Full Text of HB5685 98th General Assembly
HB5685enr 98TH 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 State Finance Act is amended by changing | 5 | | Sections 5.214, 5.805, and 8.12 as follows:
| 6 | | (30 ILCS 105/5.214) (from Ch. 127, par. 141.214)
| 7 | | Sec. 5.214. The Savings and Residential Finance Regulatory | 8 | | Fund. | 9 | | (Source: P.A. 85-1209; 86-1213.)
| 10 | | (30 ILCS 105/5.805)
| 11 | | Sec. 5.805. The Savings Bank Institutions Regulatory Fund. | 12 | | (Source: P.A. 97-492, eff. 1-1-12; 97-813, eff. 7-13-12.)
| 13 | | (30 ILCS 105/8.12)
(from Ch. 127, par. 144.12)
| 14 | | Sec. 8.12. State Pensions Fund.
| 15 | | (a) The moneys in the State Pensions Fund shall be used | 16 | | exclusively
for the administration of the Uniform Disposition | 17 | | of Unclaimed Property Act and
for the expenses incurred by the | 18 | | Auditor General for administering the provisions of Section | 19 | | 2-8.1 of the Illinois State Auditing Act and for the funding of | 20 | | the unfunded liabilities of the designated retirement systems. | 21 | | Beginning in State fiscal year 2015, payments to the designated |
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| 1 | | retirement systems under this Section shall be in addition to, | 2 | | and not in lieu of, any State contributions required under the | 3 | | Illinois Pension Code.
| 4 | | "Designated retirement systems" means:
| 5 | | (1) the State Employees' Retirement System of | 6 | | Illinois;
| 7 | | (2) the Teachers' Retirement System of the State of | 8 | | Illinois;
| 9 | | (3) the State Universities Retirement System;
| 10 | | (4) the Judges Retirement System of Illinois; and
| 11 | | (5) the General Assembly Retirement System.
| 12 | | (b) Each year the General Assembly may make appropriations | 13 | | from
the State Pensions Fund for the administration of the | 14 | | Uniform Disposition of
Unclaimed Property Act.
| 15 | | Each month, the Commissioner of the Office of Banks and | 16 | | Real Estate shall
certify to the State Treasurer the actual | 17 | | expenditures that the Office of
Banks and Real Estate incurred | 18 | | conducting unclaimed property examinations under
the Uniform | 19 | | Disposition of Unclaimed Property Act during the immediately
| 20 | | preceding month. Within a reasonable
time following the | 21 | | acceptance of such certification by the State Treasurer, the
| 22 | | State Treasurer shall pay from its appropriation from the State | 23 | | Pensions Fund
to the Bank and Trust Company Fund , the Savings | 24 | | Bank Regulatory Fund, and the Savings and Residential Finance
| 25 | | Regulatory Fund an amount equal to the expenditures incurred by | 26 | | each Fund for
that month.
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| 1 | | Each month, the Director of Financial Institutions shall
| 2 | | certify to the State Treasurer the actual expenditures that the | 3 | | Department of
Financial Institutions incurred conducting | 4 | | unclaimed property examinations
under the Uniform Disposition | 5 | | of Unclaimed Property Act during the immediately
preceding | 6 | | month. Within a reasonable time following the acceptance of | 7 | | such
certification by the State Treasurer, the State Treasurer | 8 | | shall pay from its
appropriation from the State Pensions Fund
| 9 | | to the Financial Institution Fund and the Credit Union Fund
an | 10 | | amount equal to the expenditures incurred by each Fund for
that | 11 | | month.
| 12 | | (c) As soon as possible after the effective date of this | 13 | | amendatory Act of the 93rd General Assembly, the General | 14 | | Assembly shall appropriate from the State Pensions Fund (1) to | 15 | | the State Universities Retirement System the amount certified | 16 | | under Section 15-165 during the prior year, (2) to the Judges | 17 | | Retirement System of Illinois the amount certified under | 18 | | Section 18-140 during the prior year, and (3) to the General | 19 | | Assembly Retirement System the amount certified under Section | 20 | | 2-134 during the prior year as part of the required
State | 21 | | contributions to each of those designated retirement systems; | 22 | | except that amounts appropriated under this subsection (c) in | 23 | | State fiscal year 2005 shall not reduce the amount in the State | 24 | | Pensions Fund below $5,000,000. If the amount in the State | 25 | | Pensions Fund does not exceed the sum of the amounts certified | 26 | | in Sections 15-165, 18-140, and 2-134 by at least $5,000,000, |
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| 1 | | the amount paid to each designated retirement system under this | 2 | | subsection shall be reduced in proportion to the amount | 3 | | certified by each of those designated retirement systems.
| 4 | | (c-5) For fiscal years 2006 through 2014, the General | 5 | | Assembly shall appropriate from the State Pensions Fund to the | 6 | | State Universities Retirement System the amount estimated to be | 7 | | available during the fiscal year in the State Pensions Fund; | 8 | | provided, however, that the amounts appropriated under this | 9 | | subsection (c-5) shall not reduce the amount in the State | 10 | | Pensions Fund below $5,000,000.
| 11 | | (c-6) For fiscal year 2015 and each fiscal year thereafter, | 12 | | as soon as may be practical after any money is deposited into | 13 | | the State Pensions Fund from the Unclaimed Property Trust Fund, | 14 | | the State Treasurer shall apportion the deposited amount among | 15 | | the designated retirement systems as defined in subsection (a) | 16 | | to reduce their actuarial reserve deficiencies. The State | 17 | | Comptroller and State Treasurer shall pay the apportioned | 18 | | amounts to the designated retirement systems to fund the | 19 | | unfunded liabilities of the designated retirement systems. The | 20 | | amount apportioned to each designated retirement system shall | 21 | | constitute a portion of the amount estimated to be available | 22 | | for appropriation from the State Pensions Fund that is the same | 23 | | as that retirement system's portion of the total actual reserve | 24 | | deficiency of the systems, as determined annually by the | 25 | | Governor's Office of Management and Budget at the request of | 26 | | the State Treasurer. The amounts apportioned under this |
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| 1 | | subsection shall not reduce the amount in the State Pensions | 2 | | Fund below $5,000,000. | 3 | | (d) The
Governor's Office of Management and Budget shall | 4 | | determine the individual and total
reserve deficiencies of the | 5 | | designated retirement systems. For this purpose,
the
| 6 | | Governor's Office of Management and Budget shall utilize the | 7 | | latest available audit and actuarial
reports of each of the | 8 | | retirement systems and the relevant reports and
statistics of | 9 | | the Public Employee Pension Fund Division of the Department of
| 10 | | Insurance.
| 11 | | (d-1) As soon as practicable after the effective date of | 12 | | this
amendatory Act of the 93rd General Assembly, the | 13 | | Comptroller shall
direct and the Treasurer shall transfer from | 14 | | the State Pensions Fund to
the General Revenue Fund, as funds | 15 | | become available, a sum equal to the
amounts that would have | 16 | | been paid
from the State Pensions Fund to the Teachers' | 17 | | Retirement System of the State
of Illinois,
the State | 18 | | Universities Retirement System, the Judges Retirement
System | 19 | | of Illinois, the
General Assembly Retirement System, and the | 20 | | State Employees'
Retirement System
of Illinois
after the | 21 | | effective date of this
amendatory Act during the remainder of | 22 | | fiscal year 2004 to the
designated retirement systems from the | 23 | | appropriations provided for in
this Section if the transfers | 24 | | provided in Section 6z-61 had not
occurred. The transfers | 25 | | described in this subsection (d-1) are to
partially repay the | 26 | | General Revenue Fund for the costs associated with
the bonds |
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| 1 | | used to fund the moneys transferred to the designated
| 2 | | retirement systems under Section 6z-61.
| 3 | | (e) The changes to this Section made by this amendatory Act | 4 | | of 1994 shall
first apply to distributions from the Fund for | 5 | | State fiscal year 1996.
| 6 | | (Source: P.A. 97-72, eff. 7-1-11; 97-732, eff. 6-30-12; 98-24, | 7 | | eff. 6-19-13; 98-463, eff. 8-16-13.)
| 8 | | Section 10. The Illinois Banking Act is amended by changing | 9 | | Section 71 as follows:
| 10 | | (205 ILCS 5/71) (from Ch. 17, par. 383)
| 11 | | Sec. 71. Voluntary dissolution; fees and expenses | 12 | | Commissioner's fee . | 13 | | (a) Any bank that elects to dissolve voluntarily under this | 14 | | Act shall pay to the Secretary a fee, which shall be paid upon | 15 | | the Secretary's receipt of the bank's statement of intent. The | 16 | | Secretary shall prescribe by rule the amount of such fee. | 17 | | (b) All expenses incurred by the Secretary in connection | 18 | | with the voluntary dissolution of any bank shall be paid by the | 19 | | dissolving State bank. The expenses incurred under this | 20 | | subsection shall be deemed to be a liability of the dissolving | 21 | | bank. | 22 | | The Commissioner shall be entitled to a fee, which shall be | 23 | | paid at the
time of deposit, on all money deposited with him | 24 | | for the account of one
dissolving bank of two per cent of the |
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| 1 | | first five thousand dollars and one
per cent of all sums in | 2 | | excess of five thousand dollars.
| 3 | | (Source: Laws 1965, p. 2020.)
| 4 | | (205 ILCS 105/Act rep.)
| 5 | | Section 15. The Illinois Savings and Loan Act of 1985 is | 6 | | repealed. | 7 | | Section 20. The Savings Bank Act is amended by changing | 8 | | Sections 1007.130, 4008, 9002, and 9002.5 and by adding | 9 | | Sections 1007.150 and 9002.1 and Articles 12.1 and 12.2 as | 10 | | follows: | 11 | | (205 ILCS 205/1007.130)
| 12 | | Sec. 1007.130. Out-of-state savings bank. "Out-of-state | 13 | | savings bank" means a savings bank or an association chartered | 14 | | under the laws of a state other than Illinois, a territory of | 15 | | the United States, or the District of Columbia.
| 16 | | (Source: P.A. 93-965, eff. 8-20-04.) | 17 | | (205 ILCS 205/1007.150 new) | 18 | | Sec. 1007.150. Applicability of other Acts. Whenever the | 19 | | term "savings and loan", "building and loan", "mutual building | 20 | | loan and homestead", or "building loan and homestead" or other | 21 | | similar name is used with reference to an association organized | 22 | | for the purposes of associations incorporated under the |
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| 1 | | Illinois Savings and Loan Act of 1985 or a similar Act, such | 2 | | reference shall be applicable to a savings bank operating under | 3 | | this Act. Whenever in any Act the term "members", | 4 | | "shareholders", or "investors" is used in connection with such | 5 | | associations, however named, the same shall refer to members | 6 | | and holders of capital of savings banks operating under this | 7 | | Act.
| 8 | | (205 ILCS 205/4008) (from Ch. 17, par. 7304-8)
| 9 | | Sec. 4008. Directors. The business and affairs of the | 10 | | savings bank shall
be exercised by its elected board of | 11 | | directors. The board of directors
shall consist of the number | 12 | | of directors fixed by the bylaws, but shall not
be fewer than | 13 | | 5. No more than 40% of the directors shall be salaried
| 14 | | employees of the savings bank, except that a higher percentage | 15 | | may be allowed
with the prior written approval of the | 16 | | Commissioner. At least two-thirds of
the directors shall
be | 17 | | residents of this State.
| 18 | | (Source: P.A. 90-301, eff. 8-1-97.)
| 19 | | (205 ILCS 205/9002) (from Ch. 17, par. 7309-2)
| 20 | | Sec. 9002. Powers of Secretary. The Secretary shall have | 21 | | the following
powers and duties:
| 22 | | (1) To exercise the rights, powers, and duties set | 23 | | forth in
this Act or in any related Act.
| 24 | | (2) To establish regulations as may be reasonable or
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| 1 | | necessary to accomplish the purposes of this Act.
| 2 | | (3) To make an annual report regarding the work of his
| 3 | | office under this Act as he may consider desirable to the
| 4 | | Governor, or as the Governor may request.
| 5 | | (4) To cause a suit to be filed in his name to enforce
| 6 | | any law of this State that applies to savings banks, their | 7 | | service
corporations, subsidiaries, affiliates, or holding | 8 | | companies
operating under this Act, including the | 9 | | enforcement of any
obligation of the officers, directors, | 10 | | agents, or employees of any
savings bank.
| 11 | | (5) To prescribe a uniform manner in which the books | 12 | | and
records of every savings bank are to be maintained.
| 13 | | (6) To establish a reasonable fee
structure for savings | 14 | | banks and holding companies operating under
this Act and | 15 | | for their service corporations and subsidiaries.
