Full Text of HB3369 99th General Assembly
HB3369 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3369 Introduced , by Rep. Patricia R. Bellock SYNOPSIS AS INTRODUCED: |
| 205 ILCS 635/2-1 | from Ch. 17, par. 2322-1 | 205 ILCS 635/2-2 | | 205 ILCS 635/2-6 | | 205 ILCS 635/4-5 | from Ch. 17, par. 2324-5 | 205 ILCS 635/4-8 | from Ch. 17, par. 2324-8 |
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Amends the Residential Mortgage Licensing Act of 1987. Provides that the Secretary of Financial and Professional Regulation shall conduct an examination of each licensee that engages in brokering and lending activities, the scope of which shall address the delinquency rate of the licensee's loan portfolio. Provides that licenses shall be renewed every year using the common renewal date of the Nationwide Mortgage Licensing System and Registry as adopted by the Director of the Division of Banking of the Department of Financial and Professional Regulation. Provides that properly completed renewal application forms and filing fees must be received
by the Secretary 30 (was 60) days prior to the license expiration (was renewal) date to be timely received. Removes a provision providing that a license which was not renewed within one year of becoming inactive
shall expire. Provides that the Secretary may share with the Residential Mortgage Board non-confidential delinquency rate related information, including any public disciplinary orders against licensees that result from the delinquency rate related examination findings. Removes a provision requiring the
publication of a specified notice in the Illinois Register. Makes other changes in provisions concerning licensee names and the application process.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Residential Mortgage License Act of 1987 is | 5 | | amended by changing Sections 2-1, 2-2, 2-6, 4-5, and 4-8 as | 6 | | follows:
| 7 | | (205 ILCS 635/2-1) (from Ch. 17, par. 2322-1)
| 8 | | Sec. 2-1. Licensee Name.
| 9 | | (a) No person, partnership, association,
corporation, | 10 | | limited liability company, or other entity engaged in the
| 11 | | business regulated by this Act
shall operate such business | 12 | | under a name other than the real names of the entity and
| 13 | | individuals conducting such business. Such business may in | 14 | | addition operate under , an assumed corporate name pursuant to
| 15 | | the Business Corporation Act of 1983, an assumed limited
| 16 | | liability company
name
pursuant to the Limited Liability | 17 | | Company Act,
or an assumed business name pursuant to the | 18 | | Assumed Business Name Act.
| 19 | | (b) A knowing violation of this Section constitutes an | 20 | | unlawful practice
within the meaning of this Act, and in | 21 | | addition to the administrative relief
available under this Act, | 22 | | may be prosecuted for the commission of a Class A
misdemeanor. | 23 | | A person who is convicted of a second or subsequent violation
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| 1 | | of this Section is guilty of a Class 4 felony.
| 2 | | (Source: P.A. 89-355, eff. 8-17-95.)
| 3 | | (205 ILCS 635/2-2)
| 4 | | Sec. 2-2. Application process; investigation; fee.
| 5 | | (a) The Secretary shall issue a license upon completion of | 6 | | all of the
following:
| 7 | | (1) The filing of an application for license with the | 8 | | Director or the Nationwide Mortgage Licensing System and | 9 | | Registry as approved by the Director.
| 10 | | (2) The filing with the Secretary of a listing of | 11 | | judgments entered
against, and bankruptcy petitions by, | 12 | | the license applicant for the
preceding 10 years.
| 13 | | (3) The payment, in certified funds, of
investigation | 14 | | and application fees, the total of which shall be in an
| 15 | | amount equal to $2,700 annually. To comply with the common | 16 | | renewal date and requirements of the Nationwide Mortgage | 17 | | Licensing System and Registry, the term of initial licenses | 18 | | may be extended or shortened with applicable fees prorated | 19 | | or combined accordingly.
| 20 | | (4) Except for a broker applying to renew a license, | 21 | | the filing of an
audited balance sheet including all | 22 | | footnotes prepared by a certified public
accountant in | 23 | | accordance with generally accepted accounting principles | 24 | | and
generally accepted auditing standards which evidences | 25 | | that the applicant meets
the net worth requirements of |
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| 1 | | Section 3-5. Notwithstanding the requirements of this | 2 | | subsection, an applicant that is a subsidiary may submit | 3 | | audited consolidated financial statements of its parent, | 4 | | intermediary parent, or ultimate parent as long as the | 5 | | consolidated statements are supported by consolidating | 6 | | statements which include the applicant's financial | 7 | | statement. If the consolidating statements are unaudited, | 8 | | the applicant's chief financial officer shall attest to the | 9 | | applicant's financial statements disclosed in the | 10 | | consolidating statements.
