99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB4657

 

Introduced , by Rep. Daniel J. Burke

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 5/78  from Ch. 17, par. 390
205 ILCS 5/79  from Ch. 17, par. 391
205 ILCS 205/12104 rep.
205 ILCS 205/Art. 12.2 rep.
205 ILCS 635/1-4
205 ILCS 635/4-1  from Ch. 17, par. 2324-1
205 ILCS 635/4-8  from Ch. 17, par. 2324-8
205 ILCS 635/1-5 rep.

    Amends the Illinois Banking Act. Changes the number of additional members of the State Banking Board of Illinois from 11 to 12. Provides that one member of the Board shall be from a savings bank. Changes the requirements for the 2 public members. Removes the requirement that the Senate advise and consent to initial appointments and vacancies on the Board. Amends the Savings Bank Act. Repeals provisions relating to the Board of Savings Banks. Amends the Residential Mortgage License Act of 1987. Removes provisions relating to the Residential Mortgage Board. Effective immediately.


LRB099 15951 SMS 40268 b

 

 

A BILL FOR

 

HB4657LRB099 15951 SMS 40268 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Banking Act is amended by changing
5Sections 78 and 79 as follows:
 
6    (205 ILCS 5/78)  (from Ch. 17, par. 390)
7    Sec. 78. Board of banks and trust companies; creation,
8members, appointment. There is created a Board which shall be
9known as the State Banking Board of Illinois which shall
10consist of the Director of Banking, who shall be its chairman,
11and 12 11 additional members. The Board shall be comprised of
12individuals interested in the banking industry. Two members
13shall be from State banks having total assets of not more than
14$75,000,000 at the time of their appointment; 2 members shall
15be from State banks having total assets of more than
16$75,000,000, but not more than $150,000,000 at the time of
17their appointment; 2 members shall be from State banks having
18total assets of more than $150,000,000, but not more than
19$500,000,000 at the time of their appointment; 2 members shall
20be from State banks having total assets of more than
21$500,000,000, but not more than $2,000,000,000 at the time of
22their appointment; , and one member shall be from a State bank
23having total assets of more than $2,000,000,000 at the time of

 

 

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1his or her appointment; and one member shall be from a savings
2bank organized under the Savings Bank Act. There shall be 2
3public members, neither of whom shall be an officer or director
4of or owner, whether directly or indirectly, of more than 5% of
5the outstanding capital stock of any bank or savings bank.
6Members of the State Banking Board of Illinois cease to be
7eligible to serve on the Board once they no longer meet the
8requirements of their original appointment; however, a member
9from a State bank shall not be disqualified solely due to a
10change in the bank's asset size.
11(Source: P.A. 99-39, eff. 1-1-16.)
 
12    (205 ILCS 5/79)  (from Ch. 17, par. 391)
13    Sec. 79. Board, terms of office. The terms of office of the
14State Banking Board of Illinois shall be 4 years, except that
15the initial Board appointments shall be staggered with the
16Governor initially appointing, with advice and consent of the
17Senate, 3 members to serve 2-year terms, 4 members to serve
183-year terms, and 4 members to serve 4-year terms. Members
19shall continue to serve on the Board until their replacement is
20appointed and qualified. Vacancies shall be filled by
21appointment by the Governor with advice and consent of the
22Senate.
23    No State Banking Board member shall serve more than 2 full
244-year terms of office.
25(Source: P.A. 96-1163, eff. 1-1-11; 97-813, eff. 7-13-12.)
 

 

 

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1    (205 ILCS 205/12104 rep.)
2    (205 ILCS 205/Art. 12.2 rep.)
3    Section 10. The Savings Bank Act is amended by repealing
4Section 12104 and Article 12.2.
 
