Illinois General Assembly - Full Text of HB4410
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Full Text of HB4410  102nd General Assembly

HB4410enr 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB4410 EnrolledLRB102 20964 RJF 29860 b

1    AN ACT concerning State government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the Real
5Estate Valuation Task Force Act.
 
6    Section 5. Findings. The General Assembly finds and
7declares the following:
8        (1) Two federal agencies, the Federal Home Owners'
9    Loan Corporation and the Federal Housing Administration,
10    played a major role in the development of the modern home
11    mortgage origination industry.
12        (2) Both federal agencies explicitly considered the
13    racial and ethnic make-up of neighborhoods when
14    underwriting loans and valuing the real estate to be used
15    as home loan collateral.
16        (3) Both agencies devalued property or refused to make
17    loans secured by property in communities of color.
18        (4) The harmful consequences of this discrimination
19    remain unresolved.
 
20    Section 10. Real Estate Valuation Task Force.
21    (a) The Real Estate Valuation Task Force is hereby
22established.

 

 

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1    (b) The Task Force shall consist of the following members:
2        (1) 4 members appointed one each by the Speaker of the
3    House of Representatives, the Minority Leader of the House
4    of Representatives, the President of the Senate, and the
5    Minority Leader of the Senate;
6        (2) the Secretary of Financial and Professional
7    Regulation, or a designee;
8        (3) the Director of Commerce and Economic Opportunity,
9    or a designee;
10        (4) the Director of Human Rights, or a designee;
11        (5) the Director of Revenue, or a designee;
12        (6) the Executive Director of the Illinois Housing
13    Development Authority, or a designee;
14        (7) a representative of a statewide banking
15    association representing banks of all asset sizes,
16    appointed by the Governor;
17        (8) a representative of a statewide banking
18    association exclusively representing banks with assets
19    below $20,000,000,000, appointed by the Governor;
20        (9) a representative of a statewide association
21    representing credit unions, appointed by the Governor;
22        (10) a representative of an agency, organization, or
23    association advocating for fair housing, appointed by the
24    Governor;
25        (11) a representative of an agency, organization, or
26    association for consumer protection, appointed by the

 

 

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1    Governor; and
2        (12) a representative of a statewide appraisal
3    organization, appointed by the Governor.
4    (c) Initial appointments to the Task Force shall be made
5as soon as practicable after the effective date of this Act.
6The Task Force shall hold its first meeting within a
7reasonable period of time after the completion of the
8appointment of its members, and shall convene regularly to
9carry out its duties and submit the reports required under
10this Act. At its first meeting, the Task Force shall elect its
11chair and any other officers from among its members.
12    (d) Members of the Task Force shall serve without
13compensation.
14    (e) The Department of Financial and Professional
15Regulation shall provide administrative and other support to
16the Task Force. Each agency and entity represented on the Task
17Force shall also share with the Task Force any data of the
18agency or entity necessary for the Task Force to carry out its
19duties under this Act.
 
20    Section 15. Task Force duties.
21    (a) The Task Force shall have the following duties:
22        (1) harmonize to the greatest extent possible the
23    various collateral underwriting standards and guidance of
24    the agencies and entities represented on the Task Force
25    governing residential and commercial real estate

 

 

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1    valuations, including standards and guidance with respect
2    to appraisals, non-traditional and alternative methods of
3    providing real estate property evaluations, such as
4    automated valuation models, processes, and procedures for
5    managing reconsiderations of value by consumers, and
6    standards and guidance with respect to common collateral
7    underwriting challenges, such as energy efficient housing
8    and limited or inactive markets;
9        (2) to the extent that standards or guidance described
10    under paragraph (1) are not harmonized, the Task Force
11    shall issue a report to the General Assembly explaining
12    why harmonization cannot or should not be implemented;
13        (3) establish specific definitions for limited or
14    inactive housing markets in which comparable sales are
15    limited or unavailable over a certain period of time, and
16    establish greater flexibilities and guidance for
17    appraisals and any underwriting processes associated with
18    appraisals conducted in such markets, such as the ability
19    to consider market evidence for similar properties in
20    other geographic areas or utilizing a range of value;
21        (4) aggregate data across Task Force members and
22    conduct a study to determine whether there are racial
23    disparities at both the borrower and community level in
24    the valuation and price of the residential real estate to
25    be used as collateral for mortgage applications processed
26    by Task Force members;

 

 

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1        (5) identify specific causes of such racial
2    disparities and (i) adopt changes to address such causes;
3    or (ii) if the Task Force determines that additional
4    statutory authority is needed to adopt such changes, issue
5    a report to the General Assembly describing the needed
6    statutory authority; and
7        (6) evaluate whether there are any barriers to entry
8    that are disproportionately preventing minorities from
9    entering into the appraisal profession.
10    (b) In carrying out its duties under this Act, the Task
11Force shall consult with the following individuals or
12entities: (i) civil rights advocates; (ii) consumer advocates;
13(iii) real estate appraisers; (iv) small lenders; (v) trade
14groups; (vi) appraisal management companies; (vii) experts on
15alternative valuation models; and (viii) an organization that
16adopts appraisal standards and appraiser qualification
17criteria.
 
18    Section 20. Reports.
19    (a) The Task Force shall submit a report to the Governor
20and the General Assembly not later than the expiration of the
2124-month period beginning on the effective date of this Act
22detailing the findings and any actions taken to further the
23duties of the Task Force as of such time and describing any
24planned efforts and activities.
25    (b) Periodically, after the submission of the initial

 

 

HB4410 Enrolled- 6 -LRB102 20964 RJF 29860 b

1report under subsection (a), the Task Force shall submit
2reports to the Governor and the General Assembly setting forth
3updates of the findings and actions taken to further the
4duties of the Task Force. The reports required under this
5subsection (b) shall continue for the duration of the Task
6Force.
 
7    Section 25. Termination of Task Force; repeal.
8    (a) The Task Force shall terminate upon the expiration of
9the 5-year period beginning on the effective date of this Act.
10    (b) This Act is repealed on January 1, 2029.