FINAN REG-LOAN ORIGINATORS-CE Senate SponsorsSen. Jacqueline Y. Collins-Michael Noland-David Koehler-Mattie Hunter House Sponsors(Rep. Monique D. Davis-Joseph M. Lyons-Mike Boland-Daniel J. Burke-Karen A. Yarbrough, Annazette Collins and Kenneth Dunkin) 1/13/2009SenateSession Sine Die 205 ILCS 635/7-2 new Amends the Residential Mortgage License Act of 1987. Provides that the Department of Financial and Professional Regulation shall adopt rules as to the required yearly continuing education of loan originators. Provides that the Secretary of Financial and Professional Regulation shall approve all continuing education courses and the providers of continuing education courses. Provides that all continuing education courses and the providers of continuing education courses shall be subject to a review by a panel appointed by the Secretary. Specifies the number of members on the review panel. Provides that the Secretary shall consider the recommendations of the review panel prior to approving or disapproving continuing education courses or the providers of continuing education courses.House Amendment No. 1 Specifies that the Department of Financial and Professional Regulation shall adopt rules as to the required yearly continuing education of loan originators who are required to register under the Act (instead of just loan originators). Provides that the Department shall adopt these rules before the end of fiscal year 2009.House Amendment No. 3 Adds reference to:30 ILCS 105/5.675 new30 ILCS 105/8h65 ILCS 95/11from Ch. 24, par. 1611205 ILCS 5/48from Ch. 17, par. 359205 ILCS 105/7-3from Ch. 17, par. 3307-3205 ILCS 105/7-19.1from Ch. 17, par. 3307-19.1205 ILCS 205/9002from Ch. 17, par. 7309-2205 ILCS 305/12from Ch. 17, par. 4413205 ILCS 635/2-6from Ch. 17, par. 2322-6205 ILCS 635/4-15 new205 ILCS 635/4-16 new205 ILCS 635/5-6 new205 ILCS 635/5-7 new205 ILCS 635/5-8 new205 ILCS 635/5-9 new205 ILCS 635/5-10 new205 ILCS 635/5-11 new205 ILCS 635/5-12 new205 ILCS 635/5-14 new205 ILCS 635/5-15 new205 ILCS 635/5-16 new205 ILCS 635/5-17 new765 ILCS 77/70765 ILCS 77/72765 ILCS 77/73 new765 ILCS 77/74765 ILCS 77/78 new765 ILCS 77/80 new765 ILCS 940/5815 ILCS 205/4.1afrom Ch. 17, par. 6406205 ILCS 635/2-2 rep.Deletes everything after the enacting clause. Reinserts the contents of the engrossed bill with the following changes. Amends the Home Equity Assurance Act. Provides that a governing commission with no less than $4,000,000 in its guarantee fund, may, if authorized by referendum, establish a Foreclosure Prevention Loan Fund to provide low interest emergency loans to eligible applicants that may be forced into foreclosure proceedings. Provides that if a majority of the voters on the public question approve the creation of a Foreclosure Prevention Loan Fund, the commission shall establish the program and administer the program with funds collected under the Guaranteed Home Equity Program, subject to specified conditions. Amends the Predatory Lending Database Article of the Residential Real Property Disclosure Act, the State Finance Act, and the Residential Mortgage License Act of 1987. Provides that the program area for the predatory lending database program is Cook County. Provides for inception dates for the program in specified areas of Cook County. Provides that the program shall be operational through April 30, 2013. Adds standards for recommending borrowers for counseling. Deletes provisions giving the Department of Financial and Professional Regulation authority to adopt rules regarding the determination of the program area, the inception date, and certain other matters. Adds and changes provisions regarding: definitions; contracts; confidentiality; costs; information to be submitted by a broker or loan originator for inclusion in the predatory lending database; exemptions; and other matters. Creates the Predatory Lending Database Program Fund as a special fund in the State treasury. Provides that moneys in the Fund