The fees | 16 | | shall include, but not be limited to, annual fees,
| 17 | | application fees, regular and special examination fees, | 18 | | and other
fees as the Secretary establishes and | 19 | | demonstrates to be
directly resultant from the Secretary's | 20 | | responsibilities under
this Act and as are directly | 21 | | attributable to individual entities
operating under this | 22 | | Act. The aggregate of all moneys collected by
the Secretary | 23 | | on and after the effective date of this Act shall
be paid | 24 | | promptly after receipt of the same, accompanied by a
| 25 | | detailed statement thereof, into the Savings Bank | 26 | | Regulatory Fund established under Section 9002.1 of this |
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| 1 | | Act. Savings and Residential Finance Regulatory
Fund | 2 | | subject to the provisions of Section 7-19.1 of the Illinois | 3 | | Savings and Loan Act of 1985 including without limitation | 4 | | the provision for credits against regulatory fees. The | 5 | | amounts deposited into the Fund shall be used for the | 6 | | ordinary and
contingent expenses of the Office of Banks and | 7 | | Real Estate. Notwithstanding any other provision of this | 8 | | paragraph (6), the aggregate of all moneys collected by the | 9 | | Secretary under this Act shall be paid promptly after | 10 | | receipt of same, accompanied by a detailed statement | 11 | | thereof, into the Savings Institutions Regulatory Fund | 12 | | upon the creation of that fund under Section 7-19.2 of the | 13 | | Illinois Savings and Loan Act of 1985, subject to the | 14 | | provisions of Section 7-19.2 of the Illinois Savings and | 15 | | Loan Act of 1985, including without limitation the | 16 | | provision for credits against regulatory fees. The amounts | 17 | | deposited into the Savings Institutions Regulatory Fund | 18 | | under this paragraph (6) shall be used for the ordinary and | 19 | | contingent expenses of administering and enforcing this | 20 | | Act. Nothing
in this Act shall prevent continuing the | 21 | | practice of paying expenses involving
salaries, | 22 | | retirement, social security, and State-paid insurance of | 23 | | State
officers by appropriation from the General Revenue | 24 | | Fund. The Secretary may require payment of the fees under | 25 | | this Act by an electronic transfer of funds or an automatic | 26 | | debit of an account of each of the savings banks.
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| 1 | | (Source: P.A. 96-1365, eff. 7-28-10; 97-492, eff. 1-1-12.)
| 2 | | (205 ILCS 205/9002.1 new) | 3 | | Sec. 9002.1. Savings Bank Regulatory Fund. | 4 | | (a) The aggregate of all moneys collected by the Secretary | 5 | | under this Act shall be paid promptly after receipt of the | 6 | | same, accompanied by a detailed statement thereof, into the | 7 | | State treasury and shall be set apart in the Savings Bank | 8 | | Regulatory Fund. All earnings received from investments of | 9 | | funds in the Savings Bank Regulatory Fund shall be deposited | 10 | | into the Savings Bank Regulatory Fund and may be used for the | 11 | | same purposes as fees deposited into the Savings Bank | 12 | | Regulatory Fund. The amount from time to time deposited into | 13 | | the Fund shall be used (i) to offset the ordinary | 14 | | administration expenses as defined in subsection (c) of this | 15 | | Section or (ii) as a credit against fees under subsection (b) | 16 | | of this Section. Nothing in this Section shall prevent | 17 | | continuing the practice of paying expenses involving salaries, | 18 | | retirement, Social Security, and State paid insurance premiums | 19 | | of State officers by appropriation from the General Revenue | 20 | | Fund. However, the General Revenue Fund shall be reimbursed for | 21 | | those payments made by an annual transfer of funds from the | 22 | | Savings Bank Regulatory Fund. Money in the Savings Bank | 23 | | Regulatory Fund may be transferred to the Professions Indirect | 24 | | Cost Fund as authorized under Section 2105-300 of the | 25 | | Department of Professional Regulation Law of the Civil |
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| 1 | | Administrative Code of Illinois. | 2 | | (b) Adequate funds shall be available in the Savings Bank | 3 | | Regulatory Fund to permit the timely payment of administration | 4 | | expenses. In each fiscal year, the total administration | 5 | | expenses shall be deducted from the total fees collected by the | 6 | | Secretary and the remainder transferred into the Cash Flow | 7 | | Reserve Account, unless the balance of the Cash Flow Reserve | 8 | | Account prior to the transfer equals or exceeds one-fourth of | 9 | | the total initial appropriations from the Savings Bank | 10 | | Regulatory Fund for the subsequent year, in which case the | 11 | | remainder shall be credited to savings banks and applied | 12 | | against their fees for the subsequent year. The amount credited | 13 | | to each savings bank shall be in the same proportion as the | 14 | | regulatory fees paid by each for the year bear to the total | 15 | | regulatory fees collected for the year. If, after a transfer to | 16 | | the Cash Flow Reserve Account is made or if no remainder is | 17 | | available for transfer, the balance of the Cash Flow Reserve | 18 | | Account is less than one-fourth of the total initial | 19 | | appropriations for the subsequent year and the amount | 20 | | transferred is less than 5% of the total regulatory fees for | 21 | | the year, additional amounts needed to make the transfer equal | 22 | | to 5% of the total regulatory fees for the year shall be | 23 | | apportioned amongst, assessed upon, and paid by savings banks | 24 | | in the same proportion that the regulatory fees of each, | 25 | | respectively, for the year bear to the total regulatory fees | 26 | | collected for the year. The additional amounts assessed shall |
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| 1 | | be transferred into the Cash Flow Reserve Account. | 2 | | (c) For purposes of this Section, the following terms shall | 3 | | have the following meanings: | 4 | | "Administration expenses", for any fiscal year, means the | 5 | | ordinary and contingent expenses for that year incident to | 6 | | making the examinations provided for by, and for otherwise | 7 | | administering, this Act, including all salaries and other | 8 | | compensation paid for personal services rendered for the State | 9 | | by officers or employees of the State, including the Secretary | 10 | | and the Director of the Division, communication equipment and | 11 | | services, office furnishings, surety bond premiums, and travel | 12 | | expenses of those officers and employees, expenditures or | 13 | | charges for the acquisition, enlargement or improvement of, or | 14 | | for the use of, any office space, building, or structure, or | 15 | | expenditures for the maintenance thereof or for furnishing | 16 | | heat, light, or power with respect thereto, all to the extent | 17 | | that those expenditures are directly incidental to such | 18 | | examinations or administration. The Secretary shall not be | 19 | | required by this subsection to maintain in any fiscal year's | 20 | | budget appropriated reserves for accrued vacation and accrued | 21 | | sick leave that is required to be paid to employees of the | 22 | | Secretary upon termination of their service with the Secretary | 23 | | in an amount that is more than is reasonably anticipated to be | 24 | | necessary for any anticipated turnover in employees, whether | 25 | | due to normal attrition or due to layoffs, terminations, or | 26 | | resignations. |
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| 1 | | "Regulatory fees" includes both fees collected under | 2 | | Section 9002.5 and fees collected for examinations conducted by | 3 | | the Secretary or his examiners or designees under authority of | 4 | | this Act. | 5 | | "Fiscal year" means a period beginning July 1 of any year | 6 | | and ending June 30 of the next year. | 7 | | (205 ILCS 205/9002.5)
| 8 | | Sec. 9002.5. Regulatory fees. | 9 | | (a) For the fiscal year beginning July 1, 2007 and every | 10 | | year thereafter, each savings bank and each service corporation | 11 | | operating under this Act shall pay a fixed fee of $520, plus a | 12 | | variable fee based on the total assets of the savings bank or | 13 | | service corporation at the following rates: | 14 | | 24.97˘ per $1,000 of the first $2,000,000 of total | 15 | | assets; | 16 | | 22.70˘ per $1,000 of the next $3,000,000 of total | 17 | | assets; | 18 | | 20.43˘ per $1,000 of the next $5,000,000 of total | 19 | | assets; | 20 | | 17.025˘ per $1,000 of the next $15,000,000 of total | 21 | | assets; | 22 | | 14.755˘ per $1,000 of the next $25,000,000 of total | 23 | | assets; | 24 | | 12.485˘ per $1,000 of the next $50,000,000 of total | 25 | | assets; |
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| 1 | | 10.215˘ per $1,000 of the next $400,000,000 of total | 2 | | assets; | 3 | | 6.81˘ per $1,000 of the next $500,000,000 of total | 4 | | assets; and | 5 | | 4.54˘ per $1,000 of all total assets in excess of | 6 | | $1,000,000,000 of such savings bank or service | 7 | | corporation. | 8 | | (b) The Secretary shall receive and there shall be paid to | 9 | | the Secretary an additional fee as an adjustment to the | 10 | | supervisory fee, based upon the difference between the total | 11 | | assets of each savings bank and each service corporation as | 12 | | shown by its financial report filed with the Secretary for the | 13 | | reporting period of the calendar year ended December 31 on | 14 | | which the supervisory fee was based and the total assets of | 15 | | each savings bank and each service corporation as shown by its | 16 | | financial report filed with the Secretary for the reporting | 17 | | period of the calendar year ended December 31 in which the | 18 | | quarterly payments are made according to the following | 19 | | schedule: | 20 | | 24.97˘ per $1,000 of the first $2,000,000 of total | 21 | | assets; | 22 | | 22.70˘ per $1,000 of the next $3,000,000 of total | 23 | | assets; | 24 | | 20.43˘ per $1,000 of the next $5,000,000 of total | 25 | | assets; | 26 | | 17.025˘ per $1,000 of the next $15,000,000 of total |
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| 1 | | assets; | 2 | | 14.755˘ per $1,000 of the next $25,000,000 of total | 3 | | assets; | 4 | | 12.485˘ per $1,000 of the next $50,000,000 of total | 5 | | assets; | 6 | | 10.215˘ per $1,000 of the next $400,000,000 of total | 7 | | assets; | 8 | | 6.81˘ per $1,000 of the next $500,000,000 of total | 9 | | assets; and | 10 | | 4.54˘ per $1,000 of all total assets in excess of | 11 | | $1,000,000,000 of such savings bank or service | 12 | | corporation. | 13 | | (c) The Secretary shall receive and there shall be paid to | 14 | | the Secretary by each savings bank and each service corporation | 15 | | a fee of $520 for each approved branch office or facility | 16 | | office established under the Illinois Administrative Code. The | 17 | | determination of the fees shall be made annually as of the | 18 | | close of business of the prior calendar year ended December 31.
