Full Text of SB1998 95th General Assembly
SB1998 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1998
Introduced 2/7/2008, by Sen. Jacqueline Y. Collins SYNOPSIS AS INTRODUCED: |
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Amends the Residential Mortgage License Act of 1987. Replaces references to the Commissioner of Banks and Real Estate with the Director of the Division of Banking of the Department of Financial and Professional Regulation throughout the Act. Makes changes in provisions concerning the necessity for a license. Makes changes defining the term "exempt person or entity" and "full service office". Makes changes in provisions concerning the application process for obtaining a license, including provisions concerning a multistate automated licensing system. Makes changes in provisions concerning the application form used to obtain a license. Makes changes in provisions that require specified averments that accompany an application for a license. Makes changes in provisions concerning the Director's refusal to issue a license, including failure to comply with provisions of the multistate automated licensing system. Makes changes in provisions concerning the license issuance and renewal. Makes changes in provisions concerning (i) additional full service offices and (ii) the requirements for posting a license. Makes changes in a provision concerning a licensee's office and staff within the State. Makes changes in provisions requiring that the business affairs of a licensee shall be examined for compliance. Makes changes in provisions concerning the suspension or revocation of a license. Makes changes in provisions concerning annual reports of certain activities. Makes other changes. Contains a nonacceleration clause. Effective January 1, 2009.
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A BILL FOR
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SB1998 |
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LRB095 18639 MJR 44726 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Residential Mortgage License Act of 1987 is | 5 |
| amended by changing Sections 1-3, 1-4, 1-5, 2-2, 2-3, 2-4, 2-5, | 6 |
| 2-6, 2-7, 2-8, 2-9, 2-11, 3-1, 3-2, 3-3, 3-4, 3-5, 3-9, 4-1, | 7 |
| 4-2, 4-3, 4-4, 4-5, 4-6, 4-8, 4-8.1, 4-8.2, 4-8.3, 4-10, 4-11, | 8 |
| 4-12, 4-13, 5-1, 6-3, and 7-1 and by adding Section 1-1.5 as | 9 |
| follows:
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| (205 ILCS 635/1-1.5 new) | 11 |
| Sec. 1-1.5. Findings. | 12 |
| The General Assembly finds that establishing and | 13 |
| implementing an automated multistate licensing system for | 14 |
| residential mortgage licensees is consistent with and furthers | 15 |
| the Purpose of Act and Policy Statement of Section 1-2. For | 16 |
| this purpose, the Director is authorized: | 17 |
| (a) to participate in a multistate automated licensing | 18 |
| system as the exclusive record collection and maintenance | 19 |
| system to apply for, renew, amend, and surrender residential | 20 |
| mortgage licenses; | 21 |
| (b) to adopt rules as necessary to implement a multistate | 22 |
| automated licensing system; | 23 |
| (c) to cause criminal history background checks by the |
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| Illinois State Police and Federal Bureau of Identification to | 2 |
| be performed for use in the multistate automated licensing | 3 |
| system; | 4 |
| (d) to require payments of licensing fees be made to the | 5 |
| third-party administrator for the multistate automated | 6 |
| licensing system for transfer to the State of Illinois and | 7 |
| payment of processing fees for use of the multistate automated | 8 |
| licensing system with those processing fees to be retained by | 9 |
| the third-party administrator; and | 10 |
| (e) to share licensing information in the multistate | 11 |
| automated licensing system pursuant to agreement with | 12 |
| participating state regulators and to protect licensing | 13 |
| information as so required by this Act or other applicable law.
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| (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3)
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| Sec. 1-3. Necessity for License; Scope of Act.
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| (a) No person, partnership, association, corporation or | 17 |
| other entity
shall engage in the business of brokering, | 18 |
| funding, originating, servicing
or purchasing of residential | 19 |
| mortgage loans without first obtaining a
license from the | 20 |
| Director Commissioner in accordance with the licensing | 21 |
| procedure
provided in this Article I and such regulations as | 22 |
| may be promulgated by
the Director Commissioner . The licensing | 23 |
| provisions of this Section shall not apply
to any entity | 24 |
| engaged solely in commercial mortgage lending or
to any person, | 25 |
| partnership association, corporation or other entity
exempted |
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| pursuant to Section 1-4, subsection (d), of this Act or in | 2 |
| accordance
with regulations promulgated by the Director | 3 |
| Commissioner hereunder. No person, partnership, association, | 4 |
| corporation, or other entity that is not required to obtain a | 5 |
| license under this Act shall be granted a license under this | 6 |
| Act. The license of any person, partnership, association, | 7 |
| corporation, or other entity that is not required to obtain a | 8 |
| license under this Act shall be void and shall not be renewed.
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| (b) No person, partnership, association, corporation, or | 10 |
| other entity
except a licensee under this Act or an entity | 11 |
| exempt from licensing
pursuant to Section 1-4, subsection (d), | 12 |
| of this Act shall do any business
under any name or title, or | 13 |
| circulate or use any advertising or make any
representation or | 14 |
| give any information to any person, which indicates or
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| reasonably implies activity within the scope
of this Act.
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| (c) The Director Commissioner may, through the Attorney | 17 |
| General, request the circuit
court of either Cook or Sangamon | 18 |
| County to issue an injunction to restrain
any person from | 19 |
| violating or continuing to violate any of the foregoing
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| provisions of this Section.
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| (d) When the Director Commissioner has reasonable cause to | 22 |
| believe that any
entity which has not submitted an application | 23 |
| for licensure is conducting
any of the activities described in | 24 |
| subsection (a) hereof, the Director Commissioner
shall have the | 25 |
| power to examine all books and records of the entity and any
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| additional documentation necessary in order to determine |
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| whether such
entity should become licensed under this Act.
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| (d-1) The Director Commissioner may issue orders against | 3 |
| any person if the Commissioner has reasonable cause to believe | 4 |
| that an unsafe, unsound, or unlawful practice has occurred, is | 5 |
| occurring, or is about to occur, if any person has violated, is | 6 |
| violating, or is about to violate any law, rule, or written | 7 |
| agreement with the Director Commissioner , or for the purposes | 8 |
| of administering the provisions of this Act and any rule | 9 |
| adopted in accordance with this Act.
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| (e) Any person, partnership, association, corporation or | 11 |
| other entity
who violates any provision of this Section commits | 12 |
| a business offense and
shall be fined an amount not to exceed | 13 |
| $25,000.
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| (f) Each person, partnership, association, corporation or | 15 |
| other entity
conducting activities regulated by this Act shall | 16 |
| be issued one license.
The person, partnership, association, | 17 |
| corporation, or other entity shall apply for a license only | 18 |
| under its real name and, if the application is approved, the | 19 |
| license shall be issued under and state the real name of the | 20 |
| person, partnership, association, corporation, or other | 21 |
| entity. In addition to the real name of the licensee, the | 22 |
| license shall also state any assumed name under which the | 23 |
| licensee intends to operate. A licensee may not operate under | 24 |
| an assumed name unless the Department has approved the use of | 25 |
| the assumed name and such name is stated on the license in | 26 |
| addition to the real name of the licensee. Each office, place |
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| of business or location at which a residential mortgage
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| licensee conducts any part of his or her business must
be | 3 |
| recorded with the Director Commissioner pursuant to Section 2-8 | 4 |
| of this Act.
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| (g) Licensees under this Act shall solicit, broker, fund, | 6 |
| originate,
service and purchase residential mortgage loans | 7 |
| only in conformity with the
provisions of this Act and such | 8 |
| rules and regulations as may be promulgated
by the Director | 9 |
| Commissioner .
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| (h) This Act applies to all entities doing business in | 11 |
| Illinois as
residential mortgage bankers, as defined by "An Act | 12 |
| to provide for the
regulation of mortgage bankers", approved | 13 |
| September 15, 1977, as amended,
regardless of whether licensed | 14 |
| under that or any prior Act. Any existing
residential mortgage | 15 |
| lender or residential mortgage broker in Illinois
whether or | 16 |
| not previously licensed, must operate in accordance with this | 17 |
| Act.
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| (i) This Act is a successor Act to and a continuance of the | 19 |
| regulation
of residential mortgage bankers provided in, "An Act | 20 |
| to provide for the
regulation of mortgage bankers", approved | 21 |
| September 15, 1977, as amended.
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| Entities and persons subject to the predecessor Act shall | 23 |
| be subject to
this Act from and after its effective date.
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| (Source: P.A. 93-1018, eff. 1-1-05.)
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| (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
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| Sec. 1-4. Definitions.
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| (a) "Residential real property" or "residential real | 3 |
| estate" shall mean
real property located in this State improved | 4 |
| by a one-to-four family
dwelling used or occupied, wholly or | 5 |
| partly, as the home or residence of
one or more persons and may | 6 |
| refer, subject to regulations of the Director
Commissioner , to | 7 |
| unimproved real property upon which those kinds dwellings
are | 8 |
| to be constructed.
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| (b) "Making a residential mortgage loan" or "funding a | 10 |
| residential mortgage
loan" shall mean for compensation or gain, | 11 |
| either directly or indirectly,
advancing funds or making a | 12 |
| commitment to advance funds to a loan applicant
for a | 13 |
| residential mortgage loan.
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| (c) "Soliciting, processing, placing, or negotiating a | 15 |
| residential
mortgage loan" shall mean for compensation or gain, | 16 |
| either directly or
indirectly, accepting or offering to accept | 17 |
| an application for a
residential mortgage loan, assisting or | 18 |
| offering to assist in the
processing of an application for a | 19 |
| residential mortgage loan on behalf of a
borrower, or | 20 |
| negotiating or offering to negotiate the terms or conditions
of | 21 |
| a residential mortgage loan with a lender on behalf of a | 22 |
| borrower
including, but not limited to, the submission of | 23 |
| credit packages for the
approval of lenders, the preparation of | 24 |
| residential mortgage loan closing
documents, including a | 25 |
| closing in the name of a broker.
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| (d) "Exempt person or entity" shall mean the following:
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| (1) (i) Any banking organization or foreign banking | 2 |
| corporation
licensed by the Director Illinois Commissioner | 3 |
| of Banks and Real Estate or the
United States Comptroller | 4 |
| of the Currency to transact business in this
State; (ii) | 5 |
| any national bank, federally chartered savings and loan
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| association, federal savings bank, federal credit union; | 7 |
| (iii) any pension
trust, bank trust, or bank trust company; | 8 |
| (iv) any bank, savings and loan
association, savings bank, | 9 |
| industrial bank, or credit union organized under the laws | 10 |
| of this
or any other state; (v) any Illinois Consumer | 11 |
| Installment Loan Act licensee;
(vi) any insurance company | 12 |
| authorized to transact business in this State;
(vii) any | 13 |
| entity engaged solely in commercial mortgage lending; | 14 |
| (viii) any
service corporation or subsidiary of a savings | 15 |
| and loan association or savings bank organized
under the | 16 |
| laws of this State , or any other state, or the service | 17 |
| corporation or subsidiary of a federally
chartered savings | 18 |
| and loan association or savings bank having
its principal | 19 |
| place of business in this State , other than a service
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| corporation or subsidiary licensed or entitled to | 21 |
| reciprocity under the Real Estate
License Act of 2000; or | 22 |
| (ix) any first tier subsidiary of a
bank, the charter of | 23 |
| which is issued under the Illinois Banking Act
by the | 24 |
| Illinois Department of Financial and Professional | 25 |
| Regulation, Division of Banking, or the charter of which is | 26 |
| issued under the banking laws of any other state |
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| Commissioner of Banks and Real Estate ,
or the first tier | 2 |
| subsidiary of a bank chartered by the United States
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| Comptroller of the Currency and that has its principal | 4 |
| place of business
in this State, provided that the first | 5 |
| tier subsidiary is regularly
examined by the Illinois | 6 |
| Commissioner of Banks and Real Estate
or the Comptroller of | 7 |
| the Currency, or a consumer compliance examination is
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| regularly conducted by the Federal Reserve Board .
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| (1.5) Any employee of a person or entity mentioned in
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| item (1) of this subsection.
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| (2) Any person or entity that does not originate
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| mortgage loans in the ordinary course of
business making or | 13 |
| acquiring residential mortgage loans
with his or her or its | 14 |
| own funds for his or her or its own investment
without | 15 |
| intent to
make, acquire, or resell more than 10 residential | 16 |
| mortgage loans in
any one calendar year.
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| (3) Any person employed by a licensee to assist in the | 18 |
| performance of
the activities regulated by this Act who is | 19 |
| compensated in any manner by
only one licensee.
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| (4) Any person licensed pursuant to the Real Estate
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| License Act of
2000, who engages only in the taking of | 22 |
| applications and credit
and
appraisal information to | 23 |
| forward to a licensee or an exempt entity under this
Act | 24 |
| and who is compensated by either a licensee or an exempt | 25 |
| entity under this
Act, but is not compensated by either the | 26 |
| buyer (applicant) or the seller.
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| (5) Any individual, corporation, partnership, or other | 2 |
| entity that
originates, services, or brokers residential | 3 |
| mortgage loans, as these
activities are defined in this | 4 |
| Act, and who or which receives no
compensation for those | 5 |
| activities, subject to the Director's Commissioner's
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| regulations with regard to the nature and amount of | 7 |
| compensation.
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| (6) A person who prepares supporting documentation for | 9 |
| a residential
mortgage loan application taken by a licensee | 10 |
| and performs ministerial
functions pursuant to specific | 11 |
| instructions of the licensee who neither
requires nor | 12 |
| permits the preparer to exercise his or her discretion or
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| judgment; provided that this activity is engaged in | 14 |
| pursuant to a binding,
written agreement between the | 15 |
| licensee and the preparer that:
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| (A) holds the licensee fully accountable for the | 17 |
| preparer's action; and
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| (B) otherwise meets the requirements of this | 19 |
| Section and this Act, does
not undermine the purposes | 20 |
| of this Act, and is approved by the Director
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| Commissioner .
