Sen. Chuck Weaver
Filed: 5/10/2018
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1 | AMENDMENT TO HOUSE BILL 5542
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2 | AMENDMENT NO. ______. Amend House Bill 5542 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 5. The Student Loan Servicing Rights Act is | ||||||
5 | amended by changing Sections 15-15, 15-20, 15-25, 15-30, 15-40, | ||||||
6 | 20-5, 20-20, and 20-30 as follows: | ||||||
7 | (110 ILCS 992/15-15) | ||||||
8 | (This Section may contain text from a Public Act with a | ||||||
9 | delayed effective date )
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10 | Sec. 15-15. Application process; investigation; fees. | ||||||
11 | (a) The Secretary shall issue a license upon completion of | ||||||
12 | all of the following: | ||||||
13 | (1) the filing of an application for license with the
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14 | Secretary or the Nationwide Multistate Mortgage Licensing | ||||||
15 | System and Registry as approved by the Secretary; | ||||||
16 | (2) the filing with the Secretary of a listing of
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1 | judgments entered against, and bankruptcy petitions by, | ||||||
2 | the license applicant for the preceding 10 years; | ||||||
3 | (3) the payment, in certified funds, of investigation
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4 | and application fees, the total of which shall be in an | ||||||
5 | amount equal to $1,000 for an initial application and $800 | ||||||
6 | for a background investigation; | ||||||
7 | (4) the filing of an audited balance sheet, including | ||||||
8 | all footnotes prepared by a certified public accountant in | ||||||
9 | accordance with generally accepted accounting principles | ||||||
10 | and generally accepted auditing standards; notwithstanding | ||||||
11 | the requirements of this subsection, an applicant that is a | ||||||
12 | subsidiary may submit audited consolidated financial | ||||||
13 | statements of its parent, intermediary parent, or ultimate | ||||||
14 | parent as long as the consolidated statements are supported | ||||||
15 | by consolidating statements that include the applicant's | ||||||
16 | financial statement; if the consolidating statements are | ||||||
17 | unaudited, the applicant's chief financial officer shall | ||||||
18 | attest to the applicant's financial statements disclosed | ||||||
19 | in the consolidating statements; and | ||||||
20 | (5) an investigation of the averments required by
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21 | Section 15-30, which investigation must allow the | ||||||
22 | Secretary to issue positive findings stating that the | ||||||
23 | financial responsibility, experience, character, and | ||||||
24 | general fitness of the license applicant and of the members | ||||||
25 | thereof if the license applicant is a partnership or | ||||||
26 | association, of the officers and directors thereof if the |
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1 | license applicant is a corporation, and of the managers and | ||||||
2 | members that retain any authority or responsibility under | ||||||
3 | the operating agreement if the license applicant is a | ||||||
4 | limited liability company, are such as to command the | ||||||
5 | confidence of the community and to warrant belief that the | ||||||
6 | business will be operated honestly, fairly, and | ||||||
7 | efficiently within the purpose of this Act; if the | ||||||
8 | Secretary does not so find, he or she shall not issue the | ||||||
9 | license, and he or she shall notify the license applicant | ||||||
10 | of the denial. | ||||||
11 | The Secretary may impose conditions on a license if the | ||||||
12 | Secretary determines that those conditions are necessary or | ||||||
13 | appropriate. These conditions shall be imposed in writing and | ||||||
14 | shall continue in effect for the period prescribed by the | ||||||
15 | Secretary. | ||||||
16 | (b) All licenses shall be issued to the license applicant. | ||||||
17 | Upon receipt of the license, a student loan servicing licensee | ||||||
18 | shall be authorized to engage in the business regulated by this | ||||||
19 | Act. The license shall remain in full force and effect until it | ||||||
20 | expires without renewal, is surrendered by the licensee, or | ||||||
21 | revoked or suspended as hereinafter provided.
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22 | (Source: P.A. 100-540, eff. 12-31-18.) | ||||||
23 | (110 ILCS 992/15-20) | ||||||
24 | (This Section may contain text from a Public Act with a | ||||||
25 | delayed effective date )
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1 | Sec. 15-20. Application form. | ||||||
2 | (a) Application for a student loan servicer license must be | ||||||
3 | made in accordance with Section 15-40 and, if applicable, in | ||||||
4 | accordance with requirements of the Nationwide Multistate | ||||||
5 | Mortgage Licensing System and Registry. The application shall | ||||||
6 | be in writing, under oath, and on a form obtained from and | ||||||
7 | prescribed by the Secretary, or may be submitted | ||||||
8 | electronically, with attestation, to the Nationwide Multistate | ||||||
9 | Mortgage Licensing System and Registry. | ||||||
10 | (b) The application shall contain the name and complete | ||||||
11 | business and residential address or addresses of the license | ||||||
12 | applicant. If the license applicant is a partnership, | ||||||
13 | association, corporation, or other form of business | ||||||
14 | organization, the application shall contain the names and | ||||||
15 | complete business and residential addresses of each member, | ||||||
16 | director, and principal officer thereof. The application shall | ||||||
17 | also include a description of the activities of the license | ||||||
18 | applicant in such detail and for such periods as the Secretary | ||||||
19 | may require, including all of the following: | ||||||
20 | (1) an affirmation of financial solvency noting such
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21 | capitalization requirements as may be required by the | ||||||
22 | Secretary and access to such credit as may be required by | ||||||
23 | the Secretary; | ||||||
24 | (2) an affirmation that the license applicant or its
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25 | members, directors, or principals, as may be appropriate, | ||||||
26 | are at least 18 years of age; |
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1 | (3) information as to the character, fitness,
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2 | financial and business responsibility, background, | ||||||
3 | experience, and criminal record of any (i) person, entity, | ||||||
4 | or ultimate equitable owner that owns or controls, directly | ||||||
5 | or indirectly, 10% or more of any class of stock of the | ||||||
6 | license applicant; (ii) person, entity, or ultimate | ||||||
7 | equitable owner that is not a depository institution, as | ||||||
8 | defined in Section 1007.50 of the Savings Bank Act, that | ||||||
9 | lends, provides, or infuses, directly or indirectly, in any | ||||||
10 | way, funds to or into a license applicant in an amount | ||||||
11 | equal to or more than 10% of the license applicant's net | ||||||
12 | worth; (iii) person, entity, or ultimate equitable owner | ||||||
13 | that controls, directly or indirectly, the election of 25% | ||||||
14 | or more of the members of the board of directors of a | ||||||
15 | license applicant; or (iv) person, entity, or ultimate | ||||||
16 | equitable owner that the Secretary finds influences | ||||||
17 | management of the license applicant; the provisions of this | ||||||
18 | subsection shall not apply to a public official serving on | ||||||
19 | the board of directors of a State guaranty agency; | ||||||
20 | (4) upon written request by the licensee and
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21 | notwithstanding the provisions of paragraphs (1), (2), and | ||||||
22 | (3) of this subsection, the Secretary may permit the | ||||||
23 | licensee to omit all or part of the information required by | ||||||
24 | those paragraphs if, in lieu of the omitted information, | ||||||
25 | the licensee submits an affidavit stating that the | ||||||
26 | information submitted on the licensee's previous renewal |
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1 | application is still true and accurate; the Secretary may | ||||||
2 | adopt rules prescribing the form and content of the | ||||||
3 | affidavit that are necessary to accomplish the purposes of | ||||||
4 | this Section; and | ||||||
5 | (5) such other information as required by rules
of the | ||||||
6 | Secretary.
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7 | (Source: P.A. 100-540, eff. 12-31-18.) | ||||||
8 | (110 ILCS 992/15-25) | ||||||
9 | (This Section may contain text from a Public Act with a | ||||||
10 | delayed effective date )
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11 | Sec. 15-25. Student loan servicer license application and | ||||||
12 | issuance. | ||||||
13 | (a) Applicants for a license shall apply in a form | ||||||
14 | prescribed by the Secretary. Each form shall contain content as | ||||||
15 | set forth by rule, regulation, instruction, or procedure of the | ||||||
16 | Secretary and may be changed or updated as necessary by the | ||||||
17 | Secretary in order to carry out the purposes of this Act. | ||||||
18 | (b) In order to fulfill the purposes of this Act, the | ||||||
19 | Secretary is authorized to establish relationships or | ||||||
20 | contracts with the Nationwide Multistate Mortgage Licensing | ||||||
21 | System and Registry or other entities designated by the | ||||||
22 | Nationwide Multistate Mortgage Licensing System and Registry | ||||||
23 | to collect and maintain records and process transaction fees or | ||||||
24 | other fees related to licensees or other persons subject to | ||||||
25 | this Act. |
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1 | (c) In connection with an application for licensing, the | ||||||
2 | applicant may be required, at a minimum, to furnish to the | ||||||
3 | Nationwide Multistate Mortgage Licensing System and Registry | ||||||
4 | information concerning the applicant's identity, including: | ||||||
5 | (1) fingerprints for submission to the Federal Bureau
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6 | of Investigation or any governmental agency or entity | ||||||
7 | authorized to receive such information for a State, | ||||||
8 | national, and international criminal history background | ||||||
9 | check; and | ||||||
10 | (2) personal history and experience in a form
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11 | prescribed by the Nationwide Multistate Mortgage Licensing | ||||||
12 | System and Registry, including the submission of | ||||||
13 | authorization for the Nationwide Multistate Mortgage | ||||||
14 | Licensing System and Registry and the Secretary to obtain: | ||||||
15 | (A) an independent credit report obtained from a
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16 | consumer reporting agency described in Section 603(p) | ||||||
17 | of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); | ||||||
18 | and | ||||||
19 | (B) information related to any administrative,
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20 | civil, or criminal findings by any governmental | ||||||
21 | jurisdiction. | ||||||
22 | (d) For the purposes of this Section, and in order to | ||||||
23 | reduce the points of contact that the Federal Bureau of | ||||||
24 | Investigation may have to maintain for purposes of subsection | ||||||
25 | (c) of this Section, the Secretary may use the Nationwide | ||||||
26 | Multistate Mortgage Licensing System and Registry as a |
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1 | channeling agent for requesting information from and | ||||||
2 | distributing information to the federal Department of Justice | ||||||
3 | or any governmental agency. | ||||||
4 | (e) For the purposes of this Section, and in order to | ||||||
5 | reduce the points of contact that the Secretary may have to | ||||||
6 | maintain for purposes of paragraph (2) of subsection (c) of | ||||||
7 | this Section, the Secretary may use the Nationwide Multistate | ||||||
8 | Mortgage Licensing System and Registry as a channeling agent | ||||||
9 | for requesting and distributing information to and from any | ||||||
10 | source as directed by the Secretary. | ||||||
11 | (f) The provisions of this Section shall not apply to a | ||||||
12 | public official serving on the board of directors of a State | ||||||
13 | guaranty agency.
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14 | (Source: P.A. 100-540, eff. 12-31-18.) | ||||||
15 | (110 ILCS 992/15-30) | ||||||
16 | (This Section may contain text from a Public Act with a | ||||||
17 | delayed effective date )
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18 | Sec. 15-30. Averments of licensee. Each application for | ||||||
19 | license shall be accompanied by the following averments stating | ||||||
20 | that the applicant: | ||||||
21 | (1) will file with the Secretary or Nationwide | ||||||
22 | Multistate
Mortgage Licensing System and Registry, as | ||||||
23 | applicable, when due, any report or reports that it is | ||||||
24 | required to file under any of the provisions of this Act; | ||||||
25 | (2) has not committed a crime against the law of this
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1 | State, any other state, or of the United States involving | ||||||
2 | moral turpitude or fraudulent or dishonest dealing, and | ||||||
3 | that no final judgment has been entered against it in a | ||||||
4 | civil action upon grounds of fraud, misrepresentation, or | ||||||
5 | deceit that has not been previously reported to the | ||||||
6 | Secretary; | ||||||
7 | (3) has not engaged in any conduct that would be
cause | ||||||
8 | for denial of a license; | ||||||
9 | (4) has not become insolvent; | ||||||
10 | (5) has not submitted an application for a license
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11 | under this Act that contains a material misstatement; | ||||||
12 | (6) has not demonstrated by course of conduct,
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13 | negligence or incompetence in performing any act for which | ||||||
14 | it is required to hold a license under this Act; | ||||||
15 | (7) will advise the Secretary in writing or the
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16 | Nationwide Multistate Mortgage Licensing System and | ||||||
17 | Registry, as applicable, of any changes to the information | ||||||
18 | submitted on the most recent application for license or | ||||||
19 | averments of record within 30 days of the change; the | ||||||
20 | written notice must be signed in the same form as the | ||||||
21 | application for the license being amended; | ||||||
22 | (8) will comply with the provisions of this Act and
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23 | with any lawful order, rule, or regulation made or issued | ||||||
24 | under the provisions of this Act; | ||||||
25 | (9) will submit to periodic examination by the
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26 | Secretary as required by this Act; and |
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1 | (10) will advise the Secretary in writing of
judgments | ||||||
2 | entered against and bankruptcy petitions by the license | ||||||
3 | applicant within 5 days after the occurrence. | ||||||
4 | A licensee who fails to fulfill the obligations of an | ||||||
5 | averment, fails to comply with averments made, or otherwise | ||||||
6 | violates any of the averments made under this Section shall be | ||||||
7 | subject to the penalties of this Act.
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8 | (Source: P.A. 100-540, eff. 12-31-18.) | ||||||
9 | (110 ILCS 992/15-40) | ||||||
10 | (This Section may contain text from a Public Act with a | ||||||
11 | delayed effective date )
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12 | Sec. 15-40. License issuance and renewal; fees.
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13 | (a) Licenses shall be renewed every year using the common | ||||||
14 | renewal date of the Nationwide Multistate Mortgage Licensing | ||||||
15 | System and Registry, as adopted by the Secretary. Properly | ||||||
16 | completed renewal application forms and filing fees may be | ||||||
17 | received by the Secretary 60 days prior to the license | ||||||
18 | expiration date, but, to be deemed timely, the completed | ||||||
19 | renewal application forms and filing fees must be received by | ||||||
20 | the Secretary no later than 30 days prior to the license | ||||||
21 | expiration date. | ||||||
22 | (b) It shall be the responsibility of each licensee to | ||||||
23 | accomplish renewal of its license. Failure by a licensee to | ||||||
24 | submit a properly completed renewal application form and fees | ||||||
25 | in a timely fashion, absent a written extension from the |
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1 | Secretary, shall result in the license becoming inactive. | ||||||
2 | (c) No activity regulated by this Act shall be conducted by | ||||||
3 | the licensee when a license becomes inactive. An inactive | ||||||
4 | license may be reactivated by the Secretary upon payment of the | ||||||
5 | renewal fee and payment of a reactivation fee equal to the | ||||||
6 | renewal fee. | ||||||
7 | (d) A licensee ceasing an activity or activities regulated | ||||||
8 | by this Act and desiring to no longer be licensed shall so | ||||||
9 | inform the Secretary in writing and, at the same time, convey | ||||||
10 | any license issued and all other symbols or indicia of | ||||||
11 | licensure. The licensee shall include a plan for the withdrawal | ||||||
12 | from regulated business, including a timetable for the | ||||||
13 | disposition of the business, and comply with the surrender | ||||||
14 | guidelines or requirements of the Secretary. Upon receipt of | ||||||
15 | such written notice, the Secretary shall post the cancellation | ||||||
16 | or issue a certified statement canceling the license. | ||||||
17 | (e) The expenses of administering this Act, including | ||||||
18 | investigations and examinations provided for in this Act, shall | ||||||
19 | be borne by and assessed against entities regulated by this | ||||||
20 | Act. Subject to the limitations set forth in Section 15-15 of | ||||||
21 | this Act, the Secretary shall establish fees by rule in at | ||||||
22 | least the following categories: | ||||||
23 | (1) investigation of licensees and license applicant | ||||||
24 | fees; | ||||||
25 | (2) examination fees; | ||||||
26 | (3) contingent fees;
and |
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1 | (4) such other categories as may be required to | ||||||
2 | administer this Act.
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3 | (Source: P.A. 100-540, eff. 12-31-18.) | ||||||
4 | (110 ILCS 992/20-5) | ||||||
5 | (This Section may contain text from a Public Act with a | ||||||
6 | delayed effective date )
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7 | Sec. 20-5. Functions; powers; duties. The functions, | ||||||
8 | powers, and duties of the Secretary shall include the | ||||||
9 | following: | ||||||
10 | (1) to issue or refuse to issue any license as
provided | ||||||
11 | by this Act; | ||||||
12 | (2) to revoke or suspend for cause any license issued
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13 | under this Act; | ||||||
14 | (3) to keep records of all licenses issued under this
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15 | Act; | ||||||
16 | (4) to receive, consider, investigate, and act upon
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17 | complaints made by any person in connection with any | ||||||
18 | student loan servicing licensee in this State; | ||||||
19 | (5) to prescribe the forms of and receive: | ||||||
20 | (A) applications for licenses; and | ||||||
21 | (B) all reports and all books and records
required | ||||||
22 | to be made by any licensee under this Act, including | ||||||
23 | annual audited financial statements and annual reports | ||||||
24 | of student loan activity; | ||||||
25 | (6) to adopt rules necessary and
proper for the |
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1 | administration of this Act; | ||||||
2 | (7) to subpoena documents and witnesses and compel
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3 | their attendance and production, to administer oaths, and | ||||||
4 | to require the production of any books, papers, or other | ||||||
5 | materials relevant to any inquiry authorized by this Act; | ||||||
6 | (8) to issue orders against any person if the
Secretary | ||||||
7 | has reasonable cause to believe that an unsafe, unsound, or | ||||||
8 | unlawful practice has occurred, is occurring, or is about | ||||||
9 | to occur; if any person has violated, is violating, or is | ||||||
10 | about to violate any law, rule, or written agreement with | ||||||
11 | the Secretary; or for the purpose of administering the | ||||||
12 | provisions of this Act and any rule adopted in accordance | ||||||
13 | with this Act; | ||||||
14 | (9) to address any inquiries to any licensee, or
the | ||||||
15 | officers thereof, in relation to its activities and | ||||||
16 | conditions, or any other matter connected with its affairs, | ||||||
17 | and it shall be the duty of any licensee or person so | ||||||
18 | addressed to promptly reply in writing to those inquiries; | ||||||
19 | the Secretary may also require reports from any licensee at | ||||||
20 | any time the Secretary may deem desirable; | ||||||
21 | (10) to examine the books and records of every
licensee | ||||||
22 | under this Act; | ||||||
23 | (11) to enforce provisions of this Act; | ||||||
24 | (12) to levy fees, fines, and charges for services
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25 | performed in administering this Act; the aggregate of all | ||||||
26 | fees collected by the Secretary on and after the effective |
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1 | date of this Act shall be paid promptly after receipt, | ||||||
2 | accompanied by a detailed statement thereof, into the Bank | ||||||
3 | and Trust Company Fund under Section 20-10; the amounts | ||||||
4 | deposited into that Fund shall be used for the ordinary and | ||||||
5 | contingent expenses of the Department; nothing in this Act | ||||||
6 | shall prevent the continuation of the practice of paying | ||||||
7 | expenses involving salaries, retirement, social security, | ||||||
8 | and State-paid insurance of State officers by | ||||||
9 | appropriation from the General Revenue Fund; | ||||||
10 | (13) to appoint examiners, supervisors, experts, and
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11 | special assistants as needed to effectively and | ||||||
12 | efficiently administer this Act; | ||||||
13 | (14) to conduct hearings for the purpose of: | ||||||
14 | (A) appeals of orders of the Secretary; | ||||||
15 | (B) suspensions or revocations of licenses, or
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16 | fining of licensees; | ||||||
17 | (C) investigating: | ||||||
18 | (i) complaints against licensees; or | ||||||
19 | (ii) annual gross delinquency rates; and | ||||||
20 | (D) carrying out the purposes of this Act; | ||||||
21 | (15) to exercise exclusive visitorial power over a
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22 | licensee unless otherwise authorized by this Act or as | ||||||
23 | vested in the courts, or upon prior consultation with the | ||||||
24 | Secretary, a foreign student loan servicing regulator with | ||||||
25 | an appropriate supervisory interest in the parent or | ||||||
26 | affiliate of a licensee; |
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1 | (16) to enter into cooperative agreements with state
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2 | regulatory authorities of other states to provide for | ||||||
3 | examination of corporate offices or branches of those | ||||||
4 | states and to accept reports of such examinations; | ||||||
5 | (17) to assign an examiner or examiners to monitor the
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6 | affairs of a licensee with whatever frequency the Secretary | ||||||
7 | determines appropriate and to charge the licensee for | ||||||
8 | reasonable and necessary expenses of the Secretary if in | ||||||
9 | the opinion of the Secretary an emergency exists or appears | ||||||
10 | likely to occur; | ||||||
11 | (18) to impose civil penalties of up to $50 per day
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12 | against a licensee for failing to respond to a regulatory | ||||||
13 | request or reporting requirement; and | ||||||
14 | (19) to enter into agreements in connection with the
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15 | Nationwide Multistate Mortgage Licensing System and | ||||||
16 | Registry.
