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Public Act 91-0586
SB445 Enrolled LRB9102296JSpc
AN ACT to amend the Residential Mortgage License Act of
1987 by changing Sections 2-2, 2-9, and 4-2.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Residential Mortgage License Act of 1987
is amended by changing Sections 2-2, 2-9, and 4-2 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 $1,800 annually, 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 within 9 months of 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.
(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.
(Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
(205 ILCS 635/2-9) (from Ch. 17, par. 2322-9)
Sec. 2-9. Posting of license. The license of a licensee
whose home office is within the State of Illinois or of an
out-of-state licensee shall be conspicuously posted in every
office of the licensee located in Illinois. Out-of-state
licensees without an Illinois office shall produce the
license upon request. Licensees originating loans on the
Internet shall post on their Internet web site their license
number and the address and telephone number of the
Commissioner. The license shall state the full name and
address of the licensee. The license shall not be
transferable or assignable. A separate certificate shall be
issued for posting in each full service Illinois office.
(Source: P.A. 86-137; 87-642.)
(205 ILCS 635/4-2) (from Ch. 17, par. 2324-2)
Sec. 4-2. Examination; prohibited activities.
(a) The business affairs of a licensee under this Act
shall be examined for compliance with this Act as often as
the Commissioner deems necessary and proper. The
Commissioner shall promulgate rules with respect to the
frequency and manner of examination. The Commissioner shall
appoint a suitable person to perform such examination. The
Commissioner and his appointees may examine the entire books,
records, documents, and operations of each licensee and may
examine any of the licensee's officers, directors, employees
and agents under oath.
(b) The Commissioner shall prepare a sufficiently full
and detailed report of each licensee's examination, shall
issue a copy of such report to each licensee's principals,
officers, or directors and shall take appropriate steps to
ensure correction of violations of this Act.
(c) Affiliates of a licensee shall be subject to
examination by the Commissioner on the same terms as the
licensee, but only when reports from, or examination of a
licensee provides for documented evidence of unlawful
activity between a licensee and affiliate benefiting,
affecting or deriving from the activities regulated by this
Act.
(d) The expenses of any examination of the licensee and
affiliates shall be borne by the licensee and assessed by the
Commissioner as established by regulation.
(e) Upon completion of the examination, the Commissioner
shall issue a report to the licensee. The examination
report, and the work papers of the report shall belong to the
Commissioner's office and may not be disclosed to anyone
other than the licensee, law enforcement officials or other
regulatory agencies that shall be defined in rules
promulgated by the Commissioner, or to a party presenting a
lawful subpoena to the Office of the Commissioner. Reports
required of licensees by the Commissioner under this Act and
results of examinations performed by the Commissioner under
this Act shall be the property of only the licensee and the
Commissioner. Access under this Act to the books and records
of each licensee shall be limited to the Commissioner and his
agents as provided in this Act and to the licensee and its
authorized agents and designees. No other person shall have
access to the books and records of a licensee under this Act.
(f) The Commissioner, deputy commissioners, and
employees of the Office of Banks and Real Estate shall be
subject to the restrictions provided in Section 2.5 of the
Office of Banks and Real Estate Act including, without
limitation, the restrictions on (i) owning shares of stock or
holding any other equity interest in an entity regulated
under this Act or in any corporation or company that owns or
controls an entity regulated under this Act; (ii) being an
officer, director, employee, or agent of an entity regulated
under this Act; and (iii) obtaining a loan or accepting a
gratuity from an entity regulated under this Act.
(g) After the initial examination for those licensees
whose only mortgage activity is servicing fewer than 1,000
Illinois residential loans, the examination required in
subsection (a) may be waived upon submission of a letter from
the licensee's independent certified auditor that the
licensee serviced fewer than 1,000 Illinois residential loans
during the year in which the audit was performed.
(Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96;
90-301, eff. 8-1-97.)
Section 99. Effective date. This Act takes effect upon
becoming law.
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