| 19 | | (d) The Secretary shall receive for each fiscal year, | 20 | | commencing with the fiscal year ending June 30, 2014, a | 21 | | contingent fee equal to the lesser of the aggregate of the fees | 22 | | paid by all savings banks under subsections (a), (b), and (c) | 23 | | of this Section for that year, or the amount, if any, whereby | 24 | | the aggregate of the administration expenses, as defined in | 25 | | subsection (c) of Section 9002.1 of this Act, for that fiscal | 26 | | year exceeds the sum of the aggregate of the fees payable by |
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| 1 | | all savings banks for that year under subsections (a), (b), and | 2 | | (c) of this Section, plus any amounts transferred into the | 3 | | Savings Bank Regulatory Fund from the State Pensions Fund for | 4 | | that year, plus all other amounts collected by the Secretary | 5 | | for that year under any other provision of this Act. The | 6 | | aggregate amount of the contingent fee thus arrived at for any | 7 | | fiscal year shall be apportioned amongst, assessed upon, and | 8 | | paid by the savings banks, respectively, in the same proportion | 9 | | that the fee of each under subsections (a), (b), and (c) of | 10 | | this Section, respectively, for that year bears to the | 11 | | aggregate for that year of the fees collected under subsections | 12 | | (a), (b), and (c) of this Section. The aggregate amount of the | 13 | | contingent fee, and the portion thereof to be assessed upon | 14 | | each savings bank, respectively, shall be determined by the | 15 | | Secretary and shall be paid by each, respectively, within 120 | 16 | | days of the close of the period for which the contingent fee is | 17 | | computed and is payable, and the Secretary shall give 20 days | 18 | | advance notice of the amount of the contingent fee payable by | 19 | | the savings bank and of the date fixed by the Secretary for | 20 | | payment of the fee. | 21 | | (Source: P.A. 95-1047, eff. 4-6-09.) | 22 | | (205 ILCS 205/Art. 12.1 heading new) | 23 | | ARTICLE 12.1. Effect of Repeal of Illinois | 24 | | Savings and Loan Act of 1985 |
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| 1 | | (205 ILCS 205/12101 new) | 2 | | Sec. 12101. Effect of repeal. This Article sets forth the | 3 | | effect of and means of transition necessitated by the repeal of | 4 | | the Illinois Savings and Loan Act of 1985. | 5 | | (205 ILCS 205/12102 new) | 6 | | Sec. 12102. Effect on special funds. | 7 | | (a) The Savings and Residential Finance Regulatory Fund | 8 | | established under Section 7-19.1 of the Illinois Savings and | 9 | | Loan Act of 1985 is hereby redesignated the Residential Finance | 10 | | Regulatory Fund. The fund shall continue in existence under the | 11 | | Illinois Residential Mortgage License Act of 1987 without | 12 | | interruption and shall retain all moneys therein, except moneys | 13 | | required to be transferred or returned from Savings and | 14 | | Residential Finance Regulatory Fund, now designated the | 15 | | Residential Finance Regulatory Fund, to the Savings | 16 | | Institutions Regulatory Fund, now designated the Savings Bank | 17 | | Regulatory Fund, pursuant to subsection (e) of Section 7-19.2 | 18 | | of the Illinois Savings and Loan Act of 1985, shall continue to | 19 | | be required to be transferred or returned to the Savings | 20 | | Institutions Regulatory Fund, now designated the Savings Bank | 21 | | Regulatory Fund, as if subsection (e) of Section 7-19.2 of the | 22 | | Illinois Savings and Loan Act of 1985 had not been repealed. | 23 | | (b) The Savings Institutions Regulatory Fund established | 24 | | under Section 7-19.2 of the Illinois Savings and Loan Act of | 25 | | 1985 is hereby redesignated the Savings Bank Regulatory Fund. |
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| 1 | | The fund shall continue in existence under Section 9002.1 of | 2 | | this Act without interruption and shall retain all moneys | 3 | | therein. | 4 | | (205 ILCS 205/12103 new) | 5 | | Sec. 12103. Effect on foreign associations. | 6 | | (a) Any existing foreign association shall be deemed to be | 7 | | an out-of-state savings bank under this Act. | 8 | | (b) Notwithstanding any other provision of this Act, an | 9 | | existing foreign association may retain any branch or office in | 10 | | the State that properly existed in the State at the time of the | 11 | | repeal of the Illinois Savings and Loan Act of 1985, and | 12 | | continue to engage in the same activities in the State | 13 | | therefrom as were engaged in immediately prior to the repeal of | 14 | | the Illinois Savings and Loan Act, without further application | 15 | | or notice to or approval of the Secretary. | 16 | | (c) An existing foreign association may retain a | 17 | | representative office in the State that properly existed in the | 18 | | State at the time of the repeal of the Illinois Savings and | 19 | | Loan Act of 1985, provided that the foreign association obtains | 20 | | a license under the Foreign Bank Representative Office Act. | 21 | | (205 ILCS 205/12104 new) | 22 | | Sec. 12104. Effect on the Board of Savings Institutions. | 23 | | The Board of Savings Institutions is hereby redesignated as the | 24 | | Board of Savings Banks. The Board shall continue to operate |
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| 1 | | without interruption and as if it had been originally | 2 | | established under Article 12.2 of this Act. The current members | 3 | | of the Board of Savings Institutions shall continue to serve | 4 | | the balance of their terms. Thereafter, the Board of Savings | 5 | | Institutions shall be composed of members as required by | 6 | | Section 12202 of this Act. | 7 | | (205 ILCS 205/12105 new) | 8 | | Sec. 12105. Applicability of other Acts. Whenever in any | 9 | | Act the term "savings and loan", "building and loan", "mutual | 10 | | building loan and homestead", or "building loan and homestead" | 11 | | or other similar name is used with reference to an association | 12 | | organized for the purposes of associations incorporated under | 13 | | the Illinois Savings and Loan Act of 1985 or a similar Act, | 14 | | such reference shall be applicable to a savings bank operating | 15 | | under this Act. Whenever in any Act the term "members", | 16 | | "shareholders", or "investors" is used in connection with such | 17 | | associations, however named, the same shall refer to members | 18 | | and holders of capital of savings banks operating under this | 19 | | Act. | 20 | | (205 ILCS 205/Art. 12.2 heading new) | 21 | | ARTICLE 12.2. Board of Savings Banks | 22 | | (205 ILCS 205/12201 new) | 23 | | Sec. 12201. Board of Savings Banks; appointment. The Board |
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| 1 | | of Savings Bank is established pursuant to Section 12104 of | 2 | | this Act. The Board of Savings Banks shall be composed of the | 3 | | Director of Banking, who shall be its chairperson and have the | 4 | | power to vote, and 7 persons appointed by the Governor. Two of | 5 | | the 7 persons appointed by the Governor shall represent the | 6 | | public interest and the remainder shall have been engaged | 7 | | actively in savings bank or savings and loan management in this | 8 | | State for at least 5 years immediately prior to appointment. | 9 | | Each member of the Board appointed by the Governor shall be | 10 | | reimbursed for ordinary and necessary expenses incurred in | 11 | | attending the meetings of the Board. Members, excluding the | 12 | | chairperson, shall be appointed for 4-year terms to expire on | 13 | | the third Monday in January. Except as otherwise provided in | 14 | | this Section, members of the Board shall serve until their | 15 | | respective successors are appointed and qualified. A member who | 16 | | tenders a written resignation shall serve only until the | 17 | | resignation is accepted by the chairperson. A member who fails | 18 | | to attend 3 consecutive Board meetings without an excused | 19 | | absence shall no longer serve as a member. The Governor shall | 20 | | fill any vacancy by the appointment of a member for the | 21 | | unexpired term in the same manner as in the making of original | 22 | | appointments. | 23 | | (205 ILCS 205/12202 new) | 24 | | Sec. 12202. Board of Savings Banks; organization and | 25 | | meetings. The Board shall elect a vice chairperson and |
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| 1 | | secretary of the Board; shall adopt by-laws for the holding and | 2 | | conducting of meetings and appointing officers and committees; | 3 | | and shall keep a record of all meetings and transactions and | 4 | | make such other provisions for the daily conduct of its | 5 | | business as it deems necessary. A majority of the members of | 6 | | the Board, excluding those members who are no longer serving as | 7 | | members as provided in Section 12201 of this Act, shall | 8 | | constitute a quorum. The act of the majority of the members of | 9 | | the Board present at a meeting at which a quorum is present | 10 | | shall be the act of the Board. Regular meetings shall be held | 11 | | as provided in the by-laws, and special meetings may be called | 12 | | by the chairperson or upon the request of any 3 members of the | 13 | | Board or the Secretary. The Board shall maintain at the office | 14 | | of the Secretary permanent records of its meetings, hearings, | 15 | | and decisions. The Secretary shall provide adequate quarters | 16 | | and personnel for use by the Board. | 17 | | (205 ILCS 205/12203 new) | 18 | | Sec. 12203. Board of Savings Banks; powers. The Board shall | 19 | | have the power to: | 20 | | (a) advise the Governor and Secretary on all matters | 21 | | relating to the regulation of savings banks; and | 22 | | (b) advise the Governor on legislation proposed to amend | 23 | | this Act or any related Act.
| 24 | | (205 ILCS 205/1007.70 rep.) |
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| 1 | | (205 ILCS 205/9017 rep.) | 2 | | Section 25. The Savings Bank Act is amended by repealing | 3 | | Sections 1007.70 and 9017. | 4 | | Section 30. The Residential Mortgage License Act of 1987 is | 5 | | amended by changing Sections 1-4, 2-2, 2-4, 3-2, and 4-1 and by | 6 | | adding Section 4-1.5 as follows: | 7 | | (205 ILCS 635/1-4) | 8 | | Sec. 1-4. Definitions. | 9 | | (a) "Residential real property" or "residential real | 10 | | estate" shall mean any real property located in Illinois, upon | 11 | | which is constructed or intended to be constructed a dwelling. | 12 | | (b) "Making a residential mortgage loan" or "funding a | 13 | | residential mortgage
loan" shall mean for compensation or gain, | 14 | | either directly or indirectly,
advancing funds or making a | 15 | | commitment to advance funds to a loan applicant
for a | 16 | | residential mortgage loan. | 17 | | (c) "Soliciting, processing, placing, or negotiating a | 18 | | residential
mortgage loan" shall mean for compensation or gain, | 19 | | either directly or
indirectly, accepting or offering to accept | 20 | | an application for a
residential mortgage loan, assisting or | 21 | | offering to assist in the
processing of an application for a | 22 | | residential mortgage loan on behalf of a
borrower, or | 23 | | negotiating or offering to negotiate the terms or conditions
of | 24 | | a residential mortgage loan with a lender on behalf of a |
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| 1 | | borrower
including, but not limited to, the submission of | 2 | | credit packages for the
approval of lenders, the preparation of | 3 | | residential mortgage loan closing
documents, including a | 4 | | closing in the name of a broker. | 5 | | (d) "Exempt person or entity" shall mean the following: | 6 | | (1) (i) Any banking organization or foreign banking | 7 | | corporation
licensed by the Illinois Commissioner of Banks | 8 | | and Real Estate or the
United States Comptroller of the | 9 | | Currency to transact business in this
State; (ii) any | 10 | | national bank, federally chartered savings and loan
| 11 | | association, federal savings bank, federal credit union; | 12 | | (iii) (blank); any pension
trust, bank trust, or bank trust | 13 | | company; (iv) any bank, savings and loan
association, | 14 | | savings bank, or credit union organized under the laws of | 15 | | this
or any other state; (v) any Illinois Consumer | 16 | | Installment Loan Act licensee;
(vi) any insurance company | 17 | | authorized to transact business in this State;
(vii) any | 18 | | entity engaged solely in commercial mortgage lending; | 19 | | (viii) any
service corporation of a savings and loan | 20 | | association or savings bank organized
under the laws of | 21 | | this State or the service corporation of a federally
| 22 | | chartered savings and loan association or savings bank | 23 | | having
its principal place of business in this State, other | 24 | | than a service
corporation licensed or entitled to | 25 | | reciprocity under the Real Estate
License Act of 2000; or | 26 | | (ix) any first tier subsidiary of a
bank, the charter of |
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| 1 | | which is issued under the Illinois Banking Act
by the | 2 | | Illinois Commissioner of Banks and Real Estate,
or the | 3 | | first tier subsidiary of a bank chartered by the United | 4 | | States
Comptroller of the Currency and that has its | 5 | | principal place of business
in this State, provided that | 6 | | the first tier subsidiary is regularly
examined by the | 7 | | Illinois Commissioner of Banks and Real Estate
or the | 8 | | Comptroller of the Currency, or a consumer compliance | 9 | | examination is
regularly conducted by the Federal Reserve | 10 | | Board. | 11 | | (1.5) Any employee of a person or entity mentioned in
| 12 | | item (1) of this subsection, when acting for such person or | 13 | | entity, or any registered mortgage loan originator when | 14 | | acting for an entity described in subsection (tt) of this | 15 | | Section. | 16 | | (1.8) Any person or entity that does not originate | 17 | | mortgage loans in the ordinary course of business, but | 18 | | makes or acquires residential mortgage loans with his or | 19 | | her own funds for his or her or its own investment without | 20 | | intent to make, acquire, or resell more than 3 residential | 21 | | mortgage loans in any one calendar year. | 22 | | (2) (Blank). | 23 | | (3) Any person employed by a licensee to assist in the | 24 | | performance of
the residential mortgage licensee's | 25 | | activities regulated by this Act who is compensated in any | 26 | | manner by
only one licensee. |
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| 1 | | (4) (Blank). | 2 | | (5) Any individual, corporation, partnership, or other | 3 | | entity that
originates, services, or brokers residential | 4 | | mortgage loans, as these
activities are defined in this | 5 | | Act, and who or which receives no
compensation for those | 6 | | activities, subject to the Commissioner's
regulations and | 7 | | the federal Secure and Fair Enforcement for Mortgage | 8 | | Licensing Act of 2008 and the rules promulgated under that | 9 | | Act with regard to the nature and amount of compensation. | 10 | | (6) (Blank). | 11 | | (e) "Licensee" or "residential mortgage licensee" shall | 12 | | mean a person,
partnership, association, corporation, or any | 13 | | other entity who or which is
licensed pursuant to this Act to | 14 | | engage in the activities regulated by
this Act. | 15 | | (f) "Mortgage loan" "residential mortgage loan" or "home
| 16 | | mortgage loan" shall mean any loan primarily for personal, | 17 | | family, or household use that is secured by a mortgage, deed of | 18 | | trust, or other equivalent consensual security interest on a | 19 | | dwelling as defined in Section 103(v) of the federal Truth in | 20 | | Lending Act, or residential real estate upon which is | 21 | | constructed or intended to be constructed a dwelling. | 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 |
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| 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) "Commissioner" shall mean the Commissioner of Banks and | 25 | | Real Estate, except that, beginning on April 6, 2009 (the | 26 | | effective date of Public Act 95-1047), all references in this |
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| 1 | | Act to the Commissioner of Banks and Real Estate are deemed, in | 2 | | appropriate contexts, to be references to the Secretary of | 3 | | Financial and Professional Regulation, or his or her designee, | 4 | | including the Director of the Division of Banking of the | 5 | | Department of Financial and Professional Regulation. | 6 | | (n-1) "Director" shall mean the Director of the Division of | 7 | | Banking of the Department of Financial and Professional | 8 | | Regulation, except that, beginning on July 31, 2009 (the | 9 | | effective date of Public Act 96-112), all references in this | 10 | | Act to the Director are deemed, in appropriate contexts, to be | 11 | | the Secretary of Financial and Professional Regulation, or his | 12 | | or her designee, including the Director of the Division of | 13 | | Banking of the Department of Financial and Professional | 14 | | Regulation. | 15 | | (o) "Loan brokering", "brokering", or "brokerage service" | 16 | | shall mean the act
of helping to obtain from another entity, | 17 | | for a borrower, a loan secured by
residential real estate | 18 | | situated in Illinois or assisting a borrower in
obtaining a | 19 | | loan secured by residential real estate situated in Illinois in
| 20 | | return for consideration to be paid by either the borrower or | 21 | | the lender
