| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
| |||||||||||||||||||||||||
1 | AN ACT concerning regulation.
| ||||||||||||||||||||||||
2 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||
3 | represented in the General Assembly:
| ||||||||||||||||||||||||
4 | Section 5. The Appraisal Management Company Registration | ||||||||||||||||||||||||
5 | Act is amended by changing Sections 10, 15, 20, 25, 40, 55, 65, | ||||||||||||||||||||||||
6 | and 160 and by adding Sections 17, 37, 43, 47, 67, 68, 163, and | ||||||||||||||||||||||||
7 | 177 as follows: | ||||||||||||||||||||||||
8 | (225 ILCS 459/10)
| ||||||||||||||||||||||||
9 | Sec. 10. Definitions. In this Act: | ||||||||||||||||||||||||
10 | "Address of record" means the principal designated address | ||||||||||||||||||||||||
11 | recorded by the Department in the applicant's or registrant's | ||||||||||||||||||||||||
12 | application file or registration file maintained by the | ||||||||||||||||||||||||
13 | Department's registration maintenance unit. It is the duty of | ||||||||||||||||||||||||
14 | the applicant or registrant to inform the Department of any | ||||||||||||||||||||||||
15 | change of address, and the changes must be made either through | ||||||||||||||||||||||||
16 | the Department's website or by contacting the Department's | ||||||||||||||||||||||||
17 | registration maintenance unit within a prescribed time period | ||||||||||||||||||||||||
18 | as defined by rule. | ||||||||||||||||||||||||
19 | "Applicant" means a person or entity who applies to the | ||||||||||||||||||||||||
20 | Department for a registration under this Act. | ||||||||||||||||||||||||
21 | "Appraisal" means (noun) the act or process of developing | ||||||||||||||||||||||||
22 | an opinion of value; an opinion of value (adjective) of or | ||||||||||||||||||||||||
23 | pertaining to appraising and related functions. |
| |||||||
| |||||||
1 | "Appraisal firm" means an appraisal entity that is 100% | ||||||
2 | owned and controlled by a person or persons licensed in | ||||||
3 | Illinois as a certified general real estate appraiser or a | ||||||
4 | certified residential real estate appraiser. An appraisal firm | ||||||
5 | does not include an appraisal management company. | ||||||
6 | "Appraisal management company" means any corporation, | ||||||
7 | limited liability company, partnership, sole proprietorship, | ||||||
8 | subsidiary, unit, or other business entity that directly or | ||||||
9 | indirectly : (1) provides appraisal management services to | ||||||
10 | creditors or secondary mortgage market participants; (2) | ||||||
11 | provides appraisal management services in connection with | ||||||
12 | valuing the consumer's principal dwelling as security for a | ||||||
13 | consumer credit transaction (including consumer credit | ||||||
14 | transactions incorporated into securitizations); and (3) | ||||||
15 | within a given year, oversees an appraiser panel of 16 or more | ||||||
16 | State-certified appraisers in Illinois or 25 or more | ||||||
17 | State-certified or State-licensed appraisers in 2 or more | ||||||
18 | jurisdictions. "Appraisal management company" includes a | ||||||
19 | hybrid entity. performs the following appraisal management | ||||||
20 | services: (1) administers networks of independent contractors | ||||||
21 | or employee appraisers to perform real estate appraisal | ||||||
22 | assignments for clients; (2) receives requests for real estate | ||||||
23 | appraisal services from clients and, for a fee paid by the | ||||||
24 | client, enters into an agreement with one or more independent | ||||||
25 | appraisers to perform the real estate appraisal services | ||||||
26 | contained in the request; or (3) otherwise serves as a |
| |||||||
| |||||||
1 | third-party broker of appraisal management services between | ||||||
2 | clients and appraisers. | ||||||
3 | "Appraisal management services" means one or more of the | ||||||
4 | following: | ||||||
5 | (1) recruiting, selecting, and retaining appraisers; | ||||||
6 | (2) contracting with State-certified or State-licensed | ||||||
7 | appraisers to perform appraisal assignments; | ||||||
8 | (3) managing the process of having an appraisal | ||||||
9 | performed, including providing administrative services | ||||||
10 | such as receiving appraisal orders and appraisal reports; | ||||||
11 | submitting completed appraisal reports to creditors and | ||||||
12 | secondary market participants; collecting compensation | ||||||
13 | from creditors, appraisers, or secondary market | ||||||
14 | participants for services provided; or paying appraisers | ||||||
15 | for services performed; or | ||||||
16 | (4) reviewing and verifying the work of appraisers. | ||||||
17 | "Appraiser panel" means a network, list, or roster of | ||||||
18 | licensed or certified appraisers approved by the appraisal | ||||||
19 | management company or by the end-user client to perform | ||||||
20 | appraisals for the appraisal management company. "Appraisal | ||||||
21 | panel" includes both appraisers accepted by an appraisal | ||||||
22 | management company for consideration for future appraisal | ||||||
23 | assignments and appraisers engaged by an appraisal management | ||||||
