(815 ILCS 175/15-5.15)
(a) "Loan Broker" means any person who, in return for a fee, commission,
or other compensation from any person, promises to procure a loan for any
assist any person in procuring a loan from any third party, or who
promises to consider whether or not to make a loan to any person.
(b) Loan broker does not include any of the following:
(1) Any bank, savings bank, trust company, savings
and loan association, credit union or any other financial institution regulated by any agency of the United States or authorized to do business in this State.
(2) Any person authorized to sell and service loans
for the federal National Mortgage Association or the federal Home Loan Mortgage Corporation, issue securities backed by the Government National Mortgage Association, make loans insured by the federal Department of Housing and Urban Development, make loans guaranteed by the federal Veterans Administration, or act as a correspondent of loans insured by the federal Department of Housing and Urban Development or guaranteed by the federal Veterans Administration.
(3) Any insurance producer or company authorized to
do business in this State.
(4) Any person arranging financing for the sale of
(5) Any person authorized to conduct business under
the Residential Mortgage License Act of 1987.
(6) Any person authorized to do business in this
State and regulated by the Department of Financial Institutions or the Office of Banks and Real Estate.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-15)
Application for registration; contents;
bond; issuance; effective date; consent to
Secretary of State as process agent.
(a) In order to be registered under this Act a loan broker
shall file an application for registration with the Secretary of
State. The application for registration shall contain:
(1) the disclosure document required under subsection
(b) of Section 15-30 of this Act and the form of disclosure statement proposed to be used under item (1) of subsection (b) of Section 15-30 of this Act;
(2) consent to service of process under subsection
(3) evidence of the bond required in subsection (b)
(4) a fee in the amount as specified in subsection
(a) of Section 15-25 of this Act, and shall not be returnable in any event.
(b) A loan broker
who engages in any loan brokerage transactions where the loan is subject to
the Truth-in-Lending Act
must maintain a bond satisfactory to the
Secretary of State in the amount of $25,000, which shall be in
favor of the State.
(c) Whenever the provisions of this Act have been complied
with, the Secretary of State shall issue a certificate of
registration to the applicant, authorizing the applicant to engage
in the business of loan brokering.
(d) An application for registration becomes effective 30 days
after it is filed, unless a certificate of the Secretary of
establishes an earlier effective date. Every registration is
effective until January 1 of the year after it goes into effect.
(e) Every applicant for registration shall file with the
Secretary of State, in such form as the Secretary of State may
prescribe by rule or regulation, an irrevocable consent appointing
the Secretary of State to be the applicant's agent to receive
service of any lawful process in any noncriminal suit, action or
proceeding against the applicant arising from the violation of any
provision of this Act.
(f) An application shall be considered filed when all required
documentation and fees are received by the Office of the Secretary of State.
(Source: P.A. 90-70, eff. 7-8-97; 91-357, eff. 7-29-99.)
(815 ILCS 175/15-25)
Fees and funds; accounting and deposit in Securities Audit
and Enforcement Fund.
(a) The Secretary of State shall by rule or regulation impose
and shall collect fees necessary for the administration of this
Act including, but not limited to, fees for the following purposes:
(1) filing an application pursuant to Section 15-15
(2) examining an application pursuant to Section
15-15 or Section 15-20 of this Act;
(3) registering a loan broker pursuant to Section
(4) renewing registration of a loan broker pursuant
to Section 15-20 of this Act;
(5) failure to file or file timely any document or
information required under this Act;
(6) acceptance of service of process pursuant to
(7) issuance of certification pursuant to Section
(8) late registration fee pursuant to Section
(b) The Secretary of State may, by rule or regulation, raise
or lower any fee imposed by this Act, and which he or she is
authorized by law to collect under this Act.
(c) All fees and funds accruing for the administration of
this Act shall be accounted for by the Secretary of State and
shall be deposited with the State Treasurer who shall deposit them
in the Securities Audit and Enforcement Fund.