including, but not limited to, contracting for the | 22 | | delivery of residential
mortgage loans to a third party lender | 23 | | and soliciting, processing, placing,
or negotiating | 24 | | residential mortgage loans. | 25 | | (p) "Loan broker" or "broker" shall mean a person, | 26 | | partnership,
association, corporation, or limited liability |
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| 1 | | company, other than
those persons, partnerships,
associations, | 2 | | corporations, or limited liability companies exempted
from | 3 | | licensing pursuant to Section
1-4, subsection (d), of this Act, | 4 | | who performs the activities described
in subsections (c), (o), | 5 | | and (yy) of this Section. | 6 | | (q) "Servicing" shall mean the collection or remittance for | 7 | | or the
right or obligation to collect or remit for any lender, | 8 | | noteowner,
noteholder, or for a licensee's own account, of | 9 | | payments, interests,
principal, and trust items such as hazard | 10 | | insurance and taxes on a
residential mortgage loan in | 11 | | accordance with the terms of the residential
mortgage loan; and | 12 | | includes loan payment follow-up, delinquency loan
follow-up, | 13 | | loan analysis and any notifications to the borrower that are
| 14 | | necessary to enable the borrower to keep the loan current and | 15 | | in good standing. "Servicing" includes management of | 16 | | third-party entities acting on behalf of a residential mortgage | 17 | | licensee for the collection of delinquent payments and the use | 18 | | by such third-party entities of said licensee's servicing | 19 | | records or information, including their use in foreclosure. | 20 | | (r) "Full service office" shall mean an office, provided by | 21 | | the licensee and not subleased from the licensee's employees, | 22 | | and staff in Illinois
reasonably adequate to handle efficiently | 23 | | communications, questions, and
other matters relating to any | 24 | | application for, or an existing home mortgage
secured by | 25 | | residential real estate situated in Illinois
with respect to | 26 | | which the licensee is brokering, funding originating,
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| 1 | | purchasing, or servicing. The management and operation of each | 2 | | full service
office must include observance of good business | 3 | | practices such as proper signage; adequate,
organized, and | 4 | | accurate books and records; ample phone lines, hours of
| 5 | | business, staff training and supervision, and provision for a | 6 | | mechanism to
resolve consumer inquiries, complaints, and | 7 | | problems. The Commissioner
shall issue regulations with regard | 8 | | to these requirements and shall include
an evaluation of | 9 | | compliance with this Section in his or her periodic
examination | 10 | | of each licensee. | 11 | | (s) "Purchasing" shall mean the purchase of conventional or
| 12 | | government-insured mortgage loans secured by residential real | 13 | | estate
situated in Illinois from either the lender or from the | 14 | | secondary market. | 15 | | (t) "Borrower" shall mean the person or persons who seek | 16 | | the services of
a loan broker, originator, or lender. | 17 | | (u) "Originating" shall mean the issuing of commitments for | 18 | | and funding of
residential mortgage loans. | 19 | | (v) "Loan brokerage agreement" shall mean a written | 20 | | agreement in which a
broker or loan broker agrees to do either | 21 | | of the following: | 22 | | (1) obtain a residential mortgage loan for the borrower | 23 | | or assist the
borrower in obtaining a residential mortgage | 24 | | loan; or | 25 | | (2) consider making a residential mortgage loan to the | 26 | | borrower. |
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| 1 | | (w) "Advertisement" shall mean the attempt by publication,
| 2 | | dissemination, or circulation to induce, directly or | 3 | | indirectly,
any person to enter into a residential mortgage | 4 | | loan agreement or
residential mortgage loan brokerage | 5 | | agreement relative to a
mortgage secured by residential real | 6 | | estate situated in Illinois. | 7 | | (x) "Residential Mortgage Board" shall mean the | 8 | | Residential Mortgage
Board created in Section 1-5 of this Act. | 9 | | (y) "Government-insured mortgage loan" shall mean any | 10 | | mortgage loan made
on the security of residential real estate | 11 | | insured by the Department of
Housing and Urban Development or | 12 | | Farmers Home Loan Administration, or
guaranteed by the Veterans | 13 | | Administration. | 14 | | (z) "Annual audit" shall mean a certified audit of the | 15 | | licensee's books and
records and systems of internal control | 16 | | performed by a certified public
accountant in accordance with | 17 | | generally accepted accounting principles
and generally | 18 | | accepted auditing standards. | 19 | | (aa) "Financial institution" shall mean a savings and loan
| 20 | | association, savings bank, credit union, or a bank organized | 21 | | under the
laws of Illinois or a savings and loan association, | 22 | | savings bank,
credit union or a bank organized under the laws | 23 | | of the United States and
headquartered in Illinois. | 24 | | (bb) "Escrow agent" shall mean a third party, individual or | 25 | | entity
charged with the fiduciary obligation for holding escrow | 26 | | funds on a
residential mortgage loan pending final payout of |
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| 1 | | those funds
in accordance with the terms of the residential | 2 | | mortgage loan. | 3 | | (cc) "Net worth" shall have the meaning ascribed thereto in | 4 | | Section 3-5
of this Act. | 5 | | (dd) "Affiliate" shall mean: | 6 | | (1) any entity that directly controls or is controlled | 7 | | by the licensee
and any other company that is directly | 8 | | affecting activities regulated by
this Act that is | 9 | | controlled by the company that controls the licensee; | 10 | | (2) any entity: | 11 | | (A) that is controlled, directly or indirectly, by | 12 | | a trust or otherwise,
by or for the benefit of | 13 | | shareholders who beneficially or otherwise
control, | 14 | | directly or indirectly, by trust or otherwise, the | 15 | | licensee or any
company that controls the licensee; or | 16 | | (B) a majority of the directors or trustees of | 17 | | which constitute a
majority of the persons holding any | 18 | | such office with the licensee or any
company that | 19 | | controls the licensee; | 20 | | (3) any company, including a real estate investment | 21 | | trust, that is
sponsored and advised on a contractual basis | 22 | | by the licensee or any
subsidiary or affiliate of the | 23 | | licensee. | 24 | | The Commissioner may define by rule and regulation any | 25 | | terms used
in this Act for the efficient and clear | 26 | | administration of this Act. |
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| 1 | | (ee) "First tier subsidiary" shall be defined by regulation
| 2 | | incorporating the comparable definitions used by the Office of | 3 | | the
Comptroller of the Currency and the Illinois Commissioner | 4 | | of Banks
and Real Estate. | 5 | | (ff) "Gross delinquency rate" means the quotient | 6 | | determined by dividing
(1) the sum of (i) the number of | 7 | | government-insured residential mortgage loans
funded or | 8 | | purchased by a licensee in the preceding calendar year that are
| 9 | | delinquent and (ii) the number of conventional residential | 10 | | mortgage loans
funded or purchased by the licensee in the | 11 | | preceding calendar year that are
delinquent by (2) the sum of | 12 | | (i) the number of government-insured residential
mortgage | 13 | | loans funded or purchased by the licensee in the preceding | 14 | | calendar
year and (ii) the number of conventional residential | 15 | | mortgage loans funded or
purchased by the licensee in the | 16 | | preceding calendar year. | 17 | | (gg) "Delinquency rate factor" means the factor set by rule | 18 | | of the
Commissioner that is multiplied by the average gross | 19 | | delinquency rate of
licensees, determined annually for the | 20 | | immediately preceding calendar year, for
the purpose of | 21 | | determining which licensees shall be examined by the
| 22 | | Commissioner pursuant to subsection (b) of Section 4-8 of this | 23 | | Act. | 24 | | (hh) "Loan originator" means any natural person who, for | 25 | | compensation or in
the expectation of compensation, either | 26 | | directly or indirectly makes, offers to
make, solicits, places, |
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| 1 | | or negotiates a residential mortgage loan. This definition | 2 | | applies only to Section 7-1 of this Act. | 3 | | (ii) "Confidential supervisory information" means any | 4 | | report of examination, visitation, or investigation prepared | 5 | | by the Commissioner under this Act, any report of examination | 6 | | visitation, or investigation prepared by the state regulatory | 7 | | authority of another state that examines a licensee, any | 8 | | document or record prepared or obtained in connection with or | 9 | | relating to any examination, visitation, or investigation, and | 10 | | any record prepared or obtained by the Commissioner to the | 11 | | extent that the record summarizes or contains information | 12 | | derived from any report, document, or record described in this | 13 | | subsection. "Confidential supervisory information" does not | 14 | | include any information or record routinely prepared by a | 15 | | licensee and maintained in the ordinary course of business or | 16 | | any information or record that is required to be made publicly | 17 | | available pursuant to State or federal law or rule.
| 18 | | (jj) "Mortgage loan originator" means an individual who for | 19 | | compensation or gain or in the expectation of compensation or | 20 | | gain: | 21 | | (i) takes a residential mortgage loan application; or | 22 | | (ii) offers or negotiates terms of a residential | 23 | | mortgage loan. | 24 | | "Mortgage loan originator" includes an individual engaged | 25 | | in loan modification activities as defined in subsection (yy) | 26 | | of this Section. A mortgage loan originator engaged in loan |
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| 1 | | modification activities shall report those activities to the | 2 | | Department of Financial and Professional Regulation in the | 3 | | manner provided by the Department; however, the Department | 4 | | shall not impose a fee for reporting, nor require any | 5 | | additional qualifications to engage in those activities beyond | 6 | | those provided pursuant to this Act for mortgage loan | 7 | | originators. | 8 | | "Mortgage loan originator" does not include an individual | 9 | | engaged solely as a loan processor or underwriter except as | 10 | | otherwise provided in subsection (d) of Section 7-1A of this | 11 | | Act. | 12 | | "Mortgage loan originator" does not include a person or | 13 | | entity that only performs real estate brokerage activities and | 14 | | is licensed in accordance with the Real Estate License Act of | 15 | | 2000, unless the person or entity is compensated by a lender, a | 16 | | mortgage broker, or other mortgage loan originator, or by any | 17 | | agent of that lender, mortgage broker, or other mortgage loan | 18 | | originator. | 19 | | "Mortgage loan originator" does not include a person or | 20 | | entity solely involved in extensions of credit relating to | 21 | | timeshare plans, as that term is defined in Section 101(53D) of | 22 | | Title 11, United States Code. | 23 | | (kk) "Depository institution" has the same meaning as in | 24 | | Section 3 of the Federal Deposit Insurance Act, and includes | 25 | | any credit union. | 26 | | (ll) "Dwelling" means a residential structure or mobile |
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| 1 | | home which contains one to 4 family housing units, or | 2 | | individual units of condominiums or cooperatives. | 3 | | (mm) "Immediate family member" means a spouse, child, | 4 | | sibling, parent, grandparent, or grandchild, and includes | 5 | | step-parents, step-children, step-siblings, or adoptive | 6 | | relationships. | 7 | | (nn) "Individual" means a natural person. | 8 | | (oo) "Loan processor or underwriter" means an individual | 9 | | who performs clerical or support duties as an employee at the | 10 | | direction of and subject to the supervision and instruction of | 11 | | a person licensed, or exempt from licensing, under this Act. | 12 | | "Clerical or support duties" includes subsequent to the receipt | 13 | | of an application: | 14 | | (i) the receipt, collection, distribution, and | 15 | | analysis of information common for the processing or | 16 | | underwriting of a residential mortgage loan; and | 17 | | (ii) communicating with a consumer to obtain the | 18 | | information necessary for the processing or underwriting | 19 | | of a loan, to the extent that the communication does not | 20 | | include offering or negotiating loan rates or terms, or | 21 | | counseling consumers about residential mortgage loan rates | 22 | | or terms. An individual engaging solely in loan processor | 23 | | or underwriter activities shall not represent to the | 24 | | public, through advertising or other means of | 25 | | communicating or providing information, including the use | 26 | | of business cards, stationery, brochures, signs, rate |
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| 1 | | lists, or other promotional items, that the individual can | 2 | | or will perform any of the activities of a mortgage loan | 3 | | originator. | 4 | | (pp) "Nationwide Mortgage Licensing System and Registry" | 5 | | means a mortgage licensing system developed and maintained by | 6 | | the Conference of State Bank Supervisors and the American | 7 | | Association of Residential Mortgage Regulators for the | 8 | | licensing and registration of licensed mortgage loan | 9 | | originators. | 10 | | (qq) "Nontraditional mortgage product" means any mortgage | 11 | | product other than a 30-year fixed rate mortgage. | 12 | | (rr) "Person" means a natural person, corporation, | 13 | | company, limited liability company, partnership, or | 14 | | association. | 15 | | (ss) "Real estate brokerage activity" means any activity | 16 | | that involves offering or providing real estate brokerage | 17 | | services to the public, including: | 18 | | (1) acting as a real estate agent or real estate broker | 19 | | for a buyer, seller, lessor, or lessee of real property; | 20 | | (2) bringing together parties interested in the sale, | 21 | | purchase, lease, rental, or exchange of real property; | 22 | | (3) negotiating, on behalf of any party, any portion of | 23 | | a contract relating to the sale, purchase, lease, rental, | 24 | | or exchange of real property, other than in connection with | 25 | | providing financing with respect to any such transaction; | 26 | | (4) engaging in any activity for which a person engaged |
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| 1 | | in the activity is required to be registered or licensed as | 2 | | a real estate agent or real estate broker under any | 3 | | applicable law; or | 4 | | (5) offering to engage in any activity, or act in any | 5 | | capacity, described in this subsection (ss). | 6 | | (tt) "Registered mortgage loan originator" means any | 7 | | individual that: | 8 | | (1) meets the definition of mortgage loan originator | 9 | | and is an employee of: | 10 | | (A) a depository institution; | 11 | | (B) a subsidiary that is: | 12 | | (i) owned and controlled by a depository | 13 | | institution; and | 14 | | (ii) regulated by a federal banking agency; or | 15 | | (C) an institution regulated by the Farm Credit | 16 | | Administration; and | 17 | | (2) is registered with, and maintains a unique | 18 | | identifier through, the Nationwide Mortgage Licensing | 19 | | System and Registry. | 20 | | (uu) "Unique identifier" means a number or other identifier | 21 | | assigned by protocols established by the Nationwide Mortgage | 22 | | Licensing System and Registry. | 23 | | (vv) "Residential mortgage license" means a license issued | 24 | | pursuant to Section 1-3, 2-2, or 2-6 of this Act. | 25 | | (ww) "Mortgage loan originator license" means a license | 26 | | issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act. |
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| 1 | | (xx) "Secretary" means the Secretary of the Department of | 2 | | Financial and Professional Regulation, or a person authorized | 3 | | by the Secretary or by this Act to act in the Secretary's | 4 | | stead. | 5 | | (yy) "Loan modification" means, for compensation or gain, | 6 | | either directly or indirectly offering or negotiating on behalf | 7 | | of a borrower or homeowner to adjust the terms of a residential | 8 | | mortgage loan in a manner not provided for in the original or | 9 | | previously modified mortgage loan. | 10 | | (zz) "Short sale facilitation" means, for compensation or | 11 | | gain, either directly or indirectly offering or negotiating on | 12 | | behalf of a borrower or homeowner to facilitate the sale of | 13 | | residential real estate subject to one or more residential | 14 | | mortgage loans or debts constituting liens on the property in | 15 | | which the proceeds from selling the residential real estate | 16 | | will fall short of the amount owed and the lien holders are | 17 | | contacted to agree to release their lien on the residential | 18 | | real estate and accept less than the full amount owed on the | 19 | | debt. | 20 | | (Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10; | 21 | | 96-1216, eff. 1-1-11; 97-143, eff. 7-14-11; 97-891, eff. | 22 | | 8-3-12.)
