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91_SB0445
LRB9102296JSpc
1 AN ACT to amend the Residential Mortgage License Act of
2 1987 by changing Sections 2-2 and 2-4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Residential Mortgage License Act of 1987
6 is amended by changing Sections 2-2 and 2-4 as follows:
7 (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
8 Sec. 2-2. Application process; investigation; fee.
9 (a) The Commissioner shall issue a license upon
10 completion of all of the following:
11 (1) The filing of an application for license.
12 (2) The filing with the Commissioner of a listing
13 of judgments entered against, and bankruptcy petitions
14 by, the license applicant for the preceding 10 years.
15 (3) The payment, in certified funds, of
16 investigation and application fees, the total of which
17 shall be in an amount equal to $1,800 annually, however,
18 the Commissioner may increase the investigation and
19 application fees by rule as provided in Section 4-11.
20 (4) Except for a broker applying to renew a
21 license, the filing of an audited balance sheet including
22 all footnotes prepared by a certified public accountant
23 in accordance with generally accepted accounting
24 principles and generally accepted auditing principles
25 which evidences that the applicant meets the net worth
26 requirements of Section 3-5.
27 (5) The filing of proof satisfactory to the
28 Commissioner that the applicant, the members thereof if
29 the applicant is a partnership or association, the
30 members or managers thereof that retain any authority or
31 responsibility under the operating agreement if the
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1 applicant is a limited liability company, or the officers
2 thereof if the applicant is a corporation have 3 years
3 experience preceding application in real estate finance.
4 Instead of this requirement, the applicant and the
5 applicant's officers or members, as applicable, may
6 satisfactorily complete a program of education in real
7 estate finance and fair lending, as approved by the
8 Commissioner, prior to within 9 months of receiving the
9 initial license. The Commissioner shall promulgate rules
10 regarding proof of experience requirements and
11 educational requirements and the satisfactory completion
12 of those requirements. The Commissioner may establish by
13 rule a list of duly licensed professionals and others who
14 may be exempt from this requirement.
15 (6) An investigation of the averments required by
16 Section 2-4, which investigation must allow the
17 Commissioner to issue positive findings stating that the
18 financial responsibility, experience, character, and
19 general fitness of the license applicant and of the
20 members thereof if the license applicant is a partnership
21 or association, of the officers and directors thereof if
22 the license applicant is a corporation, and of the
23 managers and members that retain any authority or
24 responsibility under the operating agreement if the
25 license applicant is a limited liability company are such
26 as to command the confidence of the community and to
27 warrant belief that the business will be operated
28 honestly, fairly and efficiently within the purpose of
29 this Act. If the Commissioner shall not so find, he or
30 she shall not issue such license, and he or she shall
31 notify the license applicant of the denial.
32 (b) All licenses shall be issued in duplicate with one
33 copy being transmitted to the license applicant and the
34 second being retained with the Commissioner.
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1 Upon receipt of such license, a residential mortgage
2 licensee shall be authorized to engage in the business
3 regulated by this Act. Such license shall remain in full
4 force and effect until it expires without renewal, is
5 surrendered by the licensee or revoked or suspended as
6 hereinafter provided.
7 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
8 (205 ILCS 635/2-4) (from Ch. 17, par. 2322-4)
9 Sec. 2-4. Averments of Licensee. Each application for
10 license shall be accompanied by the following averments
11 stating that the applicant:
12 (a) Will maintain at least one full service office
13 within the State of Illinois pursuant to Section 3-4 of this
14 Act;
15 (b) Will maintain staff reasonably adequate to meet the
16 requirements of Section 3-4 of this Act;
17 (c) Will keep and maintain for 36 months the same
18 written records as required by the federal Equal Credit
19 Opportunity Act, and any other information required by
20 regulations of the Commissioner regarding any home mortgage
21 in the course of the conduct of its residential mortgage
22 business;
23 (d) Will file with the Commissioner, when due, any
24 report or reports which it is required to file under any of
25 the provisions of this Act;
26 (e) Will not engage, whether as principal or agent, in
27 the practice of rejecting residential mortgage applications
28 without reasonable cause, or varying terms or application
29 procedures without reasonable cause, for home mortgages on
30 real estate within any specific geographic area from the
31 terms or procedures generally provided by the licensee within
32 other geographic areas of the State;
33 (f) Will not engage in fraudulent home mortgage
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1 underwriting practices;
2 (g) Will not make payment, whether directly or
3 indirectly, of any kind to any in house or fee appraiser of
4 any government or private money lending agency with which an
5 application for a home mortgage has been filed for the
6 purpose of influencing the independent judgment of the
7 appraiser with respect to the value of any real estate which
8 is to be covered by such home mortgage;
9 (h) Has filed tax returns (State and Federal) for the
10 past 3 years or filed with the Commissioner an accountant's
11 or attorney's statement as to why no return was filed;
12 (i) Will not engage in any discrimination or redlining
13 activities prohibited by Section 3-8 of this Act;
14 (j) Will not knowingly make any false promises likely to
15 influence or persuade, or pursue a course of
16 misrepresentation and false promises through agents,
17 solicitors, advertising or otherwise;
18 (k) Will not knowingly misrepresent, circumvent or
19 conceal, through whatever subterfuge or device, any of the
20 material particulars or the nature thereof, regarding a
21 transaction to which it is a party to the injury of another
22 party thereto;
23 (l) Will disburse funds in accordance with its
24 agreements;
25 (m) Has not committed a crime against the law of this
26 State, any other state or of the United States, involving
27 moral turpitude, fraudulent or dishonest dealing, and that no
28 final judgment has been entered against it in a civil action
29 upon grounds of fraud, misrepresentation or deceit which has
30 not been previously reported to the Commissioner;
31 (n) Will account or deliver to any person any personal
32 property such as money, fund, deposit, check, draft,
33 mortgage, other document or thing of value, which has come
34 into its possession, and which is not its property, or which
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1 it is not in law or equity entitled to retain under the
2 circumstances, at the time which has been agreed upon or is
3 required by law, or, in the absence of a fixed time, upon
4 demand of the person entitled to such accounting and
5 delivery;
6 (o) Has not engaged in any conduct which would be cause
7 for denial of a license;
8 (p) Has not become insolvent;
9 (q) Has not submitted an application for a license under
10 this Act which contains a material misstatement;
11 (r) Has not demonstrated by course of conduct,
12 negligence or incompetence in performing any act for which it
13 is required to hold a license under this Act;
14 (s) Will advise the Commissioner in writing of any
15 changes to the information submitted on the most recent
16 application for license within 30 days of said change. The
17 written notice must be signed in the same form as the
18 application for license being amended;
19 (t) Will comply with the provisions of this Act, or with
20 any lawful order, rule or regulation made or issued under the
21 provisions of this Act;
22 (u) Will submit to periodic examination by the
23 Commissioner as required by this Act;
24 (v) Will advise the Commissioner in writing of judgments
25 entered against, and bankruptcy petitions by, the license
26 applicant within 5 days of occurrence;
27 (w) Will advise the Commissioner in writing within 30
28 days when the license applicant requests a licensee under
29 this Act to repurchase a loan, and the circumstances
30 therefor; and
31 (x) Will advise the Commissioner in writing within 30
32 days when the license applicant is requested by another
33 entity to repurchase a loan, and the circumstances therefor;
34 and.
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1 (y) Will require that each person employed by the
2 licensee for no less than 12 months who takes residential
3 mortgage applications shall complete at least 3 hours of
4 education in real estate finance each year at a source
5 approved by the Commissioner.
6 (Source: P.A. 90-301, eff. 8-1-97.)