Full Text of SB2955 99th General Assembly
SB2955sam002 99TH GENERAL ASSEMBLY | Sen. Jason A. Barickman Filed: 5/3/2016
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| 1 | | AMENDMENT TO SENATE BILL 2955
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 2955, AS AMENDED, | 3 | | by replacing everything after the enacting clause with the | 4 | | following:
| 5 | | "Section 5. The Illinois Banking Act is amended by changing | 6 | | Sections 78 and 79 as follows:
| 7 | | (205 ILCS 5/78) (from Ch. 17, par. 390)
| 8 | | Sec. 78. Board of banks and trust companies; creation, | 9 | | members, appointment.
There is created a Board which shall be | 10 | | known as the State Banking Board of
Illinois which shall | 11 | | consist of the Director of Banking, who shall be its chairman,
| 12 | | and 12 11 additional members. The Board shall be comprised of | 13 | | individuals interested in the banking industry. Two members | 14 | | shall be from State banks having total assets of not more than | 15 | | $75,000,000 at the time of their appointment; 2 members shall | 16 | | be from State banks having total assets of more than |
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| 1 | | $75,000,000, but not more than $150,000,000 at the time of | 2 | | their appointment; 2 members shall be from State banks having | 3 | | total assets of more than $150,000,000, but not more than | 4 | | $500,000,000 at the time of their appointment; 2 members shall | 5 | | be from State banks having total assets of more than | 6 | | $500,000,000, but not more than $2,000,000,000 at the time of | 7 | | their appointment ; , and one member shall be from a State bank | 8 | | having total assets of more than $2,000,000,000 at the time of | 9 | | his or her appointment ; and one member shall be from a savings | 10 | | bank organized under the Savings Bank Act. There shall be one | 11 | | alternate member from a savings bank organized under the | 12 | | Savings Bank Act whose role shall be to attend a meeting of the | 13 | | State Banking Board if and only if the sitting member from a | 14 | | savings bank is unable to attend the meeting . There shall be 2 | 15 | | public members, neither of whom shall be an officer or director | 16 | | of or owner, whether directly or indirectly, of more than 5% of | 17 | | the outstanding capital stock of any bank or savings bank . | 18 | | Members of the State Banking Board of Illinois cease to be | 19 | | eligible to serve on the Board once they no longer meet the | 20 | | requirements of their original appointment; however, a member | 21 | | from a State bank shall not be disqualified solely due to a | 22 | | change in the bank's asset size.
| 23 | | (Source: P.A. 99-39, eff. 1-1-16 .)
| 24 | | (205 ILCS 5/79) (from Ch. 17, par. 391)
| 25 | | Sec. 79. Board, terms of office. The terms of office of the |
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| 1 | | State Banking Board of Illinois shall be 4 years, except that | 2 | | the initial Board appointments shall be staggered with the | 3 | | Governor initially appointing, with advice and consent of the | 4 | | Senate, 3 members to serve 2-year terms, 4 members to serve | 5 | | 3-year terms, and 4 members to serve 4-year terms. The sitting | 6 | | member from a savings bank organized under the Savings Bank Act | 7 | | and the alternative member from a savings bank organized under | 8 | | the Savings Bank Act shall be appointed for the same terms of | 9 | | office. Members shall continue to serve on the Board until | 10 | | their replacement is appointed and qualified. Vacancies shall | 11 | | be filled by appointment by the Governor with advice and | 12 | | consent of the Senate.
| 13 | | No State Banking Board
member shall serve
more than 2 full | 14 | | 4-year terms of office.
| 15 | | (Source: P.A. 96-1163, eff. 1-1-11; 97-813, eff. 7-13-12.)