24 | company to perform one or more appraisals. | ||||||
25 | "Appraiser panel fee" means the amount collected from a | ||||||
26 | registrant that includes an appraisal management company's |
| |||||||
| |||||||
1 | national registry fee. | ||||||
2 | "Appraisal report" means a written appraisal by an | ||||||
3 | appraiser to a client. | ||||||
4 | "Appraisal practice service" means valuation services | ||||||
5 | performed by an individual acting as an appraiser, including, | ||||||
6 | but not limited to, appraisal , or appraisal review , or | ||||||
7 | appraisal consulting . | ||||||
8 | "Appraiser" means a person who performs real estate or real | ||||||
9 | property appraisals. | ||||||
10 | "Assignment result" means an appraiser's opinions and | ||||||
11 | conclusions developed specific to an assignment. | ||||||
12 | "Audit" includes, but is not limited to, an annual or | ||||||
13 | special audit, visit, or review necessary under this Act or | ||||||
14 | required by the Secretary or the Secretary's authorized | ||||||
15 | representative in carrying out the duties and responsibilities | ||||||
16 | under this Act. | ||||||
17 | "Board" means the Real Estate Appraisal Administration and | ||||||
18 | Disciplinary Board. | ||||||
19 | "Client" means the party or parties who engage an appraiser | ||||||
20 | by employment or contract in a specific appraisal assignment. | ||||||
21 | "Controlling Person" means: | ||||||
22 | (1) an owner, officer, or director of an entity seeking | ||||||
23 | to offer appraisal management services; | ||||||
24 | (2) an individual employed, appointed, or authorized | ||||||
25 | by an appraisal management company who has the authority | ||||||
26 | to: |
| |||||||
| |||||||
1 | (A) enter into a contractual relationship with a | ||||||
2 | client for the performance of an appraisal management | ||||||
3 | service or appraisal practice service; and | ||||||
4 | (B) enter into an agreement with an appraiser for | ||||||
5 | the performance of a real estate appraisal activity; or | ||||||
6 | (3) an individual who possesses, directly or | ||||||
7 | indirectly, the power to direct or cause the
direction of | ||||||
8 | the management or policies of an appraisal management | ||||||
9 | company ; or .
| ||||||
10 | (4) an individual who will act as the sole compliance | ||||||
11 | officer with regard to this Act and any rules adopted under | ||||||
12 | this Act. | ||||||
13 | "Coordinator" means the Coordinator of the Appraisal | ||||||
14 | Management Company Registration Unit of the Department or his | ||||||
15 | or her designee. | ||||||
16 | "Covered transaction" means a consumer credit transaction | ||||||
17 | secured by a consumer's principal dwelling. | ||||||
18 | "Department" means the Department of Financial and | ||||||
19 | Professional Regulation. | ||||||
20 | "Email address of record" means the designated email | ||||||
21 | address recorded by the Department in the applicant's | ||||||
22 | application file or the registrant's registration file | ||||||
23 | maintained by the Department's registration maintenance unit. | ||||||
24 | "Entity" means a corporation, a limited liability company, | ||||||
25 | partnership, a sole proprietorship, or other entity providing | ||||||
26 | services or holding itself out to provide services as an |
| |||||||
| |||||||
1 | appraisal management company or an appraisal management | ||||||
2 | service. | ||||||
3 | "End-user client" means any person who utilizes or engages | ||||||
4 | the services of an appraiser through an appraisal management | ||||||
5 | company. | ||||||
6 | "Federally regulated appraisal management company" means | ||||||
7 | an appraisal management company that is owned and controlled by | ||||||
8 | an insured depository institution, as defined in 12 U.S.C. | ||||||
9 | 1813, or an insured credit union, as defined in 12 U.S.C. 1752, | ||||||
10 | and regulated by the Office of the Comptroller of the Currency, | ||||||
11 | the Federal Reserve Board, the National Credit Union | ||||||
12 | Association, or the Federal Deposit Insurance Corporation. | ||||||
13 | "Financial institution" means any bank, savings bank, | ||||||
14 | savings and loan association, credit union, mortgage broker, | ||||||
15 | mortgage banker, registrant under the Consumer Installment | ||||||
16 | Loan Act or the Sales Finance Agency Act, or a corporate | ||||||
17 | fiduciary, subsidiary, affiliate, parent company, or holding | ||||||
18 | company of any registrant, or any institution involved in real | ||||||
19 | estate financing that is regulated by State or federal law. | ||||||
20 | "Hybrid entity" means an appraisal management company that | ||||||
21 | hires an appraiser as an employee to perform an appraisal and | ||||||
22 | engages an independent contractor to perform an appraisal. | ||||||
23 | "Person" means individuals, entities, sole | ||||||
24 | proprietorships, corporations, limited liability companies, | ||||||
25 | and alien, foreign, or domestic partnerships, foreign or | ||||||
26 | domestic, except that when the context otherwise requires, the |
| |||||||
| |||||||
1 | term may refer to a single individual or other described | ||||||
2 | entity.
