100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2617

 

Introduced 2/7/2018, by Sen. Pamela J. Althoff

 

SYNOPSIS AS INTRODUCED:
 
See Index

    Amends the Appraisal Management Company Registration Act. Makes changes to definitions. Provides that federally regulated appraisal management companies shall register with the Department of Financial and Professional Regulation and pay all fees associated with registering a federally regulated appraisal management company. Requires a registration to state the name of the registrant and the address of the principal office and provides that such registration is not transferable or assignable. Requires that each registrant file an annual report with the Secretary of Financial and Professional Regulation that gives relevant information regarding compliance with federal and State rules. Allows the Secretary to investigate an appraisal management company at any time. Allows the Department to set fees for appraiser panels and the national registry. Allows the Department to take disciplinary action for failure to pay appraiser panel fees or national registry fees. Allows the Department to consider an applicant's moral character when granting or denying a registration. Excludes an appraisal management company from being registered or included on the national registry list if the company is owned by a person who has had his or her appraiser license or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked. Requires that an applicant shall submit his or her fingerprints to the Department of State Police and pay all fees associated with a criminal history records background check. Allows an administrator, executor, or guardian of an appraisal management company to apply for a registration. Makes other changes. Effective immediately.


LRB100 16106 SMS 31225 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB2617LRB100 16106 SMS 31225 b

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 Appraisal Management Company Registration
5Act is amended by changing Sections 10, 15, 20, 25, 40, 55, 65,
6and 160 and by adding Sections 17, 37, 43, 47, 67, 68, 163, and
7177 as follows:
 
8    (225 ILCS 459/10)
9    Sec. 10. Definitions. In this Act:
10    "Address of record" means the principal designated address
11recorded by the Department in the applicant's or registrant's
12application file or registration file maintained by the
13Department's registration maintenance unit. It is the duty of
14the applicant or registrant to inform the Department of any
15change of address, and the changes must be made either through
16the Department's website or by contacting the Department's
17registration maintenance unit within a prescribed time period
18as defined by rule.
19    "Applicant" means a person or entity who applies to the
20Department for a registration under this Act.
21    "Appraisal" means (noun) the act or process of developing
22an opinion of value; an opinion of value (adjective) of or
23pertaining to appraising and related functions.

 

 

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1    "Appraisal firm" means an appraisal entity that is 100%
2owned and controlled by a person or persons licensed in
3Illinois as a certified general real estate appraiser or a
4certified residential real estate appraiser. An appraisal firm
5does not include an appraisal management company.
6    "Appraisal management company" means any corporation,
7limited liability company, partnership, sole proprietorship,
8subsidiary, unit, or other business entity that directly or
9indirectly: (1) provides appraisal management services to
10creditors or secondary mortgage market participants; (2)
11provides appraisal management services in connection with
12valuing the consumer's principal dwelling as security for a
13consumer credit transaction (including consumer credit
14transactions incorporated into securitizations); and (3)
15within a given year, oversees an appraiser panel of 16 or more
16State-certified appraisers in Illinois or 25 or more
17State-certified or State-licensed appraisers in 2 or more
18jurisdictions. "Appraisal management company" includes a
19hybrid entity. performs the following appraisal management
20services: (1) administers networks of independent contractors
21or employee appraisers to perform real estate appraisal
22assignments for clients; (2) receives requests for real estate
23appraisal services from clients and, for a fee paid by the
24client, enters into an agreement with one or more independent
25appraisers to perform the real estate appraisal services
26contained in the request; or (3) otherwise serves as a

 

 

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1third-party broker of appraisal management services between
2clients and appraisers.
3    "Appraisal management services" means one or more of the
4following:
5        (1) recruiting, selecting, and retaining appraisers;
6        (2) contracting with State-certified or State-licensed
7    appraisers to perform appraisal assignments;
8        (3) managing the process of having an appraisal
9    performed, including providing administrative services
10    such as receiving appraisal orders and appraisal reports;
11    submitting completed appraisal reports to creditors and
12    secondary market participants; collecting compensation
13    from creditors, appraisers, or secondary market
14    participants for services provided; or paying appraisers
15    for services performed; or
16        (4) reviewing and verifying the work of appraisers.
17    "Appraiser panel" means a network, list, or roster of
18licensed or certified appraisers approved by the appraisal
19management company or by the end-user client to perform
20appraisals for the appraisal management company. "Appraisal
21panel" includes both appraisers accepted by an appraisal
22management company for consideration for future appraisal
23assignments and appraisers engaged by an appraisal management
24company to perform one or more appraisals.
25    "Appraiser panel fee" means the amount collected from a
26registrant that includes an appraisal management company's