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| (e) "Licensee" or "residential mortgage licensee" shall | 23 |
| mean a person,
partnership, association, corporation, or any | 24 |
| other entity who or which is
licensed pursuant to this Act to | 25 |
| engage in the activities regulated by
this Act.
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| (f) "Mortgage loan" "residential mortgage loan" or "home
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| mortgage loan" shall mean a loan to or for the benefit of any
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| natural person made primarily for personal, family, or | 3 |
| household use,
primarily secured by either a mortgage on | 4 |
| residential real property or
certificates of stock or other | 5 |
| evidence of ownership interests in and
proprietary leases from, | 6 |
| corporations, partnerships, or limited
liability companies | 7 |
| formed for the purpose
of cooperative ownership of residential | 8 |
| real property, all located in Illinois.
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| (g) "Lender" shall mean any person, partnership, | 10 |
| association,
corporation, or any other entity who either lends | 11 |
| or invests money in
residential mortgage loans.
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| (h) "Ultimate equitable owner" shall mean a person who, | 13 |
| directly
or indirectly, owns or controls an ownership interest | 14 |
| in a corporation,
foreign corporation, alien business | 15 |
| organization, trust, or any other form
of business organization | 16 |
| regardless of whether the person owns or controls
the ownership | 17 |
| interest through one or more persons or one or more proxies,
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| powers of attorney, nominees, corporations, associations, | 19 |
| partnerships,
trusts, joint stock companies, or other entities | 20 |
| or devices, or any
combination thereof.
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| (i) "Residential mortgage financing transaction" shall | 22 |
| mean the negotiation,
acquisition, sale, or arrangement for or | 23 |
| the offer to negotiate, acquire,
sell, or arrange for, a | 24 |
| residential mortgage loan or residential mortgage
loan | 25 |
| commitment.
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| (j) "Personal residence address" shall mean a street |
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| address and shall
not include a post office box number.
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| (k) "Residential mortgage loan commitment" shall mean a | 3 |
| contract for
residential mortgage loan financing.
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| (l) "Party to a residential mortgage financing | 5 |
| transaction" shall mean a
borrower, lender, or loan broker in a | 6 |
| residential mortgage financing
transaction.
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| (m) "Payments" shall mean payment of all or any of the | 8 |
| following:
principal, interest and escrow reserves for taxes, | 9 |
| insurance and other related
reserves, and reimbursement for | 10 |
| lender advances.
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| (n) "Director" "Commissioner" shall mean the Director of | 12 |
| the Division of Banking of the Department of Financial and | 13 |
| Professional Regulation Commissioner of Banks and Real Estate
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| or a person authorized by the Director, the Division of Banking | 15 |
| of the Department of Financial and Professional Regulation | 16 |
| Commissioner, the Office of Banks and Real Estate
Act , or this | 17 |
| Act to act in the Director's Commissioner's stead.
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| (o) "Loan brokering", "brokering", or "brokerage service" | 19 |
| shall mean the act
of helping to obtain from another entity, | 20 |
| for a borrower, a loan secured by
residential real estate | 21 |
| situated in Illinois or assisting a borrower in
obtaining a | 22 |
| loan secured by residential real estate situated in Illinois in
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| return for consideration to be paid by either the borrower or | 24 |
| the lender
including, but not limited to, contracting for the | 25 |
| delivery of residential
mortgage loans to a third party lender | 26 |
| and soliciting, processing, placing,
or negotiating |
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| residential mortgage loans.
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| (p) "Loan broker" or "broker" shall mean a person, | 3 |
| partnership,
association, corporation, or limited liability | 4 |
| company, other than
those persons, partnerships,
associations, | 5 |
| corporations, or limited liability companies exempted
from | 6 |
| licensing pursuant to Section
1-4, subsection (d), of this Act, | 7 |
| who performs the activities described
in subsections (c) and | 8 |
| (o) of this Section.
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| (q) "Servicing" shall mean the collection or remittance for | 10 |
| or the
right or obligation to collect or remit for any lender, | 11 |
| noteowner,
noteholder, or for a licensee's own account, of | 12 |
| payments, interests,
principal, and trust items such as hazard | 13 |
| insurance and taxes on a
residential mortgage loan in | 14 |
| accordance with the terms of the residential
mortgage loan; and | 15 |
| includes loan payment follow-up, delinquency loan
follow-up, | 16 |
| loan analysis and any notifications to the borrower that are
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| necessary to enable the borrower to keep the loan current and | 18 |
| in good standing.
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| (r) "Full service office" shall mean an office , provided by | 20 |
| the licensee and not subleased from the licensee's employees, | 21 |
| and staff in Illinois
reasonably adequate to handle efficiently | 22 |
| communications, questions, and
other matters relating to any | 23 |
| application for, or an existing home mortgage
secured by | 24 |
| residential real estate situated in Illinois
with respect to | 25 |
| which the licensee is brokering, funding originating,
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| purchasing, or servicing. The management and operation of each |
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| full service
office must include observance of good business | 2 |
| practices such as adequate,
organized, and accurate books and | 3 |
| records; ample phone lines, hours of
business, staff training | 4 |
| and supervision, and provision for a mechanism to
resolve | 5 |
| consumer inquiries, complaints, and problems. The Director | 6 |
| Commissioner
shall issue regulations with regard to these | 7 |
| requirements and shall include
an evaluation of compliance with | 8 |
| this Section in his or her periodic
examination of each | 9 |
| licensee.
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| (s) "Purchasing" shall mean the purchase of conventional or
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| government-insured mortgage loans secured by residential real | 12 |
| estate
situated in Illinois from either the lender or from the | 13 |
| secondary market.
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| (t) "Borrower" shall mean the person or persons who seek | 15 |
| the services of
a loan broker, originator, or lender.
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| (u) "Originating" shall mean the issuing of commitments for | 17 |
| and funding of
residential mortgage loans.
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| (v) "Loan brokerage agreement" shall mean a written | 19 |
| agreement in which a
broker or loan broker agrees to do either | 20 |
| of the following:
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| (1) obtain a residential mortgage loan for the borrower | 22 |
| or assist the
borrower in obtaining a residential mortgage | 23 |
| loan; or
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| (2) consider making a residential mortgage loan to the | 25 |
| borrower.
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| (w) "Advertisement" shall mean the attempt by publication,
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| dissemination, or circulation to induce, directly or | 2 |
| indirectly,
any person to enter into a residential mortgage | 3 |
| loan agreement or
residential mortgage loan brokerage | 4 |
| agreement relative to a
mortgage secured by residential real | 5 |
| estate situated in Illinois.
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| (x) "Residential Mortgage Board" shall mean the | 7 |
| Residential Mortgage
Board created in Section 1-5 of this Act.
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| (y) "Government-insured mortgage loan" shall mean any | 9 |
| mortgage loan made
on the security of residential real estate | 10 |
| insured by the Department of
Housing and Urban Development or | 11 |
| Farmers Home Loan Administration, or
guaranteed by the Veterans | 12 |
| Administration.
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| (z) "Annual audit" shall mean a certified audit of the | 14 |
| licensee's books and
records and systems of internal control | 15 |
| performed by a certified public
accountant in accordance with | 16 |
| generally accepted accounting principles
and generally | 17 |
| accepted auditing standards.
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| (aa) "Financial institution" shall mean a savings and loan
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| association, savings bank, credit union, or a bank organized | 20 |
| under the
laws of Illinois or a savings and loan association, | 21 |
| savings bank,
credit union or a bank organized under the laws | 22 |
| of the United States and
headquartered in Illinois.
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| (bb) "Escrow agent" shall mean a third party, individual or | 24 |
| entity
charged with the fiduciary obligation for holding escrow | 25 |
| funds on a
residential mortgage loan pending final payout of | 26 |
| those funds
in accordance with the terms of the residential |
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| mortgage loan.
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| (cc) "Net worth" shall have the meaning ascribed thereto in | 3 |
| Section 3-5
of this Act.
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| (dd) "Affiliate" shall mean:
| 5 |
| (1) any entity that directly controls or is controlled | 6 |
| by the licensee
and any other company that is directly | 7 |
| affecting activities regulated by
this Act that is | 8 |
| controlled by the company that controls the licensee;
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| (2) any entity:
| 10 |
| (A) that is controlled, directly or indirectly, by | 11 |
| a trust or otherwise,
by or for the benefit of | 12 |
| shareholders who beneficially or otherwise
control, | 13 |
| directly or indirectly, by trust or otherwise, the | 14 |
| licensee or any
company that controls the licensee; or
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| (B) a majority of the directors or trustees of | 16 |
| which constitute a
majority of the persons holding any | 17 |
| such office with the licensee or any
company that | 18 |
| controls the licensee;
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| (3) any company, including a real estate investment | 20 |
| trust, that is
sponsored and advised on a contractual basis | 21 |
| by the licensee or any
subsidiary or affiliate of the | 22 |
| licensee.
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| The Director Commissioner may define by rule and regulation | 24 |
| any terms used
in this Act for the efficient and clear | 25 |
| administration of this Act.
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| (ee) "First tier subsidiary" shall be defined by regulation
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| incorporating the comparable definitions used by the Office of | 2 |
| the
Comptroller of the Currency and the "Director" Illinois | 3 |
| Commissioner of Banks
and Real Estate .
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| (ff) "Gross delinquency rate" means the quotient | 5 |
| determined by dividing
(1) the sum of (i) the number of | 6 |
| government-insured residential mortgage loans
funded or | 7 |
| purchased by a licensee in the preceding calendar year that are
| 8 |
| delinquent and (ii) the number of conventional residential | 9 |
| mortgage loans
funded or purchased by the licensee in the | 10 |
| preceding calendar year that are
delinquent by (2) the sum of | 11 |
| (i) the number of government-insured residential
mortgage | 12 |
| loans funded or purchased by the licensee in the preceding | 13 |
| calendar
year and (ii) the number of conventional residential | 14 |
| mortgage loans funded or
purchased by the licensee in the | 15 |
| preceding calendar year.
| 16 |
| (gg) "Delinquency rate factor" means the factor set by rule | 17 |
| of the "Director"
Commissioner that is multiplied by the | 18 |
| average gross delinquency rate of
licensees, determined | 19 |
| annually for the immediately preceding calendar year, for
the | 20 |
| purpose of determining which licensees shall be examined by the | 21 |
| "Director"
Commissioner pursuant to subsection (b) of Section | 22 |
| 4-8 of this Act.
| 23 |
| (hh) "Loan originator" means any natural person who, for | 24 |
| compensation or in
the expectation of compensation, either | 25 |
| directly or indirectly makes, offers to
make, solicits, places, | 26 |
| or negotiates a residential mortgage loan.
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (ii) "Confidential supervisory information" means any | 2 |
| report of examination, visitation, or investigation prepared | 3 |
| by the "Director" Commissioner under this Act, any report of | 4 |
| examination visitation, or investigation prepared by the state | 5 |
| regulatory authority of another state that examines a licensee, | 6 |
| any document or record prepared or obtained in connection with | 7 |
| or relating to any examination, visitation, or investigation, | 8 |
| and any record prepared or obtained by the Director | 9 |
| Commissioner to the extent that the record summarizes or | 10 |
| contains information derived from any report, document, or | 11 |
| record described in this subsection. "Confidential supervisory | 12 |
| information" does not include any information or record | 13 |
| routinely prepared by a licensee and maintained in the ordinary | 14 |
| course of business or any information or record that is | 15 |
| required to be made publicly available pursuant to State or | 16 |
| federal law or rule.
| 17 |
| (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
| 18 |
| (205 ILCS 635/1-5) (from Ch. 17, par. 2321-5)
| 19 |
| Sec. 1-5. Residential Mortgage Board.
| 20 |
| (a) Board composition, compensation. There is created the | 21 |
| Residential
Mortgage Board composed of 5 members appointed by | 22 |
| the Director of the Division of Banks of the Department of | 23 |
| Financial and Professional Regulation Commissioner of Banks
| 24 |
| and Real Estate . The majority of persons
on the Board shall | 25 |
| have no financial interest in any residential mortgage
business |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| and one member shall be a representative of the Mortgage | 2 |
| Banking Trade
Association and one member shall be a | 3 |
| representative of the Mortgage Broker
Trade Association. | 4 |
| Members of the Board serving on the effective
date of this | 5 |
| amendatory Act of 1996 shall continue to serve their
unexpired | 6 |
| terms as members of the Residential Mortgage Board. Thereafter, | 7 |
| on
or before January 15 of each year, the Director Commissioner | 8 |
| shall appoint one or more
board members, as shall be necessary | 9 |
| to maintain a 5 member Board, whose terms
shall be for 3 years | 10 |
| commencing February 1 of the year in which they are
| 11 |
| respectively appointed.
| 12 |
| If a vacancy occurs on the Residential Mortgage Board, the | 13 |
| Director Commissioner
shall within 60 days appoint a new member | 14 |
| who shall hold office for the
remainder of the vacated term.
| 15 |
| The Board shall meet at the call of the chairman, who along | 16 |
| with a
Secretary, shall be selected by the Board from among its | 17 |
| members.
| 18 |
| The members of the Board serve at the pleasure of the | 19 |
| Director
Commissioner .
| 20 |
| (b) Duties of Board. The Residential Mortgage Board shall | 21 |
| assist the
Director Commissioner by:
| 22 |
| (1) submitting recommendations to the Director | 23 |
| Commissioner for the efficient
administration of this Act; | 24 |
| and
| 25 |
| (2) performing other duties as are prescribed by the | 26 |
| Director Commissioner .
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (c) Conflict of interest declarations. Each member of the | 2 |
| Residential
Mortgage Board shall file annually, no later than | 3 |
| February 1, with the Director
Commissioner a statement of his | 4 |
| or her current business transactions or
other affiliations with | 5 |
| any licensee under this Act.