| ||||||
3 | "Principal dwelling" means a residential structure that | ||||||
4 | contains one to 4 units, whether or not that structure is | ||||||
5 | attached to real property. "Principal dwelling" includes an | ||||||
6 | individual condominium unit, cooperative unit, manufactured | ||||||
7 | home, mobile home, and trailer, if it is used as a residence. | ||||||
8 | "Principal office" means the actual, physical business | ||||||
9 | address, which shall not be a post office box or a virtual | ||||||
10 | business address, of a registrant, at which (i) the Department | ||||||
11 | may contact the registrant and (ii) records required under this | ||||||
12 | Act are maintained. | ||||||
13 | "Qualified to transact business in this State" means being | ||||||
14 | in compliance with the requirements of the Business Corporation | ||||||
15 | Act of 1983. | ||||||
16 | "Quality control review" means a review of an appraisal | ||||||
17 | report for compliance and completeness, including grammatical, | ||||||
18 | typographical, or other similar errors, unrelated to | ||||||
19 | developing an opinion of value. | ||||||
20 | "Real estate" means an identified parcel or tract of land, | ||||||
21 | including any improvements. | ||||||
22 | "Real estate related financial transaction" means any | ||||||
23 | transaction involving: | ||||||
24 | (1) the sale, lease, purchase, investment in, or | ||||||
25 | exchange of real property,
including interests in property | ||||||
26 | or the financing thereof; |
| |||||||
| |||||||
1 | (2) the refinancing of real property or interests in | ||||||
2 | real property; and | ||||||
3 | (3) the use of real property or interest in property as | ||||||
4 | security for a loan or
investment, including mortgage | ||||||
5 | backed securities. | ||||||
6 | "Real property" means the interests, benefits, and rights | ||||||
7 | inherent in the ownership of real estate. | ||||||
8 | "Secretary" means the Secretary of Financial and | ||||||
9 | Professional Regulation. | ||||||
10 | "USPAP" means the Uniform Standards of Professional | ||||||
11 | Appraisal Practice as adopted by the Appraisal Standards Board | ||||||
12 | under Title XI. | ||||||
13 | "Valuation" means any estimate of the value of real | ||||||
14 | property in connection with a creditor's decision to provide | ||||||
15 | credit, including those values developed under a policy of a | ||||||
16 | government sponsored enterprise or by an automated valuation | ||||||
17 | model or other methodology or mechanism.
| ||||||
18 | "Written notice" means a communication transmitted by mail | ||||||
19 | or by electronic means that can be verified between an | ||||||
20 | appraisal management company and a licensed or certified real | ||||||
21 | estate appraiser. | ||||||
22 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
23 | (225 ILCS 459/15)
| ||||||
24 | Sec. 15. Exemptions. | ||||||
25 | (a) Nothing in this Act shall apply to any of the |
| |||||||
| |||||||
1 | following: | ||||||
2 | (1) an agency of the federal, State, county, or | ||||||
3 | municipal government or an officer or employee of a | ||||||
4 | government agency, or person, described in this Section | ||||||
5 | when acting within the scope of employment of the officer | ||||||
6 | or employee; | ||||||
7 | (2) a corporate relocation company when the appraisal | ||||||
8 | is not used for mortgage purposes and the end user client | ||||||
9 | is an employer company; | ||||||
10 | (3) any person licensed in this State under any other | ||||||
11 | Act while engaged in the activities or practice for which | ||||||
12 | he or she is licensed; | ||||||
13 | (4) any person licensed to practice law in this State | ||||||
14 | who is working with or on behalf of a client of that person | ||||||
15 | in connection with one or more appraisals for that client; | ||||||
16 | (5) an appraiser that enters into an agreement, whether | ||||||
17 | written or otherwise, with another appraiser for the | ||||||
18 | performance of an appraisal, and upon the completion of the | ||||||
19 | appraisal, the report of the appraiser performing the | ||||||
20 | appraisal is signed by both the appraiser who completed the | ||||||
21 | appraisal and the appraiser who requested the completion of | ||||||
22 | the appraisal, except that an appraisal management company | ||||||
23 | may not avoid the requirement of registration under this | ||||||
24 | Act by requiring an employee of the appraisal management | ||||||
25 | company who is an appraiser to sign an appraisal that was | ||||||
26 | completed by another appraiser who is part of the appraisal |
| |||||||
| |||||||
1 | panel of the appraisal management company; | ||||||
2 | (6) any person acting as an agent of the Illinois | ||||||
3 | Department of Transportation in the acquisition or | ||||||
4 | relinquishment of land for transportation issues to the | ||||||
5 | extent of their contract scope; or | ||||||
6 | (7) a design professional entity when the appraisal is | ||||||
7 | not used for
mortgage purposes and the end user client is | ||||||
8 | an agency of State government or a unit of local | ||||||
9 | government. | ||||||
10 | (b) Federally regulated appraisal management companies | ||||||
11 | shall register with the Department and pay all fees associated | ||||||
12 | with registering a federally regulated appraisal management | ||||||
13 | company but are otherwise exempt from all other provisions in | ||||||
14 | this Act. | ||||||
15 | (c) In the event that the Final Interim Rule of the federal | ||||||
16 | Dodd-Frank Wall Street Reform and Consumer Protection Act | ||||||
17 | provides that an appraisal management company is a subsidiary | ||||||
18 | owned and controlled by a financial institution regulated by a | ||||||
19 | federal financial institution's regulatory agency and is | ||||||
20 | exempt from State appraisal management company registration | ||||||
21 | requirements, the Department, shall, by rule, provide for the | ||||||
22 | implementation of such an exemption.