 

 

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1national registry fee.
2    "Appraisal report" means a written appraisal by an
3appraiser to a client.
4    "Appraisal practice service" means valuation services
5performed by an individual acting as an appraiser, including,
6but not limited to, appraisal, or appraisal review, or
7appraisal consulting.
8    "Appraiser" means a person who performs real estate or real
9property appraisals.
10    "Assignment result" means an appraiser's opinions and
11conclusions developed specific to an assignment.
12    "Audit" includes, but is not limited to, an annual or
13special audit, visit, or review necessary under this Act or
14required by the Secretary or the Secretary's authorized
15representative in carrying out the duties and responsibilities
16under this Act.
17    "Board" means the Real Estate Appraisal Administration and
18Disciplinary Board.
19    "Client" means the party or parties who engage an appraiser
20by employment or contract in a specific appraisal assignment.
21    "Controlling Person" means:
22        (1) an owner, officer, or director of an entity seeking
23    to offer appraisal management services;
24        (2) an individual employed, appointed, or authorized
25    by an appraisal management company who has the authority
26    to:

 

 

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1            (A) enter into a contractual relationship with a
2        client for the performance of an appraisal management
3        service or appraisal practice service; and
4            (B) enter into an agreement with an appraiser for
5        the performance of a real estate appraisal activity; or
6        (3) an individual who possesses, directly or
7    indirectly, the power to direct or cause the direction of
8    the management or policies of an appraisal management
9    company; or .
10        (4) an individual who will act as the sole compliance
11    officer with regard to this Act and any rules adopted under
12    this Act.
13    "Coordinator" means the Coordinator of the Appraisal
14Management Company Registration Unit of the Department or his
15or her designee.
16    "Covered transaction" means a consumer credit transaction
17secured by a consumer's principal dwelling.
18    "Department" means the Department of Financial and
19Professional Regulation.
20    "Email address of record" means the designated email
21address recorded by the Department in the applicant's
22application file or the registrant's registration file
23maintained by the Department's registration maintenance unit.
24    "Entity" means a corporation, a limited liability company,
25partnership, a sole proprietorship, or other entity providing
26services or holding itself out to provide services as an

 

 

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1appraisal management company or an appraisal management
2service.
3    "End-user client" means any person who utilizes or engages
4the services of an appraiser through an appraisal management
5company.
6    "Federally regulated appraisal management company" means
7an appraisal management company that is owned and controlled by
8an insured depository institution, as defined in 12 U.S.C.
91813, or an insured credit union, as defined in 12 U.S.C. 1752,
10and regulated by the Office of the Comptroller of the Currency,
11the Federal Reserve Board, the National Credit Union
12Association, or the Federal Deposit Insurance Corporation.
13    "Financial institution" means any bank, savings bank,
14savings and loan association, credit union, mortgage broker,
15mortgage banker, registrant under the Consumer Installment
16Loan Act or the Sales Finance Agency Act, or a corporate
17fiduciary, subsidiary, affiliate, parent company, or holding
18company of any registrant, or any institution involved in real
19estate financing that is regulated by State or federal law.
20    "Hybrid entity" means an appraisal management company that
21hires an appraiser as an employee to perform an appraisal and
22engages an independent contractor to perform an appraisal.
23    "Person" means individuals, entities, sole
24proprietorships, corporations, limited liability companies,
25and alien, foreign, or domestic partnerships, foreign or
26domestic, except that when the context otherwise requires, the

 

 