| 16 | | (205 ILCS 205/12104 rep.) | 17 | | (205 ILCS 205/Art. 12.2 rep.) | 18 | | Section 10. The Savings Bank Act is amended by repealing | 19 | | Section 12104 and Article 12.2. | 20 | | Section 15. The Residential Mortgage License Act of 1987 is | 21 | | amended by changing Sections 1-4, 4-1, and 4-8 as follows: | 22 | | (205 ILCS 635/1-4) | 23 | | Sec. 1-4. Definitions. The following words and phrases have |
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| 1 | | the meanings given to them in this Section: | 2 | | (a) "Residential real property" or "residential real | 3 | | estate" shall mean any real property located in Illinois, | 4 | | upon which is constructed or intended to be constructed a | 5 | | dwelling. Those terms include a manufactured home as | 6 | | defined in subdivision (53) of Section 9-102 of the Uniform | 7 | | Commercial Code which is real property as defined in | 8 | | Section 5-35 of the Conveyance and Encumbrance of | 9 | | Manufactured Homes as Real Property and Severance Act. | 10 | | (b) "Making a residential mortgage loan" or "funding a | 11 | | residential mortgage
loan" shall mean for compensation or | 12 | | gain, either directly or indirectly,
advancing funds or | 13 | | making a commitment to advance funds to a loan applicant
| 14 | | for a residential mortgage loan. | 15 | | (c) "Soliciting, processing, placing, or negotiating a | 16 | | residential
mortgage loan" shall mean for compensation or | 17 | | gain, either directly or
indirectly, accepting or offering | 18 | | to accept an application for a
residential mortgage loan, | 19 | | assisting or offering to assist in the
processing of an | 20 | | application for a residential mortgage loan on behalf of a
| 21 | | borrower, or negotiating or offering to negotiate the terms | 22 | | or conditions
of a residential mortgage loan with a lender | 23 | | on behalf of a borrower
including, but not limited to, the | 24 | | submission of credit packages for the
approval of lenders, | 25 | | the preparation of residential mortgage loan closing
| 26 | | documents, including a closing in the name of a broker. |
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| 1 | | (d) "Exempt person or entity" shall mean the following: | 2 | | (1) (i) Any banking organization or foreign | 3 | | banking corporation
licensed by the Illinois | 4 | | Commissioner of Banks and Real Estate or the
United | 5 | | States Comptroller of the Currency to transact | 6 | | business in this
State; (ii) any national bank, | 7 | | federally chartered savings and loan
association, | 8 | | federal savings bank, federal credit union; (iii) | 9 | | (blank); (iv) any bank, savings and loan
association, | 10 | | savings bank, or credit union organized under the laws | 11 | | of this
or any other state; (v) any Illinois Consumer | 12 | | Installment Loan Act licensee;
(vi) any insurance | 13 | | company authorized to transact business in this State;
| 14 | | (vii) any entity engaged solely in commercial mortgage | 15 | | lending; (viii) any
service corporation of a savings | 16 | | and loan association or savings bank organized
under | 17 | | the laws of this State or the service corporation of a | 18 | | federally
chartered savings and loan association or | 19 | | savings bank having
its principal place of business in | 20 | | this State, other than a service
corporation licensed | 21 | | or entitled to reciprocity under the Real Estate
| 22 | | License Act of 2000; or (ix) any first tier subsidiary | 23 | | of a
bank, the charter of which is issued under the | 24 | | Illinois Banking Act
by the Illinois Commissioner of | 25 | | Banks and Real Estate,
or the first tier subsidiary of | 26 | | a bank chartered by the United States
Comptroller of |
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| 1 | | the Currency and that has its principal place of | 2 | | business
in this State, provided that the first tier | 3 | | subsidiary is regularly
examined by the Illinois | 4 | | Commissioner of Banks and Real Estate
or the | 5 | | Comptroller of the Currency, or a consumer compliance | 6 | | examination is
regularly conducted by the Federal | 7 | | Reserve Board. | 8 | | (1.5) Any employee of a person or entity mentioned | 9 | | in
item (1) of this subsection, when acting for such | 10 | | person or entity, or any registered mortgage loan | 11 | | originator when acting for an entity described in | 12 | | subsection (tt) of this Section. | 13 | | (1.8) Any person or entity that does not originate | 14 | | mortgage loans in the ordinary course of business, but | 15 | | makes or acquires residential mortgage loans with his | 16 | | or her own funds for his or her or its own investment | 17 | | without intent to make, acquire, or resell more than 3 | 18 | | residential mortgage loans in any one calendar year. | 19 | | (2) (Blank). | 20 | | (3) Any person employed by a licensee to assist in | 21 | | the performance of
the residential mortgage licensee's | 22 | | activities regulated by this Act who is compensated in | 23 | | any manner by
only one licensee. | 24 | | (4) (Blank). | 25 | | (5) Any individual, corporation, partnership, or | 26 | | other entity that
originates, services, or brokers |
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| 1 | | residential mortgage loans, as these
activities are | 2 | | defined in this Act, and who or which receives no
| 3 | | compensation for those activities, subject to the | 4 | | Commissioner's
