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92_HB0047
LRB9200795JSpr
1 AN ACT to amend the Residential Mortgage License Act of
2 1987.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Residential Mortgage License Act of 1987
6 is amended by changing Sections 1-4, 1-5, and 4-8 and adding
7 Sections 4-8.1, 4-8.2, 4-8.3, 4-8.4, 4-8.5, 4-8.6, 4-8.7,
8 4-8.8, 4-8.9, 4-8.10, and 4-8.11 as follows:
9 (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
10 Sec. 1-4. Definitions.
11 (a) "Residential real property" or "residential real
12 estate" shall mean real property located in this State
13 improved by a one-to-four family dwelling used or occupied,
14 wholly or partly, as the home or residence of one or more
15 persons and may refer, subject to regulations of the
16 Commissioner, to unimproved real property upon which those
17 kinds dwellings are to be constructed.
18 (b) "Making a residential mortgage loan" or "funding a
19 residential mortgage loan" shall mean for compensation or
20 gain, either directly or indirectly, advancing funds or
21 making a commitment to advance funds to a loan applicant for
22 a residential mortgage loan.
23 (c) "Soliciting, processing, placing, or negotiating a
24 residential mortgage loan" shall mean for compensation or
25 gain, either directly or indirectly, accepting or offering to
26 accept an application for a residential mortgage loan,
27 assisting or offering to assist in the processing of an
28 application for a residential mortgage loan on behalf of a
29 borrower, or negotiating or offering to negotiate the terms
30 or conditions of a residential mortgage loan with a lender on
31 behalf of a borrower including, but not limited to, the
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1 submission of credit packages for the approval of lenders,
2 the preparation of residential mortgage loan closing
3 documents, including a closing in the name of a broker.
4 (d) "Exempt entity" shall mean the following:
5 (1) (i) Any banking organization or foreign banking
6 corporation licensed by the Illinois Commissioner of
7 Banks and Real Estate or the United States Comptroller of
8 the Currency to transact business in this State; (ii) any
9 national bank, federally chartered savings and loan
10 association, federal savings bank, federal credit union;
11 (iii) any pension trust, bank trust, or bank trust
12 company; (iv) any savings and loan association, savings
13 bank, or credit union organized under the laws of this or
14 any other state; (v) any Illinois Consumer Installment
15 Loan Act licensee; (vi) any insurance company authorized
16 to transact business in this State; (vii) any entity
17 engaged solely in commercial mortgage lending; (viii) any
18 service corporation of a savings and loan association or
19 savings bank organized under the laws of this State or
20 the service corporation of a federally chartered savings
21 and loan association or savings bank having its principal
22 place of business in this State, other than a service
23 corporation licensed or entitled to reciprocity under the
24 Real Estate License Act of 2000; or (ix) any first tier
25 subsidiary of a bank, the charter of which is issued
26 under the Illinois Banking Act by the Illinois
27 Commissioner of Banks and Real Estate, or the first tier
28 subsidiary of a bank chartered by the United States
29 Comptroller of the Currency and that has its principal
30 place of business in this State, provided that the first
31 tier subsidiary is regularly examined by the Illinois
32 Commissioner of Banks and Real Estate or the Comptroller
33 of the Currency, or a consumer compliance examination is
34 regularly conducted by the Federal Reserve Board.
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1 (2) Any person or entity that either (i) has a
2 physical presence in Illinois or (ii) does not originate
3 mortgage loans in the ordinary course of business making
4 or acquiring residential mortgage loans with his or her
5 or its own funds for his or her or its own investment
6 without intent to make, acquire, or resell more than 10
7 residential mortgage loans in any one calendar year.
8 (3) Any person employed by a licensee to assist in
9 the performance of the activities regulated by this Act
10 who is compensated in any manner by only one licensee.
11 (4) Any person licensed pursuant to the Real Estate
12 License Act of 2000, who engages only in the taking of
13 applications and credit and appraisal information to
14 forward to a licensee or an exempt entity under this Act
15 and who is compensated by either a licensee or an exempt
16 entity under this Act, but is not compensated by either
17 the buyer (applicant) or the seller.
18 (5) Any individual, corporation, partnership, or
19 other entity that originates, services, or brokers
20 residential mortgage loans, as these activities are
21 defined in this Act, and who or which receives no
22 compensation for those activities, subject to the
23 Commissioner's regulations with regard to the nature and
24 amount of compensation.