The Director Commissioner may | 6 |
| adopt rules to avoid conflicts of interest on the
part of | 7 |
| members of the Residential Mortgage Board in connection with | 8 |
| their
position on the Board.
| 9 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 10 |
| (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
| 11 |
| Sec. 2-2. Application process; investigation; fee.
| 12 |
| (a) The Director Commissioner shall issue a license upon | 13 |
| completion of all of the
following:
| 14 |
| (1) The filing of an application for license with the | 15 |
| Director or a multistate automated licensing system | 16 |
| approved by the Director. If an application is filed with | 17 |
| an approved multistate automated licensing system, then | 18 |
| the Director shall issue a license upon completion of the | 19 |
| multistate automated licensing system .
| 20 |
| (2) The filing with the Director Commissioner of a | 21 |
| listing of judgments entered
against, and bankruptcy | 22 |
| petitions by, the license applicant for the
preceding 10 | 23 |
| years.
| 24 |
| (3) The payment, in certified funds, of
investigation | 25 |
| and application fees, the total of which shall be in an
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| amount equal to $2,700 annually, however, alternatively a | 2 |
| licensing fee equal to $2,700 shall be paid through an | 3 |
| approved credit card or Automated Clearing House (ACH) | 4 |
| payment to the multistate automated licensing system. The | 5 |
| Director the Commissioner may
increase the
investigation | 6 |
| and application fees by rule as provided in Section 4-11.
| 7 |
| (4) Except for a broker applying to renew a license, | 8 |
| the filing of an
audited balance sheet including all | 9 |
| footnotes prepared by a certified public
accountant in | 10 |
| accordance with generally accepted accounting principles | 11 |
| and
generally accepted auditing principles which evidences | 12 |
| that the applicant meets
the net worth requirements of | 13 |
| Section 3-5.
| 14 |
| (5) The filing of proof satisfactory to the Director | 15 |
| Commissioner that the
applicant, the members thereof if the | 16 |
| applicant is a partnership or
association, the members or | 17 |
| managers thereof that retain any authority or
| 18 |
| responsibility under the operating agreement if the | 19 |
| applicant is a limited
liability company, or the officers | 20 |
| thereof if the applicant
is a corporation have 3 years | 21 |
| experience preceding application
in real estate finance. | 22 |
| Instead of this requirement, the applicant and the
| 23 |
| applicant's officers or members, as applicable, may
| 24 |
| satisfactorily complete a program of education in real | 25 |
| estate finance and
fair lending, as
approved by the | 26 |
| Director Commissioner , prior to receiving the
initial |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| license.
The Director Commissioner shall promulgate rules | 2 |
| regarding proof of experience
requirements and educational | 3 |
| requirements and the satisfactory completion of
those | 4 |
| requirements. The Commissioner may establish by rule a list | 5 |
| of duly
licensed professionals and others who may be exempt | 6 |
| from this requirement.
| 7 |
| (6) An investigation of the averments required by | 8 |
| Section 2-4, which
investigation must allow the Director | 9 |
| Commissioner to issue positive findings stating
that the | 10 |
| financial responsibility, experience, character, and | 11 |
| general fitness
of the license applicant and of the members | 12 |
| thereof if the license applicant is
a partnership or | 13 |
| association, of the officers and directors thereof if the
| 14 |
| license applicant is a corporation, and of the managers and | 15 |
| members that retain
any authority or responsibility under | 16 |
| the operating agreement if the license
applicant is a | 17 |
| limited liability company are such as to command the | 18 |
| confidence
of the community and to warrant belief that the | 19 |
| business will be operated
honestly, fairly and efficiently | 20 |
| within the purpose of this Act. If the
Director | 21 |
| Commissioner shall not so find, he or she shall not issue | 22 |
| such license, and he
or she shall notify the license | 23 |
| applicant of the denial. | 24 |
| The Director Commissioner may impose conditions on a | 25 |
| license if the Director Commissioner determines that the | 26 |
| conditions are necessary or appropriate. These conditions |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| shall be imposed in writing and shall continue in effect for | 2 |
| the period prescribed by the Director Commissioner .
| 3 |
| (b) All licenses shall be issued in duplicate with one copy
| 4 |
| being transmitted to the license applicant or license status | 5 |
| may be posted on the multistate automated licensing system and | 6 |
| the second being
retained with the Commissioner .
| 7 |
| Upon receipt of such license, a residential mortgage | 8 |
| licensee shall be
authorized to engage in the business | 9 |
| regulated by this Act. Such license
shall remain in full force | 10 |
| and effect until it expires without renewal, is
surrendered by | 11 |
| the licensee or revoked or suspended as hereinafter provided.
| 12 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)
| 13 |
| (205 ILCS 635/2-3) (from Ch. 17, par. 2322-3)
| 14 |
| Sec. 2-3. Application form.
| 15 |
| (a) Application for a residential mortgage license must be | 16 |
| made in
accordance with Section 2-6 and the requirements of the | 17 |
| multistate automated licensing system approved by the | 18 |
| Director . The application shall be in writing, under oath,
and | 19 |
| on a form obtained from and prescribed by the Director, or may | 20 |
| be submitted electronically, with attestation, to the | 21 |
| multistate automated licensing system Commissioner .
| 22 |
| (b) The application shall contain the name and complete | 23 |
| business and
residential address or addresses of the license | 24 |
| applicant. If the license
applicant is a partnership, | 25 |
| association, corporation or other form of
business |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| organization, the application shall contain the names and | 2 |
| complete
business and residential addresses of each member, | 3 |
| director and principal
officer thereof. Such application shall | 4 |
| also include a description of the
activities of the license | 5 |
| applicant, in such detail and for such periods,
as the Director | 6 |
| Commissioner may require, including all of the following:
| 7 |
| (1) An affirmation of financial solvency noting such | 8 |
| capitalization
requirements as may be required by the | 9 |
| Director Commissioner , and access to such
credit as may be | 10 |
| required by the Director Commissioner .
| 11 |
| (2) An affirmation that the license applicant or its | 12 |
| members, directors or
principals as may be appropriate, are | 13 |
| at least 18 years of age.
| 14 |
| (3) Information as to the character, fitness, | 15 |
| financial and business
responsibility, background, | 16 |
| experience, and criminal record of any
(i) person, entity, | 17 |
| or ultimate equitable owner that owns or controls,
directly | 18 |
| or indirectly, 10% or more of any class of stock of the | 19 |
| license
applicant; (ii) person, entity, or ultimate | 20 |
| equitable owner that is not a
depository institution, as | 21 |
| defined in Section 1007.50 of the Savings Bank
Act, that | 22 |
| lends, provides, or infuses, directly or indirectly, in any | 23 |
| way,
funds to or into a license applicant, in an amount | 24 |
| equal to or more than 10% of
the license applicant's net | 25 |
| worth; (iii) person, entity, or ultimate equitable
owner | 26 |
| that controls, directly or indirectly, the election of 25% |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| or more of the
members of the board of directors of a | 2 |
| license applicant; or (iv) person,
entity, or ultimate | 3 |
| equitable owner that the Director Commissioner finds | 4 |
| influences
management of the license applicant.
| 5 |
| (4) Upon written request by the licensee and | 6 |
| notwithstanding the
provisions of paragraphs (1), (2), and | 7 |
| (3) of this subsection, the Director Commissioner
may | 8 |
| permit the licensee to omit all or part of the information | 9 |
| required by
those paragraphs if, in lieu of the omitted | 10 |
| information, the licensee submits
an affidavit stating | 11 |
| that the information submitted on the licensee's previous
| 12 |
| renewal application is still true and accurate. The | 13 |
| Director Commissioner may
promulgate rules prescribing the | 14 |
| form and content of the affidavit that are
necessary to | 15 |
| accomplish the purposes of this Section.
| 16 |
| (5) Such other information as required by regulations | 17 |
| of the
Director Commissioner . | 18 |
| In the event the information required by the multistate | 19 |
| automated licensing system, as adopted by the Director, | 20 |
| conflicts with any information required in this subsection | 21 |
| (b), the requirements of the multistate automated | 22 |
| licensing system as adopted shall prevail.
| 23 |
| (Source: P.A. 89-355, eff. 8-17-95.)
| 24 |
| (205 ILCS 635/2-4) (from Ch. 17, par. 2322-4)
| 25 |
| Sec. 2-4. Averments of Licensee. Each application for |
|
|
|
SB1998 |
- 25 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| license or for the
renewal of a license shall be accompanied by | 2 |
| the following averments stating
that the applicant:
| 3 |
| (a) Will maintain at least one full service office | 4 |
| within the
State of Illinois pursuant to Section 3-4 of | 5 |
| this Act;
| 6 |
| (b) Will maintain staff reasonably adequate to meet the | 7 |
| requirements of
Section 3-4 of this Act;
| 8 |
| (c) Will keep and maintain for 36 months the same | 9 |
| written records
as required by the federal Equal Credit | 10 |
| Opportunity Act, and any other
information required by | 11 |
| regulations of the Director Commissioner regarding any | 12 |
| home
mortgage in the course of the conduct of its | 13 |
| residential mortgage business;
| 14 |
| (d) Will file with the Director, or multistate | 15 |
| automated licensing system Commissioner , when due, any | 16 |
| report or reports
which it is required to file under any of | 17 |
| the provisions of this Act;
| 18 |
| (e) Will not engage, whether as principal or agent, in | 19 |
| the practice of
rejecting residential mortgage | 20 |
| applications without reasonable cause, or
varying terms or | 21 |
| application procedures without reasonable cause, for home
| 22 |
| mortgages on real estate within any specific geographic | 23 |
| area from the terms
or procedures generally provided by the | 24 |
| licensee within other geographic
areas of the State;
| 25 |
| (f) Will not engage in fraudulent home mortgage | 26 |
| underwriting practices;
|
|
|
|
SB1998 |
- 26 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| (g) Will not make payment, whether directly or | 2 |
| indirectly, of any kind
to any in house or fee appraiser of | 3 |
| any government or private money lending
agency with which | 4 |
| an application for a home mortgage has been filed for the
| 5 |
| purpose of influencing the independent judgment of the | 6 |
| appraiser with respect
to the value of any real estate | 7 |
| which is to be covered by such home mortgage;
| 8 |
| (h) Has filed tax returns (State and Federal) for the | 9 |
| past 3
years or filed as required by the Director with the | 10 |
| Commissioner an accountant's or attorney's
statement as to | 11 |
| why no return was filed;
| 12 |
| (i) Will not engage in any discrimination or redlining | 13 |
| activities
prohibited by Section 3-8 of this Act;
| 14 |
| (j) Will not knowingly make any false promises likely | 15 |
| to influence or
persuade, or pursue a course of | 16 |
| misrepresentation and false promises
through agents, | 17 |
| solicitors, advertising or otherwise;
| 18 |
| (k) Will not knowingly misrepresent, circumvent or | 19 |
| conceal, through
whatever subterfuge or device, any of the | 20 |
| material particulars or the
nature thereof, regarding a | 21 |
| transaction to which it is a party to the
injury of another | 22 |
| party thereto;
| 23 |
| (l) Will disburse funds in accordance with its | 24 |
| agreements;
| 25 |
| (m) Has not committed a crime against the law of this | 26 |
| State, any other
state or of the United States, involving |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| moral turpitude, fraudulent or
dishonest dealing, and that | 2 |
| no final judgment has been entered against it in
a civil | 3 |
| action upon grounds of fraud, misrepresentation or deceit | 4 |
| which has
not been previously reported to the Director | 5 |
| Commissioner ;
| 6 |
| (n) Will account or deliver to the owner upon request | 7 |
| any person any personal property such as
money, fund, | 8 |
| deposit, check, draft, mortgage, other document or thing of
| 9 |
| value, which has come into its possession, and which is not | 10 |
| its property,
or which it is not in law or equity entitled | 11 |
| to retain under the
circumstances , at the time which has | 12 |
| been agreed upon or is required
by law, or, in the absence | 13 |
| of a fixed time, upon demand of the person
entitled to such | 14 |
| accounting and delivery ;
| 15 |
| (o) Has not engaged in any conduct which would be cause | 16 |
| for denial of a
license;
| 17 |
| (p) Has not become insolvent;
| 18 |
| (q) Has not submitted an application for a license | 19 |
| under this Act which
contains a material misstatement;
| 20 |
| (r) Has not demonstrated by course of conduct, | 21 |
| negligence or incompetence
in performing any act for which | 22 |
| it is required to hold a license under this
Act;
| 23 |
| (s) Will advise the Director Commissioner in writing , | 24 |
| or the multistate automated licensing system by electronic | 25 |
| means, of any changes to the
information submitted on the | 26 |
| most recent application for license within 30
days of said |
|
|
|
SB1998 |
- 28 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| change , or by the date required for entry of changes to the | 2 |
| multistate automated licensing system . The written notice | 3 |
| must be signed in the same form as
the application for | 4 |
| license being amended;
| 5 |
| (t) Will comply with the provisions of this Act, or | 6 |
| with any lawful
order, rule or regulation made or issued | 7 |
| under the provisions of this Act;
| 8 |
| (u) Will submit to periodic examination by the Director | 9 |
| Commissioner as required
by this Act;
| 10 |
| (v) Will advise the Director Commissioner in writing of | 11 |
| judgments entered
against, and bankruptcy petitions by, | 12 |
| the license applicant within 5
days of occurrence;
| 13 |
| (w) Will advise the Director Commissioner in writing | 14 |
| within 30 days of any request made to when the
license | 15 |
| applicant requests a licensee under this Act to repurchase | 16 |
| a loan in a manner that completely and clearly identifies | 17 |
| to whom the request was made, the loans involved, and the | 18 |
| reason for the request , and
the circumstances therefor ;
| 19 |
| (x) Will advise the Director Commissioner in writing | 20 |
| within 30 days of any request from any entity when the
| 21 |
| license applicant is requested by another entity to | 22 |
| repurchase a loan in a manner that completely and clearly | 23 |
| identifies who made the request, the loans involved, and | 24 |
| the reason for the request , and the
circumstances therefor ;
| 25 |
| (y) Will at all times act in a manner consistent with | 26 |
| subsections (a) and
(b) of Section 1-2 of this Act; and
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (z) Will not knowingly hire or employ a loan originator | 2 |
| who is
not registered with the Director Commissioner as | 3 |
| required under Section 7-1 of this Act.
| 4 |
| A licensee who fails to fulfill obligations of an averment, | 5 |
| to comply with
averments made, or otherwise violates any of the | 6 |
| averments made under this
Section shall be subject to the | 7 |
| penalties in Section 4-5 of this Act.
| 8 |
| (Source: P.A. 95-331, eff. 8-21-07.)
| 9 |
| (205 ILCS 635/2-5) (from Ch. 17, par. 2322-5)
| 10 |
| Sec. 2-5. Refusal to Issue License. The Director | 11 |
| Commissioner shall refuse to
license or renew a license if:
| 12 |
| (1) it is determined that the applicant is not in | 13 |
| compliance with any
provisions of the Act or the provisions | 14 |
| of the multistate automated licensing system as approved by | 15 |
| the Director ; or
| 16 |
| (2) there is substantial continuity between the | 17 |
| applicant and any
violator of this Act; or
| 18 |
| (3) the Director Commissioner cannot make the findings | 19 |
| specified in Section 2-2,
subsection (a), of this Act.
| 20 |
| (Source: P.A. 86-137; 87-642.)
| 21 |
| (205 ILCS 635/2-6) (from Ch. 17, par. 2322-6)
| 22 |
| Sec. 2-6. License issuance and renewal; fee.
| 23 |
| (a) Beginning July 1, 2003, licenses shall be renewed every | 24 |
| year on the
anniversary of the date of issuance of the original |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| license , or if the multistate automated licensing system is | 2 |
| approved, then on the common renewal date selected for the | 3 |
| multistate automated licensing system .