| ||||||
23 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
24 | (225 ILCS 459/17 new) | ||||||
25 | Sec. 17. Address of record; email address of record. All |
| |||||||
| |||||||
1 | applicants and registrants shall: | ||||||
2 | (1) provide a valid address and email address to the
| ||||||
3 | Department, which shall serve as the address of record and | ||||||
4 | email address of record, respectively, at the time of | ||||||
5 | application for registration or renewal of a registration; | ||||||
6 | and | ||||||
7 | (2) inform the Department of any change of address of
| ||||||
8 | record or email address of record within 14 days after such | ||||||
9 | change either through the Department's website or through a | ||||||
10 | multi-state registration system as designated by the | ||||||
11 | Secretary. | ||||||
12 | (225 ILCS 459/20)
| ||||||
13 | Sec. 20. Restrictions and limitations. Beginning January | ||||||
14 | 1, 2012, it is unlawful for a person or entity to act or assume | ||||||
15 | to act as an appraisal management company as defined in this | ||||||
16 | Act, to engage in the business of appraisal management service, | ||||||
17 | or to advertise or hold himself or herself out to be a | ||||||
18 | registered appraisal management company without first | ||||||
19 | obtaining a registration issued by the Department under this | ||||||
20 | Act. A person or entity that violates this Section is guilty of | ||||||
21 | a Class A misdemeanor for the first offense and a Class 4 | ||||||
22 | felony for second and subsequent offenses. | ||||||
23 | Persons practicing as an appraisal management company in | ||||||
24 | Illinois as of the effective date of this Act may continue to | ||||||
25 | practice as provided in this Act until the Department has |
| |||||||
| |||||||
1 | adopted rules implementing this Act. To continue practicing as | ||||||
2 | an appraisal management company after the adoption of rules, | ||||||
3 | persons shall apply for registration within 180 days after the | ||||||
4 | effective date of the rules. If an application is received | ||||||
5 | during the 180-day period, the person may continue to practice | ||||||
6 | until the Department acts to grant or deny registration. If an | ||||||
7 | application is not filed within the 180-day period, the person | ||||||
8 | must cease the practice at the conclusion of the 180-day period | ||||||
9 | and until the Department acts to grant a registration to the | ||||||
10 | person.
| ||||||
11 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
12 | (225 ILCS 459/25)
| ||||||
13 | Sec. 25. Powers and duties of the Department. Subject to | ||||||
14 | the provisions of this Act: | ||||||
15 | (1) The Department may ascertain the qualifications | ||||||
16 | and fitness of applicants for registration and pass upon | ||||||
17 | the qualifications of applicants for registration. | ||||||
18 | (2) The Department may conduct hearings on proceedings | ||||||
19 | to refuse to issue or renew or to revoke registrations or | ||||||
20 | suspend, place on probation, or reprimand persons or | ||||||
21 | otherwise discipline individuals or entities subject to | ||||||
22 | this Act. | ||||||
23 | (3) The Department may adopt formulate all rules | ||||||
24 | required for the administration of this Act. With the | ||||||
25 | exception of emergency rules, any proposed rules, |
| |||||||
| |||||||
1 | amendments, second notice materials, and adopted rule or | ||||||
2 | amendment materials or policy statements concerning | ||||||
3 | appraisal management companies shall be presented to the | ||||||
4 | Real Estate Appraisal Administration and Disciplinary | ||||||
5 | Board for review and comment. The recommendations of the | ||||||
6 | Board shall be presented to the Secretary for consideration | ||||||
7 | in making final decisions. | ||||||
8 | (4) The Department may maintain rosters of the names | ||||||
9 | and addresses of all registrants, and all persons whose | ||||||
10 | registrations have been suspended, revoked, or denied | ||||||
11 | renewal for cause within the previous calendar year or | ||||||
12 | otherwise disciplined pursuant to this Act and shall | ||||||
13 | transmit the roster, along with any national registry fees | ||||||
14 | obtained by it, to the entity specified by and in a manner | ||||||
15 | consistent with Title XI of the federal Financial | ||||||
16 | Institutions Reform, Recovery, and Enforcement Act of | ||||||
17 | 1989 . These rosters shall be available upon written request | ||||||
18 | and payment of the required fee as established by rule.