25 (6) A person who prepares supporting documentation
26 for a residential mortgage loan application taken by a
27 licensee and performs ministerial functions pursuant to
28 specific instructions of the licensee who neither
29 requires nor permits the preparer to exercise his or her
30 discretion or judgment; provided that this activity is
31 engaged in pursuant to a binding, written agreement
32 between the licensee and the preparer that:
33 (A) holds the licensee fully accountable for
34 the preparer's action; and
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1 (B) otherwise meets the requirements of this
2 Section and this Act, does not undermine the
3 purposes of this Act, and is approved by the
4 Commissioner.
5 (e) "Licensee" or "residential mortgage licensee" shall
6 mean a person, partnership, association, corporation, or any
7 other entity who or which is licensed pursuant to this Act to
8 engage in the activities regulated by this Act.
9 (f) "Mortgage loan", "residential mortgage loan", or
10 "home mortgage loan" shall mean a loan to or for the benefit
11 of any natural person made primarily for personal, family, or
12 household use, primarily secured by either a mortgage on
13 residential real property or certificates of stock or other
14 evidence of ownership interests in and proprietary leases
15 from, corporations, partnerships, or limited liability
16 companies formed for the purpose of cooperative ownership of
17 residential real property, all located in Illinois.
18 (g) "Lender" shall mean any person, partnership,
19 association, corporation, or any other entity who either
20 lends or invests money in residential mortgage loans.
21 (h) "Ultimate equitable owner" shall mean a person who,
22 directly or indirectly, owns or controls an ownership
23 interest in a corporation, foreign corporation, alien
24 business organization, trust, or any other form of business
25 organization regardless of whether the person owns or
26 controls the ownership interest through one or more persons
27 or one or more proxies, powers of attorney, nominees,
28 corporations, associations, partnerships, trusts, joint stock
29 companies, or other entities or devices, or any combination
30 thereof.
31 (i) "Residential mortgage financing transaction" shall
32 mean the negotiation, acquisition, sale, or arrangement for
33 or the offer to negotiate, acquire, sell, or arrange for, a
34 residential mortgage loan or residential mortgage loan
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1 commitment.
2 (j) "Personal residence address" shall mean a street
3 address and shall not include a post office box number.
4 (k) "Residential mortgage loan commitment" shall mean a
5 contract for residential mortgage loan financing.
6 (l) "Party to a residential mortgage financing
7 transaction" shall mean a borrower, lender, or loan broker in
8 a residential mortgage financing transaction.
9 (m) "Payments" shall mean payment of all or any of the
10 following: principal, interest and escrow reserves for taxes,
11 insurance and other related reserves, and reimbursement for
12 lender advances.
13 (n) "Commissioner" shall mean the Commissioner of Banks
14 and Real Estate or a person authorized by the Commissioner,
15 the Office of Banks and Real Estate Act, or this Act to act
16 in the Commissioner's stead.
17 (o) "Loan brokering", "brokering", or "brokerage
18 service" shall mean the act of helping to obtain from another
19 entity, for a borrower, a loan secured by residential real
20 estate situated in Illinois or assisting a borrower in
21 obtaining a loan secured by residential real estate situated
22 in Illinois in return for consideration to be paid by either
23 the borrower or the lender including, but not limited to,
24 contracting for the delivery of residential mortgage loans to
25 a third party lender and soliciting, processing, placing, or
26 negotiating residential mortgage loans.
27 (p) "Loan broker" or "broker" shall mean a person,
28 partnership, association, corporation, or limited liability
29 company, other than those persons, partnerships,
30 associations, corporations, or limited liability companies
31 exempted from licensing pursuant to Section 1-4, subsection
32 (d), of this Act, who performs the activities described in
33 subsections (c) and (o) of this Section.
34 (q) "Servicing" shall mean the collection or remittance
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1 for or the right or obligation to collect or remit for any
2 lender, noteowner, noteholder, or for a licensee's own
3 account, of payments, interests, principal, and trust items
4 such as hazard insurance and taxes on a residential mortgage
5 loan in accordance with the terms of the residential mortgage
6 loan; and includes loan payment follow-up, delinquency loan
7 follow-up, loan analysis and any notifications to the
8 borrower that are necessary to enable the borrower to keep
9 the loan current and in good standing.