5    Section 15. The Residential Mortgage License Act of 1987 is
6amended by changing Sections 1-4, 4-1, and 4-8 as follows:
 
7    (205 ILCS 635/1-4)
8    Sec. 1-4. Definitions. The following words and phrases have
9the meanings given to them in this Section:
10        (a) "Residential real property" or "residential real
11    estate" shall mean any real property located in Illinois,
12    upon which is constructed or intended to be constructed a
13    dwelling. Those terms include a manufactured home as
14    defined in subdivision (53) of Section 9-102 of the Uniform
15    Commercial Code which is real property as defined in
16    Section 5-35 of the Conveyance and Encumbrance of
17    Manufactured Homes as Real Property and Severance Act.
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
22    for a residential mortgage loan.
23        (c) "Soliciting, processing, placing, or negotiating a

 

 

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1    residential mortgage loan" shall mean for compensation or
2    gain, either directly or indirectly, accepting or offering
3    to accept an application for a residential mortgage loan,
4    assisting or offering to assist in the processing of an
5    application for a residential mortgage loan on behalf of a
6    borrower, or negotiating or offering to negotiate the terms
7    or conditions of a residential mortgage loan with a lender
8    on behalf of a borrower including, but not limited to, the
9    submission of credit packages for the approval of lenders,
10    the preparation of residential mortgage loan closing
11    documents, including a closing in the name of a broker.
12        (d) "Exempt person or entity" shall mean the following:
13            (1) (i) Any banking organization or foreign
14        banking corporation licensed by the Illinois
15        Commissioner of Banks and Real Estate or the United
16        States Comptroller of the Currency to transact
17        business in this State; (ii) any national bank,
18        federally chartered savings and loan association,
19        federal savings bank, federal credit union; (iii)
20        (blank); (iv) any bank, savings and loan association,
21        savings bank, or credit union organized under the laws
22        of this or any other state; (v) any Illinois Consumer
23        Installment Loan Act licensee; (vi) any insurance
24        company authorized to transact business in this State;
25        (vii) any entity engaged solely in commercial mortgage
26        lending; (viii) any service corporation of a savings

 

 

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1        and loan association or savings bank organized under
2        the laws of this State or the service corporation of a
3        federally chartered savings and loan association or
4        savings bank having its principal place of business in
5        this State, other than a service corporation licensed
6        or entitled to reciprocity under the Real Estate
7        License Act of 2000; or (ix) any first tier subsidiary
8        of a bank, the charter of which is issued under the
9        Illinois Banking Act by the Illinois Commissioner of
10        Banks and Real Estate, or the first tier subsidiary of
11        a bank chartered by the United States Comptroller of
12        the Currency and that has its principal place of
13        business in this State, provided that the first tier
14        subsidiary is regularly examined by the Illinois
15        Commissioner of Banks and Real Estate or the
16        Comptroller of the Currency, or a consumer compliance
17        examination is regularly conducted by the Federal
18        Reserve Board.
19            (1.5) Any employee of a person or entity mentioned
20        in item (1) of this subsection, when acting for such
21        person or entity, or any registered mortgage loan
22        originator when acting for an entity described in
23        subsection (tt) of this Section.
24            (1.8) Any person or entity that does not originate
25        mortgage loans in the ordinary course of business, but
26        makes or acquires residential mortgage loans with his

 

 

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1        or her own funds for his or her or its own investment
2        without intent to make, acquire, or resell more than 3
3        residential mortgage loans in any one calendar year.
4            (2) (Blank).
5            (3) Any person employed by a licensee to assist in
6        the performance of the residential mortgage licensee's
7        activities regulated by this Act who is compensated in
8        any manner by only one licensee.
9            (4) (Blank).
10            (5) Any individual, corporation, partnership, or
11        other entity that originates, services, or brokers
12        residential mortgage loans, as these activities are
13        defined in this Act, and who or which receives no
14        compensation for those activities, subject to the
15        Commissioner's regulations and the federal Secure and
16        Fair Enforcement for Mortgage Licensing Act of 2008 and
17        the rules promulgated under that Act with regard to the
18        nature and amount of compensation.
19            (6) (Blank).
20        (e) "Licensee" or "residential mortgage licensee"
21    shall mean a person, partnership, association,
22    corporation, or any other entity who or which is licensed
23    pursuant to this Act to engage in the activities regulated
24    by this Act.
25        (f) "Mortgage loan" "residential mortgage loan" or
26    "home mortgage loan" shall mean any loan primarily for

 

 