regulations and the federal Secure and | 5 | | Fair Enforcement for Mortgage Licensing Act of 2008 and | 6 | | the rules promulgated under that Act with regard to the | 7 | | nature and amount of compensation. | 8 | | (6) (Blank). | 9 | | (e) "Licensee" or "residential mortgage licensee" | 10 | | shall mean a person,
partnership, association, | 11 | | corporation, or any other entity who or which is
licensed | 12 | | pursuant to this Act to engage in the activities regulated | 13 | | by
this Act. | 14 | | (f) "Mortgage loan" "residential mortgage loan" or | 15 | | "home
mortgage loan" shall mean any loan primarily for | 16 | | personal, family, or household use that is secured by a | 17 | | mortgage, deed of trust, or other equivalent consensual | 18 | | security interest on a dwelling as defined in Section | 19 | | 103(v) of the federal Truth in Lending Act, or residential | 20 | | real estate upon which is constructed or intended to be | 21 | | constructed a dwelling. | 22 | | (g) "Lender" shall mean any person, partnership, | 23 | | association,
corporation, or any other entity who either | 24 | | lends 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 |
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| 1 | | interest in a corporation,
foreign corporation, alien | 2 | | business organization, trust, or any other form
of business | 3 | | organization regardless of whether the person owns or | 4 | | controls
the ownership interest through one or more persons | 5 | | or one or more proxies,
powers of attorney, nominees, | 6 | | corporations, associations, partnerships,
trusts, joint | 7 | | stock companies, or other entities or devices, or any
| 8 | | combination thereof. | 9 | | (i) "Residential mortgage financing transaction" shall | 10 | | mean the negotiation,
acquisition, sale, or arrangement | 11 | | for or the offer to negotiate, acquire,
sell, or arrange | 12 | | for, a residential mortgage loan or residential mortgage
| 13 | | loan commitment. | 14 | | (j) "Personal residence address" shall mean a street | 15 | | address and shall
not include a post office box number. | 16 | | (k) "Residential mortgage loan commitment" shall mean | 17 | | a contract for
residential mortgage loan financing. | 18 | | (l) "Party to a residential mortgage financing | 19 | | transaction" shall mean a
borrower, lender, or loan broker | 20 | | in a residential mortgage financing
transaction. | 21 | | (m) "Payments" shall mean payment of all or any of the | 22 | | following:
principal, interest and escrow reserves for | 23 | | taxes, insurance and other related
reserves, and | 24 | | reimbursement for lender advances. | 25 | | (n) "Commissioner" shall mean the Commissioner of | 26 | | Banks and Real Estate, except that, beginning on April 6, |
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| 1 | | 2009 (the effective date of Public Act 95-1047), all | 2 | | references in this Act to the Commissioner of Banks and | 3 | | Real Estate are deemed, in appropriate contexts, to be | 4 | | references to the Secretary of Financial and Professional | 5 | | Regulation, or his or her designee, including the Director | 6 | | of the Division of Banking of the Department of Financial | 7 | | and Professional Regulation. | 8 | | (n-1) "Director" shall mean the Director of the | 9 | | Division of Banking of the Department of Financial and | 10 | | Professional Regulation, except that, beginning on July | 11 | | 31, 2009 (the effective date of Public Act 96-112), all | 12 | | references in this Act to the Director are deemed, in | 13 | | appropriate contexts, to be the Secretary of Financial and | 14 | | Professional Regulation, or his or her designee, including | 15 | | the Director of the Division of Banking of the Department | 16 | | of Financial and Professional Regulation. | 17 | | (o) "Loan brokering", "brokering", or "brokerage | 18 | | service" shall mean the act
of helping to obtain from | 19 | | another entity, for a borrower, a loan secured by
| 20 | | residential real estate situated in Illinois or assisting a | 21 | | borrower in
obtaining a loan secured by residential real | 22 | | estate situated in Illinois in
return for consideration to | 23 | | be paid by either the borrower or the lender
including, but | 24 | | not limited to, contracting for the delivery of residential
| 25 | | mortgage loans to a third party lender and soliciting, | 26 | | processing, placing,
or negotiating residential mortgage |
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| 1 | | loans. | 2 | | (p) "Loan broker" or "broker" shall mean a person, | 3 | | partnership,
association, corporation, or limited | 4 | | liability company, other than
those persons, partnerships,
| 5 | | associations, corporations, or limited liability companies | 6 | | exempted
from licensing pursuant to Section
1-4, | 7 | | subsection (d), of this Act, who performs the activities | 8 | | described
in subsections (c), (o), and (yy) of this | 9 | | Section. | 10 | | (q) "Servicing" shall mean the collection or | 11 | | remittance for or the
right or obligation to collect or | 12 | | remit for any lender, noteowner,
noteholder, or for a | 13 | | licensee's own account, of payments, interests,
principal, | 14 | | and trust items such as hazard insurance and taxes on a
| 15 | | residential mortgage loan in accordance with the terms of | 16 | | the residential
mortgage loan; and includes loan payment | 17 | | follow-up, delinquency loan
follow-up, loan analysis and | 18 | | any notifications to the borrower that are
