| |||||||
| |||||||
| |||||||
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 Real Estate Appraiser Licensing Act of 2002 | ||||||
5 | is amended by changing Sections 1-10, 5-10, 5-15, 5-20, 5-22, | ||||||
6 | 5-25, 5-55, 20-5, and 20-10 and by adding Section 5-7 as | ||||||
7 | follows:
| ||||||
8 | (225 ILCS 458/1-10)
| ||||||
9 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
10 | Sec. 1-10. Definitions. As used in this Act, unless the | ||||||
11 | context
otherwise requires:
| ||||||
12 | "Accredited college or university, junior college, or | ||||||
13 | community college" means a college or university, junior | ||||||
14 | college, or community college that is approved or accredited by | ||||||
15 | the Board of Higher Education, a regional or national | ||||||
16 | accreditation association, or by an accrediting agency that is | ||||||
17 | recognized by the U.S. Secretary of Education.
| ||||||
18 | "Address of record" means the designated address recorded | ||||||
19 | by the Department in the applicant's or licensee's application | ||||||
20 | file or license file as maintained by the Department's | ||||||
21 | licensure maintenance unit. It is the duty of the applicant or | ||||||
22 | licensee to inform the Department of any change of address and | ||||||
23 | those changes must be made either through the Department's |
| |||||||
| |||||||
1 | website or by contacting the Department. | ||||||
2 | "Applicant" means person who applies to the Department
for | ||||||
3 | a license under this Act.
| ||||||
4 | "Appraisal" means
(noun) the act or process of developing | ||||||
5 | an opinion
of value; an
opinion of value (adjective) of or | ||||||
6 | pertaining to appraising
and related functions, such as | ||||||
7 | appraisal practice or appraisal services. | ||||||
8 | "Appraisal assignment" means a valuation service provided | ||||||
9 | as a consequence of an agreement between an appraiser and a | ||||||
10 | client. | ||||||
11 | "Appraisal consulting" means the act or process of | ||||||
12 | developing an analysis, recommendation, or opinion to solve a | ||||||
13 | problem, where an opinion of value is a component of the | ||||||
14 | analysis leading to the assignment results. | ||||||
15 | "Appraisal firm" means an appraisal entity that is 100% | ||||||
16 | owned and controlled by a person or persons licensed in | ||||||
17 | Illinois as a certified general real estate appraiser or a | ||||||
18 | certified residential real estate appraiser. "Appraisal firm" | ||||||
19 | does not include an appraisal management company. | ||||||
20 | "Appraisal management company" means any corporation, | ||||||
21 | limited liability company, partnership, sole proprietorship, | ||||||
22 | subsidiary, unit, or other business entity that directly or | ||||||
23 | indirectly performs the following appraisal management | ||||||
24 | services : (1) provides appraisal management services to | ||||||
25 | creditors or secondary mortgage market participants; (2) | ||||||
26 | provides appraisal management services in connection with |
| |||||||
| |||||||
1 | valuing the consumer's principal dwelling as security for a | ||||||
2 | consumer credit transaction (including consumer credit | ||||||
3 | transactions incorporated into securitizations); (3) within a | ||||||
4 | given year, oversees an appraiser panel of any size of | ||||||
5 | State-certified appraisers in Illinois; and (4) any appraisal | ||||||
6 | management company that, within a given year, oversees an | ||||||
7 | appraiser panel of 16 or more State-certified appraisers in | ||||||
8 | Illinois or 25 or more State-certified or State-licensed | ||||||
9 | appraisers in 2 or more jurisdictions shall be subject to the | ||||||
10 | appraisal management company national registry fee in addition | ||||||
11 | to the appraiser panel fee. "Appraisal management company" | ||||||
12 | includes a hybrid entity administers networks of independent | ||||||
13 | contractors or employee appraisers to perform real estate | ||||||
14 | appraisal assignments for clients; (2) receives requests for | ||||||
15 | real estate appraisal services from clients and, for a fee paid | ||||||
16 | by the client, enters into an agreement with one or more | ||||||
17 | independent appraisers to perform the real estate appraisal | ||||||
18 | services contained in the request; or (3) otherwise serves as a | ||||||
19 | third-party broker of appraisal management services between | ||||||
20 | clients and appraisers. "Appraisal management company" does | ||||||
21 | not include an appraisal firm . | ||||||
22 | "Appraisal practice" means valuation services performed by | ||||||
23 | an individual acting as an appraiser, including, but not | ||||||
24 | limited to, appraisal, appraisal review, or appraisal | ||||||
25 | consulting.
| ||||||
26 | "Appraisal report" means any communication, written or |
| |||||||
| |||||||
1 | oral, of an appraisal or appraisal review that is transmitted | ||||||
2 | to a client upon completion of an assignment.
| ||||||
3 | "Appraisal review" means the act or process of developing | ||||||
4 | and communicating an opinion about the quality of another | ||||||
5 | appraiser's work that was performed as part of an appraisal, | ||||||
6 | appraisal review, or appraisal assignment.
| ||||||
7 | "Appraisal Subcommittee" means the Appraisal Subcommittee | ||||||
8 | of the Federal
Financial Institutions
Examination Council as | ||||||
9 | established by Title XI.
| ||||||
10 | "Appraiser" means a person who performs
real estate or real | ||||||
11 | property
appraisals.
| ||||||
12 | "AQB" means the Appraisal Qualifications Board of the | ||||||
13 | Appraisal Foundation.
| ||||||
14 | "Associate real estate trainee appraiser" means an | ||||||
15 | entry-level appraiser who holds
a license of this | ||||||
16 | classification under this Act with restrictions as to the scope | ||||||
17 | of practice
in
accordance with this Act.
| ||||||
18 | "Board" means the Real Estate Appraisal Administration and | ||||||
19 | Disciplinary Board.
| ||||||
20 | "Broker price opinion" means an estimate or analysis of the | ||||||
21 | probable selling price of a particular interest in real estate, | ||||||
22 | which may provide a varying level of detail about the | ||||||
23 | property's condition, market, and neighborhood and information | ||||||
24 | on comparable sales. The activities of a real estate broker or | ||||||
25 | managing broker engaging in the ordinary course of business as | ||||||
26 | a broker, as defined in this Section, shall not be considered a |
| |||||||
| |||||||
1 | broker price opinion if no compensation is paid to the broker | ||||||
2 | or managing broker, other than compensation based upon the sale | ||||||
3 | or rental of real estate. | ||||||
4 | "Classroom hour" means 50 minutes of instruction out of | ||||||
5 | each 60 minute
segment of coursework.
| ||||||
6 | "Client" means the party or parties who engage an appraiser | ||||||
7 | by employment or contract in a specific appraisal assignment.
| ||||||
8 | "Comparative market analysis" is an analysis or opinion | ||||||
9 | regarding pricing, marketing, or financial aspects relating to | ||||||
10 | a specified interest or interests in real estate that may be | ||||||
11 | based upon an analysis of comparative market data, the | ||||||
12 | expertise of the real estate broker or managing broker, and | ||||||
13 | such other factors as the broker or managing broker may deem | ||||||
14 | appropriate in developing or preparing such analysis or | ||||||
15 | opinion. The activities of a real estate broker or managing | ||||||
16 | broker engaging in the ordinary course of business as a broker, | ||||||
17 | as defined in this Section, shall not be considered a | ||||||
18 | comparative market analysis if no compensation is paid to the | ||||||
19 | broker or managing broker, other than compensation based upon | ||||||
20 | the sale or rental of real estate. | ||||||
21 | "Coordinator" means the Coordinator of Real Estate | ||||||
22 | Appraisal of the Division of Professional Regulation of the | ||||||
23 | Department of Financial and Professional Regulation.
| ||||||
24 | "Department" means the Department of Financial and | ||||||
25 | Professional Regulation.
| ||||||
26 | "Federal financial institutions regulatory agencies" means |
| |||||||
| |||||||
1 | the Board of
Governors of the Federal Reserve
System, the | ||||||
2 | Federal Deposit Insurance Corporation, the Office of the
| ||||||
3 | Comptroller of the Currency, the
Consumer Financial Protection | ||||||
4 | Bureau, and the National Credit Union Administration.
| ||||||
5 | "Federally related transaction" means any real | ||||||
6 | estate-related financial
transaction in which a federal
| ||||||
7 | financial institutions regulatory agency
engages in, contracts | ||||||
8 | for, or
regulates and requires the services
of an appraiser.
| ||||||
9 | "Financial institution" means any bank, savings bank, | ||||||
10 | savings and loan
association, credit union,
mortgage broker, | ||||||
11 | mortgage banker, licensee under the Consumer Installment Loan
| ||||||
12 | Act or the Sales
Finance Agency Act, or a corporate fiduciary, | ||||||
13 | subsidiary, affiliate, parent
company, or holding company
of | ||||||
14 | any such licensee, or any institution involved in real estate | ||||||
15 | financing that
is regulated by state or
federal law.