10 (r) "Full service office" shall mean office and staff in
11 Illinois reasonably adequate to handle efficiently
12 communications, questions, and other matters relating to any
13 application for, or an existing home mortgage secured by
14 residential real estate situated in Illinois with respect to
15 which the licensee is brokering, funding originating,
16 purchasing, or servicing. The management and operation of
17 each full service office must include observance of good
18 business practices such as adequate, organized, and accurate
19 books and records; ample phone lines, hours of business,
20 staff training and supervision, and provision for a mechanism
21 to resolve consumer inquiries, complaints, and problems. The
22 Commissioner shall issue regulations with regard to these
23 requirements and shall include an evaluation of compliance
24 with this Section in his or her periodic examination of each
25 licensee.
26 (s) "Purchasing" shall mean the purchase of conventional
27 or government-insured mortgage loans secured by residential
28 real estate situated in Illinois from either the lender or
29 from the secondary market.
30 (t) "Borrower" shall mean the person or persons who seek
31 the services of a loan broker, originator, or lender.
32 (u) "Originating" shall mean the issuing of commitments
33 for and funding of residential mortgage loans.
34 (v) "Loan brokerage agreement" shall mean a written
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1 agreement in which a broker or loan broker agrees to do
2 either of the following:
3 (1) obtain a residential mortgage loan for the
4 borrower or assist the borrower in obtaining a
5 residential mortgage loan; or
6 (2) consider making a residential mortgage loan to
7 the borrower.
8 (w) "Advertisement" shall mean the attempt by
9 publication, dissemination, or circulation to induce,
10 directly or indirectly, any person to enter into a
11 residential mortgage loan agreement or residential mortgage
12 loan brokerage agreement relative to a mortgage secured by
13 residential real estate situated in Illinois.
14 (x) "Residential Mortgage Board" shall mean the
15 Residential Mortgage Board created in Section 1-5 of this
16 Act.
17 (y) "Government-insured mortgage loan" shall mean any
18 mortgage loan made on the security of residential real estate
19 insured by the Department of Housing and Urban Development or
20 Farmers Home Loan Administration, or guaranteed by the
21 Veterans Administration.
22 (z) "Annual audit" shall mean a certified audit of the
23 licensee's books and records and systems of internal control
24 performed by a certified public accountant in accordance with
25 generally accepted accounting principles and generally
26 accepted auditing standards.
27 (aa) "Financial institution" shall mean a savings and
28 loan association, savings bank, credit union, or a bank
29 organized under the laws of Illinois or a savings and loan
30 association, savings bank, credit union or a bank organized
31 under the laws of the United States and headquartered in
32 Illinois.
33 (bb) "Escrow agent" shall mean a third party, individual
34 or entity charged with the fiduciary obligation for holding
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1 escrow funds on a residential mortgage loan pending final
2 payout of those funds in accordance with the terms of the
3 residential mortgage loan.
4 (cc) "Net worth" shall have the meaning ascribed thereto
5 in Section 3-5 of this Act.
6 (dd) "Affiliate" shall mean:
7 (1) any entity that directly controls or is
8 controlled by the licensee and any other company that is
9 directly affecting activities regulated by this Act that
10 is controlled by the company that controls the licensee;
11 (2) any entity:
12 (A) that is controlled, directly or
13 indirectly, by a trust or otherwise, by or for the
14 benefit of shareholders who beneficially or
15 otherwise control, directly or indirectly, by trust
16 or otherwise, the licensee or any company that
17 controls the licensee; or
18 (B) a majority of the directors or trustees of
19 which constitute a majority of the persons holding
20 any such office with the licensee or any company
21 that controls the licensee;
22 (3) any company, including a real estate investment
23 trust, that is sponsored and advised on a contractual
24 basis by the licensee or any subsidiary or affiliate of
25 the licensee.
26 The Commissioner may define by rule and regulation any
27 terms used in this Act for the efficient and clear
28 administration of this Act.
29 (ee) "First tier subsidiary" shall be defined by
30 regulation incorporating the comparable definitions used by
31 the Office of the Comptroller of the Currency and the
32 Illinois Commissioner of Banks and Real Estate.
33 (ff) "Gross delinquency rate" means the quotient
34 determined by dividing (1) the sum of (i) the number of
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1 government-insured residential mortgage loans funded or
2 purchased by a licensee in the preceding calendar year that
3 are delinquent and (ii) the number of conventional
4 residential mortgage loans funded or purchased by the
5 licensee in the preceding calendar year that are delinquent
6 by (2) the sum of (i) the number of government-insured
7 residential mortgage loans funded or purchased by the
8 licensee in the preceding calendar year and (ii) the number
9 of conventional residential mortgage loans funded or
10 purchased by the licensee in the preceding calendar year.