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1    personal, family, or household use that is secured by a
2    mortgage, deed of trust, or other equivalent consensual
3    security interest on a dwelling as defined in Section
4    103(v) of the federal Truth in Lending Act, or residential
5    real estate upon which is constructed or intended to be
6    constructed a dwelling.
7        (g) "Lender" shall mean any person, partnership,
8    association, corporation, or any other entity who either
9    lends or invests money in residential mortgage loans.
10        (h) "Ultimate equitable owner" shall mean a person who,
11    directly or indirectly, owns or controls an ownership
12    interest in a corporation, foreign corporation, alien
13    business organization, trust, or any other form of business
14    organization regardless of whether the person owns or
15    controls the ownership interest through one or more persons
16    or one or more proxies, powers of attorney, nominees,
17    corporations, associations, partnerships, trusts, joint
18    stock companies, or other entities or devices, or any
19    combination thereof.
20        (i) "Residential mortgage financing transaction" shall
21    mean the negotiation, acquisition, sale, or arrangement
22    for or the offer to negotiate, acquire, sell, or arrange
23    for, a residential mortgage loan or residential mortgage
24    loan commitment.
25        (j) "Personal residence address" shall mean a street
26    address and shall not include a post office box number.

 

 

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1        (k) "Residential mortgage loan commitment" shall mean
2    a contract for residential mortgage loan financing.
3        (l) "Party to a residential mortgage financing
4    transaction" shall mean a borrower, lender, or loan broker
5    in a residential mortgage financing transaction.
6        (m) "Payments" shall mean payment of all or any of the
7    following: principal, interest and escrow reserves for
8    taxes, insurance and other related reserves, and
9    reimbursement for lender advances.
10        (n) "Commissioner" shall mean the Commissioner of
11    Banks and Real Estate, except that, beginning on April 6,
12    2009 (the effective date of Public Act 95-1047), all
13    references in this Act to the Commissioner of Banks and
14    Real Estate are deemed, in appropriate contexts, to be
15    references to the Secretary of Financial and Professional
16    Regulation, or his or her designee, including the Director
17    of the Division of Banking of the Department of Financial
18    and Professional Regulation.
19        (n-1) "Director" shall mean the Director of the
20    Division of Banking of the Department of Financial and
21    Professional Regulation, except that, beginning on July
22    31, 2009 (the effective date of Public Act 96-112), all
23    references in this Act to the Director are deemed, in
24    appropriate contexts, to be the Secretary of Financial and
25    Professional Regulation, or his or her designee, including
26    the Director of the Division of Banking of the Department

 

 

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1    of Financial and Professional Regulation.
2        (o) "Loan brokering", "brokering", or "brokerage
3    service" shall mean the act of helping to obtain from
4    another entity, for a borrower, a loan secured by
5    residential real estate situated in Illinois or assisting a
6    borrower in obtaining a loan secured by residential real
7    estate situated in Illinois in return for consideration to
8    be paid by either the borrower or the lender including, but
9    not limited to, contracting for the delivery of residential
10    mortgage loans to a third party lender and soliciting,
11    processing, placing, or negotiating residential mortgage
12    loans.
13        (p) "Loan broker" or "broker" shall mean a person,
14    partnership, association, corporation, or limited
15    liability company, other than those persons, partnerships,
16    associations, corporations, or limited liability companies
17    exempted from licensing pursuant to Section 1-4,
18    subsection (d), of this Act, who performs the activities
19    described in subsections (c), (o), and (yy) of this
20    Section.
21        (q) "Servicing" shall mean the collection or
22    remittance for or the right or obligation to collect or
23    remit for any lender, noteowner, noteholder, or for a
24    licensee's own account, of payments, interests, principal,
25    and trust items such as hazard insurance and taxes on a
26    residential mortgage loan in accordance with the terms of

 

 

