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| Public Act 100-0783 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Banking Act is amended by changing | ||||
Sections 78 and 79 as follows:
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(205 ILCS 5/78) (from Ch. 17, par. 390)
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Sec. 78. Board of banks and trust companies; creation, | ||||
members, appointment.
There is created a Board which shall be | ||||
known as the State Banking Board of
Illinois which shall | ||||
consist of the Director of Banking, who shall be its chairman,
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and 12 11 additional members. The Board shall be comprised of | ||||
individuals interested in the banking industry. Two members | ||||
shall be from State banks having total assets of not more than | ||||
$75,000,000 at the time of their appointment; 2 members shall | ||||
be from State banks having total assets of more than | ||||
$75,000,000, but not more than $150,000,000 at the time of | ||||
their appointment; 2 members shall be from State banks having | ||||
total assets of more than $150,000,000, but not more than | ||||
$500,000,000 at the time of their appointment; 2 members shall | ||||
be from State banks having total assets of more than | ||||
$500,000,000, but not more than $2,000,000,000 at the time of | ||||
their appointment; , and one member shall be from a State bank | ||||
having total assets of more than $2,000,000,000 at the time of | ||||
his or her appointment; and one member shall be from a savings | ||
bank organized under the Savings Bank Act. There shall be one | ||
alternate member from a savings bank organized under the | ||
Savings Bank Act whose role shall be to attend a meeting of the | ||
State Banking Board if and only if the sitting member from a | ||
savings bank is unable to attend the meeting. There shall be 2 | ||
public members, neither of whom shall be an officer or director | ||
of or owner, whether directly or indirectly, of more than 5% of | ||
the outstanding capital stock of any bank or savings bank. | ||
Members of the State Banking Board of Illinois cease to be | ||
eligible to serve on the Board once they no longer meet the | ||
requirements of their original appointment; however, a member | ||
from a State bank shall not be disqualified solely due to a | ||
change in the bank's asset size.
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(Source: P.A. 99-39, eff. 1-1-16.)
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(205 ILCS 5/79) (from Ch. 17, par. 391)
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Sec. 79. Board, terms of office. The terms of office of the | ||
State Banking Board of Illinois shall be 4 years, except that | ||
the initial Board appointments shall be staggered with the | ||
Governor initially appointing, with advice and consent of the | ||
Senate, 3 members to serve 2-year terms, 4 members to serve | ||
3-year terms, and 4 members to serve 4-year terms. The sitting | ||
member from a savings bank organized under the Savings Bank Act | ||
and the alternate member from a savings bank organized under | ||
the Savings Bank Act shall be appointed for the same terms of | ||
office. Members shall continue to serve on the Board until | ||
their replacement is appointed and qualified. Vacancies shall | ||
be filled by appointment by the Governor with advice and | ||
consent of the Senate.
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No State Banking Board
member shall serve
more than 2 full | ||
4-year terms of office.
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(Source: P.A. 96-1163, eff. 1-1-11; 97-813, eff. 7-13-12.)
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(205 ILCS 205/12104 rep.) | ||
(205 ILCS 205/Art. 12.2 rep.) | ||
Section 10. The Savings Bank Act is amended by repealing | ||
Section 12104 and Article 12.2. | ||
Section 15. The Residential Mortgage License Act of 1987 is | ||
amended by changing Sections 1-4, 4-1, and 4-8 as follows: | ||
(205 ILCS 635/1-4) | ||
Sec. 1-4. Definitions. The following words and phrases have | ||
the meanings given to them in this Section: | ||
(a) "Residential real property" or "residential real | ||
estate" shall mean any real property located in Illinois, | ||
upon which is constructed or intended to be constructed a | ||
dwelling. Those terms include a manufactured home as | ||
defined in subdivision (53) of Section 9-102 of the Uniform | ||
Commercial Code which is real property as defined in | ||
Section 5-35 of the Conveyance and Encumbrance of | ||
Manufactured Homes as Real Property and Severance Act. | ||
(b) "Making a residential mortgage loan" or "funding a | ||
residential mortgage
loan" shall mean for compensation or | ||
gain, either directly or indirectly,
advancing funds or | ||
making a commitment to advance funds to a loan applicant