| ||||||
16 | "Multi-state licensing system" means a web-based platform | ||||||
17 | that allows an applicant to submit his or her application or | ||||||
18 | license renewal application to the Department online. | ||||||
19 | "Person" means an individual, entity, sole proprietorship, | ||||||
20 | corporation, limited liability company, partnership, and joint | ||||||
21 | venture, foreign or domestic, except that when the context | ||||||
22 | otherwise requires, the term may refer to more than one | ||||||
23 | individual or other described entity. | ||||||
24 | "Real estate" means an identified parcel or tract of land, | ||||||
25 | including any
improvements.
| ||||||
26 | "Real estate related financial transaction" means any |
| |||||||
| |||||||
1 | transaction involving:
| ||||||
2 | (1) the sale, lease, purchase, investment in, or | ||||||
3 | exchange of real
property,
including interests
in property | ||||||
4 | or the financing thereof;
| ||||||
5 | (2) the refinancing of real property or interests in | ||||||
6 | real property; and
| ||||||
7 | (3) the use of real property or interest in property as | ||||||
8 | security for a
loan or
investment,
including mortgage | ||||||
9 | backed securities.
| ||||||
10 | "Real property" means the interests, benefits, and rights | ||||||
11 | inherent in the
ownership of real estate.
| ||||||
12 | "Secretary" means the Secretary of Financial and | ||||||
13 | Professional Regulation.
| ||||||
14 | "State certified general real estate
appraiser" means an | ||||||
15 | appraiser who holds a
license of this classification under this | ||||||
16 | Act
and such classification applies to
the appraisal of all | ||||||
17 | types of real property without restrictions as to
the scope of | ||||||
18 | practice.
| ||||||
19 | "State certified residential real estate
appraiser" means | ||||||
20 | an appraiser who
holds a
license of this classification
under | ||||||
21 | this Act
and such classification applies to
the appraisal of
| ||||||
22 | one to 4 units of
residential real property without regard to | ||||||
23 | transaction value or complexity,
but with restrictions as to | ||||||
24 | the
scope of practice
in a federally related transaction in | ||||||
25 | accordance with Title
XI, the provisions of USPAP,
criteria | ||||||
26 | established by the AQB, and further defined by rule.
|
| |||||||
| |||||||
1 | "Supervising appraiser" means either (i) an appraiser who | ||||||
2 | holds a valid license under this Act as either a State | ||||||
3 | certified general real estate appraiser or a State certified | ||||||
4 | residential real estate appraiser, who co-signs an appraisal | ||||||
5 | report for an associate real estate trainee appraiser or (ii) a | ||||||
6 | State certified general real estate appraiser who holds a valid | ||||||
7 | license under this Act who co-signs an appraisal report for a | ||||||
8 | State certified residential real estate appraiser on | ||||||
9 | properties other than one to 4 units of residential real | ||||||
10 | property without regard to transaction value or complexity.
| ||||||
11 | "Title XI" means Title XI of the federal Financial | ||||||
12 | Institutions Reform,
Recovery and
Enforcement Act of 1989.
| ||||||
13 | "USPAP" means the Uniform Standards of Professional | ||||||
14 | Appraisal Practice as
promulgated by the
Appraisal Standards | ||||||
15 | Board pursuant to Title XI and by rule.
| ||||||
16 | "Valuation services" means services pertaining to aspects | ||||||
17 | of property value. | ||||||
18 | (Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15 .)
| ||||||
19 | (225 ILCS 458/5-7 new) | ||||||
20 | Sec. 5-7. Multi-state licensing system. The Secretary may | ||||||
21 | require participation in a third-party, multi-state licensing | ||||||
22 | system for licensing under this Act. The multi-state licensing | ||||||
23 | system may share regulatory information and maintain records in | ||||||
24 | compliance with the provisions of this Act. The multi-state | ||||||
25 | licensing system may charge an applicant an administration fee.
|
| |||||||
| |||||||
1 | (225 ILCS 458/5-10)
| ||||||
2 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
3 | Sec. 5-10. Application for State
certified general real | ||||||
4 | estate appraiser.
| ||||||
5 | (a) Every person who
desires to obtain a State certified | ||||||
6 | general real estate appraiser license
shall:
| ||||||
7 | (1) apply to the Department
on forms provided by the | ||||||
8 | Department , or through a multi-state licensing system as | ||||||
9 | designated by the Secretary,
accompanied by the required | ||||||
10 | fee;
| ||||||
11 | (2) be at least 18 years of age;
| ||||||
12 | (3) (blank);
| ||||||
13 | (4) personally take and pass an examination authorized | ||||||
14 | by the Department
and endorsed
by the AQB;
| ||||||
15 | (5) prior to taking the examination, provide evidence | ||||||
16 | to the Department, or through a multi-state licensing | ||||||
17 | system as designated by the Secretary, in Modular Course | ||||||
18 | format, with each module conforming to the Required Core | ||||||
19 | Curriculum established and adopted by the AQB,
that he or | ||||||
20 | she
has successfully completed the prerequisite
classroom | ||||||
21 | hours of instruction in appraising as established by the | ||||||
22 | AQB and by
rule; and
| ||||||
23 | (6) prior to taking the examination, provide evidence
| ||||||
24 | to the Department , or through a multi-state licensing | ||||||
25 | system as designated by the Secretary,
that he or she has |
| |||||||
| |||||||
1 | successfully completed the prerequisite
experience and | ||||||
2 | educational requirements in appraising as established by | ||||||
3 | AQB and by rule.
| ||||||
4 | (b) Applicants must provide evidence to the Department , or | ||||||
5 | through a multi-state licensing system as designated by the | ||||||
6 | Secretary, of holding a Bachelor's degree or higher from an | ||||||
7 | accredited college or university. | ||||||
8 | (Source: P.A. 98-1109, eff. 1-1-15 .)
| ||||||
9 | (225 ILCS 458/5-15)
| ||||||
10 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
11 | Sec. 5-15. Application for State certified residential | ||||||
12 | real estate
appraiser. Every person who
desires to obtain a | ||||||
13 | State certified residential real estate appraiser license
| ||||||
14 | shall:
| ||||||
15 | (1) apply to the Department
on forms provided by the | ||||||
16 | Department , or through a multi-state licensing system as | ||||||
17 | designated by the Secretary,
accompanied by the required | ||||||
18 | fee;
| ||||||
19 | (2) be at least 18 years of age;
| ||||||
20 | (3) (blank);
| ||||||
21 | (4) personally take and pass an examination authorized | ||||||
22 | by the Department
and endorsed
by
the AQB;
| ||||||
23 | (5) prior to taking the examination, provide evidence
| ||||||
24 | to the Department, or through a multi-state licensing | ||||||
25 | system as designated by the Secretary, in Modular Course |
| |||||||
| |||||||
1 | format, with each module conforming to the Required Core | ||||||
2 | Curriculum established and adopted by the AQB,
that he or | ||||||
3 | she has successfully completed the prerequisite
classroom | ||||||
4 | hours of instruction in appraising as established by the | ||||||
5 | AQB and by
rule; and
| ||||||
6 | (6) prior to taking the examination, provide evidence
| ||||||
7 | to the Department , or through a multi-state licensing | ||||||
8 | system as designated by the Secretary,
that he or she has | ||||||
9 | successfully completed the prerequisite
experience and | ||||||
10 | educational requirements as established by AQB and by rule.
| ||||||
11 | (Source: P.A. 100-201, eff. 8-18-17.)
| ||||||
12 | (225 ILCS 458/5-20)
| ||||||
13 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
14 | Sec. 5-20. Application for associate real estate trainee
| ||||||
15 | appraiser. Every person who desires to obtain an associate real | ||||||
16 | estate trainee appraiser
license shall:
| ||||||
17 | (1) apply to the Department
on forms provided by the | ||||||
18 | Department , or through a multi-state licensing system as | ||||||
19 | designated by the Secretary,
accompanied by the required
| ||||||
20 | fee;
| ||||||
21 | (2) be at least 18 years of age;
| ||||||
22 | (3) provide evidence of having attained a high school | ||||||
23 | diploma or completed
an
equivalent course of
study as | ||||||
24 | determined by an examination conducted
or accepted
by the | ||||||
25 | Illinois State Board of
Education;
|
| |||||||
| |||||||
1 | (4) personally take and pass an examination authorized | ||||||
2 | by the Department; and
| ||||||
3 | (5) prior to taking the examination, provide evidence
| ||||||
4 | to the Department , or through a multi-state licensing | ||||||
5 | system as designated by the Secretary,
that he or she has | ||||||
6 | successfully
completed
the prerequisite qualifying and any | ||||||
7 | conditional education requirements as established by
rule.