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1term may refer to a single individual or other described
2entity.
3    "Principal dwelling" means a residential structure that
4contains one to 4 units, whether or not that structure is
5attached to real property. "Principal dwelling" includes an
6individual condominium unit, cooperative unit, manufactured
7home, mobile home, and trailer, if it is used as a residence.
8    "Principal office" means the actual, physical business
9address, which shall not be a post office box or a virtual
10business address, of a registrant, at which (i) the Department
11may contact the registrant and (ii) records required under this
12Act are maintained.
13    "Qualified to transact business in this State" means being
14in compliance with the requirements of the Business Corporation
15Act of 1983.
16    "Quality control review" means a review of an appraisal
17report for compliance and completeness, including grammatical,
18typographical, or other similar errors, unrelated to
19developing an opinion of value.
20    "Real estate" means an identified parcel or tract of land,
21including any improvements.
22    "Real estate related financial transaction" means any
23transaction involving:
24        (1) the sale, lease, purchase, investment in, or
25    exchange of real property, including interests in property
26    or the financing thereof;

 

 

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1        (2) the refinancing of real property or interests in
2    real property; and
3        (3) the use of real property or interest in property as
4    security for a loan or investment, including mortgage
5    backed securities.
6    "Real property" means the interests, benefits, and rights
7inherent in the ownership of real estate.
8    "Secretary" means the Secretary of Financial and
9Professional Regulation.
10    "USPAP" means the Uniform Standards of Professional
11Appraisal Practice as adopted by the Appraisal Standards Board
12under Title XI.
13    "Valuation" means any estimate of the value of real
14property in connection with a creditor's decision to provide
15credit, including those values developed under a policy of a
16government sponsored enterprise or by an automated valuation
17model or other methodology or mechanism.
18    "Written notice" means a communication transmitted by mail
19or by electronic means that can be verified between an
20appraisal management company and a licensed or certified real
21estate appraiser.
22(Source: P.A. 97-602, eff. 8-26-11.)
 
23    (225 ILCS 459/15)
24    Sec. 15. Exemptions.
25    (a) Nothing in this Act shall apply to any of the

 

 

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1following:
2        (1) an agency of the federal, State, county, or
3    municipal government or an officer or employee of a
4    government agency, or person, described in this Section
5    when acting within the scope of employment of the officer
6    or employee;
7        (2) a corporate relocation company when the appraisal
8    is not used for mortgage purposes and the end user client
9    is an employer company;
10        (3) any person licensed in this State under any other
11    Act while engaged in the activities or practice for which
12    he or she is licensed;
13        (4) any person licensed to practice law in this State
14    who is working with or on behalf of a client of that person
15    in connection with one or more appraisals for that client;
16        (5) an appraiser that enters into an agreement, whether
17    written or otherwise, with another appraiser for the
18    performance of an appraisal, and upon the completion of the
19    appraisal, the report of the appraiser performing the
20    appraisal is signed by both the appraiser who completed the
21    appraisal and the appraiser who requested the completion of
22    the appraisal, except that an appraisal management company
23    may not avoid the requirement of registration under this
24    Act by requiring an employee of the appraisal management
25    company who is an appraiser to sign an appraisal that was
26    completed by another appraiser who is part of the appraisal

 

 

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1    panel of the appraisal management company;
2        (6) any person acting as an agent of the Illinois
3    Department of Transportation in the acquisition or
4    relinquishment of land for transportation issues to the
5    extent of their contract scope; or
6        (7) a design professional entity when the appraisal is
7    not used for mortgage purposes and the end user client is
8    an agency of State government or a unit of local
9    government.
10    (b) Federally regulated appraisal management companies
11shall register with the Department and pay all fees associated
12with registering a federally regulated appraisal management
13company but are otherwise exempt from all other provisions in
14this Act.
15    (c) In the event that the Final Interim Rule of the federal
16Dodd-Frank Wall Street Reform and Consumer Protection Act
17provides that an appraisal management company is a subsidiary
18owned and controlled by a financial institution regulated by a
19federal financial institution's regulatory agency and is
20exempt from State appraisal management company registration
21requirements, the Department, shall, by rule, provide for the
22implementation of such an exemption.
23(Source: P.A. 97-602, eff. 8-26-11.)
 
24    (225 ILCS 459/17 new)
25    Sec. 17. Address of record; email address of record. All

 

 

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1applicants and registrants shall:
2        (1) provide a valid address and email address to the
3    Department, which shall serve as the address of record and
4    email address of record, respectively, at the time of
5    application for registration or renewal of a registration;
6    and
7        (2) inform the Department of any change of address of
8    record or email address of record within 14 days after such
9    change either through the Department's website or through a
10    multi-state registration system as designated by the
11    Secretary.
 