| 11 | | (5) The filing of proof satisfactory to the | 12 | | Commissioner that the
applicant, the members thereof if the | 13 | | applicant is a partnership or
association, the members or | 14 | | managers thereof that retain any authority or
| 15 | | responsibility under the operating agreement if the | 16 | | applicant is a limited
liability company, or the officers | 17 | | thereof if the applicant
is a corporation have 3 years | 18 | | experience preceding application
in real estate finance. | 19 | | Instead of this requirement, the applicant and the
| 20 | | applicant's officers or members, as applicable, may
| 21 | | satisfactorily complete a program of education in real | 22 | | estate finance and
fair lending, as
approved by the | 23 | | Commissioner, prior to receiving the
initial license.
The | 24 | | Commissioner shall promulgate rules regarding proof of | 25 | | experience
requirements and educational requirements and | 26 | | the satisfactory completion of
those requirements. The |
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| 1 | | Commissioner may establish by rule a list of duly
licensed | 2 | | professionals and others who may be exempt from this | 3 | | requirement.
| 4 | | (6) An investigation of the averments required by | 5 | | Section 2-4, which
investigation must allow the | 6 | | Commissioner to issue positive findings stating
that the | 7 | | financial responsibility, experience, character, and | 8 | | general fitness
of the license applicant and of the members | 9 | | thereof if the license applicant is
a partnership or | 10 | | association, of the officers and directors thereof if the
| 11 | | license applicant is a corporation, and of the managers and | 12 | | members that retain
any authority or responsibility under | 13 | | the operating agreement if the license
applicant is a | 14 | | limited liability company are such as to command the | 15 | | confidence
of the community and to warrant belief that the | 16 | | business will be operated
honestly, fairly and efficiently | 17 | | within the purpose of this Act. If the
Commissioner shall | 18 | | not so find, he or she shall not issue such license, and he
| 19 | | or she shall notify the license applicant of the denial. | 20 | | The Commissioner may impose conditions on a license if the | 21 | | Commissioner determines that the conditions are necessary or | 22 | | appropriate. These conditions shall be imposed in writing and | 23 | | shall continue in effect for the period prescribed by the | 24 | | Commissioner.
| 25 | | (b) All licenses shall be issued to the license applicant.
| 26 | | Upon receipt of such license, a residential mortgage |
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| 1 | | licensee shall be
authorized to engage in the business | 2 | | regulated by this Act. Such license
shall remain in full force | 3 | | and effect until it expires without renewal, is
surrendered by | 4 | | the licensee or revoked or suspended as hereinafter provided.
| 5 | | (Source: P.A. 97-891, eff. 8-3-12; 98-1081, eff. 1-1-15 .)
| 6 | | (205 ILCS 635/2-6)
| 7 | | Sec. 2-6. License issuance and renewal; fee.
| 8 | | (a) Licenses Beginning July 1, 2003, licenses shall be | 9 | | renewed every year using on the
anniversary of the date of | 10 | | issuance of the original license, or the common renewal date of | 11 | | the Nationwide Mortgage Licensing System and Registry as | 12 | | adopted by the Director. To comply with the common renewal date | 13 | | of the Nationwide Mortgage Licensing System and Registry, the | 14 | | term of existing licenses may be extended or shortened with | 15 | | applicable fees prorated accordingly.
Properly completed | 16 | | renewal application forms and filing fees must be received
by | 17 | | the Secretary 30 60 days prior to the license expiration | 18 | | renewal date to be timely received .
| 19 | | (b) It shall be the responsibility of each licensee to | 20 | | accomplish renewal
of its license ; failure of the licensee to | 21 | | receive renewal forms absent a
request sent by certified mail | 22 | | for such forms will not waive said
responsibility . Failure by a | 23 | | licensee to submit a properly completed
renewal application | 24 | | form and fees in a timely fashion, absent a written
extension | 25 | | from the Secretary, will result in the license becoming |
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| 1 | | inactive. in the assessment of
additional fees, as follows:
| 2 | | (1) A fee of $567.50 will be assessed to the licensee | 3 | | 30 days
after the
proper renewal date and $1,135 each month | 4 | | thereafter, until the
license is
either renewed or expires | 5 | | pursuant to Section 2-6, subsections (c) and (d),
of this | 6 | | Act.