necessary to | 19 | | enable the borrower to keep the loan current and in good | 20 | | standing. "Servicing" includes management of third-party | 21 | | entities acting on behalf of a residential mortgage | 22 | | licensee for the collection of delinquent payments and the | 23 | | use by such third-party entities of said licensee's | 24 | | servicing records or information, including their use in | 25 | | foreclosure. | 26 | | (r) "Full service office" shall mean an office, |
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| 1 | | provided by the licensee and not subleased from the | 2 | | licensee's employees, and staff in Illinois
reasonably | 3 | | adequate to handle efficiently communications, questions, | 4 | | and
other matters relating to any application for, or an | 5 | | existing home mortgage
secured by residential real estate | 6 | | situated in Illinois
with respect to which the licensee is | 7 | | brokering, funding originating,
purchasing, or servicing. | 8 | | The management and operation of each full service
office | 9 | | must include observance of good business practices such as | 10 | | proper signage; adequate,
organized, and accurate books | 11 | | and records; ample phone lines, hours of
business, staff | 12 | | training and supervision, and provision for a mechanism to
| 13 | | resolve consumer inquiries, complaints, and problems. The | 14 | | Commissioner
shall issue regulations with regard to these | 15 | | requirements and shall include
an evaluation of compliance | 16 | | with this Section in his or her periodic
examination of | 17 | | each licensee. | 18 | | (s) "Purchasing" shall mean the purchase of | 19 | | conventional or
government-insured mortgage loans secured | 20 | | by residential real estate
situated in Illinois from either | 21 | | the lender or from the secondary market. | 22 | | (t) "Borrower" shall mean the person or persons who | 23 | | seek the services of
a loan broker, originator, or lender. | 24 | | (u) "Originating" shall mean the issuing of | 25 | | commitments for and funding of
residential mortgage loans. | 26 | | (v) "Loan brokerage agreement" shall mean a written |
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| 1 | | agreement in which a
broker or loan broker agrees to do | 2 | | either of the following: | 3 | | (1) obtain a residential mortgage loan for the | 4 | | borrower or assist the
borrower in obtaining a | 5 | | residential mortgage loan; or | 6 | | (2) consider making a residential mortgage loan to | 7 | | the borrower. | 8 | | (w) "Advertisement" shall mean the attempt by | 9 | | publication,
dissemination, or circulation to induce, | 10 | | directly or indirectly,
any person to enter into a | 11 | | residential mortgage loan agreement or
residential | 12 | | mortgage loan brokerage agreement relative to a
mortgage | 13 | | secured by residential real estate situated in Illinois. | 14 | | (x) (Blank). "Residential Mortgage Board" shall mean | 15 | | the Residential Mortgage
Board created in Section 1-5 of | 16 | | this Act. | 17 | | (y) "Government-insured mortgage loan" shall mean any | 18 | | mortgage loan made
on the security of residential real | 19 | | estate insured by the Department of
Housing and Urban | 20 | | Development or Farmers Home Loan Administration, or
| 21 | | guaranteed by the Veterans Administration. | 22 | | (z) "Annual audit" shall mean a certified audit of the | 23 | | licensee's books and
records and systems of internal | 24 | | control performed by a certified public
accountant in | 25 | | accordance with generally accepted accounting principles
| 26 | | and generally accepted auditing standards. |
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| 1 | | (aa) "Financial institution" shall mean a savings and | 2 | | loan
association, savings bank, credit union, or a bank | 3 | | organized under the
laws of Illinois or a savings and loan | 4 | | association, savings bank,
credit union or a bank organized | 5 | | under the laws of the United States and
headquartered in | 6 | | Illinois. | 7 | | (bb) "Escrow agent" shall mean a third party, | 8 | | individual or entity
charged with the fiduciary obligation | 9 | | for holding escrow funds on a
residential mortgage loan | 10 | | pending final payout of those funds
in accordance with the | 11 | | terms of the residential mortgage loan. | 12 | | (cc) "Net worth" shall have the meaning ascribed | 13 | | thereto in Section 3-5
of this Act. | 14 | | (dd) "Affiliate" shall mean: | 15 | | (1) any entity that directly controls or is | 16 | | controlled by the licensee
and any other company that | 17 | | is directly affecting activities regulated by
this Act | 18 | | that is controlled by the company that controls the | 19 | | licensee; | 20 | | (2) any entity: | 21 | | (A) that is controlled, directly or | 22 | | indirectly, by a trust or otherwise,
by or for the | 23 | | benefit of shareholders who beneficially or | 24 | | otherwise
control, directly or indirectly, by | 25 | | trust or otherwise, the licensee or any
company | 26 | | that controls the licensee; or |
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| 1 | | (B) a majority of the directors or trustees of | 2 | | which constitute a
majority of the persons holding | 3 | | any such office with the licensee or any
company | 4 | | that controls the licensee; | 5 | | (3) any company, including a real estate | 6 | | investment trust, that is
sponsored and advised on a | 7 | | contractual basis by the licensee or any
subsidiary or | 8 | | affiliate of the licensee. | 9 | | (ee) "First tier subsidiary" shall be defined by | 10 | | regulation
