Section 1050.1175  Maintenance of Records

a)         Loan Log.  Each licensee shall maintain a loan log that shall be kept current according to the record maintenance procedures of the licensee and shall be produced for examination by the Director.  Any report the licensee generates may be substituted for the loan log.  At a minimum, the loan log or its substitute shall contain the following with respect to each loan application received during the previous 36 months:

1)         Application date (sort loan log by application date);

2)         Borrower names;

3)         Property purchaser names;

4)         Property seller names;

5)         Property address;

6)         Loan amount;

7)         Terms (APR), loan program;

8)         Loan originator names and registration numbers;

9)         Processor names and license and/or registration numbers, if applicable;

10)         Appraiser names and license numbers;

11)         Corporate or full service office, and license number, where application taken;

12)         Amount of points and fees charged; and

13)         Statement of whether the loan application was cancelled, rejected or closed or is pending and, if the loan application was closed, the closing date and name of the owner and servicer of the loan.

b)         Loan File Retention.

1)         With respect to each loan application, each licensee, except as provided in subsection (b)(2) of this Section, shall maintain the following documents on file in hard copy or paper-based form, or electronic or digital form capable of legible hard copy reproduction, for 36 months from the date of closing or other termination of loan processing, as part of its books and records to be examined by the Director:

A)        the Loan Brokerage Agreement and Loan Brokerage Disclosure Statement, if any mortgage loan brokerage services were utilized by the mortgage loan applicant;

B)        the Borrower Information Document;

C)        all documents signed by the customer, including but not limited to the initial loan application, disclosure documents and closing documents;

D)        the appraisal and credit report, as well as all other third-party documents relating to the loan; and

E)         all other documents in or related to the loan file.

2)         Each licensee shall retain, at a minimum, the documents referenced in subsections (b)(1)(A) and (B) .  With respect to subsections (b)(1)(C) through (E) , a licensee need retain only those documents originated by that licensee's activity in connection with the loan; however, the Director may require the licensee to obtain copies of the remaining documents to produce for examination of its books and records.  A mortgage broker licensee may maintain the required documents in hard copy or paper-based form, or in electronic or digital form capable of legible hard copy or paper reproduction.  Electronic or digital versions of documents that were originally in hard copy or paper-based form must be clear, complete and legible, and the mortgage broker licensee must accurately and authentically preserve any alterations, erasures, or similar indications of changes on the documents.  The mortgage broker licensee must also retain documentation that explains the process used to convert hard copy or paper-based documents to electronic or digital formats and specifies the date of conversion, the method of conversion, and the disposition of the original hard copy or paper-based document.  A mortgage banker licensee shall maintain all required original documents in hard copy or paper-based form and shall retain hard copies or paper-based documents for all loans assigned to another mortgage banker licensee or entity.

c)         Secondary Market Information.  If a licensee sells, assigns or purchases any loans or any servicing of loans, the licensee shall retain the following documents for 36 months from the date of each transaction, as part of its books and records to be examined by the Director:

1)         the contract and delivery schedules detailing loans sold, assigned or purchased; and

2)         the contract and delivery schedules detailing servicing sold, assigned or purchased.

d)         High Risk Home Loans.  If a licensee performs licensable acts with respect to a loan subject to the High Risk Home Loan Act, then the licensee shall maintain a separate High Risk Home Loan Log with the information required in subsection (a) of this Section with respect to each loan application received during the previous 60 months and shall maintain all loan files as required in subsection (b) of this Section for 60 months from the date of closing or other termination of loan processing.

(Source:  Amended at 29 Ill. Reg. 14808, effective September 26, 2005)