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17 | (Source: P.A. 100-540, eff. 12-31-18.) | ||||||
18 | (110 ILCS 992/20-30) | ||||||
19 | (This Section may contain text from a Public Act with a | ||||||
20 | delayed effective date )
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21 | Sec. 20-30. Suspension; revocation of licenses; fines. | ||||||
22 | (a) Upon written notice to a licensee, the Secretary may | ||||||
23 | suspend or revoke any license issued pursuant to this Act if, | ||||||
24 | in the notice, he or she makes a finding of one or more of the | ||||||
25 | following: |
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1 | (1) that through separate acts or an act or a course of
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2 | conduct, the licensee has violated any provisions of this | ||||||
3 | Act, any rule adopted by the Secretary, or any other law, | ||||||
4 | rule, or regulation of this State or the United States; | ||||||
5 | (2) that any fact or condition exists that, if it had
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6 | existed at the time of the original application for the | ||||||
7 | license, would have warranted the Secretary in refusing | ||||||
8 | originally to issue the license; or | ||||||
9 | (3) that if a licensee is other than an individual, any
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10 | ultimate equitable owner, officer, director, or member of | ||||||
11 | the licensed partnership, association, corporation, or | ||||||
12 | other entity has acted or failed to act in a way that would | ||||||
13 | be cause for suspending or revoking a license to that party | ||||||
14 | as an individual. | ||||||
15 | (b) No license shall be suspended or revoked, except as | ||||||
16 | provided in this Section, nor shall any licensee be fined | ||||||
17 | without notice of his or her right to a hearing as provided in | ||||||
18 | Section 20-65 of this Act. | ||||||
19 | (c) The Secretary, on good cause shown that an emergency | ||||||
20 | exists, may suspend any license for a period not exceeding 180 | ||||||
21 | days, pending investigation. | ||||||
22 | (d) The provisions of subsection (d) of Section 15-40 of | ||||||
23 | this Act shall not affect a licensee's civil or criminal | ||||||
24 | liability for acts committed prior to surrender of a license. | ||||||
25 | (e) No revocation, suspension, or surrender of any license | ||||||
26 | shall impair or affect the obligation of any pre-existing |
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1 | lawful contract between the licensee and any person. | ||||||
2 | (f) Every license issued under this Act shall remain in | ||||||
3 | force and effect until the license expires without renewal, is | ||||||
4 | surrendered, is revoked, or is suspended in accordance with the | ||||||
5 | provisions of this Act, but the Secretary shall have authority | ||||||
6 | to reinstate a suspended license or to issue a new license to a | ||||||
7 | licensee whose license has been revoked if no fact or condition | ||||||
8 | then exists which would have warranted the Secretary in | ||||||
9 | refusing originally to issue that license under this Act. | ||||||
10 | (g) Whenever the Secretary revokes or suspends a license | ||||||
11 | issued pursuant to this Act or fines a licensee under this Act, | ||||||
12 | he or she shall execute a written order to that effect. The | ||||||
13 | Secretary shall post notice of the order on an agency Internet | ||||||
14 | site maintained by the Secretary or on the Nationwide | ||||||
15 | Multistate Mortgage Licensing System and Registry and shall | ||||||
16 | serve a copy of the order upon the licensee. Any such order may | ||||||
17 | be reviewed in the manner provided by Section 20-65 of this | ||||||
18 | Act. | ||||||
19 | (h) If the Secretary finds any person in violation of the | ||||||
20 | grounds set forth in subsection (i), he or she may enter an | ||||||
21 | order imposing one or more of the following penalties: | ||||||
22 | (1) revocation of license; | ||||||
23 | (2) suspension of a license subject to reinstatement
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24 | upon satisfying all reasonable conditions the Secretary | ||||||
25 | may specify; | ||||||
26 | (3) placement of the licensee or applicant on
probation |
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1 | for a period of time and subject to all reasonable | ||||||
2 | conditions as the Secretary may specify; | ||||||
3 | (4) issuance of a reprimand; | ||||||
4 | (5) imposition of a fine not to exceed $25,000 for
each | ||||||
5 | count of separate offense; except that a fine may be | ||||||
6 | imposed not to exceed $75,000 for each separate count of | ||||||
7 | offense of paragraph (2) of subsection (i) of this Section; | ||||||
8 | or | ||||||
9 | (6) denial of a license. | ||||||
10 | (i) The following acts shall constitute grounds for which | ||||||
11 | the disciplinary actions specified in subsection (h) may be | ||||||
12 | taken: | ||||||
13 | (1) being convicted or found guilty, regardless of
| ||||||
14 | pendency of an appeal, of a crime in any jurisdiction that | ||||||
15 | involves fraud, dishonest dealing, or any other act of | ||||||
16 | moral turpitude; | ||||||
17 | (2) fraud, misrepresentation, deceit, or negligence in
| ||||||
18 | any student loan transaction; | ||||||
19 | (3) a material or intentional misstatement of fact on
| ||||||
20 | an initial or renewal application; | ||||||
21 | (4) insolvency or filing under any provision of the | ||||||
22 | federal
Bankruptcy Code as a debtor; | ||||||
23 | (5) failure to account or deliver to any person any
| ||||||
24 | property, such as any money, fund, deposit, check, draft, | ||||||
25 | or other document or thing of value, that has come into his | ||||||
26 | or her hands and that is not his or her property or that he |
| |||||||
| |||||||
1 | or she is not in law or equity entitled to retain, under | ||||||
2 | the circumstances and at the time which has been agreed | ||||||
3 | upon or is required by law or, in the absence of a fixed | ||||||
4 | time, upon demand of the person entitled to such accounting | ||||||
5 | and delivery; | ||||||
6 | (6) failure to disburse funds in accordance with
| ||||||
7 | agreements; | ||||||
8 | (7) having a license, or the equivalent, to practice
| ||||||
9 | any profession or occupation revoked, suspended, or | ||||||
10 | otherwise acted against, including the denial of licensure | ||||||
11 | by a licensing authority of this State or another state, | ||||||
12 | territory, or country for fraud, dishonest dealing, or any | ||||||
13 | other act of moral turpitude; | ||||||
14 | (8) failure to comply with an order of the
Secretary or | ||||||
15 | rule made or issued under the provisions of this Act; | ||||||
16 | (9) engaging in activities regulated by this Act
| ||||||
17 | without a current, active license unless specifically | ||||||
18 | exempted by this Act; | ||||||
19 | (10) failure to pay in a timely manner any fee,
charge, | ||||||
20 | or fine under this Act; | ||||||
21 | (11) failure to maintain, preserve, and keep
available | ||||||
22 | for examination all books, accounts, or other documents | ||||||
23 | required by the provisions of this Act and the rules of the | ||||||
24 | Secretary; | ||||||
25 | (12) refusing, obstructing, evading, or unreasonably
| ||||||
26 | delaying an investigation, information request, or |
| |||||||
| |||||||
1 | examination authorized under this Act, or refusing, | ||||||
2 | obstructing, evading, or unreasonably delaying compliance | ||||||
3 | with the Secretary's subpoena or subpoena duces tecum; and | ||||||
4 | (13) failure to comply with or a violation of any
| ||||||
5 | provision of this Act. | ||||||
6 | (j) A licensee shall be subject to the disciplinary actions | ||||||
7 | specified in this Act for violations of subsection (i) by any | ||||||
8 | officer, director, shareholder, joint venture, partner, | ||||||
9 | ultimate equitable owner, or employee of the licensee. | ||||||
10 | (k) A licensee shall be subject to suspension or revocation | ||||||
11 | for unauthorized employee actions only if there is a pattern of | ||||||
12 | repeated violations by employees or the licensee has knowledge | ||||||
13 | of the violations or there is substantial harm to a consumer. | ||||||
14 | (l) Procedures for surrender of a license include the | ||||||
15 | following: | ||||||
16 | (1) The Secretary may, after 10 days' notice by
| ||||||
17 | certified mail to the licensee at the address set forth on | ||||||
18 | the license, stating the contemplated action and in general | ||||||
19 | the grounds for the contemplated action and the date, time, | ||||||
20 | and place of a hearing thereon, and after providing the | ||||||
21 | licensee with a reasonable opportunity to be heard prior to | ||||||
22 | such action, fine such licensee an amount not exceeding | ||||||
23 | $25,000 per violation, or revoke or suspend any license | ||||||
24 | issued under this Act if he or she finds that: | ||||||
25 | (i) the licensee has failed to comply with any
| ||||||
26 | provision of this Act or any order, decision, finding, |
| |||||||
| |||||||
1 | rule, regulation, or direction of the Secretary | ||||||
2 | lawfully made pursuant to the authority of this Act; or | ||||||
3 | (ii) any fact or condition exists that, if it
had | ||||||
4 | existed at the time of the original application for the | ||||||
5 | license, clearly would have warranted the Secretary in | ||||||
6 | refusing to issue the license. | ||||||
7 | (2) Any licensee may submit an application to surrender
| ||||||
8 | a license, but, upon the Secretary approving the surrender, | ||||||
9 | it shall not affect the licensee's civil or criminal | ||||||
10 | liability for acts committed prior to surrender or entitle | ||||||
11 | the licensee to a return of any part of the license fee.
| ||||||
12 | (Source: P.A. 100-540, eff. 12-31-18.) | ||||||
13 | Section 10. The Residential Mortgage License Act of 1987 is | ||||||
14 | amended by changing Sections 1-3, 1-4, 2-2, 2-3, 2-3A, 2-4, | ||||||
15 | 2-6, 3-2, 4-1, 4-5, 4-8, 4-8.1A, 4-8.3, 4-9.1, 5-9, 7-1A, 7-2, | ||||||
16 | 7-4, 7-5, 7-6, 7-7, 7-8, 7-9, 7-10, and 7-13 as follows: | ||||||
17 | (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3) | ||||||
18 | Sec. 1-3. Necessity for license; scope of Act. | ||||||
19 | (a) No person, partnership, association, corporation or | ||||||
20 | other entity
shall engage in the business of brokering, | ||||||
21 | funding, originating, servicing
or purchasing of residential | ||||||
22 | mortgage loans without first obtaining a
license from the | ||||||
23 | Secretary in accordance with the licensing procedure
provided | ||||||
24 | in this Article I and such regulations as may be promulgated by
|
| |||||||
| |||||||
1 | the Secretary. The licensing provisions of this Section shall | ||||||
2 | not apply
to any entity engaged solely in commercial mortgage | ||||||
3 | lending or
to any person, partnership association, corporation | ||||||
4 | or other entity
exempted pursuant to Section 1-4, subsection | ||||||
5 | (d), of this Act or in accordance
with regulations promulgated | ||||||
6 | by the Secretary hereunder. No provision of this Act shall | ||||||
7 | apply to an exempt person or entity as defined in items (1) and | ||||||
8 | (1.5) of subsection (d) of Section 1-4 of this Act. | ||||||
9 | Notwithstanding anything to the contrary in the preceding | ||||||
10 | sentence, an individual acting as a mortgage loan originator | ||||||
11 | who is not employed by and acting for an entity described in | ||||||
12 | item (1) of subsection (tt) of Section 1-4 of this Act shall be | ||||||
13 | subject to the mortgage loan originator licensing requirements | ||||||
14 | of Article VII of this Act. | ||||||
15 | Effective January 1, 2011, no provision of this Act shall | ||||||
16 | apply to an exempt person or entity as defined in item (1.8) of | ||||||
17 | subsection (d) of Section 1-4 of this Act. Notwithstanding | ||||||
18 | anything to the contrary in the preceding sentence, an | ||||||
19 | individual acting as a mortgage loan originator who is not | ||||||
20 | employed by and acting for an entity described in item (1) of | ||||||
21 | subsection (tt) of Section 1-4 of this Act shall be subject to | ||||||
22 | the mortgage loan originator licensing requirements of Article | ||||||
23 | VII of this Act, and provided that an individual acting as a | ||||||
24 | mortgage loan originator under item (1.8) of subsection (d) of | ||||||
25 | Section 1-4 of this Act shall be further subject to a | ||||||
26 | determination by the U.S. Department of Housing and Urban |
| |||||||
| |||||||
1 | Development through final rulemaking or other authorized | ||||||
2 | agency determination under the federal Secure and Fair | ||||||
3 | Enforcement for Mortgage Licensing Act of 2008. | ||||||
4 | (a-1) A person who is exempt from licensure pursuant to | ||||||
5 | paragraph (ii) of item (1) of subsection (d) of Section 1-4 of | ||||||
6 | this Act as a federally chartered savings bank that is | ||||||
7 | registered with the Nationwide Multistate Mortgage Licensing | ||||||
8 | System and Registry may apply to the Secretary for an exempt | ||||||
9 | company registration for the purpose of sponsoring one or more | ||||||
10 | individuals subject to the mortgage loan originator licensing | ||||||
11 | requirements of Article VII of this Act. Registration with the | ||||||
12 | Division of Banking of the Department shall not affect the | ||||||
13 | exempt status of the applicant. | ||||||
14 | (1) A mortgage loan originator eligible for licensure | ||||||
15 | under this subsection shall (A) be covered under an | ||||||
16 | exclusive written contract with, and originate residential | ||||||
17 | mortgage loans solely on behalf of, that exempt person; and | ||||||
18 | (B) hold a current, valid insurance producer license under | ||||||
19 | Article XXXI of the Illinois Insurance Code. | ||||||
20 | (2) An exempt person shall: (A) fulfill any reporting | ||||||
21 | requirements required by the Nationwide Multistate | ||||||
22 | Mortgage Licensing System and Registry or the Secretary; | ||||||
23 | (B) provide a blanket surety bond pursuant to Section 7-12 | ||||||
24 | of this Act covering the activities of all its sponsored | ||||||
25 | mortgage loan originators; (C) reasonably supervise the | ||||||
26 | activities of all its sponsored mortgage loan originators; |
| |||||||
| |||||||
1 | (D) comply with all rules and orders (including the | ||||||
2 | averments contained in Section 2-4 of this Act as | ||||||
3 | applicable to a non-licensed exempt entity provided for in | ||||||
4 | this Section) that the Secretary deems necessary to ensure | ||||||
5 | compliance with the federal SAFE Act; and (E) pay an annual | ||||||
6 | registration fee established by the Director. | ||||||
7 | (3) The Secretary may deny an exempt company | ||||||
8 | registration to an exempt person or fine, suspend, or | ||||||
9 | revoke an exempt company registration if the Secretary | ||||||
10 | finds one of the following: | ||||||
11 | (A) that the exempt person is not a person of | ||||||
12 | honesty, truthfulness, or good character; | ||||||
13 | (B) that the exempt person violated any applicable | ||||||
14 | law, rule, or order; | ||||||
15 | (C) that the exempt person refused or failed to | ||||||
16 | furnish, within a reasonable time, any information or | ||||||
17 | make any report that may be required by the Secretary; | ||||||
18 | (D) that the exempt person had a final judgment | ||||||
19 | entered against him or her in a civil action on grounds | ||||||
20 | of fraud, deceit, or misrepresentation, and the | ||||||
21 | conduct on which the judgment is based indicates that | ||||||
22 | it would be contrary to the interest of the public to | ||||||
23 | permit the exempt person to manage a loan originator; | ||||||
24 | (E) that the exempt person had an order entered | ||||||
25 | against him or her involving fraud, deceit, or | ||||||
26 | misrepresentation by an administrative agency of this |
| |||||||
| |||||||
1 | State, the federal government, or any other state or | ||||||
2 | territory of the United States, and the facts relating | ||||||
3 | to the order indicate that it would be contrary to the | ||||||
4 | interest of the public to permit the exempt person to | ||||||
5 | manage a loan originator; | ||||||
6 | (F) that the exempt person made a material | ||||||
7 | misstatement or suppressed or withheld information on | ||||||
8 | the application for an exempt company registration or | ||||||
9 | any document required to be filed with the Secretary; | ||||||
10 | or | ||||||
11 | (G) that the exempt person violated Section 4-5 of | ||||||
12 | this Act. | ||||||
13 | (b) No person, partnership, association, corporation, or | ||||||
14 | other entity
except a licensee under this Act or an entity | ||||||
15 | exempt from licensing
pursuant to Section 1-4, subsection (d), | ||||||
16 | of this Act shall do any business
under any name or title, or | ||||||
17 | circulate or use any advertising or make any
representation or | ||||||
18 | give any information to any person, which indicates or
| ||||||
19 | reasonably implies activity within the scope
of this Act. | ||||||
20 | (c) The Secretary may, through the Attorney General, | ||||||
21 | request the circuit
court of either Cook or Sangamon County to | ||||||
22 | issue an injunction to restrain
any person from violating or | ||||||
23 | continuing to violate any of the foregoing
provisions of this | ||||||
24 | Section. | ||||||
25 | (d) When the Secretary has reasonable cause to believe that | ||||||
26 | any
entity which has not submitted an application for licensure |
| |||||||
| |||||||
1 | is conducting
any of the activities described in subsection (a) | ||||||
2 | hereof, the Secretary
shall have the power to examine all books | ||||||
3 | and records of the entity and any
additional documentation | ||||||
4 | necessary in order to determine whether such
entity should | ||||||
5 | become licensed under this Act. | ||||||
6 | (d-1) The Secretary may issue orders against any person if | ||||||
7 | the Secretary has reasonable cause to believe that an unsafe, | ||||||
8 | unsound, or unlawful practice has occurred, is occurring, or is | ||||||
9 | about to occur, if any person has violated, is violating, or is | ||||||
10 | about to violate any law, rule, or written agreement with the | ||||||
11 | Secretary, or for the purposes of administering the provisions | ||||||
12 | of this Act and any rule adopted in accordance with this Act.
| ||||||
13 | (e) Any person, partnership, association, corporation or | ||||||
14 | other entity
who violates any provision of this Section commits | ||||||
15 | a business offense and
shall be fined an amount not to exceed | ||||||
16 | $25,000. A mortgage loan brokered, funded, originated, | ||||||
17 | serviced, or purchased by a party who is not licensed under | ||||||
18 | this Section shall not be held to be invalid solely on the | ||||||
19 | basis of a violation under this Section. The changes made to | ||||||
20 | this Section by this amendatory Act of the 99th General | ||||||
21 | Assembly are declarative of existing law. | ||||||
22 | (f) Each person, partnership, association, corporation or | ||||||
23 | other entity
conducting activities regulated by this Act shall | ||||||
24 | be issued one license.