11 (gg) "Delinquency rate factor" means the factor set by
12 rule of the Commissioner that is multiplied by the average
13 gross delinquency rate of licensees, determined annually for
14 the immediately preceding calendar year, for the purpose of
15 determining which licensees shall be examined by the
16 Commissioner pursuant to subsection (b) of Section 4-8 of
17 this Act.
18 (Source: P.A. 90-772, eff. 1-1-99; 91-245, eff. 12-31-99.)
19 (205 ILCS 635/1-5) (from Ch. 17, par. 2321-5)
20 Sec. 1-5. Residential Mortgage Board.
21 (a) Board composition, compensation. There is created
22 the Residential Mortgage Board composed of 7 5 members
23 appointed by the Commissioner of Banks and Real Estate. The
24 majority of persons on the Board shall have no financial
25 interest in any residential mortgage business and one member
26 shall be a representative of the Mortgage Banking Trade
27 Association, and one member shall be a representative of the
28 Mortgage Broker Trade Association, one member shall be a
29 representative of the National Training and Information
30 Center and one member shall be a representative of the
31 Woodstock Institute. Members of the Board serving on the
32 effective date of this amendatory Act of 1996 shall continue
33 to serve their unexpired terms as members of the Residential
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1 Mortgage Board. Thereafter, on or before January 15 of each
2 year, the Commissioner shall appoint one or more board
3 members, as shall be necessary to maintain a 7 5 member
4 Board, whose terms shall be for 3 years commencing February 1
5 of the year in which they are respectively appointed.
6 If a vacancy occurs on the Residential Mortgage Board,
7 the Commissioner shall within 60 days appoint a new member
8 who shall hold office for the remainder of the vacated term.
9 The Board shall meet a minimum of 4 times each calendar
10 year and at the call of the chairman, who along with a
11 Secretary, shall be selected by the Board from among its
12 members.
13 Members of the Board shall be entitled to receive a per
14 diem allowance of $25 for each day or part of a day spent on
15 Board work and shall be entitled to their expenses actually
16 and necessarily incurred in the performance of their duties.
17 The members of the Board serve at the pleasure of the
18 Commissioner.
19 (b) Duties of Board. The Residential Mortgage Board
20 shall assist the Commissioner by:
21 (1) submitting recommendations to the Commissioner
22 for the efficient administration of this Act; and
23 (2) submitting recommendations to the Commissioner
24 for establishing guidelines for professional conduct of
25 licensees under this Act, for the conduct of formal
26 disciplinary proceedings brought under this Act, and for
27 establishing guidelines for qualifications of applicants
28 under this Act;
29 (3) participating in hearings conducted pursuant to
30 Section 4-8.3 of this Act; and
31 (4) (2) performing other duties as are prescribed
32 by the Commissioner.
33 (c) Notice of proposed rulemaking shall be transmitted
34 to the Board, and the Commissioner shall review the response
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1 of the Board and any recommendations made in their response.
2 The Commissioner, at any time, may seek the expert advice and
3 knowledge of the Board on any matter relating to the
4 administration or enforcement of this Act.
5 (d) (c) Conflict of interest declarations. Each member
6 of the Residential Mortgage Board shall file annually, no
7 later than February 1, with the Commissioner a statement of
8 his or her current business transactions or other
9 affiliations with any licensee under this Act. The
10 Commissioner may adopt rules to avoid conflicts of interest
11 on the part of members of the Residential Mortgage Board in
12 connection with their position on the Board.
13 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
14 (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
15 Sec. 4-8. Default rate; examination.
16 (a) The Commissioner shall obtain from the U.S.
17 Department of Housing and Urban Development on a semi-annual
18 basis that Department's default claim rates for endorsements
19 issued by that Department.
20 (b) The Commissioner shall conduct an examination of
21 each licensee having a default rate equal to or greater than
22 5%.
23 This subsection shall not be construed as a limitation of
24 the Commissioner's examination authority under Section 4-2 of
25 this Act or as otherwise provided in this Act. The
26 Commissioner may require a licensee to provide loan default
27 data as the Commissioner deems necessary for the proper
28 enforcement of the Act.