| 23 | | (205 ILCS 635/2-2)
| 24 | | Sec. 2-2. Application process; investigation; fee.
| 25 | | (a) The Secretary shall issue a license upon completion of |
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| 1 | | all of the
following:
| 2 | | (1) The filing of an application for license with the | 3 | | Director or the Nationwide Mortgage Licensing System and | 4 | | Registry as approved by the Director.
| 5 | | (2) The filing with the Secretary of a listing of | 6 | | judgments entered
against, and bankruptcy petitions by, | 7 | | the license applicant for the
preceding 10 years.
| 8 | | (3) The payment, in certified funds, of
investigation | 9 | | and application fees, the total of which shall be in an
| 10 | | amount equal to $2,700 annually. To comply with the common | 11 | | renewal date and requirements of the Nationwide Mortgage | 12 | | Licensing System and Registry, the term of initial licenses | 13 | | may be extended or shortened with applicable fees prorated | 14 | | or combined accordingly.
| 15 | | (4) Except for a broker applying to renew a license, | 16 | | the filing of an
audited balance sheet including all | 17 | | footnotes prepared by a certified public
accountant in | 18 | | accordance with generally accepted accounting principles | 19 | | and
generally accepted auditing standards principles which | 20 | | evidences that the applicant meets
the net worth | 21 | | requirements of Section 3-5. Notwithstanding the | 22 | | requirements of this subsection, an applicant that is a | 23 | | subsidiary may submit audited consolidated financial | 24 | | statements of its parent, intermediary parent, or ultimate | 25 | | parent as long as the consolidated statements are supported | 26 | | by consolidating statements which include the applicant's |
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| 1 | | financial statement. If the consolidating statements are | 2 | | unaudited, the applicant's chief financial officer shall | 3 | | attest to the applicant's financial statements disclosed | 4 | | in the consolidating statements.
| 5 | | (5) The filing of proof satisfactory to the | 6 | | Commissioner that the
applicant, the members thereof if the | 7 | | applicant is a partnership or
association, the members or | 8 | | managers thereof that retain any authority or
| 9 | | responsibility under the operating agreement if the | 10 | | applicant is a limited
liability company, or the officers | 11 | | thereof if the applicant
is a corporation have 3 years | 12 | | experience preceding application
in real estate finance. | 13 | | Instead of this requirement, the applicant and the
| 14 | | applicant's officers or members, as applicable, may
| 15 | | satisfactorily complete a program of education in real | 16 | | estate finance and
fair lending, as
approved by the | 17 | | Commissioner, prior to receiving the
initial license.
The | 18 | | Commissioner shall promulgate rules regarding proof of | 19 | | experience
requirements and educational requirements and | 20 | | the satisfactory completion of
those requirements. The | 21 | | Commissioner may establish by rule a list of duly
licensed | 22 | | professionals and others who may be exempt from this | 23 | | requirement.
| 24 | | (6) An investigation of the averments required by | 25 | | Section 2-4, which
investigation must allow the | 26 | | Commissioner to issue positive findings stating
that the |
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| 1 | | financial responsibility, experience, character, and | 2 | | general fitness
of the license applicant and of the members | 3 | | thereof if the license applicant is
a partnership or | 4 | | association, of the officers and directors thereof if the
| 5 | | license applicant is a corporation, and of the managers and | 6 | | members that retain
any authority or responsibility under | 7 | | the operating agreement if the license
applicant is a | 8 | | limited liability company are such as to command the | 9 | | confidence
of the community and to warrant belief that the | 10 | | business will be operated
honestly, fairly and efficiently | 11 | | within the purpose of this Act. If the
Commissioner shall | 12 | | not so find, he or she shall not issue such license, and he
| 13 | | or she shall notify the license applicant of the denial. | 14 | | The Commissioner may impose conditions on a license if the | 15 | | Commissioner determines that the conditions are necessary or | 16 | | appropriate. These conditions shall be imposed in writing and | 17 | | shall continue in effect for the period prescribed by the | 18 | | Commissioner.
| 19 | | (b) All licenses shall be issued to the license applicant.
| 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. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10; | 26 | | 97-891, eff. 8-3-12.)
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| 1 | | (205 ILCS 635/2-4) (from Ch. 17, par. 2322-4)
| 2 | | Sec. 2-4. Averments of Licensee. Each application for | 3 | | license or for the
renewal of a license shall be accompanied by | 4 | | the following averments stating
that the applicant:
| 5 | | (a) Will maintain at least one full service office | 6 | | within the
State of Illinois pursuant to Section 3-4 of | 7 | | this Act;
| 8 | | (b) Will maintain staff reasonably adequate to meet the | 9 | | requirements of
Section 3-4 of this Act;
| 10 | | (c) Will keep and maintain for 36 months the same | 11 | | written records
as required by the federal Equal Credit | 12 | | Opportunity Act, and any other
information required by | 13 | | regulations of the Commissioner regarding any home
| 14 | | mortgage in the course of the conduct of its residential | 15 | | mortgage business;
| 16 | | (d) Will file with the Commissioner or Nationwide | 17 | | Mortgage Licensing System and Registry as applicable, when | 18 | | due, any report or reports
which it is required to file | 19 | | under any of the provisions of this Act;
| 20 | | (e) Will not engage, whether as principal or agent, in | 21 | | the practice of
rejecting residential mortgage | 22 | | applications without reasonable cause, or
varying terms or | 23 | | application procedures without reasonable cause, for home
| 24 | | mortgages on real estate within any specific geographic | 25 | | area from the terms
or procedures generally provided by the |
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| 1 | | licensee within other geographic
areas of the State;
| 2 | | (f) Will not engage in fraudulent home mortgage | 3 | | underwriting practices;
| 4 | | (g) Will not make payment, whether directly or | 5 | | indirectly, of any kind
to any in house or fee appraiser of | 6 | | any government or private money lending
agency with which | 7 | | an application for a home mortgage has been filed for the
| 8 | | purpose of influencing the independent judgment of the | 9 | | appraiser with respect
to the value of any real estate | 10 | | which is to be covered by such home mortgage;
| 11 | | (h) Has filed tax returns (State and Federal) for the | 12 | | past 3
years or filed with the Commissioner an accountant's | 13 | | or attorney's
statement as to why no return was filed;
| 14 | | (i) Will not engage in any discrimination or redlining | 15 | | activities
prohibited by Section 3-8 of this Act;
| 16 | | (j) Will not knowingly make any false promises likely | 17 | | to influence or
persuade, or pursue a course of | 18 | | misrepresentation and false promises
through agents, | 19 | | solicitors, advertising or otherwise;
| 20 | | (k) Will not knowingly misrepresent, circumvent or | 21 | | conceal, through
whatever subterfuge or device, any of the | 22 | | material particulars or the
nature thereof, regarding a | 23 | | transaction to which it is a party to the
injury of another | 24 | | party thereto;
| 25 | | (l) Will disburse funds in accordance with its | 26 | | agreements;
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| 1 | | (m) Has not committed a crime against the law of this | 2 | | State, any other
state or of the United States, involving | 3 | | moral turpitude, fraudulent or
dishonest dealing, and that | 4 | | no final judgment has been entered against it in
a civil | 5 | | action upon grounds of fraud, misrepresentation or deceit | 6 | | which has
not been previously reported to the Commissioner;
| 7 | | (n) Will account or deliver to the owner upon request | 8 | | any personal property such as
money, fund, deposit, check, | 9 | | draft, mortgage, other document or thing of
value which it | 10 | | is not in law or equity entitled to retain under the
| 11 | | circumstances;
| 12 | | (o) Has not engaged in any conduct which would be cause | 13 | | for denial of a
license;
| 14 | | (p) Has not become insolvent;
| 15 | | (q) Has not submitted an application for a license | 16 | | under this Act which
contains a material misstatement;
| 17 | | (r) Has not demonstrated by course of conduct, | 18 | | negligence or incompetence
in performing any act for which | 19 | | it is required to hold a license under this
Act;
| 20 | | (s) Will advise the Commissioner in writing, or the | 21 | | Nationwide Mortgage Licensing System and Registry as | 22 | | applicable, of any changes to the
information submitted on | 23 | | the most recent application for license or averments of | 24 | | record within 30
days of said change. The written notice | 25 | | must be signed in the same form as
the application for | 26 | | license being amended;
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| 1 | | (t) Will comply with the provisions of this Act, or | 2 | | with any lawful
order, rule or regulation made or issued | 3 | | under the provisions of this Act;
| 4 | | (u) Will submit to periodic examination by the | 5 | | Commissioner as required
by this Act;
| 6 | | (v) Will advise the Commissioner in writing of | 7 | | judgments entered
against, and bankruptcy petitions by, | 8 | | the license applicant within 5
days of occurrence;
| 9 | | (w) Will advise the Commissioner in writing within 30 | 10 | | days of any request made to a licensee under this Act to | 11 | | repurchase a loan in a manner that completely and clearly | 12 | | identifies to whom the request was made, the loans | 13 | | involved, and the reason therefor;
| 14 | | (x) Will advise the Commissioner in writing within 30 | 15 | | days of any request from any entity to repurchase a loan in | 16 | | a manner that completely and clearly identifies to whom the | 17 | | request was made, the loans involved, and the reason for | 18 | | the request;
| 19 | | (y) Will at all times act in a manner consistent with | 20 | | subsections (a) and
(b) of Section 1-2 of this Act;
| 21 | | (z) Will not knowingly hire or employ a loan originator | 22 | | who is
not registered, or mortgage loan originator who is | 23 | | not licensed, with the Commissioner as required under | 24 | | Section 7-1 or Section 7-1A, as applicable, of this Act;
| 25 | | (aa) Will not charge or collect advance payments from | 26 | | borrowers or homeowners for engaging in loan modification; |
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| 1 | | and | 2 | | (bb) Will not structure activities or contracts to | 3 | | evade provisions of this Act. | 4 | | A licensee who fails to fulfill obligations of an averment, | 5 | | to comply with
averments made, or otherwise violates any of the | 6 | | averments made under this
Section shall be subject to the | 7 | | penalties in Section 4-5 of this Act.