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1    the residential mortgage loan; and includes loan payment
2    follow-up, delinquency loan follow-up, loan analysis and
3    any notifications to the borrower that are necessary to
4    enable the borrower to keep the loan current and in good
5    standing. "Servicing" includes management of third-party
6    entities acting on behalf of a residential mortgage
7    licensee for the collection of delinquent payments and the
8    use by such third-party entities of said licensee's
9    servicing records or information, including their use in
10    foreclosure.
11        (r) "Full service office" shall mean an office,
12    provided by the licensee and not subleased from the
13    licensee's employees, and staff in Illinois reasonably
14    adequate to handle efficiently communications, questions,
15    and other matters relating to any application for, or an
16    existing home mortgage secured by residential real estate
17    situated in Illinois with respect to which the licensee is
18    brokering, funding originating, purchasing, or servicing.
19    The management and operation of each full service office
20    must include observance of good business practices such as
21    proper signage; adequate, organized, and accurate books
22    and records; ample phone lines, hours of business, staff
23    training and supervision, and provision for a mechanism to
24    resolve consumer inquiries, complaints, and problems. The
25    Commissioner shall issue regulations with regard to these
26    requirements and shall include an evaluation of compliance

 

 

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1    with this Section in his or her periodic examination of
2    each licensee.
3        (s) "Purchasing" shall mean the purchase of
4    conventional or government-insured mortgage loans secured
5    by residential real estate situated in Illinois from either
6    the lender or from the secondary market.
7        (t) "Borrower" shall mean the person or persons who
8    seek the services of a loan broker, originator, or lender.
9        (u) "Originating" shall mean the issuing of
10    commitments for and funding of residential mortgage loans.
11        (v) "Loan brokerage agreement" shall mean a written
12    agreement in which a broker or loan broker agrees to do
13    either of the following:
14            (1) obtain a residential mortgage loan for the
15        borrower or assist the borrower in obtaining a
16        residential mortgage loan; or
17            (2) consider making a residential mortgage loan to
18        the borrower.
19        (w) "Advertisement" shall mean the attempt by
20    publication, dissemination, or circulation to induce,
21    directly or indirectly, any person to enter into a
22    residential mortgage loan agreement or residential
23    mortgage loan brokerage agreement relative to a mortgage
24    secured by residential real estate situated in Illinois.
25        (x) (Blank). "Residential Mortgage Board" shall mean
26    the Residential Mortgage Board created in Section 1-5 of

 

 

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1    this Act.
2        (y) "Government-insured mortgage loan" shall mean any
3    mortgage loan made on the security of residential real
4    estate insured by the Department of Housing and Urban
5    Development or Farmers Home Loan Administration, or
6    guaranteed by the Veterans Administration.
7        (z) "Annual audit" shall mean a certified audit of the
8    licensee's books and records and systems of internal
9    control performed by a certified public accountant in
10    accordance with generally accepted accounting principles
11    and generally accepted auditing standards.
12        (aa) "Financial institution" shall mean a savings and
13    loan association, savings bank, credit union, or a bank
14    organized under the laws of Illinois or a savings and loan
15    association, savings bank, credit union or a bank organized
16    under the laws of the United States and headquartered in
17    Illinois.
18        (bb) "Escrow agent" shall mean a third party,
19    individual or entity charged with the fiduciary obligation
20    for holding escrow funds on a residential mortgage loan
21    pending final payout of those funds in accordance with the
22    terms of the residential mortgage loan.
23        (cc) "Net worth" shall have the meaning ascribed
24    thereto in Section 3-5 of this Act.
25        (dd) "Affiliate" shall mean:
26            (1) any entity that directly controls or is

 

 

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1        controlled by the licensee and any other company that
2        is directly affecting activities regulated by this Act
3        that is controlled by the company that controls the
4        licensee;
5            (2) any entity:
6                (A) that is controlled, directly or
7            indirectly, by a trust or otherwise, by or for the
8            benefit of shareholders who beneficially or
9            otherwise control, directly or indirectly, by
10            trust or otherwise, the licensee or any company
11            that controls the licensee; or
12                (B) a majority of the directors or trustees of
13            which constitute a majority of the persons holding
14            any such office with the licensee or any company
15            that controls the licensee;
16            (3) any company, including a real estate
17        investment trust, that is sponsored and advised on a
18        contractual basis by the licensee or any subsidiary or
19        affiliate of the licensee.
20        (ee) "First tier subsidiary" shall be defined by
21    regulation incorporating the comparable definitions used
22    by the Office of the Comptroller of the Currency and the
23    Illinois Commissioner of Banks and Real Estate.
24        (ff) "Gross delinquency rate" means the quotient
25    determined by dividing (1) the sum of (i) the number of
26    government-insured residential mortgage loans funded or

