HB0521 96TH GENERAL ASSEMBLY

LRB096 04160 AJO 14202 b

96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
HB0521

Introduced 2/4/2009, by Rep. Esther Golar

SYNOPSIS AS INTRODUCED:

20 ILCS 3805/7.30 new
30 ILCS 105/5.719 new
30 ILCS 105/6z-80 new
205 ILCS 635/2-2	from Ch. 17, par. 2322-2

Amends the Illinois Housing Development Act to authorize the Illinois Housing Authority to establish and administer a foreclosure prevention counseling program using moneys in the Foreclosure Prevention Counseling Fund, appropriated for that purpose, to make grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home ownership education and foreclosure prevention counseling. Amends the State Finance Act to create the Foreclosure Prevention Counseling Fund from moneys received from the foreclosure prevention surcharge collected under the Residential Mortgage License Act of 1987. Provides that 75% of the moneys in this Fund shall be used for housing counseling outside Chicago and 25% of the moneys shall be used for such counseling in Chicago. Amends the Residential Mortgage License Act of 1987 to increase the investigation and application fees from $2,700 to $3,000. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning foreclosure.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Housing Development Act is amended by adding Section 7.30 as follows:

(20 ILCS 3805/7.30 new)

Sec. 7.30. Foreclosure prevention counseling program. The Authority shall establish and administer a foreclosure prevention counseling program. The Authority shall use moneys in the Foreclosure Prevention Counseling Fund, and any other funds appropriated for this purpose, to make grants to HUD-certified housing counseling agencies to support pre-purchase and post-purchase home-ownership education and foreclosure prevention counseling activities under the program.

Section 10. The State Finance Act is amended by adding Sections 5.719 and 6z-80 as follows:

(30 ILCS 105/5.719 new)

Sec. 5.719. The Foreclosure Prevention Counseling Fund.

(30 ILCS 105/6z-80 new)

Sec. 6z-80. The Foreclosure Prevention Counseling Fund.

(a) There is created in the State treasury a special fund to be known as the Foreclosure Prevention Counseling Fund. All moneys received by the Secretary of Financial and Professional Regulation from the foreclosure prevention surcharge collected under subsection (c) of Section 2-2 of the Residential Mortgage License Act of 1987 shall be deposited into the Fund.

(b) Moneys in the Fund shall be used as follows:

(1) 75% of the moneys in the Fund shall be used to make grants to HUD-certified housing counseling agencies that provide services outside the City of Chicago and across the State, as provided in Section 7.30 of the Illinois Housing Development Act. Grants made by the Illinois Housing Development Authority shall be based upon the number of foreclosures filed in a HUD-certified counseling agency's service area, the capacity of a HUD-certified housing counseling agency to provide foreclosure counseling services, and any other facts that the Illinois Housing Development Authority deems appropriate.

(2) The remaining moneys shall, be distributed to the City of Chicago to provide grants to HUD-certified housing counseling agencies located within the City of Chicago to support pre-purchase and post-purchase home-ownership education and foreclosure prevention counseling activities under programs administered by the City of Chicago.

Section 15. The Residential Mortgage License Act of 1987 is amended by changing Section 2-2 as follows:

(205 ILCS 635/2-2) (from Ch. 17, par. 2322-2)

Sec. 2-2. Application process; investigation; fee.

(a) The Commissioner shall issue a license upon completion of all of the following:

(1) The filing of an application for license.

(2) The filing with the Commissioner of a listing of judgments entered against, and bankruptcy petitions by, the license applicant for the preceding 10 years.

(3) The payment, in certified funds, of investigation and application fees, the total of which shall be in an amount equal to $3,000 $2,700 annually, however, the Commissioner may increase the investigation and application fees by rule as provided in Section 4-11.

(4) Except for a broker applying to renew a license, the filing of an audited balance sheet including all footnotes prepared by a certified public accountant in accordance with generally accepted accounting principles and generally accepted auditing principles which evidences that the applicant meets the net worth requirements of Section 3-5.

(5) The filing of proof satisfactory to the Commissioner that the applicant, the members thereof if the applicant is a partnership or association, the members or managers thereof that retain any authority or responsibility under the operating agreement if the applicant is a limited liability company, or the officers thereof if the applicant is a corporation have 3 years experience preceding application in real estate finance. Instead of this requirement, the applicant and the applicant's officers or members, as applicable, may satisfactorily complete a program of education in real estate finance and fair lending, as approved by the Commissioner, prior to receiving the initial license. The Commissioner shall promulgate rules regarding proof of experience requirements and educational requirements and the satisfactory completion of those requirements. The Commissioner may establish by rule a list of duly licensed professionals and others who may be exempt from this requirement.

(6) An investigation of the averments required by Section 2-4, which investigation must allow the Commissioner to issue positive findings stating that the financial responsibility, experience, character, and general fitness of the license applicant and of the members thereof if the license applicant is a partnership or association, of the officers and directors thereof if the license applicant is a corporation, and of the managers and members that retain any authority or responsibility under the operating agreement if the license applicant is a limited liability company are such as to command the confidence of the community and to warrant belief that the business will be operated honestly, fairly and efficiently within the purpose of this Act. If the Commissioner shall not so find, he or she shall not issue such license, and he or she shall notify the license applicant of the denial.

The Commissioner may impose conditions on a license if the Commissioner determines that the conditions are necessary or appropriate. These conditions shall be imposed in writing and shall continue in effect for the period prescribed by the Commissioner.

(b) All licenses shall be issued in duplicate with one copy being transmitted to the license applicant and the second being retained with the Commissioner.

Upon receipt of such license, a residential mortgage licensee shall be authorized to engage in the business regulated by this Act. Such license shall remain in full force and effect until it expires without renewal, is surrendered by the licensee or revoked or suspended as hereinafter provided.

(Source: P.A. 93-32, eff. 7-1-03; 93-1018, eff. 1-1-05.)

Section 99. Effective date. This Act takes effect upon becoming law.