12    (225 ILCS 459/20)
13    Sec. 20. Restrictions and limitations. Beginning January
141, 2012, it is unlawful for a person or entity to act or assume
15to act as an appraisal management company as defined in this
16Act, to engage in the business of appraisal management service,
17or to advertise or hold himself or herself out to be a
18registered appraisal management company without first
19obtaining a registration issued by the Department under this
20Act. A person or entity that violates this Section is guilty of
21a Class A misdemeanor for the first offense and a Class 4
22felony for second and subsequent offenses.
23    Persons practicing as an appraisal management company in
24Illinois as of the effective date of this Act may continue to
25practice as provided in this Act until the Department has

 

 

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1adopted rules implementing this Act. To continue practicing as
2an appraisal management company after the adoption of rules,
3persons shall apply for registration within 180 days after the
4effective date of the rules. If an application is received
5during the 180-day period, the person may continue to practice
6until the Department acts to grant or deny registration. If an
7application is not filed within the 180-day period, the person
8must cease the practice at the conclusion of the 180-day period
9and until the Department acts to grant a registration to the
10person.
11(Source: P.A. 97-602, eff. 8-26-11.)
 
12    (225 ILCS 459/25)
13    Sec. 25. Powers and duties of the Department. Subject to
14the provisions of this Act:
15        (1) The Department may ascertain the qualifications
16    and fitness of applicants for registration and pass upon
17    the qualifications of applicants for registration.
18        (2) The Department may conduct hearings on proceedings
19    to refuse to issue or renew or to revoke registrations or
20    suspend, place on probation, or reprimand persons or
21    otherwise discipline individuals or entities subject to
22    this Act.
23        (3) The Department may adopt formulate all rules
24    required for the administration of this Act. With the
25    exception of emergency rules, any proposed rules,

 

 

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1    amendments, second notice materials, and adopted rule or
2    amendment materials or policy statements concerning
3    appraisal management companies shall be presented to the
4    Real Estate Appraisal Administration and Disciplinary
5    Board for review and comment. The recommendations of the
6    Board shall be presented to the Secretary for consideration
7    in making final decisions.
8        (4) The Department may maintain rosters of the names
9    and addresses of all registrants, and all persons whose
10    registrations have been suspended, revoked, or denied
11    renewal for cause within the previous calendar year or
12    otherwise disciplined pursuant to this Act and shall
13    transmit the roster, along with any national registry fees
14    obtained by it, to the entity specified by and in a manner
15    consistent with Title XI of the federal Financial
16    Institutions Reform, Recovery, and Enforcement Act of
17    1989. These rosters shall be available upon written request
18    and payment of the required fee as established by rule.
19(Source: P.A. 97-602, eff. 8-26-11.)
 
20    (225 ILCS 459/37 new)
21    Sec. 37. Transferability; assignability. A registration,
22when issued for an appraisal management company, shall state
23the name of the registrant and the address of the principal
24office. The registration is not transferable or assignable.
 

 

 

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1    (225 ILCS 459/40)
2    Sec. 40. Qualifications for registration.
3    (a) The Department may issue a certification of
4registration to practice under this Act to any applicant who
5applies to the Department on forms provided by the Department,
6pays the required non-refundable fees fee, is qualified to
7transact business in this State, and who provides the
8following:
9        (1) the business name of the applicant seeking
10    registration;
11        (2) the business address or addresses and contact
12    information of the applicant seeking registration;
13        (3) if the business applicant is not a corporation that
14    is domiciled in this State, then the name and contact
15    information for the company's agent for service of process
16    in this State;
17        (4) the name, address, and contact information for any
18    individual or any corporation, partnership, limited
19    liability company, association, or other business
20    applicant that owns 10% or more of the appraisal management
21    company along with a completed criminal history records
22    background check as required in Section 68;
23        (5) the name, address, and contact information for a
24    designated controlling person;
25        (6) a certification that the applicant will utilize
26    Illinois licensed appraisers to provide appraisal services

 

 