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for a residential mortgage loan. | ||
(c) "Soliciting, processing, placing, or negotiating a | ||
residential
mortgage loan" shall mean for compensation or | ||
gain, either directly or
indirectly, accepting or offering | ||
to accept an application for a
residential mortgage loan, | ||
assisting or offering to assist in the
processing of an | ||
application for a residential mortgage loan on behalf of a
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borrower, or negotiating or offering to negotiate the terms | ||
or conditions
of a residential mortgage loan with a lender | ||
on behalf of a borrower
including, but not limited to, the | ||
submission of credit packages for the
approval of lenders, | ||
the preparation of residential mortgage loan closing
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documents, including a closing in the name of a broker. | ||
(d) "Exempt person or entity" shall mean the following: | ||
(1) (i) Any banking organization or foreign | ||
banking corporation
licensed by the Illinois | ||
Commissioner of Banks and Real Estate or the
United | ||
States Comptroller of the Currency to transact | ||
business in this
State; (ii) any national bank, | ||
federally chartered savings and loan
association, | ||
federal savings bank, federal credit union; (iii) | ||
(blank); (iv) any bank, savings and loan
association, | ||
savings bank, or credit union organized under the laws | ||
of this
or any other state; (v) any Illinois Consumer | ||
Installment Loan Act licensee;
(vi) any insurance | ||
company authorized to transact business in this State;
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(vii) any entity engaged solely in commercial mortgage | ||
lending; (viii) any
service corporation of a savings | ||
and loan association or savings bank organized
under | ||
the laws of this State or the service corporation of a | ||
federally
chartered savings and loan association or | ||
savings bank having
its principal place of business in | ||
this State, other than a service
corporation licensed | ||
or entitled to reciprocity under the Real Estate
| ||
License Act of 2000; or (ix) any first tier subsidiary | ||
of a
bank, the charter of which is issued under the | ||
Illinois Banking Act
by the Illinois Commissioner of | ||
Banks and Real Estate,
or the first tier subsidiary of | ||
a bank chartered by the United States
Comptroller of | ||
the Currency and that has its principal place of | ||
business
in this State, provided that the first tier | ||
subsidiary is regularly
examined by the Illinois | ||
Commissioner of Banks and Real Estate
or the | ||
Comptroller of the Currency, or a consumer compliance | ||
examination is
regularly conducted by the Federal | ||
Reserve Board. | ||
(1.5) Any employee of a person or entity mentioned | ||
in
item (1) of this subsection, when acting for such | ||
person or entity, or any registered mortgage loan | ||
originator when acting for an entity described in | ||
subsection (tt) of this Section. | ||
(1.8) Any person or entity that does not originate | ||
mortgage loans in the ordinary course of business, but | ||
makes or acquires residential mortgage loans with his | ||
or her own funds for his or her or its own investment | ||
without intent to make, acquire, or resell more than 3 | ||
residential mortgage loans in any one calendar year. | ||
(2) (Blank). | ||
(3) Any person employed by a licensee to assist in | ||
the performance of
the residential mortgage licensee's | ||
activities regulated by this Act who is compensated in | ||
any manner by
only one licensee. | ||
(4) (Blank). | ||
(5) Any individual, corporation, partnership, or | ||
other entity that
originates, services, or brokers | ||
residential mortgage loans, as these
activities are | ||
defined in this Act, and who or which receives no
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compensation for those activities, subject to the | ||
Commissioner's
regulations and the federal Secure and | ||
Fair Enforcement for Mortgage Licensing Act of 2008 and | ||
the rules promulgated under that Act with regard to the | ||
nature and amount of compensation. | ||
(6) (Blank). | ||
(e) "Licensee" or "residential mortgage licensee" | ||
shall mean a person,
partnership, association, | ||
corporation, or any other entity who or which is
licensed | ||
pursuant to this Act to engage in the activities regulated | ||
by
this Act. | ||
(f) "Mortgage loan" "residential mortgage loan" or | ||
"home
mortgage loan" shall mean any loan primarily for | ||
personal, family, or household use that is secured by a | ||
mortgage, deed of trust, or other equivalent consensual | ||
security interest on a dwelling as defined in Section | ||
103(v) of the federal Truth in Lending Act, or residential | ||
real estate upon which is constructed or intended to be | ||
constructed a dwelling. | ||
(g) "Lender" shall mean any person, partnership, | ||
