(205 ILCS 635/3-11) Sec. 3-11. Remote location operations. Licensees may allow mortgage loan originators to work from a remote location if: (1) the licensee has written policies and procedures |
| for the supervision of mortgage loan originators working from a remote location;
|
|
(2) access to company platforms and customer
|
| information is in accordance with the licensee's comprehensive written information security plan;
|
|
(3) no in-person customer interaction occurs at a
|
| mortgage originator's residence unless that residence is a licensed location;
|
|
(4) physical records are not maintained at a remote
|
|
(5) customer interactions and conversations about
|
| consumers will be in compliance with federal and State information security requirements, including applicable provisions under the federal Gramm-Leach-Bliley Act and the Safeguards Rule established by the Federal Trade Commission and set forth in 16 CFR Part 314, as such requirements may be amended from time to time;
|
|
(6) mortgage loan originators working at a remote
|
| location access the company's secure systems, including a cloud-based system, directly from any out-of-office device the mortgage loan originator uses, including, but not limited to, a laptop, phone, desktop computer, or tablet, via a virtual private network or comparable system that ensures secure connectivity and requires passwords or other forms of authentication to access;
|
|
(7) the licensee ensures that appropriate security
|
| updates, patches, or other alterations to the security of all devices used at remote locations are installed and maintained;
|
|
(8) the licensee has an ability to remotely lock or
|
| erase company-related contents of any device or otherwise remotely limit all access to a company's secure systems; and
|
|
(9) the Nationwide Multistate Licensing System and
|
| Registry record of a loan originator that works from a remote location designates the principal place of business as the loan originator's registered location unless the loan originator elects another licensed branch office as a registered location.
|
|
(Source: P.A. 103-156, eff. 1-1-24 .)
|
(205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
Sec. 4-1. Commissioner of Banks and Real Estate; functions, powers, and duties. The functions,
powers, and duties of the Commissioner of Banks and Real Estate shall include the following:
(a) to issue or refuse to issue any license as |
|
(b) to revoke or suspend for cause any license issued
|
|
(c) to keep records of all licenses issued under this
|
|
(d) to receive, consider, investigate, and act upon
|
| complaints made by any person in connection with any residential mortgage licensee in this State;
|
|
(e) (blank);
(f) to prescribe the forms of and receive:
(1) applications for licenses; and
(2) all reports and all books and records
|
| required to be made by any licensee under this Act, including annual audited financial statements and annual reports of mortgage activity;
|
|
(g) to adopt rules and regulations necessary and
|
| proper for the administration of this Act;
|
|
(h) to subpoena documents and witnesses and compel
|
| their attendance and production, to administer oaths, and to require the production of any books, papers, or other materials relevant to any inquiry authorized by this Act;
|
|
(h-1) to issue orders against any person, if the
|
| Commissioner has reasonable cause to believe that an unsafe, unsound, or unlawful practice has occurred, is occurring, or is about to occur, if any person has violated, is violating, or is about to violate any law, rule, or written agreement with the Commissioner, or for the purpose of administering the provisions of this Act and any rule adopted in accordance with the Act;
|
|
(h-2) to address any inquiries to any licensee, or
|
| the officers thereof, in relation to its activities and conditions, or any other matter connected with its affairs, and it shall be the duty of any licensee or person so addressed, to promptly reply in writing to such inquiries. The Commissioner may also require reports from any licensee at any time the Commissioner may deem desirable;
|
|
(i) to require information with regard to any license
|
| applicant as he or she may deem desirable, with due regard to the paramount interests of the public as to the experience, background, honesty, truthfulness, integrity, and competency of the license applicant as to financial transactions involving primary or subordinate mortgage financing, and where the license applicant is an entity other than an individual, as to the honesty, truthfulness, integrity, and competency of any officer or director of the corporation, association, or other entity, or the members of a partnership;
|
|
(j) to examine the books and records of every
|
| licensee under this Act at intervals as specified in Section 4-2;
|
|
(k) to enforce provisions of this Act;
(l) to levy fees, fines, and charges for services
|
| performed in administering this Act; the aggregate of all fees collected by the Commissioner on and after the effective date of this Act shall be paid promptly after receipt of the same, accompanied by a detailed statement thereof, into the Residential Finance Regulatory Fund under Section 4-1.5 of this Act; the amounts deposited into that Fund shall be used for the ordinary and contingent expenses of the Office of Banks and Real Estate. Nothing in this Act shall prevent continuing the practice of paying expenses involving salaries, retirement, social security, and State-paid insurance of State officers by appropriation from the General Revenue Fund.