29 (c) The purpose of the examination under subsection (b)
30 shall be to determine whether the default rate of the
31 licensee has resulted from practices which deviate from sound
32 and accepted mortgage underwriting practices, including but
33 not limited to credit fraud, appraisal fraud and property
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1 inspection fraud. For the purpose of conducting this
2 examination, the Commissioner may accept materials prepared
3 for the U.S. Department of Housing and Urban Development. At
4 the conclusion of the examination, the Commissioner shall
5 provide make his or her findings available to the Residential
6 Mortgage Board.
7 (d) The Commissioner, at his or her discretion, may hold
8 public hearings, or at the direction of the Residential
9 Mortgage Board, shall hold public hearings. Such testimony
10 shall be by a homeowner or mortgagor or his agent, whose
11 residential interest is affected by the activities of the
12 residential mortgage licensee subject to such hearing. At
13 such public hearing, a witness may present testimony on his
14 or her behalf concerning only his or her home, or home
15 mortgage or a witness may authorize a third party to appear
16 on his or her behalf. The testimony shall be restricted to
17 information and comments related to a specific residence or
18 specific residential mortgage application or applications for
19 a residential mortgage or residential loan transaction. The
20 testimony must be preceded by either a letter of complaint or
21 a completed consumer complaint form prescribed by the
22 Commissioner.
23 (e) The Commissioner shall, at the conclusion of the
24 public hearings, release his or her findings and shall also
25 make public any action taken with respect to the licensee.
26 The Commissioner shall also give full consideration to the
27 findings of this examination whenever reapplication is made
28 by the licensee for a new license under this Act.
29 (f) A licensee that is examined pursuant to subsection
30 (b) shall submit to the Commissioner a plan which shall be
31 designed to reduce that licensee's default rate to a figure
32 that is less than 5%. The plan shall be implemented by the
33 licensee as approved by the Commissioner. A licensee that is
34 examined pursuant to subsection (b) shall report monthly, for
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1 a one year period, one, 2, and 3 month defaults.
2 (g) Whenever the Commissioner finds that a licensee's
3 default rate on insured mortgages is unusually high within a
4 particular geographic area, he or she shall require that
5 licensee to submit such information as is necessary to
6 determine whether that licensee's practices have constituted
7 credit fraud, appraisal fraud or property inspection fraud.
8 The Commissioner shall promulgate such rules as are necessary
9 to determine whether any licensee's default rate is unusually
10 high within a particular area.
11 (Source: P.A. 89-355, eff. 1-1-96; 89-626, eff. 8-9-96;
12 90-301, eff. 8-1-97.)
13 (205 ILCS 635/4-8.1 new)
14 Sec. 4-8.1. Investigations; notice of hearing. Upon the
15 motion of either the Commissioner or the Residential Mortgage
16 Board or upon the verified complaint in writing of any person
17 setting forth facts which, if proven, would constitute
18 grounds for refusal, suspension, or revocation of license
19 under this Act, the Commissioner shall investigate the
20 actions of any person, hereinafter called the "licensee", who
21 holds or represents that he or she holds a license under this
22 Act. The Commissioner shall, before suspending, revoking,
23 placing on probationary status, or taking any other
24 disciplinary action as the Commissioner may deem proper with
25 regard to any registration, at least 30 days prior to the
26 date set for the hearing, notify the licensee in writing of
27 any charges made and of the time and place for a hearing on
28 the charges. The Commissioner shall also direct the licensee
29 to file a written answer to the charges under oath within 20
30 days after the service of the notice upon the licensee and
31 inform the licensee that if he or she fails to file an
32 answer, his or her certificate of registration may be
33 suspended, revoked, or placed on probationary status or that
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1 other disciplinary action may be taken with regard thereto,
2 as the Commissioner may deem proper. The written notice and
3 any notice in the proceeding may be served by delivery
4 personally to the licensee or by registered or certified mail
5 to the address specified by the licensee in his or her last
6 notification to the Commissioner. The Commissioner shall
7 preserve a record of all proceedings at the formal hearing of
8 any case involving the refusal to issue or renew a
9 registration or discipline of a licensee. The notice of
10 hearing, the complaint, all other documents in the nature of
11 pleadings and written motions filed in the proceedings, the
12 transcript of testimony, the report of the Board, and the
13 orders of the Commissioner shall be the record of the
14 proceedings.