Properly completed | 4 |
| renewal application forms and filing fees must be received
by | 5 |
| the Director Commissioner 60 days prior to the renewal date , or | 6 |
| if the multistate automated licensing system is approved, then | 7 |
| by the date of receipt selected for the multistate automated | 8 |
| licensing system .
| 9 |
| (b) It shall be the responsibility of each licensee to | 10 |
| accomplish renewal
of its license; failure of the licensee to | 11 |
| receive renewal forms or electronic notice absent a
request | 12 |
| sent by certified mail for such forms will not waive said
| 13 |
| responsibility. Failure by a licensee to submit a properly | 14 |
| completed
renewal application form , or complete renewal on the | 15 |
| multistate automated licensing system, and pay fees in a timely | 16 |
| fashion, absent a written
extension from the Director | 17 |
| Commissioner , will result in the assessment of
additional fees, | 18 |
| as follows:
| 19 |
| (1) A fee of $750 will be assessed to the licensee 30 | 20 |
| days
after the
proper renewal date and $1,500 each month | 21 |
| thereafter, or late fees as determined by the Director in | 22 |
| conjunction with the multistate automated licensing | 23 |
| system, until the
license is
either renewed or expires | 24 |
| pursuant to Section 2-6, subsections (c) and (d),
of this | 25 |
| Act.
| 26 |
| (2) Such fee will be assessed without prior notice to |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| the licensee, but
will be assessed only in cases wherein | 2 |
| the Director Commissioner has in his or her
possession | 3 |
| documentation of the licensee's continuing activity for | 4 |
| which
the unrenewed license was issued.
| 5 |
| (c) A license which is not renewed by the date required in | 6 |
| this Section
shall automatically become inactive. No activity | 7 |
| regulated by this Act
shall be conducted by the licensee when a | 8 |
| license becomes inactive. The Director Commissioner may | 9 |
| require the licensee to provide a plan for the disposition of | 10 |
| any residential mortgage loans not closed or funded when the | 11 |
| license becomes inactive. The Director Commissioner may allow a | 12 |
| licensee with an inactive license to conduct activities | 13 |
| regulated by this Act for the sole purpose of assisting | 14 |
| borrowers in the closing or funding of loans for which the loan | 15 |
| application was taken from a borrower while the license was | 16 |
| active. An
inactive license may be reactivated by the Director, | 17 |
| or by the multistate automated licensing system at the | 18 |
| direction of the Director, Commissioner upon payment of the | 19 |
| renewal fee, and payment
of a reactivation fee equal to the | 20 |
| renewal fee.
| 21 |
| (d) A license which is not renewed within one year of | 22 |
| becoming inactive
shall expire.
| 23 |
| (e) A licensee ceasing an activity or activities regulated | 24 |
| by this Act
and desiring to no longer be licensed shall so | 25 |
| inform the Director Commissioner in
writing and, at the same | 26 |
| time, convey the license and all other symbols or
indicia of |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| licensure , or request a license status change on the multistate | 2 |
| automated licensing system . The licensee shall include a plan | 3 |
| for the withdrawal
from regulated business, including a | 4 |
| timetable for the disposition of the
business and comply with | 5 |
| surrender guidelines of the Director to ensure proper surrender | 6 |
| of the license . Upon completion of all requirements receipt of | 7 |
| such written notice , the Director Commissioner shall issue
a | 8 |
| certified statement canceling the license or the surrendered or | 9 |
| cancelled license status shall be posted on the multistate | 10 |
| automated licensing system .
| 11 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-561, eff. 1-1-04; 93-1018, | 12 |
| eff. 1-1-05.)
| 13 |
| (205 ILCS 635/2-7) (from Ch. 17, par. 2322-7)
| 14 |
| Sec. 2-7. Waiver of licensing fee. The Director | 15 |
| Commissioner may waive the
licensing fee upon receipt of:
| 16 |
| (a) an application for a residential mortgage license in | 17 |
| Illinois,
| 18 |
| (b) an addendum requesting waiver of the fee stating
the | 19 |
| grounds in support of such waiver, including but not limited | 20 |
| to, not
for profit status, bankruptcy or the showing of undue | 21 |
| hardship, and
| 22 |
| (c) in case of an out-of-state servicer of loans in | 23 |
| Illinois,
the following documentation is required:
| 24 |
| (1) A verification that the firm services only 100 or | 25 |
| fewer
loans secured
by residential real estate situated in |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| Illinois;
| 2 |
| (2) An agreement not to originate, purchase or acquire | 3 |
| additional
servicing of loans secured by residential real | 4 |
| estate situated in Illinois;
| 5 |
| (3) An agreement to maintain a dedicated toll free | 6 |
| (800) number for
exclusive use by the licensee's Illinois | 7 |
| customers;
| 8 |
| (4) An agreement to provide a written notice at least | 9 |
| annually to the
licensee's Illinois customers advising | 10 |
| them of the dedicated toll free (800)
number; and to | 11 |
| furnish the Director Commissioner with a copy of such | 12 |
| written notice.
| 13 |
| A request for waiver of the filing fee must be submitted | 14 |
| each
year in conjunction with the license renewal procedure.
| 15 |
| (Source: P.A. 90-301, eff. 8-1-97.)
| 16 |
| (205 ILCS 635/2-8) (from Ch. 17, par. 2322-8)
| 17 |
| Sec. 2-8. Additional Full-service Offices.
| 18 |
| (a) A licensee may apply for authority to open and maintain | 19 |
| additional
full-service offices by:
| 20 |
| (1) Giving the Director or multistate automated licensing | 21 |
| system Commissioner prior notice of its intention in such form
| 22 |
| as shall be prescribed by the Commissioner.
| 23 |
| (2) Payment of a fee to be established by regulation.
| 24 |
| (b) Upon receipt of the notice and fee required in | 25 |
| subsection (a) above, the
Commissioner shall issue a |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| certificate for the additional full-service office , or the | 2 |
| license status shall be posted to the multistate automated | 3 |
| licensing system .
| 4 |
| (c) The certificate , if issued by the Director, shall be | 5 |
| conspicuously posted in the respective
additional full-service | 6 |
| offices.
| 7 |
| (Source: P.A. 85-735.)
| 8 |
| (205 ILCS 635/2-9) (from Ch. 17, par. 2322-9)
| 9 |
| Sec. 2-9. Posting of license. The license of a licensee
| 10 |
| whose home office is within the State of Illinois or of an
| 11 |
| out-of-state licensee , if issued by the Director, shall be | 12 |
| conspicuously posted in every
office of the licensee located in | 13 |
| Illinois. Out-of-state
licensees without an Illinois office | 14 |
| shall produce the license , if issued,
upon request. Licensees | 15 |
| originating loans on the Internet shall post on
their Internet | 16 |
| web site their license number and the address and telephone
| 17 |
| number of the Director Commissioner . The license shall state | 18 |
| the full name and
address
of the licensee. The license shall | 19 |
| not be transferable or assignable.
A separate certificate may | 20 |
| shall be issued for posting in each full
service Illinois | 21 |
| office.
| 22 |
| (Source: P.A. 91-586, eff. 8-14-99.)
| 23 |
| (205 ILCS 635/2-11) (from Ch. 17, par. 2322-11)
| 24 |
| Sec. 2-11. Miscellaneous fees. In addition to any license |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| fee collected
under this Act, the Director Commissioner shall | 2 |
| by rule and regulation establish a
schedule to apply to | 3 |
| assessment and collection of necessary contingent and
| 4 |
| miscellaneous fees.
| 5 |
| (Source: P.A. 85-735.)
| 6 |
| (205 ILCS 635/3-1) (from Ch. 17, par. 2323-1)
| 7 |
| Sec. 3-1. Bonds of licensees.
| 8 |
| (a) Every licensee, with respect to any person appointed or | 9 |
| elected
to any position requiring the receipt of payment, | 10 |
| management, or use of money
belonging to a residential mortgage | 11 |
| licensee engaged in the activities of
originating, servicing, | 12 |
| or purchasing mortgage loans or whose duties permit him
or her | 13 |
| to have access to or custody of any of its money or securities | 14 |
| or
custody of any money or securities belonging to third | 15 |
| parties or whose duties
permit him or her regularly to make | 16 |
| entries in the books or other records of a
licensee, shall, | 17 |
| before assuming his or her duties, maintain a fidelity bond in
| 18 |
| the amount of $100,000 by some fidelity insurance company | 19 |
| licensed to do
business in this State.
| 20 |
| (b) Each bond shall be for any loss the licensee may | 21 |
| sustain in money or
other property through the commission of | 22 |
| any dishonest or criminal act or
omission by any person | 23 |
| required to be bonded, whether committed alone or in
concert | 24 |
| with another. The bond shall be in the form and amount approved
| 25 |
| by the Director Commissioner who may at any time require one or |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| more additional
bonds. A true copy of every bond, including all | 2 |
| riders and endorsements
executed subsequent to the effective | 3 |
| date of the bond, shall be filed at
all times with the Director | 4 |
| Commissioner . Each bond shall provide that a
cancellation | 5 |
| thereof shall not become effective unless and until
30 days | 6 |
| notice in writing first shall have been given to the Director | 7 |
| Commissioner
unless he or she shall have approved the | 8 |
| cancellation earlier.
If the Director Commissioner believes | 9 |
| the licensee's business is being conducted in
an unsafe manner | 10 |
| due to the lack of bonds or the inadequacy of bonds,
he or she | 11 |
| may proceed against the licensee as provided for in Section | 12 |
| 4-5.
| 13 |
| (c) All licensees shall maintain a bond in accordance with | 14 |
| this subsection.
Each bond shall be for the recovery of | 15 |
| expenses, fines, or fees due to or
levied by the Director | 16 |
| Commissioner in accordance with this Act. The bond shall be
| 17 |
| payable when the licensee fails to comply with any provisions | 18 |
| of this Act and
shall be in the form of a surety or licensure | 19 |
| bond in the amount and form as
prescribed by the Director | 20 |
| Commissioner pursuant to rules and regulations. The bond
shall | 21 |
| be payable to the Division of Banking of the Department of | 22 |
| Financial and Professional Regulation Office of Banks and Real | 23 |
| Estate and shall be issued by some insurance company
authorized | 24 |
| to do business in this State. A copy of the bond, including any | 25 |
| and
all riders and endorsements executed subsequent to the | 26 |
| effective date of the
bond, shall be placed on file with the |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| Division of Banking of the Department of Financial and | 2 |
| Professional Regulation Office of Banks and Real Estate within | 3 |
| 10 days of the
execution thereof.
| 4 |
| (d) The Director Commissioner may promulgate rules with | 5 |
| respect to bonding
requirements for residential mortgage | 6 |
| licensees that are
reasonable and necessary to accomplish the | 7 |
| purposes of this Act.
| 8 |
| (Source: P.A. 89-508, eff. 7-3-96.)
| 9 |
| (205 ILCS 635/3-2) (from Ch. 17, par. 2323-2)
| 10 |
| Sec. 3-2. Annual audit.
| 11 |
| (a) At the licensee's fiscal year-end, but in no
case more | 12 |
| than 12 months after the last audit conducted pursuant to this
| 13 |
| Section, except as otherwise provided in this Section, it shall | 14 |
| be
mandatory for each residential mortgage licensee to
cause | 15 |
| its books and accounts to be audited by a certified public | 16 |
| accountant
licensed under the Illinois Public Accounting Act or | 17 |
| by an equivalent state licensing law not connected with such | 18 |
| licensee. The books and records of all licensees
under this Act | 19 |
| shall be maintained on an accrual basis. The audit must be
| 20 |
| sufficiently comprehensive in scope to permit
the expression of | 21 |
| an opinion on the financial statements, which must be
prepared | 22 |
| in accordance with generally accepted accounting principles, | 23 |
| and
must be performed in accordance with generally accepted | 24 |
| auditing standards. Notwithstanding
the requirements of this | 25 |
| subsection, a licensee that is a first tier subsidiary
may |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| submit audited consolidated financial statements of its parent | 2 |
| as long as
the consolidated statements are supported by | 3 |
| consolidating statements. The
licensee's chief financial | 4 |
| officer shall attest to the licensee's financial
statements | 5 |
| disclosed in the consolidating statements.
| 6 |
| (b) As used herein, the term "expression of opinion" | 7 |
| includes either
(1) an unqualified opinion, (2) a qualified | 8 |
| opinion, (3) a disclaimer of
opinion, or (4) an adverse | 9 |
| opinion.
| 10 |
| (c) If a qualified or adverse opinion is expressed or if an | 11 |
| opinion is
disclaimed, the reasons therefore must be fully | 12 |
| explained. An opinion,
qualified as to a scope limitation, | 13 |
| shall not be acceptable.
| 14 |
| (d) The most recent audit report shall be filed with the | 15 |
| Director
Commissioner within 90 days after the end of the | 16 |
| licensee's fiscal year. The report
filed with the Director | 17 |
| Commissioner shall be certified by the certified public
| 18 |
| accountant conducting the audit. The Director Commissioner may | 19 |
| promulgate rules
regarding late audit reports.
| 20 |
| (e) If any licensee required to make an audit shall fail to | 21 |
| cause an
audit to be made, the Director Commissioner shall | 22 |
| cause the same to be made by a
certified public accountant at | 23 |
| the licensee's expense. The Director Commissioner
shall select | 24 |
| such certified public accountant by advertising for bids or
by | 25 |
| such other fair and impartial means as he or she establishes by | 26 |
| regulation.