|
|
(m) to appoint examiners, supervisors, experts, and
|
| special assistants as needed to effectively and efficiently administer this Act;
|
|
(n) to conduct hearings for the purpose of:
(1) appeals of orders of the Commissioner;
(2) suspensions or revocations of licenses, or
|
|
(3) investigating:
(i) complaints against licensees; or
(ii) annual gross delinquency rates; and
(4) carrying out the purposes of this Act;
(o) to exercise exclusive visitorial power over a
|
| licensee unless otherwise authorized by this Act or as vested in the courts, or upon prior consultation with the Commissioner, a foreign residential mortgage regulator with an appropriate supervisory interest in the parent or affiliate of a licensee;
|
|
(p) to enter into cooperative agreements with state
|
| regulatory authorities of other states to provide for examination of corporate offices or branches of those states and to accept reports of such examinations;
|
|
(q) to assign an examiner or examiners to monitor the
|
| affairs of a licensee with whatever frequency the Commissioner determines appropriate and to charge the licensee for reasonable and necessary expenses of the Commissioner, if in the opinion of the Commissioner an emergency exists or appears likely to occur;
|
|
(r) to impose civil penalties of up to $50 per day
|
| against a licensee for failing to respond to a regulatory request or reporting requirement; and
|
|
(s) to enter into agreements in connection with the
|
| Nationwide Multistate Licensing System and Registry.
|
|
(Source: P.A. 100-783, eff. 8-10-18; 100-1153, eff. 12-19-18; 101-81, eff. 7-12-19.)
|
(205 ILCS 635/4-2) (from Ch. 17, par. 2324-2)
Sec. 4-2. Examination; prohibited activities.
(a) The business affairs of a licensee under this Act shall be examined
for compliance with this Act as often as the Secretary deems necessary and
proper. The Secretary shall promulgate rules with respect to the frequency
and manner of examination. The Secretary shall appoint a suitable person
to perform such
examination. The Secretary and his appointees may examine the
entire
books, records, documents, and operations of each licensee and its subsidiary, affiliate, or agent, and may examine
any of the licensee's or its subsidiary's, affiliate's, or agent's officers, directors, employees and agents under oath. For purposes of this Section, "agent" includes service providers such as accountants, closing services providers, providers of outsourced services such as call centers, marketing consultants, and loan processors, even if exempt from licensure under this Act. This Section does not apply to an attorney's privileged work product or communications.
(b) The Secretary shall prepare a
sufficiently
detailed
report of each
licensee's examination, shall issue a copy of such report to each
licensee's principals, officers, or directors and shall take appropriate
steps to ensure correction of violations of this Act.
(c) Affiliates of a licensee shall be subject to examination by the Secretary
on the same terms as the licensee, but only when reports
from, or examination of a licensee provides for documented evidence of
unlawful activity between a licensee and affiliate benefiting, affecting or
deriving from the activities regulated by this Act.
(d) The expenses of any examination of the licensee and affiliates shall
be borne by the licensee and assessed by the Secretary as established
by regulation.
(e) Upon completion of the examination, the Secretary shall issue a
report to the licensee. All confidential supervisory information, including the examination report
and the work papers
of the report, shall belong to the Secretary's office and may not be
disclosed to anyone other than the licensee, law enforcement officials or other
regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or to a party presenting a lawful subpoena to the Office of the Secretary. The Secretary may immediately appeal to the court of jurisdiction the disclosure of such confidential supervisory information and seek a stay of the subpoena pending the outcome of the appeal. Reports required of licensees by the Secretary under this Act
and results of examinations performed by the Secretary under this Act shall
be the property of only the Secretary, but may be shared with the licensee. Access under this
Act to the books and records of each licensee shall be limited to the Secretary
and his agents as provided in this Act and to the licensee and its
authorized agents and designees. No other person shall have access to the
books and records of a licensee under this Act. Any person upon whom a demand for production of confidential supervisory information is made, whether by subpoena, order, or other judicial or administrative process, must withhold production of the confidential supervisory information and must notify the Secretary of the demand, at which time the Secretary is authorized to intervene for the purpose of enforcing the limitations of this Section or seeking the withdrawal or termination of the attempt to compel production of the confidential supervisory information. The Secretary may impose any conditions and limitations on the disclosure of confidential supervisory information that are necessary to protect the confidentiality of such information. Except as authorized by the Secretary, no person obtaining access to confidential supervisory information may make a copy of the confidential supervisory information. The Secretary may condition a decision to disclose confidential supervisory information on entry of a protective order by the court or administrative tribunal presiding in the particular case or on a written agreement of confidentiality. In a case in which a protective order or agreement has already been entered between parties other than the Secretary, the Secretary may nevertheless condition approval for release of confidential supervisory information upon the inclusion of additional or amended provisions in the protective order. The Secretary may authorize a party who obtained the records for use in one case to provide them to another party in another case, subject to any conditions that the Secretary may impose on either or both parties. The requestor shall promptly notify other parties to a case of the release of confidential supervisory information obtained and, upon entry of a protective order, shall provide copies of confidential supervisory information to the other parties.