association,
corporation, or any other entity who either | ||
lends or invests money in
residential mortgage loans. | ||
(h) "Ultimate equitable owner" shall mean a person who, | ||
directly
or indirectly, owns or controls an ownership | ||
interest in a corporation,
foreign corporation, alien | ||
business organization, trust, or any other form
of business | ||
organization regardless of whether the person owns or | ||
controls
the ownership interest through one or more persons | ||
or one or more proxies,
powers of attorney, nominees, | ||
corporations, associations, partnerships,
trusts, joint | ||
stock companies, or other entities or devices, or any
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combination thereof. | ||
(i) "Residential mortgage financing transaction" shall | ||
mean the negotiation,
acquisition, sale, or arrangement | ||
for or the offer to negotiate, acquire,
sell, or arrange | ||
for, a residential mortgage loan or residential mortgage
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loan commitment. | ||
(j) "Personal residence address" shall mean a street | ||
address and shall
not include a post office box number. | ||
(k) "Residential mortgage loan commitment" shall mean | ||
a contract for
residential mortgage loan financing. | ||
(l) "Party to a residential mortgage financing | ||
transaction" shall mean a
borrower, lender, or loan broker | ||
in a residential mortgage financing
transaction. | ||
(m) "Payments" shall mean payment of all or any of the | ||
following:
principal, interest and escrow reserves for | ||
taxes, insurance and other related
reserves, and | ||
reimbursement for lender advances. | ||
(n) "Commissioner" shall mean the Commissioner of | ||
Banks and Real Estate, except that, beginning on April 6, | ||
2009 (the effective date of Public Act 95-1047), all | ||
references in this Act to the Commissioner of Banks and | ||
Real Estate are deemed, in appropriate contexts, to be | ||
references to the Secretary of Financial and Professional | ||
Regulation, or his or her designee, including the Director | ||
of the Division of Banking of the Department of Financial | ||
and Professional Regulation. | ||
(n-1) "Director" shall mean the Director of the | ||
Division of Banking of the Department of Financial and | ||
Professional Regulation, except that, beginning on July | ||
31, 2009 (the effective date of Public Act 96-112), all | ||
references in this Act to the Director are deemed, in | ||
appropriate contexts, to be the Secretary of Financial and | ||
Professional Regulation, or his or her designee, including | ||
the Director of the Division of Banking of the Department | ||
of Financial and Professional Regulation. | ||
(o) "Loan brokering", "brokering", or "brokerage | ||
service" shall mean the act
of helping to obtain from | ||
another entity, for a borrower, a loan secured by
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residential real estate situated in Illinois or assisting a | ||
borrower in
obtaining a loan secured by residential real | ||
estate situated in Illinois in
return for consideration to | ||
be paid by either the borrower or the lender
including, but | ||
not limited to, contracting for the delivery of residential
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mortgage loans to a third party lender and soliciting, | ||
processing, placing,
or negotiating residential mortgage | ||
loans. | ||
(p) "Loan broker" or "broker" shall mean a person, | ||
partnership,
association, corporation, or limited | ||
liability company, other than
those persons, partnerships,
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associations, corporations, or limited liability companies | ||
exempted
from licensing pursuant to Section
1-4, | ||
subsection (d), of this Act, who performs the activities | ||
described
in subsections (c), (o), and (yy) of this | ||
Section. | ||
(q) "Servicing" shall mean the collection or | ||
remittance for or the
right or obligation to collect or | ||
remit for any lender, noteowner,
noteholder, or for a | ||
licensee's own account, of payments, interests,
principal, | ||
and trust items such as hazard insurance and taxes on a
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residential mortgage loan in accordance with the terms of | ||
the residential
mortgage loan; and includes loan payment | ||
follow-up, delinquency loan
follow-up, loan analysis and | ||
any notifications to the borrower that are
necessary to | ||
enable the borrower to keep the loan current and in good | ||
standing. "Servicing" includes management of third-party | ||
entities acting on behalf of a residential mortgage | ||
licensee for the collection of delinquent payments and the | ||
use by such third-party entities of said licensee's | ||
servicing records or information, including their use in | ||
foreclosure. | ||
(r) "Full service office" shall mean an office, | ||