(Source: P.A. 92-308, eff. 1-1-02.)
(815 ILCS 175/15-30)
Disclosure document to be provided by loan
(a) At the time any person signs a
contract for the services of a loan broker, or at the time the loan broker receives any consideration upon the contract,
whichever occurs first, the loan broker must provide to the
contracting person a written disclosure document that meets the
requirements set forth in subsection (b) of this Section.
(b) A written disclosure statement shall contain the
(1) A disclosure statement which shall be the cover
sheet and shall be entitled in at least 10-point boldface capital letters "DISCLOSURES REQUIRED BY LAW". Under this title shall appear the statement in at least 10-point type that "THE SECRETARY OF STATE HAS NOT REVIEWED AND DOES NOT APPROVE, RECOMMEND, ENDORSE OR SPONSOR ANY LOAN BROKERAGE CONTRACT. THE INFORMATION CONTAINED IN THIS DISCLOSURE HAS NOT BEEN VERIFIED BY THE SECRETARY OF STATE. IF YOU HAVE ANY QUESTIONS SEE AN ATTORNEY BEFORE YOU SIGN A CONTRACT OR AGREEMENT." Nothing except the title and the required statement shall appear on the cover sheet.
(2) The name and form of organization of the broker,
the names under which the broker has done, is doing, or intends to do business, and the name of any parent organization or affiliate of the broker.
(3) The names, addresses and titles of the broker's
officers, directors, trustees, general partners, general managers, principal executives and any other person performing similar duties.
(4) The length of time the broker has conducted
business as a loan broker.
(5) A full and detailed description of the actual
services that the loan broker undertakes to perform for the prospective borrower.
(6) A specific statement of the circumstances under
which the broker will be entitled to obtain or retain consideration from the party with whom the broker contracts.
(7) Any other information the Secretary of State may
require by rule or regulation.
(b-5) The information in subdivisions b(5) and b(6) of this Section need
not be set out on the disclosure document if the loan broker's contract is
provided with the disclosure document.
(c) A loan broker shall amend the disclosure document
required by subsection (b) of this Section whenever necessary to
prevent it from containing any false or misleading statement of a
material fact and shall deliver a copy of the amended disclosure
document to the Secretary of State on or before the date of the
(d) A loan broker shall deliver to any person who proposes to
become obligated for a loan an estimated disclosure document if
the creditor is required to deliver to the person a
disclosure document under the Truth-in-Lending Law, 15 U.S.C.
1601-1667e, for the transaction. The estimated disclosure
(1) Be delivered to the person before the person
becomes contractually obligated on the loan; or
(2) Be delivered or placed in the mail to the person
not later than 3 business days after the person enters into an agreement with the loan broker whichever occurs first. The estimated disclosure document must contain all the information and be in the form required by the Truth-in-Lending Law, 15 U.S.C. 1601-1667e, and regulations under that Law. However, the annual percentage rate, finance charge, total of payments and other matters required under the Truth-in-Lending Law, 15 U.S.C. 1601-1667e, shall be adjusted to reflect the amount of all fees and charges of the loan broker that the creditor could exclude from an estimated disclosure document. The estimated disclosure document must state at the top in at least 10 point type: "THE FOLLOWING IS AN ESTIMATED DISCLOSURE DOCUMENT SHOWING YOUR LOAN TRANSACTION AS IF THE FEES AND CHARGES YOU ARE SCHEDULED TO PAY US WERE CHARGED TO YOU DIRECTLY BY THE CREDITOR." After the estimated disclosure document is delivered to any person, the loan broker shall deliver to the person an additional statement redisclosing all items if the actual annual percentage rate will vary from the annual percentage rate contained in the original estimated disclosure document by more than 0.125%. Any required additional disclosure document shall be delivered or placed in the mail before consummation of the loan or no later than 3 days from when the information that requires redisclosure becomes available, whichever occurs first.