| 7 | | (2) Such fee will be assessed without prior notice to | 8 | | the licensee, but
will be assessed only in cases wherein | 9 | | the Secretary has in his or her
possession documentation of | 10 | | the licensee's continuing activity for which
the unrenewed | 11 | | license was issued.
| 12 | | (c) A license which is not renewed by the date required in | 13 | | this Section
shall automatically become inactive. No activity | 14 | | regulated by this Act
shall be conducted by the licensee when a | 15 | | license becomes inactive. The Commissioner may require the | 16 | | licensee to provide a plan for the disposition of any | 17 | | residential mortgage loans not closed or funded when the | 18 | | license becomes inactive. The Commissioner may allow a licensee | 19 | | with an inactive license to conduct activities regulated by | 20 | | this Act for the sole purpose of assisting borrowers in the | 21 | | closing or funding of loans for which the loan application was | 22 | | taken from a borrower while the license was active. An
inactive | 23 | | license may be reactivated by the Commissioner upon payment of | 24 | | the renewal fee, and payment
of a reactivation fee equal to the | 25 | | renewal fee.
| 26 | | (d) (Blank) A license which is not renewed within one year |
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| 1 | | of becoming inactive
shall expire .
| 2 | | (e) A licensee ceasing an activity or activities regulated | 3 | | by this Act
and desiring to no longer be licensed shall so | 4 | | inform the Commissioner in
writing and, at the same time, | 5 | | convey any the license issued and all other symbols or
indicia | 6 | | of licensure. The licensee shall include a plan for the | 7 | | withdrawal
from regulated business, including a timetable for | 8 | | the disposition of the
business, and comply with the surrender | 9 | | guidelines or requirements of the Director. Upon receipt of | 10 | | such written notice, the Commissioner shall post the | 11 | | cancellation or issue
a certified statement canceling the | 12 | | license.
| 13 | | (Source: P.A. 95-1047, eff. 4-6-09; 96-112, eff. 7-31-09; | 14 | | 96-1000, eff. 7-2-10.)
| 15 | | (205 ILCS 635/4-5) (from Ch. 17, par. 2324-5)
| 16 | | Sec. 4-5. Suspension, revocation of licenses; fines.
| 17 | | (a) Upon written notice to a licensee, the Commissioner may | 18 | | suspend
or revoke any license issued pursuant to this Act if he | 19 | | or she shall make a
finding of one or more of the following in | 20 | | the notice that:
| 21 | | (1) Through separate acts or an act or a course of | 22 | | conduct, the licensee
has violated any provisions of this | 23 | | Act, any rule or regulation
promulgated by the Commissioner | 24 | | or of any other law, rule or regulation of
this State or | 25 | | the United States.
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| 1 | | (2) Any fact or condition exists which, if it had | 2 | | existed at the time of
the original application for such | 3 | | license would have warranted the
Commissioner in refusing | 4 | | originally to issue such license.
| 5 | | (3) If a licensee is other than an individual, any | 6 | | ultimate
equitable owner, officer, director, or member of | 7 | | the licensed partnership,
association, corporation, or | 8 | | other entity has so acted or failed to act as
would be | 9 | | cause for suspending or revoking a license to that party as | 10 | | an
individual.
| 11 | | (b) No license shall be suspended or revoked, except as | 12 | | provided in this
Section, nor shall any licensee be fined | 13 | | without notice of his or her right
to a hearing as provided in | 14 | | Section 4-12 of this Act.
| 15 | | (c) The Commissioner, on good cause shown that an emergency | 16 | | exists, may
suspend any license for a period not
exceeding 180 | 17 | | days, pending investigation. Upon a showing that a
licensee has | 18 | | failed to meet the experience or educational requirements of
| 19 | | Section 2-2 or the requirements of subsection (g) of Section | 20 | | 3-2, the
Commissioner shall suspend, prior to hearing as | 21 | | provided in Section 4-12, the
license until those requirements | 22 | | have been met.
| 23 | | (d) The provisions of subsection (e) of Section 2-6 of this | 24 | | Act
shall not affect a licensee's civil or criminal liability
| 25 | | for acts committed prior to surrender of a license.
| 26 | | (e) No revocation, suspension or surrender of any license |
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| 1 | | shall impair
or affect the obligation of any pre-existing | 2 | | lawful contract between the
licensee and any person.