 

 

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1    purchased by a licensee in the preceding calendar year that
2    are delinquent and (ii) the number of conventional
3    residential mortgage loans funded or purchased by the
4    licensee in the preceding calendar year that are delinquent
5    by (2) the sum of (i) the number of government-insured
6    residential mortgage loans funded or purchased by the
7    licensee in the preceding calendar year and (ii) the number
8    of conventional residential mortgage loans funded or
9    purchased by the licensee in the preceding calendar year.
10        (gg) "Delinquency rate factor" means the factor set by
11    rule of the Commissioner that is multiplied by the average
12    gross delinquency rate of licensees, determined annually
13    for the immediately preceding calendar year, for the
14    purpose of determining which licensees shall be examined by
15    the Commissioner pursuant to subsection (b) of Section 4-8
16    of this Act.
17        (hh) "Loan originator" means any natural person who,
18    for compensation or in the expectation of compensation,
19    either directly or indirectly makes, offers to make,
20    solicits, places, or negotiates a residential mortgage
21    loan. This definition applies only to Section 7-1 of this
22    Act.
23        (ii) "Confidential supervisory information" means any
24    report of examination, visitation, or investigation
25    prepared by the Commissioner under this Act, any report of
26    examination visitation, or investigation prepared by the

 

 

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1    state regulatory authority of another state that examines a
2    licensee, any document or record prepared or obtained in
3    connection with or relating to any examination,
4    visitation, or investigation, and any record prepared or
5    obtained by the Commissioner to the extent that the record
6    summarizes or contains information derived from any
7    report, document, or record described in this subsection.
8    "Confidential supervisory information" does not include
9    any information or record routinely prepared by a licensee
10    and maintained in the ordinary course of business or any
11    information or record that is required to be made publicly
12    available pursuant to State or federal law or rule.
13        (jj) "Mortgage loan originator" means an individual
14    who for compensation or gain or in the expectation of
15    compensation or gain:
16            (i) takes a residential mortgage loan application;
17        or
18            (ii) offers or negotiates terms of a residential
19        mortgage loan.
20        "Mortgage loan originator" includes an individual
21    engaged in loan modification activities as defined in
22    subsection (yy) of this Section. A mortgage loan originator
23    engaged in loan modification activities shall report those
24    activities to the Department of Financial and Professional
25    Regulation in the manner provided by the Department;
26    however, the Department shall not impose a fee for

 

 

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1    reporting, nor require any additional qualifications to
2    engage in those activities beyond those provided pursuant
3    to this Act for mortgage loan originators.
4        "Mortgage loan originator" does not include an
5    individual engaged solely as a loan processor or
6    underwriter except as otherwise provided in subsection (d)
7    of Section 7-1A of this Act.
8        "Mortgage loan originator" does not include a person or
9    entity that only performs real estate brokerage activities
10    and is licensed in accordance with the Real Estate License
11    Act of 2000, unless the person or entity is compensated by
12    a lender, a mortgage broker, or other mortgage loan
13    originator, or by any agent of that lender, mortgage
14    broker, or other mortgage loan originator.
15        "Mortgage loan originator" does not include a person or
16    entity solely involved in extensions of credit relating to
17    timeshare plans, as that term is defined in Section
18    101(53D) of Title 11, United States Code.
19        (kk) "Depository institution" has the same meaning as
20    in Section 3 of the Federal Deposit Insurance Act, and
21    includes any credit union.
22        (ll) "Dwelling" means a residential structure or
23    mobile home which contains one to 4 family housing units,
24    or individual units of condominiums or cooperatives.
25        (mm) "Immediate family member" means a spouse, child,
26    sibling, parent, grandparent, or grandchild, and includes

 

 