| ||||||
19 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
20 | (225 ILCS 459/37 new) | ||||||
21 | Sec. 37. Transferability; assignability. A registration, | ||||||
22 | when issued for an appraisal management company, shall state | ||||||
23 | the name of the registrant and the address of the principal | ||||||
24 | office. The registration is not transferable or assignable. |
| |||||||
| |||||||
1 | (225 ILCS 459/40)
| ||||||
2 | Sec. 40. Qualifications for registration. | ||||||
3 | (a) The Department may issue a certification of | ||||||
4 | registration to practice under this Act to any applicant who | ||||||
5 | applies to the Department on forms provided by the Department, | ||||||
6 | pays the required non-refundable fees fee , is qualified to | ||||||
7 | transact business in this State, and who provides the | ||||||
8 | following: | ||||||
9 | (1) the business name of the applicant seeking | ||||||
10 | registration; | ||||||
11 | (2) the business address or addresses and contact | ||||||
12 | information of the applicant seeking registration; | ||||||
13 | (3) if the business applicant is not a corporation that | ||||||
14 | is domiciled in this State, then the name and contact | ||||||
15 | information for the company's agent for service of process | ||||||
16 | in this State; | ||||||
17 | (4) the name, address, and contact information for any | ||||||
18 | individual or any corporation, partnership, limited | ||||||
19 | liability company, association, or other business | ||||||
20 | applicant that owns 10% or more of the appraisal management | ||||||
21 | company along with a completed criminal history records | ||||||
22 | background check as required in Section 68 ; | ||||||
23 | (5) the name, address, and contact information for a | ||||||
24 | designated controlling person; | ||||||
25 | (6) a certification that the applicant will utilize | ||||||
26 | Illinois licensed appraisers to provide appraisal services |
| |||||||
| |||||||
1 | within the State of Illinois; | ||||||
2 | (7) a certification that the applicant has a system in | ||||||
3 | place utilizing a licensed Illinois appraiser to review the | ||||||
4 | work of all employed and independent appraisers that are | ||||||
5 | performing real estate appraisal services in Illinois for | ||||||
6 | the appraisal management company on a periodic basis, | ||||||
7 | except for a quality control review, to verify that the | ||||||
8 | real estate appraisal assignments are being conducted in | ||||||
9 | accordance with USPAP; | ||||||
10 | (8) a certification that the applicant maintains a | ||||||
11 | detailed record of each service request that it receives | ||||||
12 | and the independent appraiser that performs the real estate | ||||||
13 | appraisal services for the appraisal management company; | ||||||
14 | (9) a certification that the employees of the appraisal | ||||||
15 | management company working on behalf of the appraisal | ||||||
16 | management company directly involved in providing | ||||||
17 | appraisal management services, will be appropriately | ||||||
18 | trained and familiar with the appraisal process to | ||||||
19 | completely provide appraisal management services;
| ||||||
20 | (10) an irrevocable Uniform Consent to Service of | ||||||
21 | Process, under rule; and | ||||||
22 | (11) a certification that the applicant shall comply | ||||||
23 | with all other requirements of this Act and rules | ||||||
24 | established for the implementation of this Act. | ||||||
25 | (b) Applicants have 3 years from the date of application to | ||||||
26 | complete the application process. If the process has not been |
| |||||||
| |||||||
1 | completed in 3 years, the application shall be denied, the fee | ||||||
2 | shall be forfeited, and the applicant must reapply and meet the | ||||||
3 | requirements in effect at the time of reapplication.
| ||||||
4 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
5 | (225 ILCS 459/43 new) | ||||||
6 | Sec. 43. Application denial. If an application is denied, | ||||||
7 | the applicant may, within 20 days after the date of the notice | ||||||
8 | of denial, make a written request to the Secretary for a | ||||||
9 | hearing on the application, and the Secretary shall set a time | ||||||
10 | and place for the hearing. The hearing shall be set for a date | ||||||
11 | after the receipt by the Secretary of the request for hearing, | ||||||
12 | and notice of the time and place of the hearing shall be | ||||||
13 | communicated to the applicant at least 10 days before the date | ||||||
14 | of the hearing. The applicant shall pay the actual cost of | ||||||
15 | making the transcript of the hearing before the Secretary | ||||||
16 | issues his or her decision following the hearing. If, following | ||||||
17 | the hearing, the application is denied, the Secretary shall | ||||||
18 | prepare and keep on file in his or her office a written order | ||||||
19 | of denial thereof that shall contain his or her findings and | ||||||
20 | the reasons supporting the denial and shall communicate a copy | ||||||
21 | to the applicant in a manner prescribed by the Department. A | ||||||
22 | decision may be reviewed as provided in Section 135. | ||||||
23 | (225 ILCS 459/47 new) | ||||||
24 | Sec. 47. Annual report; investigation; costs. Each |
| |||||||
| |||||||
1 | registrant shall annually file a report with the Secretary for | ||||||
2 | the calendar year period from January 1 through December 31, | ||||||
3 | giving relevant information as the Secretary may reasonably | ||||||
4 | require concerning, and for the purpose of examination for | ||||||
5 | compliance with federal and State regulations, the business and | ||||||
6 | operations during the preceding fiscal year period of each | ||||||
7 | registered appraisal management company conducted by the | ||||||
8 | registrant within the State. The report shall be made under | ||||||
9 | oath and shall be in the form prescribed by rule. The Secretary | ||||||
10 | may, at any time, investigate a registrant and every person, | ||||||
11 | partnership, association, limited liability company, | ||||||
12 | corporation, or other business entity who or which is engaged | ||||||
13 | in the business of operating an appraisal management company. | ||||||
14 | For that purpose, the Secretary shall have free access to the | ||||||
15 | offices and places of business and to records of all persons, | ||||||
16 | firms, partnerships, associations, limited liability companies | ||||||
17 | and members thereof, and corporations and to the officers and | ||||||
18 | directors thereof that relate to the appraisal management | ||||||
19 | company. The investigation may be conducted in conjunction with | ||||||
20 | representatives of other State agencies or agencies of another | ||||||
21 | state or of the United States as determined by the Secretary. | ||||||
22 | The Secretary may require by subpoena the attendance of and | ||||||
23 | examine under oath all persons whose testimony he or she may | ||||||
24 | require relative to the appraisal management company, and in | ||||||
25 | those cases the Secretary, or a representative whom he or she | ||||||
26 | may designate, may administer oaths to all persons called as |
| |||||||
| |||||||
1 | witnesses, and the Secretary, or a representative of the | ||||||
2 | Secretary, may conduct an audit, and there shall be paid to the | ||||||
3 | Secretary for each audit a fee, to be established by rule, for | ||||||
4 | each day or part thereof for each representative designated and | ||||||
5 | required to conduct the audit. | ||||||
6 | (225 ILCS 459/55)
| ||||||
7 | Sec. 55. Fees. | ||||||
8 | (a) The fees for the administration and enforcement of this | ||||||
9 | Act, including, but not limited to, original registration fees , | ||||||
10 | renewal fees , appraiser panel fees, national registry fees, and | ||||||
11 | restoration fees, shall be set by the Department by rule. The | ||||||
12 | fees shall not be refundable. | ||||||
13 | (b) All fees and other moneys collected under this Act | ||||||
14 | shall be deposited in the Appraisal Administration Fund.
