Illinois General Assembly - Bill Status for SB2908

Amends the Residential Mortgage Act of 1987. In provisions pertaining to applications for a residential mortgage license and disclosing information about any person, entity, or ultimate equitable owner that owns or controls stock ownership, requires reporting any class of stock of the license applicant (now 10% of any class of stock). Requires an applicant or licensee to aver with his or her license application or renewal that he or she will not knowingly employ or permit an individual to serve as an officer, director, or employee for the licensee if the individual has been convicted of a felony or any criminal offense relating to dishonesty or breach of trust unless the Commissioner of Banks and Real Estate has waived this requirement. Provides that the Commissioner may require a plan for the disposition of any residential mortgage loans not closed or funded when the licensee becomes inactive. Provides that the Commissioner may no longer require licensees to maintain a bond for errors and omissions in performing activities regulated by the Act. Provides that, beginning 2 years after the effective date of this amendatory Act, mortgage brokers and licensees may no longer substitute compilation financial statements with certain audits. Requires a licensee's corporate or full service branch office to comply with any applicable zoning laws or ordinances and home office or business regulations. Provides that the Commissioner may, in making rules with respect to net worth, establish separate requirements for not for profit entities or their affiliates that are serving economically depressed or financially underserved areas. Expands the Commissioner's functions, powers, and duties. Reinstates a Section to require licensees to submit annual reports of mortgage activity to the Commissioner. Creates a returned check policy for residential mortgage licensees and applicants. Increases certain fines.

Replaces everything after the enacting clause. Amends the Residential Mortgage License Act of 1987. Provides that the Commissioner of Banks and Real Estate may issue orders against any person if the Commissioner has reasonable cause to believe that an unsafe, unsound, or unlawful practice has occurred, is occurring, or is about to occur, if any person has violated, is violating, or is about to violate any law, rule, or written agreement with the Commissioner, or for the purposes of administering the provisions of the Act and any rule adopted in accordance with the Act. Increases specific fines. Makes a change in the definition of "exempt person or entity". Deletes language entitling members of the Residential Mortgage Board to a per diem and expenses. Provides that the Commissioner may impose conditions on a license if the Commissioner determines that the conditions are necessary or appropriate. Provides that the Commissioner may require the licensee to provide a plan for the disposition of any residential mortgage loans not closed or funded when the license becomes inactive. Provides that the Commissioner may allow a licensee with an inactive license to conduct activities regulated by th Act for the sole purpose of assisting borrowers in the closing or funding of loans for which the loan application was taken from a borrower while the license was active. Makes changes in provisions concerning the annual audit and the powers and duties of the Commissioner of Banks and Real Estate. Provides that the location and operation of a full service office shall be in compliance with any applicable zoning laws or ordinances and home office or business regulations. Provides guidelines for the disclosure of confidential supervisory information. Provides that the Commissioner shall post notice of an order revoking or suspending a license or fining a licensee on an agency Internet site maintained by the Commissioner (rather than publishing the notice in a newspaper of general circulation). Requires each licensee, except residential mortgage brokers, to file an annual report with the Commissioner that shall disclose such information as the Commissioner requires. Provides that, whenever, in the opinion of the Commissioner, any director, officer, or employee of a licensee shall have violated any law, rule, or order relating to that licensee or shall have obstructed or impeded any examination or investigation by the Commissioner, shall have engaged in an unsafe, unsound, or unlawful practice in conducting the business of the licensee, or shall have violated any law or engaged or participated in any unsafe, unsound or unlawful practice in connection with any licensee or other business entity such that the character and fitness of the director, officer, or employee does not assure reasonable promise of safe, sound, and lawful operation of the licensee, the Commissioner may issue an order of removal. Makes other changes.

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