| 8 | | (Source: P.A. 96-112, eff. 7-31-09; 97-891, eff. 8-3-12.)
| 9 | | (205 ILCS 635/3-2) (from Ch. 17, par. 2323-2)
| 10 | | Sec. 3-2. Annual audit.
| 11 | | (a) At the licensee's fiscal year-end, but in no
case more | 12 | | than 12 months after the last audit conducted pursuant to this
| 13 | | Section, except as otherwise provided in this Section, it shall | 14 | | be
mandatory for each residential mortgage licensee to
cause | 15 | | its books and accounts to be audited by a certified public | 16 | | accountant
not connected with such licensee. The books and | 17 | | records of all licensees
under this Act shall be maintained on | 18 | | an accrual basis. The audit must be
sufficiently comprehensive | 19 | | in scope to permit
the expression of an opinion on the | 20 | | financial statements, which must be
prepared in accordance with | 21 | | generally accepted accounting principles, and
must be | 22 | | performed in accordance with generally accepted auditing | 23 | | standards. Notwithstanding
the requirements of this | 24 | | subsection, a licensee that is a first tier subsidiary
may | 25 | | submit audited consolidated financial statements of its |
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| 1 | | parent , intermediary parent, or ultimate parent as long as
the | 2 | | consolidated statements are supported by consolidating | 3 | | statements which include the licensee's financial statement. | 4 | | If the consolidating statements are unaudited, the . The
| 5 | | licensee's chief financial officer shall attest to the | 6 | | licensee's financial
statements disclosed in the consolidating | 7 | | statements.
| 8 | | (b) As used herein, the term "expression of opinion" | 9 | | includes either
(1) an unqualified opinion, (2) a qualified | 10 | | opinion, (3) a disclaimer of
opinion, or (4) an adverse | 11 | | opinion.
| 12 | | (c) If a qualified or adverse opinion is expressed or if an | 13 | | opinion is
disclaimed, the reasons therefore must be fully | 14 | | explained. An opinion,
qualified as to a scope limitation, | 15 | | shall not be acceptable.
| 16 | | (d) The most recent audit report shall be filed with the
| 17 | | Commissioner within 90 days after the end of the licensee's | 18 | | fiscal year, or with the Nationwide Mortgage Licensing System | 19 | | and Registry, if applicable, pursuant to Mortgage Call Report | 20 | | requirements. The report
filed with the Commissioner shall be | 21 | | certified by the certified public
accountant conducting the | 22 | | audit. The Commissioner may promulgate rules
regarding late | 23 | | audit reports.
| 24 | | (e) If any licensee required to make an audit shall fail to | 25 | | cause an
audit to be made, the Commissioner shall cause the | 26 | | same to be made by a
certified public accountant at the |
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| 1 | | licensee's expense. The Commissioner
shall select such | 2 | | certified public accountant by advertising for bids or
by such | 3 | | other fair and impartial means as he or she establishes by | 4 | | regulation.
| 5 | | (f) In lieu of the audit or compilation financial statement
| 6 | | required by this Section, a licensee shall submit and the | 7 | | Commissioner may
accept any audit made in conformance with the | 8 | | audit
requirements of the U.S. Department of Housing and Urban | 9 | | Development.
| 10 | | (g) With respect to licensees who solely broker residential | 11 | | mortgage
loans as defined in subsection (o) of Section 1-4, | 12 | | instead of the audit
required by this Section, the Commissioner | 13 | | may
accept
compilation financial statements prepared at least | 14 | | every 12 months, and
the compilation financial statement must | 15 | | be submitted within 90 days after the end of
the licensee's | 16 | | fiscal year, or with the Nationwide Mortgage Licensing System | 17 | | and Registry, if applicable, pursuant to Mortgage Call Report | 18 | | requirements. If a
licensee
under this Section fails to file a | 19 | | compilation as required, the Commissioner
shall cause an audit | 20 | | of the licensee's books and accounts to be made by a
certified | 21 | | public accountant at the licensee's expense. The Commissioner | 22 | | shall
select the certified public accountant by advertising for | 23 | | bids or by such other
fair and impartial means as he or she | 24 | | establishes by rule. A licensee who
files false or misleading | 25 | | compilation financial statements is guilty of a
business | 26 | | offense and shall be fined not less than $5,000.
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| 1 | | (h) The workpapers of the certified public accountants | 2 | | employed
by each
licensee for purposes of this Section are to | 3 | | be made available to the
Commissioner or the Commissioner's | 4 | | designee upon request and may be
reproduced by the Commissioner | 5 | | or the Commissioner's designee to enable to
the Commissioner to | 6 | | carry out the purposes of this Act.
| 7 | | (i) Notwithstanding any other provision of this Section, if | 8 | | a licensee
relying on subsection (g) of this Section causes its | 9 | | books to be audited at any
other time or causes its financial | 10 | | statements to be reviewed, a complete copy
of the audited or | 11 | | reviewed financial statements shall be delivered to the
| 12 | | Commissioner at the time of the annual license renewal payment | 13 | | following
receipt by the licensee of the audited or reviewed | 14 | | financial statements. All workpapers shall be made available to | 15 | | the
Commissioner upon request. The financial statements and | 16 | | workpapers may be
reproduced by the Commissioner or the | 17 | | Commissioner's designee to carry out the
purposes of this Act.
| 18 | | (Source: P.A. 97-813, eff. 7-13-12; 97-891, eff. 8-3-12; | 19 | | 98-463, eff. 8-16-13.)
| 20 | | (205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| 21 | | Sec. 4-1. Commissioner of Banks and Real Estate; functions, | 22 | | powers, and duties. The functions,
powers, and duties of the | 23 | | Commissioner of Banks and Real Estate shall include the | 24 | | following:
| 25 | | (a) to issue or refuse to issue any license as provided |
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| 1 | | by this Act;
| 2 | | (b) to revoke or suspend for cause any license issued | 3 | | under this Act;
| 4 | | (c) to keep records of all licenses issued under this | 5 | | Act;
| 6 | | (d) to receive, consider, investigate, and act upon | 7 | | complaints made by
any person in connection with any | 8 | | residential mortgage licensee in this State;
| 9 | | (e) to consider and act upon any recommendations from | 10 | | the Residential
Mortgage Board;
| 11 | | (f) to prescribe the forms of and receive:
| 12 | | (1) applications for licenses; and
| 13 | | (2) all reports and all books and records required | 14 | | to be made by
any licensee under this Act, including | 15 | | annual audited financial statements
and annual reports | 16 | | of mortgage activity;
| 17 | | (g) to adopt rules and regulations necessary and proper | 18 | | for the
administration of this Act;
| 19 | | (h) to subpoena documents and witnesses and compel | 20 | | their attendance and
production, to administer oaths, and | 21 | | to require the production of any books,
papers, or other | 22 | | materials relevant to any inquiry authorized by this Act;
| 23 | | (h-1) to issue orders against any person, if the | 24 | | Commissioner has reasonable cause to believe that an | 25 | | unsafe, unsound, or unlawful practice has occurred, is | 26 | | occurring, or is about to occur, if any person has |
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| 1 | | violated, is violating, or is about to violate any law, | 2 | | rule, or written agreement with the Commissioner, or for | 3 | | the purpose of administering the provisions of this Act and | 4 | | any rule adopted in accordance with the Act; | 5 | | (h-2) to address any inquiries to any licensee, or the | 6 | | officers thereof, in relation to its activities and | 7 | | conditions, or any other matter connected with its affairs, | 8 | | and it shall be the duty of any licensee or person so | 9 | | addressed, to promptly reply in writing to such inquiries. | 10 | | The Commissioner may also require reports from any licensee | 11 | | at any time the Commissioner may deem desirable;
| 12 | | (i) to require information with regard to any license | 13 | | applicant
as he or she may deem desirable, with due regard | 14 | | to the paramount interests
of the public as to the | 15 | | experience, background, honesty, truthfulness,
integrity, | 16 | | and competency of the license applicant as to financial
| 17 | | transactions involving primary or subordinate mortgage | 18 | | financing, and where
the license applicant is an entity | 19 | | other than an individual, as to the
honesty, truthfulness, | 20 | | integrity, and competency of any officer or director
of the | 21 | | corporation, association, or other entity, or the members | 22 | | of a
partnership;
| 23 | | (j) to examine the books and records of every licensee | 24 | | under this Act at
intervals as specified in Section 4-2;
| 25 | | (k) to enforce provisions of this Act;
| 26 | | (l) to levy fees, fines, and charges for services |
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| 1 | | performed in administering
this Act; the aggregate of all | 2 | | fees collected by the Commissioner on and after
the | 3 | | effective date of this Act shall be paid promptly after | 4 | | receipt of the
same, accompanied by a detailed statement | 5 | | thereof, into the Savings and
Residential Finance | 6 | | Regulatory Fund under Section 4-1.5 of this Act ; the | 7 | | amounts deposited into that Fund shall
be used for the | 8 | | ordinary and contingent expenses of the Office of Banks and
| 9 | | Real Estate. Nothing in this Act shall prevent continuing | 10 | | the practice of paying
expenses involving salaries, | 11 | | retirement, social security, and State-paid
insurance of | 12 | | State officers by appropriation from the General Revenue | 13 | | Fund.
| 14 | | (m) to appoint examiners, supervisors, experts, and | 15 | | special assistants as
needed to effectively and | 16 | | efficiently administer this Act;
| 17 | | (n) to conduct hearings for the purpose of:
| 18 | | (1) appeals of orders of the Commissioner;
| 19 | | (2) suspensions or revocations of licenses, or | 20 | | fining of licensees;
| 21 | | (3) investigating:
| 22 | | (i) complaints against licensees; or
| 23 | | (ii) annual gross delinquency rates; and
| 24 | | (4) carrying out the purposes of this Act;
| 25 | | (o) to exercise exclusive visitorial power over a | 26 | | licensee unless otherwise authorized by this Act or as |
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| 1 | | vested in the courts, or upon prior consultation with the | 2 | | Commissioner, a foreign residential mortgage regulator | 3 | | with an appropriate supervisory interest in the parent or | 4 | | affiliate of a licensee;
| 5 | | (p) to enter into cooperative agreements with state | 6 | | regulatory authorities of other states to provide for | 7 | | examination of corporate offices or branches of those | 8 | | states and to accept reports of such examinations;
| 9 | | (q) to assign an examiner or examiners to monitor the | 10 | | affairs of a licensee with whatever frequency the | 11 | | Commissioner determines appropriate and to charge the | 12 | | licensee for reasonable and necessary expenses of the | 13 | | Commissioner, if in the opinion of the Commissioner an | 14 | | emergency exists or appears likely to occur;
| 15 | | (r) to impose civil penalties of up to $50 per day | 16 | | against a licensee for failing to respond to a regulatory | 17 | | request or reporting requirement; and
| 18 | | (s) to enter into agreements in connection with the | 19 | | Nationwide Mortgage Licensing System and Registry. | 20 | | (Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10.)
| 21 | | (205 ILCS 635/4-1.5 new) | 22 | | Sec. 4-1.5. Residential Finance Regulatory Fund. | 23 | | (a) The aggregate of all moneys collected by the Secretary | 24 | | under this Act shall be paid promptly after receipt of the | 25 | | same, accompanied by a detailed statement thereof, into the |
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| 1 | | State treasury and shall be set apart in the Residential | 2 | | Finance Regulatory Fund, formerly designated the Savings and | 3 | | Residential Finance Regulatory Fund, a special fund created in | 4 | | the State treasury. The amounts deposited into the Fund shall | 5 | | be used for the ordinary and contingent expenses of the | 6 | | Department of Financial and Professional Regulation and the | 7 | | Division of Banking, or their successors, in administering and | 8 | | enforcing the Residential Mortgage License Act of 1987 and | 9 | | other laws, rules, and regulations as may apply to the | 10 | | administration and enforcement of the foregoing laws, rules, | 11 | | and regulations, as amended from time to time. Nothing in this | 12 | | Act shall prevent continuing the practice of paying expenses | 13 | | involving salaries, retirement, social security, and State | 14 | | paid insurance of State officers by appropriation from the | 15 | | General Revenue Fund. | 16 | | (b) Moneys in the Residential Finance Regulatory Fund may | 17 | | be transferred to the Professions Indirect Cost Fund, as | 18 | | authorized under Section 2105-300 of the Department of | 19 | | Professional Regulation Law of the Civil Administrative Code of | 20 | | Illinois. | 21 | | (c) All earnings received from investments of funds in the | 22 | | Residential Finance Regulatory Fund shall be deposited into | 23 | | that Fund and may be used for the same purposes as fees | 24 | | deposited into that Fund. | 25 | | Section 35. The Foreign Bank Representative Office Act is |
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| 1 | | amended by changing Section 2 as follows:
| 2 | | (205 ILCS 650/2) (from Ch. 17, par. 2852)
| 3 | | Sec. 2. Definitions. As used in this Act, unless the | 4 | | context requires
otherwise:
| 5 | | (a) "Commissioner" means the Secretary of Financial and | 6 | | Professional Regulation or a
person authorized by the | 7 | | Secretary, the Division of Banking Act,
or this Act to act in | 8 | | the Secretary's stead.