| ||||||
15 | (c) The Department shall establish by rule a process for | ||||||
16 | calculating, collecting, and paying appraisal panel fees and | ||||||
17 | national registry fees in a manner consistent with Title XI of | ||||||
18 | the federal Financial Institutions Reform, Recovery, and | ||||||
19 | Enforcement Act of 1989. | ||||||
20 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
21 | (225 ILCS 459/65)
| ||||||
22 | Sec. 65. Disciplinary actions. | ||||||
23 | (a) The Department may refuse to issue or renew, or may | ||||||
24 | revoke, suspend, place on probation, reprimand, or take other |
| |||||||
| |||||||
1 | disciplinary or non-disciplinary action as the Department may | ||||||
2 | deem appropriate, including imposing fines not to exceed | ||||||
3 | $25,000 for each violation, with regard to any registration for | ||||||
4 | any one or combination of the following: | ||||||
5 | (1) Material misstatement in furnishing information to | ||||||
6 | the Department. | ||||||
7 | (2) Violations of this Act, or of the rules adopted | ||||||
8 | under this Act. | ||||||
9 | (3) Conviction of, or entry of a plea of guilty or nolo | ||||||
10 | contendere to any crime that is a felony under the laws of | ||||||
11 | the United States or any state or territory thereof or that | ||||||
12 | is a misdemeanor of which an essential element is | ||||||
13 | dishonesty, or any crime that is directly related to the | ||||||
14 | practice of the profession. | ||||||
15 | (4) Making any misrepresentation for the purpose of | ||||||
16 | obtaining registration or violating any provision of this | ||||||
17 | Act or the rules adopted under this Act pertaining to | ||||||
18 | advertising. | ||||||
19 | (5) Professional incompetence. | ||||||
20 | (6) Gross malpractice. | ||||||
21 | (7) Aiding or assisting another person in violating any | ||||||
22 | provision of this Act or rules adopted under this Act. | ||||||
23 | (8) Failing, within 30 days after requested, to provide | ||||||
24 | information in response to a written request made by the | ||||||
25 | Department. | ||||||
26 | (9) Engaging in dishonorable, unethical, or |
| |||||||
| |||||||
1 | unprofessional conduct of a character likely to deceive, | ||||||
2 | defraud, or harm the public. | ||||||
3 | (10) Discipline by another state, District of | ||||||
4 | Columbia, territory, or foreign nation, if at least one of | ||||||
5 | the grounds for the discipline is the same or substantially | ||||||
6 | equivalent to those set forth in this Section. | ||||||
7 | (11) A finding by the Department that the registrant, | ||||||
8 | after having his or her registration placed on probationary | ||||||
9 | status, has violated the terms of probation. | ||||||
10 | (12) Willfully making or filing false records or | ||||||
11 | reports in his or her practice, including, but not limited | ||||||
12 | to, false records filed with State agencies or departments. | ||||||
13 | (13) Filing false statements for collection of fees for | ||||||
14 | which services are not rendered. | ||||||
15 | (14) Practicing under a false or, except as provided by | ||||||
16 | law, an assumed name. | ||||||
17 | (15) Fraud or misrepresentation in applying for, or | ||||||
18 | procuring, a registration under this Act or in connection | ||||||
19 | with applying for renewal of a registration under this Act. | ||||||
20 | (16) Being adjudicated liable in a civil proceeding for | ||||||
21 | violation of a state or federal fair housing law. | ||||||
22 | (17) Failure to obtain or maintain the bond required | ||||||
23 | under Section 50 of this Act. | ||||||
24 | (18) Failure to pay appraiser panel fees or national | ||||||
25 | registry fees. | ||||||
26 | (b) The Department may refuse to issue or may suspend |
| |||||||
| |||||||
1 | without hearing as provided for in the Civil Administrative | ||||||
2 | Code the registration of any person who fails to file a return, | ||||||
3 | or to pay the tax, penalty or interest shown in a filed return, | ||||||
4 | or to pay any final assessment of the tax, penalty, or interest | ||||||
5 | as required by any tax Act administered by the Illinois | ||||||
6 | Department of Revenue, until such time as the requirements of | ||||||
7 | any such tax Act are satisfied.