(f) The Secretary, deputy commissioners, and employees
of the Office of Banks and Real Estate shall be subject to the restrictions
provided in Section 2.5 of the Division of Banking Act including,
without limitation, the restrictions on (i) owning shares of stock or holding
any other equity interest in an entity regulated under this Act or in any
corporation or company that owns or controls an entity regulated under this
Act; (ii) being an officer, director, employee, or agent of an entity regulated
under this Act; and (iii) obtaining a loan or accepting a gratuity from an
entity regulated under this Act.
(g) After the initial examination for those licensees whose only mortgage
activity is servicing fewer than 1,000 Illinois residential loans,
the
examination required in subsection (a) may be waived upon submission of a
letter from the licensee's independent certified auditor that the licensee
serviced fewer than 1,000 Illinois residential loans during the
year
in which the
audit was performed.
(h) An exempt entity under subsection (a-1) of Section 1-3 of this Act shall cooperate with the Secretary in the examination and investigation of its sponsored and licensed mortgage loan originators at a frequency determined by the Secretary. The exempt entity under subsection (a-1) of Section 1-3 of this Act shall cooperate with the Secretary in providing mortgage loan originator documents and access to mortgage loan originator offices for the purposes of examination and investigation. The activities of the exempt entity shall not relieve a mortgage loan originator of his or her individual requirements under Section 7-15 of this Act. An exempt entity under subsection (a-1) of Section 1-3 of this Act shall pay to the Department any examination fees invoiced by the Secretary for examination of its sponsored mortgage loan originators. The Secretary shall have the authority to make oral or written inquiries regarding the management of an exempt entity under subsection (a-1) of Section 1-3 of this Act and it shall be the duty of the exempt entity to promptly reply by telephone, in writing, or other means to the inquiry. (Source: P.A. 98-492, eff. 8-16-13.)
|
(205 ILCS 635/4-5) (from Ch. 17, par. 2324-5)
Sec. 4-5. Suspension, revocation of licenses; fines.
(a) Upon written notice to a licensee, the Commissioner may suspend
or revoke any license issued pursuant to this Act if he or she shall make a
finding of one or more of the following in the notice that:
(1) Through separate acts or an act or a course of |
| conduct, the licensee has violated any provisions of this Act, any rule or regulation promulgated by the Commissioner or of any other law, rule or regulation of this State or the United States.
|
|
(2) Any fact or condition exists which, if it had
|
| existed at the time of the original application for such license would have warranted the Commissioner in refusing originally to issue such license.
|
|
(3) If a licensee is other than an individual, any
|
| ultimate equitable owner, officer, director, or member of the licensed partnership, association, corporation, or other entity has so acted or failed to act as would be cause for suspending or revoking a license to that party as an individual.
|
|
(b) No license shall be suspended or revoked, except as provided in this
Section, nor shall any licensee be fined without notice of his or her right
to a hearing as provided in Section 4-12 of this Act.
(c) The Commissioner, on good cause shown that an emergency exists, may
suspend any license for a period not
exceeding 180 days, pending investigation. Upon a showing that a
licensee has failed to meet the experience or educational requirements of
Section 2-2 or the requirements of subsection (g) of Section 3-2, the
Commissioner shall suspend, prior to hearing as provided in Section 4-12, the
license until those requirements have been met.
(d) The provisions of subsection (e) of Section 2-6 of this Act
shall not affect a licensee's civil or criminal liability
for acts committed prior to surrender of a license.
(e) No revocation, suspension or surrender of any license shall impair
or affect the obligation of any pre-existing lawful contract between the
licensee and any person.
(f) Every license issued under this Act shall remain in force and effect
until the same shall have expired without renewal, have been surrendered,
revoked or suspended in accordance with the provisions of this Act, but the
Commissioner shall have authority to reinstate a suspended license or to
issue a new license to a licensee whose license shall have been revoked if
no fact or condition then exists which would have warranted the
Commissioner in refusing originally to issue such license under this Act.