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1    within the State of Illinois;
2        (7) a certification that the applicant has a system in
3    place utilizing a licensed Illinois appraiser to review the
4    work of all employed and independent appraisers that are
5    performing real estate appraisal services in Illinois for
6    the appraisal management company on a periodic basis,
7    except for a quality control review, to verify that the
8    real estate appraisal assignments are being conducted in
9    accordance with USPAP;
10        (8) a certification that the applicant maintains a
11    detailed record of each service request that it receives
12    and the independent appraiser that performs the real estate
13    appraisal services for the appraisal management company;
14        (9) a certification that the employees of the appraisal
15    management company working on behalf of the appraisal
16    management company directly involved in providing
17    appraisal management services, will be appropriately
18    trained and familiar with the appraisal process to
19    completely provide appraisal management services;
20        (10) an irrevocable Uniform Consent to Service of
21    Process, under rule; and
22        (11) a certification that the applicant shall comply
23    with all other requirements of this Act and rules
24    established for the implementation of this Act.
25    (b) Applicants have 3 years from the date of application to
26complete the application process. If the process has not been

 

 

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1completed in 3 years, the application shall be denied, the fee
2shall be forfeited, and the applicant must reapply and meet the
3requirements in effect at the time of reapplication.
4(Source: P.A. 97-602, eff. 8-26-11.)
 
5    (225 ILCS 459/43 new)
6    Sec. 43. Application denial. If an application is denied,
7the applicant may, within 20 days after the date of the notice
8of denial, make a written request to the Secretary for a
9hearing on the application, and the Secretary shall set a time
10and place for the hearing. The hearing shall be set for a date
11after the receipt by the Secretary of the request for hearing,
12and notice of the time and place of the hearing shall be
13communicated to the applicant at least 10 days before the date
14of the hearing. The applicant shall pay the actual cost of
15making the transcript of the hearing before the Secretary
16issues his or her decision following the hearing. If, following
17the hearing, the application is denied, the Secretary shall
18prepare and keep on file in his or her office a written order
19of denial thereof that shall contain his or her findings and
20the reasons supporting the denial and shall communicate a copy
21to the applicant in a manner prescribed by the Department. A
22decision may be reviewed as provided in Section 135.
 
23    (225 ILCS 459/47 new)
24    Sec. 47. Annual report; investigation; costs. Each

 

 

SB2617- 17 -LRB100 16106 SMS 31225 b

1registrant shall annually file a report with the Secretary for
2the calendar year period from January 1 through December 31,
3giving relevant information as the Secretary may reasonably
4require concerning, and for the purpose of examination for
5compliance with federal and State regulations, the business and
6operations during the preceding fiscal year period of each
7registered appraisal management company conducted by the
8registrant within the State. The report shall be made under
9oath and shall be in the form prescribed by rule. The Secretary
10may, at any time, investigate a registrant and every person,
11partnership, association, limited liability company,
12corporation, or other business entity who or which is engaged
13in the business of operating an appraisal management company.
14For that purpose, the Secretary shall have free access to the
15offices and places of business and to records of all persons,
16firms, partnerships, associations, limited liability companies
17and members thereof, and corporations and to the officers and
18directors thereof that relate to the appraisal management
19company. The investigation may be conducted in conjunction with
20representatives of other State agencies or agencies of another
21state or of the United States as determined by the Secretary.
22The Secretary may require by subpoena the attendance of and
23examine under oath all persons whose testimony he or she may
24require relative to the appraisal management company, and in
25those cases the Secretary, or a representative whom he or she
26may designate, may administer oaths to all persons called as

 

 

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1witnesses, and the Secretary, or a representative of the
2Secretary, may conduct an audit, and there shall be paid to the
3Secretary for each audit a fee, to be established by rule, for
4each day or part thereof for each representative designated and
5required to conduct the audit.
 
6    (225 ILCS 459/55)
7    Sec. 55. Fees.
8    (a) The fees for the administration and enforcement of this
9Act, including, but not limited to, original registration fees,
10renewal fees, appraiser panel fees, national registry fees, and
11restoration fees, shall be set by the Department by rule. The
12fees shall not be refundable.
13    (b) All fees and other moneys collected under this Act
14shall be deposited in the Appraisal Administration Fund.
15    (c) The Department shall establish by rule a process for
16calculating, collecting, and paying appraisal panel fees and
17national registry fees in a manner consistent with Title XI of
18the federal Financial Institutions Reform, Recovery, and
19Enforcement Act of 1989.
20(Source: P.A. 97-602, eff. 8-26-11.)
 