(e) If none of the exemptions in Section 10-30.5 apply, then for a period
of 7 days after the time the borrower signs a contract for the services, the
borrower shall have the right to rescind the contract for services with the
loan broker and receive all fees actually paid thereon; provided, however, that
the client who has rescinded the contract may not use or disclose any
confidential or non-public information provided to the client by the loan
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-30.5)
Exemption from disclosure requirement.
requirement of Section 15-30 shall not apply where the borrower to be
represented by the loan broker:
(a) Is a natural person who has, or is reasonably
believed by the loan broker relying upon this Section to have, a net worth or joint net worth with that person's spouse in excess of $1,000,000 at the time of the execution of the loan broker agreement;
(b) Is a natural person who has, or is reasonably
believed by the loan broker relying upon this Section to have, an income or joint income with that person's spouse in excess of $200,000 in the most recent applicable fiscal year;
(c) Is a person who is not a natural person who has,
or is reasonably believed by the loan broker relying upon this Section to have, total assets having a value of $1,000,000 and has been in existence for at least nine months and was not formed for the purposes of the transaction;
(d) Is a person who is not a natural person who has,
or is reasonably believed by the loan broker relying upon this Section to have, gross revenue in excess of $200,000 in the most recent applicable fiscal year and has been in existence for at least nine months and was not formed for the purposes of this transaction;
(e) Is a person who is not a natural person in which
at least 90% of the equity interest is owned, or is reasonably believed by the loan broker relying upon this Section to be owned, by persons who meet any of the tests set forth in this subsection; or
(f) Has had an attorney review the loan broker's
A loan broker may rely upon a statement signed by the borrower that such
borrower is any of the categories enumerated above.
(Source: P.A. 90-70, eff. 7-8-97.)
(815 ILCS 175/15-40)
Denial, suspension or revocation of registration;
orders and hearing.
(a) The Secretary of State may deny, suspend or revoke the
registration of a loan broker if the loan broker:
(1) Fails to maintain the bond required under
subsection (b) of Section 15-15 of this Act.
(2) Is insolvent.
(3) Has violated any provision of this Act.
(4) Has filed with the Secretary of State any
document or statement containing any false representation of a material fact or omitting to state a material fact.
(5) Has been convicted, within 10 years before the
date of the application, renewal or review, of any crime involving fraud or deceit.
(b) The Secretary of State may not enter a final order
denying, suspending or revoking the registration of a loan broker
without prior notice to all interested parties, opportunity for a
hearing and written findings of fact and conclusions of law. The
Secretary of State may by summary order deny, suspend or revoke a
registration pending final determination of any proceeding under
this Section. Upon the entry of a summary order, the Secretary of
State shall promptly notify all interested parties that it has
been entered, of the reasons for the summary order and, that upon
receipt by the Secretary of State of a written request from a
party, the matter will be set for hearing which shall be conducted
in accordance with the provisions of the Illinois Administrative
Procedure Act. If no hearing is requested within 30 days
of the entry of the order and none is ordered by
the Secretary of State, the order remains in effect until it is modified
vacated, or superseded by a final order. A final order may be entered by the
Secretary of State against any party who fails to request a hearing within 30
days of the entry of the summary order. If a hearing is
requested or ordered, the Secretary of State, after notice of the
hearing has been given to all interested persons and the hearing
has been held, may modify or vacate the order, extend it until
final determination, or issue a final order.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-45)
Powers of Secretary of State; privilege against
self-incrimination; admissibility into evidence.
(a) The Secretary of State may do the following:
(1) Adopt rules and regulations to implement this Act.
(2) Make investigations and examinations:
(A) in connection with any application for
registration of any loan broker or any registration already granted; or
(B) whenever it appears to the Secretary of
State, upon the basis of a complaint or information, that reasonable grounds exist for the belief that an investigation or examination is necessary or advisable for the more complete protection of the interests of the public.
(3) Charge as costs of investigation or examination
all reasonable expenses, including a per diem prorated upon the salary of any employee and actual traveling and hotel expenses. All reasonable expenses are to be paid by the party or parties under investigation or examination.