(g) Whenever the Commissioner shall revoke or suspend a license issued
pursuant to this Act or fine a licensee under this Act, he or she shall
forthwith execute a written order to that effect. The
Commissioner shall post notice of the order on an agency Internet site maintained by the Commissioner or on the Nationwide Multistate Licensing System and Registry and shall forthwith serve a copy of such order upon the
licensee. Any such order may be reviewed in the manner provided by
Section 4-12 of this Act.
(h) When the Commissioner finds any person in violation of the grounds
set forth in subsection (i), he or she may enter an order imposing one or
more of the following penalties:
(1) Revocation of license;
(2) Suspension of a license subject to reinstatement
|
| upon satisfying all reasonable conditions the Commissioner may specify;
|
|
(3) Placement of the licensee or applicant on
|
| probation for a period of time and subject to all reasonable conditions as the Commissioner may specify;
|
|
(4) Issuance of a reprimand;
(5) Imposition of a fine not to exceed $25,000 for
|
| each count of separate offense, provided that a fine may be imposed not to exceed $75,000 for each separate count of offense of paragraph (2) of subsection (i) of this Section; and
|
|
(6) Denial of a license.
(i) The following acts shall constitute grounds for which the
disciplinary actions specified in subsection (h) above may be taken:
(1) Being convicted or found guilty, regardless of
|
| pendency of an appeal, of a crime in any jurisdiction which involves fraud, dishonest dealing, or any other act of moral turpitude;
|
|
(2) Fraud, misrepresentation, deceit or negligence in
|
| any mortgage financing transaction;
|
|
(3) A material or intentional misstatement of fact on
|
| an initial or renewal application;
|
|
(4) Failure to follow the Commissioner's regulations
|
| with respect to placement of funds in escrow accounts;
|
|
(5) Insolvency or filing under any provision of the
|
| Bankruptcy Code as a debtor;
|
|
(6) Failure to account or deliver to any person any
|
| property such as any money, fund, deposit, check, draft, mortgage, or other document or thing of value, which has come into his or her hands and which is not his or her property or which he or she is not in law or equity entitled to retain, under the circumstances and at the time which has been agreed upon or is required by law or, in the absence of a fixed time, upon demand of the person entitled to such accounting and delivery;
|
|
(7) Failure to disburse funds in accordance with
|
|
(8) Any misuse, misapplication, or misappropriation
|
| of trust funds or escrow funds;
|
|
(9) Having a license, or the equivalent, to practice
|
| any profession or occupation revoked, suspended, or otherwise acted against, including the denial of licensure by a licensing authority of this State or another state, territory or country for fraud, dishonest dealing or any other act of moral turpitude;
|
|
(10) Failure to issue a satisfaction of mortgage when
|
| the residential mortgage has been executed and proceeds were not disbursed to the benefit of the mortgagor and when the mortgagor has fully paid licensee's costs and commission;
|
|
(11) Failure to comply with any order of the
|
| Commissioner or rule made or issued under the provisions of this Act;
|
|
(12) Engaging in activities regulated by this Act
|
| without a current, active license unless specifically exempted by this Act;
|
|
(13) Failure to pay in a timely manner any fee,
|
| charge or fine under this Act;
|
|
(14) Failure to maintain, preserve, and keep
|
| available for examination, all books, accounts or other documents required by the provisions of this Act and the rules of the Commissioner;
|
|
(15) Refusing, obstructing, evading, or unreasonably
|
| delaying an investigation, information request, or examination authorized under this Act, or refusing, obstructing, evading, or unreasonably delaying compliance with the Director's subpoena or subpoena duces tecum;
|
|
(16) A pattern of substantially underestimating the
|
|
(17) Failure to comply with or violation of any
|
|
(18) Failure to comply with or violation of any
|
| provision of Article 3 of the Residential Real Property Disclosure Act.
|
|
(j) A licensee shall be subject to the disciplinary actions specified in
this Act for violations of subsection (i) by any officer, director,
shareholder, joint venture, partner, ultimate equitable owner, or employee
of the licensee.
(k) Such licensee shall be subject to suspension or revocation for
unauthorized employee actions only if there is a pattern of repeated violations by
employees or the licensee has knowledge of the violations, or there is substantial harm to a consumer.