21    (225 ILCS 459/65)
22    Sec. 65. Disciplinary actions.
23    (a) The Department may refuse to issue or renew, or may
24revoke, suspend, place on probation, reprimand, or take other

 

 

SB2617- 19 -LRB100 16106 SMS 31225 b

1disciplinary or non-disciplinary action as the Department may
2deem appropriate, including imposing fines not to exceed
3$25,000 for each violation, with regard to any registration for
4any one or combination of the following:
5        (1) Material misstatement in furnishing information to
6    the Department.
7        (2) Violations of this Act, or of the rules adopted
8    under this Act.
9        (3) Conviction of, or entry of a plea of guilty or nolo
10    contendere to any crime that is a felony under the laws of
11    the United States or any state or territory thereof or that
12    is a misdemeanor of which an essential element is
13    dishonesty, or any crime that is directly related to the
14    practice of the profession.
15        (4) Making any misrepresentation for the purpose of
16    obtaining registration or violating any provision of this
17    Act or the rules adopted under this Act pertaining to
18    advertising.
19        (5) Professional incompetence.
20        (6) Gross malpractice.
21        (7) Aiding or assisting another person in violating any
22    provision of this Act or rules adopted under this Act.
23        (8) Failing, within 30 days after requested, to provide
24    information in response to a written request made by the
25    Department.
26        (9) Engaging in dishonorable, unethical, or

 

 

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1    unprofessional conduct of a character likely to deceive,
2    defraud, or harm the public.
3        (10) Discipline by another state, District of
4    Columbia, territory, or foreign nation, if at least one of
5    the grounds for the discipline is the same or substantially
6    equivalent to those set forth in this Section.
7        (11) A finding by the Department that the registrant,
8    after having his or her registration placed on probationary
9    status, has violated the terms of probation.
10        (12) Willfully making or filing false records or
11    reports in his or her practice, including, but not limited
12    to, false records filed with State agencies or departments.
13        (13) Filing false statements for collection of fees for
14    which services are not rendered.
15        (14) Practicing under a false or, except as provided by
16    law, an assumed name.
17        (15) Fraud or misrepresentation in applying for, or
18    procuring, a registration under this Act or in connection
19    with applying for renewal of a registration under this Act.
20        (16) Being adjudicated liable in a civil proceeding for
21    violation of a state or federal fair housing law.
22        (17) Failure to obtain or maintain the bond required
23    under Section 50 of this Act.
24        (18) Failure to pay appraiser panel fees or national
25    registry fees.
26    (b) The Department may refuse to issue or may suspend

 

 

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1without hearing as provided for in the Civil Administrative
2Code the registration of any person who fails to file a return,
3or to pay the tax, penalty or interest shown in a filed return,
4or to pay any final assessment of the tax, penalty, or interest
5as required by any tax Act administered by the Illinois
6Department of Revenue, until such time as the requirements of
7any such tax Act are satisfied.
8    (c) An appraisal management company shall not be registered
9or included on the national registry if the company, in whole
10or in part, directly or indirectly, is owned by a person who
11has had an appraiser license or certificate refused, denied,
12canceled, surrendered in lieu of revocation, or revoked under
13the Real Estate Appraiser Licensing Act of 2002 or the rules
14adopted under that Act, or similar discipline by another state,
15the District of Columbia, a territory, a foreign nation, a
16governmental agency, or an entity authorized to impose
17discipline if at least one of the grounds for that discipline
18is the same as or the equivalent of one of the grounds for
19which a licensee may be disciplined as set forth under this
20Section.
21(Source: P.A. 97-602, eff. 8-26-11.)
 