incorporating the comparable definitions used | 11 | | by the Office of the
Comptroller of the Currency and the | 12 | | Illinois Commissioner of Banks
and Real Estate. | 13 | | (ff) "Gross delinquency rate" means the quotient | 14 | | determined by dividing
(1) the sum of (i) the number of | 15 | | government-insured residential mortgage loans
funded or | 16 | | purchased by a licensee in the preceding calendar year that | 17 | | are
delinquent and (ii) the number of conventional | 18 | | residential mortgage loans
funded or purchased by the | 19 | | licensee in the preceding calendar year that are
delinquent | 20 | | by (2) the sum of (i) the number of government-insured | 21 | | residential
mortgage loans funded or purchased by the | 22 | | licensee in the preceding calendar
year and (ii) the number | 23 | | of conventional residential mortgage loans funded or
| 24 | | purchased by the licensee in the preceding calendar year. | 25 | | (gg) "Delinquency rate factor" means the factor set by | 26 | | rule of the
Commissioner that is multiplied by the average |
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| 1 | | gross delinquency rate of
licensees, determined annually | 2 | | for the immediately preceding calendar year, for
the | 3 | | purpose of determining which licensees shall be examined by | 4 | | the
Commissioner pursuant to subsection (b) of Section 4-8 | 5 | | of this Act. | 6 | | (hh) "Loan originator" means any natural person who, | 7 | | for compensation or in
the expectation of compensation, | 8 | | either directly or indirectly makes, offers to
make, | 9 | | solicits, places, or negotiates a residential mortgage | 10 | | loan. This definition applies only to Section 7-1 of this | 11 | | Act. | 12 | | (ii) "Confidential supervisory information" means any | 13 | | report of examination, visitation, or investigation | 14 | | prepared by the Commissioner under this Act, any report of | 15 | | examination visitation, or investigation prepared by the | 16 | | state regulatory authority of another state that examines a | 17 | | licensee, any document or record prepared or obtained in | 18 | | connection with or relating to any examination, | 19 | | visitation, or investigation, and any record prepared or | 20 | | obtained by the Commissioner to the extent that the record | 21 | | summarizes or contains information derived from any | 22 | | report, document, or record described in this subsection. | 23 | | "Confidential supervisory information" does not include | 24 | | any information or record routinely prepared by a licensee | 25 | | and maintained in the ordinary course of business or any | 26 | | information or record that is required to be made publicly |
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| 1 | | available pursuant to State or federal law or rule.
| 2 | | (jj) "Mortgage loan originator" means an individual | 3 | | who for compensation or gain or in the expectation of | 4 | | compensation or gain: | 5 | | (i) takes a residential mortgage loan application; | 6 | | or | 7 | | (ii) offers or negotiates terms of a residential | 8 | | mortgage loan. | 9 | | "Mortgage loan originator" includes an individual | 10 | | engaged in loan modification activities as defined in | 11 | | subsection (yy) of this Section. A mortgage loan originator | 12 | | engaged in loan modification activities shall report those | 13 | | activities to the Department of Financial and Professional | 14 | | Regulation in the manner provided by the Department; | 15 | | however, the Department shall not impose a fee for | 16 | | reporting, nor require any additional qualifications to | 17 | | engage in those activities beyond those provided pursuant | 18 | | to this Act for mortgage loan originators. | 19 | | "Mortgage loan originator" does not include an | 20 | | individual engaged solely as a loan processor or | 21 | | underwriter except as otherwise provided in subsection (d) | 22 | | of Section 7-1A of this Act. | 23 | | "Mortgage loan originator" does not include a person or | 24 | | entity that only performs real estate brokerage activities | 25 | | and is licensed in accordance with the Real Estate License | 26 | | Act of 2000, unless the person or entity is compensated by |
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| 1 | | a lender, a mortgage broker, or other mortgage loan | 2 | | originator, or by any agent of that lender, mortgage | 3 | | broker, or other mortgage loan originator. | 4 | | "Mortgage loan originator" does not include a person or | 5 | | entity solely involved in extensions of credit relating to | 6 | | timeshare plans, as that term is defined in Section | 7 | | 101(53D) of Title 11, United States Code. | 8 | | (kk) "Depository institution" has the same meaning as | 9 | | in Section 3 of the Federal Deposit Insurance Act, and | 10 | | includes any credit union. | 11 | | (ll) "Dwelling" means a residential structure or | 12 | | mobile home which contains one to 4 family housing units, | 13 | | or individual units of condominiums or cooperatives. | 14 | | (mm) "Immediate family member" means a spouse, child, | 15 | | sibling, parent, grandparent, or grandchild, and includes | 16 | | step-parents, step-children, step-siblings, or adoptive | 17 | | relationships. | 18 | | (nn) "Individual" means a natural person. | 19 | | (oo) "Loan processor or underwriter" means an | 20 | | individual who performs clerical or support duties as an | 21 | | employee at the direction of and subject to the supervision | 22 | | and instruction of a person licensed, or exempt from | 23 | | licensing, under this Act. "Clerical or support duties" | 24 | | includes subsequent to the receipt of an application: | 25 | | (i) the receipt, collection, distribution, and | 26 | | analysis of information common for the processing or |