15 (205 ILCS 635/4-8.2 new)
16 Sec. 4-8.2. Disciplinary actions.
17 (a) If a licensee, after receiving notice, fails to file
18 an answer, his or her license may, in the discretion of the
19 Commissioner, having first received the recommendation of the
20 Board, be suspended, revoked, or placed on probationary
21 status, or the Commissioner may take whatever disciplinary
22 action he or she may deem proper, including the imposition of
23 a fine, without a hearing, if the act or acts charged
24 constitute sufficient grounds for such action under this Act.
25 (b) The Commissioner may temporarily suspend the
26 registration of a licensee without a hearing, simultaneous to
27 the institution of proceedings for a hearing under this Act,
28 if the Commissioner finds that evidence in his possession
29 indicates that the person's continuation of use of the title
30 would constitute an immediate danger to the public. In the
31 event that the Commissioner temporarily suspends the
32 registration of a licensee without a hearing, a hearing
33 pursuant to Section 4-8.3 must be held within 15 days after
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1 the suspension has occurred and must be concluded without
2 appreciable delay.
3 (205 ILCS 635/4-8.3 new)
4 Sec. 4-8.3. Hearings. At the time and place fixed in the
5 notice of hearing, the Commissioner shall proceed to hear the
6 charges before the Board, and both the licensee and the
7 complainant shall be accorded ample opportunity to present in
8 person, or by counsel, such statements, testimony, evidence,
9 and arguments as may be pertinent to the charges or to their
10 defense. The Commissioner may continue the hearing from time
11 to time. If the Board is not sitting at the time and place
12 fixed in the notice or at the time and place to which the
13 hearing has been continued, the Commissioner shall continue
14 the hearing for a period not to exceed 30 days. The
15 Commissioner shall have power to subpoena and bring before
16 him or her any licensee under this Act and to take testimony
17 either orally or by deposition, or both, with the same fees
18 and mileage and in the same manner as prescribed for civil
19 actions in this State. The Commissioner shall have power to
20 administer oaths at any hearing at which the Commissioner is
21 authorized by law to conduct.
22 (205 ILCS 635/4-8.4 new)
23 Sec. 4-8.4. Attendance of witnesses; production of
24 documents. Any circuit court, upon the application of the
25 Commissioner, may order the attendance of witnesses and the
26 production of relevant books and papers in any hearing
27 relative to the application for a suspension of, revocation
28 of, or refusal to renew a registration of, or the discipline
29 of a licensee. The court may compel obedience to its order by
30 proceedings for contempt.
31 (205 ILCS 635/4-8.5 new)
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1 Sec. 4-8.5. Recommendations for disciplinary action;
2 action by Commissioner. The Board may advise the Commissioner
3 that probation be granted or that other disciplinary action,
4 including the limitation of the use of license, be taken, as
5 it deems proper. If disciplinary action other than suspension
6 or revocation is taken, the Board may advise the Commissioner
7 to impose reasonable limitations and requirements upon the
8 licensee to insure compliance with the terms of the probation
9 or other disciplinary action in such manner as the
10 Commissioner may require. The Board shall present to the
11 Commissioner a written report of its findings and
12 recommendations. A copy of the report shall be served upon
13 the licensee, either personally or by registered or certified
14 mail. Within 20 days after such service, the licensee may
15 present to the Commissioner his motion in writing for a
16 rehearing, specifying the particular grounds for rehearing.
17 If the licensee orders and pays for a transcript of the
18 record, the time elapsing until the transcript is ready for
19 delivery to him shall not be counted as part of such 20 days.
20 At the expiration of the time allowed for filing a motion for
21 rehearing, the Commissioner may take the action recommended
22 by the Board. Upon suspension, revocation, placement on
23 probationary status, or the taking of any other disciplinary
24 action, including the limiting of the use of the license,
25 deemed proper by the Commissioner, the licensee shall
26 surrender his or her license to the Commissioner if ordered
27 to do so by the Commissioner. Upon a failure or refusal to
28 do so, the Commissioner may seize the license. In all
29 instances in which the Board has rendered a recommendation to
30 the Commissioner with respect to a particular person, the
31 Commissioner shall, to the extent that he or she disagrees
32 with or takes action contrary to the recommendation of the
33 Board, file with the Board his specific written reasons of
34 disagreement. The reasons shall be filed within 30 days after
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1 the Commissioner has taken the contrary position. Each order
2 of revocation, suspension, or other disciplinary action shall
3 contain a brief and concise statement of the ground or
4 grounds upon which the Commissioner's action is based, as
5 well as the specific terms and conditions of that action.