provided by the licensee and not subleased from the | ||
licensee's employees, and staff in Illinois
reasonably | ||
adequate to handle efficiently communications, questions, | ||
and
other matters relating to any application for, or an | ||
existing home mortgage
secured by residential real estate | ||
situated in Illinois
with respect to which the licensee is | ||
brokering, funding originating,
purchasing, or servicing. | ||
The management and operation of each full service
office | ||
must include observance of good business practices such as | ||
proper signage; adequate,
organized, and accurate books | ||
and records; ample phone lines, hours of
business, staff | ||
training and supervision, and provision for a mechanism to
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resolve consumer inquiries, complaints, and problems. The | ||
Commissioner
shall issue regulations with regard to these | ||
requirements and shall include
an evaluation of compliance | ||
with this Section in his or her periodic
examination of | ||
each licensee. | ||
(s) "Purchasing" shall mean the purchase of | ||
conventional or
government-insured mortgage loans secured | ||
by residential real estate
situated in Illinois from either | ||
the lender or from the secondary market. | ||
(t) "Borrower" shall mean the person or persons who | ||
seek the services of
a loan broker, originator, or lender. | ||
(u) "Originating" shall mean the issuing of | ||
commitments for and funding of
residential mortgage loans. | ||
(v) "Loan brokerage agreement" shall mean a written | ||
agreement in which a
broker or loan broker agrees to do | ||
either of the following: | ||
(1) obtain a residential mortgage loan for the | ||
borrower or assist the
borrower in obtaining a | ||
residential mortgage loan; or | ||
(2) consider making a residential mortgage loan to | ||
the borrower. | ||
(w) "Advertisement" shall mean the attempt by | ||
publication,
dissemination, or circulation to induce, | ||
directly or indirectly,
any person to enter into a | ||
residential mortgage loan agreement or
residential | ||
mortgage loan brokerage agreement relative to a
mortgage | ||
secured by residential real estate situated in Illinois. | ||
(x) (Blank). "Residential Mortgage Board" shall mean | ||
the Residential Mortgage
Board created in Section 1-5 of | ||
this Act. | ||
(y) "Government-insured mortgage loan" shall mean any | ||
mortgage loan made
on the security of residential real | ||
estate insured by the Department of
Housing and Urban | ||
Development or Farmers Home Loan Administration, or
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guaranteed by the Veterans Administration. | ||
(z) "Annual audit" shall mean a certified audit of the | ||
licensee's books and
records and systems of internal | ||
control performed by a certified public
accountant in | ||
accordance with generally accepted accounting principles
| ||
and generally accepted auditing standards. | ||
(aa) "Financial institution" shall mean a savings and | ||
loan
association, savings bank, credit union, or a bank | ||
organized under the
laws of Illinois or a savings and loan | ||
association, savings bank,
credit union or a bank organized | ||
under the laws of the United States and
headquartered in | ||
Illinois. | ||
(bb) "Escrow agent" shall mean a third party, | ||
individual or entity
charged with the fiduciary obligation | ||
for holding escrow funds on a
residential mortgage loan | ||
pending final payout of those funds
in accordance with the | ||
terms of the residential mortgage loan. | ||
(cc) "Net worth" shall have the meaning ascribed | ||
thereto in Section 3-5
of this Act. | ||
(dd) "Affiliate" shall mean: | ||
(1) any entity that directly controls or is | ||
controlled by the licensee
and any other company that | ||
is directly affecting activities regulated by
this Act | ||
that is controlled by the company that controls the | ||
licensee; | ||
(2) any entity: | ||
(A) that is controlled, directly or | ||
indirectly, by a trust or otherwise,
by or for the | ||
benefit of shareholders who beneficially or | ||
otherwise
control, directly or indirectly, by | ||
trust or otherwise, the licensee or any
company | ||
that controls the licensee; or | ||
(B) a majority of the directors or trustees of | ||
which constitute a
majority of the persons holding | ||
any such office with the licensee or any
company | ||
that controls the licensee; | ||
(3) any company, including a real estate | ||
investment trust, that is
sponsored and advised on a | ||
contractual basis by the licensee or any
subsidiary or | ||
affiliate of the licensee. | ||
(ee) "First tier subsidiary" shall be defined by | ||
regulation
incorporating the comparable definitions used | ||
by the Office of the
Comptroller of the Currency and the | ||
Illinois Commissioner of Banks
and Real Estate. | ||
(ff) "Gross delinquency rate" means the quotient | ||