22    (225 ILCS 459/67 new)
23    Sec. 67. Good moral character. If an applicant, or an
24ownership interest of the applicant, has had a license or
25registration revoked on a prior occasion, has been found to

 

 

SB2617- 22 -LRB100 16106 SMS 31225 b

1have committed any of the practices enumerated in Section 65,
2has been convicted of or entered a plea of guilty or nolo
3contendere to forgery, embezzlement, obtaining money under
4false pretenses, larceny, extortion, conspiracy to defraud, or
5a similar offense or offenses, or has been convicted of a
6felony involving moral turpitude in a court of competent
7jurisdiction in this State or any other state, district, or
8territory of the United States or of a foreign country, the
9Department may consider the prior revocation, conduct, or
10conviction in its determination of the applicant's moral
11character and whether to grant the applicant's registration. In
12its consideration of the prior revocation, conduct, or
13conviction, the Department shall take into account the nature
14of the conduct, any aggravating or extenuating circumstances,
15the time elapsed since the revocation, conduct, or conviction,
16the rehabilitation or restitution performed by the applicant,
17and any other factors that the Department deems relevant. When
18an applicant has made a false statement of material fact on his
19or her application, the false statement may in itself be
20sufficient grounds to revoke or refuse to issue a registration.
 
21    (225 ILCS 459/68 new)
22    Sec. 68. Criminal history records background check. Each
23individual applicant or controlling person on behalf of a
24business entity that applies for registration or restoration
25shall have his or her fingerprints submitted to the Department

 

 

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1of State Police in an electronic format that complies with the
2form and manner for requesting and furnishing criminal history
3record information as prescribed by the Department of State
4Police. These fingerprints shall be checked against the
5Department of State Police and Federal Bureau of Investigation
6criminal history record databases now and hereafter filed. The
7Department of State Police shall charge applicants a fee for
8conducting the criminal history records background check,
9which shall be deposited into the State Police Services Fund
10and shall not exceed the actual cost of the criminal history
11records background check. The Department of State Police shall
12furnish, pursuant to positive identification, records of
13Illinois convictions to the Department. The Department may
14require an applicant to pay a separate fingerprinting fee,
15either to the Department or to a vendor. The Department may
16adopt any rules necessary to implement this Section.
 
17    (225 ILCS 459/160)
18    Sec. 160. Business practice provisions; standards of
19practice.
20    (a) The Department may adopt by rule the Uniform Standards
21of Professional Appraisal Practice as published from time to
22time by the Appraisal Standards Board of the Appraisal
23Foundation. Appraisal management companies shall not interfere
24with adherence to the Uniform Standards of Professional
25Appraisal Practice or the Real Estate Appraiser Act of 2002 or

 

 

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1a subsequent Act by individuals licensed under the respective
2Acts.
3    (b) All payment policies from registrants under this Act to
4appraisers shall be written and definitive in nature.
5    (c) In the event of a value dispute or a requested
6reconsideration of value, the appraisal management company
7shall deliver all information that supports an increase or
8decrease in value to the appraiser. This information may
9include, but is not limited to, additional comparable sales.
10    (d) Each entity registered under this Act shall designate a
11controlling person who is responsible to assure that the
12company operates in compliance with this Act. The company shall
13file a form provided by the Department indicating the company's
14designation of the controlling person and such individual's
15acceptance of the responsibility. A registrant shall notify the
16Department of any change in its controlling person within 30
17days. Any registrant who does not comply with this subsection
18(d) shall have its registration suspended under the provisions
19set forth in this Act until the registrant complies with this
20Section. Any individual registrant who operates as a sole
21proprietorship shall be considered a designated controlling
22person for the purposes of this Act.
23    (e) Appraisal management companies or employees of an
24appraisal management company involved in a real estate
25transaction who have a reasonable basis to believe that an
26appraiser involved in the preparation of an appraisal for the

 

 