(4) Issue notices and orders, including cease and
desist notices and orders, after making an investigation or examination under item (2) of subsection (a) of this Section. The Secretary of State may also bring an action to prohibit a person from violating this Act. The Secretary of State shall notify the person that an order or notice has been issued, the reasons for it and that a hearing will be set in accordance with the provisions of the Illinois Administrative Procedure Act after the Secretary of State receives a written request from the person requesting a hearing.
(5) Sign all orders, official certifications,
documents or papers issued under this Act or delegate the authority to sign any of those items to his or her designee.
(6) Hold and conduct hearings.
(7) Hear evidence.
(8) Conduct inquiries with or without hearings.
Inquiries shall include oral and written requests for information. A failure to respond to a written request for information may be deemed a violation of this Act and the Secretary of State may issue notices and orders, including cease and desist notices and orders, against the violators.
(9) Receive reports of investigators or other
officers or employees of the State of Illinois or any municipal corporation or governmental subdivision within the State.
(13) Order depositions to be taken of any witness
residing within or without the State. The depositions shall be taken in the manner prescribed by law for depositions in civil actions and made returnable to the Secretary of State.
(14) For the purpose of all investigations, audits,
examinations, or inspections that, in the opinion of the Secretary of State are necessary and proper for the enforcement of this Act, the Secretary of State or a person designated by him or her is empowered to administer oaths and affirmations, subpoena witnesses, take evidence, and require by subpoena or other lawful means provided by this Act or the rules adopted by the Secretary of State the production of any books and records, papers, or other documents that the Secretary of State or a person designated by him or her deems relevant or material to the inquiry.
(b) If any person refuses to obey a subpoena issued under
this Act, the Secretary of State may make application to any court
of competent jurisdiction to order the person to appear before the
Secretary of State and produce documentary evidence or give
evidence as directed in the subpoena. The failure to obey the
order of the court shall be subject to punishment by the court as
contempt of court.
(c) No person shall be excused from complying with a subpoena
on the ground that the testimony or evidence required may tend to
incriminate the person or subject the person to a penalty or
forfeiture. No individual may be prosecuted or subject to any
penalty or forfeiture for or on account of any transaction, matter
or thing which the individual is compelled to testify or produce
evidence, after claiming the privilege against
self-incrimination. However, the individual so testifying shall
not be exempt from prosecution and punishment for perjury
committed in so testifying.
(d) In any prosecution, action, suit or proceeding based upon
or arising out of this Act, the Secretary of State may sign a
certificate showing compliance or non-compliance with this Act by
any loan broker. This shall constitute prima facie evidence of
compliance or non-compliance with this Act and shall be admissible
in evidence in any court.
(e) Whenever it shall appear to the Secretary of State that
any person is engaged or about to engage in any acts or practices
which constitute or will constitute a violation of this Act, or of
any rule or regulation prescribed under authority of this Act, the
Secretary of State may at his or her discretion, through the
(1) File a complaint and apply for a temporary
restraining order without notice, and upon a proper showing the court may enter a temporary restraining order without a bond, to enforce this Act.
(2) File a complaint and apply for a preliminary or
permanent injunction, and, after notice and hearing and upon a proper showing, the court may grant a preliminary or permanent injunction and may order the defendant to make an offer of rescission with respect to any contract for loan brokerage services determined by the court to be unlawful under this Act.
(f) The court shall further have jurisdiction and authority,
in addition to the penalties and other remedies in this Act
provided, to enter an order for the appointment of the court or a
person as a receiver, conservator, ancillary receiver or ancillary
conservator for the defendant or the defendant's assets located in
this State, or to require restitution, damages or disgorgement of
profits on behalf of the person or persons injured by the act or
practice constituting the subject matter of the action, and may
assess costs and attorneys fees against the defendant for the use of the
(Source: P.A. 91-357, eff. 7-29-99; 92-308, eff. 1-1-02.)