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (f) In lieu of the audit or compilation financial statement
| 2 |
| required by this Section, a licensee shall submit and the | 3 |
| Director Commissioner may
accept any audit made in conformance | 4 |
| with the audit
requirements of the U.S. Department of Housing | 5 |
| and Urban Development.
| 6 |
| (g) With respect to licensees who solely broker residential | 7 |
| mortgage
loans as defined in subsection (o) of Section 1-4, | 8 |
| instead of the audit
required by this Section, the Director | 9 |
| Commissioner may
accept
compilation financial statements | 10 |
| prepared at least every 12 months, and
the compilation | 11 |
| financial statement must be prepared by an independent
| 12 |
| certified public accountant licensed under the Illinois Public | 13 |
| Accounting Act
or by an equivalent state licensing law with | 14 |
| full disclosure in accordance with generally accepted | 15 |
| accounting
principals and must be submitted within 90 days | 16 |
| after the end of
the licensee's fiscal year. If a
licensee
| 17 |
| under this Section fails to file a compilation as required, the | 18 |
| Director Commissioner
shall cause an audit of the licensee's | 19 |
| books and accounts to be made by a
certified public accountant | 20 |
| at the licensee's expense. The Director Commissioner shall
| 21 |
| select the certified public accountant by advertising for bids | 22 |
| or by such other
fair and impartial means as he or she | 23 |
| establishes by rule. A licensee who
files false or misleading | 24 |
| compilation financial statements is guilty of a
business | 25 |
| offense and shall be fined not less than $5,000.
| 26 |
| (h) The workpapers of the certified public accountants |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| employed
by each
licensee for purposes of this Section are to | 2 |
| be made available to the Director
Commissioner or the | 3 |
| Director's Commissioner's designee upon request and may be
| 4 |
| reproduced by the Director Commissioner or the Director's | 5 |
| Commissioner's designee to enable to
the Director Commissioner | 6 |
| to carry out the purposes of this Act.
| 7 |
| (i) Notwithstanding any other provision of this Section, if | 8 |
| a licensee
relying on subsection (g) of this Section causes its | 9 |
| books to be audited at any
other time or causes its financial | 10 |
| statements to be reviewed, a complete copy
of the audited or | 11 |
| reviewed financial statements shall be delivered to the | 12 |
| Director
Commissioner at the time of the annual license renewal | 13 |
| payment following
receipt by the licensee of the audited or | 14 |
| reviewed financial statements. All workpapers shall be made | 15 |
| available to the Director
Commissioner upon request. The | 16 |
| financial statements and workpapers may be
reproduced by the | 17 |
| Director Commissioner or the Director's Commissioner's | 18 |
| designee to carry out the
purposes of this Act.
| 19 |
| (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
| 20 |
| (205 ILCS 635/3-3) (from Ch. 17, par. 2323-3)
| 21 |
| Sec. 3-3. Advertising. In addition to such other rules, | 22 |
| regulations
and policies as the Director Commissioner may | 23 |
| promulgate to effectuate the purpose of
this Act, the Director | 24 |
| Commissioner shall prescribe regulations governing the
| 25 |
| advertising of mortgage loans, including without limitation, |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| the following
requirements:
| 2 |
| (a) Advertising for loans transacted under this Act may not | 3 |
| be false,
misleading or deceptive. No entity whose activities | 4 |
| are regulated under
this Act may advertise in any manner so as | 5 |
| to indicate or imply that its
interest rates or charges for | 6 |
| loans are in any way "recommended", "approved",
"set" or | 7 |
| "established" by the State or by this Act. The Director | 8 |
| Commissioner may issue
a cease and desist order for any | 9 |
| violation of this Section.
| 10 |
| (b) All advertisements by a licensee shall contain the name | 11 |
| and an
office address of such entity, which shall conform to a | 12 |
| name and address on
record with the Director Commissioner .
| 13 |
| (c) No licensee shall advertise its services in Illinois in | 14 |
| any media,
whether print or electronic, without the words | 15 |
| "Illinois Residential
Mortgage Licensee".
| 16 |
| (Source: P.A. 87-1098.)
| 17 |
| (205 ILCS 635/3-4) (from Ch. 17, par. 2323-4)
| 18 |
| Sec. 3-4. Office and staff within the State.
| 19 |
| (a) A licensee whose principal place of business is located | 20 |
| in the State
of Illinois shall
maintain at least one full | 21 |
| service office with
staff reasonably adequate to handle | 22 |
| efficiently communications, questions,
and all other matters | 23 |
| relating to any application for a home mortgage or an
existing | 24 |
| home mortgage with respect
to which such licensee is performing | 25 |
| services, regardless of kind, for any
borrower or lender, note |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| owner or holder, or for himself or herself while
engaged in the | 2 |
| residential
mortgage business. The location and operation of a | 3 |
| full service office shall be in compliance with any applicable | 4 |
| zoning laws or ordinances and home office or business | 5 |
| regulations.
The office or place of business shall not be | 6 |
| located in any real estate, retail, or financial business | 7 |
| establishment unless it is separated from the other business by | 8 |
| a separate and distinct area within the establishment.
| 9 |
| (b) In lieu of maintaining a full service office in the | 10 |
| State of
Illinois,
and subject to the rules of the Department, | 11 |
| a licensee whose principal place of business is located outside | 12 |
| the
State of Illinois
may comply with all of the following | 13 |
| requirements: | 14 |
| (1) maintain a limited service office in Illinois that | 15 |
| is adequate to accommodate a full-scope examination of the | 16 |
| licensee's books and records as they relate to activity in | 17 |
| Illinois, as determined by the Department; | 18 |
| (2) must submit a certified audit as required in | 19 |
| Section 3-2 of this Act
evidencing a minimum net worth of | 20 |
| $150,000 $100,000 , which must be maintained at all
times ; | 21 |
| and | 22 |
| (3) , and shall submit and maintain a fidelity bond in | 23 |
| the amount of
$100,000 , a copy of which must be submitted | 24 |
| to the Department. The Department may promulgate rules | 25 |
| permitting licensees that do not comply with the net worth | 26 |
| requirement established on the effective date of this |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| amendatory Act of the 95th General Assembly to do so within | 2 |
| 12 months after the effective date of this amendatory Act | 3 |
| of the 95th General Assembly .
| 4 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 5 |
| (205 ILCS 635/3-5) (from Ch. 17, par. 2323-5)
| 6 |
| Sec. 3-5. Net worth requirement. A licensee that holds a | 7 |
| license on the
effective date of this amendatory Act of the | 8 |
| 93rd General Assembly shall have and
maintain a net worth of | 9 |
| not less than $100,000; however, no later than 2
years after | 10 |
| the effective date of this amendatory
Act of the 93rd General | 11 |
| Assembly, the licensee must maintain a net worth of not
less | 12 |
| than $150,000. A licensee that first obtains a license after | 13 |
| the effective
date of this amendatory Act of the 93rd General | 14 |
| Assembly must have and maintain
a net worth of not less than | 15 |
| $150,000.
Notwithstanding other requirements of this Section, | 16 |
| the net worth
requirement for a residential mortgage licensee | 17 |
| whose
only licensable
activity is that of brokering residential | 18 |
| mortgage loans and that holds a
license on the effective date | 19 |
| of this amendatory Act of the 93rd General
Assembly shall be | 20 |
| $35,000; however, no later than 2 years after the
effective | 21 |
| date of this amendatory
Act of the 93rd General Assembly, the | 22 |
| licensee must maintain a net worth of
not less than $50,000. | 23 |
| Such a licensee that first obtains a license after the
| 24 |
| effective date of this amendatory Act of the 93rd General | 25 |
| Assembly
must have and maintain a net worth of not less than |
|
|
|
SB1998 |
- 44 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| $50,000.
Net worth shall be evidenced by a balance sheet | 2 |
| prepared by a certified
public accountant in accordance with | 3 |
| generally accepted accounting principles
and generally | 4 |
| accepted auditing standards or by the compilation financial
| 5 |
| statements authorized under subsection (g) of Section 3-2. The | 6 |
| Director Commissioner
may promulgate
rules with respect to net | 7 |
| worth definitions
and requirements for residential mortgage | 8 |
| licensees as necessary to
accomplish the purposes of this Act. | 9 |
| In lieu of the net worth requirement
established by this | 10 |
| Section, the Director Commissioner may accept evidence of
| 11 |
| conformance by the licensee with the net worth requirements of | 12 |
| the United
States Department of Housing and Urban Development.
| 13 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 14 |
| (205 ILCS 635/3-9) (from Ch. 17, par. 2323-9)
| 15 |
| Sec. 3-9. Escrow Funds. The Director Commissioner may | 16 |
| promulgate rules with
respect to placement in escrow accounts | 17 |
| by any licensee of any money, fund,
deposit, check or draft | 18 |
| entrusted to it by any persons dealing with it as a
residential | 19 |
| mortgage licensee.
| 20 |
| (Source: P.A. 85-735.)
| 21 |
| (205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| 22 |
| Sec. 4-1. Director of the Division of Banking of the | 23 |
| Department of Financial and Professional Regulation | 24 |
| Commissioner of Banks and Real Estate ; functions, powers, and |
|
|
|
SB1998 |
- 45 - |
LRB095 18639 MJR 44726 b |
|
| 1 |
| duties. The functions,
powers, and duties of the Director | 2 |
| Commissioner of Banks and Real Estate shall include the | 3 |
| following:
| 4 |
| (a) To issue or refuse to issue any license as provided by | 5 |
| this Act;
| 6 |
| (b) To revoke or suspend for cause any license issued under | 7 |
| this Act;
| 8 |
| (c) To keep records of all licenses issued under this Act;
| 9 |
| (d) To receive, consider, investigate, and act upon | 10 |
| complaints made by
any person in connection with any | 11 |
| residential mortgage licensee in this State;
| 12 |
| (e) To consider and act upon any recommendations from the | 13 |
| Residential
Mortgage Board;
| 14 |
| (f) To prescribe the forms of and receive:
| 15 |
| (1) applications for licenses; and
| 16 |
| (2) all reports and all books and records required to | 17 |
| be made by
any licensee under this Act, including annual | 18 |
| audited financial statements
and annual reports of | 19 |
| mortgage activity;
| 20 |
| (g) To adopt rules and regulations necessary and proper for | 21 |
| the
administration of this Act;
| 22 |
| (h) To subpoena documents and witnesses and compel their | 23 |
| attendance and
production, to administer oaths, and to require | 24 |
| the production of any books,
papers, or other materials | 25 |
| relevant to any inquiry authorized by this Act;
| 26 |
| (h-1) To issue orders against any person, if the Director |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| Commissioner has reasonable cause to believe that an unsafe, | 2 |
| unsound, or unlawful practice has occurred, is occurring, or is | 3 |
| about to occur, if any person has violated, is violating, or is | 4 |
| about to violate any law, rule, or written agreement with the | 5 |
| Director Commissioner , or for the purpose of administering the | 6 |
| provisions of this Act and any rule adopted in accordance with | 7 |
| the Act; | 8 |
| (h-2) To address any inquiries to any licensee, or the | 9 |
| officers thereof, in relation to its activities and conditions, | 10 |
| or any other matter connected with its affairs, and it shall be | 11 |
| the duty of any licensee or person so addressed, to promptly | 12 |
| reply in writing to such inquiries. The Director Commissioner | 13 |
| may also require reports from any licensee at any time the | 14 |
| Director Commissioner may deem desirable;
| 15 |
| (i) To require information with regard to any license | 16 |
| applicant
as he or she may deem desirable, with due regard to | 17 |
| the paramount interests
of the public as to the experience, | 18 |
| background, honesty, truthfulness,
integrity, and competency | 19 |
| of the license applicant as to financial
transactions involving | 20 |
| primary or subordinate mortgage financing, and where
the | 21 |
| license applicant is an entity other than an individual, as to | 22 |
| the
honesty, truthfulness, integrity, and competency of any | 23 |
| officer or director
of the corporation, association, or other | 24 |
| entity, or the members of a
partnership;
| 25 |
| (j) To examine the books and records of every licensee | 26 |
| under this Act at
intervals as specified in Section 4-2;
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (k) To enforce provisions of this Act;
| 2 |
| (l) To levy fees, fines, and charges for services performed | 3 |
| in administering
this Act; the aggregate of all fees collected | 4 |
| by the Director Commissioner on and after
the effective date of | 5 |
| this Act shall be paid promptly after receipt of the
same, | 6 |
| accompanied by a detailed statement thereof, into the Savings | 7 |
| and
Residential Finance Regulatory Fund; the amounts deposited | 8 |
| into that Fund shall
be used for the ordinary and contingent | 9 |
| expenses of the Office of Banks and
Real Estate. Nothing in | 10 |
| this Act shall prevent continuing the practice of paying
| 11 |
| expenses involving salaries, retirement, social security, and | 12 |
| State-paid
insurance of State officers by appropriation from | 13 |
| the General Revenue Fund.