determined by dividing
(1) the sum of (i) the number of | ||
government-insured residential mortgage loans
funded or | ||
purchased by a licensee in the preceding calendar year that | ||
are
delinquent and (ii) the number of conventional | ||
residential mortgage loans
funded or purchased by the | ||
licensee in the preceding calendar year that are
delinquent | ||
by (2) the sum of (i) the number of government-insured | ||
residential
mortgage loans funded or purchased by the | ||
licensee in the preceding calendar
year and (ii) the number | ||
of conventional residential mortgage loans funded or
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purchased by the licensee in the preceding calendar year. | ||
(gg) "Delinquency rate factor" means the factor set by | ||
rule of the
Commissioner that is multiplied by the average | ||
gross delinquency rate of
licensees, determined annually | ||
for the immediately preceding calendar year, for
the | ||
purpose of determining which licensees shall be examined by | ||
the
Commissioner pursuant to subsection (b) of Section 4-8 | ||
of this Act. | ||
(hh) "Loan originator" means any natural person who, | ||
for compensation or in
the expectation of compensation, | ||
either directly or indirectly makes, offers to
make, | ||
solicits, places, or negotiates a residential mortgage | ||
loan. This definition applies only to Section 7-1 of this | ||
Act. | ||
(ii) "Confidential supervisory information" means any | ||
report of examination, visitation, or investigation | ||
prepared by the Commissioner under this Act, any report of | ||
examination visitation, or investigation prepared by the | ||
state regulatory authority of another state that examines a | ||
licensee, any document or record prepared or obtained in | ||
connection with or relating to any examination, | ||
visitation, or investigation, and any record prepared or | ||
obtained by the Commissioner to the extent that the record | ||
summarizes or contains information derived from any | ||
report, document, or record described in this subsection. | ||
"Confidential supervisory information" does not include | ||
any information or record routinely prepared by a licensee | ||
and maintained in the ordinary course of business or any | ||
information or record that is required to be made publicly | ||
available pursuant to State or federal law or rule.
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(jj) "Mortgage loan originator" means an individual | ||
who for compensation or gain or in the expectation of | ||
compensation or gain: | ||
(i) takes a residential mortgage loan application; | ||
or | ||
(ii) offers or negotiates terms of a residential | ||
mortgage loan. | ||
"Mortgage loan originator" includes an individual | ||
engaged in loan modification activities as defined in | ||
subsection (yy) of this Section. A mortgage loan originator | ||
engaged in loan modification activities shall report those | ||
activities to the Department of Financial and Professional | ||
Regulation in the manner provided by the Department; | ||
however, the Department shall not impose a fee for | ||
reporting, nor require any additional qualifications to | ||
engage in those activities beyond those provided pursuant | ||
to this Act for mortgage loan originators. | ||
"Mortgage loan originator" does not include an | ||
individual engaged solely as a loan processor or | ||
underwriter except as otherwise provided in subsection (d) | ||
of Section 7-1A of this Act. | ||
"Mortgage loan originator" does not include a person or | ||
entity that only performs real estate brokerage activities | ||
and is licensed in accordance with the Real Estate License | ||
Act of 2000, unless the person or entity is compensated by | ||
a lender, a mortgage broker, or other mortgage loan | ||
originator, or by any agent of that lender, mortgage | ||
broker, or other mortgage loan originator. | ||
"Mortgage loan originator" does not include a person or | ||
entity solely involved in extensions of credit relating to | ||
timeshare plans, as that term is defined in Section | ||
101(53D) of Title 11, United States Code. | ||
(kk) "Depository institution" has the same meaning as | ||
in Section 3 of the Federal Deposit Insurance Act, and | ||
includes any credit union. | ||
(ll) "Dwelling" means a residential structure or | ||
mobile home which contains one to 4 family housing units, | ||
or individual units of condominiums or cooperatives. | ||
(mm) "Immediate family member" means a spouse, child, | ||
sibling, parent, grandparent, or grandchild, and includes | ||
step-parents, step-children, step-siblings, or adoptive | ||
relationships. | ||
(nn) "Individual" means a natural person. | ||
(oo) "Loan processor or underwriter" means an | ||
individual who performs clerical or support duties as an | ||
employee at the direction of and subject to the supervision | ||
and instruction of a person licensed, or exempt from | ||