Each office, place of business or | ||||||
25 | location at which a residential mortgage
licensee conducts any | ||||||
26 | part of his or her business must
be recorded with the Secretary |
| |||||||
| |||||||
1 | pursuant to Section 2-8 of this Act. | ||||||
2 | (g) Licensees under this Act shall solicit, broker, fund, | ||||||
3 | originate,
service and purchase residential mortgage loans | ||||||
4 | only in conformity with the
provisions of this Act and such | ||||||
5 | rules and regulations as may be promulgated
by the Secretary. | ||||||
6 | (h) This Act applies to all entities doing business in | ||||||
7 | Illinois as
residential mortgage bankers, as defined by "An Act | ||||||
8 | to provide for the
regulation of mortgage bankers", approved | ||||||
9 | September 15, 1977, as amended,
regardless of whether licensed | ||||||
10 | under that or any prior Act. Any existing
residential mortgage | ||||||
11 | lender or residential mortgage broker in Illinois
whether or | ||||||
12 | not previously licensed, must operate in accordance with this | ||||||
13 | Act. | ||||||
14 | (i) This Act is a successor Act to and a continuance of the | ||||||
15 | regulation
of residential mortgage bankers provided in, "An Act | ||||||
16 | to provide for the
regulation of mortgage bankers", approved | ||||||
17 | September 15, 1977, as amended. | ||||||
18 | Entities and persons subject to the predecessor Act shall | ||||||
19 | be subject to
this Act from and after its effective date. | ||||||
20 | (Source: P.A. 98-492, eff. 8-16-13; 99-113, eff. 7-23-15.) | ||||||
21 | (205 ILCS 635/1-4) | ||||||
22 | Sec. 1-4. Definitions. The following words and phrases have | ||||||
23 | the meanings given to them in this Section: | ||||||
24 | (a) "Residential real property" or "residential real | ||||||
25 | estate" shall mean any real property located in Illinois, |
| |||||||
| |||||||
1 | upon which is constructed or intended to be constructed a | ||||||
2 | dwelling. Those terms include a manufactured home as | ||||||
3 | defined in subdivision (53) of Section 9-102 of the Uniform | ||||||
4 | Commercial Code which is real property as defined in | ||||||
5 | Section 5-35 of the Conveyance and Encumbrance of | ||||||
6 | Manufactured Homes as Real Property and Severance Act. | ||||||
7 | (b) "Making a residential mortgage loan" or "funding a | ||||||
8 | residential mortgage
loan" shall mean for compensation or | ||||||
9 | gain, either directly or indirectly,
advancing funds or | ||||||
10 | making a commitment to advance funds to a loan applicant
| ||||||
11 | for a residential mortgage loan. | ||||||
12 | (c) "Soliciting, processing, placing, or negotiating a | ||||||
13 | residential
mortgage loan" shall mean for compensation or | ||||||
14 | gain, either directly or
indirectly, accepting or offering | ||||||
15 | to accept an application for a
residential mortgage loan, | ||||||
16 | assisting or offering to assist in the
processing of an | ||||||
17 | application for a residential mortgage loan on behalf of a
| ||||||
18 | borrower, or negotiating or offering to negotiate the terms | ||||||
19 | or conditions
of a residential mortgage loan with a lender | ||||||
20 | on behalf of a borrower
including, but not limited to, the | ||||||
21 | submission of credit packages for the
approval of lenders, | ||||||
22 | the preparation of residential mortgage loan closing
| ||||||
23 | documents, including a closing in the name of a broker. | ||||||
24 | (d) "Exempt person or entity" shall mean the following: | ||||||
25 | (1) (i) Any banking organization or foreign | ||||||
26 | banking corporation
licensed by the Illinois |
| |||||||
| |||||||
1 | Commissioner of Banks and Real Estate or the
United | ||||||
2 | States Comptroller of the Currency to transact | ||||||
3 | business in this
State; (ii) any national bank, | ||||||
4 | federally chartered savings and loan
association, | ||||||
5 | federal savings bank, federal credit union; (iii) | ||||||
6 | (blank); (iv) any bank, savings and loan
association, | ||||||
7 | savings bank, or credit union organized under the laws | ||||||
8 | of this
or any other state; (v) any Illinois Consumer | ||||||
9 | Installment Loan Act licensee;
(vi) any insurance | ||||||
10 | company authorized to transact business in this State;
| ||||||
11 | (vii) any entity engaged solely in commercial mortgage | ||||||
12 | lending; (viii) any
service corporation of a savings | ||||||
13 | and loan association or savings bank organized
under | ||||||
14 | the laws of this State or the service corporation of a | ||||||
15 | federally
chartered savings and loan association or | ||||||
16 | savings bank having
its principal place of business in | ||||||
17 | this State, other than a service
corporation licensed | ||||||
18 | or entitled to reciprocity under the Real Estate
| ||||||
19 | License Act of 2000; or (ix) any first tier subsidiary | ||||||
20 | of a
bank, the charter of which is issued under the | ||||||
21 | Illinois Banking Act
by the Illinois Commissioner of | ||||||
22 | Banks and Real Estate,
or the first tier subsidiary of | ||||||
23 | a bank chartered by the United States
Comptroller of | ||||||
24 | the Currency and that has its principal place of | ||||||
25 | business
in this State, provided that the first tier | ||||||
26 | subsidiary is regularly
examined by the Illinois |
| |||||||
| |||||||
1 | Commissioner of Banks and Real Estate
or the | ||||||
2 | Comptroller of the Currency, or a consumer compliance | ||||||
3 | examination is
regularly conducted by the Federal | ||||||
4 | Reserve Board. | ||||||
5 | (1.5) Any employee of a person or entity mentioned | ||||||
6 | in
item (1) of this subsection, when acting for such | ||||||
7 | person or entity, or any registered mortgage loan | ||||||
8 | originator when acting for an entity described in | ||||||
9 | subsection (tt) of this Section. | ||||||
10 | (1.8) Any person or entity that does not originate | ||||||
11 | mortgage loans in the ordinary course of business, but | ||||||
12 | makes or acquires residential mortgage loans with his | ||||||
13 | or her own funds for his or her or its own investment | ||||||
14 | without intent to make, acquire, or resell more than 3 | ||||||
15 | residential mortgage loans in any one calendar year. | ||||||
16 | (2) (Blank). | ||||||
17 | (2.1) A bona fide nonprofit organization. | ||||||
18 | (2.2) An employee of a bona fide nonprofit | ||||||
19 | organization when acting on behalf of that | ||||||
20 | organization. | ||||||
21 | (3) Any person employed by a licensee to assist in | ||||||
22 | the performance of
the residential mortgage licensee's | ||||||
23 | activities regulated by this Act who is compensated in | ||||||
24 | any manner by
only one licensee. | ||||||
25 | (4) (Blank). | ||||||
26 | (5) Any individual, corporation, partnership, or |
| |||||||
| |||||||
1 | other entity that
originates, services, or brokers | ||||||
2 | residential mortgage loans, as these
activities are | ||||||
3 | defined in this Act, and who or which receives no
| ||||||
4 | compensation for those activities, subject to the | ||||||
5 | Commissioner's
regulations and the federal Secure and | ||||||
6 | Fair Enforcement for Mortgage Licensing Act of 2008 and | ||||||
7 | the rules promulgated under that Act with regard to the | ||||||
8 | nature and amount of compensation. | ||||||
9 | (6) (Blank). | ||||||
10 | (e) "Licensee" or "residential mortgage licensee" | ||||||
11 | shall mean a person,
partnership, association, | ||||||
12 | corporation, or any other entity who or which is
licensed | ||||||
13 | pursuant to this Act to engage in the activities regulated | ||||||
14 | by
this Act. | ||||||
15 | (f) "Mortgage loan" "residential mortgage loan" or | ||||||
16 | "home
mortgage loan" shall mean any loan primarily for | ||||||
17 | personal, family, or household use that is secured by a | ||||||
18 | mortgage, deed of trust, or other equivalent consensual | ||||||
19 | security interest on a dwelling as defined in Section | ||||||
20 | 103(v) of the federal Truth in Lending Act, or residential | ||||||
21 | real estate upon which is constructed or intended to be | ||||||
22 | constructed a dwelling. | ||||||
23 | (g) "Lender" shall mean any person, partnership, | ||||||
24 | association,
corporation, or any other entity who either | ||||||
25 | lends or invests money in
residential mortgage loans. | ||||||
26 | (h) "Ultimate equitable owner" shall mean a person who, |
| |||||||
| |||||||
1 | directly
or indirectly, owns or controls an ownership | ||||||
2 | interest in a corporation,
foreign corporation, alien | ||||||
3 | business organization, trust, or any other form
of business | ||||||
4 | organization regardless of whether the person owns or | ||||||
5 | controls
the ownership interest through one or more persons | ||||||
6 | or one or more proxies,
powers of attorney, nominees, | ||||||
7 | corporations, associations, partnerships,
trusts, joint | ||||||
8 | stock companies, or other entities or devices, or any
| ||||||
9 | combination thereof. | ||||||
10 | (i) "Residential mortgage financing transaction" shall | ||||||
11 | mean the negotiation,
acquisition, sale, or arrangement | ||||||
12 | for or the offer to negotiate, acquire,
sell, or arrange | ||||||
13 | for, a residential mortgage loan or residential mortgage
| ||||||
14 | loan commitment. | ||||||
15 | (j) "Personal residence address" shall mean a street | ||||||
16 | address and shall
not include a post office box number. | ||||||
17 | (k) "Residential mortgage loan commitment" shall mean | ||||||
18 | a contract for
residential mortgage loan financing. | ||||||
19 | (l) "Party to a residential mortgage financing | ||||||
20 | transaction" shall mean a
borrower, lender, or loan broker | ||||||
21 | in a residential mortgage financing
transaction. | ||||||
22 | (m) "Payments" shall mean payment of all or any of the | ||||||
23 | following:
principal, interest and escrow reserves for | ||||||
24 | taxes, insurance and other related
reserves, and | ||||||
25 | reimbursement for lender advances. | ||||||
26 | (n) "Commissioner" shall mean the Commissioner of |
| |||||||
| |||||||
1 | Banks and Real Estate, except that, beginning on April 6, | ||||||
2 | 2009 (the effective date of Public Act 95-1047), all | ||||||
3 | references in this Act to the Commissioner of Banks and | ||||||
4 | Real Estate are deemed, in appropriate contexts, to be | ||||||
5 | references to the Secretary of Financial and Professional | ||||||
6 | Regulation, or his or her designee, including the Director | ||||||
7 | of the Division of Banking of the Department of Financial | ||||||
8 | and Professional Regulation. | ||||||
9 | (n-1) "Director" shall mean the Director of the | ||||||
10 | Division of Banking of the Department of Financial and | ||||||
11 | Professional Regulation, except that, beginning on July | ||||||
12 | 31, 2009 (the effective date of Public Act 96-112), all | ||||||
13 | references in this Act to the Director are deemed, in | ||||||
14 | appropriate contexts, to be the Secretary of Financial and | ||||||
15 | Professional Regulation, or his or her designee, including | ||||||
16 | the Director of the Division of Banking of the Department | ||||||
17 | of Financial and Professional Regulation. | ||||||
18 | (o) "Loan brokering", "brokering", or "brokerage | ||||||
19 | service" shall mean the act
of helping to obtain from | ||||||
20 | another entity, for a borrower, a loan secured by
| ||||||
21 | residential real estate situated in Illinois or assisting a | ||||||
22 | borrower in
obtaining a loan secured by residential real | ||||||
23 | estate situated in Illinois in
return for consideration to | ||||||
24 | be paid by either the borrower or the lender
including, but | ||||||
25 | not limited to, contracting for the delivery of residential
| ||||||
26 | mortgage loans to a third party lender and soliciting, |
| |||||||
| |||||||
1 | processing, placing,
or negotiating residential mortgage | ||||||
2 | loans. | ||||||
3 | (p) "Loan broker" or "broker" shall mean a person, | ||||||
4 | partnership,
association, corporation, or limited | ||||||
5 | liability company, other than
those persons, partnerships,
| ||||||
6 | associations, corporations, or limited liability companies | ||||||
7 | exempted
from licensing pursuant to Section
1-4, | ||||||
8 | subsection (d), of this Act, who performs the activities | ||||||
9 | described
in subsections (c), (o), and (yy) of this | ||||||
10 | Section. | ||||||
11 | (q) "Servicing" shall mean the collection or | ||||||
12 | remittance for or the
right or obligation to collect or | ||||||
13 | remit for any lender, noteowner,
noteholder, or for a | ||||||
14 | licensee's own account, of payments, interests,
principal, | ||||||
15 | and trust items such as hazard insurance and taxes on a
| ||||||
16 | residential mortgage loan in accordance with the terms of | ||||||
17 | the residential
mortgage loan; and includes loan payment | ||||||
18 | follow-up, delinquency loan
follow-up, loan analysis and | ||||||
19 | any notifications to the borrower that are
necessary to | ||||||
20 | enable the borrower to keep the loan current and in good | ||||||
21 | standing. "Servicing" includes management of third-party | ||||||
22 | entities acting on behalf of a residential mortgage | ||||||
23 | licensee for the collection of delinquent payments and the | ||||||
24 | use by such third-party entities of said licensee's | ||||||
25 | servicing records or information, including their use in | ||||||
26 | foreclosure. |
| |||||||
| |||||||
1 | (r) "Full service office" shall mean an office, | ||||||
2 | provided by the licensee and not subleased from the | ||||||
3 | licensee's employees, and staff in Illinois
reasonably | ||||||
4 | adequate to handle efficiently communications, questions, | ||||||
5 | and
other matters relating to any application for, or an | ||||||
6 | existing home mortgage
secured by residential real estate | ||||||
7 | situated in Illinois
with respect to which the licensee is | ||||||
8 | brokering, funding originating,
purchasing, or servicing. | ||||||
9 | The management and operation of each full service
office | ||||||
10 | must include observance of good business practices such as | ||||||
11 | proper signage; adequate,
organized, and accurate books | ||||||
12 | and records; ample phone lines, hours of
business, staff | ||||||
13 | training and supervision, and provision for a mechanism to
| ||||||
14 | resolve consumer inquiries, complaints, and problems. The | ||||||
15 | Commissioner
shall issue regulations with regard to these | ||||||
16 | requirements and shall include
an evaluation of compliance | ||||||
17 | with this Section in his or her periodic
examination of | ||||||
18 | each licensee. | ||||||
19 | (s) "Purchasing" shall mean the purchase of | ||||||
20 | conventional or
government-insured mortgage loans secured | ||||||
21 | by residential real estate
situated in Illinois from either | ||||||
22 | the lender or from the secondary market. | ||||||
23 | (t) "Borrower" shall mean the person or persons who | ||||||
24 | seek the services of
a loan broker, originator, or lender. | ||||||
25 | (u) "Originating" shall mean the issuing of | ||||||
26 | commitments for and funding of
residential mortgage loans. |
| |||||||
| |||||||
1 | (v) "Loan brokerage agreement" shall mean a written | ||||||
2 | agreement in which a
broker or loan broker agrees to do | ||||||
3 | either of the following: | ||||||
4 | (1) obtain a residential mortgage loan for the | ||||||
5 | borrower or assist the
borrower in obtaining a | ||||||
6 | residential mortgage loan; or | ||||||
7 | (2) consider making a residential mortgage loan to | ||||||
8 | the borrower. | ||||||
9 | (w) "Advertisement" shall mean the attempt by | ||||||
10 | publication,
dissemination, or circulation to induce, | ||||||
11 | directly or indirectly,
any person to enter into a | ||||||
12 | residential mortgage loan agreement or
residential | ||||||
13 | mortgage loan brokerage agreement relative to a
mortgage | ||||||
14 | secured by residential real estate situated in Illinois. | ||||||
15 | (x) "Residential Mortgage Board" shall mean the | ||||||
16 | Residential Mortgage
Board created in Section 1-5 of this | ||||||
17 | Act. | ||||||
18 | (y) "Government-insured mortgage loan" shall mean any | ||||||
19 | mortgage loan made
on the security of residential real | ||||||
20 | estate insured by the Department of
Housing and Urban | ||||||
21 | Development or Farmers Home Loan Administration, or
| ||||||
22 | guaranteed by the Veterans Administration. | ||||||
23 | (z) "Annual audit" shall mean a certified audit of the | ||||||
24 | licensee's books and
records and systems of internal | ||||||
25 | control performed by a certified public
accountant in | ||||||
26 | accordance with generally accepted accounting principles
|
| |||||||
| |||||||
1 | and generally accepted auditing standards. | ||||||
2 | (aa) "Financial institution" shall mean a savings and | ||||||
3 | loan
association, savings bank, credit union, or a bank | ||||||
4 | organized under the
laws of Illinois or a savings and loan | ||||||
5 | association, savings bank,
credit union or a bank organized | ||||||
6 | under the laws of the United States and
headquartered in | ||||||
7 | Illinois. | ||||||
8 | (bb) "Escrow agent" shall mean a third party, | ||||||
9 | individual or entity
charged with the fiduciary obligation | ||||||
10 | for holding escrow funds on a
residential mortgage loan | ||||||
11 | pending final payout of those funds
in accordance with the | ||||||
12 | terms of the residential mortgage loan. | ||||||
13 | (cc) "Net worth" shall have the meaning ascribed | ||||||
14 | thereto in Section 3-5
of this Act. | ||||||
15 | (dd) "Affiliate" shall mean: | ||||||
16 | (1) any entity that directly controls or is | ||||||
17 | controlled by the licensee
and any other company that | ||||||
18 | is directly affecting activities regulated by
this Act | ||||||
19 | that is controlled by the company that controls the | ||||||
20 | licensee; | ||||||
21 | (2) any entity: | ||||||
22 | (A) that is controlled, directly or | ||||||
23 | indirectly, by a trust or otherwise,
by or for the | ||||||
24 | benefit of shareholders who beneficially or | ||||||
25 | otherwise
control, directly or indirectly, by | ||||||
26 | trust or otherwise, the licensee or any
company |
| |||||||
| |||||||
1 | that controls the licensee; or | ||||||
2 | (B) a majority of the directors or trustees of | ||||||
3 | which constitute a
majority of the persons holding | ||||||
4 | any such office with the licensee or any
company | ||||||
5 | that controls the licensee; | ||||||
6 | (3) any company, including a real estate | ||||||
7 | investment trust, that is
sponsored and advised on a | ||||||
8 | contractual basis by the licensee or any
subsidiary or | ||||||
9 | affiliate of the licensee. | ||||||
10 | (ee) "First tier subsidiary" shall be defined by | ||||||
11 | regulation
incorporating the comparable definitions used | ||||||
12 | by the Office of the
Comptroller of the Currency and the | ||||||
13 | Illinois Commissioner of Banks
and Real Estate. | ||||||
14 | (ff) "Gross delinquency rate" means the quotient | ||||||
15 | determined by dividing
(1) the sum of (i) the number of | ||||||
16 | government-insured residential mortgage loans
funded or | ||||||
17 | purchased by a licensee in the preceding calendar year that | ||||||
18 | are
delinquent and (ii) the number of conventional | ||||||
19 | residential mortgage loans
funded or purchased by the | ||||||
20 | licensee in the preceding calendar year that are
delinquent | ||||||
21 | by (2) the sum of (i) the number of government-insured | ||||||
22 | residential
mortgage loans funded or purchased by the | ||||||
23 | licensee in the preceding calendar
year and (ii) the number | ||||||
24 | of conventional residential mortgage loans funded or
| ||||||
25 | purchased by the licensee in the preceding calendar year. | ||||||
26 | (gg) "Delinquency rate factor" means the factor set by |
| |||||||
| |||||||
1 | rule of the
Commissioner that is multiplied by the average | ||||||
2 | gross delinquency rate of
licensees, determined annually | ||||||
3 | for the immediately preceding calendar year, for
the | ||||||
4 | purpose of determining which licensees shall be examined by | ||||||
5 | the
Commissioner pursuant to subsection (b) of Section 4-8 | ||||||
6 | of this Act. | ||||||
7 | (hh) (Blank). "Loan originator" means any natural | ||||||
8 | person who, for compensation or in
the expectation of | ||||||
9 | compensation, either directly or indirectly makes, offers | ||||||
10 | to
make, solicits, places, or negotiates a residential | ||||||
11 | mortgage loan. This definition applies only to Section 7-1 | ||||||
12 | of this Act. | ||||||
13 | (ii) "Confidential supervisory information" means any | ||||||
14 | report of examination, visitation, or investigation | ||||||
15 | prepared by the Commissioner under this Act, any report of | ||||||
16 | examination visitation, or investigation prepared by the | ||||||
17 | state regulatory authority of another state that examines a | ||||||
18 | licensee, any document or record prepared or obtained in | ||||||
19 | connection with or relating to any examination, | ||||||
20 | visitation, or investigation, and any record prepared or | ||||||
21 | obtained by the Commissioner to the extent that the record | ||||||
22 | summarizes or contains information derived from any | ||||||
23 | report, document, or record described in this subsection. | ||||||
24 | "Confidential supervisory information" does not include | ||||||
25 | any information or record routinely prepared by a licensee | ||||||
26 | and maintained in the ordinary course of business or any |
| |||||||
| |||||||
1 | information or record that is required to be made publicly | ||||||
2 | available pursuant to State or federal law or rule.