| 3 | | (f) Every license issued under this Act shall remain in | 4 | | force and effect
until the same shall have expired without | 5 | | renewal, have been surrendered,
revoked or suspended in | 6 | | accordance with the provisions of this Act, but the
| 7 | | Commissioner shall have authority to reinstate a suspended | 8 | | license or to
issue a new license to a licensee whose license | 9 | | shall have been revoked if
no fact or condition then exists | 10 | | which would have warranted the
Commissioner in refusing | 11 | | originally to issue such license under this Act.
| 12 | | (g) Whenever the Commissioner shall revoke or suspend a | 13 | | license issued
pursuant to this Act or fine a licensee under | 14 | | this Act, he or she shall
forthwith execute a written order to | 15 | | that effect. The
Commissioner shall publish notice of such | 16 | | order in the Illinois Register
and post notice of the order on | 17 | | an agency Internet site maintained by the Commissioner or on | 18 | | the Nationwide Mortgage Licensing System and Registry and shall | 19 | | forthwith serve a copy of such order upon the
licensee. Any | 20 | | such order may be reviewed in the manner provided by
Section | 21 | | 4-12 of this Act.
| 22 | | (h) When the Commissioner finds any person in violation of | 23 | | the grounds
set forth in subsection (i), he or she may enter an | 24 | | order imposing one or
more of the following penalties:
| 25 | | (1) Revocation of license;
| 26 | | (2) Suspension of a license subject to reinstatement |
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| 1 | | upon satisfying all
reasonable conditions the Commissioner | 2 | | may specify;
| 3 | | (3) Placement of the licensee or applicant on probation | 4 | | for a period of
time and subject to all reasonable | 5 | | conditions as the Commissioner may specify;
| 6 | | (4) Issuance of a reprimand;
| 7 | | (5) Imposition of a fine not to exceed $25,000 for each
| 8 | | count of
separate offense, provided that a fine may be | 9 | | imposed not to exceed $75,000 for each separate count of | 10 | | offense of paragraph (2) of subsection (i) of this Section; | 11 | | and
| 12 | | (6) Denial of a license.
| 13 | | (i) The following acts shall constitute grounds for which | 14 | | the
disciplinary actions specified in subsection (h) above may | 15 | | be taken:
| 16 | | (1) Being convicted or found guilty, regardless of | 17 | | pendency of an
appeal, of a crime in any jurisdiction which | 18 | | involves fraud, dishonest
dealing, or any other act of | 19 | | moral turpitude;
| 20 | | (2) Fraud, misrepresentation, deceit or negligence in | 21 | | any mortgage
financing transaction;
| 22 | | (3) A material or intentional misstatement of fact on | 23 | | an initial or
renewal application;
| 24 | | (4) Failure to follow the Commissioner's regulations | 25 | | with respect to
placement of funds in escrow accounts;
| 26 | | (5) Insolvency or filing under any provision of the |
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| 1 | | Bankruptcy Code
as a debtor;
| 2 | | (6) Failure to account or deliver to any person any | 3 | | property such as any
money, fund, deposit, check, draft, | 4 | | mortgage, or other document or thing of
value, which has | 5 | | come into his or her hands and which is not his or her
| 6 | | property or which he or she is not in law or equity | 7 | | entitled to retain,
under the circumstances and at the time | 8 | | which has been agreed upon or is
required by law or, in the | 9 | | absence of a fixed time, upon demand of the
person entitled | 10 | | to such accounting and delivery;
| 11 | | (7) Failure to disburse funds in accordance with | 12 | | agreements;
| 13 | | (8) Any misuse, misapplication, or misappropriation of | 14 | | trust funds
or escrow funds;
| 15 | | (9) Having a license, or the equivalent, to practice | 16 | | any profession or
occupation revoked, suspended, or | 17 | | otherwise acted against, including the
denial of licensure | 18 | | by a licensing authority of this State or another
state, | 19 | | territory or country for fraud, dishonest dealing or any | 20 | | other act
of moral turpitude;
| 21 | | (10) Failure to issue a satisfaction of mortgage when | 22 | | the residential
mortgage has been executed and proceeds | 23 | | were not disbursed to the benefit
of the mortgagor and when | 24 | | the mortgagor has fully paid licensee's costs
and | 25 | | commission;
| 26 | | (11) Failure to comply with any order of the |
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| 1 | | Commissioner or rule made
or issued under the provisions of | 2 | | this Act;
| 3 | | (12) Engaging in activities regulated by this Act | 4 | | without a current,
active license unless specifically | 5 | | exempted by this Act;
| 6 | | (13) Failure to pay in a timely manner any fee, charge | 7 | | or fine under
this Act;
| 8 | | (14) Failure to maintain, preserve, and keep available | 9 | | for examination,
all books, accounts or other documents | 10 | | required by the provisions of this
Act and the rules of the | 11 | | Commissioner;
| 12 | | (15) Refusing, obstructing, evading, or unreasonably | 13 | | delaying an investigation, information request, or | 14 | | examination authorized under this Act, or refusing, | 15 | | obstructing, evading, or unreasonably delaying compliance | 16 | | with the Director's subpoena or subpoena duces tecum;
| 17 | | (16) A pattern of substantially underestimating the | 18 | | maximum closing costs;
| 19 | | (17) Failure to comply with or violation of any | 20 | | provision of this Act; | 21 | | (18) Failure to comply with or violation of any | 22 | | provision of Article 3 of the Residential Real Property | 23 | | Disclosure Act.