(815 ILCS 175/15-55)
Violations; administrative fines; enforcement.
(a) If the Secretary of State determines, after notice and
opportunity for a hearing, that a person has violated this Act,
the Secretary of State may in addition to all other remedies,
impose an administrative fine upon the person in an amount not to
exceed $10,000 for each violation.
(b) The Secretary of State may bring an action in the
circuit court of Sangamon or Cook county to enforce payment of
fines imposed under this Section.
(c) If the Secretary of State shall find that any person has
violated any provision of this Act, the Secretary of State may, by
written order temporarily or permanently prohibit or suspend such
person from acting as a loan broker.
(d) If the Secretary of State shall find that any person is
acting or has acted as a loan broker as defined in Section 15-5.15 of
this Act, without prior thereto or at the time thereof having
complied with the registration requirements of this Act, the
Secretary of State may by written order prohibit such person from
acting as a loan broker in this State.
(e) Anything herein contained to the contrary
notwithstanding, the Secretary of State may temporarily prohibit
or suspend, for a maximum period of 90 days, by an order effective
any individual or entity acting as a loan broker or engaging in the business of
providing loan brokerage services, without notice and prior
hearing, if the Secretary of State in his or her opinion,
based upon credible evidence, deems it necessary to prevent an
imminent violation of this Act or to prevent losses to clients
which the Secretary of State reasonably believes will occur as a
result of a prior violation of this Act. Immediately after taking
action without such notice and hearing, the Secretary of State
shall deliver a copy of the temporary order to the respondent named
therein by personal service or registered mail or certified mail,
return receipt requested. The temporary order shall set forth the
grounds for the action and shall advise that the respondent may
request a hearing to be held as soon as reasonably practicable, that the
request for a hearing will not stop the effectiveness of the
temporary order and that respondent's failure to request a hearing
within 30 days after the date of the entry of the temporary order,
shall constitute an admission of any facts alleged therein and
shall constitute sufficient basis to make the temporary order
(f) The Secretary of State may issue a temporary order
suspending or delaying the effectiveness of any registration of a
loan broker under this Act subsequent to and upon the basis of the
issuance of any stop, suspension or similar order by any agency of
the United States regulating loan brokers or any state or federal
courts with respect to the person who is the subject of the
registration under this Act, and such order shall become effective
as of the date and time of effectiveness of the agency or court
order and shall be vacated automatically at such time as the order
of the agency or court order is no longer in effect.
(Source: P.A. 89-209, eff. 1-1-96; 90-70, eff. 7-8-97.)
(815 ILCS 175/15-75)
Account numbers required; retention and maintenance of
(a) Each loan broker agreement shall be given an account
number and all instruments taken in connection with that agreement
must bear this number. Each loan broker shall keep and maintain
the following records or their equivalent:
(1) A loan agreement register that consists of a
chronological listing of all loan broker agreements that have been entered into. For each loan broker agreement the register shall contain the following:
(A) The account number.
(B) The date of the agreement.
(C) The name of the borrower or any proposed
(D) The amount of any fees charged.
(E) The cost and type of any insurance required.
(2) A file for each borrower or proposed borrower
shall contain the following:
(A) The name and address of the borrower or any
(B) A copy of the signed loan broker agreement.
(C) A copy of any other papers or instruments
used in connection with the loan broker agreement and signed by the borrower or any proposed borrower, including a copy of the disclosure document required by Section 15-30 of this Act that contains an acknowledged receipt by the borrower or any proposed borrower.
(D) If a loan was obtained for the borrower, the
name and address of the creditor.
(E) If a loan is accepted by the borrower, a copy
(F) The amount of the loan broker's fee that the
borrower has paid. If there is an unpaid balance, the status of any collection efforts.
(3) All receipts from or for the account of borrowers
or any proposed borrowers and all disbursements to or for the account of borrowers or any proposed borrowers, recorded so that the transactions are readily identifiable.