| ||||||
8 | (Source: P.A. 98-1109, eff. 1-1-15 .)
| ||||||
9 | (225 ILCS 458/5-22) | ||||||
10 | (Section scheduled to be repealed on January 1, 2022) | ||||||
11 | Sec. 5-22. Criminal history records check. | ||||||
12 | (a) Each applicant for licensure by examination or | ||||||
13 | restoration shall have his or her fingerprints submitted to the | ||||||
14 | Department of State Police in an electronic format that | ||||||
15 | complies with the form and manner for requesting and furnishing | ||||||
16 | criminal history record information as prescribed by the | ||||||
17 | Department of State Police. These fingerprints shall be checked | ||||||
18 | against the Department of State Police and Federal Bureau of | ||||||
19 | Investigation criminal history record databases now and | ||||||
20 | hereafter filed. The Department of State Police shall charge | ||||||
21 | applicants a fee for conducting the criminal history records | ||||||
22 | check, which shall be deposited into the State Police Services | ||||||
23 | Fund and shall not exceed the actual cost of the records check. | ||||||
24 | The Department of State Police shall
furnish, pursuant to | ||||||
25 | positive identification, records of Illinois convictions to |
| |||||||
| |||||||
1 | the Department. The Department may require applicants to pay a | ||||||
2 | separate fingerprinting fee, either to the Department or to a | ||||||
3 | vendor. The Department may adopt any rules necessary to | ||||||
4 | implement this Section.
| ||||||
5 | (b) The Secretary may designate a multi-state licensing | ||||||
6 | system to perform the functions described in subsection (a). | ||||||
7 | The Department may require applicants to pay a separate | ||||||
8 | fingerprinting fee, either to the Department or to the | ||||||
9 | multi-state licensing system. The Department may adopt any | ||||||
10 | rules necessary to implement this subsection. | ||||||
11 | (Source: P.A. 98-1109, eff. 1-1-15 .)
| ||||||
12 | (225 ILCS 458/5-25)
| ||||||
13 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
14 | Sec. 5-25. Renewal of license.
| ||||||
15 | (a) The expiration date and renewal period
for a State | ||||||
16 | certified general
real estate appraiser license
or a State | ||||||
17 | certified residential
real estate appraiser license issued | ||||||
18 | under
this Act shall be set by rule.
Except as otherwise | ||||||
19 | provided in subsections (b) and (f) of this Section, the
holder | ||||||
20 | of a license may renew
the license within 90 days preceding the | ||||||
21 | expiration date by:
| ||||||
22 | (1) completing and submitting to the Department , or | ||||||
23 | through a multi-state licensing system as designated by the | ||||||
24 | Secretary,
a renewal application form as
provided by
the | ||||||
25 | Department;
|
| |||||||
| |||||||
1 | (2) paying the required fees; and
| ||||||
2 | (3) providing evidence to the Department, or through a | ||||||
3 | multi-state licensing system as designated by the | ||||||
4 | Secretary, of successful completion of the continuing
| ||||||
5 | education requirements through courses approved by the | ||||||
6 | Department
from
education providers licensed by the | ||||||
7 | Department, as established by the AQB
and by rule.
| ||||||
8 | (b) A State certified general real estate appraiser
or | ||||||
9 | State certified
residential real estate
appraiser whose | ||||||
10 | license under this Act has expired may renew
the license for a | ||||||
11 | period of
2 years following the expiration date by complying | ||||||
12 | with the requirements of
paragraphs (1), (2),
and (3) of | ||||||
13 | subsection (a)
of this Section and paying any late penalties | ||||||
14 | established by rule.
| ||||||
15 | (c) (Blank).
| ||||||
16 | (d) The expiration date and renewal period for an associate | ||||||
17 | real estate
trainee appraiser license issued under this
Act | ||||||
18 | shall be set by rule. Except as otherwise provided in | ||||||
19 | subsections (e) and
(f) of this Section, the holder
of an | ||||||
20 | associate real estate appraiser license may renew the license | ||||||
21 | within 90
days preceding the expiration date by:
| ||||||
22 | (1) completing and submitting to the Department , or | ||||||
23 | through a multi-state licensing system as designated by the | ||||||
24 | Secretary,
a renewal application form as
provided by the | ||||||
25 | Department;
| ||||||
26 | (2) paying the required fees; and
|
| |||||||
| |||||||
1 | (3) providing evidence to the Department, or through a | ||||||
2 | multi-state licensing system as designated by the | ||||||
3 | Secretary, of successful completion of the continuing
| ||||||
4 | education requirements through
courses approved by the | ||||||
5 | Department
from education providers approved
by the | ||||||
6 | Department, as established by rule.
| ||||||
7 | (e) Any associate real estate appraiser trainee whose | ||||||
8 | license under this Act has
expired may
renew the license for a | ||||||
9 | period of 2 years following the expiration date
by complying | ||||||
10 | with the requirements of paragraphs
(1), (2), and (3) of | ||||||
11 | subsection (d) of this Section and paying any late
penalties
as | ||||||
12 | established by rule. An associate real estate trainee appraiser | ||||||
13 | license may not be renewed more than 2 times.
| ||||||
14 | (f) Notwithstanding subsections (c) and (e), an
appraiser | ||||||
15 | whose license
under this Act has expired may renew or convert | ||||||
16 | the license without
paying any lapsed renewal
fees or late | ||||||
17 | penalties if the license expired while the appraiser was:
| ||||||
18 | (1) on active duty with the United States Armed | ||||||
19 | Services;
| ||||||
20 | (2) serving as the Coordinator
of Real Estate Appraisal | ||||||
21 | or an employee of
the Department
who was required to | ||||||
22 | surrender his or her license during the term of
employment.
| ||||||
23 | Application for renewal must be made within 2 years | ||||||
24 | following
the termination of the military service or related | ||||||
25 | education, training, or
employment. The
licensee shall furnish | ||||||
26 | the Department
with an affidavit that he or she was so engaged.
|
| |||||||
| |||||||
1 | (g) The Department
shall provide reasonable care and due | ||||||
2 | diligence to ensure that each
licensee under this Act
is | ||||||
3 | provided with a renewal application at least 90 days prior to | ||||||
4 | the expiration
date, but
each licensee is responsible to
timely | ||||||
5 | renew or convert his or her license prior to its expiration | ||||||
6 | date.
| ||||||
7 | (Source: P.A. 96-844, eff. 12-23-09 .)
| ||||||
8 | (225 ILCS 458/5-55)
| ||||||
9 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
10 | Sec. 5-55. Fees. | ||||||
11 | (a) The Department
shall establish rules for fees to be | ||||||
12 | paid by applicants and licensees to
cover the reasonable costs
| ||||||
13 | of the Department
in administering and enforcing the provisions | ||||||
14 | of this Act. The Department, with the advice of the Board,
may
| ||||||
15 | also establish rules for
general fees to cover the reasonable | ||||||
16 | expenses of carrying out other functions
and responsibilities | ||||||
17 | under
this Act.
| ||||||
18 | (b) The administration fee charged by the multi-state | ||||||
19 | licensing system shall be paid directly to the multi-state | ||||||
20 | licensing system. | ||||||
21 | (Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
| ||||||
22 | (225 ILCS 458/20-5)
| ||||||
23 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
24 | Sec. 20-5. Education providers.
|
| |||||||
| |||||||
1 | (a) Beginning July 1, 2002, only education providers | ||||||
2 | licensed or otherwise approved by the Department
may
provide | ||||||
3 | the qualifying and continuing education courses required for | ||||||
4 | licensure
under this Act.
| ||||||
5 | (b) A person or entity seeking to be licensed as an | ||||||
6 | education
provider under this Act
shall provide satisfactory | ||||||
7 | evidence of the following:
| ||||||
8 | (1) a sound financial base for establishing, | ||||||
9 | promoting, and delivering the
necessary
courses;
| ||||||
10 | (2) a sufficient number of qualified instructors;
| ||||||
11 | (3) adequate support personnel to assist with | ||||||
12 | administrative matters and
technical
assistance;
| ||||||
13 | (4) a written policy dealing with procedures for | ||||||
14 | management of grievances
and fee refunds;
| ||||||
15 | (5) a qualified administrator, who is responsible for | ||||||
16 | the
administration of the
education provider, courses, and | ||||||
17 | the actions of the instructors; and
| ||||||
18 | (6) any other requirements as provided by rule.
| ||||||
19 | (c) All applicants for an education provider's license | ||||||
20 | shall make initial
application to the Department
on forms | ||||||
21 | provided by the Department , or through a multi-state licensing | ||||||
22 | system as designated by the Secretary,
and pay the appropriate | ||||||
23 | fee as
provided by rule. The term, expiration date, and renewal | ||||||
24 | of an education
provider's license shall be established by | ||||||
25 | rule.