SB2617- 25 -LRB100 16106 SMS 31225 b

1real estate transaction has failed to comply with the Uniform
2Standards of Professional Appraisal Practice, has violated
3this Act or its rules, or has otherwise engaged in unethical
4conduct shall report the matter to the Department. Any
5registrant, employee, or individual acting on behalf of a
6registrant, acting in good faith, and not in a willful and
7wanton manner, in complying with this Act by reporting the
8conduct to the Department shall not, as a result of such
9actions, be subject to criminal prosecution or civil damages.
10    (f) Appraisal management companies are required to be in
11compliance with the appraisal independence standards
12established under Section 129E of the federal Truth in Lending
13Act, including the requirement that fee appraisers be
14compensated at a customary and reasonable rate when the
15appraisal management company is providing services for a
16consumer credit transaction secured by the principal dwelling
17of a consumer. To the extent permitted by federal law or
18regulation, the Department shall formulate rules pertaining to
19customary and reasonable rates of compensation for fee
20appraisers. The appraisal management company must certify to
21the Department that it has policies and procedures in place to
22be in compliance under the Final Interim Rule of the federal
23Dodd-Frank Wall Street Reform and Consumer Protection Act.
24    (g) No appraisal management company procuring or
25facilitating an appraisal may have a direct or indirect
26interest, financial or otherwise, in the real estate or the

 

 

SB2617- 26 -LRB100 16106 SMS 31225 b

1transaction that is the subject of the appraisal, as defined by
2the federal Dodd-Frank Wall Street Reform and Consumer
3Protection Act, any amendments thereto, or successor acts or
4other applicable provisions of federal law or regulations.
5(Source: P.A. 97-602, eff. 8-26-11.)
 
6    (225 ILCS 459/163 new)
7    Sec. 163. Appraiser panel; annual size calculation. An
8appraiser is deemed part of the appraisal management company's
9appraiser panel as of the earliest date the appraisal
10management company accepts the appraiser for consideration for
11future appraisal assignments in covered transactions or
12engages the appraiser to perform one or more appraisal
13assignments on behalf of a creditor or secondary mortgage
14market participant in a covered transaction, including an
15affiliate of such a creditor or participant. An appraiser is
16considered to be part of the appraisal management company's
17appraiser panel if deemed to remain on the panel until: (1) the
18date on which the appraisal management company sends written
19notice to the appraiser removing the appraiser from the
20appraiser panel; (2) the date the appraisal management company
21receives written notice from the appraiser asking to be removed
22from the appraiser panel; or (3) the date the appraisal
23management company receives notice of the death or incapacity
24of the appraiser. If an appraiser is removed from an appraisal
25management company's appraiser panel but the appraisal

 

 

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1management company subsequently accepts the appraiser for
2consideration for future assignments or engages the appraiser
3at any time during the 12 months after the appraiser's removal,
4the removal would be deemed not to have occurred and the
5appraiser is deemed to have been part of the appraisal
6management company's appraiser panel without interruption.
 
7    (225 ILCS 459/177 new)
8    Sec. 177. Administrator, executor, or guardian. If the
9ownership of an appraisal management company registered under
10this Act is held or contained in an estate subject to the
11control and supervision of an administrator, executor, or
12guardian appointed, approved, or by a court of the State of
13Illinois, having jurisdiction so to do, the administrator,
14executor, or guardian may, upon the entry of an order by the
15court granting leave to continue the operation of the appraisal
16management company, apply to the Secretary for a registration
17under this Act. If the administrator, executor, or guardian
18applies for an appraisal management company registration
19pursuant to this Section and complies with all of the
20provisions of this Act relating to the application for an
21appraisal management company registration, the Secretary may
22issue to the applicant an appraisal management company
23registration. An appraisal management company registration
24issued to an appraisal management company, for which an
25application for a registration is sought under this Section, if

 

 

SB2617- 28 -LRB100 16106 SMS 31225 b

1not previously surrendered, lapsed, or revoked, shall be
2surrendered, revoked, or otherwise terminated before a
3registration is issued pursuant to the application made under
4this Section.
 
5    Section 99. Effective date. This Act takes effect upon
6becoming law.

 

 

SB2617- 29 -LRB100 16106 SMS 31225 b

1 INDEX
2 Statutes amended in order of appearance
3    225 ILCS 459/10
4    225 ILCS 459/15
5    225 ILCS 459/17 new
6    225 ILCS 459/20
7    225 ILCS 459/25
8    225 ILCS 459/37 new
9    225 ILCS 459/40
10    225 ILCS 459/43 new
11    225 ILCS 459/47 new
12    225 ILCS 459/55
13    225 ILCS 459/65
14    225 ILCS 459/67 new
15    225 ILCS 459/68 new
16    225 ILCS 459/160
17    225 ILCS 459/163 new
18    225 ILCS 459/177 new