licensing, under this Act. "Clerical or support duties" | ||
includes subsequent to the receipt of an application: | ||
(i) the receipt, collection, distribution, and | ||
analysis of information common for the processing or | ||
underwriting of a residential mortgage loan; and | ||
(ii) communicating with a consumer to obtain the | ||
information necessary for the processing or | ||
underwriting of a loan, to the extent that the | ||
communication does not include offering or negotiating | ||
loan rates or terms, or counseling consumers about | ||
residential mortgage loan rates or terms. An | ||
individual engaging solely in loan processor or | ||
underwriter activities shall not represent to the | ||
public, through advertising or other means of | ||
communicating or providing information, including the | ||
use of business cards, stationery, brochures, signs, | ||
rate lists, or other promotional items, that the | ||
individual can or will perform any of the activities of | ||
a mortgage loan originator. | ||
(pp) "Nationwide Mortgage Licensing System and | ||
Registry" means a mortgage licensing system developed and | ||
maintained by the Conference of State Bank Supervisors and | ||
the American Association of Residential Mortgage | ||
Regulators for the licensing and registration of licensed | ||
mortgage loan originators. | ||
(qq) "Nontraditional mortgage product" means any | ||
mortgage product other than a 30-year fixed rate mortgage. | ||
(rr) "Person" means a natural person, corporation, | ||
company, limited liability company, partnership, or | ||
association. | ||
(ss) "Real estate brokerage activity" means any | ||
activity that involves offering or providing real estate | ||
brokerage services to the public, including: | ||
(1) acting as a real estate agent or real estate | ||
broker for a buyer, seller, lessor, or lessee of real | ||
property; | ||
(2) bringing together parties interested in the | ||
sale, purchase, lease, rental, or exchange of real | ||
property; | ||
(3) negotiating, on behalf of any party, any | ||
portion of a contract relating to the sale, purchase, | ||
lease, rental, or exchange of real property, other than | ||
in connection with providing financing with respect to | ||
any such transaction; | ||
(4) engaging in any activity for which a person | ||
engaged in the activity is required to be registered or | ||
licensed as a real estate agent or real estate broker | ||
under any applicable law; or | ||
(5) offering to engage in any activity, or act in | ||
any capacity, described in this subsection (ss). | ||
(tt) "Registered mortgage loan originator" means any | ||
individual that: | ||
(1) meets the definition of mortgage loan | ||
originator and is an employee of: | ||
(A) a depository institution; | ||
(B) a subsidiary that is: | ||
(i) owned and controlled by a depository | ||
institution; and | ||
(ii) regulated by a federal banking | ||
agency; or | ||
(C) an institution regulated by the Farm | ||
Credit Administration; and | ||
(2) is registered with, and maintains a unique | ||
identifier through, the Nationwide Mortgage Licensing | ||
System and Registry. | ||
(uu) "Unique identifier" means a number or other | ||
identifier assigned by protocols established by the | ||
Nationwide Mortgage Licensing System and Registry. | ||
(vv) "Residential mortgage license" means a license | ||
issued pursuant to Section 1-3, 2-2, or 2-6 of this Act. | ||
(ww) "Mortgage loan originator license" means a | ||
license issued pursuant to Section 7-1A, 7-3, or 7-6 of | ||
this Act. | ||
(xx) "Secretary" means the Secretary of the Department | ||
of Financial and Professional Regulation, or a person | ||
authorized by the Secretary or by this Act to act in the | ||
Secretary's stead. | ||
(yy) "Loan modification" means, for compensation or | ||
gain, either directly or indirectly offering or | ||
negotiating on behalf of a borrower or homeowner to adjust | ||
the terms of a residential mortgage loan in a manner not | ||
provided for in the original or previously modified | ||
mortgage loan. | ||
(zz) "Short sale facilitation" means, for compensation | ||
or gain, either directly or indirectly offering or | ||
negotiating on behalf of a borrower or homeowner to | ||
facilitate the sale of residential real estate subject to | ||
one or more residential mortgage loans or debts | ||
constituting liens on the property in which the proceeds | ||
from selling the residential real estate will fall short of | ||
the amount owed and the lien holders are contacted to agree | ||
to release their lien on the residential real estate and | ||
accept less than the full amount owed on the debt. | ||
The Commissioner may define by rule and regulation any | ||
terms used
in this Act for the efficient and clear | ||
administration of this Act. | ||
(Source: P.A. 98-749, eff. 7-16-14; 98-1081, eff. 1-1-15; | ||
99-78, eff. 7-20-15.)
