Section 1050.2165  Averments

Each application for a Loan Originator Certificate of Registration shall be accompanied by the following averments stating that the applicant:

a)         Will not obtain a Certificate of Registration through any false or fraudulent representation of a material fact or any omission of a material fact required by State law, or make any misrepresentation in any registration or license application.

b)         Will not make a false or misleading statement of a material fact, omit a required statement or make a false promise regarding a material fact, through advertising or other means, or engage in a course of misrepresentation.

c)         Will not engage in conduct that constitutes or dishonest dealings.

d)         Has not been convicted of any criminal offense; has not been subject to any adverse judgment in any jurisdiction involving financial crimes or criminal or civil act involving monies, breach of trust, moral turpitude, misfeasance or malfeasance; or has not been convicted in any jurisdiction of a crime that is a felony in that jurisdiction, which matter has not been previously disclosed to the Director in an initial or renewal application for a Certificate of Registration. The applicant will notify in writing the Director and his or her employing licensee within 10 calendar days after any change in status as averred under this subsection and shall describe fully all such convictions and adverse judgments.

e)         Will not knowingly make, propose, or solicit fraudulent, false, or misleading statements on any mortgage document or on any document related to a mortgage, including a mortgage application, real estate appraisal, or real estate settlement or closing document. For purposes of this subsection, "fraudulent, false, or misleading statement" does not include an inadvertent mathematical error, an inadvertent transposition of a number, a typographical error, or any other bona fide error.

f)         Will not knowingly instruct, solicit, propose, or cause a person to sign a borrower's signature not their own on a mortgage related document, or solicit, accept or execute any contract or other document related to the residential mortgage transaction that contains any blanks to be filled in after signing or initialing the contract or other document, except for forms authorizing the verification of application information.

g)         Will not discourage any applicant from seeking or participating in housing or financial counseling either before or after the consummation of a loan transaction, or fail to provide information on counseling resources upon request.

h)         Will not charge for any ancillary products or services, not essential to the basic loan transaction for which the consumer has applied, without the applicant's knowledge and written authorization.

i)          Will not charge for any ancillary products or services not actually provided in the transaction.

j)          Will not include any loan terms or features that could have a material financial impact on the applicant without clearly explaining their function and implications.

k)         Will give reasonable consideration to a borrower's ability to repay the debt and, if applicable, comply with Section 15 of the High Risk Home Loan Act.

l)          Will not take an application for a loan that carries a higher cost, due to credit risk and/or credit score, than the applicant is qualified for based on the underwriting guidelines utilized by the Loan Originator's employing licensee.

m)        Will not engage in any discrimination in loan origination activities as provided in applicable State and Federal statutes and regulations, including but not limited to the Equal Opportunity Credit Act (15 USC 1691).

(Source:  Amended at 29 Ill. Reg. 14808, effective September 26, 2005)