| ||||||
26 | (d) An education provider shall provide each successful |
| |||||||
| |||||||
1 | course participant
with a certificate of
completion signed by | ||||||
2 | the school administrator. The format and content of the
| ||||||
3 | certificate shall be specified by rule.
| ||||||
4 | (e) All education providers shall provide to the Department
| ||||||
5 | a monthly roster of all
successful course
participants as | ||||||
6 | provided by rule.
| ||||||
7 | (Source: P.A. 98-1109, eff. 1-1-15 .)
| ||||||
8 | (225 ILCS 458/20-10)
| ||||||
9 | (Section scheduled to be repealed on January 1, 2022)
| ||||||
10 | Sec. 20-10. Course approval.
| ||||||
11 | (a) Only courses offered by licensed education providers | ||||||
12 | and approved
by the Department, courses approved by the AQB, or | ||||||
13 | courses approved by jurisdictions regulated by the Appraisal | ||||||
14 | Subcommittee
shall be used to meet the requirements of this Act | ||||||
15 | and rules.
| ||||||
16 | (b) An education provider licensed under this Act may | ||||||
17 | submit courses to the Department , or through a multi-state | ||||||
18 | licensing system as designated by the Secretary,
for approval.
| ||||||
19 | The criteria, requirements, and fees for courses shall be | ||||||
20 | established
by rule in accordance with
this Act and the | ||||||
21 | criteria established by the AQB.
| ||||||
22 | (c) For each course approved, the Department
shall issue a | ||||||
23 | license to the education
provider. The term, expiration date, | ||||||
24 | and renewal of a course approval shall
be
established by rule.
| ||||||
25 | (d) An education provider must use an instructor for each |
| |||||||
| |||||||
1 | course approved by the Department who (i) holds a valid real | ||||||
2 | estate appraisal license in good standing as a State certified | ||||||
3 | general real estate appraiser or a State certified residential | ||||||
4 | real estate appraiser in Illinois or any other jurisdiction | ||||||
5 | monitored by the Appraisal Subcommittee, (ii) holds a valid | ||||||
6 | teaching certificate issued by the State of Illinois, (iii) is | ||||||
7 | a faculty member in good standing with an accredited college or | ||||||
8 | university or community college, or (iv) is an approved | ||||||
9 | appraisal instructor from an appraisal organization that is a | ||||||
10 | member of the Appraisal Foundation. | ||||||
11 | (Source: P.A. 98-1109, eff. 1-1-15 .)
| ||||||
12 | Section 10. The Appraisal Management Company Registration | ||||||
13 | Act is amended by changing Sections 5, 10, 15, 20, 25, 35, 40, | ||||||
14 | 55, 65, and 160 and by adding Sections 17, 32, 37, 43, 47, 67, | ||||||
15 | 68, 163, and 177 as follows: | ||||||
16 | (225 ILCS 459/5)
| ||||||
17 | Sec. 5. Findings. The General Assembly finds that: It is | ||||||
18 | the intent of the General Assembly that this Act provide for | ||||||
19 | the regulation of those persons or entities engaged as | ||||||
20 | appraisal management companies for the protection of the public | ||||||
21 | and for the maintenance of high standards of professional | ||||||
22 | conduct by those registered as appraisal management companies | ||||||
23 | in one to four family real estate transactions and to ensure | ||||||
24 | appraisal independence in the determination of real estate |
| |||||||
| |||||||
1 | valuations.
| ||||||
2 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
3 | (225 ILCS 459/10)
| ||||||
4 | Sec. 10. Definitions. In this Act: | ||||||
5 | "Address of record" means the principal designated address | ||||||
6 | recorded by the Department in the applicant's or registrant's | ||||||
7 | application file or registration file maintained by the | ||||||
8 | Department's registration maintenance unit. It is the duty of | ||||||
9 | the applicant or registrant to inform the Department of any | ||||||
10 | change of address, and the changes must be made either through | ||||||
11 | the Department's website or by contacting the Department's | ||||||
12 | registration maintenance unit within a prescribed time period | ||||||
13 | as defined by rule. | ||||||
14 | "Applicant" means a person or entity who applies to the | ||||||
15 | Department for a registration under this Act. | ||||||
16 | "Appraisal" means (noun) the act or process of developing | ||||||
17 | an opinion of value; an opinion of value (adjective) of or | ||||||
18 | pertaining to appraising and related functions. | ||||||
19 | "Appraisal firm" means an appraisal entity that is 100% | ||||||
20 | owned and controlled by a person or persons licensed in | ||||||
21 | Illinois as a certified general real estate appraiser or a | ||||||
22 | certified residential real estate appraiser. An appraisal firm | ||||||
23 | does not include an appraisal management company. | ||||||
24 | "Appraisal management company" means any corporation, | ||||||
25 | limited liability company, partnership, sole proprietorship, |
| |||||||
| |||||||
1 | subsidiary, unit, or other business entity that directly or | ||||||
2 | indirectly performs the following appraisal management | ||||||
3 | services : (1) provides appraisal management services to | ||||||
4 | creditors or secondary mortgage market participants; (2) | ||||||
5 | provides appraisal management services in connection with | ||||||
6 | valuing the consumer's principal dwelling as security for a | ||||||
7 | consumer credit transaction (including consumer credit | ||||||
8 | transactions incorporated into securitizations); (3) within a | ||||||
9 | given year, oversees an appraiser panel of any size of | ||||||
10 | State-certified appraisers in Illinois; and (4) any appraisal | ||||||
11 | management company that, within a given year, oversees an | ||||||
12 | appraiser panel of 16 or more State-certified appraisers in | ||||||
13 | Illinois or 25 or more State-certified or State-licensed | ||||||
14 | appraisers in 2 or more jurisdictions shall be subject to the | ||||||
15 | appraisal management company national registry fee in addition | ||||||
16 | to the appraiser panel fee. "Appraisal management company" | ||||||
17 | includes a hybrid entity. administers networks of independent | ||||||
18 | contractors or employee appraisers to perform real estate | ||||||
19 | appraisal assignments for clients; (2) receives requests for | ||||||
20 | real estate appraisal services from clients and, for a fee paid | ||||||
21 | by the client, enters into an agreement with one or more | ||||||
22 | independent appraisers to perform the real estate appraisal | ||||||
23 | services contained in the request; or (3) otherwise serves as a | ||||||
24 | third-party broker of appraisal management services between | ||||||
25 | clients and appraisers. | ||||||
26 | "Appraisal management company national registry fee" means |
| |||||||
| |||||||
1 | the fee implemented pursuant to Title XI of the federal | ||||||
2 | Financial Institutions Reform, Recovery and Enforcement Act of | ||||||
3 | 1989 for an appraiser management company's national registry. | ||||||
4 | "Appraisal management services" means one or more of the | ||||||
5 | following: | ||||||
6 | (1) recruiting, selecting, and retaining appraisers; | ||||||
7 | (2) contracting with State-certified or State-licensed | ||||||
8 | appraisers to perform appraisal assignments; | ||||||
9 | (3) managing the process of having an appraisal | ||||||
10 | performed, including providing administrative services | ||||||
11 | such as receiving appraisal orders and appraisal reports; | ||||||
12 | submitting completed appraisal reports to creditors and | ||||||
13 | secondary market participants; collecting compensation | ||||||
14 | from creditors, underwriters, or secondary market | ||||||
15 | participants for services provided; or paying appraisers | ||||||
16 | for services performed; or | ||||||
17 | (4) reviewing and verifying the work of appraisers. | ||||||
18 | "Appraiser panel" means a network, list, or roster of | ||||||
19 | licensed or certified appraisers approved by the appraisal | ||||||
20 | management company or by the end-user client to perform | ||||||
21 | appraisals for the appraisal management company. "Appraiser | ||||||
22 | panel" includes both appraisers accepted by an appraisal | ||||||
23 | management company for consideration for future appraisal | ||||||
24 | assignments and appraisers engaged by an appraisal management | ||||||
25 | company to perform one or more appraisals. | ||||||
26 | "Appraiser panel fee" means the amount collected from a |
| |||||||
| |||||||
1 | registrant that, where applicable, includes an appraisal | ||||||
2 | management company's national registry fee. | ||||||
3 | "Appraisal report" means a written appraisal by an | ||||||
4 | appraiser to a client. | ||||||
5 | "Appraisal practice service" means valuation services | ||||||
6 | performed by an individual acting as an appraiser, including, | ||||||
7 | but not limited to, appraisal , or appraisal review , or | ||||||
8 | appraisal consulting . | ||||||
9 | "Appraisal subcommittee" means the appraisal subcommittee | ||||||
10 | of the Federal Financial Institutions Examination Council as | ||||||
11 | established by Title XI. | ||||||
12 | "Appraiser" means a person who performs real estate or real | ||||||
13 | property appraisals. | ||||||
14 | "Assignment result" means an appraiser's opinions and | ||||||
15 | conclusions developed specific to an assignment. | ||||||
16 | "Audit" includes, but is not limited to, an annual or | ||||||
17 | special audit, visit, or review necessary under this Act or | ||||||
18 | required by the Secretary or the Secretary's authorized | ||||||
19 | representative in carrying out the duties and responsibilities | ||||||
20 | under this Act. | ||||||
21 | "Board" means the Real Estate Appraisal Administration and | ||||||
22 | Disciplinary Board. | ||||||
23 | "Client" means the party or parties who engage an appraiser | ||||||
24 | by employment or contract in a specific appraisal assignment. | ||||||
25 | "Controlling Person" means: | ||||||
26 | (1) an owner, officer, or director of an entity seeking |
| |||||||
| |||||||
1 | to offer appraisal management services; | ||||||
2 | (2) an individual employed, appointed, or authorized | ||||||
3 | by an appraisal management company who has the authority | ||||||
4 | to: | ||||||
5 | (A) enter into a contractual relationship with a | ||||||
6 | client for the performance of an appraisal management | ||||||
7 | service or appraisal practice service; and | ||||||
8 | (B) enter into an agreement with an appraiser for | ||||||
9 | the performance of a real estate appraisal activity; or | ||||||
10 | (3) an individual who possesses, directly or | ||||||
11 | indirectly, the power to direct or cause the
direction of | ||||||
12 | the management or policies of an appraisal management | ||||||
13 | company ; or .