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1    step-parents, step-children, step-siblings, or adoptive
2    relationships.
3        (nn) "Individual" means a natural person.
4        (oo) "Loan processor or underwriter" means an
5    individual who performs clerical or support duties as an
6    employee at the direction of and subject to the supervision
7    and instruction of a person licensed, or exempt from
8    licensing, under this Act. "Clerical or support duties"
9    includes subsequent to the receipt of an application:
10            (i) the receipt, collection, distribution, and
11        analysis of information common for the processing or
12        underwriting of a residential mortgage loan; and
13            (ii) communicating with a consumer to obtain the
14        information necessary for the processing or
15        underwriting of a loan, to the extent that the
16        communication does not include offering or negotiating
17        loan rates or terms, or counseling consumers about
18        residential mortgage loan rates or terms. An
19        individual engaging solely in loan processor or
20        underwriter activities shall not represent to the
21        public, through advertising or other means of
22        communicating or providing information, including the
23        use of business cards, stationery, brochures, signs,
24        rate lists, or other promotional items, that the
25        individual can or will perform any of the activities of
26        a mortgage loan originator.

 

 

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1        (pp) "Nationwide Mortgage Licensing System and
2    Registry" means a mortgage licensing system developed and
3    maintained by the Conference of State Bank Supervisors and
4    the American Association of Residential Mortgage
5    Regulators for the licensing and registration of licensed
6    mortgage loan originators.
7        (qq) "Nontraditional mortgage product" means any
8    mortgage product other than a 30-year fixed rate mortgage.
9        (rr) "Person" means a natural person, corporation,
10    company, limited liability company, partnership, or
11    association.
12        (ss) "Real estate brokerage activity" means any
13    activity that involves offering or providing real estate
14    brokerage services to the public, including:
15            (1) acting as a real estate agent or real estate
16        broker for a buyer, seller, lessor, or lessee of real
17        property;
18            (2) bringing together parties interested in the
19        sale, purchase, lease, rental, or exchange of real
20        property;
21            (3) negotiating, on behalf of any party, any
22        portion of a contract relating to the sale, purchase,
23        lease, rental, or exchange of real property, other than
24        in connection with providing financing with respect to
25        any such transaction;
26            (4) engaging in any activity for which a person

 

 

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1        engaged in the activity is required to be registered or
2        licensed as a real estate agent or real estate broker
3        under any applicable law; or
4            (5) offering to engage in any activity, or act in
5        any capacity, described in this subsection (ss).
6        (tt) "Registered mortgage loan originator" means any
7    individual that:
8            (1) meets the definition of mortgage loan
9        originator and is an employee of:
10                (A) a depository institution;
11                (B) a subsidiary that is:
12                    (i) owned and controlled by a depository
13                institution; and
14                    (ii) regulated by a federal banking
15                agency; or
16                (C) an institution regulated by the Farm
17            Credit Administration; and
18            (2) is registered with, and maintains a unique
19        identifier through, the Nationwide Mortgage Licensing
20        System and Registry.
21        (uu) "Unique identifier" means a number or other
22    identifier assigned by protocols established by the
23    Nationwide Mortgage Licensing System and Registry.
24        (vv) "Residential mortgage license" means a license
25    issued pursuant to Section 1-3, 2-2, or 2-6 of this Act.
26        (ww) "Mortgage loan originator license" means a

 

 

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1    license issued pursuant to Section 7-1A, 7-3, or 7-6 of
2    this Act.
3        (xx) "Secretary" means the Secretary of the Department
4    of Financial and Professional Regulation, or a person
5    authorized by the Secretary or by this Act to act in the
6    Secretary's stead.
7        (yy) "Loan modification" means, for compensation or
8    gain, either directly or indirectly offering or
9    negotiating on behalf of a borrower or homeowner to adjust
10    the terms of a residential mortgage loan in a manner not
11    provided for in the original or previously modified
12    mortgage loan.
13        (zz) "Short sale facilitation" means, for compensation
14    or gain, either directly or indirectly offering or
15    negotiating on behalf of a borrower or homeowner to
16    facilitate the sale of residential real estate subject to
17    one or more residential mortgage loans or debts
18    constituting liens on the property in which the proceeds
19    from selling the residential real estate will fall short of
20    the amount owed and the lien holders are contacted to agree
21    to release their lien on the residential real estate and
22    accept less than the full amount owed on the debt.
23    The Commissioner may define by rule and regulation any
24terms used in this Act for the efficient and clear
25administration of this Act.
26(Source: P.A. 98-749, eff. 7-16-14; 98-1081, eff. 1-1-15;

 

 

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199-78, eff. 7-20-15.)
 