| 9 | | (b) "Foreign bank" means (1) a bank , savings bank, savings | 10 | | association, or trust company which is organized
under the laws | 11 | | of any state or territory of the United States, including the
| 12 | | District of Columbia, other than the State of Illinois; (2) a | 13 | | national bank
having its principal place of business in any | 14 | | state or territory of the United
States, including the District | 15 | | of Columbia, other than the State of Illinois;
or (3) a bank or | 16 | | trust company organized and operating under the laws of a
| 17 | | country other than the United States of America.
| 18 | | (c) "Representative office" means an office in the State of | 19 | | Illinois at
which a foreign bank engages in representational | 20 | | functions
but does not conduct a commercial banking business. | 21 | | (d) "Division" means the Division of Banking within the | 22 | | Department of Financial and Professional Regulation.
| 23 | | (Source: P.A. 96-1365, eff. 7-28-10.)
| 24 | | Section 40. The Residential Real Property Disclosure Act is |
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| 1 | | amended by changing Sections 70, 72, 74, 76, 78, and 80 as | 2 | | follows: | 3 | | (765 ILCS 77/70) | 4 | | Sec. 70. Predatory lending database program. | 5 | | (a) As used in this Article: | 6 | | "Adjustable rate mortgage" or "ARM" means a closed-end | 7 | | mortgage transaction that allows adjustments of the loan | 8 | | interest rate during the first 3 years of the loan term. | 9 | | "Borrower" means a person seeking a mortgage loan.
| 10 | | "Broker" means a "broker" or "loan broker", as defined in | 11 | | subsection (p) of Section 1-4 of the Residential Mortgage | 12 | | License Act of 1987. | 13 | | "Closing agent" means an individual assigned by a title | 14 | | insurance company or a broker or originator to ensure that the | 15 | | execution of documents related to the closing of a real estate | 16 | | sale or the refinancing of a real estate loan and the | 17 | | disbursement of closing funds are in conformity with the | 18 | | instructions of the entity financing the transaction.
| 19 | | "Counseling" means in-person counseling provided by a | 20 | | counselor employed by a HUD-approved HUD-certified counseling | 21 | | agency to all borrowers, or documented telephone counseling | 22 | | where a hardship would be imposed on one or more borrowers. A | 23 | | hardship shall exist in instances in which the borrower is | 24 | | confined to his or her home due to medical conditions, as | 25 | | verified in writing by a physician, or the borrower resides 50 |
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| 1 | | miles or more from the nearest participating HUD-approved | 2 | | HUD-certified housing counseling agency. In instances of | 3 | | telephone counseling, the borrower must supply all necessary | 4 | | documents to the counselor at least 72 hours prior to the | 5 | | scheduled telephone counseling session. | 6 | | "Counselor" means a counselor employed by a HUD-approved | 7 | | HUD-certified housing counseling agency. | 8 | | "Credit score" means a credit risk score as defined by the | 9 | | Fair Isaac Corporation, or its successor, and reported under | 10 | | such names as "BEACON", "EMPIRICA", and "FAIR ISAAC RISK SCORE" | 11 | | by one or more of the following credit reporting agencies or | 12 | | their successors: Equifax, Inc., Experian Information | 13 | | Solutions, Inc., and TransUnion
LLC. If the borrower's credit | 14 | | report contains credit scores from 2 reporting agencies, then | 15 | | the broker or loan originator shall report the lower score. If | 16 | | the borrower's credit report contains credit scores from 3 | 17 | | reporting agencies, then the broker or loan originator shall | 18 | | report the middle score.
| 19 | | "Department" means the Department of Financial and | 20 | | Professional Regulation.
| 21 | | "Exempt person or entity " means that term as it is defined | 22 | | in subsections (d)(1), (d)(1.5), and (d)(1.8) of Section 1-4 of | 23 | | the Residential Mortgage License Act of 1987.
| 24 | | "First-time homebuyer" means a borrower who has not held an | 25 | | ownership interest in residential property.
| 26 | | " HUD-approved HUD-certified counseling" or "counseling" |
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| 1 | | means counseling given to a borrower by a counselor employed by | 2 | | a HUD-approved HUD-certified housing counseling agency. | 3 | | "Interest only" means a closed-end loan that permits one or | 4 | | more payments of interest without any reduction of the | 5 | | principal balance of the loan, other than the first payment on | 6 | | the loan. | 7 | | "Lender" means that term as it is defined in subsection (g) | 8 | | of Section 1-4 of the Residential Mortgage License Act of 1987.
| 9 | | "Licensee" means that term as it is defined in subsection | 10 | | (e) of Section 1-4 of the Residential Mortgage License Act of | 11 | | 1987.
| 12 | | "Mortgage loan" means that term as it is defined in | 13 | | subsection (f) of Section 1-4 of the Residential Mortgage | 14 | | License Act of 1987.
| 15 | | "Negative amortization" means an amortization method under | 16 | | which the outstanding balance may increase at any time over the | 17 | | course of the loan because the regular periodic payment does | 18 | | not cover the full amount of interest due. | 19 | | "Originator" means a "loan originator" as defined in | 20 | | subsection (hh) of Section 1-4 of the Residential Mortgage | 21 | | License Act of 1987, except an exempt person, and means a | 22 | | "mortgage loan originator" as defined in subsection (jj) of | 23 | | Section 1-4 of the Residential Mortgage License Act of 1987, | 24 | | except an exempt person. | 25 | | "Points and fees" has the meaning ascribed to that term in | 26 | | Section 10 of the High Risk Home Loan Act. |
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| 1 | | "Prepayment penalty" means a charge imposed by a lender | 2 | | under a mortgage note or rider when the loan is paid before the | 3 | | expiration of the term of the loan. | 4 | | "Refinancing" means a loan secured by the borrower's or | 5 | | borrowers' primary residence where the proceeds are not used as | 6 | | purchase money for the residence. | 7 | | "Title insurance company" means any domestic company | 8 | | organized under the laws of this State for the purpose of | 9 | | conducting the business of guaranteeing or insuring titles to | 10 | | real estate and any title insurance company organized under the | 11 | | laws of another State, the District of Columbia, or a foreign | 12 | | government and authorized to transact the business of | 13 | | guaranteeing or insuring titles to real estate in this State.
| 14 | | (a-5) A predatory lending database program shall be | 15 | | established within Cook County. The program shall be | 16 | | administered in accordance with this Article. The inception | 17 | | date of the program shall be July 1, 2008.
A predatory lending
| 18 | | database program shall be expanded to include Kane, Peoria, and | 19 | | Will counties. The
inception date of the expansion of the | 20 | | program as it applies to Kane, Peoria, and Will
counties shall | 21 | | be July 1, 2010. Until the inception date, none of the duties, | 22 | | obligations, contingencies, or consequences of or from the | 23 | | program shall be imposed. The program shall apply to all | 24 | | mortgage applications that are governed by this Article and | 25 | | that are made or taken on or after the inception of the | 26 | | program.
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| 1 | | (b) The database created under this program shall be | 2 | | maintained and administered by the Department. The database | 3 | | shall be designed to allow brokers, originators, counselors, | 4 | | title insurance companies, and closing agents to submit | 5 | | information to the database online. The database shall not be | 6 | | designed to allow those entities to retrieve information from | 7 | | the database, except as otherwise provided in this Article. | 8 | | Information submitted by the broker or originator to the | 9 | | Department may be used to populate the online form submitted by | 10 | | a counselor, title insurance company, or closing agent. | 11 | | (c) Within 10 business days after taking a mortgage | 12 | | application, the broker or originator for any mortgage on | 13 | | residential property within the program area must submit to the | 14 | | predatory lending database all of the information required | 15 | | under Section 72 and any other information required by the | 16 | | Department by rule. Within 7 business days after receipt of the | 17 | | information, the Department shall compare that information to | 18 | | the housing
counseling standards in Section 73
and issue to the | 19 | | borrower and the broker or originator a determination of | 20 | | whether counseling is recommended for the borrower. The | 21 | | borrower may not waive counseling. If at any time after | 22 | | submitting the information required under Section 72 the broker | 23 | | or originator (i) changes the terms of the loan or (ii) issues | 24 | | a new commitment to the borrower, then, within 5 business days | 25 | | thereafter, the broker or originator shall re-submit all of the | 26 | | information required under Section 72 and, within 4 business |
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| 1 | | days after receipt of the information re-submitted by the | 2 | | broker or originator, the Department shall compare that | 3 | | information to the housing
counseling standards in Section 73
| 4 | | and shall issue to the borrower and the broker or originator a | 5 | | new determination of whether re-counseling
is recommended for | 6 | | the borrower based on the information re-submitted by the | 7 | | broker or originator. The Department shall require | 8 | | re-counseling if the loan terms have been modified to meet | 9 | | another counseling standard in Section 73, or if the broker has | 10 | | increased the interest rate by more than 200 basis points.
| 11 | | (d) If the Department recommends counseling for the | 12 | | borrower under subsection (c), then the Department shall notify | 13 | | the borrower of all participating HUD-approved HUD-certified | 14 | | counseling agencies located within the State and direct the | 15 | | borrower to interview with a counselor associated with one of | 16 | | those agencies. Within 10 business days after receipt of the | 17 | | notice of HUD-approved HUD-certified counseling agencies, it | 18 | | is the borrower's responsibility to borrower shall select one | 19 | | of those agencies and shall engage in an interview with a | 20 | | counselor associated with that agency. The selection must take | 21 | | place and the appointment for the interview must be set within | 22 | | 10 business days, although the interview may take place beyond | 23 | | the 10 business day period. Within 7 business days after | 24 | | interviewing the borrower, the counselor must submit to the | 25 | | predatory lending database all of the information required | 26 | | under Section 74 and any other information required by the |
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| 1 | | Department by rule. Reasonable and customary costs not to | 2 | | exceed $300
associated with counseling provided under the | 3 | | program shall be paid by the broker or originator and shall not | 4 | | be charged back to, or recovered from, the borrower . The | 5 | | Department shall annually calculate to the nearest dollar an | 6 | | adjusted rate for inflation. A counselor shall not recommend or | 7 | | suggest that a borrower contact any specific mortgage | 8 | | origination company, financial institution, or entity that | 9 | | deals in mortgage finance to obtain a loan, another quote, or | 10 | | for any other reason related to the specific mortgage | 11 | | transaction; however, a counselor may suggest that the borrower | 12 | | seek an opinion or a quote from another mortgage origination | 13 | | company, financial institution, or entity that deals in | 14 | | mortgage finance. A counselor or housing counseling agency that
| 15 | | in good faith provides counseling shall not be liable to a | 16 | | broker or originator or borrower for civil damages, except for | 17 | | willful or wanton misconduct on the part of the counselor in | 18 | | providing the counseling. | 19 | | (e) The broker or originator and the borrower may not take | 20 | | any legally binding action concerning the loan transaction | 21 | | until the later of the following: | 22 | | (1) the Department issues a determination not to | 23 | | recommend HUD-approved HUD-certified
counseling for the | 24 | | borrower in accordance with subsection (c); or | 25 | | (2) the Department issues a determination that | 26 | | HUD-approved HUD-certified
counseling is recommended for |
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| 1 | | the borrower and the counselor submits all required | 2 | | information to the database in accordance with subsection | 3 | | (d).
