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91_SB0445enr
SB445 Enrolled LRB9102296JSpc
1 AN ACT to amend the Residential Mortgage License Act of
2 1987 by changing Sections 2-2, 2-9, and 4-2.
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 2-2, 2-9, and 4-2 as follows:
7 (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)
8 Sec. 2-2. Application process; investigation; fee.
9 (a) The Commissioner shall issue a license upon
10 completion of all of the following:
11 (1) The filing of an application for license.
12 (2) The filing with the Commissioner of a listing
13 of judgments entered against, and bankruptcy petitions
14 by, the license applicant for the preceding 10 years.
15 (3) The payment, in certified funds, of
16 investigation and application fees, the total of which
17 shall be in an amount equal to $1,800 annually, however,
18 the Commissioner may increase the investigation and
19 application fees by rule as provided in Section 4-11.
20 (4) Except for a broker applying to renew a
21 license, the filing of an audited balance sheet including
22 all footnotes prepared by a certified public accountant
23 in accordance with generally accepted accounting
24 principles and generally accepted auditing principles
25 which evidences that the applicant meets the net worth
26 requirements of Section 3-5.
27 (5) The filing of proof satisfactory to the
28 Commissioner that the applicant, the members thereof if
29 the applicant is a partnership or association, the
30 members or managers thereof that retain any authority or
31 responsibility under the operating agreement if the
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1 applicant is a limited liability company, or the officers
2 thereof if the applicant is a corporation have 3 years
3 experience preceding application in real estate finance.
4 Instead of this requirement, the applicant and the
5 applicant's officers or members, as applicable, may
6 satisfactorily complete a program of education in real
7 estate finance and fair lending, as approved by the
8 Commissioner, prior to within 9 months of receiving the
9 initial license. The Commissioner shall promulgate rules
10 regarding proof of experience requirements and
11 educational requirements and the satisfactory completion
12 of those requirements. The Commissioner may establish by
13 rule a list of duly licensed professionals and others who
14 may be exempt from this requirement.
15 (6) An investigation of the averments required by
16 Section 2-4, which investigation must allow the
17 Commissioner to issue positive findings stating that the
18 financial responsibility, experience, character, and
19 general fitness of the license applicant and of the
20 members thereof if the license applicant is a partnership
21 or association, of the officers and directors thereof if
22 the license applicant is a corporation, and of the
23 managers and members that retain any authority or
24 responsibility under the operating agreement if the
25 license applicant is a limited liability company are such
26 as to command the confidence of the community and to
27 warrant belief that the business will be operated
28 honestly, fairly and efficiently within the purpose of
29 this Act. If the Commissioner shall not so find, he or
30 she shall not issue such license, and he or she shall
31 notify the license applicant of the denial.
32 (b) All licenses shall be issued in duplicate with one
33 copy being transmitted to the license applicant and the
34 second being retained with the Commissioner.
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1 Upon receipt of such license, a residential mortgage
2 licensee shall be authorized to engage in the business
3 regulated by this Act. Such license shall remain in full
4 force and effect until it expires without renewal, is
5 surrendered by the licensee or revoked or suspended as
6 hereinafter provided.
7 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
8 (205 ILCS 635/2-9) (from Ch. 17, par. 2322-9)
9 Sec. 2-9. Posting of license. The license of a licensee
10 whose home office is within the State of Illinois or of an
11 out-of-state licensee shall be conspicuously posted in every
12 office of the licensee located in Illinois. Out-of-state
13 licensees without an Illinois office shall produce the
14 license upon request. Licensees originating loans on the
15 Internet shall post on their Internet web site their license
16 number and the address and telephone number of the
17 Commissioner. The license shall state the full name and
18 address of the licensee. The license shall not be
19 transferable or assignable. A separate certificate shall be
20 issued for posting in each full service Illinois office.
21 (Source: P.A. 86-137; 87-642.)
22 (205 ILCS 635/4-2) (from Ch. 17, par. 2324-2)
23 Sec. 4-2. Examination; prohibited activities.
24 (a) The business affairs of a licensee under this Act
25 shall be examined for compliance with this Act as often as
26 the Commissioner deems necessary and proper. The
27 Commissioner shall promulgate rules with respect to the
28 frequency and manner of examination. The Commissioner shall
29 appoint a suitable person to perform such examination. The
30 Commissioner and his appointees may examine the entire books,
31 records, documents, and operations of each licensee and may
32 examine any of the licensee's officers, directors, employees
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1 and agents under oath.
2 (b) The Commissioner shall prepare a sufficiently full
3 and detailed report of each licensee's examination, shall
4 issue a copy of such report to each licensee's principals,
5 officers, or directors and shall take appropriate steps to
6 ensure correction of violations of this Act.
7 (c) Affiliates of a licensee shall be subject to
8 examination by the Commissioner on the same terms as the
9 licensee, but only when reports from, or examination of a
10 licensee provides for documented evidence of unlawful
11 activity between a licensee and affiliate benefiting,
12 affecting or deriving from the activities regulated by this
13 Act.
14 (d) The expenses of any examination of the licensee and
15 affiliates shall be borne by the licensee and assessed by the
16 Commissioner as established by regulation.
17 (e) Upon completion of the examination, the Commissioner
18 shall issue a report to the licensee. The examination
19 report, and the work papers of the report shall belong to the
20 Commissioner's office and may not be disclosed to anyone
21 other than the licensee, law enforcement officials or other
22 regulatory agencies that shall be defined in rules
23 promulgated by the Commissioner, or to a party presenting a
24 lawful subpoena to the Office of the Commissioner. Reports
25 required of licensees by the Commissioner under this Act and
26 results of examinations performed by the Commissioner under
27 this Act shall be the property of only the licensee and the
28 Commissioner. Access under this Act to the books and records
29 of each licensee shall be limited to the Commissioner and his
30 agents as provided in this Act and to the licensee and its
31 authorized agents and designees. No other person shall have
32 access to the books and records of a licensee under this Act.
33 (f) The Commissioner, deputy commissioners, and
34 employees of the Office of Banks and Real Estate shall be
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1 subject to the restrictions provided in Section 2.5 of the
2 Office of Banks and Real Estate Act including, without
3 limitation, the restrictions on (i) owning shares of stock or
4 holding any other equity interest in an entity regulated
5 under this Act or in any corporation or company that owns or
6 controls an entity regulated under this Act; (ii) being an
7 officer, director, employee, or agent of an entity regulated
8 under this Act; and (iii) obtaining a loan or accepting a
9 gratuity from an entity regulated under this Act.
10 (g) After the initial examination for those licensees
11 whose only mortgage activity is servicing fewer than 1,000
12 Illinois residential loans, the examination required in
13 subsection (a) may be waived upon submission of a letter from
14 the licensee's independent certified auditor that the
15 licensee serviced fewer than 1,000 Illinois residential loans
16 during the year in which the audit was performed.
17 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96;
18 90-301, eff. 8-1-97.)
19 Section 99. Effective date. This Act takes effect upon
20 becoming law.
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