| ||||||
14 | (4) an individual who will act as the sole compliance | ||||||
15 | officer with regard to this Act and any rules adopted under | ||||||
16 | this Act. | ||||||
17 | "Coordinator" means the Coordinator of the Appraisal | ||||||
18 | Management Company Registration Unit of the Department or his | ||||||
19 | or her designee. | ||||||
20 | "Covered transaction" means a consumer credit transaction | ||||||
21 | secured by a consumer's principal dwelling. | ||||||
22 | "Department" means the Department of Financial and | ||||||
23 | Professional Regulation. | ||||||
24 | "Email address of record" means the designated email | ||||||
25 | address recorded by the Department in the applicant's | ||||||
26 | application file or the registrant's registration file |
| |||||||
| |||||||
1 | maintained by the Department's registration maintenance unit. | ||||||
2 | "Entity" means a corporation, a limited liability company, | ||||||
3 | partnership, a sole proprietorship, or other entity providing | ||||||
4 | services or holding itself out to provide services as an | ||||||
5 | appraisal management company or an appraisal management | ||||||
6 | service. | ||||||
7 | "End-user client" means any person who utilizes or engages | ||||||
8 | the services of an appraiser through an appraisal management | ||||||
9 | company. | ||||||
10 | "Federally regulated appraisal management company" means | ||||||
11 | an appraisal management company that is owned and controlled by | ||||||
12 | an insured depository institution, as defined in 12 U.S.C. | ||||||
13 | 1813, or an insured credit union, as defined in 12 U.S.C. 1752, | ||||||
14 | and regulated by the Office of the Comptroller of the Currency, | ||||||
15 | the Federal Reserve Board, the National Credit Union | ||||||
16 | Association, or the Federal Deposit Insurance Corporation. | ||||||
17 | "Financial institution" means any bank, savings bank, | ||||||
18 | savings and loan association, credit union, mortgage broker, | ||||||
19 | mortgage banker, registrant under the Consumer Installment | ||||||
20 | Loan Act or the Sales Finance Agency Act, or a corporate | ||||||
21 | fiduciary, subsidiary, affiliate, parent company, or holding | ||||||
22 | company of any registrant, or any institution involved in real | ||||||
23 | estate financing that is regulated by State or federal law. | ||||||
24 | "Foreign appraisal management company" means any appraisal | ||||||
25 | management company organized under the laws of any other state | ||||||
26 | of the United States, the District of Columbia, or any other |
| |||||||
| |||||||
1 | jurisdiction of the United States. | ||||||
2 | "Hybrid entity" means an appraisal management company that | ||||||
3 | hires an appraiser as an employee to perform an appraisal and | ||||||
4 | engages an independent contractor to perform an appraisal. | ||||||
5 | "Multi-state licensing system" means a web-based platform | ||||||
6 | that allows an applicant to submit his or her application or | ||||||
7 | registration renewal to the Department online. | ||||||
8 | "Person" means individuals, entities, sole | ||||||
9 | proprietorships, corporations, limited liability companies, | ||||||
10 | and alien, foreign, or domestic partnerships, foreign or | ||||||
11 | domestic, except that when the context otherwise requires, the | ||||||
12 | term may refer to a single individual or other described | ||||||
13 | entity.
| ||||||
14 | "Principal dwelling" means a residential structure that | ||||||
15 | contains one to 4 units, whether or not that structure is | ||||||
16 | attached to real property. "Principal dwelling" includes an | ||||||
17 | individual condominium unit, cooperative unit, manufactured | ||||||
18 | home, mobile home, and trailer, if it is used as a residence. | ||||||
19 | "Principal office" means the actual, physical business | ||||||
20 | address, which shall not be a post office box or a virtual | ||||||
21 | business address, of a registrant, at which (i) the Department | ||||||
22 | may contact the registrant and (ii) records required under this | ||||||
23 | Act are maintained. | ||||||
24 | "Qualified to transact business in this State" means being | ||||||
25 | in compliance with the requirements of the Business Corporation | ||||||
26 | Act of 1983. |
| |||||||
| |||||||
1 | "Quality control review" means a review of an appraisal | ||||||
2 | report for compliance and completeness, including grammatical, | ||||||
3 | typographical, or other similar errors, unrelated to | ||||||
4 | developing an opinion of value. | ||||||
5 | "Real estate" means an identified parcel or tract of land, | ||||||
6 | including any improvements. | ||||||
7 | "Real estate related financial transaction" means any | ||||||
8 | transaction involving: | ||||||
9 | (1) the sale, lease, purchase, investment in, or | ||||||
10 | exchange of real property,
including interests in property | ||||||
11 | or the financing thereof; | ||||||
12 | (2) the refinancing of real property or interests in | ||||||
13 | real property; and | ||||||
14 | (3) the use of real property or interest in property as | ||||||
15 | security for a loan or
investment, including mortgage | ||||||
16 | backed securities. | ||||||
17 | "Real property" means the interests, benefits, and rights | ||||||
18 | inherent in the ownership of real estate. | ||||||
19 | "Secretary" means the Secretary of Financial and | ||||||
20 | Professional Regulation. | ||||||
21 | "USPAP" means the Uniform Standards of Professional | ||||||
22 | Appraisal Practice as adopted by the Appraisal Standards Board | ||||||
23 | under Title XI. | ||||||
24 | "Valuation" means any estimate of the value of real | ||||||
25 | property in connection with a creditor's decision to provide | ||||||
26 | credit, including those values developed under a policy of a |
| |||||||
| |||||||
1 | government sponsored enterprise or by an automated valuation | ||||||
2 | model or other methodology or mechanism.