| 24 | | (j) A licensee shall be subject to the disciplinary actions | 25 | | specified in
this Act for violations of subsection (i) by any | 26 | | officer, director,
shareholder, joint venture, partner, |
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| 1 | | ultimate equitable owner, or employee
of the licensee.
| 2 | | (k) Such licensee shall be subject to suspension or | 3 | | revocation for
unauthorized employee actions only if there is a | 4 | | pattern of repeated violations by
employees or the licensee has | 5 | | knowledge of the violations, or there is substantial harm to a | 6 | | consumer.
| 7 | | (l) Procedure for surrender of license:
| 8 | | (1) The Commissioner may, after 10 days notice by | 9 | | certified mail to the
licensee at the address set forth on | 10 | | the license, stating the contemplated
action and in general | 11 | | the grounds therefor and the date, time and place of
a | 12 | | hearing thereon, and after providing the licensee with a | 13 | | reasonable
opportunity to be heard prior to such action, | 14 | | fine such licensee an amount
not exceeding $25,000
per | 15 | | violation, or revoke or suspend any license
issued | 16 | | hereunder if he or she finds that:
| 17 | | (i) The licensee has failed to comply with any | 18 | | provision of this Act or
any order, decision, finding, | 19 | | rule, regulation or direction of the
Commissioner | 20 | | lawfully made pursuant to the authority of this Act; or
| 21 | | (ii) Any fact or condition exists which, if it had | 22 | | existed at the time
of the original application for the | 23 | | license, clearly would have warranted
the Commissioner | 24 | | in refusing to issue the license.
| 25 | | (2) Any licensee may submit application to surrender a | 26 | | license,
but upon the Director approving the surrender, it |
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| 1 | | shall not affect the licensee's civil or criminal liability
| 2 | | for acts committed prior to surrender or entitle the | 3 | | licensee to a return
of any part of the license fee.
| 4 | | (Source: P.A. 96-112, eff. 7-31-09; 97-891, eff. 8-3-12.)
| 5 | | (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
| 6 | | Sec. 4-8. Delinquency Default rate; examination.
| 7 | | (a) The Secretary shall conduct an examination of each | 8 | | licensee that engages in brokering and lending activities, the | 9 | | scope of which shall address the delinquency rate of the | 10 | | licensee's loan portfolio. The examination may assess any | 11 | | relevant data and information pertaining to the licensee's | 12 | | delinquency rate, which may include a review of the licensee's | 13 | | compliancy with ability to repay regulations, a review of the | 14 | | internal loan performance reports and statistics from the | 15 | | licensee, a review of loan servicing data, a review of the | 16 | | Nationwide Mortgage Licensing System and Registry Mortgage | 17 | | Call Report data, a review of the federal Department of Housing | 18 | | and Urban Development Neighborhood Watch data, if available, | 19 | | and a review of any other third-party data. In addition, for | 20 | | brokers, the examination may assess the status of agreements | 21 | | with lenders and reasons for any funding terminations. The | 22 | | purpose of collecting the delinquency rate information is to | 23 | | determine whether the licensee's practices deviate from sound | 24 | | and accepted practices, including, but not limited to, credit | 25 | | fraud, appraisal fraud, and inspection fraud. The licensee's |
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| 1 | | delinquency rate and related information shall be considered | 2 | | accordingly in the component ratings and composite rating for | 3 | | the examination. Upon receipt of a report of examination that | 4 | | finds that the licensee has a delinquency rate deemed | 5 | | unacceptable to the Secretary, the licensee shall submit a | 6 | | written response setting forth the necessary corrective action | 7 | | plan. The Secretary reserves the right to refer the examination | 8 | | findings to the Supervision Unit or Legal Unit The Commissioner | 9 | | shall obtain from the U.S. Department of Housing and
Urban | 10 | | Development on a semi-annual basis that Department's default | 11 | | claim rates
for endorsements issued by that Department .