| ||||||
3 | (jj) "Mortgage loan originator" means an individual | ||||||
4 | who for compensation or gain or in the expectation of | ||||||
5 | compensation or gain: | ||||||
6 | (i) takes a residential mortgage loan application; | ||||||
7 | or | ||||||
8 | (ii) offers or negotiates terms of a residential | ||||||
9 | mortgage loan. | ||||||
10 | "Mortgage loan originator" includes an individual | ||||||
11 | engaged in loan modification activities as defined in | ||||||
12 | subsection (yy) of this Section. A mortgage loan originator | ||||||
13 | engaged in loan modification activities shall report those | ||||||
14 | activities to the Department of Financial and Professional | ||||||
15 | Regulation in the manner provided by the Department; | ||||||
16 | however, the Department shall not impose a fee for | ||||||
17 | reporting, nor require any additional qualifications to | ||||||
18 | engage in those activities beyond those provided pursuant | ||||||
19 | to this Act for mortgage loan originators. | ||||||
20 | "Mortgage loan originator" does not include an | ||||||
21 | individual engaged solely as a loan processor or | ||||||
22 | underwriter except as otherwise provided in subsection (d) | ||||||
23 | of Section 7-1A of this Act. | ||||||
24 | "Mortgage loan originator" does not include a person or | ||||||
25 | entity that only performs real estate brokerage activities | ||||||
26 | and is licensed in accordance with the Real Estate License |
| |||||||
| |||||||
1 | Act of 2000, unless the person or entity is compensated by | ||||||
2 | a lender, a mortgage broker, or other mortgage loan | ||||||
3 | originator, or by any agent of that lender, mortgage | ||||||
4 | broker, or other mortgage loan originator. | ||||||
5 | "Mortgage loan originator" does not include a person or | ||||||
6 | entity solely involved in extensions of credit relating to | ||||||
7 | timeshare plans, as that term is defined in Section | ||||||
8 | 101(53D) of Title 11, United States Code. | ||||||
9 | (kk) "Depository institution" has the same meaning as | ||||||
10 | in Section 3 of the Federal Deposit Insurance Act, and | ||||||
11 | includes any credit union. | ||||||
12 | (ll) "Dwelling" means a residential structure or | ||||||
13 | mobile home which contains one to 4 family housing units, | ||||||
14 | or individual units of condominiums or cooperatives. | ||||||
15 | (mm) "Immediate family member" means a spouse, child, | ||||||
16 | sibling, parent, grandparent, or grandchild, and includes | ||||||
17 | step-parents, step-children, step-siblings, or adoptive | ||||||
18 | relationships. | ||||||
19 | (nn) "Individual" means a natural person. | ||||||
20 | (oo) "Loan processor or underwriter" means an | ||||||
21 | individual who performs clerical or support duties as an | ||||||
22 | employee at the direction of and subject to the supervision | ||||||
23 | and instruction of a person licensed, or exempt from | ||||||
24 | licensing, under this Act. "Clerical or support duties" | ||||||
25 | includes subsequent to the receipt of an application: | ||||||
26 | (i) the receipt, collection, distribution, and |
| |||||||
| |||||||
1 | analysis of information common for the processing or | ||||||
2 | underwriting of a residential mortgage loan; and | ||||||
3 | (ii) communicating with a consumer to obtain the | ||||||
4 | information necessary for the processing or | ||||||
5 | underwriting of a loan, to the extent that the | ||||||
6 | communication does not include offering or negotiating | ||||||
7 | loan rates or terms, or counseling consumers about | ||||||
8 | residential mortgage loan rates or terms. An | ||||||
9 | individual engaging solely in loan processor or | ||||||
10 | underwriter activities shall not represent to the | ||||||
11 | public, through advertising or other means of | ||||||
12 | communicating or providing information, including the | ||||||
13 | use of business cards, stationery, brochures, signs, | ||||||
14 | rate lists, or other promotional items, that the | ||||||
15 | individual can or will perform any of the activities of | ||||||
16 | a mortgage loan originator. | ||||||
17 | (pp) "Nationwide Multistate Mortgage Licensing System | ||||||
18 | and Registry" means a mortgage licensing system developed | ||||||
19 | and maintained by the Conference of State Bank Supervisors | ||||||
20 | and the American Association of Residential Mortgage | ||||||
21 | Regulators for the licensing and registration of licensed | ||||||
22 | mortgage loan originators. | ||||||
23 | (qq) "Nontraditional mortgage product" means any | ||||||
24 | mortgage product other than a 30-year fixed rate mortgage. | ||||||
25 | (rr) "Person" means a natural person, corporation, | ||||||
26 | company, limited liability company, partnership, or |
| |||||||
| |||||||
1 | association. | ||||||
2 | (ss) "Real estate brokerage activity" means any | ||||||
3 | activity that involves offering or providing real estate | ||||||
4 | brokerage services to the public, including: | ||||||
5 | (1) acting as a real estate agent or real estate | ||||||
6 | broker for a buyer, seller, lessor, or lessee of real | ||||||
7 | property; | ||||||
8 | (2) bringing together parties interested in the | ||||||
9 | sale, purchase, lease, rental, or exchange of real | ||||||
10 | property; | ||||||
11 | (3) negotiating, on behalf of any party, any | ||||||
12 | portion of a contract relating to the sale, purchase, | ||||||
13 | lease, rental, or exchange of real property, other than | ||||||
14 | in connection with providing financing with respect to | ||||||
15 | any such transaction; | ||||||
16 | (4) engaging in any activity for which a person | ||||||
17 | engaged in the activity is required to be registered or | ||||||
18 | licensed as a real estate agent or real estate broker | ||||||
19 | under any applicable law; or | ||||||
20 | (5) offering to engage in any activity, or act in | ||||||
21 | any capacity, described in this subsection (ss). | ||||||
22 | (tt) "Registered mortgage loan originator" means any | ||||||
23 | individual that: | ||||||
24 | (1) meets the definition of mortgage loan | ||||||
25 | originator and is an employee of: | ||||||
26 | (A) a depository institution; |
| |||||||
| |||||||
1 | (B) a subsidiary that is: | ||||||
2 | (i) owned and controlled by a depository | ||||||
3 | institution; and | ||||||
4 | (ii) regulated by a federal banking | ||||||
5 | agency; or | ||||||
6 | (C) an institution regulated by the Farm | ||||||
7 | Credit Administration; and | ||||||
8 | (2) is registered with, and maintains a unique | ||||||
9 | identifier through, the Nationwide Multistate Mortgage | ||||||
10 | Licensing System and Registry. | ||||||
11 | (uu) "Unique identifier" means a number or other | ||||||
12 | identifier assigned by protocols established by the | ||||||
13 | Nationwide Multistate Mortgage Licensing System and | ||||||
14 | Registry. | ||||||
15 | (vv) "Residential mortgage license" means a license | ||||||
16 | issued pursuant to Section 1-3, 2-2, or 2-6 of this Act. | ||||||
17 | (ww) "Mortgage loan originator license" means a | ||||||
18 | license issued pursuant to Section 7-1A, 7-3, or 7-6 of | ||||||
19 | this Act. | ||||||
20 | (xx) "Secretary" means the Secretary of the Department | ||||||
21 | of Financial and Professional Regulation, or a person | ||||||
22 | authorized by the Secretary or by this Act to act in the | ||||||
23 | Secretary's stead. | ||||||
24 | (yy) "Loan modification" means, for compensation or | ||||||
25 | gain, either directly or indirectly offering or | ||||||
26 | negotiating on behalf of a borrower or homeowner to adjust |
| |||||||
| |||||||
1 | the terms of a residential mortgage loan in a manner not | ||||||
2 | provided for in the original or previously modified | ||||||
3 | mortgage loan. | ||||||
4 | (zz) "Short sale facilitation" means, for compensation | ||||||
5 | or gain, either directly or indirectly offering or | ||||||
6 | negotiating on behalf of a borrower or homeowner to | ||||||
7 | facilitate the sale of residential real estate subject to | ||||||
8 | one or more residential mortgage loans or debts | ||||||
9 | constituting liens on the property in which the proceeds | ||||||
10 | from selling the residential real estate will fall short of | ||||||
11 | the amount owed and the lien holders are contacted to agree | ||||||
12 | to release their lien on the residential real estate and | ||||||
13 | accept less than the full amount owed on the debt. | ||||||
14 | (aaa) "Bona fide nonprofit organization" means an | ||||||
15 | organization that is described in Section 501(c)(3) of the | ||||||
16 | Internal Revenue Code, is exempt from federal income tax | ||||||
17 | under Section 501(a) of the Internal Revenue Code, does not | ||||||
18 | operate in a commercial context, and does all of the | ||||||
19 | following: | ||||||
20 | (1) Promotes affordable housing or provides home | ||||||
21 | ownership education or similar services. | ||||||
22 | (2) Conducts its activities in a manner that serves | ||||||
23 | public or charitable purposes. | ||||||
24 | (3) Receives funding and revenue and charges fees | ||||||
25 | in a manner that does not create an incentive for | ||||||
26 | itself or its employees to act other than in the best |
| |||||||
| |||||||
1 | interests of its clients. | ||||||
2 | (4) Compensates its employees in a manner that does | ||||||
3 | not create an incentive for its employees to act other | ||||||
4 | than in the best interests of its clients. | ||||||
5 | (5) Provides to, or identifies for, the borrower | ||||||
6 | residential mortgage loans with terms favorable to the | ||||||
7 | borrower and comparable to residential mortgage loans | ||||||
8 | and housing assistance provided under government | ||||||
9 | housing assistance programs. | ||||||
10 | The Commissioner may define by rule and regulation any | ||||||
11 | terms used
in this Act for the efficient and clear | ||||||
12 | administration of this Act. | ||||||
13 | (Source: P.A. 98-749, eff. 7-16-14; 98-1081, eff. 1-1-15; | ||||||
14 | 99-78, eff. 7-20-15.)
| ||||||
15 | (205 ILCS 635/2-2)
| ||||||
16 | Sec. 2-2. Application process; investigation; fee.
| ||||||
17 | (a) The Secretary shall issue a license upon completion of | ||||||
18 | all of the
following:
| ||||||
19 | (1) The filing of an application for license with the | ||||||
20 | Director or the Nationwide Multistate Mortgage Licensing | ||||||
21 | System and Registry as approved by the Director.
| ||||||
22 | (2) The filing with the Secretary of a listing of | ||||||
23 | judgments entered
against, and bankruptcy petitions by, | ||||||
24 | the license applicant for the
preceding 10 years.
| ||||||
25 | (3) The payment, in certified funds, of
investigation |
| |||||||
| |||||||
1 | and application fees, the total of which shall be in an
| ||||||
2 | amount equal to $2,700 annually.
| ||||||
3 | (4) Except for a broker applying to renew a license, | ||||||
4 | the filing of an
audited balance sheet including all | ||||||
5 | footnotes prepared by a certified public
accountant in | ||||||
6 | accordance with generally accepted accounting principles | ||||||
7 | and
generally accepted auditing standards which evidences | ||||||
8 | that the applicant meets
the net worth requirements of | ||||||
9 | Section 3-5. Notwithstanding the requirements of this | ||||||
10 | subsection, an applicant that is a subsidiary may submit | ||||||
11 | audited consolidated financial statements of its parent, | ||||||
12 | intermediary parent, or ultimate parent as long as the | ||||||
13 | consolidated statements are supported by consolidating | ||||||
14 | statements which include the applicant's financial | ||||||
15 | statement. If the consolidating statements are unaudited, | ||||||
16 | the applicant's chief financial officer shall attest to the | ||||||
17 | applicant's financial statements disclosed in the | ||||||
18 | consolidating statements.
| ||||||
19 | (5) The filing of proof satisfactory to the Secretary | ||||||
20 | Commissioner that the
applicant, the members thereof if the | ||||||
21 | applicant is a partnership or
association, the members or | ||||||
22 | managers thereof that retain any authority or
| ||||||
23 | responsibility under the operating agreement if the | ||||||
24 | applicant is a limited
liability company, or the officers | ||||||
25 | thereof if the applicant
is a corporation have 3 years | ||||||
26 | experience preceding application
in real estate finance. |
| |||||||
| |||||||
1 | Instead of this requirement, the applicant and the
| ||||||
2 | applicant's officers or members, as applicable, may
| ||||||
3 | satisfactorily complete a program of education in real | ||||||
4 | estate finance and
fair lending, as
approved by the | ||||||
5 | Secretary Commissioner , prior to receiving the
initial | ||||||
6 | license.
The Secretary Commissioner shall adopt promulgate | ||||||
7 | rules regarding proof of experience
requirements and | ||||||
8 | educational requirements and the satisfactory completion | ||||||
9 | of
those requirements. The Secretary Commissioner may | ||||||
10 | establish by rule a list of duly
licensed professionals and | ||||||
11 | others who may be exempt from this requirement.
| ||||||
12 | (6) An investigation of the application averments | ||||||
13 | required by Section 2-4 , which
investigation must allow the | ||||||
14 | Secretary Commissioner to issue positive findings stating
| ||||||
15 | that the financial responsibility, experience, character, | ||||||
16 | and general fitness
of the license applicant and of the | ||||||
17 | members thereof if the license applicant is
a partnership | ||||||
18 | or association, of the officers and directors thereof if | ||||||
19 | the
license applicant is a corporation, and of the managers | ||||||
20 | and members that retain
any authority or responsibility | ||||||
21 | under the operating agreement if the license
applicant is a | ||||||
22 | limited liability company are such as to command the | ||||||
23 | confidence
of the community and to warrant belief that the | ||||||
24 | business will be operated
honestly, fairly and efficiently | ||||||
25 | within the purpose of this Act. If the Secretary
| ||||||
26 | Commissioner shall not so find, he or she shall not issue |
| |||||||
| |||||||
1 | such license, and he
or she shall notify the license | ||||||
2 | applicant of the denial. | ||||||
3 | The Secretary Commissioner may impose conditions on a | ||||||
4 | license if the Secretary Commissioner determines that the | ||||||
5 | conditions are necessary or appropriate. These conditions | ||||||
6 | shall be imposed in writing and shall continue in effect for | ||||||
7 | the period prescribed by the Secretary Commissioner .
| ||||||
8 | (b) All licenses shall be issued to the license applicant.
| ||||||
9 | Upon receipt of such license, a residential mortgage | ||||||
10 | licensee shall be
authorized to engage in the business | ||||||
11 | regulated by this Act. Such license
shall remain in full force | ||||||
12 | and effect until it expires without renewal, is
surrendered by | ||||||
13 | the licensee or revoked or suspended as hereinafter provided.
| ||||||
14 | (Source: P.A. 98-1081, eff. 1-1-15; 99-15, eff. 1-1-16 .)
| ||||||
15 | (205 ILCS 635/2-3) (from Ch. 17, par. 2322-3)
| ||||||
16 | Sec. 2-3. Application form.
| ||||||
17 | (a) Application for a residential mortgage license must be | ||||||
18 | made in
accordance with Section 2-6 and, if applicable, in | ||||||
19 | accordance with requirements of the Nationwide Multistate | ||||||
20 | Mortgage Licensing System and Registry. The application shall | ||||||
21 | be in writing, under oath,
and on a form obtained from and | ||||||
22 | prescribed by the Commissioner, or may be submitted | ||||||
23 | electronically, with attestation, to the Nationwide Multistate | ||||||
24 | Mortgage Licensing System and Registry.
| ||||||
25 | (b) The application shall contain the name and complete |
| |||||||
| |||||||
1 | business and
residential address or addresses of the license | ||||||
2 | applicant. If the license
applicant is a partnership, | ||||||
3 | association, corporation or other form of
business | ||||||
4 | organization, the application shall contain the names and | ||||||
5 | complete
business and residential addresses of each member, | ||||||
6 | director and principal
officer thereof. Such application shall | ||||||
7 | also include a description of the
activities of the license | ||||||
8 | applicant, in such detail and for such periods,
as the | ||||||
9 | Commissioner may require, including all of the following:
| ||||||
10 | (1) An affirmation of financial solvency noting such | ||||||
11 | capitalization
requirements as may be required by the | ||||||
12 | Commissioner, and access to such
credit as may be required | ||||||
13 | by the Commissioner.