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| 1 | | underwriting of a residential mortgage loan; and | 2 | | (ii) communicating with a consumer to obtain the | 3 | | information necessary for the processing or | 4 | | underwriting of a loan, to the extent that the | 5 | | communication does not include offering or negotiating | 6 | | loan rates or terms, or counseling consumers about | 7 | | residential mortgage loan rates or terms. An | 8 | | individual engaging solely in loan processor or | 9 | | underwriter activities shall not represent to the | 10 | | public, through advertising or other means of | 11 | | communicating or providing information, including the | 12 | | use of business cards, stationery, brochures, signs, | 13 | | rate lists, or other promotional items, that the | 14 | | individual can or will perform any of the activities of | 15 | | a mortgage loan originator. | 16 | | (pp) "Nationwide Mortgage Licensing System and | 17 | | Registry" means a mortgage licensing system developed and | 18 | | maintained by the Conference of State Bank Supervisors and | 19 | | the American Association of Residential Mortgage | 20 | | Regulators for the licensing and registration of licensed | 21 | | mortgage loan originators. | 22 | | (qq) "Nontraditional mortgage product" means any | 23 | | mortgage product other than a 30-year fixed rate mortgage. | 24 | | (rr) "Person" means a natural person, corporation, | 25 | | company, limited liability company, partnership, or | 26 | | association. |
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| 1 | | (ss) "Real estate brokerage activity" means any | 2 | | activity that involves offering or providing real estate | 3 | | brokerage services to the public, including: | 4 | | (1) acting as a real estate agent or real estate | 5 | | broker for a buyer, seller, lessor, or lessee of real | 6 | | property; | 7 | | (2) bringing together parties interested in the | 8 | | sale, purchase, lease, rental, or exchange of real | 9 | | property; | 10 | | (3) negotiating, on behalf of any party, any | 11 | | portion of a contract relating to the sale, purchase, | 12 | | lease, rental, or exchange of real property, other than | 13 | | in connection with providing financing with respect to | 14 | | any such transaction; | 15 | | (4) engaging in any activity for which a person | 16 | | engaged in the activity is required to be registered or | 17 | | licensed as a real estate agent or real estate broker | 18 | | under any applicable law; or | 19 | | (5) offering to engage in any activity, or act in | 20 | | any capacity, described in this subsection (ss). | 21 | | (tt) "Registered mortgage loan originator" means any | 22 | | individual that: | 23 | | (1) meets the definition of mortgage loan | 24 | | originator and is an employee of: | 25 | | (A) a depository institution; | 26 | | (B) a subsidiary that is: |
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| 1 | | (i) owned and controlled by a depository | 2 | | institution; and | 3 | | (ii) regulated by a federal banking | 4 | | agency; or | 5 | | (C) an institution regulated by the Farm | 6 | | Credit Administration; and | 7 | | (2) is registered with, and maintains a unique | 8 | | identifier through, the Nationwide Mortgage Licensing | 9 | | System and Registry. | 10 | | (uu) "Unique identifier" means a number or other | 11 | | identifier assigned by protocols established by the | 12 | | Nationwide Mortgage Licensing System and Registry. | 13 | | (vv) "Residential mortgage license" means a license | 14 | | issued pursuant to Section 1-3, 2-2, or 2-6 of this Act. | 15 | | (ww) "Mortgage loan originator license" means a | 16 | | license issued pursuant to Section 7-1A, 7-3, or 7-6 of | 17 | | this Act. | 18 | | (xx) "Secretary" means the Secretary of the Department | 19 | | of Financial and Professional Regulation, or a person | 20 | | authorized by the Secretary or by this Act to act in the | 21 | | Secretary's stead. | 22 | | (yy) "Loan modification" means, for compensation or | 23 | | gain, either directly or indirectly offering or | 24 | | negotiating on behalf of a borrower or homeowner to adjust | 25 | | the terms of a residential mortgage loan in a manner not | 26 | | provided for in the original or previously modified |
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| 1 | | mortgage loan. | 2 | | (zz) "Short sale facilitation" means, for compensation | 3 | | or gain, either directly or indirectly offering or | 4 | | negotiating on behalf of a borrower or homeowner to | 5 | | facilitate the sale of residential real estate subject to | 6 | | one or more residential mortgage loans or debts | 7 | | constituting liens on the property in which the proceeds | 8 | | from selling the residential real estate will fall short of | 9 | | the amount owed and the lien holders are contacted to agree | 10 | | to release their lien on the residential real estate and | 11 | | accept less than the full amount owed on the debt. | 12 | | The Commissioner may define by rule and regulation any | 13 | | terms used
in this Act for the efficient and clear | 14 | | administration of this Act. | 15 | | (Source: P.A. 98-749, eff. 7-16-14; 98-1081, eff. 1-1-15; | 16 | | 99-78, eff. 7-20-15.)