| 14 |
| (m) To appoint examiners, supervisors, experts, and | 15 |
| special assistants as
needed to effectively and efficiently | 16 |
| administer this Act;
| 17 |
| (n) To conduct hearings for the purpose of:
| 18 |
| (1) appeals of orders of the Director Commissioner ;
| 19 |
| (2) suspensions or revocations of licenses, or fining | 20 |
| of licensees;
| 21 |
| (3) investigating:
| 22 |
| (i) complaints against licensees; or
| 23 |
| (ii) annual gross delinquency rates; and
| 24 |
| (4) carrying out the purposes of this Act;
| 25 |
| (o) To exercise exclusive visitorial power over a licensee | 26 |
| unless otherwise authorized by this Act or as vested in the |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| courts, or upon prior consultation with the Director | 2 |
| Commissioner , a foreign residential mortgage regulator with an | 3 |
| appropriate supervisory interest in the parent or affiliate of | 4 |
| a licensee;
| 5 |
| (p) To enter into cooperative agreements with state | 6 |
| regulatory authorities of other states to provide for | 7 |
| examination of corporate offices or branches of those states | 8 |
| and to accept reports of such examinations;
| 9 |
| (q) To assign an examiner or examiners to monitor the | 10 |
| affairs of a licensee with whatever frequency the Commissioner | 11 |
| determines appropriate and to charge the licensee for | 12 |
| reasonable and necessary expenses of the Director | 13 |
| Commissioner , if in the opinion of the Director Commissioner an | 14 |
| emergency exists or appears likely to occur; and
| 15 |
| (r) To impose civil penalties of up to $50 per day against | 16 |
| a licensee for failing to respond to a regulatory request or | 17 |
| reporting requirement.
| 18 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 19 |
| (205 ILCS 635/4-2) (from Ch. 17, par. 2324-2)
| 20 |
| Sec. 4-2. Examination; prohibited activities.
| 21 |
| (a) The business affairs of a licensee under this Act shall | 22 |
| be examined
for compliance with this Act as often as the | 23 |
| Director Commissioner deems necessary and
proper. The Director | 24 |
| Commissioner shall promulgate rules with respect to the | 25 |
| frequency
and manner of examination. The Director Commissioner |
|
|
|
SB1998 |
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|
| 1 |
| shall appoint a suitable person
to perform such
examination. | 2 |
| The Director Commissioner and his appointees may examine the
| 3 |
| entire
books, records, documents, and operations of each | 4 |
| licensee and its subsidiary, affiliate, or agent, and may | 5 |
| examine
any of the licensee's or its subsidiary's, affiliate's, | 6 |
| or agent's officers, directors, employees and agents under | 7 |
| oath. For purposes of this Section, "agent" includes service | 8 |
| providers such as accountants, closing services providers, | 9 |
| providers of outsourced services such as call centers, | 10 |
| marketing consultants, and loan processors, even if exempt from | 11 |
| licensure under this Act.
| 12 |
| (b) The Director Commissioner shall prepare a
sufficiently
| 13 |
| detailed
report of each
licensee's examination, shall issue a | 14 |
| copy of such report to each
licensee's principals, officers, or | 15 |
| directors and shall take appropriate
steps to ensure correction | 16 |
| of violations of this Act.
| 17 |
| (c) Affiliates of a licensee shall be subject to | 18 |
| examination by the Director
Commissioner on the same terms as | 19 |
| the licensee, but only when reports
from, or examination of a | 20 |
| licensee provides for documented evidence of
unlawful activity | 21 |
| between a licensee and affiliate benefiting, affecting or
| 22 |
| deriving from the activities regulated by this Act.
| 23 |
| (d) The expenses of any examination of the licensee and | 24 |
| affiliates shall
be borne by the licensee and assessed by the | 25 |
| Commissioner as established
by regulation.
| 26 |
| (e) Upon completion of the examination, the Director |
|
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|
SB1998 |
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|
| 1 |
| Commissioner shall issue a
report to the licensee. All | 2 |
| confidential supervisory information, including the | 3 |
| examination report
and the work papers
of the report, shall | 4 |
| belong to the Director's Commissioner's office and may not be
| 5 |
| disclosed to anyone other than the licensee, law enforcement | 6 |
| officials or other
regulatory agencies that have an appropriate | 7 |
| regulatory interest as determined by the Commissioner, or to a | 8 |
| party presenting a lawful subpoena to the Office of the | 9 |
| Director
Commissioner . The Director Commissioner may | 10 |
| immediately appeal to the court of jurisdiction the disclosure | 11 |
| of such confidential supervisory information and seek a stay of | 12 |
| the subpoena pending the outcome of the appeal. Reports | 13 |
| required of licensees by the Director Commissioner under this | 14 |
| Act
and results of examinations performed by the Director | 15 |
| Commissioner under this Act shall
be the property of only the | 16 |
| Director Commissioner , but may be shared with the licensee. | 17 |
| Access under this
Act to the books and records of each licensee | 18 |
| shall be limited to the Director
Commissioner and his agents as | 19 |
| provided in this Act and to the licensee and its
authorized | 20 |
| agents and designees. No other person shall have access to the
| 21 |
| books and records of a licensee under this Act. Any person upon | 22 |
| whom a demand for production of confidential supervisory | 23 |
| information is made, whether by subpoena, order, or other | 24 |
| judicial or administrative process, must withhold production | 25 |
| of the confidential supervisory information and must notify the | 26 |
| Director Commissioner of the demand, at which time the Director |
|
|
|
SB1998 |
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|
| 1 |
| Commissioner is authorized to intervene for the purpose of | 2 |
| enforcing the limitations of this Section or seeking the | 3 |
| withdrawal or termination of the attempt to compel production | 4 |
| of the confidential supervisory information. The Director | 5 |
| Commissioner may impose any conditions and limitations on the | 6 |
| disclosure of confidential supervisory information that are | 7 |
| necessary to protect the confidentiality of such information. | 8 |
| Except as authorized by the Director Commissioner , no person | 9 |
| obtaining access to confidential supervisory information may | 10 |
| make a copy of the confidential supervisory information. The | 11 |
| Director Commissioner may condition a decision to disclose | 12 |
| confidential supervisory information on entry of a protective | 13 |
| order by the court or administrative tribunal presiding in the | 14 |
| particular case or on a written agreement of confidentiality. | 15 |
| In a case in which a protective order or agreement has already | 16 |
| been entered between parties other than the Director | 17 |
| Commissioner , the Director Commissioner may nevertheless | 18 |
| condition approval for release of confidential supervisory | 19 |
| information upon the inclusion of additional or amended | 20 |
| provisions in the protective order. The Director Commissioner | 21 |
| may authorize a party who obtained the records for use in one | 22 |
| case to provide them to another party in another case, subject | 23 |
| to any conditions that the Director Commissioner may impose on | 24 |
| either or both parties. The requestor shall promptly notify | 25 |
| other parties to a case of the release of confidential | 26 |
| supervisory information obtained and, upon entry of a |
|
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SB1998 |
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|
| 1 |
| protective order, shall provide copies of confidential | 2 |
| supervisory information to the other parties.
| 3 |
| (f) The Director, deputy directors, and employees of the | 4 |
| Division of Banks of the Department of Financial and | 5 |
| Professional Regulation Commissioner, deputy commissioners, | 6 |
| and employees
of the Office of Banks and Real Estate shall be | 7 |
| subject to the restrictions
provided in Section 2.5 of the | 8 |
| Office of Banks and Real Estate Act including,
without | 9 |
| limitation, the restrictions on (i) owning shares of stock or | 10 |
| holding
any other equity interest in an entity regulated under | 11 |
| this Act or in any
corporation or company that owns or controls | 12 |
| an entity regulated under this
Act; (ii) being an officer, | 13 |
| director, employee, or agent of an entity regulated
under this | 14 |
| Act; and (iii) obtaining a loan or accepting a gratuity from an
| 15 |
| entity regulated under this Act.
| 16 |
| (g) After the initial examination for those licensees whose | 17 |
| only mortgage
activity is servicing fewer than 1,000 Illinois | 18 |
| residential loans,
the
examination required in subsection (a) | 19 |
| may be waived upon submission of a
letter from the licensee's | 20 |
| independent certified auditor that the licensee
serviced fewer | 21 |
| than 1,000 Illinois residential loans during the
year
in which | 22 |
| the
audit was performed.
| 23 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 24 |
| (205 ILCS 635/4-3) (from Ch. 17, par. 2324-3)
| 25 |
| Sec. 4-3. Subpoena power of the Director Commissioner . (a) |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| The Director Commissioner
shall have the power to issue and to | 2 |
| serve subpoenas and subpoenas duces
tecum to compel the | 3 |
| attendance of witnesses and the production of all
books, | 4 |
| accounts, records and other documents and materials relevant to | 5 |
| an
examination or investigation. The Director Commissioner or | 6 |
| his or her duly
authorized representative, shall have power to | 7 |
| administer oaths and
affirmations to any person.
| 8 |
| (b) In the event of noncompliance with a subpoena or | 9 |
| subpoena duces
tecum issued or caused to be issued by the | 10 |
| Director Commissioner , the Director Commissioner
may petition | 11 |
| the circuit court of the county in which the person subpoenaed
| 12 |
| resides or has its principal place of business for an order | 13 |
| requiring the
subpoenaed person to appear and testify and to | 14 |
| produce such books,
accounts, records and other documents as | 15 |
| are specified in the subpoena
duces tecum. The court may grant | 16 |
| injunctive relief restraining the person
from advertising, | 17 |
| promoting, soliciting, entering into, offering to enter
into, | 18 |
| continuing, or completing any residential mortgage financing
| 19 |
| transaction or residential mortgage servicing transaction. The | 20 |
| court may
grant such other relief, including, but not limited | 21 |
| to, the
restraint, by injunction or appointment of a receiver, | 22 |
| of any transfer,
pledge, assignment or other disposition of the | 23 |
| person's assets or any
concealment, alteration, destruction or | 24 |
| other disposition of books,
accounts, records or other | 25 |
| documents and materials as
the court deems appropriate, until | 26 |
| the person has fully complied with the
subpoena or subpoena |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| duces tecum and the Director Commissioner has completed an
| 2 |
| investigation or examination.
| 3 |
| (c) When it shall appear to the Director Commissioner that | 4 |
| the compliance with a
subpoena or subpoena duces tecum issued | 5 |
| or caused to be issued by the Director
Commissioner pursuant to | 6 |
| this Section is essential to an investigation or
examination, | 7 |
| the Director Commissioner , in addition to the other remedies | 8 |
| provided
for herein, may apply for relief to the circuit court | 9 |
| of the county in
which the subpoenaed person resides or has its | 10 |
| principal place of business.
The court shall thereupon direct | 11 |
| the issuance of an order against the
subpoenaed person | 12 |
| requiring sufficient bond conditioned on compliance with
the | 13 |
| subpoena or subpoena duces tecum. The court shall cause to be | 14 |
| endorsed
on the order a suitable amount of bond or payment | 15 |
| pursuant to which the
person named in the order shall be freed, | 16 |
| having a due regard to the nature of the case.
| 17 |
| (d) In addition, the Director Commissioner may seek a writ | 18 |
| of attachment or an
equivalent order from the circuit court | 19 |
| having jurisdiction over the person
who has refused to obey a | 20 |
| subpoena, who has refused to give testimony or
who has refused | 21 |
| to produce the matters described in the subpoena duces tecum.
| 22 |
| (Source: P.A. 85-735.)
| 23 |
| (205 ILCS 635/4-4) (from Ch. 17, par. 2324-4)
| 24 |
| Sec. 4-4. Report Required of Licensee; False Statements; | 25 |
| Delay;
Penalties.(a) In addition to any reports required under |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| this Act, every
licensee shall file such other reports as the | 2 |
| Director Commissioner shall request.
| 3 |
| (b) Any licensee or any officer, director, employee or | 4 |
| agent of any
licensee who shall fail to file any reports | 5 |
| required by this Act, including
those under subsection (a) | 6 |
| above, or who shall deliberately, wilfully or
knowingly make, | 7 |
| subscribe to or cause to be made any false entry with
intent to | 8 |
| deceive the Director Commissioner or his or her appointees or | 9 |
| who shall
purposely cause unreasonable delay in filing such | 10 |
| reports, shall be guilty
of a Class 4 Felony.
| 11 |
| (Source: P.A. 85-735.)
| 12 |
| (205 ILCS 635/4-5) (from Ch. 17, par. 2324-5)
| 13 |
| Sec. 4-5. Suspension, revocation of licenses; fines.
| 14 |
| (a) Upon written notice to a licensee, the Director | 15 |
| Commissioner may suspend
or revoke any license issued pursuant | 16 |
| to this Act if he or she shall make a
finding of one or more of | 17 |
| the following in the notice that:
| 18 |
| (1) Through separate acts or an act or a course of | 19 |
| conduct, the licensee
has violated any provisions of this | 20 |
| Act, any rule or regulation
promulgated by the Director | 21 |
| Commissioner or of any other law, rule or regulation of
| 22 |
| this State or the United States.
| 23 |
| (2) Any fact or condition exists which, if it had | 24 |
| existed at the time of
the original application for such | 25 |
| license would have warranted the Director
Commissioner in |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| refusing originally to issue such license.
| 2 |
| (3) If a licensee is other than an individual, any | 3 |
| ultimate
equitable owner, officer, director, or member of | 4 |
| the licensed partnership,
association, corporation, or | 5 |
| other entity has so acted or failed to act as
would be | 6 |
| cause for suspending or revoking a license to that party as | 7 |
| an
individual.