| ||||||
14 | (2) An affirmation that the license applicant or its | ||||||
15 | members, directors or
principals as may be appropriate, are | ||||||
16 | at least 18 years of age.
| ||||||
17 | (3) Information as to the character, fitness, | ||||||
18 | financial and business
responsibility, background, | ||||||
19 | experience, and criminal record of any
(i) person, entity, | ||||||
20 | or ultimate equitable owner that owns or controls,
directly | ||||||
21 | or indirectly, 10% or more of any class of stock of the | ||||||
22 | license
applicant; (ii) person, entity, or ultimate | ||||||
23 | equitable owner that is not a
depository institution, as | ||||||
24 | defined in Section 1007.50 of the Savings Bank
Act, that | ||||||
25 | lends, provides, or infuses, directly or indirectly, in any | ||||||
26 | way,
funds to or into a license applicant, in an amount |
| |||||||
| |||||||
1 | equal to or more than 10% of
the license applicant's net | ||||||
2 | worth; (iii) person, entity, or ultimate equitable
owner | ||||||
3 | that controls, directly or indirectly, the election of 25% | ||||||
4 | or more of the
members of the board of directors of a | ||||||
5 | license applicant; or (iv) person,
entity, or ultimate | ||||||
6 | equitable owner that the Commissioner finds influences
| ||||||
7 | management of the license applicant.
| ||||||
8 | (4) Upon written request by the licensee and | ||||||
9 | notwithstanding the
provisions of paragraphs (1), (2), and | ||||||
10 | (3) of this subsection, the Commissioner
may permit the | ||||||
11 | licensee to omit all or part of the information required by
| ||||||
12 | those paragraphs if, in lieu of the omitted information, | ||||||
13 | the licensee submits
an affidavit stating that the | ||||||
14 | information submitted on the licensee's previous
renewal | ||||||
15 | application is still true and accurate. The Commissioner | ||||||
16 | may
promulgate rules prescribing the form and content of | ||||||
17 | the affidavit that are
necessary to accomplish the purposes | ||||||
18 | of this Section.
| ||||||
19 | (5) Such other information as required by regulations | ||||||
20 | of the
Commissioner.
| ||||||
21 | (Source: P.A. 96-112, eff. 7-31-09.)
| ||||||
22 | (205 ILCS 635/2-3A) | ||||||
23 | Sec. 2-3A. Residential mortgage license application and | ||||||
24 | issuance. | ||||||
25 | (a) Applicants for a license shall apply in a form |
| |||||||
| |||||||
1 | prescribed by the Director. Each form shall contain content as | ||||||
2 | set forth by rule, regulation, instruction, or procedure of the | ||||||
3 | Director and may be changed or updated as necessary by the | ||||||
4 | Director in order to carry out the purposes of this Act. | ||||||
5 | (b) In order to fulfill the purposes of this Act, the | ||||||
6 | Director is authorized to establish relationships or contracts | ||||||
7 | with the Nationwide Multistate Mortgage Licensing System and | ||||||
8 | Registry or other entities designated by the Nationwide | ||||||
9 | Multistate Mortgage Licensing System and Registry to collect | ||||||
10 | and maintain records and process transaction fees or other fees | ||||||
11 | related to licensees or other persons subject to this Act. | ||||||
12 | (c) In connection with an application for licensing, the | ||||||
13 | applicant may be required, at a minimum, to furnish to the | ||||||
14 | Nationwide Multistate Mortgage Licensing System and Registry | ||||||
15 | information concerning the applicant's identity, including: | ||||||
16 | (1) fingerprints for submission to the Federal Bureau | ||||||
17 | of Investigation or any governmental agency or entity | ||||||
18 | authorized to receive such information for a State, | ||||||
19 | national, and international criminal history background | ||||||
20 | check; and | ||||||
21 | (2) personal history and experience in a form
| ||||||
22 | prescribed by the Nationwide Multistate Mortgage Licensing | ||||||
23 | System and Registry, including the submission of | ||||||
24 | authorization for the Nationwide Multistate Mortgage | ||||||
25 | Licensing System and Registry and the Director to obtain: | ||||||
26 | (A) an independent credit report obtained from a
|
| |||||||
| |||||||
1 | consumer reporting agency described in Section 603(p) | ||||||
2 | of the Fair Credit Reporting Act (15 U.S.C. 1681a(p)); | ||||||
3 | and | ||||||
4 | (B) information related to any administrative,
| ||||||
5 | civil, or criminal findings by any governmental | ||||||
6 | jurisdiction. | ||||||
7 | (d) For the purposes of this Section, and in order to | ||||||
8 | reduce the points of contact that the Federal Bureau of | ||||||
9 | Investigation may have to maintain for purposes of subsection | ||||||
10 | (c) of this Section, the Director may use the Nationwide | ||||||
11 | Multistate Mortgage Licensing System and Registry as a | ||||||
12 | channeling agent for requesting information from and | ||||||
13 | distributing information to the Department of Justice or any | ||||||
14 | governmental agency. | ||||||
15 | (e) For the purposes of this Section, and in order to | ||||||
16 | reduce the points of contact that the Director may have to | ||||||
17 | maintain for purposes of item (2) of subsection (c) of this | ||||||
18 | Section, the Director may use the Nationwide Multistate | ||||||
19 | Mortgage Licensing System and Registry as a channeling agent | ||||||
20 | for requesting and distributing information to and from any | ||||||
21 | source so directed by the Director.
| ||||||
22 | (Source: P.A. 97-891, eff. 8-3-12.)
| ||||||
23 | (205 ILCS 635/2-4) (from Ch. 17, par. 2322-4)
| ||||||
24 | Sec. 2-4. Prohibited acts and practices for licensees. | ||||||
25 | Averments of Licensee. It is a violation of this Act for a |
| |||||||
| |||||||
1 | licensee subject to this Act to Each application for license | ||||||
2 | shall be accompanied by the following averments stating
that | ||||||
3 | the applicant :
| ||||||
4 | (a) fail to Will maintain at least one full service | ||||||
5 | office within the
State of Illinois if required to do so | ||||||
6 | pursuant to Section 3-4 of this Act;
| ||||||
7 | (b) fail to Will maintain staff reasonably adequate to | ||||||
8 | meet the requirements of
Section 3-4 of this Act;
| ||||||
9 | (c) fail to Will keep and maintain for 36 months the | ||||||
10 | same written records
as required by the federal Equal | ||||||
11 | Credit Opportunity Act, and any other
information required | ||||||
12 | by regulations of the Secretary Commissioner regarding any | ||||||
13 | home
mortgage in the course of the conduct of its | ||||||
14 | residential mortgage business;
| ||||||
15 | (d) fail to Will file with the Secretary Commissioner | ||||||
16 | or Nationwide Multistate Mortgage Licensing System and | ||||||
17 | Registry as applicable, when due, any report or reports
| ||||||
18 | which it is required to file under any of the provisions of | ||||||
19 | this Act;
| ||||||
20 | (e) engage Will not engage , whether as principal or | ||||||
21 | agent, in the practice of
rejecting residential mortgage | ||||||
22 | applications without reasonable cause, or
varying terms or | ||||||
23 | application procedures without reasonable cause, for home
| ||||||
24 | mortgages on real estate within any specific geographic | ||||||
25 | area from the terms
or procedures generally provided by the | ||||||
26 | licensee within other geographic
areas of the State;
|
| |||||||
| |||||||
1 | (f) engage Will not engage in fraudulent home mortgage | ||||||
2 | underwriting practices;
| ||||||
3 | (g) make Will not make payment, whether directly or | ||||||
4 | indirectly, of any kind
to any in house or fee appraiser of | ||||||
5 | any government or private money lending
agency with which | ||||||
6 | an application for a home mortgage has been filed for the
| ||||||
7 | purpose of influencing the independent judgment of the | ||||||
8 | appraiser with respect
to the value of any real estate | ||||||
9 | which is to be covered by such home mortgage;
| ||||||
10 | (h) fail to file Has filed tax returns (State and | ||||||
11 | Federal) for the past 3
years or filed with the Secretary | ||||||
12 | Commissioner an accountant's or attorney's
statement as to | ||||||
13 | why no return was filed;
| ||||||
14 | (i) engage Will not engage in any discrimination or | ||||||
15 | redlining activities
prohibited by Section 3-8 of this Act;
| ||||||
16 | (j) knowingly Will not knowingly make any false | ||||||
17 | promises likely to influence or
persuade, or pursue a | ||||||
18 | course of misrepresentation and false promises
through | ||||||
19 | agents, solicitors, advertising or otherwise;
| ||||||
20 | (k) knowingly Will not knowingly misrepresent, | ||||||
21 | circumvent or conceal, through
whatever subterfuge or | ||||||
22 | device, any of the material particulars or the
nature | ||||||
23 | thereof, regarding a transaction to which it is a party to | ||||||
24 | the
injury of another party thereto;
| ||||||
25 | (l) fail to Will disburse funds in accordance with its | ||||||
26 | agreements;
|
| |||||||
| |||||||
1 | (m) commit Has not committed a crime against the law of | ||||||
2 | this State, any other
state or of the United States, | ||||||
3 | involving moral turpitude, fraudulent or
dishonest | ||||||
4 | dealing, and that no final judgment has been entered | ||||||
5 | against it in
a civil action upon grounds of fraud, | ||||||
6 | misrepresentation or deceit which has
not been previously | ||||||
7 | reported to the Secretary Commissioner ;
| ||||||
8 | (n) fail to Will account or deliver to the owner upon | ||||||
9 | request any personal property such as
money, fund, deposit, | ||||||
10 | check, draft, mortgage, other document or thing of
value | ||||||
11 | which it is not in law or equity entitled to retain under | ||||||
12 | the
circumstances;
| ||||||
13 | (o) engage Has not engaged in any conduct which would | ||||||
14 | be cause for denial of a
license;
| ||||||
15 | (p) become Has not become insolvent;
| ||||||
16 | (q) submit Has not submitted an application for a | ||||||
17 | license under this Act which
contains a material | ||||||
18 | misstatement;
| ||||||
19 | (r) demonstrate Has not demonstrated by course of | ||||||
20 | conduct, negligence or incompetence
in performing any act | ||||||
21 | for which it is required to hold a license under this
Act;
| ||||||
22 | (s) fail to Will advise the Secretary Commissioner in | ||||||
23 | writing, or the Nationwide Multistate Mortgage Licensing | ||||||
24 | System and Registry , as applicable, of any changes to the
| ||||||
25 | information submitted on the most recent application for | ||||||
26 | license or averments of record within 30
days of said |
| |||||||
| |||||||
1 | change. The written notice must be signed in the same form | ||||||
2 | as
the application for license being amended;
| ||||||
3 | (t) fail to Will comply with the provisions of this | ||||||
4 | Act, or with any lawful
order, rule or regulation made or | ||||||
5 | issued under the provisions of this Act;
| ||||||
6 | (u) fail to Will submit to periodic examination by the | ||||||
7 | Secretary Commissioner as required
by this Act;
| ||||||
8 | (v) fail to Will advise the Secretary Commissioner in | ||||||
9 | writing of judgments entered
against, and bankruptcy | ||||||
10 | petitions by, the license applicant within 5
days of | ||||||
11 | occurrence;
| ||||||
12 | (w) fail to Will advise the Secretary Commissioner in | ||||||
13 | writing within 30 days of any request made to a licensee | ||||||
14 | under this Act to repurchase a loan in a manner that | ||||||
15 | completely and clearly identifies to whom the request was | ||||||
16 | made, the loans involved, and the reason therefor;
| ||||||
17 | (x) fail to Will advise the Secretary Commissioner in | ||||||
18 | writing within 30 days of any request from any entity to | ||||||
19 | repurchase a loan in a manner that completely and clearly | ||||||
20 | identifies to whom the request was made, the loans | ||||||
21 | involved, and the reason for the request;
| ||||||
22 | (y) fail to Will at all times act in a manner | ||||||
23 | consistent with subsections (a) and
(b) of Section 1-2 of | ||||||
24 | this Act;
| ||||||
25 | (z) knowingly Will not knowingly hire or employ a loan | ||||||
26 | originator who is
not registered, or mortgage loan |
| |||||||
| |||||||
1 | originator who is not licensed , with the Secretary | ||||||
2 | Commissioner as required under Section 7-1 or Section 7-1A , | ||||||
3 | as applicable, of this Act;
| ||||||
4 | (aa) charge Will not charge or collect advance payments | ||||||
5 | from borrowers or homeowners for engaging in loan | ||||||
6 | modification; or and | ||||||
7 | (bb) structure Will not structure activities or | ||||||
8 | contracts to evade provisions of this Act. | ||||||
9 | A licensee who fails to fulfill obligations of an averment, | ||||||
10 | to comply with this Section
averments made, or otherwise | ||||||
11 | violates any of the provisions of averments made under this
| ||||||
12 | Section shall be subject to the penalties in Section 4-5 of | ||||||
13 | this Act.
| ||||||
14 | (Source: P.A. 97-891, eff. 8-3-12; 98-1081, eff. 1-1-15 .)
| ||||||
15 | (205 ILCS 635/2-6)
| ||||||
16 | Sec. 2-6. License issuance and renewal; fee.
| ||||||
17 | (a) Licenses shall be renewed every year using the common | ||||||
18 | renewal date of the Nationwide Multistate Mortgage Licensing | ||||||
19 | System and Registry as adopted by the Director.
Properly | ||||||
20 | completed renewal application forms and filing fees may be | ||||||
21 | received
by the Secretary 60 days prior to the license | ||||||
22 | expiration date, but, to be deemed timely, the completed | ||||||
23 | renewal application forms and filing fees must be received by | ||||||
24 | the Secretary no later than 30 days prior to the license | ||||||
25 | expiration date.
|
| |||||||
| |||||||
1 | (b) It shall be the responsibility of each licensee to | ||||||
2 | accomplish renewal
of its license. Failure by a licensee to | ||||||
3 | submit a properly completed
renewal application form and fees | ||||||
4 | in a timely fashion, absent a written
extension from the | ||||||
5 | Secretary, will result in the license becoming inactive.
| ||||||
6 | (c) No activity regulated by this Act
shall be conducted by | ||||||
7 | the licensee when a license becomes inactive. The Commissioner | ||||||
8 | may require the licensee to provide a plan for the disposition | ||||||
9 | of any residential mortgage loans not closed or funded when the | ||||||
10 | license becomes inactive. The Commissioner may allow a licensee | ||||||
11 | with an inactive license to conduct activities regulated by | ||||||
12 | this Act for the sole purpose of assisting borrowers in the | ||||||
13 | closing or funding of loans for which the loan application was | ||||||
14 | taken from a borrower while the license was active. An
inactive | ||||||
15 | license may be reactivated by the Commissioner upon payment of | ||||||
16 | the renewal fee, and payment
of a reactivation fee equal to the | ||||||
17 | renewal fee.
| ||||||
18 | (d) (Blank).
| ||||||
19 | (e) A licensee ceasing an activity or activities regulated | ||||||
20 | by this Act
and desiring to no longer be licensed shall so | ||||||
21 | inform the Commissioner in
writing and, at the same time, | ||||||
22 | convey any license issued and all other symbols or
indicia of | ||||||
23 | licensure. The licensee shall include a plan for the withdrawal
| ||||||
24 | from regulated business, including a timetable for the | ||||||
25 | disposition of the
business, and comply with the surrender | ||||||
26 | guidelines or requirements of the Director. Upon receipt of |
| |||||||
| |||||||
1 | such written notice, the Commissioner shall post the | ||||||
2 | cancellation or issue
a certified statement canceling the | ||||||
3 | license.
| ||||||
4 | (Source: P.A. 99-15, eff. 1-1-16 .)
| ||||||
5 | (205 ILCS 635/3-2) (from Ch. 17, par. 2323-2)
| ||||||
6 | Sec. 3-2. Annual audit.
| ||||||
7 | (a) At the licensee's fiscal year-end, but in no
case more | ||||||
8 | than 12 months after the last audit conducted pursuant to this
| ||||||
9 | Section, except as otherwise provided in this Section, it shall | ||||||
10 | be
mandatory for each residential mortgage licensee to
cause | ||||||
11 | its books and accounts to be audited by a certified public | ||||||
12 | accountant
not connected with such licensee. The books and | ||||||
13 | records of all licensees
under this Act shall be maintained on | ||||||
14 | an accrual basis. The audit must be
sufficiently comprehensive | ||||||
15 | in scope to permit
the expression of an opinion on the | ||||||
16 | financial statements, which must be
prepared in accordance with | ||||||
17 | generally accepted accounting principles, and
must be | ||||||
18 | performed in accordance with generally accepted auditing | ||||||
19 | standards. Notwithstanding
the requirements of this | ||||||
20 | subsection, a licensee that is a subsidiary
may submit audited | ||||||
21 | consolidated financial statements of its parent, intermediary | ||||||
22 | parent, or ultimate parent as long as
the consolidated | ||||||
23 | statements are supported by consolidating statements which | ||||||
24 | include the licensee's financial statement. If the | ||||||
25 | consolidating statements are unaudited, the
licensee's chief |
| |||||||
| |||||||
1 | financial officer shall attest to the licensee's financial
| ||||||
2 | statements disclosed in the consolidating statements.
| ||||||
3 | (b) As used herein, the term "expression of opinion" | ||||||
4 | includes either
(1) an unqualified opinion, (2) a qualified | ||||||
5 | opinion, (3) a disclaimer of
opinion, or (4) an adverse | ||||||
6 | opinion.
| ||||||
7 | (c) If a qualified or adverse opinion is expressed or if an | ||||||
8 | opinion is
disclaimed, the reasons therefore must be fully | ||||||
9 | explained. An opinion,
qualified as to a scope limitation, | ||||||
10 | shall not be acceptable.
| ||||||
11 | (d) The most recent audit report shall be filed with the
| ||||||
12 | Commissioner within 90 days after the end of the licensee's | ||||||
13 | fiscal year, or with the Nationwide Multistate Mortgage | ||||||
14 | Licensing System and Registry, if applicable, pursuant to | ||||||
15 | Mortgage Call Report requirements. The report
filed with the | ||||||
16 | Commissioner shall be certified by the certified public
| ||||||
17 | accountant conducting the audit. The Commissioner may | ||||||
18 | promulgate rules
regarding late audit reports.
| ||||||
19 | (e) (Blank).
| ||||||
20 | (f) In lieu of the audit or compilation financial statement
| ||||||
21 | required by this Section, a licensee shall submit and the | ||||||
22 | Commissioner may
accept any audit made in conformance with the | ||||||
23 | audit
requirements of the U.S. Department of Housing and Urban | ||||||
24 | Development.