| ||||||
8 | (c) An appraisal management company shall not be registered | ||||||
9 | or included on the national registry if the company, in whole | ||||||
10 | or in part, directly or indirectly, is owned by a person who | ||||||
11 | has had an appraiser license or certificate refused, denied, | ||||||
12 | canceled, surrendered in lieu of revocation, or revoked under | ||||||
13 | the Real Estate Appraiser Licensing Act of 2002 or the rules | ||||||
14 | adopted under that Act, or similar discipline by another state, | ||||||
15 | the District of Columbia, a territory, a foreign nation, a | ||||||
16 | governmental agency, or an entity authorized to impose | ||||||
17 | discipline if at least one of the grounds for that discipline | ||||||
18 | is the same as or the equivalent of one of the grounds for | ||||||
19 | which a licensee may be disciplined as set forth under this | ||||||
20 | Section. | ||||||
21 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
22 | (225 ILCS 459/67 new) | ||||||
23 | Sec. 67. Good moral character. If an applicant, or an | ||||||
24 | ownership interest of the applicant, has had a license or | ||||||
25 | registration revoked on a prior occasion, has been found to |
| |||||||
| |||||||
1 | have committed any of the practices enumerated in Section 65, | ||||||
2 | has been convicted of or entered a plea of guilty or nolo | ||||||
3 | contendere to forgery, embezzlement, obtaining money under | ||||||
4 | false pretenses, larceny, extortion, conspiracy to defraud, or | ||||||
5 | a similar offense or offenses, or has been convicted of a | ||||||
6 | felony involving moral turpitude in a court of competent | ||||||
7 | jurisdiction in this State or any other state, district, or | ||||||
8 | territory of the United States or of a foreign country, the | ||||||
9 | Department may consider the prior revocation, conduct, or | ||||||
10 | conviction in its determination of the applicant's moral | ||||||
11 | character and whether to grant the applicant's registration. In | ||||||
12 | its consideration of the prior revocation, conduct, or | ||||||
13 | conviction, the Department shall take into account the nature | ||||||
14 | of the conduct, any aggravating or extenuating circumstances, | ||||||
15 | the time elapsed since the revocation, conduct, or conviction, | ||||||
16 | the rehabilitation or restitution performed by the applicant, | ||||||
17 | and any other factors that the Department deems relevant. When | ||||||
18 | an applicant has made a false statement of material fact on his | ||||||
19 | or her application, the false statement may in itself be | ||||||
20 | sufficient grounds to revoke or refuse to issue a registration. | ||||||
21 | (225 ILCS 459/68 new) | ||||||
22 | Sec. 68. Criminal history records background check. Each | ||||||
23 | individual applicant or controlling person on behalf of a | ||||||
24 | business entity that applies for registration or restoration | ||||||
25 | shall have his or her fingerprints submitted to the Department |
| |||||||
| |||||||
1 | of State Police in an electronic format that complies with the | ||||||
2 | form and manner for requesting and furnishing criminal history | ||||||
3 | record information as prescribed by the Department of State | ||||||
4 | Police. These fingerprints shall be checked against the | ||||||
5 | Department of State Police and Federal Bureau of Investigation | ||||||
6 | criminal history record databases now and hereafter filed. The | ||||||
7 | Department of State Police shall charge applicants a fee for | ||||||
8 | conducting the criminal history records background check, | ||||||
9 | which shall be deposited into the State Police Services Fund | ||||||
10 | and shall not exceed the actual cost of the criminal history | ||||||
11 | records background check. The Department of State Police shall | ||||||
12 | furnish, pursuant to positive identification, records of | ||||||
13 | Illinois convictions to the Department. The Department may | ||||||
14 | require an applicant to pay a separate fingerprinting fee, | ||||||
15 | either to the Department or to a vendor. The Department may | ||||||
16 | adopt any rules necessary to implement this Section. | ||||||
17 | (225 ILCS 459/160)
| ||||||
18 | Sec. 160. Business practice provisions; standards of | ||||||
19 | practice. | ||||||
20 | (a) The Department may adopt by rule the Uniform Standards | ||||||
21 | of Professional Appraisal Practice as published from time to | ||||||
22 | time by the Appraisal Standards Board of the Appraisal | ||||||
23 | Foundation. Appraisal management companies shall not interfere | ||||||
24 | with adherence to the Uniform Standards of Professional | ||||||
25 | Appraisal Practice or the Real Estate Appraiser Act of 2002 or |
| |||||||
| |||||||
1 | a subsequent Act by individuals licensed under the respective | ||||||
2 | Acts. | ||||||
3 | (b) All payment policies from registrants under this Act to | ||||||
4 | appraisers shall be written and definitive in nature.