| ||||||
3 | "Written notice" means a communication transmitted by mail | ||||||
4 | or by electronic means that can be verified between an | ||||||
5 | appraisal management company and a licensed or certified real | ||||||
6 | estate appraiser. | ||||||
7 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
8 | (225 ILCS 459/15)
| ||||||
9 | Sec. 15. Exemptions. | ||||||
10 | (a) Nothing in this Act shall apply to any of the | ||||||
11 | following: | ||||||
12 | (1) an agency of the federal, State, county, or | ||||||
13 | municipal government or an officer or employee of a | ||||||
14 | government agency, or person, described in this Section | ||||||
15 | when acting within the scope of employment of the officer | ||||||
16 | or employee; | ||||||
17 | (2) a corporate relocation company when the appraisal | ||||||
18 | is not used for mortgage purposes and the end user client | ||||||
19 | is an employer company; | ||||||
20 | (3) any person licensed in this State under any other | ||||||
21 | Act while engaged in the activities or practice for which | ||||||
22 | he or she is licensed; | ||||||
23 | (4) any person licensed to practice law in this State | ||||||
24 | who is working with or on behalf of a client of that person | ||||||
25 | in connection with one or more appraisals for that client; |
| |||||||
| |||||||
1 | (5) an appraiser that enters into an agreement, whether | ||||||
2 | written or otherwise, with another appraiser for the | ||||||
3 | performance of an appraisal, and upon the completion of the | ||||||
4 | appraisal, the report of the appraiser performing the | ||||||
5 | appraisal is signed by both the appraiser who completed the | ||||||
6 | appraisal and the appraiser who requested the completion of | ||||||
7 | the appraisal, except that an appraisal management company | ||||||
8 | may not avoid the requirement of registration under this | ||||||
9 | Act by requiring an employee of the appraisal management | ||||||
10 | company who is an appraiser to sign an appraisal that was | ||||||
11 | completed by another appraiser who is part of the appraisal | ||||||
12 | panel of the appraisal management company; | ||||||
13 | (6) any person acting as an agent of the Illinois | ||||||
14 | Department of Transportation in the acquisition or | ||||||
15 | relinquishment of land for transportation issues to the | ||||||
16 | extent of their contract scope; or | ||||||
17 | (7) a design professional entity when the appraisal is | ||||||
18 | not used for
mortgage purposes and the end user client is | ||||||
19 | an agency of State government or a unit of local | ||||||
20 | government ; . | ||||||
21 | (8) an appraiser firm whose ownership is appropriately | ||||||
22 | certified under the Real Estate Appraiser Licensing Act of | ||||||
23 | 2002; or | ||||||
24 | (9) an appraisal management company solely engaged in | ||||||
25 | non-residential appraisal management services. | ||||||
26 | (b) A federally regulated appraisal management company |
| |||||||
| |||||||
1 | shall register with the Department for the sole purpose of | ||||||
2 | collecting required information for, and to pay all fees | ||||||
3 | associated with, the State of Illinois' obligation to register | ||||||
4 | the federally regulated appraisal management company with the | ||||||
5 | Appraisal Management Companies National Registry, but the | ||||||
6 | federally regulated appraisal management company is otherwise | ||||||
7 | exempt from all other provisions in this Act. | ||||||
8 | (c) In the event that the Final Interim Rule of the federal | ||||||
9 | Dodd-Frank Wall Street Reform and Consumer Protection Act | ||||||
10 | provides that an appraisal management company is a subsidiary | ||||||
11 | owned and controlled by a financial institution regulated by a | ||||||
12 | federal financial institution's regulatory agency and is | ||||||
13 | exempt from State appraisal management company registration | ||||||
14 | requirements, the Department, shall, by rule, provide for the | ||||||
15 | implementation of such an exemption.
| ||||||
16 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
17 | (225 ILCS 459/17 new) | ||||||
18 | Sec. 17. Address of record; email address of record. All | ||||||
19 | applicants and registrants shall: | ||||||
20 | (1) provide a valid address and email address to the
| ||||||
21 | Department, which shall serve as the address of record and | ||||||
22 | email address of record, respectively, at the time of | ||||||
23 | application for registration or renewal of a registration; | ||||||
24 | and | ||||||
25 | (2) inform the Department of any change of address of
|
| |||||||
| |||||||
1 | record or email address of record within 14 days after such | ||||||
2 | change either through the Department's website or through a | ||||||
3 | multi-state registration system as designated by the | ||||||
4 | Secretary. | ||||||
5 | (225 ILCS 459/20)
| ||||||
6 | Sec. 20. Restrictions and limitations. Beginning January | ||||||
7 | 1, 2012, it is unlawful for a person or entity to act or assume | ||||||
8 | to act as an appraisal management company as defined in this | ||||||
9 | Act, to engage in the business of appraisal management service, | ||||||
10 | or to advertise or hold himself or herself out to be a | ||||||
11 | registered appraisal management company without first | ||||||
12 | obtaining a registration issued by the Department under this | ||||||
13 | Act. A person or entity that violates this Section is guilty of | ||||||
14 | a Class A misdemeanor for the first offense and a Class 4 | ||||||
15 | felony for second and subsequent offenses. | ||||||
16 | Persons practicing as an appraisal management company in | ||||||
17 | Illinois as of the effective date of this Act may continue to | ||||||
18 | practice as provided in this Act until the Department has | ||||||
19 | adopted rules implementing this Act. To continue practicing as | ||||||
20 | an appraisal management company after the adoption of rules, | ||||||
21 | persons shall apply for registration within 180 days after the | ||||||
22 | effective date of the rules. If an application is received | ||||||
23 | during the 180-day period, the person may continue to practice | ||||||
24 | until the Department acts to grant or deny registration. If an | ||||||
25 | application is not filed within the 180-day period, the person |
| |||||||
| |||||||
1 | must cease the practice at the conclusion of the 180-day period | ||||||
2 | and until the Department acts to grant a registration to the | ||||||
3 | person.
| ||||||
4 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
5 | (225 ILCS 459/25)
| ||||||
6 | Sec. 25. Powers and duties of the Department. Subject to | ||||||
7 | the provisions of this Act: | ||||||
8 | (1) The Department may ascertain the qualifications | ||||||
9 | and fitness of applicants for registration and pass upon | ||||||
10 | the qualifications of applicants for registration. | ||||||
11 | (2) The Department may conduct hearings on proceedings | ||||||
12 | to refuse to issue or renew or to revoke registrations or | ||||||
13 | suspend, place on probation, or reprimand persons or | ||||||
14 | otherwise discipline individuals or entities subject to | ||||||
15 | this Act. | ||||||
16 | (3) The Department may adopt formulate all rules | ||||||
17 | required for the administration of this Act. With the | ||||||
18 | exception of emergency rules, any proposed rules, | ||||||
19 | amendments, second notice materials, and adopted rule or | ||||||
20 | amendment materials or policy statements concerning | ||||||
21 | appraisal management companies shall be presented to the | ||||||
22 | Real Estate Appraisal Administration and Disciplinary | ||||||
23 | Board for review and comment. The recommendations of the | ||||||
24 | Board shall be presented to the Secretary for consideration | ||||||
25 | in making final decisions. |
| |||||||
| |||||||
1 | (4) The Department may maintain rosters of the names | ||||||
2 | and addresses of all registrants, and all persons whose | ||||||
3 | registrations have been suspended, revoked, or denied | ||||||
4 | renewal for cause within the previous calendar year or | ||||||
5 | otherwise disciplined pursuant to this Act and shall | ||||||
6 | transmit the roster, along with any national registry fees | ||||||
7 | obtained by it, to the entity specified by and in a manner | ||||||
8 | consistent with Title XI of the federal Financial | ||||||
9 | Institutions Reform, Recovery, and Enforcement Act of | ||||||
10 | 1989 . These rosters shall be available upon written request | ||||||
11 | and payment of the required fee as established by rule.
| ||||||
12 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
13 | (225 ILCS 459/32 new) | ||||||
14 | Sec. 32. Multi-state licensing system. The Secretary may | ||||||
15 | require participation in a third-party, multi-state licensing | ||||||
16 | system for registration under this Act. The multi-state | ||||||
17 | licensing system may share regulatory information and maintain | ||||||
18 | records in compliance with the provisions of this Act. The | ||||||
19 | multi-state licensing system may charge the applicant an | ||||||
20 | administration fee. | ||||||
21 | (225 ILCS 459/35)
| ||||||
22 | Sec. 35. Application for original registration. | ||||||
23 | Applications for original registration shall be made to the | ||||||
24 | Department on forms prescribed by the Department , or through a |
| |||||||
| |||||||
1 | multi-state licensing system as designated by the Secretary, | ||||||
2 | and accompanied by the required fee. All applications shall | ||||||
3 | contain the information that, in the judgment of the | ||||||
4 | Department, will enable the Department to pass on the | ||||||
5 | qualifications of the applicant to be registered to practice as | ||||||
6 | set by rule.