| 8 |
| (b) No license shall be suspended or revoked, except as | 9 |
| provided in this
Section, nor shall any licensee be fined | 10 |
| without notice of his or her right
to a hearing as provided in | 11 |
| Section 4-12 of this Act.
| 12 |
| (c) The Director Commissioner , on good cause shown that an | 13 |
| emergency exists, may
suspend any license for a period not
| 14 |
| exceeding 180 days, pending investigation. Upon a showing that | 15 |
| a
licensee has failed to meet the experience or educational | 16 |
| requirements of
Section 2-2 or the requirements of subsection | 17 |
| (g) of Section 3-2, the Director
Commissioner shall suspend, | 18 |
| prior to hearing as provided in Section 4-12, the
license until | 19 |
| those requirements have been met.
| 20 |
| (d) The provisions of subsection (e) of Section 2-6 of this | 21 |
| Act
shall not affect a licensee's civil or criminal liability
| 22 |
| for acts committed prior to surrender of a license.
| 23 |
| (e) No revocation, suspension or surrender of any license | 24 |
| shall impair
or affect the obligation of any pre-existing | 25 |
| lawful contract between the
licensee and any person.
| 26 |
| (f) Every license issued under this Act shall remain in |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| force and effect
until the same shall have expired without | 2 |
| renewal, have been surrendered,
revoked or suspended in | 3 |
| accordance with the provisions of this Act, but the Director
| 4 |
| Commissioner shall have authority to reinstate a suspended | 5 |
| license or to
issue a new license to a licensee whose license | 6 |
| shall have been revoked if
no fact or condition then exists | 7 |
| which would have warranted the Director
Commissioner in | 8 |
| refusing originally to issue such license under this Act.
| 9 |
| (g) Whenever the Director Commissioner shall revoke or | 10 |
| suspend a license issued
pursuant to this Act or fine a | 11 |
| licensee under this Act, he or she shall
forthwith execute in | 12 |
| duplicate a written order to that effect. The Director
| 13 |
| Commissioner shall publish notice of such order in the Illinois | 14 |
| Register
or and post notice of the order on an agency Internet | 15 |
| site maintained by the Director Commissioner and shall | 16 |
| forthwith serve a copy of such order upon the
licensee. Any | 17 |
| such order may be reviewed in the manner provided by
Section | 18 |
| 4-12 of this Act.
| 19 |
| (h) When the Director Commissioner finds any person in | 20 |
| violation of the grounds
set forth in subsection (i), he or she | 21 |
| may enter an order imposing one or
more of the following | 22 |
| penalties:
| 23 |
| (1) Revocation of license;
| 24 |
| (2) Suspension of a license subject to reinstatement | 25 |
| upon satisfying all
reasonable conditions the Director | 26 |
| Commissioner may specify;
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (3) Placement of the licensee or applicant on probation | 2 |
| for a period of
time and subject to all reasonable | 3 |
| conditions as the Director Commissioner may specify;
| 4 |
| (4) Issuance of a reprimand;
| 5 |
| (5) Imposition of a fine not to exceed $25,000 for each
| 6 |
| count of
separate offense; and
| 7 |
| (6) Denial of a license.
| 8 |
| (i) The following acts shall constitute grounds for which | 9 |
| the
disciplinary actions specified in subsection (h) above may | 10 |
| be taken:
| 11 |
| (1) Being convicted or found guilty, regardless of | 12 |
| pendency of an
appeal, of a crime in any jurisdiction which | 13 |
| involves fraud, dishonest
dealing, or any other act of | 14 |
| moral turpitude;
| 15 |
| (2) Fraud, misrepresentation, deceit or negligence in | 16 |
| any mortgage
financing transaction;
| 17 |
| (3) A material or intentional misstatement of fact on | 18 |
| an initial or
renewal application;
| 19 |
| (4) Failure to follow the Director's Commissioner's | 20 |
| regulations with respect to
placement of funds in escrow | 21 |
| accounts;
| 22 |
| (5) Insolvency or filing under any provision of the | 23 |
| Bankruptcy Code
as a debtor;
| 24 |
| (6) Failure to account or deliver to any person any | 25 |
| property such as any
money, fund, deposit, check, draft, | 26 |
| mortgage, or other document or thing of
value, which has |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| come into his or her hands and which is not his or her
| 2 |
| property or which he or she is not in law or equity | 3 |
| entitled to retain,
under the circumstances and at the time | 4 |
| which has been agreed upon or is
required by law or, in the | 5 |
| absence of a fixed time, upon demand of the
person entitled | 6 |
| to such accounting and delivery;
| 7 |
| (7) Failure to disburse funds in accordance with | 8 |
| agreements;
| 9 |
| (8) Any misuse, misapplication, or misappropriation of | 10 |
| trust funds
or escrow funds;
| 11 |
| (9) Having a license, or the equivalent, to practice | 12 |
| any profession or
occupation revoked, suspended, or | 13 |
| otherwise acted against, including the
denial of licensure | 14 |
| by a licensing authority of this State or another
state, | 15 |
| territory or country for fraud, dishonest dealing or any | 16 |
| other act
of moral turpitude;
| 17 |
| (10) Failure to issue a satisfaction of mortgage when | 18 |
| the residential
mortgage has been executed and proceeds | 19 |
| were not disbursed to the benefit
of the mortgagor and when | 20 |
| the mortgagor has fully paid licensee's costs
and | 21 |
| commission;
| 22 |
| (11) Failure to comply with any order of the | 23 |
| Commissioner or rule made
or issued under the provisions of | 24 |
| this Act;
| 25 |
| (12) Engaging in activities regulated by this Act | 26 |
| without a current,
active license unless specifically |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| exempted by this Act;
| 2 |
| (13) Failure to pay in a timely manner any fee, charge | 3 |
| or fine under
this Act;
| 4 |
| (14) Failure to maintain, preserve, and keep available | 5 |
| for examination,
all books, accounts or other documents | 6 |
| required by the provisions of this
Act and the rules of the | 7 |
| Director Commissioner ;
| 8 |
| (15) Refusing, obstructing, evading, or unreasonably | 9 |
| delaying an investigation, information request, or | 10 |
| examination authorized under this Act, or refusing, | 11 |
| obstructing, evading, or unreasonably delaying compliance | 12 |
| with the Director's Refusal to permit an investigation or | 13 |
| examination of the licensee's
or its affiliates' books and | 14 |
| records or refusal to comply with the
Commissioner's | 15 |
| subpoena or subpoena duces tecum;
| 16 |
| (16) A pattern of substantially underestimating the | 17 |
| maximum closing costs;
| 18 |
| (17) Failure to comply with or violation of any | 19 |
| provision of this Act.
| 20 |
| (j) A licensee shall be subject to the disciplinary actions | 21 |
| specified in
this Act for violations of subsection (i) by any | 22 |
| officer, director,
shareholder, joint venture, partner, | 23 |
| ultimate equitable owner, or employee
of the licensee.
| 24 |
| (k) Such licensee shall be subject to suspension or | 25 |
| revocation for
employee actions only if there is a pattern of | 26 |
| repeated violations by
employees or the licensee has knowledge |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| of the violations.
| 2 |
| (l) Procedure for surrender of license:
| 3 |
| (1) The Director Commissioner may, after 10 days notice | 4 |
| by certified mail to the
licensee at the address set forth | 5 |
| on the license, stating the contemplated
action and in | 6 |
| general the grounds therefor and the date, time and place | 7 |
| of
a hearing thereon, and after providing the licensee with | 8 |
| a reasonable
opportunity to be heard prior to such action, | 9 |
| fine such licensee an amount
not exceeding $25,000
per | 10 |
| violation, or revoke or suspend any license
issued | 11 |
| hereunder if he or she finds that:
| 12 |
| (i) The licensee has failed to comply with any | 13 |
| provision of this Act or
any order, decision, finding, | 14 |
| rule, regulation or direction of the Director
| 15 |
| Commissioner lawfully made pursuant to the authority | 16 |
| of this Act; or
| 17 |
| (ii) Any fact or condition exists which, if it had | 18 |
| existed at the time
of the original application for the | 19 |
| license, clearly would have warranted
the Commissioner | 20 |
| in refusing to issue the license.
| 21 |
| (2) A surrender of a license Any licensee may surrender | 22 |
| a license by delivering to the
Commissioner written notice | 23 |
| that he or she thereby surrenders such license,
but | 24 |
| surrender shall not affect the licensee's civil or criminal | 25 |
| liability
for acts committed prior to surrender or entitle | 26 |
| the licensee to a return
of any part of the license fee.
|
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| (Source: P.A. 93-561, eff. 1-1-04; 93-1018, eff. 1-1-05.)
| 2 |
| (205 ILCS 635/4-6) (from Ch. 17, par. 2324-6)
| 3 |
| Sec. 4-6. Investigation of Complaints. The Director | 4 |
| Commissioner shall at all times maintain staff and facilities
| 5 |
| adequate to receive, record and investigate complaints and | 6 |
| inquiries made by
any person concerning this Act and any | 7 |
| licensees under this Act. Each
licensee shall open its books, | 8 |
| records, documents and offices wherever
situated to the | 9 |
| Director Commissioner or his or her appointees as needed to | 10 |
| facilitate
such investigations.
| 11 |
| (Source: P.A. 85-735.)
| 12 |
| (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
| 13 |
| Sec. 4-8. Default rate; examination.
| 14 |
| (a) The Director Commissioner shall obtain from the U.S. | 15 |
| Department of Housing and
Urban Development on a semi-annual | 16 |
| basis that Department's default claim rates
for endorsements | 17 |
| issued by that Department.
| 18 |
| (b) The Director Commissioner shall conduct an examination | 19 |
| of each licensee
having a default rate equal to or greater than | 20 |
| 5%.
| 21 |
| This subsection shall not be construed as a limitation
of | 22 |
| the Director's Commissioner's examination authority under | 23 |
| Section 4-2 of this Act or as
otherwise provided in this Act.
| 24 |
| The Director Commissioner may require a licensee to provide |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| loan default
data as the Director Commissioner deems necessary | 2 |
| for the proper enforcement
of the Act.
| 3 |
| (c) The purpose of the examination under subsection (b) | 4 |
| shall be
to determine whether the default rate of the
licensee | 5 |
| has resulted from practices which deviate from
sound and | 6 |
| accepted mortgage underwriting practices, including but not
| 7 |
| limited to credit fraud, appraisal fraud and property | 8 |
| inspection fraud.
For the purpose of conducting this | 9 |
| examination, the Director Commissioner may accept
materials | 10 |
| prepared for the U.S. Department of Housing and Urban | 11 |
| Development.
At the conclusion of the examination, the Director | 12 |
| Commissioner shall make his or
her findings available to the | 13 |
| Residential Mortgage Board.
| 14 |
| (d) The Director Commissioner , at his or her discretion, | 15 |
| may hold public
hearings, or at the direction of the | 16 |
| Residential Mortgage Board, shall hold
public hearings. Such | 17 |
| testimony shall be by a homeowner or mortgagor or his
agent, | 18 |
| whose residential interest is affected by the activities of the
| 19 |
| residential mortgage licensee subject to such hearing.
At such | 20 |
| public hearing, a witness may present testimony on his or her | 21 |
| behalf
concerning only his or her home, or home mortgage or a | 22 |
| witness may authorize a
third party to appear on his or her | 23 |
| behalf. The testimony shall be
restricted to information and | 24 |
| comments related to a specific residence or
specific | 25 |
| residential mortgage application or applications for a | 26 |
| residential
mortgage or residential loan transaction. The |
|
|
|
SB1998 |
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LRB095 18639 MJR 44726 b |
|
| 1 |
| testimony must be preceded
by either a letter of complaint or a | 2 |
| completed consumer complaint form
prescribed by the | 3 |
| Commissioner.
| 4 |
| (e) The Director Commissioner shall, at the conclusion of | 5 |
| the public hearings,
release his or her findings and shall also | 6 |
| make public any action taken
with respect to the licensee. The | 7 |
| Director Commissioner shall also give full
consideration to the | 8 |
| findings of this examination whenever reapplication is
made by | 9 |
| the licensee for a new license under this Act.
| 10 |
| (f) A licensee that is examined pursuant to subsection (b)
| 11 |
| shall submit to the Director Commissioner a plan which shall be | 12 |
| designed to reduce that
licensee's default rate to a figure | 13 |
| that is
less than 5%. The plan shall be implemented by the
| 14 |
| licensee as approved by the Director Commissioner . A licensee | 15 |
| that is
examined pursuant to subsection (b) shall report | 16 |
| monthly,
for a one year period, one, 2, and 3 month defaults.
| 17 |
| (g) Whenever the Director Commissioner finds that a | 18 |
| licensee's
default rate
on insured mortgages is unusually high | 19 |
| within a particular
geographic area, he or she shall require | 20 |
| that licensee to submit such
information as is necessary to | 21 |
| determine whether that licensee's practices
have constituted | 22 |
| credit fraud, appraisal fraud or property inspection
fraud. The | 23 |
| Director Commissioner shall promulgate such rules as are | 24 |
| necessary to
determine whether any licensee's default rate is
| 25 |
| unusually high within a particular area.
| 26 |
| (Source: P.A. 89-355, eff. 1-1-96; 89-626, eff. 8-9-96; 90-301, |
|
|
|
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|
| 1 |
| eff. 8-1-97.)
| 2 |
| (205 ILCS 635/4-8.2)
| 3 |
| Sec. 4-8.2. Reports of violations. Any person licensed | 4 |
| under this Act or
any other person may report to the Director | 5 |
| Commissioner any information to show that a
person subject to | 6 |
| this Act is or may be in violation of this Act.