(4) A general ledger that shall be posted at least
monthly, and a trial balance sheet and profit and loss statement prepared within 30 days of the Secretary of State's request for the information.
(5) A copy of:
(A) All advertisements, pamphlets, circulars,
letters, articles or communications published in any newspaper, magazine or periodical.
(B) Scripts of any recording, radio or television
(C) Any sales kits or literature to be used in
solicitation of borrowers.
(b) The records listed in subsection (a) of this Section
shall be kept for a period of 6 years in the loan broker's
principal office and must be separate or readily identifiable from
the records of any other business that is conducted in the office
of the loan broker.
(Source: P.A. 89-209, eff. 1-1-96.)
(815 ILCS 175/15-80)
Persons exempt from registration and other duties; burden of
(a) The following persons are exempt from the
requirements of Sections 15-10, 15-15, 15-20, 15-25, 15-30, 15-35, 15-40, and
15-75 of this Act:
(1) Any attorney while engaging in the practice of
(2) Any certified public accountant licensed to
practice in Illinois, while engaged in practice as a certified public accountant and whose service in relation to procurement of a loan is incidental to his or her practice.
(3) Any person licensed to engage in business as a
real estate broker or salesperson in Illinois while rendering services in the ordinary course of a transaction in which a license as a real estate broker or salesperson is required.
(4) Any dealer, salesperson or investment adviser
registered under the Illinois Securities Law of 1953, or an investment advisor, representative, or any person who is regularly engaged in the business of offering or selling securities in a transaction exempted under subsection C, H, M, R, Q, or S of Section 4 of the Illinois Securities Law of 1953 or subsection G of Section 4 of the Illinois Securities Law of 1953 provided that such person is registered under the federal securities law.
(4.1) An associated person described in subdivision
(h)(2) of Section 15 of the Federal 1934 Act.
(4.2) An investment adviser registered pursuant to
Section 203 of the Federal 1940 Investment Advisers Act.
(4.3) A person described in subdivision (a)(11) of
Section 202 of the Federal 1940 Investment Advisers Act.
(5) Any person whose fee is wholly contingent on the
successful procurement of a loan from a third party and to whom no fee, other than a bona fide third party fee, is paid before the procurement.
(6) Any person who is a creditor, or proposed to be
a creditor, for any loan.
(8) Any person regulated by the Department of
Financial Institutions or the Office of Banks and Real Estate, or any insurance producer or company authorized to do business in this State.
(b) As used in this Section, "bona fide third party fee"
includes fees for:
(1) Credit reports, appraisals and investigations.
(2) If the loan is to be secured by real property,
title examinations, an abstract of title, title insurance, a property survey and similar purposes.
(c) As used in this Section, "successful procurement of a
loan" means that a binding commitment from a creditor to advance
money has been received and accepted by the borrower.
(d) The burden of proof of any exemption provided in this Act
shall be on the party claiming the exemption.
(Source: P.A. 100-201, eff. 8-18-17.)
(815 ILCS 175/15-85)
Fraudulent and prohibited acts.
(a) A loan broker shall not, in
connection with a contract for the services of a loan broker,
either directly or indirectly, do any of the following:
(1) Employ any device, scheme or article to defraud.
(2) Make any untrue statements of a material fact or
omit to state a material fact necessary in order to make the statements made, in the light of circumstances under which they are made, not misleading.
(3) Engage in any act, practice or course of business
that operates or would operate as a fraud or deceit upon any person.
(b) A loan broker shall not either directly or indirectly do any of the
(1) act as a loan broker without registration under
this Act unless exempt under the Act;
(2) fail to file with the Secretary of State any
application, report, document, or answer required to be filed under the provisions of this Act or any rule made by the Secretary of State pursuant to this Act, or fail to comply with the terms of any order issued pursuant to this Act or any rules made by the Secretary of State;
(3) fail to keep or maintain any records as required
under the provisions of this Act or any rule made by the Secretary of State pursuant to this Act.
(Source: P.A. 92-308, eff. 1-1-02.)