| ||
(205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| ||
Sec. 4-1. Commissioner of Banks and Real Estate; functions, | ||
powers, and duties. The functions,
powers, and duties of the | ||
Commissioner of Banks and Real Estate shall include the | ||
following:
| ||
(a) to issue or refuse to issue any license as provided | ||
by this Act;
| ||
(b) to revoke or suspend for cause any license issued | ||
under this Act;
| ||
(c) to keep records of all licenses issued under this | ||
Act;
| ||
(d) to receive, consider, investigate, and act upon | ||
complaints made by
any person in connection with any | ||
residential mortgage licensee in this State;
| ||
(e) (blank); to consider and act upon any | ||
recommendations from the Residential
Mortgage Board;
| ||
(f) to prescribe the forms of and receive:
| ||
(1) applications for licenses; and
| ||
(2) all reports and all books and records required | ||
to be made by
any licensee under this Act, including | ||
annual audited financial statements
and annual reports | ||
of mortgage activity;
| ||
(g) to adopt rules and regulations necessary and proper | ||
for the
administration of this Act;
| ||
(h) to subpoena documents and witnesses and compel | ||
their attendance and
production, to administer oaths, and | ||
to require the production of any books,
papers, or other | ||
materials relevant to any inquiry authorized by this Act;
| ||
(h-1) to issue orders against any person, if the | ||
Commissioner has reasonable cause to believe that an | ||
unsafe, unsound, or unlawful practice has occurred, is | ||
occurring, or is about to occur, if any person has | ||
violated, is violating, or is about to violate any law, | ||
rule, or written agreement with the Commissioner, or for | ||
the purpose of administering the provisions of this Act and | ||
any rule adopted in accordance with the Act; | ||
(h-2) to address any inquiries to any licensee, or the | ||
officers thereof, in relation to its activities and | ||
conditions, or any other matter connected with its affairs, | ||
and it shall be the duty of any licensee or person so | ||
addressed, to promptly reply in writing to such inquiries. | ||
The Commissioner may also require reports from any licensee | ||
at any time the Commissioner may deem desirable;
| ||
(i) to require information with regard to any license | ||
applicant
as he or she may deem desirable, with due regard | ||
to the paramount interests
of the public as to the | ||
experience, background, honesty, truthfulness,
integrity, | ||
and competency of the license applicant as to financial
| ||
transactions involving primary or subordinate mortgage | ||
financing, and where
the license applicant is an entity | ||
other than an individual, as to the
honesty, truthfulness, | ||
integrity, and competency of any officer or director
of the | ||
corporation, association, or other entity, or the members | ||
of a
partnership;
| ||
(j) to examine the books and records of every licensee | ||
under this Act at
intervals as specified in Section 4-2;
| ||
(k) to enforce provisions of this Act;
| ||
(l) to levy fees, fines, and charges for services | ||
performed in administering
this Act; the aggregate of all | ||
fees collected by the Commissioner on and after
the | ||
effective date of this Act shall be paid promptly after | ||
receipt of the
same, accompanied by a detailed statement | ||
thereof, into the
Residential Finance Regulatory Fund | ||
under Section 4-1.5 of this Act; the amounts deposited into | ||
that Fund shall
be used for the ordinary and contingent | ||
expenses of the Office of Banks and
Real Estate. Nothing in | ||
this Act shall prevent continuing the practice of paying
| ||
expenses involving salaries, retirement, social security, | ||
and State-paid
insurance of State officers by | ||
appropriation from the General Revenue Fund.
| ||
(m) to appoint examiners, supervisors, experts, and | ||
special assistants as
needed to effectively and | ||
efficiently administer this Act;
| ||
(n) to conduct hearings for the purpose of:
| ||
(1) appeals of orders of the Commissioner;
| ||
(2) suspensions or revocations of licenses, or | ||
fining of licensees;
| ||
(3) investigating:
| ||
(i) complaints against licensees; or
| ||
(ii) annual gross delinquency rates; and
| ||
(4) carrying out the purposes of this Act;
| ||
(o) to exercise exclusive visitorial power over a | ||
licensee unless otherwise authorized by this Act or as | ||
vested in the courts, or upon prior consultation with the | ||
Commissioner, a foreign residential mortgage regulator | ||
with an appropriate supervisory interest in the parent or | ||
affiliate of a licensee;
| ||
(p) to enter into cooperative agreements with state | ||
regulatory authorities of other states to provide for | ||
examination of corporate offices or branches of those | ||
states and to accept reports of such examinations;
| ||
(q) to assign an examiner or examiners to monitor the | ||
affairs of a licensee with whatever frequency the | ||
Commissioner determines appropriate and to charge the | ||
licensee for reasonable and necessary expenses of the | ||
Commissioner, if in the opinion of the Commissioner an | ||
emergency exists or appears likely to occur;
| ||
(r) to impose civil penalties of up to $50 per day | ||
against a licensee for failing to respond to a regulatory | ||
request or reporting requirement; and
| ||
(s) to enter into agreements in connection with the | ||
Nationwide Mortgage Licensing System and Registry. | ||
(Source: P.A. 98-1081, eff. 1-1-15.)