| 7 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 8 |
| (205 ILCS 635/4-8.3) | 9 |
| Sec. 4-8.3. Annual reports report of mortgage , brokerage, | 10 |
| and servicing activity. On or before March 1 of each year, or | 11 |
| by the date selected by the multistate automated licensing | 12 |
| system, each licensee , except residential mortgage brokers, | 13 |
| shall file a report of its mortgage, brokerage, and servicing | 14 |
| activity with the Director Commissioner that shall disclose | 15 |
| such information as the Commissioner requires. Exempt entities | 16 |
| as defined in subsection (d) of Section 1-4 shall not file the | 17 |
| annual reports report of mortgage , brokerage, and servicing | 18 |
| activity required by this Section.
| 19 |
| (Source: P.A. 93-1018, eff. 1-1-05.)
| 20 |
| (205 ILCS 635/4-10) (from Ch. 17, par. 2324-10)
| 21 |
| (Text of Section before amendment by P.A. 95-691 )
| 22 |
| Sec. 4-10. Rules and Regulations of the Director | 23 |
| Commissioner . (a) In addition to such powers as may be |
|
|
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|
| 1 |
| prescribed by this Act, the Director
Commissioner is hereby | 2 |
| authorized and empowered to promulgate regulations
consistent | 3 |
| with the purposes of this Act, including but not limited to:
| 4 |
| (1) Such rules and regulations in connection with the | 5 |
| activities of
licensees as may be necessary and appropriate for | 6 |
| the protection of
consumers in this State;
| 7 |
| (2) Such rules and regulations as may be necessary and | 8 |
| appropriate to
define improper or fraudulent business | 9 |
| practices in connection with the
activities of licensees in | 10 |
| making mortgage loans;
| 11 |
| (3) Such rules and regulations as may define the terms used | 12 |
| in this Act
and as may be necessary and appropriate to | 13 |
| interpret and implement the
provisions of this Act; and
| 14 |
| (4) Such rules and regulations as may be necessary for the | 15 |
| enforcement of this Act.
| 16 |
| (b) The Director Commissioner is hereby authorized and | 17 |
| empowered to make such
specific rulings, demands and findings | 18 |
| as he or she may deem necessary for the
proper conduct of the | 19 |
| mortgage lending industry.
| 20 |
| (Source: P.A. 85-735.)
| 21 |
| (Text of Section after amendment by P.A. 95-691 )
| 22 |
| Sec. 4-10. Rules and Regulations of the Director | 23 |
| Commissioner .
| 24 |
| (a) In addition to such powers as may be prescribed by this | 25 |
| Act, the Director
Commissioner is hereby authorized and |
|
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|
| 1 |
| empowered to promulgate regulations
consistent with the | 2 |
| purposes of this Act, including but not limited to:
| 3 |
| (1) Such rules and regulations in connection with the | 4 |
| activities of
licensees as may be necessary and appropriate | 5 |
| for the protection of
consumers in this State;
| 6 |
| (2) Such rules and regulations as may be necessary and | 7 |
| appropriate to
define improper or fraudulent business | 8 |
| practices in connection with the
activities of licensees in | 9 |
| making mortgage loans;
| 10 |
| (3) Such rules and regulations as may define the terms | 11 |
| used in this Act
and as may be necessary and appropriate to | 12 |
| interpret and implement the
provisions of this Act; and
| 13 |
| (4) Such rules and regulations as may be necessary for | 14 |
| the enforcement of this Act.
| 15 |
| (b) The Director Commissioner is hereby authorized and | 16 |
| empowered to make such
specific rulings, demands and findings | 17 |
| as he or she may deem necessary for the
proper conduct of the | 18 |
| mortgage lending industry. | 19 |
| (c) A person or entity may make a written application to | 20 |
| the Department for a written interpretation of this Act. The | 21 |
| Department may then, in its sole discretion, choose to issue a | 22 |
| written interpretation. To be valid, a written interpretation | 23 |
| must be signed by the Secretary, or his or her designated | 24 |
| Director of Financial and Professional Regulation, and the | 25 |
| Department's General Counsel. A written interpretation expires | 26 |
| 2 years after the date that it was issued. |
|
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|
| 1 |
| (d) No provision in this Act that imposes liability or | 2 |
| establishes violations shall apply to any act taken by a person | 3 |
| or entity in conformity with a written interpretation of this | 4 |
| Act that is in effect at the time the act is taken, | 5 |
| notwithstanding whether the written interpretation is later | 6 |
| amended, rescinded, or determined by judicial or other | 7 |
| authority to by invalid for any reason.
| 8 |
| (Source: P.A. 95-691, eff. 6-1-08.)
| 9 |
| (205 ILCS 635/4-11) (from Ch. 17, par. 2324-11)
| 10 |
| Sec. 4-11. Costs of Supervision; Examination and | 11 |
| Investigative Fees.
The expenses of administering this Act, | 12 |
| including investigations and
examinations provided for in this | 13 |
| Act shall be borne by and assessed
against entities regulated | 14 |
| by this Act. The Director Commissioner shall establish
fees by | 15 |
| regulation in at least the following categories:
| 16 |
| (1) application fees;
| 17 |
| (2) investigation of license applicant fees;
| 18 |
| (3) examination fees;
| 19 |
| (4) contingent fees;
| 20 |
| and such other categories as may be required to administer this | 21 |
| Act.
| 22 |
| (Source: P.A. 85-735.)
| 23 |
| (205 ILCS 635/4-12) (from Ch. 17, par. 2324-12)
| 24 |
| Sec. 4-12. Appeal and Review. (a) Any person or entity |
|
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|
| 1 |
| affected by a
decision of the Director Commissioner under any | 2 |
| provision of this Act may obtain
review of such decision within | 3 |
| the Office of the Director Commissioner .
| 4 |
| (b) The Director Commissioner shall, in accordance with the | 5 |
| "Illinois
Administrative Procedure Act", promulgate rules and | 6 |
| regulations to provide
for review within the Office of the | 7 |
| Director Commissioner (hereinafter referred to
as "agency | 8 |
| review") of his or her decisions affecting the rights of | 9 |
| entities
under this Act. Such review shall provide for, at a | 10 |
| minimum:
| 11 |
| (1) appointment of a hearing officer other than a regular | 12 |
| employee of
the Office of the Director Commissioner ;
| 13 |
| (2) appropriate procedural rules, specific deadlines for | 14 |
| filings, and
standards of evidence and of proof;
| 15 |
| (3) provision for apportioning costs among parties to the | 16 |
| appeal.
| 17 |
| (c) All final agency determinations of appeals to decisions | 18 |
| of the Director
Commissioner may be reviewed in accordance with | 19 |
| and under the provisions
of the "Administrative Review Law". | 20 |
| Appeals from all final orders and
judgments entered by a court | 21 |
| in review of any final administrative decision
of the Director | 22 |
| Commissioner or of any final agency review of a decision of the | 23 |
| Director
Commissioner may be taken as in other civil cases.
| 24 |
| (Source: P.A. 85-735.)
| 25 |
| (205 ILCS 635/4-13) (from Ch. 17, par. 2324-13)
|
|
|
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LRB095 18639 MJR 44726 b |
|
| 1 |
| Sec. 4-13. Violations of this Act; Director's | 2 |
| Commissioner's Orders. If the Director
Commissioner finds, as | 3 |
| the result of examination, investigation or review
of reports | 4 |
| submitted by a licensee that the business and affairs of a
| 5 |
| licensee are not being conducted in accordance with this Act, | 6 |
| the Director
Commissioner shall notify the licensee of the | 7 |
| correction necessary. Should
a licensee fail to correct such | 8 |
| violations, the Director Commissioner shall issue an
order | 9 |
| requiring immediate correction and compliance with this Act,
| 10 |
| specifying a reasonable date for performance.
| 11 |
| The Director Commissioner shall promulgate rules and | 12 |
| regulations to provide for an
orderly and timely appeal of all | 13 |
| orders within the Office of the Director Commissioner .
Such | 14 |
| rules shall include provision for assessment of fees and costs.
| 15 |
| (Source: P.A. 85-735.)
| 16 |
| (205 ILCS 635/5-1) (from Ch. 17, par. 2325-1)
| 17 |
| Sec. 5-1. The Director Commissioner may promulgate rules | 18 |
| with respect to
brokering and lending procedures of residential | 19 |
| mortgage licensees as
necessary to accomplish the purposes of | 20 |
| this Act.
| 21 |
| (Source: P.A. 85-735.)
| 22 |
| (205 ILCS 635/6-3) (from Ch. 17, par. 2326-3)
| 23 |
| Sec. 6-3. Appointment of receiver or conservator. When the | 24 |
| Director Commissioner makes
a finding that a receivership or |
|
|
|
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|
| 1 |
| conservatorship is necessary to protect
consumers of a licensee | 2 |
| from the consequences of the licensee's failures to
comply with | 3 |
| this Act or other unsafe and unsound practices, the Director | 4 |
| Commissioner
shall request the Attorney General of this State | 5 |
| to petition the Circuit Court
of Cook County, or of the county | 6 |
| in which the licensee is located, to appoint a
receiver or | 7 |
| conservator for purposes of protecting consumers and resolving | 8 |
| the
affairs of the licensee.
| 9 |
| (Source: P.A. 87-1098.)
| 10 |
| (205 ILCS 635/7-1)
| 11 |
| Sec. 7-1. Registration required; rules and regulations. | 12 |
| Beginning 6 months
after the effective date of this amendatory | 13 |
| Act of the 93rd General Assembly,
it is unlawful for any | 14 |
| natural person to act or assume to act as a loan
originator, as | 15 |
| defined in subsection (hh) of Section 1-4, without being
| 16 |
| registered with the Director Commissioner unless the natural | 17 |
| person is exempt under
items (1) and (1.5) of subsection (d) of | 18 |
| Section 1-4 of this Act. The Director
Commissioner shall | 19 |
| promulgate
rules
prescribing the criteria for the registration | 20 |
| and regulation of loan
originators, including but not limited | 21 |
| to, qualifications, fees, examination,
education, supervision, | 22 |
| and enforcement.
| 23 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 24 |
| Section 95. No acceleration or delay. Where this Act makes |
|
|
|
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|
| 1 |
| changes in a statute that is represented in this Act by text | 2 |
| that is not yet or no longer in effect (for example, a Section | 3 |
| represented by multiple versions), the use of that text does | 4 |
| not accelerate or delay the taking effect of (i) the changes | 5 |
| made by this Act or (ii) provisions derived from any other | 6 |
| Public Act.
| 7 |
| Section 99. Effective date. This Act takes effect January | 8 |
| 1, 2009.
|
|
|
|
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|
| 1 |
|
INDEX
| 2 |
|
Statutes amended in order of appearance
|
| 3 |
| 205 ILCS 635/1-1.5 new |
|
| 4 |
| 205 ILCS 635/1-3 |
from Ch. 17, par. 2321-3 |
| 5 |
| 205 ILCS 635/1-4 |
from Ch. 17, par. 2321-4 |
| 6 |
| 205 ILCS 635/1-5 |
from Ch. 17, par. 2321-5 |
| 7 |
| 205 ILCS 635/2-2 |
from Ch. 17, par. 2322-2 |
| 8 |
| 205 ILCS 635/2-3 |
from Ch. 17, par. 2322-3 |
| 9 |
| 205 ILCS 635/2-4 |
from Ch. 17, par. 2322-4 |
| 10 |
| 205 ILCS 635/2-5 |
from Ch. 17, par. 2322-5 |
| 11 |
| 205 ILCS 635/2-6 |
from Ch. 17, par. 2322-6 |
| 12 |
| 205 ILCS 635/2-7 |
from Ch. 17, par. 2322-7 |
| 13 |
| 205 ILCS 635/2-8 |
from Ch. 17, par. 2322-8 |
| 14 |
| 205 ILCS 635/2-9 |
from Ch. 17, par. 2322-9 |
| 15 |
| 205 ILCS 635/2-11 |
from Ch. 17, par. 2322-11 |
| 16 |
| 205 ILCS 635/3-1 |
from Ch. 17, par. 2323-1 |
| 17 |
| 205 ILCS 635/3-2 |
from Ch. 17, par. 2323-2 |
| 18 |
| 205 ILCS 635/3-3 |
from Ch. 17, par. 2323-3 |
| 19 |
| 205 ILCS 635/3-4 |
from Ch. 17, par. 2323-4 |
| 20 |
| 205 ILCS 635/3-5 |
from Ch. 17, par. 2323-5 |
| 21 |
| 205 ILCS 635/3-9 |
from Ch. 17, par. 2323-9 |
| 22 |
| 205 ILCS 635/4-1 |
from Ch. 17, par. 2324-1 |
| 23 |
| 205 ILCS 635/4-2 |
from Ch. 17, par. 2324-2 |
| 24 |
| 205 ILCS 635/4-3 |
from Ch. 17, par. 2324-3 |
| 25 |
| 205 ILCS 635/4-4 |
from Ch. 17, par. 2324-4 |
|
|
|
|
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|
| 1 |
| 205 ILCS 635/4-5 |
from Ch. 17, par. 2324-5 |
| 2 |
| 205 ILCS 635/4-6 |
from Ch. 17, par. 2324-6 |
| 3 |
| 205 ILCS 635/4-8 |
from Ch. 17, par. 2324-8 |
| 4 |
| 205 ILCS 635/4-8.2 |
|
| 5 |
| 205 ILCS 635/4-8.3 |
|
| 6 |
| 205 ILCS 635/4-10 |
from Ch. 17, par. 2324-10 |
| 7 |
| 205 ILCS 635/4-11 |
from Ch. 17, par. 2324-11 |
| 8 |
| 205 ILCS 635/4-12 |
from Ch. 17, par. 2324-12 |
| 9 |
| 205 ILCS 635/4-13 |
from Ch. 17, par. 2324-13 |
| 10 |
| 205 ILCS 635/5-1 |
from Ch. 17, par. 2325-1 |
| 11 |
| 205 ILCS 635/6-3 |
from Ch. 17, par. 2326-3 |
| 12 |
| 205 ILCS 635/7-1 |
|
| |
|