Illinois General Assembly - Bill Status for SB3177

Amends the Residential Mortgage License Act of 1987. Defines "loan modification" and "short sale facilitation". Authorizes the Director of the Division of Banking of the Department of Financial and Professional Regulation to establish relationships or contracts with the Nationwide Mortgage Licensing System and Registry. Provides that residential mortgage license applicants may be required to furnish information to the Nationwide Mortgage Licensing System and Registry. Provides that each application for a license or for the renewal of a license shall be accompanied by an averment stating that the applicant will not charge or collect advance payments from borrowers or homeowners for engaging in loan modification or short sale facilitation. Amends the Residential Real Property Disclosure Act. Provides that, for each loan, a broker or loan originator must submit information concerning the borrower's debt to income ratio for inclusion in the predatory lending database. Effective January 1, 2013.

Replaces everything after the enacting clause with substantially similar provisions to the introduced bill, but makes the following changes: (1) further amends the Residential Mortgage License Act of 1987 as follows: (a) provides that "mortgage loan originator" includes an individual engaged in loan modification activities (rather than loan modification and short sale facilitation activities); (b) provides that 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; (c) provides that each application for a license or for the renewal of a license shall be accompanied by an averment stating that the applicant will not charge or collect advance payments from borrowers or homeowners for engaging in loan modification (rather than loan modification or short sale facilitation); (d) deletes language providing that compilation financial statements submitted by a licensed loan broker in place of an audit conducted by the Secretary of Financial and Professional Regulation shall be prepared by an independent certified public accountant; (e) provides that a licensee who files a report with the Department that another licensee is engaged in one or more violations of the Act shall not be the subject of disciplinary action by the Department, unless the Department determines that the reporting person knowingly and willingly participated in the violation; (f) provides that it is unlawful for any individual who holds a mortgage loan originator license to provide short sale facilitation services unless he or she holds a license under the Real Estate License Act of 2000; (g) removes language providing that a real estate licensee who facilitates a short sale for and is the listing agent for a residential property is exempt from the Act; and (h) makes other changes; and (2) further amends the Residential Real Property Disclosure Act as follows: (a) provides that, for each loan, a broker or loan originator must submit the borrower's total monthly consumer debt (rather than the borrower's debt to income ratio) for inclusion in the predatory lending database; and (b) makes other changes. Effective January 1, 2013.

Further amends the Residential Real Property Disclosure Act. Provides that, as used in an Article concerning a predatory lending database, "originator" means a "mortgage loan originator" as defined in the Residential Mortgage License Act of 1987, except an exempt person. Provides that, as used in that Article, "exempt person" means 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 own investment without intent to make, acquire, or resell more than 3 residential mortgage loans in any one calendar year.

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