SB2566eng 95TH GENERAL ASSEMBLY

SB2566 Engrossed LRB095 18702 AJO 44803 b

AN ACT concerning foreclosure.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Housing Development Act is amended by adding Section 7.30 as follows:

(20 ILCS 3805/7.30 new)

Sec. 7.30. Foreclosure prevention counseling program. The Authority shall establish and administer a foreclosure prevention counseling program. The Authority shall use moneys in the Foreclosure Prevention Counseling Fund, and any other funds appropriated for this purpose, to make grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home-ownership education and foreclosure prevention counseling activities under the program.

Section 10. The State Finance Act is amended by adding Sections 5.708 and 6z-80 as follows:

(30 ILCS 105/5.708 new)

Sec. 5.708. The Foreclosure Prevention Counseling Fund.

(30 ILCS 105/6z-80 new)

Sec. 6z-80. The Foreclosure Prevention Counseling Fund.

(a) There is created in the State treasury a special fund to be known as the Foreclosure Prevention Counseling Fund. All moneys received by the Commissioner of Banks and Real Estate from the foreclosure prevention surcharge collected under subsection (c) of Section 2-2 of the Residential Mortgage License Act of 1987 shall be deposited into the Fund.

(b) Moneys in the Fund shall be used as follows:

(1) 25% of the moneys in the Fund on the first day of each calendar month shall be distributed as grants by the Illinois Housing Development Authority to the City of Chicago to provide grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home-ownership education and foreclosure prevention counseling activities under programs administered by that city.

(2) The remaining moneys shall, subject to appropriation, be used by the Illinois Housing Development Authority as provided in Section 7.30 of the Illinois Housing Development Act.

Section 15. The Residential Mortgage License Act of 1987 is amended by changing Section 2-2 as follows:

(205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)

Sec. 2-2. Application process; investigation; fee.

(a) The Commissioner shall issue a license upon completion of all of the following:

(1) The filing of an application for license.

(2) The filing with the Commissioner of a listing of judgments entered against, and bankruptcy petitions by, the license applicant for the preceding 10 years.

(3) The payment, in certified funds, of investigation and application fees, the total of which shall be in an amount equal to $3,200 $2,700 annually, including the foreclosure prevention surcharge provided for in subsection (c) of this Section; however, the Commissioner may increase the investigation and application fees by rule as provided in Section 4-11.

(4) Except for a broker applying to renew a license, the filing of an audited balance sheet including all footnotes prepared by a certified public accountant in accordance with generally accepted accounting principles and generally accepted auditing principles which evidences that the applicant meets the net worth requirements of Section 3-5.

(5) The filing of proof satisfactory to the Commissioner that the applicant, the members thereof if the applicant is a partnership or association, the members or managers thereof that retain any authority or responsibility under the operating agreement if the applicant is a limited liability company, or the officers thereof if the applicant is a corporation have 3 years experience preceding application in real estate finance. Instead of this requirement, the applicant and the applicant's officers or members, as applicable, may satisfactorily complete a program of education in real estate finance and fair lending, as approved by the Commissioner, prior to receiving the initial license. The Commissioner shall promulgate rules regarding proof of experience requirements and educational requirements and the satisfactory completion of those requirements. The Commissioner may establish by rule a list of duly licensed professionals and others who may be exempt from this requirement.

(6) An investigation of the averments required by Section 2-4, which investigation must allow the Commissioner to issue positive findings stating that the financial responsibility, experience, character, and general fitness of the license applicant and of the members thereof if the license applicant is a partnership or association, of the officers and directors thereof if the license applicant is a corporation, and of the managers and members that retain any authority or responsibility under the operating agreement if the license applicant is a limited liability company are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly and efficiently within the purpose of this Act. If the Commissioner shall not so find, he or she shall not issue such license, and he or she shall notify the license applicant of the denial.

The Commissioner may impose conditions on a license if the Commissioner determines that the conditions are necessary or appropriate. These conditions shall be imposed in writing and shall continue in effect for the period prescribed by the Commissioner.

(b) All licenses shall be issued in duplicate with one copy being transmitted to the license applicant and the second being retained with the Commissioner.

Upon receipt of such license, a residential mortgage licensee shall be authorized to engage in the business regulated by this Act. Such license shall remain in full force and effect until it expires without renewal, is surrendered by the licensee or revoked or suspended as hereinafter provided.

(c) Any application for issuance or renewal of a license for a period beginning on or after July 1, 2008, shall include payment of a foreclosure prevention surcharge in the amount of $500. All proceeds from the surcharge shall be deposited into the Foreclosure Prevention Counseling Fund.

(Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)

Section 99. Effective date. This Act takes effect upon becoming law.