| ||
(205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
| ||
Sec. 4-8. Delinquency; examination.
| ||
(a) The Commissioner shall obtain from the U.S. Department | ||
of Housing and
Urban Development that Department's loan | ||
delinquency data.
| ||
(b) The Commissioner shall conduct as part of an | ||
examination of each licensee a review of the licensee's loan | ||
delinquency data.
| ||
This subsection shall not be construed as a limitation
of | ||
the Commissioner's examination authority under Section 4-2 of | ||
this Act or as
otherwise provided in this Act.
The Commissioner | ||
may require a licensee to provide loan delinquency
data as the | ||
Commissioner deems necessary for the proper enforcement
of the | ||
Act.
| ||
(c) The purpose of the examination under subsection (b) | ||
shall be
to determine whether the loan delinquency data of the
| ||
licensee has resulted from practices which deviate from
sound | ||
and accepted mortgage underwriting practices, including but | ||
not
limited to credit fraud, appraisal fraud and property | ||
inspection fraud.
For the purpose of conducting this | ||
examination, the Commissioner may accept
materials prepared | ||
for the U.S. Department of Housing and Urban Development.
At | ||
the conclusion of the examination, the Commissioner shall make | ||
his or
her findings available to the Residential Mortgage | ||
Board.
| ||
(d) The Commissioner, at his or her discretion, may hold | ||
public
hearings, or at the direction of the Residential | ||
Mortgage Board, shall hold
public hearings. Such testimony | ||
shall be by a homeowner or mortgagor or his
agent, whose | ||
residential interest is affected by the activities of the
| ||
residential mortgage licensee subject to such hearing.
At such | ||
public hearing, a witness may present testimony on his or her | ||
behalf
concerning only his or her home, or home mortgage or a | ||
witness may authorize a
third party to appear on his or her | ||
behalf. The testimony shall be
restricted to information and | ||
comments related to a specific residence or
specific | ||
residential mortgage application or applications for a | ||
residential
mortgage or residential loan transaction. The | ||
testimony must be preceded
by either a letter of complaint or a | ||
completed consumer complaint form
prescribed by the | ||
Commissioner.
| ||
(e) The Commissioner shall, at the conclusion of the public | ||
hearings,
release his or her findings and shall also make | ||
public any action taken
with respect to the licensee. The | ||
Commissioner shall also give full
consideration to the findings | ||
of this examination whenever reapplication is
made by the | ||
licensee for a new license under this Act.
| ||
(f) A licensee that is examined pursuant to subsection (b)
| ||
shall submit to the Commissioner a plan which shall be designed | ||
to reduce that
licensee's loan delinquencies. The plan shall be | ||
implemented by the
licensee as approved by the Commissioner. A | ||
licensee that is
examined pursuant to subsection (b) shall | ||
report monthly,
for a one year period, one, 2, and 3 month loan | ||
delinquencies.
| ||
(g) Whenever the Commissioner finds that a licensee's loan | ||
delinquencies
on insured mortgages is unusually high within a | ||
particular
geographic area, he or she shall require that | ||
licensee to submit such
information as is necessary to | ||
determine whether that licensee's practices
have constituted | ||
credit fraud, appraisal fraud or property inspection
fraud. The | ||
Commissioner shall promulgate such rules as are necessary to
| ||
determine whether any licensee's loan delinquencies are
| ||
unusually high within a particular area.
| ||
(Source: P.A. 99-15, eff. 1-1-16.)
| ||
(205 ILCS 635/1-5 rep.) | ||
Section 20. The Residential Mortgage License Act of 1987 is | ||
amended by repealing Section 1-5.
| ||
Section 99. Effective date. This Act takes effect upon | ||
becoming law.
| ||