shall appropriated to the Department of Financial and Professional Regulation to make grants to assist with implementation and development for the counseling agencies providing counseling to borrowers under the program. Provides that, during calendar years 2008 through 2012, each entity licensed under the Residential Mortgage License Act of 1987 shall pay, in addition to the license fees imposed under the Residential Mortgage License Act of 1987, an additional annual fee of $300. Provides that the additional annual fees shall be deposited into the Predatory Lending Database Program Fund. Amends the Illinois Banking Act. Provides that the amount of money from time to time deposited into the Bank and Trust Company Fund shall be used: (i) to offset the ordinary administrative expenses of the Commissioner of Banks and Real Estate or (ii) as a credit against specified fees (rather than the amounts to be used only to offset the ordinary administrative expenses of the Commissioner). Amends the Illinois Banking Act, the Illinois Savings and Loan Act of 1985, and the Savings Bank Act to provide that for the fiscal year beginning July 1, 2007, the Commissioner must adopt rules to adjust regulatory fee rates to those in effect prior to the escalation in published rates unless an audit by the Auditor General of banking regulatory oversight activities requires a different rate to be set. Amends the Illinois Savings and Loan Act of 1985. Provides that the amounts deposited into the Savings and Residential Finance Regulatory Fund shall be used for the ordinary and contingent expenses of the Commissioner, in administering the Illinois Savings and Loan Act of 1985, the Savings Bank Act, and the Residential Mortgage License Act of 1987. Provides that when the amount remaining in the Fund at the end of a fiscal year exceeds 25% of the total actual administrative and operational expenses incurred under the Illinois Savings and Loan Act of 1985, the Savings Bank Act, and the Residential Mortgage License Act of 1987 for that fiscal year, the excess must be credited to the appropriate institutions and entities and applied against their regulatory fees for the subsequent fiscal year. Amends the Illinois Credit Union Act to make changes in provisions concerning regulatory fees. Provides that when the balance in the Credit Union Fund at the end of a calendar year exceeds 25% of the actual administrative and operational expenses under the Act for that year, such excess shall be credited to credit unions and applied against their regulatory fees for the subsequent year. Specifies that the Department of Financial and Professional Regulation shall adopt rules as to the required yearly continuing education of loan originators who are required to register under the Act. Provides that the Department shall adopt these rules before the end of fiscal year 2009. Provides that the Attorney General may enforce violations of certain provisions under the Consumer Fraud and Deceptive Business Practices Act. Provides that a borrower injured by a violation of certain standards, duties, prohibitions, or requirements in the Act shall have a private right of action. Provides that no licensee shall make, provide, or arrange for a residential mortgage loan without verifying the borrower's reasonable ability to pay the principal and interest on the loan, real estate taxes, homeowner's insurance, assessments, and mortgage insurance premiums. Provides for the fiduciary duty of a broker. Prohibits prepayment penalties. Provides that a licensee shall provide notice of change in loan terms to a borrower. Provides that when comparing different loans, the licensee must not state or imply that monthly loan payments, if they include amounts escrowed for payment of property taxes and homeowner's insurance, are comparable with monthly loan payments that do not include these amounts. Requires lenders to provide the borrower with a complete copy of any appraisal. Prohibits