99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB6619

 

Introduced , by Rep. Kenneth Dunkin

 

SYNOPSIS AS INTRODUCED:
 
55 ILCS 5/3-5010.10
735 ILCS 5/15-1513 new
765 ILCS 905/6 new

    Amends the Counties Code. Provides that in counties with a population of more than 3,000,000, if a mortgagee is the purchaser of any property on which it holds a mortgage at a judicial sale, the mortgagee, and any real estate professional listing the property on behalf of the mortgagee after the judicial sale, shall register with the county's property fraud alert system. Further provides that the property fraud alert system shall notify all registered property owners and registered real estate professionals not later than 15 days after a document is recorded with the county recorder that relates to a registered property. Amends the Mortgage Foreclosure Article of the Code of Civil Procedure making conforming changes. Amends the Mortgage Act. Provides that a mortgagee shall publish a telephone number, email address, or both where a real estate professional may contact the mortgagee to verify the mortgagee's ownership interest in property. Further provides that a mortgagee shall respond by phone or e-mail no later than the next business day after the inquiry to verify ownership of the property.


LRB099 23776 AWJ 51294 b

 

 

A BILL FOR

 

HB6619LRB099 23776 AWJ 51294 b

1    AN ACT concerning local government.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Counties Code is amended by changing Section
53-5010.10 as follows:
 
6    (55 ILCS 5/3-5010.10)
7    Sec. 3-5010.10. Property fraud alert system; registration
8by property owners and real estate professionals.
9    (a) As used in this Section:
10    "Mortgage" has the meaning given to that term under Section
1115-1208 of the Code of Civil Procedure.
12    "Mortgagee" has the meaning given to that term under
13Section 15-1208 of the Code of Civil Procedure and only
14includes persons, partnerships, associations, corporations, or
15other entities licensed by the State to conduct business under
16the Residential Mortgage License Act of 1987.
17    "Property fraud alert system" means any electronic or
18automated alert system run by a county or by a third-party
19vendor, by whatever name, that informs a property owner by
20e-mail, telephone, or mail when a document is recorded with the
21county recorder that relates to a registered property.
22    "Real estate professional" means a licensed real estate
23agent, attorney, closing agent, or agent of a title insurance

 

 

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1company.
2    (b) In a county that has a property fraud alert system, a
3recorder may create a registration form for a real estate
4professional to file with the recorder on behalf of a property
5owner to register the property owner in the county's property
6fraud alert system. The registration form must contain the
7following minimum information:
8        (1) a A notice on the top of the form that property
9    owners are not required to register with the county's
10    property fraud alert system; .
11        (2) a A description of the county's property fraud
12    alert system; the name of the third-party vendor, if any,
13    who operates the property fraud alert system; and the cost,
14    if any, to the property owner of the property fraud alert
15    system; and
16        (3) a A portion to be completed by a property owner and
17    real estate professional containing:
18            (i) the property owner's name and mailing address;
19            (ii) the Property Index Number (PIN) or unique
20        parcel identification code of the property for which an
21        alert will be created;
22            (iii) the e-mail, telephone number, or mailing
23        address the property owner would like to receive the
24        alert;
25            (iv) any information a third-party vendor who
26        operates a county's property fraud alert system

 

 

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1        requires to register a property owner;
2            (v) if required, payment method and billing
3        information;
4            (vi) a clear and conspicuous notice, immediately
5        before the signatures, stating that the property owner
6        understands that neither the recorder, nor a
7        third-party vendor operating a county's property fraud
8        alert system, nor a real estate professional, nor any
9        employees thereof shall be liable to the property owner
10        should the property fraud alert system fail to alert
11        the property owner of any document being recorded and
12        that it is the property owner's responsibility to
13        verify the information he or she has provided is
14        correct and that he or she is registered with the
15        property fraud alert system;
16            (vii) a place for the property owner's signature;
17            (viii) a place for the real estate professional's
18        signature, if applicable, along with a statement
19        indicating that the real estate professional is
20        registered with the recorder and is allowed to file the
21        registration form with the recorder; and
22            (ix) a place to list up to 3 other persons to
23        receive a property fraud alert, including each
24        person's e-mail, telephone number, or address where he
25        or she will receive the alert.
26    (c) A property owner or real estate professional may file a