| ||||||
25 | (g) With respect to licensees who solely broker residential | ||||||
26 | mortgage
loans as defined in subsection (o) of Section 1-4, |
| |||||||
| |||||||
1 | instead of the audit
required by this Section, the Commissioner | ||||||
2 | may
accept
compilation financial statements prepared at least | ||||||
3 | every 12 months, and
the compilation financial statement must | ||||||
4 | be submitted within 90 days after the end of
the licensee's | ||||||
5 | fiscal year, or with the Nationwide Multistate Mortgage | ||||||
6 | Licensing System and Registry, if applicable, pursuant to | ||||||
7 | Mortgage Call Report requirements. A licensee who
files false | ||||||
8 | or misleading compilation financial statements is guilty of a
| ||||||
9 | business offense and shall be fined not less than $5,000.
| ||||||
10 | (h) The workpapers of the certified public accountants | ||||||
11 | employed
by each
licensee for purposes of this Section are to | ||||||
12 | be made available to the
Commissioner or the Commissioner's | ||||||
13 | designee upon request and may be
reproduced by the Commissioner | ||||||
14 | or the Commissioner's designee to enable to
the Commissioner to | ||||||
15 | carry out the purposes of this Act.
| ||||||
16 | (i) Notwithstanding any other provision of this Section, if | ||||||
17 | a licensee
relying on subsection (g) of this Section causes its | ||||||
18 | books to be audited at any
other time or causes its financial | ||||||
19 | statements to be reviewed, a complete copy
of the audited or | ||||||
20 | reviewed financial statements shall be delivered to the
| ||||||
21 | Commissioner at the time of the annual license renewal payment | ||||||
22 | following
receipt by the licensee of the audited or reviewed | ||||||
23 | financial statements. All workpapers shall be made available to | ||||||
24 | the
Commissioner upon request. The financial statements and | ||||||
25 | workpapers may be
reproduced by the Commissioner or the | ||||||
26 | Commissioner's designee to carry out the
purposes of this Act.
|
| |||||||
| |||||||
1 | (Source: P.A. 98-463, eff. 8-16-13; 98-1081, eff. 1-1-15; | ||||||
2 | 99-933, eff. 1-27-17.)
| ||||||
3 | (205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| ||||||
4 | Sec. 4-1. Commissioner of Banks and Real Estate; functions, | ||||||
5 | powers, and duties. The functions,
powers, and duties of the | ||||||
6 | Commissioner of Banks and Real Estate shall include the | ||||||
7 | following:
| ||||||
8 | (a) to issue or refuse to issue any license as provided | ||||||
9 | by this Act;
| ||||||
10 | (b) to revoke or suspend for cause any license issued | ||||||
11 | under this Act;
| ||||||
12 | (c) to keep records of all licenses issued under this | ||||||
13 | Act;
| ||||||
14 | (d) to receive, consider, investigate, and act upon | ||||||
15 | complaints made by
any person in connection with any | ||||||
16 | residential mortgage licensee in this State;
| ||||||
17 | (e) to consider and act upon any recommendations from | ||||||
18 | the Residential
Mortgage Board;
| ||||||
19 | (f) to prescribe the forms of and receive:
| ||||||
20 | (1) applications for licenses; and
| ||||||
21 | (2) all reports and all books and records required | ||||||
22 | to be made by
any licensee under this Act, including | ||||||
23 | annual audited financial statements
and annual reports | ||||||
24 | of mortgage activity;
| ||||||
25 | (g) to adopt rules and regulations necessary and proper |
| |||||||
| |||||||
1 | for the
administration of this Act;
| ||||||
2 | (h) to subpoena documents and witnesses and compel | ||||||
3 | their attendance and
production, to administer oaths, and | ||||||
4 | to require the production of any books,
papers, or other | ||||||
5 | materials relevant to any inquiry authorized by this Act;
| ||||||
6 | (h-1) to issue orders against any person, if the | ||||||
7 | Commissioner has reasonable cause to believe that an | ||||||
8 | unsafe, unsound, or unlawful practice has occurred, is | ||||||
9 | occurring, or is about to occur, if any person has | ||||||
10 | violated, is violating, or is about to violate any law, | ||||||
11 | rule, or written agreement with the Commissioner, or for | ||||||
12 | the purpose of administering the provisions of this Act and | ||||||
13 | any rule adopted in accordance with the Act; | ||||||
14 | (h-2) to address any inquiries to any licensee, or the | ||||||
15 | officers thereof, in relation to its activities and | ||||||
16 | conditions, or any other matter connected with its affairs, | ||||||
17 | and it shall be the duty of any licensee or person so | ||||||
18 | addressed, to promptly reply in writing to such inquiries. | ||||||
19 | The Commissioner may also require reports from any licensee | ||||||
20 | at any time the Commissioner may deem desirable;
| ||||||
21 | (i) to require information with regard to any license | ||||||
22 | applicant
as he or she may deem desirable, with due regard | ||||||
23 | to the paramount interests
of the public as to the | ||||||
24 | experience, background, honesty, truthfulness,
integrity, | ||||||
25 | and competency of the license applicant as to financial
| ||||||
26 | transactions involving primary or subordinate mortgage |
| |||||||
| |||||||
1 | financing, and where
the license applicant is an entity | ||||||
2 | other than an individual, as to the
honesty, truthfulness, | ||||||
3 | integrity, and competency of any officer or director
of the | ||||||
4 | corporation, association, or other entity, or the members | ||||||
5 | of a
partnership;
| ||||||
6 | (j) to examine the books and records of every licensee | ||||||
7 | under this Act at
intervals as specified in Section 4-2;
| ||||||
8 | (k) to enforce provisions of this Act;
| ||||||
9 | (l) to levy fees, fines, and charges for services | ||||||
10 | performed in administering
this Act; the aggregate of all | ||||||
11 | fees collected by the Commissioner on and after
the | ||||||
12 | effective date of this Act shall be paid promptly after | ||||||
13 | receipt of the
same, accompanied by a detailed statement | ||||||
14 | thereof, into the
Residential Finance Regulatory Fund | ||||||
15 | under Section 4-1.5 of this Act; the amounts deposited into | ||||||
16 | that Fund shall
be used for the ordinary and contingent | ||||||
17 | expenses of the Office of Banks and
Real Estate. Nothing in | ||||||
18 | this Act shall prevent continuing the practice of paying
| ||||||
19 | expenses involving salaries, retirement, social security, | ||||||
20 | and State-paid
insurance of State officers by | ||||||
21 | appropriation from the General Revenue Fund.
| ||||||
22 | (m) to appoint examiners, supervisors, experts, and | ||||||
23 | special assistants as
needed to effectively and | ||||||
24 | efficiently administer this Act;
| ||||||
25 | (n) to conduct hearings for the purpose of:
| ||||||
26 | (1) appeals of orders of the Commissioner;
|
| |||||||
| |||||||
1 | (2) suspensions or revocations of licenses, or | ||||||
2 | fining of licensees;
| ||||||
3 | (3) investigating:
| ||||||
4 | (i) complaints against licensees; or
| ||||||
5 | (ii) annual gross delinquency rates; and
| ||||||
6 | (4) carrying out the purposes of this Act;
| ||||||
7 | (o) to exercise exclusive visitorial power over a | ||||||
8 | licensee unless otherwise authorized by this Act or as | ||||||
9 | vested in the courts, or upon prior consultation with the | ||||||
10 | Commissioner, a foreign residential mortgage regulator | ||||||
11 | with an appropriate supervisory interest in the parent or | ||||||
12 | affiliate of a licensee;
| ||||||
13 | (p) to enter into cooperative agreements with state | ||||||
14 | regulatory authorities of other states to provide for | ||||||
15 | examination of corporate offices or branches of those | ||||||
16 | states and to accept reports of such examinations;
| ||||||
17 | (q) to assign an examiner or examiners to monitor the | ||||||
18 | affairs of a licensee with whatever frequency the | ||||||
19 | Commissioner determines appropriate and to charge the | ||||||
20 | licensee for reasonable and necessary expenses of the | ||||||
21 | Commissioner, if in the opinion of the Commissioner an | ||||||
22 | emergency exists or appears likely to occur;
| ||||||
23 | (r) to impose civil penalties of up to $50 per day | ||||||
24 | against a licensee for failing to respond to a regulatory | ||||||
25 | request or reporting requirement; and
| ||||||
26 | (s) to enter into agreements in connection with the |
| |||||||
| |||||||
1 | Nationwide Multistate Mortgage Licensing System and | ||||||
2 | Registry. | ||||||
3 | (Source: P.A. 98-1081, eff. 1-1-15 .)
| ||||||
4 | (205 ILCS 635/4-5) (from Ch. 17, par. 2324-5)
| ||||||
5 | Sec. 4-5. Suspension, revocation of licenses; fines.
| ||||||
6 | (a) Upon written notice to a licensee, the Commissioner may | ||||||
7 | suspend
or revoke any license issued pursuant to this Act if he | ||||||
8 | or she shall make a
finding of one or more of the following in | ||||||
9 | the notice that:
| ||||||
10 | (1) Through separate acts or an act or a course of | ||||||
11 | conduct, the licensee
has violated any provisions of this | ||||||
12 | Act, any rule or regulation
promulgated by the Commissioner | ||||||
13 | or of any other law, rule or regulation of
this State or | ||||||
14 | the United States.
| ||||||
15 | (2) Any fact or condition exists which, if it had | ||||||
16 | existed at the time of
the original application for such | ||||||
17 | license would have warranted the
Commissioner in refusing | ||||||
18 | originally to issue such license.
| ||||||
19 | (3) If a licensee is other than an individual, any | ||||||
20 | ultimate
equitable owner, officer, director, or member of | ||||||
21 | the licensed partnership,
association, corporation, or | ||||||
22 | other entity has so acted or failed to act as
would be | ||||||
23 | cause for suspending or revoking a license to that party as | ||||||
24 | an
individual.
| ||||||
25 | (b) No license shall be suspended or revoked, except as |
| |||||||
| |||||||
1 | provided in this
Section, nor shall any licensee be fined | ||||||
2 | without notice of his or her right
to a hearing as provided in | ||||||
3 | Section 4-12 of this Act.
| ||||||
4 | (c) The Commissioner, on good cause shown that an emergency | ||||||
5 | exists, may
suspend any license for a period not
exceeding 180 | ||||||
6 | days, pending investigation. Upon a showing that a
licensee has | ||||||
7 | failed to meet the experience or educational requirements of
| ||||||
8 | Section 2-2 or the requirements of subsection (g) of Section | ||||||
9 | 3-2, the
Commissioner shall suspend, prior to hearing as | ||||||
10 | provided in Section 4-12, the
license until those requirements | ||||||
11 | have been met.
| ||||||
12 | (d) The provisions of subsection (e) of Section 2-6 of this | ||||||
13 | Act
shall not affect a licensee's civil or criminal liability
| ||||||
14 | for acts committed prior to surrender of a license.
| ||||||
15 | (e) No revocation, suspension or surrender of any license | ||||||
16 | shall impair
or affect the obligation of any pre-existing | ||||||
17 | lawful contract between the
licensee and any person.
| ||||||
18 | (f) Every license issued under this Act shall remain in | ||||||
19 | force and effect
until the same shall have expired without | ||||||
20 | renewal, have been surrendered,
revoked or suspended in | ||||||
21 | accordance with the provisions of this Act, but the
| ||||||
22 | Commissioner shall have authority to reinstate a suspended | ||||||
23 | license or to
issue a new license to a licensee whose license | ||||||
24 | shall have been revoked if
no fact or condition then exists | ||||||
25 | which would have warranted the
Commissioner in refusing | ||||||
26 | originally to issue such license under this Act.
|
| |||||||
| |||||||
1 | (g) Whenever the Commissioner shall revoke or suspend a | ||||||
2 | license issued
pursuant to this Act or fine a licensee under | ||||||
3 | this Act, he or she shall
forthwith execute a written order to | ||||||
4 | that effect. The
Commissioner shall post notice of the order on | ||||||
5 | an agency Internet site maintained by the Commissioner or on | ||||||
6 | the Nationwide Multistate Mortgage Licensing System and | ||||||
7 | Registry and shall forthwith serve a copy of such order upon | ||||||
8 | the
licensee. Any such order may be reviewed in the manner | ||||||
9 | provided by
Section 4-12 of this Act.
| ||||||
10 | (h) When the Commissioner finds any person in violation of | ||||||
11 | the grounds
set forth in subsection (i), he or she may enter an | ||||||
12 | order imposing one or
more of the following penalties:
| ||||||
13 | (1) Revocation of license;
| ||||||
14 | (2) Suspension of a license subject to reinstatement | ||||||
15 | upon satisfying all
reasonable conditions the Commissioner | ||||||
16 | may specify;
| ||||||
17 | (3) Placement of the licensee or applicant on probation | ||||||
18 | for a period of
time and subject to all reasonable | ||||||
19 | conditions as the Commissioner may specify;
| ||||||
20 | (4) Issuance of a reprimand;
| ||||||
21 | (5) Imposition of a fine not to exceed $25,000 for each
| ||||||
22 | count of
separate offense, provided that a fine may be | ||||||
23 | imposed not to exceed $75,000 for each separate count of | ||||||
24 | offense of paragraph (2) of subsection (i) of this Section; | ||||||
25 | and
| ||||||
26 | (6) Denial of a license.
|
| |||||||
| |||||||
1 | (i) The following acts shall constitute grounds for which | ||||||
2 | the
disciplinary actions specified in subsection (h) above may | ||||||
3 | be taken:
| ||||||
4 | (1) Being convicted or found guilty, regardless of | ||||||
5 | pendency of an
appeal, of a crime in any jurisdiction which | ||||||
6 | involves fraud, dishonest
dealing, or any other act of | ||||||
7 | moral turpitude;
| ||||||
8 | (2) Fraud, misrepresentation, deceit or negligence in | ||||||
9 | any mortgage
financing transaction;
| ||||||
10 | (3) A material or intentional misstatement of fact on | ||||||
11 | an initial or
renewal application;
| ||||||
12 | (4) Failure to follow the Commissioner's regulations | ||||||
13 | with respect to
placement of funds in escrow accounts;
| ||||||
14 | (5) Insolvency or filing under any provision of the | ||||||
15 | Bankruptcy Code
as a debtor;
| ||||||
16 | (6) Failure to account or deliver to any person any | ||||||
17 | property such as any
money, fund, deposit, check, draft, | ||||||
18 | mortgage, or other document or thing of
value, which has | ||||||
19 | come into his or her hands and which is not his or her
| ||||||
20 | property or which he or she is not in law or equity | ||||||
21 | entitled to retain,
under the circumstances and at the time | ||||||
22 | which has been agreed upon or is
required by law or, in the | ||||||
23 | absence of a fixed time, upon demand of the
person entitled | ||||||
24 | to such accounting and delivery;
| ||||||
25 | (7) Failure to disburse funds in accordance with | ||||||
26 | agreements;
|
| |||||||
| |||||||
1 | (8) Any misuse, misapplication, or misappropriation of | ||||||
2 | trust funds
or escrow funds;
| ||||||
3 | (9) Having a license, or the equivalent, to practice | ||||||
4 | any profession or
occupation revoked, suspended, or | ||||||
5 | otherwise acted against, including the
denial of licensure | ||||||
6 | by a licensing authority of this State or another
state, | ||||||
7 | territory or country for fraud, dishonest dealing or any | ||||||
8 | other act
of moral turpitude;
| ||||||
9 | (10) Failure to issue a satisfaction of mortgage when | ||||||
10 | the residential
mortgage has been executed and proceeds | ||||||
11 | were not disbursed to the benefit
of the mortgagor and when | ||||||
12 | the mortgagor has fully paid licensee's costs
and | ||||||
13 | commission;
| ||||||
14 | (11) Failure to comply with any order of the | ||||||
15 | Commissioner or rule made
or issued under the provisions of | ||||||
16 | this Act;
| ||||||
17 | (12) Engaging in activities regulated by this Act | ||||||
18 | without a current,
active license unless specifically | ||||||
19 | exempted by this Act;
| ||||||
20 | (13) Failure to pay in a timely manner any fee, charge | ||||||
21 | or fine under
this Act;
| ||||||
22 | (14) Failure to maintain, preserve, and keep available | ||||||
23 | for examination,
all books, accounts or other documents | ||||||
24 | required by the provisions of this
Act and the rules of the | ||||||
25 | Commissioner;
| ||||||
26 | (15) Refusing, obstructing, evading, or unreasonably |
| |||||||
| |||||||
1 | delaying an investigation, information request, or | ||||||
2 | examination authorized under this Act, or refusing, | ||||||
3 | obstructing, evading, or unreasonably delaying compliance | ||||||
4 | with the Director's subpoena or subpoena duces tecum;
| ||||||
5 | (16) A pattern of substantially underestimating the | ||||||
6 | maximum closing costs;
| ||||||
7 | (17) Failure to comply with or violation of any | ||||||
8 | provision of this Act; | ||||||
9 | (18) Failure to comply with or violation of any | ||||||
10 | provision of Article 3 of the Residential Real Property | ||||||
11 | Disclosure Act.
| ||||||
12 | (j) A licensee shall be subject to the disciplinary actions | ||||||
13 | specified in
this Act for violations of subsection (i) by any | ||||||
14 | officer, director,
shareholder, joint venture, partner, | ||||||
15 | ultimate equitable owner, or employee
of the licensee.
| ||||||
16 | (k) Such licensee shall be subject to suspension or | ||||||
17 | revocation for
unauthorized employee actions only if there is a | ||||||
18 | pattern of repeated violations by
employees or the licensee has | ||||||
19 | knowledge of the violations, or there is substantial harm to a | ||||||
20 | consumer.
| ||||||
21 | (l) Procedure for surrender of license:
| ||||||
22 | (1) The Commissioner may, after 10 days notice by | ||||||
23 | certified mail to the
licensee at the address set forth on | ||||||
24 | the license, stating the contemplated
action and in general | ||||||
25 | the grounds therefor and the date, time and place of
a | ||||||
26 | hearing thereon, and after providing the licensee with a |
| |||||||
| |||||||
1 | reasonable
opportunity to be heard prior to such action, | ||||||
2 | fine such licensee an amount
not exceeding $25,000
per | ||||||
3 | violation, or revoke or suspend any license
issued | ||||||
4 | hereunder if he or she finds that:
| ||||||
5 | (i) The licensee has failed to comply with any | ||||||
6 | provision of this Act or
any order, decision, finding, | ||||||
7 | rule, regulation or direction of the
Commissioner | ||||||
8 | lawfully made pursuant to the authority of this Act; or
| ||||||
9 | (ii) Any fact or condition exists which, if it had | ||||||
10 | existed at the time
of the original application for the | ||||||
11 | license, clearly would have warranted
the Commissioner | ||||||
12 | in refusing to issue the license.
| ||||||
13 | (2) Any licensee may submit application to surrender a | ||||||
14 | license,
but upon the Director approving the surrender, it | ||||||
15 | shall not affect the licensee's civil or criminal liability
| ||||||
16 | for acts committed prior to surrender or entitle the | ||||||
17 | licensee to a return
of any part of the license fee.
| ||||||
18 | (Source: P.A. 99-15, eff. 1-1-16 .)
| ||||||
19 | (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
| ||||||
20 | Sec. 4-8. Delinquency; examination.
| ||||||
21 | (a) (Blank). The Commissioner shall obtain from the U.S. | ||||||
22 | Department of Housing and
Urban Development that Department's | ||||||
23 | loan delinquency data.
| ||||||
24 | (b) The Secretary Commissioner shall conduct as part of an | ||||||
25 | examination of each licensee a review of the licensee's loan |
| |||||||
| |||||||
1 | delinquency data.
| ||||||
2 | This subsection shall not be construed as a limitation
of | ||||||
3 | the Secretary's Commissioner's examination authority under | ||||||
4 | Section 4-2 of this Act or as
otherwise provided in this Act.
| ||||||
5 | The Secretary Commissioner may require a licensee to provide | ||||||
6 | loan delinquency
data as the Secretary Commissioner deems | ||||||
7 | necessary for the proper enforcement
of the Act.
| ||||||
8 | (c) The purpose of the examination under subsection (b) | ||||||
9 | shall be
to determine whether the loan delinquency data of the
| ||||||
10 | licensee has resulted from practices which deviate from
sound | ||||||
11 | and accepted mortgage underwriting practices, including , but | ||||||
12 | not
limited to , credit fraud, appraisal fraud , and property | ||||||
13 | inspection fraud.