licensees from making verbal promises to refinance on more favorable terms. Prohibits the following activities by a loan broker or lender: (i) equity stripping and loan flipping and (ii) encouraging default. Amends the Mortgage Rescue Fraud Act to change definitions for "distressed property purchaser" and "distressed property conveyance". Amends the Residential Real Property Disclosure Act. Excludes the Predatory Lending Database Program Fund from a provision that allows the Governor to transfer moneys from certain special funds into the General Revenue Fund. Amends the Residential Mortgage License Act of 1987 to provide that each entity licensed under the Act shall pay, in addition to the license fees imposed under the Residential Mortgage License Act of 1987, an additional annual fee of $300. The additional annual fee shall be deposited into the Predatory Lending Database Program Fund. Amends the Interest Act. Provides that certain provisions of the Interest Act apply to a residential mortgage loan. Makes other changes. Contains a severability clause. Effective immediately.Judicial Note (Admin Office of the Illinois Courts) This legislation would neither increase nor decrease the number of judges needed in the judicial branch.Housing Affordability Impact Note (Housing Development Authority) This legislation will have no effect on constructing, purchasing, owning, or selling a single-family residence. Judicial Note (Admin Office of the Illinois Courts) This legislation would neither increase nor decrease the number of judges needed in the judicial branch.Housing Affordability Impact Note (Housing Development Authority) This legislation will have no effect on constructing, purchasing, owning, or selling a single-family residence. Fiscal Note (Financial & Professional Regulation) SB 1674 has an approximate annual negative fiscal impact of $7,860,000 on the Illinois Department of Financial and Professional Regulation. Fiscal Note (Financial & Professional Regulation) SB 1674 has an approximate annual negative fiscal impact of $7,860,000 on the Illinois Department of Financial and Professional Regulation. 2/9/2007SenateFiled with Secretary by Sen. Jacqueline Y. Collins 2/9/2007SenateFirst Reading 2/9/2007SenateReferred to Rules 2/21/2007SenateAssigned to Financial Institutions 3/15/2007SenateDo Pass Financial Institutions; 009-000-000 3/15/2007SenatePlaced on Calendar Order of 2nd Reading March 20, 2007 3/20/2007SenateSecond Reading 3/20/2007SenatePlaced on Calendar Order of 3rd Reading March 21, 2007 3/21/2007SenateThird Reading - Passed; 059-000-000 3/21/2007HouseArrived in House 3/21/2007HousePlaced on Calendar Order of First Reading 3/27/2007HouseChief House Sponsor Rep. Monique D. Davis 3/27/2007HouseFirst Reading 3/27/2007HouseReferred to Rules Committee 4/26/2007HouseAdded Alternate Chief Co-Sponsor Rep. LaShawn K. Ford 4/30/2007HouseAssigned to Financial Institutions Committee 5/15/2007HouseHouse Amendment No. 1 Filed with Clerk by Financial Institutions Committee 5/15/2007HouseHouse Amendment No. 1 Adopted in Financial Institutions Committee; by Voice Vote 5/15/2007HouseDo Pass as Amended / Short Debate Financial Institutions Committee; 020-000-000 5/16/2007HousePlaced on Calendar 2nd Reading - Short Debate 5/17/2007HouseAlternate Chief Co-Sponsor Removed Rep. LaShawn K. Ford 5/17/2007HouseAdded Alternate Chief Co-Sponsor Rep. Mike Boland 5/17/2007HouseAdded Alternate Chief Co-Sponsor Rep. Kenneth Dunkin 5/17/2007HouseAdded Alternate Chief Co-Sponsor Rep. Karen A. Yarbrough 5/17/2007HouseAdded Alternate Chief Co-Sponsor Rep. Annazette Collins 5/17/2007HouseAlternate Chief Co-Sponsor Changed to Rep. Karen A. Yarbrough 5/17/2007HouseAlternate Chief Co-Sponsor Changed to Rep. Karen A. Yarbrough 5/29/2007HouseSecond Reading - Short Debate 5/29/2007HouseHeld on Calendar Order of Second Reading - Short Debate 5/29/2007HouseHouse Amendment No. 2 Filed with Clerk by Rep. Joseph M. Lyons 5/29/2007HouseHouse