| ||||||
5 | (c) In the event of a value dispute or a requested | ||||||
6 | reconsideration of value, the appraisal management company | ||||||
7 | shall deliver all information that supports an increase or | ||||||
8 | decrease in value to the appraiser. This information may | ||||||
9 | include, but is not limited to, additional comparable sales. | ||||||
10 | (d) Each entity registered under this Act shall designate a | ||||||
11 | controlling person who is responsible to assure that the | ||||||
12 | company operates in compliance with this Act. The company shall | ||||||
13 | file a form provided by the Department indicating the company's | ||||||
14 | designation of the controlling person and such individual's | ||||||
15 | acceptance of the responsibility. A registrant shall notify the | ||||||
16 | Department of any change in its controlling person within 30 | ||||||
17 | days. Any registrant who does not comply with this subsection | ||||||
18 | (d) shall have its registration suspended under the provisions | ||||||
19 | set forth in this Act until the registrant complies with this | ||||||
20 | Section. Any individual registrant who operates as a sole | ||||||
21 | proprietorship shall be considered a designated controlling | ||||||
22 | person for the purposes of this Act. | ||||||
23 | (e)
Appraisal management companies or employees of an | ||||||
24 | appraisal management company involved in a real estate | ||||||
25 | transaction who have a reasonable basis to believe that an | ||||||
26 | appraiser involved in the preparation of an appraisal for the |
| |||||||
| |||||||
1 | real estate transaction has failed to comply with the Uniform | ||||||
2 | Standards of Professional Appraisal Practice, has violated | ||||||
3 | this Act or its rules, or has otherwise engaged in unethical | ||||||
4 | conduct shall report the matter to the Department. Any | ||||||
5 | registrant, employee, or individual acting on behalf of a | ||||||
6 | registrant, acting in good faith, and not in a willful and | ||||||
7 | wanton manner, in complying with this Act by reporting the | ||||||
8 | conduct to the Department shall not, as a result of such | ||||||
9 | actions, be subject to criminal prosecution or civil damages. | ||||||
10 | (f) Appraisal management companies are required to be in | ||||||
11 | compliance with the appraisal independence standards | ||||||
12 | established under Section 129E of the federal Truth in Lending | ||||||
13 | Act, including the requirement that fee appraisers be | ||||||
14 | compensated at a customary and reasonable rate when the | ||||||
15 | appraisal management company is providing services for a | ||||||
16 | consumer credit transaction secured by the principal dwelling | ||||||
17 | of a consumer. To the extent permitted by federal law or | ||||||
18 | regulation, the
Department shall formulate rules pertaining to | ||||||
19 | customary and reasonable rates of
compensation for fee | ||||||
20 | appraisers. The appraisal management company must certify
to | ||||||
21 | the Department that it has policies and procedures in place to | ||||||
22 | be in compliance
under the Final Interim Rule of the federal | ||||||
23 | Dodd-Frank Wall Street Reform and Consumer Protection Act.
| ||||||
24 | (g) No appraisal management company procuring or | ||||||
25 | facilitating an appraisal may have a direct or indirect | ||||||
26 | interest, financial or otherwise, in the real estate or the |
| |||||||
| |||||||
1 | transaction that is the subject of the appraisal, as defined by | ||||||
2 | the federal Dodd-Frank Wall Street Reform and Consumer | ||||||
3 | Protection Act, any amendments thereto, or successor acts or | ||||||
4 | other applicable provisions of federal law or regulations.
| ||||||
5 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
6 | (225 ILCS 459/163 new) | ||||||
7 | Sec. 163. Appraiser panel; annual size calculation. An | ||||||
8 | appraiser is deemed part of the appraisal management company's | ||||||
9 | appraiser panel as of the earliest date the appraisal | ||||||
10 | management company accepts the appraiser for consideration for | ||||||
11 | future appraisal assignments in covered transactions or | ||||||
12 | engages the appraiser to perform one or more appraisal | ||||||
13 | assignments on behalf of a creditor or secondary mortgage | ||||||
14 | market participant in a covered transaction, including an | ||||||
15 | affiliate of such a creditor or participant. An appraiser is | ||||||
16 | considered to be part of the appraisal management company's | ||||||
17 | appraiser panel if deemed to remain on the panel until: (1) the | ||||||
18 | date on which the appraisal management company sends written | ||||||
19 | notice to the appraiser removing the appraiser from the | ||||||
20 | appraiser panel; (2) the date the appraisal management company | ||||||
21 | receives written notice from the appraiser asking to be removed | ||||||
22 | from the appraiser panel; or (3) the date the appraisal | ||||||
23 | management company receives notice of the death or incapacity | ||||||
24 | of the appraiser. If an appraiser is removed from an appraisal | ||||||
25 | management company's appraiser panel but the appraisal |
| |||||||
| |||||||
1 | management company subsequently accepts the appraiser for | ||||||
2 | consideration for future assignments or engages the appraiser | ||||||
3 | at any time during the 12 months after the appraiser's removal, | ||||||
4 | the removal would be deemed not to have occurred and the | ||||||
5 | appraiser is deemed to have been part of the appraisal | ||||||
6 | management company's appraiser panel without interruption. | ||||||
7 | (225 ILCS 459/177 new) | ||||||
8 | Sec. 177. Administrator, executor, or guardian. If the | ||||||
9 | ownership of an appraisal management company registered under | ||||||
10 | this Act is held or contained in an estate subject to the | ||||||
11 | control and supervision of an administrator, executor, or | ||||||
12 | guardian appointed, approved, or by a court of the State of | ||||||
13 | Illinois, having jurisdiction so to do, the administrator, | ||||||
14 | executor, or guardian may, upon the entry of an order by the | ||||||
15 | court granting leave to continue the operation of the appraisal | ||||||
16 | management company, apply to the Secretary for a registration | ||||||
17 | under this Act. If the administrator, executor, or guardian | ||||||
18 | applies for an appraisal management company registration | ||||||
19 | pursuant to this Section and complies with all of the | ||||||
20 | provisions of this Act relating to the application for an | ||||||
21 | appraisal management company registration, the Secretary may | ||||||
22 | issue to the applicant an appraisal management company | ||||||
23 | registration. An appraisal management company registration | ||||||
24 | issued to an appraisal management company, for which an | ||||||
25 | application for a registration is sought under this Section, if |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | not previously surrendered, lapsed, or revoked, shall be | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | surrendered, revoked, or otherwise terminated before a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | registration is issued pursuant to the application made under | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | this Section.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
5 | Section 99. Effective date. This Act takes effect upon | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | becoming law.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||