97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB2316

 

Introduced 2/18/2011, 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.


LRB097 07457 CEL 47566 b

 

 

A BILL FOR

 

HB2316LRB097 07457 CEL 47566 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 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    (b) No person, partnership, association, corporation, or
6other entity except a licensee under this Act or an entity
7exempt from licensing pursuant to Section 1-4, subsection (d),
8of this Act shall do any business under any name or title, or
9circulate or use any advertising or make any representation or
10give any information to any person, which indicates or
11reasonably implies activity within the scope of this Act.
12    (c) The Commissioner may, through the Attorney General,
13request the circuit court of either Cook or Sangamon County to
14issue an injunction to restrain any person from violating or
15continuing to violate any of the foregoing provisions of this
16Section.
17    (d) When the Commissioner has reasonable cause to believe
18that any entity which has not submitted an application for
19licensure is conducting any of the activities described in
20subsection (a) hereof, the Commissioner shall have the power to
21examine all books and records of the entity and any additional
22documentation necessary in order to determine whether such
23entity should become licensed under this Act.
24    (d-1) The Commissioner may issue orders against any person
25if the Commissioner has reasonable cause to believe that an
26unsafe, unsound, or unlawful practice has occurred, is

 

 

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1occurring, or is about to occur, if any person has violated, is
2violating, or is about to violate any law, rule, or written
3agreement with the Commissioner, or for the purposes of
4administering the provisions of this Act and any rule adopted
5in accordance with this Act.
6    (e) Any person, partnership, association, corporation or
7other entity who violates any provision of this Section commits
8a business offense and shall be fined an amount not to exceed
9$25,000.
10    (f) Each person, partnership, association, corporation or
11other entity conducting activities regulated by this Act shall
12be issued one license. Each office, place of business or
13location at which a residential mortgage licensee conducts any
14part of his or her business must be recorded with the
15Commissioner pursuant to Section 2-8 of this Act.
16    (g) Licensees under this Act shall solicit, broker, fund,
17originate, service and purchase residential mortgage loans
18only in conformity with the provisions of this Act and such
19rules and regulations as may be promulgated by the
20Commissioner.
21    (h) This Act applies to all entities doing business in
22Illinois as residential mortgage bankers, as defined by "An Act
23to provide for the regulation of mortgage bankers", approved
24September 15, 1977, as amended, regardless of whether licensed
25under that or any prior Act. Any existing residential mortgage
26lender or residential mortgage broker in Illinois whether or

 

 

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1not previously licensed, must operate in accordance with this
2Act.
3    (i) This Act is a successor Act to and a continuance of the
4regulation of residential mortgage bankers provided in, "An Act
5to provide for the regulation of mortgage bankers", approved
6September 15, 1977, as amended.
7    Entities and persons subject to the predecessor Act shall
8be subject to this Act from and after its effective date.
9(Source: P.A. 96-112, eff. 7-31-09; 96-1216, eff. 1-1-11.)