| 4 | | (f) Within 10 business days after closing, the title | 5 | | insurance company or closing agent must submit to the predatory | 6 | | lending database all of the information required under Section | 7 | | 76 and any other information required by the Department by | 8 | | rule. | 9 | | (g) The title insurance company or closing agent shall | 10 | | attach to the mortgage a certificate of
compliance with the | 11 | | requirements of this Article, as generated by the database. If | 12 | | the transaction is exempt, the title insurance company or | 13 | | closing agent shall attach to the mortgage a certificate of | 14 | | exemption, as generated by the database. If the title insurance | 15 | | company or closing agent fails to attach the certificate of | 16 | | compliance or exemption, whichever is required , then the | 17 | | mortgage is not recordable. In addition, if any lis pendens for | 18 | | a residential mortgage foreclosure is recorded on the property | 19 | | within the program area, a certificate of service must be | 20 | | simultaneously recorded that affirms that a copy of the lis | 21 | | pendens was filed with the Department. The lis pendens may be | 22 | | filed with the Department either electronically or by filing a | 23 | | hard copy. If the certificate of service is not recorded, then | 24 | | the lis pendens pertaining to the residential mortgage | 25 | | foreclosure in question is not recordable and is of no force | 26 | | and effect. |
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| 1 | | (h) All information provided to the predatory lending | 2 | | database under the program is confidential and is not subject | 3 | | to disclosure under the Freedom of Information Act, except as | 4 | | otherwise provided in this Article. Information or documents | 5 | | obtained by employees of the Department in the course of | 6 | | maintaining and administering the predatory lending database | 7 | | are deemed confidential. Employees are prohibited from making | 8 | | disclosure of such confidential information or documents. Any | 9 | | request for production of information from the predatory | 10 | | lending database, whether by subpoena, notice, or any other | 11 | | source, shall be referred to the Department of Financial and | 12 | | Professional Regulation. Any borrower may authorize in writing | 13 | | the release of database information. The Department may use the | 14 | | information in the database without the consent of the | 15 | | borrower: (i) for the purposes of administering and enforcing | 16 | | the program; (ii) to provide relevant information to a | 17 | | counselor providing counseling to a borrower under the program; | 18 | | or (iii) to the appropriate law enforcement agency or the | 19 | | applicable administrative agency if the database information | 20 | | demonstrates criminal, fraudulent, or otherwise illegal | 21 | | activity.
| 22 | | (i) Nothing in this Article is intended to prevent a | 23 | | borrower from making his or her own decision as to whether to | 24 | | proceed with a transaction.
| 25 | | (j) Any person who violates any provision of this Article | 26 | | commits an unlawful practice within the meaning of the Consumer |
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| 1 | | Fraud and Deceptive Business Practices Act.
| 2 | | (j-1) A violation of any provision of this Article by a | 3 | | mortgage banking licensee or licensed mortgage loan originator | 4 | | shall constitute a violation of the Residential Mortgage | 5 | | License Act of 1987. | 6 | | (j-2) A violation of any provision of this Article by a | 7 | | title insurance company, title agent, or escrow agent shall | 8 | | constitute a violation of the Title Insurance Act. | 9 | | (j-3) A violation of any provision of this Article by a | 10 | | housing counselor shall be referred to the Department of | 11 | | Housing and Urban Development. | 12 | | (k) During the existence of the program, the Department | 13 | | shall submit semi-annual reports to the Governor and to the | 14 | | General Assembly by May 1 and November 1 of each year detailing | 15 | | its findings regarding the program. The report shall include, | 16 | | by county, at least the following information for each | 17 | | reporting period: | 18 | | (1) the number of loans registered with the program; | 19 | | (2) the number of borrowers receiving counseling; | 20 | | (3) the number of loans closed; | 21 | | (4) the number of loans requiring counseling for each | 22 | | of the standards set forth in Section 73; | 23 | | (5) the number of loans requiring counseling where the | 24 | | mortgage originator changed the loan terms subsequent to | 25 | | counseling;
| 26 | | (6) the number of licensed mortgage brokers and loan |
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| 1 | | originators entering information into
the database; | 2 | | (7) the number of investigations based on information | 3 | | obtained from the database,
including the number of | 4 | | licensees fined, the number of licenses suspended, and the
| 5 | | number of licenses revoked; | 6 | | (8) a summary of the types of non-traditional mortgage | 7 | | products being offered; and | 8 | | (9) a summary of how the Department is actively | 9 | | utilizing the program to combat
mortgage fraud. | 10 | | (Source: P.A. 96-328, eff. 8-11-09; 96-856, eff. 12-31-09; | 11 | | 97-891, eff. 1-1-13.) | 12 | | (765 ILCS 77/72) | 13 | | Sec. 72. Originator; required information. As part of the | 14 | | predatory lending database program, the broker or originator | 15 | | must submit all of the following information for inclusion in | 16 | | the predatory lending database for each loan for which the | 17 | | originator takes an application: | 18 | | (1) The borrower's name, address, social security | 19 | | number or taxpayer identification number, date of birth, | 20 | | and income and expense information, including total | 21 | | monthly consumer debt, contained in the mortgage | 22 | | application.
| 23 | | (2) The address, permanent index number, and a | 24 | | description of the collateral and information about the | 25 | | loan or loans being applied for and the loan terms, |
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| 1 | | including the amount of the loan, the rate and whether the | 2 | | rate is fixed or adjustable, amortization or loan period | 3 | | terms, and any other material terms.
| 4 | | (3) The borrower's credit score at the time of | 5 | | application.
| 6 | | (4) Information about the originator and the company | 7 | | the originator works for, including the originator's | 8 | | license number and address, fees being charged, whether the | 9 | | fees are being charged as points up front, the yield spread | 10 | | premium payable outside closing, and other charges made or | 11 | | remuneration required by the broker or originator or its | 12 | | affiliates or the broker's or originator's employer or its | 13 | | affiliates for the mortgage loans.
| 14 | | (5) Information about affiliated or third party | 15 | | service providers, including the names and addresses of | 16 | | appraisers, title insurance companies, closing agents, | 17 | | attorneys, and realtors who are involved with the | 18 | | transaction and the broker or originator and any moneys | 19 | | received from the broker or originator in connection with | 20 | | the transaction.
| 21 | | (6) All information indicated on the Good Faith | 22 | | Estimate and Truth in Lending statement disclosures given | 23 | | to the borrower by the broker or originator.
| 24 | | (7) Annual real estate taxes for the property, together | 25 | | with any assessments payable in connection with the | 26 | | property to be secured by the collateral and the proposed |
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| 1 | | monthly principal and interest charge of all loans to be | 2 | | taken by the borrower and secured by the property of the | 3 | | borrower.
| 4 | | (8) Information concerning how the broker or | 5 | | originator obtained the client and the name of its referral | 6 | | source, if any.
| 7 | | (9) Information concerning the notices provided by the | 8 | | broker or originator to the borrower as required by law and | 9 | | the date those notices were given.
| 10 | | (10) Information concerning whether a sale and | 11 | | leaseback is contemplated and the names of the lessor and | 12 | | lessee, seller, and purchaser.
| 13 | | (11) Any and all financing by the borrower for the | 14 | | subject property within 12 months prior to the date of | 15 | | application. | 16 | | (12) Loan information, including interest rate, term, | 17 | | purchase price, down payment, and closing costs. | 18 | | (13) Whether the buyer is a first-time homebuyer or | 19 | | refinancing a primary residence. | 20 | | (14) Whether the loan permits interest only payments. | 21 | | (15) Whether the loan may result in negative | 22 | | amortization. | 23 | | (16) Whether the total points and fees payable by the | 24 | | borrowers at or before closing will exceed 5%. | 25 | | (17) Whether the loan includes a prepayment penalty, | 26 | | and, if so, the terms of the penalty. |
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| 1 | | (18) Whether the loan is an ARM. | 2 | | All information entered into the predatory lending | 3 | | database must be true and correct to the best of the | 4 | | originator's knowledge. The originator shall, prior to | 5 | | closing, correct, update, or amend the data as necessary. If | 6 | | any corrections become necessary after the file has been | 7 | | accessed by the closing agent or housing counselor, a new file | 8 | | must be entered. | 9 | | (Source: P.A. 97-891, eff. 1-1-13.) | 10 | | (765 ILCS 77/74) | 11 | | Sec. 74. Counselor; required information. As part of the | 12 | | predatory lending database program, a counselor must submit all | 13 | | of the following information for inclusion in the predatory | 14 | | lending database: | 15 | | (1) The information called for in items (1), (6), (9), | 16 | | (11), (12), (13), (14), (15), (16), (17), and (18) of
| 17 | | Section 72. | 18 | | (2) Any information from the borrower that confirms or | 19 | | contradicts the information called for under item (1) of | 20 | | this Section. | 21 | | (3) The name of the counselor and address of the | 22 | | HUD-approved HUD-certified housing counseling agency that | 23 | | employs the counselor.
| 24 | | (4) Information pertaining to the borrower's monthly | 25 | | expenses that assists the counselor in determining whether |
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| 1 | | the borrower can afford the loans or loans for which the | 2 | | borrower is applying. | 3 | | (5) A list of the disclosures furnished to the | 4 | | borrower, as seen and reviewed by the counselor, and a | 5 | | comparison of that list to all disclosures required by law. | 6 | | (6) Whether the borrower provided tax returns to the | 7 | | broker or originator or to the counselor, and, if so, who | 8 | | prepared the tax returns. | 9 | | (7)
A statement of the recommendations of the
counselor | 10 | | that indicates the counselor's response to each of the | 11 | | following statements: | 12 | | (A) The loan should not be approved due to indicia | 13 | | of fraud. | 14 | | (B) The loan should be approved; no material | 15 | | problems noted. | 16 | | (C) The borrower cannot afford the loan. | 17 | | (D) The borrower does not understand the | 18 | | transaction. | 19 | | (E) The borrower does not understand the costs | 20 | | associated with the transaction. | 21 | | (F) The borrower's monthly income and expenses | 22 | | have been reviewed and disclosed. | 23 | | (G) The rate of the loan is above market rate. | 24 | | (H) The borrower should seek a competitive bid from | 25 | | another broker or originator. | 26 | | (I) There are discrepancies between the borrower's |
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| 1 | | verbal understanding and the originator's completed | 2 | | form. | 3 | | (J) The borrower is precipitously close to not | 4 | | being able to afford the loan. | 5 | | (K) The borrower understands the true cost of debt | 6 | | consolidation and the need for credit card discipline.
| 7 | | (L) The information that the borrower provided the | 8 | | originator has been amended by the originator.
| 9 | | (Source: P.A. 97-813, eff. 7-13-12.) | 10 | | (765 ILCS 77/76) | 11 | | Sec. 76. Title insurance company or closing agent; required | 12 | | information. As part of the predatory lending database pilot | 13 | | program, a title insurance company or closing agent must submit | 14 | | all of the following information for inclusion in the predatory | 15 | | lending database:
| 16 | | (1) The borrower's name, address, social security | 17 | | number or taxpayer identification number, date of birth, | 18 | | and income and expense information contained in the | 19 | | mortgage application. | 20 | | (2) The address, permanent index number, and a | 21 | | description of the collateral and information about the | 22 | | loan or loans being applied for and the loan terms, | 23 | | including the amount of the loan, the rate and whether the | 24 | | rate is fixed or adjustable, amortization or loan period | 25 | | terms, and any other material terms. |
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| 1 | | (3) Annual real estate taxes for the property, together | 2 | | with any assessments payable in connection with the | 3 | | property to be secured by the collateral and the proposed | 4 | | monthly principal and interest charge of all loans to be | 5 | | taken by the borrower and secured by the property of the | 6 | | borrower as well as any required escrows and the amounts | 7 | | paid monthly for those escrows. | 8 | | (4) All itemizations and descriptions set forth in the | 9 | | RESPA settlement statement including items to be | 10 | | disbursed, payable outside closing "POC" items noted on the | 11 | | statement, and a list of payees and the amounts of their | 12 | | checks. | 13 | | (5) The name and license number of the title insurance | 14 | | company or closing agent together with the name of the | 15 | | agent actually conducting the closing. | 16 | | (6) The names and addresses of all originators, | 17 | | brokers, appraisers, sales persons, attorneys, and | 18 | | surveyors that are present at the closing. | 19 | | (7) The date of closing, a detailed list of all notices | 20 | | provided to the borrower at closing and the date of those | 21 | | notices, and all information indicated on the Truth in | 22 | | Lending statement and Good Faith Estimate disclosures.
| 23 | | (Source: P.A. 94-280, eff. 1-1-06.) | 24 | | (765 ILCS 77/78)
| 25 | | Sec. 78. Exemption. Borrowers applying for reverse |
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| 1 | | mortgage financing of residential real estate including under | 2 | | programs regulated by the Federal Housing Administration (FHA) | 3 | | that require HUD-approved HUD-certified counseling are exempt | 4 | | from the program and may submit a HUD counseling certificate to | 5 | | comply with the program. A certificate of exemption is required | 6 | | for recording.
| 7 | | Mortgages secured by non-owner occupied property, | 8 | | commercial property, residential property consisting of more | 9 | | than 4 units, and government property are exempt but require a | 10 | | certificate of exemption for recording. | 11 | | Mortgages originated by an exempt person or entity are | 12 | | exempt but require a certificate of exemption for recording. | 13 | | (Source: P.A. 98-463, eff. 8-16-13.) | 14 | | (765 ILCS 77/80)
| 15 | | Sec. 80. Predatory Lending Database Program Fund. The | 16 | | Predatory Lending Database Program Fund is created as a special | 17 | | fund in the State treasury. Subject to appropriation, moneys in | 18 | | the Fund shall be appropriated to the Illinois Housing | 19 | | Development Authority for the purpose of making grants for | 20 | | HUD-approved HUD-certified counseling agencies participating | 21 | | in the Predatory Lending Database Program to assist with | 22 | | implementation and development of the Predatory Lending | 23 | | Database Program.
| 24 | | (Source: P.A. 95-707, eff. 1-11-08.) |
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