(l) Procedure for surrender of license:
(1) The Commissioner may, after 10 days notice by
|
| certified mail to the licensee at the address set forth on the license, stating the contemplated action and in general the grounds therefor and the date, time and place of a hearing thereon, and after providing the licensee with a reasonable opportunity to be heard prior to such action, fine such licensee an amount not exceeding $25,000 per violation, or revoke or suspend any license issued hereunder if he or she finds that:
|
|
(i) The licensee has failed to comply with any
|
| provision of this Act or any order, decision, finding, rule, regulation or direction of the Commissioner lawfully made pursuant to the authority of this Act; or
|
|
(ii) Any fact or condition exists which, if it
|
| had existed at the time of the original application for the license, clearly would have warranted the Commissioner in refusing to issue the license.
|
|
(2) Any licensee may submit application to surrender
|
| a license, but upon the Director approving the surrender, it shall not affect the licensee's civil or criminal liability for acts committed prior to surrender or entitle the licensee to a return of any part of the license fee.
|
|
(Source: P.A. 99-15, eff. 1-1-16; 100-1153, eff. 12-19-18.)
|
(205 ILCS 635/4-7) Sec. 4-7. Additional investigation and examination authority. In addition to any authority allowed under this Act, the Director shall have the authority to conduct investigations and examinations as follows: (a) For purposes of initial licensing, license renewal, license suspension, license conditioning, license revocation or termination, or general or specific inquiry or investigation to determine compliance with this Act, the Commissioner shall have the authority to access, receive, and use any books, accounts, records, files, documents, information, or evidence including, but not limited to, the following: (1) criminal, civil, and administrative history |
| information, including nonconviction data as specified in the Criminal Code of 2012;
|
|
(2) personal history and experience information,
|
| including independent credit reports obtained from a consumer reporting agency described in Section 603(p) of the federal Fair Credit Reporting Act; and
|
|
(3) any other documents, information, or evidence
|
| the Commissioner deems relevant to the inquiry or investigation regardless of the location, possession, control, or custody of the documents, information, or evidence.
|
|
(b) For the purposes of investigating violations or complaints arising under this Act, or for the purposes of examination, the Commissioner may review, investigate, or examine any licensee, individual, or person subject to this Act, as often as necessary in order to carry out the purposes of this Act. The Commissioner may direct, subpoena, or order the attendance of and examine under oath all persons whose testimony may be required about the loans or the business or subject matter of any such examination or investigation, and may direct, subpoena, or order the person to produce books, accounts, records, files, and any other documents the Commissioner deems relevant to the inquiry.
(c) Each licensee, individual, or person subject to this Act shall make available to the Commissioner upon request the books and records relating to the operations of such licensee, individual, or person subject to this Act. The Commissioner shall have access to such books and records and interview the officers, principals, mortgage loan originators, employees, independent contractors, agents, and customers of the licensee, individual, or person subject to this Act concerning their business.
(d) Each licensee, individual, or person subject to this Act shall make or compile reports or prepare other information as directed by the Commissioner in order to carry out the purposes of this Section including, but not limited to:
(1) accounting compilations;
(2) information lists and data concerning loan
|
| transactions in a format prescribed by the Commissioner; or
|
|
(3) other information deemed necessary to carry out
|
| the purposes of this Section.
|
|
(e) In making any examination or investigation authorized by this Act, the Commissioner may control access to any documents and records of the licensee or person under examination or investigation. The Commissioner may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no individual or person shall remove or attempt to remove any of the documents and records except pursuant to a court order or with the consent of the Commissioner. Unless the Commissioner has reasonable grounds to believe the documents or records of the licensee have been, or are at risk of being altered or destroyed for purposes of concealing a violation of this Act, the licensee or owner of the documents and records shall have access to the documents or records as necessary to conduct its ordinary business affairs.
(f) In order to carry out the purposes of this Section, the Commissioner may:
(1) retain attorneys, accountants, or other
|
| professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;
|
|
(2) enter into agreements or relationships with
|
| other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information or evidence obtained under this Section;
|
|
(3) use, hire, contract, or employ public or
|
| privately available analytical systems, methods, or software to examine or investigate the licensee, individual, or person subject to this Act;
|
|
(4) accept and rely on examination or investigation
|
| reports made by other government officials, within or without this State; or
|
|
(5) accept audit reports made by an independent
|
| certified public accountant for the licensee, individual, or person subject to this Act in the course of that part of the examination covering the same general subject matter as the audit and may incorporate the audit report in the report of the examination, report of investigation, or other writing of the Commissioner.
|
|
(g) The authority of this Section shall remain in effect, whether such a licensee, individual, or person subject to this Act acts or claims to act under any licensing or registration law of this State, or claims to act without the authority.
(h) No licensee, individual, or person subject to investigation or examination under this Section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any books, records, computer records, or other information.
(Source: P.A. 96-112, eff. 7-31-09; 97-1150, eff. 1-25-13.)
|