98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB1738

 

Introduced , by Rep. Tom Cross

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 635/1-3  from Ch. 17, par. 2321-3

    Amends the Residential Mortgage License Act of 1987. Makes a technical change in a Section concerning the necessity of obtaining a license.


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A BILL FOR

 

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1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Residential Mortgage License Act of 1987 is
5amended by changing Section 1-3 as follows:
 
6    (205 ILCS 635/1-3)  (from Ch. 17, par. 2321-3)
7    Sec. 1-3. Necessity for License; Scope of Act.
8    (a) No person, partnership, association, corporation or
9other entity shall engage in the the business of brokering,
10funding, originating, servicing or purchasing of residential
11mortgage loans without first obtaining a license from the
12Commissioner in accordance with the licensing procedure
13provided in this Article I and such regulations as may be
14promulgated by the Commissioner. The licensing provisions of
15this Section shall not apply to any entity engaged solely in
16commercial mortgage lending or to any person, partnership
17association, corporation or other entity exempted pursuant to
18Section 1-4, subsection (d), of this Act or in accordance with
19regulations promulgated by the Commissioner hereunder. No
20provision of this Act shall apply to an exempt person or entity
21as defined in items (1) and (1.5) of subsection (d) of Section
221-4 of this Act. Notwithstanding anything to the contrary in
23the preceding sentence, an individual acting as a mortgage loan

 

 

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1originator who is not employed by and acting for an entity
2described in item (1) of subsection (tt) of Section 1-4 of this
3Act shall be subject to the mortgage loan originator licensing
4requirements of Article VII of this Act.
5    Effective January 1, 2011, no provision of this Act shall
6apply to an exempt person or entity as defined in item (1.8) of
7subsection (d) of Section 1-4 of this Act. Notwithstanding
8anything to the contrary in the preceding sentence, an
9individual acting as a mortgage loan originator who is not
10employed by and acting for an entity described in item (1) of
11subsection (tt) of Section 1-4 of this Act shall be subject to
12the mortgage loan originator licensing requirements of Article
13VII of this Act, and provided that an individual acting as a
14mortgage loan originator under item (1.8) of subsection (d) of
15Section 1-4 of this Act shall be further subject to a
16determination by the U.S. Department of Housing and Urban
17Development through final rulemaking or other authorized
18agency determination under the federal Secure and Fair
19Enforcement for Mortgage Licensing Act of 2008.
20    (b) No person, partnership, association, corporation, or
21other entity except a licensee under this Act or an entity
22exempt from licensing pursuant to Section 1-4, subsection (d),
23of this Act shall do any business under any name or title, or
24circulate or use any advertising or make any representation or
25give any information to any person, which indicates or
26reasonably implies activity within the scope of this Act.

 

 

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1    (c) The Commissioner may, through the Attorney General,
2request the circuit court of either Cook or Sangamon County to
3issue an injunction to restrain any person from violating or
4continuing to violate any of the foregoing provisions of this
5Section.
6    (d) When the Commissioner has reasonable cause to believe
7that any entity which has not submitted an application for
8licensure is conducting any of the activities described in
9subsection (a) hereof, the Commissioner shall have the power to
10examine all books and records of the entity and any additional
11documentation necessary in order to determine whether such
12entity should become licensed under this Act.
13    (d-1) The Commissioner may issue orders against any person
14if the Commissioner has reasonable cause to believe that an
15unsafe, unsound, or unlawful practice has occurred, is
16occurring, or is about to occur, if any person has violated, is
17violating, or is about to violate any law, rule, or written
18agreement with the Commissioner, or for the purposes of
19administering the provisions of this Act and any rule adopted
20in accordance with this Act.
21    (e) Any person, partnership, association, corporation or
22other entity who violates any provision of this Section commits
23a business offense and shall be fined an amount not to exceed
24$25,000.
25    (f) Each person, partnership, association, corporation or
26other entity conducting activities regulated by this Act shall

 

 

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1be issued one license. Each office, place of business or
2location at which a residential mortgage licensee conducts any
3part of his or her business must be recorded with the
4Commissioner pursuant to Section 2-8 of this Act.
5    (g) Licensees under this Act shall solicit, broker, fund,
6originate, service and purchase residential mortgage loans
7only in conformity with the provisions of this Act and such
8rules and regulations as may be promulgated by the
9Commissioner.
10    (h) This Act applies to all entities doing business in
11Illinois as residential mortgage bankers, as defined by "An Act
12to provide for the regulation of mortgage bankers", approved
13September 15, 1977, as amended, regardless of whether licensed
14under that or any prior Act. Any existing residential mortgage
15lender or residential mortgage broker in Illinois whether or
16not previously licensed, must operate in accordance with this
17Act.
18    (i) This Act is a successor Act to and a continuance of the
19regulation of residential mortgage bankers provided in, "An Act
20to provide for the regulation of mortgage bankers", approved
21September 15, 1977, as amended.
22    Entities and persons subject to the predecessor Act shall
23be subject to this Act from and after its effective date.
24(Source: P.A. 96-112, eff. 7-31-09; 96-1216, eff. 1-1-11;
2597-143, eff. 7-14-11.)