| ||||||
7 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
8 | (225 ILCS 459/37 new) | ||||||
9 | Sec. 37. Transferability; assignability. A registration, | ||||||
10 | when issued for an appraisal management company, shall state | ||||||
11 | the name of the registrant and the address of the principal | ||||||
12 | office. The registration is not transferable or assignable. | ||||||
13 | (225 ILCS 459/40)
| ||||||
14 | Sec. 40. Qualifications for registration. | ||||||
15 | (a) The Department may issue a certification of | ||||||
16 | registration to practice under this Act to any applicant who is | ||||||
17 | qualified to do business in this State and applies to the | ||||||
18 | Department on forms provided by the Department , or through a | ||||||
19 | multi-state licensing system as designated by the Secretary , | ||||||
20 | pays the required non-refundable fees fee , is qualified to | ||||||
21 | transact business in this State, and who provides the | ||||||
22 | following: | ||||||
23 | (1) the business name of the applicant seeking | ||||||
24 | registration; |
| |||||||
| |||||||
1 | (2) the business address or addresses and contact | ||||||
2 | information of the applicant seeking registration; | ||||||
3 | (3) if the business applicant is not a corporation that | ||||||
4 | is domiciled in this State, then the name and contact | ||||||
5 | information for the company's agent for service of process | ||||||
6 | in this State; | ||||||
7 | (4) the name, address, and contact information for any | ||||||
8 | individual or any corporation, partnership, limited | ||||||
9 | liability company, association, or other business | ||||||
10 | applicant that owns 10% or more of the appraisal management | ||||||
11 | company along with a completed criminal history records | ||||||
12 | background check as required in Section 68 ; | ||||||
13 | (5) the name, address, and contact information for a | ||||||
14 | designated controlling person; | ||||||
15 | (6) a certification that the applicant will utilize | ||||||
16 | Illinois licensed appraisers to provide appraisal services | ||||||
17 | within the State of Illinois; | ||||||
18 | (7) a certification that the applicant has a system in | ||||||
19 | place utilizing a licensed Illinois appraiser to review the | ||||||
20 | work of all employed and independent appraisers that are | ||||||
21 | performing real estate appraisal services in Illinois for | ||||||
22 | the appraisal management company on a periodic basis, | ||||||
23 | except for a quality control review, to verify that the | ||||||
24 | real estate appraisal assignments are being conducted in | ||||||
25 | accordance with USPAP; | ||||||
26 | (8) a certification that the applicant maintains a |
| |||||||
| |||||||
1 | detailed record of each service request that it receives | ||||||
2 | and the independent appraiser that performs the real estate | ||||||
3 | appraisal services for the appraisal management company; | ||||||
4 | (9) a certification that the employees of the appraisal | ||||||
5 | management company working on behalf of the appraisal | ||||||
6 | management company directly involved in providing | ||||||
7 | appraisal management services, will be appropriately | ||||||
8 | trained and familiar with the appraisal process to | ||||||
9 | completely provide appraisal management services;
| ||||||
10 | (10) an irrevocable Uniform Consent to Service of | ||||||
11 | Process, under rule; and | ||||||
12 | (11) a certification that the applicant shall comply | ||||||
13 | with all other requirements of this Act and rules | ||||||
14 | established for the implementation of this Act. | ||||||
15 | (b) Applicants have 3 years from the date of application to | ||||||
16 | complete the application process. If the process has not been | ||||||
17 | completed in 3 years, the application shall be denied, the fee | ||||||
18 | shall be forfeited, and the applicant must reapply and meet the | ||||||
19 | requirements in effect at the time of reapplication.
| ||||||
20 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
21 | (225 ILCS 459/43 new) | ||||||
22 | Sec. 43. Application denial. If an application is denied, | ||||||
23 | the applicant may, within 20 days after the date of the notice | ||||||
24 | of denial, make a written request to the Secretary for a | ||||||
25 | hearing on the application, and the Secretary shall set a time |
| |||||||
| |||||||
1 | and place for the hearing. The hearing shall be set for a date | ||||||
2 | after the receipt by the Secretary of the request for hearing, | ||||||
3 | and notice of the time and place of the hearing shall be | ||||||
4 | communicated to the applicant at least 10 days before the date | ||||||
5 | of the hearing. The applicant shall pay the actual cost of | ||||||
6 | making the transcript of the hearing before the Secretary | ||||||
7 | issues his or her decision following the hearing. If, following | ||||||
8 | the hearing, the application is denied, the Secretary shall | ||||||
9 | prepare and keep on file in his or her office a written order | ||||||
10 | of denial thereof that shall contain his or her findings and | ||||||
11 | the reasons supporting the denial and shall communicate a copy | ||||||
12 | to the applicant in a manner prescribed by the Department. A | ||||||
13 | decision may be reviewed as provided in Section 135. | ||||||
14 | (225 ILCS 459/47 new) | ||||||
15 | Sec. 47. Annual report; investigation; costs. Each | ||||||
16 | registrant shall annually file a report with the Secretary for | ||||||
17 | the calendar year period from January 1 through December 31, | ||||||
18 | giving relevant information as the Secretary may reasonably | ||||||
19 | require concerning, and for the purpose of examination for | ||||||
20 | compliance with federal and State regulations, the business and | ||||||
21 | operations during the preceding fiscal year period of each | ||||||
22 | registered appraisal management company conducted by the | ||||||
23 | registrant within the State. The report shall be made under | ||||||
24 | oath and shall be in the form prescribed by rule. The Secretary | ||||||
25 | may, at any time, investigate a registrant and every person, |
| |||||||
| |||||||
1 | partnership, association, limited liability company, | ||||||
2 | corporation, or other business entity who or which is engaged | ||||||
3 | in the business of operating an appraisal management company. | ||||||
4 | For that purpose, the Secretary shall have free access to the | ||||||
5 | offices and places of business and to records of all persons, | ||||||
6 | firms, partnerships, associations, limited liability companies | ||||||
7 | and members thereof, and corporations and to the officers and | ||||||
8 | directors thereof that relate to the appraisal management | ||||||
9 | company. The investigation may be conducted in conjunction with | ||||||
10 | representatives of other State agencies or agencies of another | ||||||
11 | state or of the United States as determined by the Secretary. | ||||||
12 | The Secretary may require by subpoena the attendance of and | ||||||
13 | examine under oath all persons whose testimony he or she may | ||||||
14 | require relative to the appraisal management company, and, in | ||||||
15 | those cases, the Secretary, or a representative whom he or she | ||||||
16 | may designate, may administer oaths to all persons called as | ||||||
17 | witnesses, and the Secretary, or a representative of the | ||||||
18 | Secretary, may conduct an audit, and there shall be paid to the | ||||||
19 | Secretary for each audit a fee, to be established by rule, for | ||||||
20 | each day or part thereof for each representative designated and | ||||||
21 | required to conduct the audit. | ||||||
22 | (225 ILCS 459/55)
| ||||||
23 | Sec. 55. Fees. | ||||||
24 | (a) The fees for the administration and enforcement of this | ||||||
25 | Act, including, but not limited to, original registration fees , |
| |||||||
| |||||||
1 | renewal fees , appraiser panel fees, appraiser management | ||||||
2 | company national registry fees, and restoration fees, shall be | ||||||
3 | set by the Department by rule. The fees shall not be | ||||||
4 | refundable. | ||||||
5 | (b) All fees and other moneys collected under this Act | ||||||
6 | shall be deposited in the Appraisal Administration Fund , except | ||||||
7 | as provided in subsection (d) of this Section .
| ||||||
8 | (c) The Department shall establish by rule a process for | ||||||
9 | calculating, collecting, and paying appraiser panel fees and, | ||||||
10 | where applicable, appraiser management company national | ||||||
11 | registry fees in a manner consistent with Title XI of the | ||||||
12 | federal Financial Institutions Reform, Recovery, and | ||||||
13 | Enforcement Act of 1989. | ||||||
14 | (d) The administration fee charged by the multi-state | ||||||
15 | licensing system shall be paid directly to the multi-state | ||||||
16 | licensing system. | ||||||
17 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
18 | (225 ILCS 459/65)
| ||||||
19 | Sec. 65. Disciplinary actions. | ||||||
20 | (a) The Department may refuse to issue or renew, or may | ||||||
21 | revoke, suspend, place on probation, reprimand, or take other | ||||||
22 | disciplinary or non-disciplinary action as the Department may | ||||||
23 | deem appropriate, including imposing fines not to exceed | ||||||
24 | $25,000 for each violation, with regard to any registration for | ||||||
25 | any one or combination of the following: |
| |||||||
| |||||||
1 | (1) Material misstatement in furnishing information to | ||||||
2 | the Department. | ||||||
3 | (2) Violations of this Act, or of the rules adopted | ||||||
4 | under this Act. | ||||||
5 | (3) Conviction of, or entry of a plea of guilty or nolo | ||||||
6 | contendere to any crime that is a felony under the laws of | ||||||
7 | the United States or any state or territory thereof or that | ||||||
8 | is a misdemeanor of which an essential element is | ||||||
9 | dishonesty, or any crime that is directly related to the | ||||||
10 | practice of the profession. | ||||||
11 | (4) Making any misrepresentation for the purpose of | ||||||
12 | obtaining registration or violating any provision of this | ||||||
13 | Act or the rules adopted under this Act pertaining to | ||||||
14 | advertising. | ||||||
15 | (5) Professional incompetence. | ||||||
16 | (6) Gross malpractice. | ||||||
17 | (7) Aiding or assisting another person in violating any | ||||||
18 | provision of this Act or rules adopted under this Act. | ||||||
19 | (8) Failing, within 30 days after requested, to provide | ||||||
20 | information in response to a written request made by the | ||||||
21 | Department. | ||||||
22 | (9) Engaging in dishonorable, unethical, or | ||||||
23 | unprofessional conduct of a character likely to deceive, | ||||||
24 | defraud, or harm the public. | ||||||
25 | (10) Discipline by another state, District of | ||||||
26 | Columbia, territory, or foreign nation, if at least one of |
| |||||||
| |||||||
1 | the grounds for the discipline is the same or substantially | ||||||
2 | equivalent to those set forth in this Section. | ||||||
3 | (11) A finding by the Department that the registrant, | ||||||
4 | after having his or her registration placed on probationary | ||||||
5 | status, has violated the terms of probation. | ||||||
6 | (12) Willfully making or filing false records or | ||||||
7 | reports in his or her practice, including, but not limited | ||||||
8 | to, false records filed with State agencies or departments. | ||||||
9 | (13) Filing false statements for collection of fees for | ||||||
10 | which services are not rendered. | ||||||
11 | (14) Practicing under a false or, except as provided by | ||||||
12 | law, an assumed name. | ||||||
13 | (15) Fraud or misrepresentation in applying for, or | ||||||
14 | procuring, a registration under this Act or in connection | ||||||
15 | with applying for renewal of a registration under this Act. | ||||||
16 | (16) Being adjudicated liable in a civil proceeding for | ||||||
17 | violation of a state or federal fair housing law. | ||||||
18 | (17) Failure to obtain or maintain the bond required | ||||||
19 | under Section 50 of this Act. | ||||||
20 | (18) Failure to pay appraiser panel fees or appraisal | ||||||
21 | management company national registry fees. | ||||||
22 | (b) The Department may refuse to issue or may suspend | ||||||
23 | without hearing as provided for in the Civil Administrative | ||||||
24 | Code the registration of any person who fails to file a return, | ||||||
25 | or to pay the tax, penalty or interest shown in a filed return, | ||||||
26 | or to pay any final assessment of the tax, penalty, or interest |
| |||||||
| |||||||
1 | as required by any tax Act administered by the Illinois | ||||||
2 | Department of Revenue, until such time as the requirements of | ||||||
3 | any such tax Act are satisfied.
