Full Text of SB1178 95th General Assembly
SB1178 95TH GENERAL ASSEMBLY
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95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008 SB1178
Introduced 2/8/2007, by Sen. Terry Link SYNOPSIS AS INTRODUCED: |
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205 ILCS 635/1-3 |
from Ch. 17, par. 2321-3 |
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Amends the Residential Mortgage License Act of 1987. Makes a technical change
in a Section concerning the necessity of obtaining a license.
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A BILL FOR
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SB1178 |
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LRB095 07344 MJR 27485 b |
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Residential Mortgage License Act of 1987 is | 5 |
| amended by changing Section 1-3 as follows:
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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 | 9 |
| other entity
shall engage in the
the business of brokering, | 10 |
| funding, originating, servicing
or purchasing of residential | 11 |
| mortgage loans without first obtaining a
license from the | 12 |
| Commissioner in accordance with the licensing procedure
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| provided in this Article I and such regulations as may be | 14 |
| promulgated by
the Commissioner. The licensing provisions of | 15 |
| this Section shall not apply
to any entity engaged solely in | 16 |
| commercial mortgage lending or
to any person, partnership | 17 |
| association, corporation or other entity
exempted pursuant to | 18 |
| Section 1-4, subsection (d), of this Act or in accordance
with | 19 |
| regulations promulgated by the Commissioner hereunder. | 20 |
| (b) No person, partnership, association, corporation, or | 21 |
| other entity
except a licensee under this Act or an entity | 22 |
| exempt from licensing
pursuant to Section 1-4, subsection (d), | 23 |
| of this Act shall do any business
under any name or title, or |
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LRB095 07344 MJR 27485 b |
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| circulate or use any advertising or make any
representation or | 2 |
| 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 Commissioner may, through the Attorney General, | 5 |
| request the circuit
court of either Cook or Sangamon County to | 6 |
| issue an injunction to restrain
any person from violating or | 7 |
| continuing to violate any of the foregoing
provisions of this | 8 |
| Section.
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| (d) When the Commissioner has reasonable cause to believe | 10 |
| that any
entity which has not submitted an application for | 11 |
| licensure is conducting
any of the activities described in | 12 |
| subsection (a) hereof, the Commissioner
shall have the power to | 13 |
| examine all books and records of the entity and any
additional | 14 |
| documentation necessary in order to determine whether such
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| entity should become licensed under this Act.
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| (d-1) The Commissioner may issue orders against any person | 17 |
| if the Commissioner has reasonable cause to believe that an | 18 |
| unsafe, unsound, or unlawful practice has occurred, is | 19 |
| occurring, or is about to occur, if any person has violated, is | 20 |
| violating, or is about to violate any law, rule, or written | 21 |
| agreement with the Commissioner, or for the purposes of | 22 |
| administering the provisions of this Act and any rule adopted | 23 |
| in accordance with this Act.
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| (e) Any person, partnership, association, corporation or | 25 |
| other entity
who violates any provision of this Section commits | 26 |
| a business offense and
shall be fined an amount not to exceed |
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LRB095 07344 MJR 27485 b |
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| $25,000.
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| (f) Each person, partnership, association, corporation or | 3 |
| other entity
conducting activities regulated by this Act shall | 4 |
| be issued one license.
Each office, place of business or | 5 |
| location at which a residential mortgage
licensee conducts any | 6 |
| part of his or her business must
be recorded with the | 7 |
| Commissioner pursuant to Section 2-8 of this Act.
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| (g) Licensees under this Act shall solicit, broker, fund, | 9 |
| originate,
service and purchase residential mortgage loans | 10 |
| only in conformity with the
provisions of this Act and such | 11 |
| rules and regulations as may be promulgated
by the | 12 |
| Commissioner.
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| (h) This Act applies to all entities doing business in | 14 |
| Illinois as
residential mortgage bankers, as defined by "An Act | 15 |
| to provide for the
regulation of mortgage bankers", approved | 16 |
| September 15, 1977, as amended,
regardless of whether licensed | 17 |
| under that or any prior Act. Any existing
residential mortgage | 18 |
| lender or residential mortgage broker in Illinois
whether or | 19 |
| not previously licensed, must operate in accordance with this | 20 |
| Act.
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| (i) This Act is a successor Act to and a continuance of the | 22 |
| regulation
of residential mortgage bankers provided in, "An Act | 23 |
| to provide for the
regulation of mortgage bankers", approved | 24 |
| September 15, 1977, as amended.
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| Entities and persons subject to the predecessor Act shall | 26 |
| be subject to
this Act from and after its effective date.
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LRB095 07344 MJR 27485 b |
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| (Source: P.A. 93-1018, eff. 1-1-05.)
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