Amendment No. 2 Referred to Rules Committee 5/30/2007HouseHouse Amendment No. 2 Rules Refers to Financial Institutions Committee 5/30/2007HouseHouse Amendment No. 2 Recommends Be Adopted Financial Institutions Committee; 015-000-000 5/30/2007HouseHouse Amendment No. 2 Fiscal Note Requested as Amended by Rep. LaShawn K. Ford 5/30/2007HouseAlternate Chief Co-Sponsor Removed Rep. Mike Boland 5/30/2007HouseAlternate Chief Co-Sponsor Removed Rep. Annazette Collins 5/30/2007HouseAdded Alternate Co-Sponsor Rep. Mike Boland 5/30/2007HouseAdded Alternate Co-Sponsor Rep. Annazette Collins 5/30/2007HouseHouse Amendment No. 3 Filed with Clerk by Rep. Joseph M. Lyons 5/30/2007HouseHouse Amendment No. 3 Referred to Rules Committee 5/30/2007HouseHouse Amendment No. 3 Recommends Be Adopted Rules Committee; 003-001-000 5/30/2007HouseAdded Alternate Chief Co-Sponsor Rep. Joseph M. Lyons 5/30/2007HouseAdded Alternate Chief Co-Sponsor Rep. Daniel J. Burke 5/30/2007HouseHouse Amendment No. 2 Fiscal Note Requested as Amended - Withdrawn by Rep. LaShawn K. Ford 5/30/2007HouseHouse Amendment No. 3 Fiscal Note Requested as Amended by Rep. Brent Hassert 5/30/2007HouseHouse Amendment No. 2 Withdrawn by Rep. Joseph M. Lyons 5/30/2007HouseHouse Amendment No. 3 Adopted by Voice Vote 5/30/2007HouseNote / Motion Filed - Note Act Does Not Apply Rep. Joseph M. Lyons 5/30/2007HouseMotion Prevailed 066-050-000 5/30/2007HouseHouse Amendment No. 3 Fiscal Note Request as Amended is Inapplicable Rep. Brent Hassert 5/30/2007HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/30/2007HouseRemoved from Short Debate Status 5/30/2007HousePlaced on Calendar Order of 3rd Reading - Extended Debate 5/30/2007HouseThird Reading - Consideration Postponed 5/30/2007HousePlaced on Calendar - Consideration Postponed May 30, 2007 5/30/2007HouseThird Reading - Extended Debate - Passed 062-052-002 5/30/2007HouseAlternate Chief Co-Sponsor Changed to Rep. Joseph M. Lyons 5/30/2007HouseAlternate Chief Co-Sponsor Removed Rep. Kenneth Dunkin 5/30/2007HouseAdded Alternate Chief Co-Sponsor Rep. Mike Boland 5/30/2007HouseAlternate Co-Sponsor Removed Rep. Mike Boland 5/30/2007HouseAlternate Chief Co-Sponsor Changed to Rep. Daniel J. Burke 5/30/2007HouseAdded Alternate Co-Sponsor Rep. Kenneth Dunkin 5/31/2007SenateSecretary's Desk - Concurrence House Amendment(s) 01,03 5/31/2007SenatePlaced on Calendar Order of Concurrence House Amendment(s) 01,03 - June 1, 2007 5/31/2007SenateHouse Amendment No. 1 Motion to Concur Filed with Secretary Sen. Jacqueline Y. Collins 5/31/2007SenateHouse Amendment No. 1 Motion to Concur Referred to Rules 5/31/2007SenateHouse Amendment No. 3 Motion to Concur Filed with Secretary Sen. Jacqueline Y. Collins 5/31/2007SenateHouse Amendment No. 3 Motion to Concur Referred to Rules 5/31/2007SenateAdded as Chief Co-Sponsor Sen. Michael Noland 5/31/2007SenateAdded as Chief Co-Sponsor Sen. David Koehler 5/31/2007SenateJudicial Note Filed as amended by House Amendment No. 3, from the Supreme Court of Illinois, Administrative Office of the Illinois Courts. 5/31/2007SenateHousing Affordability Impact Note Filed as amended by House Amendment No. 3, from the Illinois Housing Development Authority. 5/31/2007SenateAdded as Chief Co-Sponsor Sen. Mattie Hunter 6/5/2007SenateJudicial Note Filed as amended by House Amendment No. 3, from the Supreme Court of Illinois, Administrative Office of the Illinois Courts. 6/6/2007SenateHousing Affordability Impact Note Filed as amended by House Amendment No. 3, from the Illinois Housing Development Authority. 6/22/2007SenateFiscal Note Filed as amended by House Amendment No. 3, from the Illinois Department of Financial and Professional Regulation.(Dated May 31, 2007) 6/22/2007SenateFiscal Note Filed as amended by House Amendment No. 3, from the Illinois Department of Financial and Professional Regulation.(Dated June 20, 2007) 12/3/2007SenatePursuant to Senate Rule 3-9(b) / Referred to Rules 1/13/2009SenateSession Sine Die