For the purpose of conducting this | ||||||
14 | examination, the Secretary Commissioner may accept
materials | ||||||
15 | prepared for the U.S. Department of Housing and Urban | ||||||
16 | Development.
At the conclusion of the examination, the | ||||||
17 | Secretary Commissioner shall make his or
her findings available | ||||||
18 | to the Residential Mortgage Board.
| ||||||
19 | (d) The Secretary Commissioner , at his or her discretion, | ||||||
20 | may hold public
hearings, or at the direction of the | ||||||
21 | Residential Mortgage Board, shall hold
public hearings. Such | ||||||
22 | testimony shall be by a homeowner or mortgagor or his
agent, | ||||||
23 | whose residential interest is affected by the activities of the
| ||||||
24 | residential mortgage licensee subject to such hearing.
At such | ||||||
25 | public hearing, a witness may present testimony on his or her | ||||||
26 | behalf
concerning only his or her home, or home mortgage or a |
| |||||||
| |||||||
1 | witness may authorize a
third party to appear on his or her | ||||||
2 | behalf. The testimony shall be
restricted to information and | ||||||
3 | comments related to a specific residence or
specific | ||||||
4 | residential mortgage application or applications for a | ||||||
5 | residential
mortgage or residential loan transaction. The | ||||||
6 | testimony must be preceded
by either a letter of complaint or a | ||||||
7 | completed consumer complaint form
prescribed by the Secretary | ||||||
8 | Commissioner .
| ||||||
9 | (e) The Secretary Commissioner shall, at the conclusion of | ||||||
10 | the public hearings,
release his or her findings and shall also | ||||||
11 | make public any action taken
with respect to the licensee. The | ||||||
12 | Secretary Commissioner shall also give full
consideration to | ||||||
13 | the findings of this examination whenever reapplication is
made | ||||||
14 | by the licensee for a new license under this Act.
| ||||||
15 | (f) A licensee that is examined pursuant to subsection (b)
| ||||||
16 | shall submit to the Secretary Commissioner a plan which shall | ||||||
17 | be designed to reduce that
licensee's loan delinquencies. The | ||||||
18 | plan shall be implemented by the
licensee as approved by the | ||||||
19 | Secretary Commissioner . A licensee that is
examined pursuant to | ||||||
20 | subsection (b) shall report monthly,
for a one year period, | ||||||
21 | one, 2, and 3 month loan delinquencies.
| ||||||
22 | (g) Whenever the Secretary Commissioner finds that a | ||||||
23 | licensee's loan delinquencies
on insured mortgages is | ||||||
24 | unusually high within a particular
geographic area, he or she | ||||||
25 | shall require that licensee to submit such
information as is | ||||||
26 | necessary to determine whether that licensee's practices
have |
| |||||||
| |||||||
1 | constituted credit fraud, appraisal fraud or property | ||||||
2 | inspection
fraud. The Secretary Commissioner shall promulgate | ||||||
3 | such rules as are necessary to
determine whether any licensee's | ||||||
4 | loan delinquencies are
unusually high within a particular area.
| ||||||
5 | (Source: P.A. 99-15, eff. 1-1-16 .)
| ||||||
6 | (205 ILCS 635/4-8.1A) | ||||||
7 | Sec. 4-8.1A. Confidentiality. | ||||||
8 | (a) In order to promote more effective regulation and | ||||||
9 | reduce regulatory burden through supervisory information | ||||||
10 | sharing, except as otherwise provided in federal Public Law | ||||||
11 | 110-289, Section 1512, the requirements under any federal law | ||||||
12 | or state law regarding the privacy or confidentiality of any | ||||||
13 | information or material provided to the Nationwide Multistate | ||||||
14 | Mortgage Licensing System and Registry, and any privilege | ||||||
15 | arising under federal or state law, including the rules of any | ||||||
16 | federal or state court, with respect to such information or | ||||||
17 | material, shall continue to apply to information or material | ||||||
18 | after the information or material has been disclosed to the | ||||||
19 | Nationwide Multistate Mortgage Licensing System and Registry. | ||||||
20 | The information and material may be shared with all state and | ||||||
21 | federal regulatory officials with mortgage industry oversight | ||||||
22 | authority without the loss of privilege or the loss of | ||||||
23 | confidentiality protections provided by federal law or state | ||||||
24 | law. | ||||||
25 | (b) In order to promote more effective regulation and |
| |||||||
| |||||||
1 | reduce regulatory burden through supervisory information | ||||||
2 | sharing, the Director is authorized to enter agreements or | ||||||
3 | sharing arrangements with other governmental agencies, the | ||||||
4 | Conference of State Bank Supervisors, the American Association | ||||||
5 | of Residential Mortgage Regulators or other associations | ||||||
6 | representing governmental agencies as established by rule, | ||||||
7 | regulation or order of the Director. The sharing of | ||||||
8 | confidential supervisory information or any information or | ||||||
9 | material described in subsection (a) of this Section pursuant | ||||||
10 | to an agreement or sharing arrangement shall not result in the | ||||||
11 | loss of privilege or the loss of confidentiality protections | ||||||
12 | provided by federal law or state law. | ||||||
13 | (c) In order to promote more effective regulation and | ||||||
14 | reduce regulatory burden through supervisory information | ||||||
15 | sharing, information or material that is subject to a privilege | ||||||
16 | or confidentiality under subsection (a) of this Section shall | ||||||
17 | not be subject to the following: | ||||||
18 | (1) disclosure under any State law governing the | ||||||
19 | disclosure to the public of information held by an officer | ||||||
20 | or an agency of the State; or | ||||||
21 | (2) subpoena or discovery, or admission into evidence, | ||||||
22 | in any private civil action or administrative process, | ||||||
23 | unless with respect to any privilege held by the Nationwide | ||||||
24 | Multistate Mortgage Licensing System and Registry with | ||||||
25 | respect to the information or material, the person to whom | ||||||
26 | such information or material pertains waives, in whole or |
| |||||||
| |||||||
1 | in part, in the discretion of that person, that privilege. | ||||||
2 | (d) In order to promote more effective regulation and | ||||||
3 | reduce regulatory burden through supervisory information | ||||||
4 | sharing, other law relating to the disclosure of confidential | ||||||
5 | supervisory information or any information or material | ||||||
6 | described in subsection (a) of this Section that is | ||||||
7 | inconsistent with subsection (a) of this Section shall be | ||||||
8 | superseded by the requirements of this Section to the extent | ||||||
9 | the other law provides less confidentiality or a weaker | ||||||
10 | privilege. | ||||||
11 | (e) In order to promote more effective regulation and | ||||||
12 | reduce regulatory burden through supervisory information | ||||||
13 | sharing, this Section shall not apply to the employment history | ||||||
14 | of a mortgage loan originator, and the record of publicly | ||||||
15 | adjudicated disciplinary and enforcement actions against a | ||||||
16 | mortgage loan originator.
| ||||||
17 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
18 | (205 ILCS 635/4-8.3) | ||||||
19 | Sec. 4-8.3. Annual report of mortgage brokerage and | ||||||
20 | servicing activity . On or before March 1 of each year or the | ||||||
21 | date selected for Mortgage Call Reports under Section 4-9.1 of | ||||||
22 | this Act, each licensee shall file a report with the Secretary | ||||||
23 | Commissioner that discloses shall disclose such information as | ||||||
24 | the Secretary Commissioner requires. A licensee filing a | ||||||
25 | Mortgage Call Report is not required to file an annual report. |
| |||||||
| |||||||
1 | Exempt entities as defined in subsection (d) of Section 1-4 | ||||||
2 | shall not file the annual report of mortgage and servicing | ||||||
3 | activity required by this Section.
| ||||||
4 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
5 | (205 ILCS 635/4-9.1)
| ||||||
6 | Sec. 4-9.1. Mortgage call reports. Each residential | ||||||
7 | mortgage licensee shall submit to the Nationwide Multistate | ||||||
8 | Mortgage Licensing System and Registry reports of condition, | ||||||
9 | which shall be in the form and shall contain the information | ||||||
10 | that the Nationwide Multistate Mortgage Licensing System and | ||||||
11 | Registry may require.
| ||||||
12 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
13 | (205 ILCS 635/5-9) | ||||||
14 | Sec. 5-9. Notice of change in loan terms. | ||||||
15 | (a) No licensee may fail to do either of the following: | ||||||
16 | (1) Provide timely notice to the borrower of any | ||||||
17 | material change in the terms of the residential mortgage | ||||||
18 | loan prior to the closing of the loan. For purposes of this | ||||||
19 | Section, a "material change means" any of the following: | ||||||
20 | (A) A change in the type of loan being offered, | ||||||
21 | such as a fixed or variable rate loan or a loan with a | ||||||
22 | balloon payment. | ||||||
23 | (B) A change in the term of the loan, as reflected | ||||||
24 | in the number of monthly payments due before a final |
| |||||||
| |||||||
1 | payment is scheduled to be made. | ||||||
2 | (C) An increase in the interest rate of more than | ||||||
3 | 0.15%, or an equivalent
increase in the amount of | ||||||
4 | discount points charged. | ||||||
5 | (D) An increase in the regular monthly payment of | ||||||
6 | principal and interest of more than 5%. | ||||||
7 | (E) A change regarding the requirement or amount of | ||||||
8 | escrow of taxes or insurance. | ||||||
9 | (F) A change regarding the requirement or payment, | ||||||
10 | or both, of private mortgage insurance. | ||||||
11 | (2) Timely inform the borrower if any fees payable by | ||||||
12 | the borrower to the licensee increase by more than 10% or | ||||||
13 | $100, whichever is greater. | ||||||
14 | (b) The disclosures required by this Section shall be | ||||||
15 | deemed timely if the licensee provides the borrower with the | ||||||
16 | revised information not later than 3 days after learning of the | ||||||
17 | change or 24 hours before the residential mortgage loan is | ||||||
18 | closed, whichever is earlier. If the licensee discloses a | ||||||
19 | material change more than the 3 days after learning of the | ||||||
20 | change but still 24 hours before the residential mortgage loan | ||||||
21 | is closed, it will not be liable for penalties or forfeitures | ||||||
22 | if the licensee cures in time for the borrower to avoid any | ||||||
23 | damage. | ||||||
24 | (c) If an increase in the total amount of the fee to be | ||||||
25 | paid by the borrower to the broker is not disclosed in | ||||||
26 | accordance with this Section, the broker shall refund to the |
| |||||||
| |||||||
1 | borrower the amount by which the fee was increased. If the fee | ||||||
2 | is financed into the residential mortgage loan, the broker | ||||||
3 | shall also refund to the borrower the interest charged to | ||||||
4 | finance the fee. | ||||||
5 | (d) The requirements of this Section do not apply to a | ||||||
6 | licensee providing a notice of change in loan terms pursuant to | ||||||
7 | the federal Consumer Financial Protection Bureau's Know Before | ||||||
8 | You Owe mortgage disclosure procedure pursuant to the federal | ||||||
9 | Truth in Lending Act and amendments promulgated under 12 CFR | ||||||
10 | 1026 and the federal Real Estate Settlement Procedures Act and | ||||||
11 | amendments promulgated under 12 CFR 1024. Licensees limited to | ||||||
12 | soliciting residential mortgage loan applications as approved | ||||||
13 | by the Director under Title 38, Section 1050.2115(c)(1) of the | ||||||
14 | Illinois Administrative Code are not required to provide the | ||||||
15 | disclosures under this Section as long as the solicitor does | ||||||
16 | not discuss the terms and conditions with the potential | ||||||
17 | borrower.
| ||||||
18 | (Source: P.A. 95-691, eff. 6-1-08 .) | ||||||
19 | (205 ILCS 635/7-1A) | ||||||
20 | Sec. 7-1A. Mortgage loan originator license. | ||||||
21 | (a) It is unlawful for any individual to act or assume to | ||||||
22 | act as a mortgage loan originator, as defined in subsection | ||||||
23 | (jj) of Section 1-4 of this Act, without obtaining a license | ||||||
24 | from the Director, unless the individual is exempt under | ||||||
25 | subsection (c) of this Section. It is unlawful for any |
| |||||||
| |||||||
1 | individual who holds a mortgage loan originator license to | ||||||
2 | provide short sale facilitation services unless he or she holds | ||||||
3 | a license under the Real Estate License Act of 2000. Each | ||||||
4 | licensed mortgage loan originator must register with and | ||||||
5 | maintain a valid unique identifier issued by the Nationwide | ||||||
6 | Multistate Mortgage Licensing System and Registry. | ||||||
7 | (b) (Blank). In order to facilitate an orderly transition | ||||||
8 | to licensing and minimize disruption in the mortgage | ||||||
9 | marketplace, the operability date for subsection (a) of this | ||||||
10 | Section shall be as provided in this subsection (b). For this | ||||||
11 | purpose, the Director may require submission of licensing | ||||||
12 | information to the Nationwide Mortgage Licensing System and | ||||||
13 | Registry prior to the operability dates designated by the | ||||||
14 | Director pursuant to items (1) and (2) of this subsection (b). | ||||||
15 | (1) For all individuals other than individuals | ||||||
16 | described in item (2) of this subsection (b), the | ||||||
17 | operability date as designated by the Director shall be no | ||||||
18 | later than July 31, 2010, or any date approved by the | ||||||
19 | Secretary of the U.S. Department of Housing and Urban | ||||||
20 | Development, pursuant to the authority granted under | ||||||
21 | federal Public Law 110-289, Section 1508. | ||||||
22 | (2) For all individuals registered as loan originators | ||||||
23 | as of the effective date of this amendatory Act of the 96th | ||||||
24 | General Assembly, the operability date as designated by the | ||||||
25 | Director shall be no later than January 1, 2011, or any | ||||||
26 | date approved by the Secretary of the U.S. Department of |
| |||||||
| |||||||
1 | Housing and Urban Development, pursuant to the authority | ||||||
2 | granted under Public Law 110-289, Section 1508. | ||||||
3 | (3) For all individuals described in item (1) or (2) of | ||||||
4 | this subsection (b) who are loss mitigation specialists | ||||||
5 | employed by servicers, the operability date shall be July | ||||||
6 | 31, 2011, or any date approved by the Secretary of the U.S. | ||||||
7 | Department of Housing and Urban Development pursuant to | ||||||
8 | authority granted under Public Law 110-289, Section 1508. | ||||||
9 | (c) The following, when engaged in the following | ||||||
10 | activities, are exempt from this Act: | ||||||
11 | (1) Registered mortgage loan originators, when acting | ||||||
12 | for an entity described in subsection (tt) of Section 1-4. | ||||||
13 | (2) Any individual who offers or negotiates terms of a | ||||||
14 | residential mortgage loan with or on behalf of an immediate | ||||||
15 | family member of the individual. | ||||||
16 | (3) Any individual who offers or negotiates terms of a | ||||||
17 | residential mortgage loan secured by a dwelling that served | ||||||
18 | as the individual's residence. | ||||||
19 | (4) A licensed attorney who negotiates the terms of a | ||||||
20 | residential mortgage loan on behalf of a client as an | ||||||
21 | ancillary matter to the attorney's representation of the | ||||||
22 | client, unless the attorney is compensated by a lender, a | ||||||
23 | mortgage broker, or other mortgage loan originator or by | ||||||
24 | any agent of a lender, mortgage broker, or other mortgage | ||||||
25 | loan originator. | ||||||
26 | (5) Any individual described in paragraph (2.2) of |
| |||||||
| |||||||
1 | subsection (d) of Section 1-4. | ||||||
2 | (d) A loan processor or underwriter who is an independent | ||||||
3 | contractor may not engage in the activities of a loan processor | ||||||
4 | or underwriter unless he or she obtains and maintains a license | ||||||
5 | under subsection (a) of this Section. Each independent | ||||||
6 | contractor loan processor or underwriter licensed as a mortgage | ||||||
7 | loan originator must have and maintain a valid unique | ||||||
8 | identifier issued by the Nationwide Multistate Mortgage | ||||||
9 | Licensing System and Registry. | ||||||
10 | (e) For the purposes of implementing an orderly and | ||||||
11 | efficient licensing process, the Director may establish | ||||||
12 | licensing rules or regulations and interim procedures for | ||||||
13 | licensing and acceptance of applications. For previously | ||||||
14 | registered or licensed individuals, the Director may establish | ||||||
15 | expedited review and licensing procedures.
| ||||||
16 | (Source: P.A. 96-112, eff. 7-31-09; 97-891, eff. 8-3-12.) | ||||||
17 | (205 ILCS 635/7-2) | ||||||
18 | Sec. 7-2. State license application and issuance. | ||||||
19 | (a) Applicants for a license shall apply in a form | ||||||
20 | prescribed by the Director. Each form shall contain content as | ||||||
21 | set forth by rule, regulation, instruction, or procedure of the | ||||||
22 | Director and may be changed or updated as necessary by the | ||||||
23 | Director in order to carry out the purposes of this Act. | ||||||
24 | (b) In order to fulfill the purposes of this Act, the | ||||||
25 | Director is authorized to establish relationships or contracts |
| |||||||
| |||||||
1 | with the Nationwide Multistate Mortgage Licensing System and | ||||||
2 | Registry or other entities designated by the Nationwide | ||||||
3 | Multistate Mortgage Licensing System and Registry to collect | ||||||
4 | and maintain records and process transaction fees or other fees | ||||||
5 | related to licensees or other persons subject to this Act. | ||||||
6 | (c) In connection with an application for licensing as a | ||||||
7 | mortgage loan originator, the applicant shall, at a minimum, | ||||||
8 | furnish to the Nationwide Multistate Mortgage Licensing System | ||||||
9 | and Registry information concerning the applicant's identity, | ||||||
10 | including the following: | ||||||
11 | (1) Fingerprints for submission to the Federal Bureau | ||||||
12 | of Investigation, and any governmental agency or entity | ||||||
13 | authorized to receive such information for a state, | ||||||
14 | national and international criminal history background | ||||||
15 | check. | ||||||
16 | (2) Personal history and experience in a form | ||||||
17 | prescribed by the Nationwide Multistate Mortgage Licensing | ||||||
18 | System and Registry, including the submission of | ||||||
19 | authorization for the Nationwide Multistate Mortgage | ||||||
20 | Licensing System and Registry and the Director to obtain: | ||||||
21 | (A) an independent credit report obtained from a | ||||||
22 | consumer reporting agency described in Section 603(p) | ||||||
23 | of the Fair Credit Reporting Act; and | ||||||
24 | (B) information related to any administrative, | ||||||
25 | civil, or criminal findings by any governmental | ||||||
26 | jurisdiction. |
| |||||||
| |||||||
1 | (d) For the purpose of this Section, and in order to reduce | ||||||
2 | the points of contact which the Federal Bureau of Investigation | ||||||
3 | may have to maintain for purposes of subsection (c) of this | ||||||
4 | Section, the Director may use the Nationwide Multistate | ||||||
5 | Mortgage Licensing System and Registry as a channeling agent | ||||||
6 | for requesting information from and distributing information | ||||||
7 | to the Department of Justice or any governmental agency. | ||||||
8 | (e) For the purposes of this Section and in order to reduce | ||||||
9 | the points of contact which the Director may have to maintain | ||||||
10 | for purposes of item (2) of subsection (c) of this Section, the | ||||||
11 | Director may use the Nationwide Multistate Mortgage Licensing | ||||||
12 | System and Registry as a channeling agent for requesting and | ||||||
13 | distributing information to and from any source so directed by | ||||||
14 | the Director.
