1-1-11.)
| 9 | | Section 99. Effective date. This Act takes effect upon | 10 | | becoming law.
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