2    (205 ILCS 635/4-1)  (from Ch. 17, par. 2324-1)
3    Sec. 4-1. Commissioner of Banks and Real Estate; functions,
4powers, and duties. The functions, powers, and duties of the
5Commissioner of Banks and Real Estate shall include the
6following:
7        (a) to issue or refuse to issue any license as provided
8    by this Act;
9        (b) to revoke or suspend for cause any license issued
10    under this Act;
11        (c) to keep records of all licenses issued under this
12    Act;
13        (d) to receive, consider, investigate, and act upon
14    complaints made by any person in connection with any
15    residential mortgage licensee in this State;
16        (e) (blank); to consider and act upon any
17    recommendations from the Residential Mortgage Board;
18        (f) to prescribe the forms of and receive:
19            (1) applications for licenses; and
20            (2) all reports and all books and records required
21        to be made by any licensee under this Act, including
22        annual audited financial statements and annual reports
23        of mortgage activity;
24        (g) to adopt rules and regulations necessary and proper
25    for the administration of this Act;

 

 

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1        (h) to subpoena documents and witnesses and compel
2    their attendance and production, to administer oaths, and
3    to require the production of any books, papers, or other
4    materials relevant to any inquiry authorized by this Act;
5        (h-1) to issue orders against any person, if the
6    Commissioner has reasonable cause to believe that an
7    unsafe, unsound, or unlawful practice has occurred, is
8    occurring, or is about to occur, if any person has
9    violated, is violating, or is about to violate any law,
10    rule, or written agreement with the Commissioner, or for
11    the purpose of administering the provisions of this Act and
12    any rule adopted in accordance with the Act;
13        (h-2) to address any inquiries to any licensee, or the
14    officers thereof, in relation to its activities and
15    conditions, or any other matter connected with its affairs,
16    and it shall be the duty of any licensee or person so
17    addressed, to promptly reply in writing to such inquiries.
18    The Commissioner may also require reports from any licensee
19    at any time the Commissioner may deem desirable;
20        (i) to require information with regard to any license
21    applicant as he or she may deem desirable, with due regard
22    to the paramount interests of the public as to the
23    experience, background, honesty, truthfulness, integrity,
24    and competency of the license applicant as to financial
25    transactions involving primary or subordinate mortgage
26    financing, and where the license applicant is an entity

 

 

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1    other than an individual, as to the honesty, truthfulness,
2    integrity, and competency of any officer or director of the
3    corporation, association, or other entity, or the members
4    of a partnership;
5        (j) to examine the books and records of every licensee
6    under this Act at intervals as specified in Section 4-2;
7        (k) to enforce provisions of this Act;
8        (l) to levy fees, fines, and charges for services
9    performed in administering this Act; the aggregate of all
10    fees collected by the Commissioner on and after the
11    effective date of this Act shall be paid promptly after
12    receipt of the same, accompanied by a detailed statement
13    thereof, into the Residential Finance Regulatory Fund
14    under Section 4-1.5 of this Act; the amounts deposited into
15    that Fund shall be used for the ordinary and contingent
16    expenses of the Office of Banks and Real Estate. Nothing in
17    this Act shall prevent continuing the practice of paying
18    expenses involving salaries, retirement, social security,
19    and State-paid insurance of State officers by
20    appropriation from the General Revenue Fund.
21        (m) to appoint examiners, supervisors, experts, and
22    special assistants as needed to effectively and
23    efficiently administer this Act;
24        (n) to conduct hearings for the purpose of:
25            (1) appeals of orders of the Commissioner;
26            (2) suspensions or revocations of licenses, or

 

 