 

 

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1completed and signed registration form with the recorder. When
2a recorder receives such a completed and signed registration
3form, the recorder shall complete the registration process for
4the property owner listed on the registration form by entering
5the information from the registration form into the property
6fraud alert system.
7    (d) A real estate professional that wishes to file
8registration forms with the recorder on behalf of property
9owners must first register with the recorder by verifying they
10are a licensed real estate agent, attorney, closing agent, or
11agent of a title insurance company. The recorder shall keep a
12list of all registered real estate professionals.
13    (e) No county, recorder, third-party vendor operating a
14county's property fraud alert system, real estate
15professional, or any employees thereof shall be subject to
16liability, except for willful and wanton misconduct, for any
17error or omission in registering a property owner pursuant to
18this Section or for any damages caused by the failure of the
19property owner to be alerted of any document that was recorded
20that relates to a property registered under the owner's name.
21    (f) A home rule unit shall not use or create a registration
22form for use by a real estate professional to register a
23property owner on the county's property fraud alert system that
24conflicts with this Section. This Section is a limitation under
25subsection (i) of Section 6 of Article VII of the Illinois
26Constitution on the concurrent exercise by home rule units of

 

 

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1powers and functions exercised by the State. However, nothing
2in this Section shall prevent any person from signing up for a
3property fraud alert system by other means than those provided
4for in this Section, including, but not limited to, on a
5county's website or a third-party vendor's website that hosts a
6property fraud alert system.
7    (g) In counties with a population of greater than
83,000,000:
9        (1) If a mortgagee is the purchaser of any property on
10    which it holds a mortgage at a judicial sale, the
11    mortgagee, and any real estate professional listing the
12    property on behalf of the mortgagee after the judicial
13    sale, shall register with the county's property fraud alert
14    system. A mortgagee shall register no later than 7 days
15    after the court executes a deed to the mortgagee under
16    Section 15-1509 of the Code of Civil Procedure and a real
17    estate professional shall register no later than 7 days
18    after being retained to list the property.
19        (2) The property fraud alert system shall notify all
20    registered property owners and registered real estate
21    professionals not later than 15 days after a document is
22    recorded with the county recorder that relates to a
23    registered property.
24(Source: P.A. 99-75, eff. 1-1-16.)
 
25    Section 10. The Code of Civil Procedure is amended by

 

 

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1adding Section 15-1513 as follows:
 
2    (735 ILCS 5/15-1513 new)
3    Sec. 15-1513. Property fraud alert system. In counties with
4a population of greater than 3,000,000, if a mortgagee is the
5purchaser of any property on which it holds a mortgage at a
6judicial sale, the mortgagee, and any real estate professional
7listing the property on behalf of the mortgagee after the
8judicial sale, shall register with the county's property fraud
9alert system as required by Section 3-5010.10 of the Counties
10Code.
 
11    Section 15. The Mortgage Act is amended by adding Section 6
12as follows:
 
13    (765 ILCS 905/6 new)
14    Sec. 6. Verification of ownership of property.
15    (a) For purposes of this Section:
16    "Mortgagee" has the meaning given to that term under
17Section 15-1208 of the Code of Civil Procedure and only
18includes persons, partnerships, associations, corporations, or
19other entities licensed by the State to conduct business under
20the Residential Mortgage License Act of 1987.
21    "Real estate professional" has the meaning given to that
22term under Section 3-5010.10 of the Counties Code.
23    (b) A mortgagee shall publish a telephone number, email

 

 

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1address, or both where a real estate professional may contact
2the mortgagee to verify the mortgagee's ownership interest in
3property. The mortgagee shall publish the telephone number,
4email address, or both on its Internet website, if it has one,
5and within every mortgage document filed with the county
6recorder.
7    (c) When a mortgagee receives an inquiry from a real estate
8professional to verify ownership of a property, the mortgagee
9shall respond by phone or e-mail no later than the next
10business day after the inquiry is received. Any inquiry
11received after 5 p.m., Central Standard Time, or on a State or
12federal holiday, shall be considered received the next business
13day.