| 17 | | (205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| 18 | | Sec. 4-1. Commissioner of Banks and Real Estate; functions, | 19 | | powers, and duties. The functions,
powers, and duties of the | 20 | | Commissioner of Banks and Real Estate shall include the | 21 | | following:
| 22 | | (a) to issue or refuse to issue any license as provided | 23 | | by this Act;
| 24 | | (b) to revoke or suspend for cause any license issued | 25 | | under this Act;
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| 1 | | (c) to keep records of all licenses issued under this | 2 | | Act;
| 3 | | (d) to receive, consider, investigate, and act upon | 4 | | complaints made by
any person in connection with any | 5 | | residential mortgage licensee in this State;
| 6 | | (e) (blank); to consider and act upon any | 7 | | recommendations from the Residential
Mortgage Board;
| 8 | | (f) to prescribe the forms of and receive:
| 9 | | (1) applications for licenses; and
| 10 | | (2) all reports and all books and records required | 11 | | to be made by
any licensee under this Act, including | 12 | | annual audited financial statements
and annual reports | 13 | | of mortgage activity;
| 14 | | (g) to adopt rules and regulations necessary and proper | 15 | | for the
administration of this Act;
| 16 | | (h) to subpoena documents and witnesses and compel | 17 | | their attendance and
production, to administer oaths, and | 18 | | to require the production of any books,
papers, or other | 19 | | materials relevant to any inquiry authorized by this Act;
| 20 | | (h-1) to issue orders against any person, if the | 21 | | Commissioner has reasonable cause to believe that an | 22 | | unsafe, unsound, or unlawful practice has occurred, is | 23 | | occurring, or is about to occur, if any person has | 24 | | violated, is violating, or is about to violate any law, | 25 | | rule, or written agreement with the Commissioner, or for | 26 | | the purpose of administering the provisions of this Act and |
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| 1 | | any rule adopted in accordance with the Act; | 2 | | (h-2) to address any inquiries to any licensee, or the | 3 | | officers thereof, in relation to its activities and | 4 | | conditions, or any other matter connected with its affairs, | 5 | | and it shall be the duty of any licensee or person so | 6 | | addressed, to promptly reply in writing to such inquiries. | 7 | | The Commissioner may also require reports from any licensee | 8 | | at any time the Commissioner may deem desirable;
| 9 | | (i) to require information with regard to any license | 10 | | applicant
as he or she may deem desirable, with due regard | 11 | | to the paramount interests
of the public as to the | 12 | | experience, background, honesty, truthfulness,
integrity, | 13 | | and competency of the license applicant as to financial
| 14 | | transactions involving primary or subordinate mortgage | 15 | | financing, and where
the license applicant is an entity | 16 | | other than an individual, as to the
honesty, truthfulness, | 17 | | integrity, and competency of any officer or director
of the | 18 | | corporation, association, or other entity, or the members | 19 | | of a
partnership;
| 20 | | (j) to examine the books and records of every licensee | 21 | | under this Act at
intervals as specified in Section 4-2;
| 22 | | (k) to enforce provisions of this Act;
| 23 | | (l) to levy fees, fines, and charges for services | 24 | | performed in administering
this Act; the aggregate of all | 25 | | fees collected by the Commissioner on and after
the | 26 | | effective date of this Act shall be paid promptly after |
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| 1 | | receipt of the
same, accompanied by a detailed statement | 2 | | thereof, into the
Residential Finance Regulatory Fund | 3 | | under Section 4-1.5 of this Act; the amounts deposited into | 4 | | that Fund shall
be used for the ordinary and contingent | 5 | | expenses of the Office of Banks and
Real Estate. Nothing in | 6 | | this Act shall prevent continuing the practice of paying
| 7 | | expenses involving salaries, retirement, social security, | 8 | | and State-paid
insurance of State officers by | 9 | | appropriation from the General Revenue Fund.
| 10 | | (m) to appoint examiners, supervisors, experts, and | 11 | | special assistants as
needed to effectively and | 12 | | efficiently administer this Act;
| 13 | | (n) to conduct hearings for the purpose of:
| 14 | | (1) appeals of orders of the Commissioner;
| 15 | | (2) suspensions or revocations of licenses, or | 16 | | fining of licensees;
| 17 | | (3) investigating:
| 18 | | (i) complaints against licensees; or
| 19 | | (ii) annual gross delinquency rates; and
| 20 | | (4) carrying out the purposes of this Act;
| 21 | | (o) to exercise exclusive visitorial power over a | 22 | | licensee unless otherwise authorized by this Act or as | 23 | | vested in the courts, or upon prior consultation with the | 24 | | Commissioner, a foreign residential mortgage regulator | 25 | | with an appropriate supervisory interest in the parent or | 26 | | affiliate of a licensee;
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| 1 | | (p) to enter into cooperative agreements with state | 2 | | regulatory authorities of other states to provide for | 3 | | examination of corporate offices or branches of those | 4 | | states and to accept reports of such examinations;
| 5 | | (q) to assign an examiner or examiners to monitor the | 6 | | affairs of a licensee with whatever frequency the | 7 | | Commissioner determines appropriate and to charge the | 8 | | licensee for reasonable and necessary expenses of the | 9 | | Commissioner, if in the opinion of the Commissioner an | 10 | | emergency exists or appears likely to occur;
| 11 | | (r) to impose civil penalties of up to $50 per day | 12 | | against a licensee for failing to respond to a regulatory | 13 | | request or reporting requirement; and
| 14 | | (s) to enter into agreements in connection with the | 15 | | Nationwide Mortgage Licensing System and Registry. | 16 | | (Source: P.A. 98-1081, eff. 1-1-15 .)