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1        fining of licensees;
2            (3) investigating:
3                (i) complaints against licensees; or
4                (ii) annual gross delinquency rates; and
5            (4) carrying out the purposes of this Act;
6        (o) to exercise exclusive visitorial power over a
7    licensee unless otherwise authorized by this Act or as
8    vested in the courts, or upon prior consultation with the
9    Commissioner, a foreign residential mortgage regulator
10    with an appropriate supervisory interest in the parent or
11    affiliate of a licensee;
12        (p) to enter into cooperative agreements with state
13    regulatory authorities of other states to provide for
14    examination of corporate offices or branches of those
15    states and to accept reports of such examinations;
16        (q) to assign an examiner or examiners to monitor the
17    affairs of a licensee with whatever frequency the
18    Commissioner determines appropriate and to charge the
19    licensee for reasonable and necessary expenses of the
20    Commissioner, if in the opinion of the Commissioner an
21    emergency exists or appears likely to occur;
22        (r) to impose civil penalties of up to $50 per day
23    against a licensee for failing to respond to a regulatory
24    request or reporting requirement; and
25        (s) to enter into agreements in connection with the
26    Nationwide Mortgage Licensing System and Registry.

 

 

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1(Source: P.A. 98-1081, eff. 1-1-15.)
 
2    (205 ILCS 635/4-8)  (from Ch. 17, par. 2324-8)
3    Sec. 4-8. Delinquency; examination.
4    (a) The Commissioner shall obtain from the U.S. Department
5of Housing and Urban Development that Department's loan
6delinquency data.
7    (b) The Commissioner shall conduct as part of an
8examination of each licensee a review of the licensee's loan
9delinquency data.
10    This subsection shall not be construed as a limitation of
11the Commissioner's examination authority under Section 4-2 of
12this Act or as otherwise provided in this Act. The Commissioner
13may require a licensee to provide loan delinquency data as the
14Commissioner deems necessary for the proper enforcement of the
15Act.
16    (c) The purpose of the examination under subsection (b)
17shall be to determine whether the loan delinquency data of the
18licensee has resulted from practices which deviate from sound
19and accepted mortgage underwriting practices, including but
20not limited to credit fraud, appraisal fraud and property
21inspection fraud. For the purpose of conducting this
22examination, the Commissioner may accept materials prepared
23for the U.S. Department of Housing and Urban Development. At
24the conclusion of the examination, the Commissioner shall make
25his or her findings available to the Residential Mortgage

 

 

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1Board.
2    (d) The Commissioner, at his or her discretion, may hold
3public hearings, or at the direction of the Residential
4Mortgage Board, shall hold public hearings. Such testimony
5shall be by a homeowner or mortgagor or his agent, whose
6residential interest is affected by the activities of the
7residential mortgage licensee subject to such hearing. At such
8public hearing, a witness may present testimony on his or her
9behalf concerning only his or her home, or home mortgage or a
10witness may authorize a third party to appear on his or her
11behalf. The testimony shall be restricted to information and
12comments related to a specific residence or specific
13residential mortgage application or applications for a
14residential mortgage or residential loan transaction. The
15testimony must be preceded by either a letter of complaint or a
16completed consumer complaint form prescribed by the
17Commissioner.
18    (e) The Commissioner shall, at the conclusion of the public
19hearings, release his or her findings and shall also make
20public any action taken with respect to the licensee. The
21Commissioner shall also give full consideration to the findings
22of this examination whenever reapplication is made by the
23licensee for a new license under this Act.
24    (f) A licensee that is examined pursuant to subsection (b)
25shall submit to the Commissioner a plan which shall be designed
26to reduce that licensee's loan delinquencies. The plan shall be

 

 

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1implemented by the licensee as approved by the Commissioner. A
2licensee that is examined pursuant to subsection (b) shall
3report monthly, for a one year period, one, 2, and 3 month loan
4delinquencies.
5    (g) Whenever the Commissioner finds that a licensee's loan
6delinquencies on insured mortgages is unusually high within a
7particular geographic area, he or she shall require that
8licensee to submit such information as is necessary to
9determine whether that licensee's practices have constituted
10credit fraud, appraisal fraud or property inspection fraud. The
11Commissioner shall promulgate such rules as are necessary to
12determine whether any licensee's loan delinquencies are
13unusually high within a particular area.
14(Source: P.A. 99-15, eff. 1-1-16.)
 
15    (205 ILCS 635/1-5 rep.)
16    Section 20. The Residential Mortgage License Act of 1987 is
17amended by repealing Section 1-5.
 
18    Section 99. Effective date. This Act takes effect upon
19becoming law.