6 Whenever the Commissioner is satisfied that substantial
7 justice has not been done either in an examination or in the
8 revocation, suspension, or refusal to issue a license or
9 other disciplinary action, the Commissioner may order a
10 re-examination or rehearing.
11 (205 ILCS 635/4-8.6 new)
12 Sec. 4-8.6. Hearing officer. The Commissioner has the
13 authority to appoint any attorney duly licensed to practice
14 law in the State of Illinois to serve as the hearing officer
15 for any disciplinary action under this Act. The hearing
16 officer shall have full authority to conduct the hearing. The
17 hearing officer shall report his or her findings and
18 recommendations to the the Commissioner and the Board. The
19 Board shall have 60 days from receipt of the report to review
20 the report of the hearing officer and present its findings of
21 fact, conclusions of law, and recommendations to the
22 Commissioner. If the Board fails to present its report within
23 the 60 day period, the Commissioner may issue an order based
24 on the report of the hearing officer. If the Commissioner
25 disagrees in any regard with the Board's report, he or she
26 may issue an order in contravention of the Board's report.
27 (205 ILCS 635/4-8.7 new)
28 Sec. 4-8.7. Restoration. At any time after suspension,
29 revocation, placement on probationary status, or the taking
30 of any other disciplinary action with regard to any license,
31 the Commissioner may restore the license, or take any other
32 action to reinstate the license without examination, for good
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1 cause shown in the opinion of the Commissioner.
2 (205 ILCS 635/4-8.8 new)
3 Sec. 4-8.8. Administrative Review Law. All final
4 administrative decisions of the Commissioner are subject to
5 judicial review under the Administrative Review Law and its
6 rules. The term "administrative decision" is defined as in
7 Section 3-101 of the Code of Civil Procedure. Proceedings for
8 judicial review shall be commenced in the circuit court of
9 the county in which the party applying for review resides,
10 but if the party is not a resident of this State, the venue
11 shall be in Sangamon County or Cook County. The Commissioner
12 shall not be required to certify any record to the court or
13 file any answer in court or otherwise appear in any court in
14 a judicial review proceeding, unless there is filed in the
15 court with the complaint a receipt from the Commissioner
16 acknowledging payment of the costs of furnishing and
17 certifying the record. Exhibits shall be certified without
18 cost. Failure on the part of the plaintiff to file a receipt
19 in court shall be grounds for dismissal of the action. During
20 the pendency and hearing of any and all judicial proceedings
21 incident to a disciplinary action, any sanctions imposed upon
22 the licensee by the Commissioner shall remain in full force
23 and effect.
24 (205 ILCS 635/4-8.9 new)
25 Sec. 4-8.9. Revocation orders. An order of revocation,
26 suspension, placement on probationary status, or other formal
27 disciplinary action as the Commissioner may deem proper, or a
28 certified copy thereof, over the seal of the Commissioner and
29 purporting to be signed by the Commissioner, is prima facie
30 proof that:
31 (1) the signature is the genuine signature of the
32 Commissioner;
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1 (2) the Commissioner is duly appointed and
2 qualified; and
3 (3) the Board and the members thereof are
4 qualified.
5 (205 ILCS 635/4-8.10 new)
6 Sec. 4-8.10. Confidential information; disclosure. In
7 hearings conducted under this Act, information presented into
8 evidence that was acquired by the licensee when serving any
9 individual in connection with a residential mortgage,
10 including all financial information of the individual, shall
11 be deemed strictly confidential and shall only be made
12 available either as part of the record of a hearing hereunder
13 or otherwise: (1) when the record is required, in its
14 entirety, for purposes of judicial review; or (2) upon the
15 express written consent of the individual served, or in the
16 case of his or her death or disability, the consent of his or
17 her personal representative.
18 (205 ILCS 635/4-8.11 new)
19 Sec. 4-8.11. Reports of violation. Any person licensed
20 under this Act, or any other person, may report to the
21 Commissioner any information that person may have that
22 appears to show that a licensee under this Act is or may be
23 in violation of this Act.
24 Section 99. Effective date. This Act takes effect upon
25 becoming law.