| 12 | | (b) The Secretary may share with the Residential Mortgage | 13 | | Board non-confidential delinquency rate related information, | 14 | | including any public disciplinary orders against licensees | 15 | | that result from the delinquency rate related examination | 16 | | findings The Commissioner shall conduct an examination of each | 17 | | licensee
having a default rate equal to or greater than 5% .
| 18 | | This subsection shall not be construed as a limitation
of | 19 | | the Commissioner's examination authority under Section 4-2 of | 20 | | this Act or as
otherwise provided in this Act.
The Commissioner | 21 | | may require a licensee to provide loan default
data as the | 22 | | Commissioner deems necessary for the proper enforcement
of the | 23 | | Act.
| 24 | | (c) (Blank). The purpose of the examination under | 25 | | subsection (b) shall be
to determine whether the default rate | 26 | | of the
licensee has resulted from practices which deviate from
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| 1 | | sound and accepted mortgage underwriting practices, including | 2 | | but not
limited to credit fraud, appraisal fraud and property | 3 | | inspection fraud.
For the purpose of conducting this | 4 | | examination, the Commissioner may accept
materials prepared | 5 | | for the U.S. Department of Housing and Urban Development.
At | 6 | | the conclusion of the examination, the Commissioner shall make | 7 | | his or
her findings available to the Residential Mortgage | 8 | | Board.
| 9 | | (d) The Secretary Commissioner , at his or her discretion, | 10 | | may hold public
hearings involving a licensee's compliance with | 11 | | ability to repay regulations on a specific residential mortgage | 12 | | loan, as further described in this Section , or at the direction | 13 | | of the Residential Mortgage Board, shall hold
public hearings . | 14 | | Such testimony shall be by a homeowner or mortgagor or his
| 15 | | agent, whose residential interest is affected by the activities | 16 | | of the
residential mortgage licensee subject to such hearing.
| 17 | | At such public hearing, a witness may present testimony on his | 18 | | or her behalf
concerning only his or her home, or home mortgage | 19 | | or a witness may authorize a
third party to appear on his or | 20 | | her behalf. The testimony shall be
restricted to information | 21 | | and comments related to a specific residence or
specific | 22 | | residential mortgage application or applications for a | 23 | | residential
mortgage or residential loan transaction. The | 24 | | testimony must be preceded
by either a letter of complaint or a | 25 | | completed consumer complaint form
prescribed by the Secretary | 26 | | Commissioner .
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| 1 | | (e) The Secretary may Commissioner shall , at the conclusion | 2 | | of the public hearings,
release his or her findings and may | 3 | | shall also make public any action taken
with respect to the | 4 | | licensee. The Secretary may Commissioner shall also give full
| 5 | | consideration to the findings resulting from the public hearing | 6 | | of this examination whenever the licensee submits an | 7 | | application for renewal of the license or an application for a | 8 | | new license reapplication is
made by the licensee for a new | 9 | | license under this Act .
| 10 | | (f) (Blank). A licensee that is examined pursuant to | 11 | | subsection (b)
shall submit to the Commissioner a plan which | 12 | | shall be designed to reduce that
licensee's default rate to a | 13 | | figure that is
less than 5%. The plan shall be implemented by | 14 | | the
licensee as approved by the Commissioner. A licensee that | 15 | | is
examined pursuant to subsection (b) shall report monthly,
| 16 | | for a one year period, one, 2, and 3 month defaults.
| 17 | | (g) Whenever the Secretary Commissioner finds that a | 18 | | licensee's
default rate
on insured mortgages is unusually high | 19 | | within a particular
geographic area, the Secretary may he or | 20 | | she shall require that licensee to submit such
information as | 21 | | is necessary to determine whether that licensee's practices
| 22 | | have constituted credit fraud, appraisal fraud or property | 23 | | inspection
fraud. The Commissioner shall promulgate such rules | 24 | | as are necessary to
determine whether any licensee's default | 25 | | rate is
unusually high within a particular area.
| 26 | | (h) This Section shall not be construed as a limitation of |
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| 1 | | the Secretary's authority to investigate or examine any and all | 2 | | licensed activities of a licensee at any time deemed warranted | 3 | | by the Secretary. | 4 | | (Source: P.A. 89-355, eff. 1-1-96; 89-626, eff. 8-9-96; 90-301, | 5 | | eff. 8-1-97.)
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