| ||||||
15 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
16 | (205 ILCS 635/7-4) | ||||||
17 | Sec. 7-4. Pre-licensing and education of mortgage loan | ||||||
18 | originators. | ||||||
19 | (a) In order to meet the pre-licensing education | ||||||
20 | requirement referred to in item (4) of Section 7-3 of this Act | ||||||
21 | an individual shall complete at least 20 hours of education | ||||||
22 | approved in accordance with subsection (b) of this Section, | ||||||
23 | which shall include at least: | ||||||
24 | (1) 3 hours of Federal law and regulations; | ||||||
25 | (2) 3 hours of ethics, which shall include instruction |
| |||||||
| |||||||
1 | on fraud, consumer protection, and fair lending issues; and | ||||||
2 | (3) 2 hours of training related to lending standards | ||||||
3 | for the nontraditional mortgage product marketplace. | ||||||
4 | (b) For purposes of subsection (a) of this Section, | ||||||
5 | pre-licensing education courses shall be reviewed and approved | ||||||
6 | by the Nationwide Multistate Mortgage Licensing System and | ||||||
7 | Registry based upon reasonable standards. Review and approval | ||||||
8 | of a pre-licensing education course shall include review and | ||||||
9 | approval of the course provider. | ||||||
10 | (c) Nothing in this Section shall preclude any | ||||||
11 | pre-licensing education course, as approved by the Nationwide | ||||||
12 | Multistate Mortgage Licensing System and Registry, that is | ||||||
13 | provided by the employer of the applicant or an entity which is | ||||||
14 | affiliated with the applicant by an agency contract, or any | ||||||
15 | subsidiary or affiliate of such an employer or entity. | ||||||
16 | (d) Pre-licensing education may be offered in a classroom, | ||||||
17 | online, or by any other means approved by the Nationwide | ||||||
18 | Multistate Mortgage Licensing System and Registry. | ||||||
19 | (e) The pre-licensing education requirements approved by | ||||||
20 | the Nationwide Multistate Mortgage Licensing System and | ||||||
21 | Registry for the subjects listed in items (1) through (3) of | ||||||
22 | subsection (a) for any state shall be accepted as credit | ||||||
23 | towards completion of pre-licensing education requirements in | ||||||
24 | Illinois. | ||||||
25 | (f) An individual previously registered under this Act who | ||||||
26 | is applying to be licensed after the effective date of this |
| |||||||
| |||||||
1 | amendatory Act of the 96th General Assembly must prove that he | ||||||
2 | or she has completed all of the continuing education | ||||||
3 | requirements for the year in which the registration or license | ||||||
4 | was last held.
| ||||||
5 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
6 | (205 ILCS 635/7-5) | ||||||
7 | Sec. 7-5. Testing of mortgage loan originators. | ||||||
8 | (a) In order to meet the written test requirement referred | ||||||
9 | to in item (5) of Section 7-3, an individual shall pass, in | ||||||
10 | accordance with the standards established under this | ||||||
11 | subsection (a), a qualified written test developed by the | ||||||
12 | Nationwide Multistate Mortgage Licensing System and Registry | ||||||
13 | and administered by a test provider approved by the Nationwide | ||||||
14 | Multistate Mortgage Licensing System and Registry based upon | ||||||
15 | reasonable standards. | ||||||
16 | (b) A written test shall not be treated as a qualified | ||||||
17 | written test for purposes of subsection (a) of this Section | ||||||
18 | unless the test adequately measures the applicant's knowledge | ||||||
19 | and comprehension in appropriate subject areas, including: | ||||||
20 | (1) ethics; | ||||||
21 | (2) federal law and regulation pertaining to mortgage | ||||||
22 | origination; | ||||||
23 | (3) State law and regulation pertaining to mortgage | ||||||
24 | origination; and | ||||||
25 | (4) federal and State law and regulation, including |
| |||||||
| |||||||
1 | instruction on fraud, consumer protection, the | ||||||
2 | nontraditional mortgage marketplace, and fair lending | ||||||
3 | issues. | ||||||
4 | (c) Nothing in this Section shall prohibit a test provider | ||||||
5 | approved by the Nationwide Multistate Mortgage Licensing | ||||||
6 | System and Registry from providing a test at the location of | ||||||
7 | the employer of the applicant or the location of any subsidiary | ||||||
8 | or affiliate of the employer of the applicant, or the location | ||||||
9 | of any entity with which the applicant holds an exclusive | ||||||
10 | arrangement to conduct the business of a mortgage loan | ||||||
11 | originator. | ||||||
12 | (d) An individual shall not be considered to have passed a | ||||||
13 | qualified written test unless the individual achieves a test | ||||||
14 | score of not less than 75% correct answers to questions. | ||||||
15 | An individual may retake a test 3 consecutive times with | ||||||
16 | each consecutive taking occurring at least 30 days after the | ||||||
17 | preceding test. | ||||||
18 | After failing 3 consecutive tests, an individual shall wait | ||||||
19 | at least 6 months before taking the test again. | ||||||
20 | A licensed mortgage loan originator who fails to maintain a | ||||||
21 | valid license for a period of 5 years or longer shall retake | ||||||
22 | the test, not taking into account any time during which such | ||||||
23 | individual is a registered mortgage loan originator.
| ||||||
24 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
25 | (205 ILCS 635/7-6) |
| |||||||
| |||||||
1 | Sec. 7-6. Standards for license renewal. | ||||||
2 | (a) The minimum standards for license renewal for mortgage | ||||||
3 | loan originators shall include the following: | ||||||
4 | (1) The mortgage loan originator continues to meet the | ||||||
5 | minimum standards for license issuance under Section 7-3. | ||||||
6 | (2) The mortgage loan originator has satisfied the | ||||||
7 | annual continuing education requirements described in | ||||||
8 | Section 7-7. | ||||||
9 | (3) The mortgage loan originator has paid all required | ||||||
10 | fees for renewal of the license. | ||||||
11 | (b) The license of a mortgage loan originator failing to | ||||||
12 | satisfy the minimum standards for license renewal shall expire. | ||||||
13 | The Director may adopt procedures for the reinstatement of | ||||||
14 | expired licenses consistent with the standards established by | ||||||
15 | the Nationwide Multistate Mortgage Licensing System and | ||||||
16 | Registry.
| ||||||
17 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
18 | (205 ILCS 635/7-7) | ||||||
19 | Sec. 7-7. Continuing education for mortgage loan | ||||||
20 | originators. | ||||||
21 | (a) In order to meet the annual continuing education | ||||||
22 | requirements referred to in Section 7-6, a licensed mortgage | ||||||
23 | loan originator shall complete at least 8 hours of education | ||||||
24 | approved in accordance with subsection (b) of this Section, | ||||||
25 | which shall include at least: |
| |||||||
| |||||||
1 | (1) 3 hours of Federal law and regulations; | ||||||
2 | (2) 2 hours of ethics, which shall include instruction | ||||||
3 | on fraud, consumer protection, and fair lending issues; and | ||||||
4 | (3) 2 hours of training related to lending standards | ||||||
5 | for the nontraditional mortgage product marketplace. | ||||||
6 | (b) For purposes of this subsection (a), continuing | ||||||
7 | education courses shall be reviewed and approved by the | ||||||
8 | Nationwide Multistate Mortgage Licensing System and Registry | ||||||
9 | based upon reasonable standards. Review and approval of a | ||||||
10 | continuing education course shall include review and approval | ||||||
11 | of the course provider. | ||||||
12 | (c) Nothing in this Section shall preclude any education | ||||||
13 | course, as approved by the Nationwide Multistate Mortgage | ||||||
14 | Licensing System and Registry, that is provided by the employer | ||||||
15 | of the mortgage loan originator or an entity which is | ||||||
16 | affiliated with the mortgage loan originator by an agency | ||||||
17 | contract, or any subsidiary or affiliate of the employer or | ||||||
18 | entity. | ||||||
19 | (d) Continuing education may be offered either in a | ||||||
20 | classroom, online, or by any other means approved by the | ||||||
21 | Nationwide Multistate Mortgage Licensing System and Registry. | ||||||
22 | (e) A licensed mortgage loan originator: | ||||||
23 | (1) Except as provided in Section 7-6 and subsection | ||||||
24 | (i) of this Section, may only receive credit for a | ||||||
25 | continuing education course in the year in which the course | ||||||
26 | is taken; and |
| |||||||
| |||||||
1 | (2) May not take the same approved course in the same | ||||||
2 | or successive years to meet the annual requirements for | ||||||
3 | continuing education. | ||||||
4 | (f) A licensed mortgage loan originator who is an approved | ||||||
5 | instructor of an approved continuing education course may | ||||||
6 | receive credit for the licensed mortgage loan originator's own | ||||||
7 | annual continuing education requirement at the rate of 2 hours | ||||||
8 | credit for every one hour taught. | ||||||
9 | (g) A person having successfully completed the education | ||||||
10 | requirements approved by the Nationwide Multistate Mortgage | ||||||
11 | Licensing System and Registry for the subjects listed in | ||||||
12 | subsection (a) of this Section for any state shall be accepted | ||||||
13 | as credit towards completion of continuing education | ||||||
14 | requirements in this State. | ||||||
15 | (h) A licensed mortgage loan originator who subsequently | ||||||
16 | becomes unlicensed must complete the continuing education | ||||||
17 | requirements for the last year in which the license was held | ||||||
18 | prior to issuance of a new or renewed license. | ||||||
19 | (i) A person meeting the requirements of Section 7-6 may | ||||||
20 | make up any deficiency in continuing education as established | ||||||
21 | by rule or regulation of the Director.
| ||||||
22 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
23 | (205 ILCS 635/7-8) | ||||||
24 | Sec. 7-8. Authority to require license. In addition to any | ||||||
25 | other duties imposed upon the Director by law, the Director |
| |||||||
| |||||||
1 | shall require mortgage loan originators to be licensed and | ||||||
2 | registered through the Nationwide Multistate Mortgage | ||||||
3 | Licensing System and Registry. In order to carry out this | ||||||
4 | requirement the Director is authorized to participate in the | ||||||
5 | Nationwide Multistate Mortgage Licensing System and Registry. | ||||||
6 | For this purpose, the Director may establish by agreement, | ||||||
7 | order or rule requirements as necessary, including, but not | ||||||
8 | limited to, the following: | ||||||
9 | (1) Background checks for: | ||||||
10 | (A) criminal history through fingerprint or other | ||||||
11 | databases; | ||||||
12 | (B) civil or administrative records; | ||||||
13 | (C) credit history; or | ||||||
14 | (D) any other information as deemed necessary by | ||||||
15 | the Nationwide Multistate Mortgage Licensing System | ||||||
16 | and Registry. | ||||||
17 | (2) The payment of fees to apply for or renew licenses | ||||||
18 | through the Nationwide Multistate Mortgage Licensing | ||||||
19 | System and Registry; | ||||||
20 | (3) The setting or resetting as necessary of renewal or | ||||||
21 | reporting dates; and | ||||||
22 | (4) Requirements for amending or surrendering a | ||||||
23 | license or any other such activities as the Director deems | ||||||
24 | necessary for participation in the Nationwide Multistate | ||||||
25 | Mortgage Licensing System and Registry.
| ||||||
26 | (Source: P.A. 96-112, eff. 7-31-09.) |
| |||||||
| |||||||
1 | (205 ILCS 635/7-9) | ||||||
2 | Sec. 7-9. Report to Nationwide Multistate Mortgage | ||||||
3 | Licensing System and Registry. Subject to State privacy laws, | ||||||
4 | the Director is required to report regularly violations of this | ||||||
5 | Act, as well as enforcement actions and other relevant | ||||||
6 | information, to the Nationwide Multistate Mortgage Licensing | ||||||
7 | System and Registry subject to the provisions contained in | ||||||
8 | Section 4-8.1A of this Act.
| ||||||
9 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
10 | (205 ILCS 635/7-10) | ||||||
11 | Sec. 7-10. Nationwide Multistate Mortgage Licensing System | ||||||
12 | and Registry information challenge process. The Director shall | ||||||
13 | establish a process whereby mortgage loan originators may | ||||||
14 | challenge information entered into the Nationwide Multistate | ||||||
15 | Mortgage Licensing System and Registry by the Director.
| ||||||
16 | (Source: P.A. 96-112, eff. 7-31-09.) | ||||||
17 | (205 ILCS 635/7-13)
| ||||||
18 | Sec. 7-13. Prohibited acts and practices for mortgage loan | ||||||
19 | originators. It is a violation of this Act for an individual | ||||||
20 | subject to this Act to: | ||||||
21 | (1) Directly or indirectly employ any scheme, device, | ||||||
22 | or artifice to defraud or mislead borrowers or lenders or | ||||||
23 | to defraud any person. |
| |||||||
| |||||||
1 | (2) Engage in any unfair or deceptive practice toward | ||||||
2 | any person. | ||||||
3 | (3) Obtain property by fraud or misrepresentation. | ||||||
4 | (4) Solicit or enter into a contract with a borrower | ||||||
5 | that provides in substance that the person or individual | ||||||
6 | subject to this Act may earn a fee or commission through | ||||||
7 | "best efforts" to obtain a loan even though no loan is | ||||||
8 | actually obtained for the borrower. | ||||||
9 | (5) Solicit, advertise, or enter into a contract for | ||||||
10 | specific interest rates, points, or other financing terms | ||||||
11 | unless the terms are actually available at the time of | ||||||
12 | soliciting, advertising, or contracting. | ||||||
13 | (6) Conduct any business covered by this Act without | ||||||
14 | holding a valid license as required under this Act, or | ||||||
15 | assist or aid and abet any person in the conduct of | ||||||
16 | business under this Act without a valid license as required | ||||||
17 | under this Act. | ||||||
18 | (7) Fail to make disclosures as required by this Act | ||||||
19 | and any other applicable State or federal law, including | ||||||
20 | regulations thereunder. | ||||||
21 | (8) Fail to comply with this Act or rules or | ||||||
22 | regulations promulgated under this Act, or fail to comply | ||||||
23 | with any other state or federal law, including the rules | ||||||
24 | and regulations thereunder, applicable to any business | ||||||
25 | authorized or conducted under this Act. | ||||||
26 | (9) Make, in any manner, any false or deceptive |
| |||||||
| |||||||
1 | statement or representation of a material fact, or any | ||||||
2 | omission of a material fact, required on any document or | ||||||
3 | application subject to this Act. | ||||||
4 | (10) Negligently make any false statement or knowingly | ||||||
5 | and willfully make any omission of material fact in | ||||||
6 | connection with any information or report filed with a | ||||||
7 | governmental agency or the Nationwide Multistate Mortgage | ||||||
8 | Licensing System and Registry or in connection with any | ||||||
9 | investigation conducted by the Director or another | ||||||
10 | governmental agency. | ||||||
11 | (11) Make any payment, threat or promise, directly or | ||||||
12 | indirectly, to any person for the purpose of influencing | ||||||
13 | the independent judgment of the person in connection with a | ||||||
14 | residential mortgage loan, or make any payment threat or | ||||||
15 | promise, directly or indirectly, to any appraiser of a | ||||||
16 | property, for the purpose of influencing the independent | ||||||
17 | judgment of the appraiser with respect to the value of the | ||||||
18 | property. | ||||||
19 | (12) Collect, charge, attempt to collect or charge, or | ||||||
20 | use or propose any agreement purporting to collect or | ||||||
21 | charge any fee prohibited by this Act, including advance | ||||||
22 | fees for loan modification. | ||||||
23 | (13) Cause or require a borrower to obtain property | ||||||
24 | insurance coverage in an amount that exceeds the | ||||||
25 | replacement cost of the improvements as established by the | ||||||
26 | property insurer. |
| |||||||
| |||||||
1 | (14) Fail to truthfully account for monies belonging to | ||||||
2 | a party to a residential mortgage loan transaction. | ||||||
3 | (15) Engage in conduct that constitutes dishonest | ||||||
4 | dealings. | ||||||
5 | (16) Knowingly instruct, solicit, propose, or cause a | ||||||
6 | person other than the borrower to sign a borrower's | ||||||
7 | signature on a mortgage related document, or solicit, | ||||||
8 | accept or execute any contract or other document related to | ||||||
9 | the residential mortgage transaction that contains any | ||||||
10 | blanks to be filled in after signing or initialing the | ||||||
11 | contract or other document, except for forms authorizing | ||||||
12 | the verification of application information. | ||||||
13 | (17) Discourage any applicant from seeking or | ||||||
14 | participating in housing or financial counseling either | ||||||
15 | before or after the consummation of a loan transaction, or | ||||||
16 | fail to provide information on counseling resources upon | ||||||
17 | request. | ||||||
18 | (18) Charge for any ancillary products or services, not | ||||||
19 | essential to the basic loan transaction for which the | ||||||
20 | consumer has applied, without the applicant's knowledge | ||||||
21 | and written authorization, or charge for any ancillary | ||||||
22 | products or services not actually provided in the | ||||||
23 | transaction. | ||||||
24 | (19) Fail to give reasonable consideration to a | ||||||
25 | borrower's ability to repay the debt. | ||||||
26 | (20) Interfere or obstruct an investigation or |
| |||||||
| |||||||
1 | examination conducted pursuant to this Act.
| ||||||
2 | (21) Structure activities or contracts to evade | ||||||
3 | provisions of this Act. | ||||||
4 | (Source: P.A. 96-112, eff. 7-31-09; 97-891, eff. 8-3-12.)
| ||||||
5 | (205 ILCS 635/7-1 rep.)
| ||||||
6 | Section 15. The Residential Mortgage License Act of 1987 is | ||||||
7 | amended by repealing Section 7-1.
| ||||||
8 | Section 99. Effective date. This Act takes effect upon | ||||||
9 | becoming law.".
|