| 17 | | (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
| 18 | | Sec. 4-8. Delinquency; examination.
| 19 | | (a) The Commissioner shall obtain from the U.S. Department | 20 | | of Housing and
Urban Development that Department's loan | 21 | | delinquency data.
| 22 | | (b) The Commissioner shall conduct as part of an | 23 | | examination of each licensee a review of the licensee's loan | 24 | | delinquency data.
| 25 | | This subsection shall not be construed as a limitation
of |
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| 1 | | the Commissioner's examination authority under Section 4-2 of | 2 | | this Act or as
otherwise provided in this Act.
The Commissioner | 3 | | may require a licensee to provide loan delinquency
data as the | 4 | | Commissioner deems necessary for the proper enforcement
of the | 5 | | Act.
| 6 | | (c) The purpose of the examination under subsection (b) | 7 | | shall be
to determine whether the loan delinquency data of the
| 8 | | licensee has resulted from practices which deviate from
sound | 9 | | and accepted mortgage underwriting practices, including but | 10 | | not
limited to credit fraud, appraisal fraud and property | 11 | | inspection fraud.
For the purpose of conducting this | 12 | | examination, the Commissioner may accept
materials prepared | 13 | | for the U.S. Department of Housing and Urban Development.
At | 14 | | the conclusion of the examination, the Commissioner shall make | 15 | | his or
her findings available to the Residential Mortgage | 16 | | Board.
| 17 | | (d) The Commissioner, at his or her discretion, may hold | 18 | | public
hearings , or at the direction of the Residential | 19 | | Mortgage Board, shall hold
public hearings . Such testimony | 20 | | shall be by a homeowner or mortgagor or his
agent, whose | 21 | | residential interest is affected by the activities of the
| 22 | | residential mortgage licensee subject to such hearing.
At such | 23 | | public hearing, a witness may present testimony on his or her | 24 | | behalf
concerning only his or her home, or home mortgage or a | 25 | | witness may authorize a
third party to appear on his or her | 26 | | behalf. The testimony shall be
restricted to information and |
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| 1 | | comments related to a specific residence or
specific | 2 | | residential mortgage application or applications for a | 3 | | residential
mortgage or residential loan transaction. The | 4 | | testimony must be preceded
by either a letter of complaint or a | 5 | | completed consumer complaint form
prescribed by the | 6 | | Commissioner.
| 7 | | (e) The Commissioner shall, at the conclusion of the public | 8 | | hearings,
release his or her findings and shall also make | 9 | | public any action taken
with respect to the licensee. The | 10 | | Commissioner shall also give full
consideration to the findings | 11 | | of this examination whenever reapplication is
made by the | 12 | | licensee for a new license under this Act.
| 13 | | (f) A licensee that is examined pursuant to subsection (b)
| 14 | | shall submit to the Commissioner a plan which shall be designed | 15 | | to reduce that
licensee's loan delinquencies. The plan shall be | 16 | | implemented by the
licensee as approved by the Commissioner. A | 17 | | licensee that is
examined pursuant to subsection (b) shall | 18 | | report monthly,
for a one year period, one, 2, and 3 month loan | 19 | | delinquencies.
| 20 | | (g) Whenever the Commissioner finds that a licensee's loan | 21 | | delinquencies
on insured mortgages is unusually high within a | 22 | | particular
geographic area, he or she shall require that | 23 | | licensee to submit such
information as is necessary to | 24 | | determine whether that licensee's practices
have constituted | 25 | | credit fraud, appraisal fraud or property inspection
fraud. The | 26 | | Commissioner shall promulgate such rules as are necessary to
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| 1 | | determine whether any licensee's loan delinquencies are
| 2 | | unusually high within a particular area.
| 3 | | (Source: P.A. 99-15, eff. 1-1-16 .)
| 4 | | (205 ILCS 635/1-5 rep.) | 5 | | Section 20. The Residential Mortgage License Act of 1987 is | 6 | | amended by repealing Section 1-5.
| 7 | | Section 99. Effective date. This Act takes effect upon | 8 | | becoming law.".
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