| ||||||
4 | (c) An appraisal management company shall not be registered | ||||||
5 | or included on the national registry if the company, in whole | ||||||
6 | or in part, directly or indirectly, is owned by a person who | ||||||
7 | has had an appraiser license or certificate refused, denied, | ||||||
8 | canceled, surrendered in lieu of revocation, or revoked under | ||||||
9 | the Real Estate Appraiser Licensing Act of 2002 or the rules | ||||||
10 | adopted under that Act, or similar discipline by another state, | ||||||
11 | the District of Columbia, a territory, a foreign nation, a | ||||||
12 | governmental agency, or an entity authorized to impose | ||||||
13 | discipline if at least one of the grounds for that discipline | ||||||
14 | is the same as or the equivalent of one of the grounds for | ||||||
15 | which a licensee may be disciplined as set forth under this | ||||||
16 | Section. | ||||||
17 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
18 | (225 ILCS 459/67 new) | ||||||
19 | Sec. 67. Good moral character. If an applicant, or an | ||||||
20 | ownership interest of the applicant, has had a license or | ||||||
21 | registration revoked on a prior occasion, has been found to | ||||||
22 | have committed any of the practices enumerated in Section 65, | ||||||
23 | has been convicted of or entered a plea of guilty or nolo | ||||||
24 | contendere to forgery, embezzlement, obtaining money under | ||||||
25 | false pretenses, larceny, extortion, conspiracy to defraud, or |
| |||||||
| |||||||
1 | a similar offense or offenses, or has been convicted of a | ||||||
2 | felony involving moral turpitude in a court of competent | ||||||
3 | jurisdiction in this State or any other state, district, or | ||||||
4 | territory of the United States or of a foreign country, the | ||||||
5 | Department may consider the prior revocation, conduct, or | ||||||
6 | conviction in its determination of the applicant's moral | ||||||
7 | character and whether to grant the applicant's registration. In | ||||||
8 | its consideration of the prior revocation, conduct, or | ||||||
9 | conviction, the Department shall take into account the nature | ||||||
10 | of the conduct, any aggravating or extenuating circumstances, | ||||||
11 | the time elapsed since the revocation, conduct, or conviction, | ||||||
12 | the rehabilitation or restitution performed by the applicant, | ||||||
13 | and any other factors that the Department deems relevant. When | ||||||
14 | an applicant has made a false statement of material fact on his | ||||||
15 | or her application, the false statement may in itself be | ||||||
16 | sufficient grounds to revoke or refuse to issue a registration. | ||||||
17 | (225 ILCS 459/68 new) | ||||||
18 | Sec. 68. Criminal history records background check. Each | ||||||
19 | individual applicant or controlling person on behalf of a | ||||||
20 | business entity that applies for registration or restoration | ||||||
21 | shall have his or her fingerprints submitted to the Department | ||||||
22 | of State Police in an electronic format that complies with the | ||||||
23 | form and manner for requesting and furnishing criminal history | ||||||
24 | record information as prescribed by the Department of State | ||||||
25 | Police, or through a multi-state licensing system as designated |
| |||||||
| |||||||
1 | by the Secretary. These fingerprints shall be checked against | ||||||
2 | the Department of State Police and Federal Bureau of | ||||||
3 | Investigation criminal history record databases now and | ||||||
4 | hereafter filed. The Department of State Police shall charge | ||||||
5 | applicants a fee for conducting the criminal history records | ||||||
6 | background check, which shall be deposited into the State | ||||||
7 | Police Services Fund and shall not exceed the actual cost of | ||||||
8 | the criminal history records background check. The Department | ||||||
9 | of State Police shall furnish, pursuant to positive | ||||||
10 | identification, records of Illinois convictions to the | ||||||
11 | Department. The Department may require an applicant to pay a | ||||||
12 | separate fingerprinting fee, either to the Department or to a | ||||||
13 | vendor. The Department may adopt any rules necessary to | ||||||
14 | implement this Section. | ||||||
15 | (225 ILCS 459/160)
| ||||||
16 | Sec. 160. Business practice provisions; standards of | ||||||
17 | practice. | ||||||
18 | (a) The Department may adopt by rule the Uniform Standards | ||||||
19 | of Professional Appraisal Practice as published from time to | ||||||
20 | time by the Appraisal Standards Board of the Appraisal | ||||||
21 | Foundation. Appraisal management companies shall not interfere | ||||||
22 | with adherence to the Uniform Standards of Professional | ||||||
23 | Appraisal Practice or the Real Estate Appraiser Act of 2002 or | ||||||
24 | a subsequent Act by individuals licensed under the respective | ||||||
25 | Acts. |
| |||||||
| |||||||
1 | (b) All payment policies from registrants under this Act to | ||||||
2 | appraisers shall be written and definitive in nature.
| ||||||
3 | (c) In the event of a value dispute or a requested | ||||||
4 | reconsideration of value, the appraisal management company | ||||||
5 | shall deliver all information that supports an increase or | ||||||
6 | decrease in value to the appraiser. This information may | ||||||
7 | include, but is not limited to, additional comparable sales. | ||||||
8 | (d) Each entity registered under this Act shall designate a | ||||||
9 | controlling person who is responsible to assure that the | ||||||
10 | company operates in compliance with this Act. The company shall | ||||||
11 | file a form provided by the Department indicating the company's | ||||||
12 | designation of the controlling person and such individual's | ||||||
13 | acceptance of the responsibility. A registrant shall notify the | ||||||
14 | Department of any change in its controlling person within 30 | ||||||
15 | days. Any registrant who does not comply with this subsection | ||||||
16 | (d) shall have its registration suspended under the provisions | ||||||
17 | set forth in this Act until the registrant complies with this | ||||||
18 | Section. Any individual registrant who operates as a sole | ||||||
19 | proprietorship shall be considered a designated controlling | ||||||
20 | person for the purposes of this Act. | ||||||
21 | (e)
Appraisal management companies or employees of an | ||||||
22 | appraisal management company involved in a real estate | ||||||
23 | transaction who have a reasonable basis to believe that an | ||||||
24 | appraiser involved in the preparation of an appraisal for the | ||||||
25 | real estate transaction has failed to comply with the Uniform | ||||||
26 | Standards of Professional Appraisal Practice, has violated |
| |||||||
| |||||||
1 | this Act or its rules, or has otherwise engaged in unethical | ||||||
2 | conduct shall report the matter to the Department. Any | ||||||
3 | registrant, employee, or individual acting on behalf of a | ||||||
4 | registrant, acting in good faith, and not in a willful and | ||||||
5 | wanton manner, in complying with this Act by reporting the | ||||||
6 | conduct to the Department shall not, as a result of such | ||||||
7 | actions, be subject to criminal prosecution or civil damages. | ||||||
8 | (f) Appraisal management companies are required to be in | ||||||
9 | compliance with the appraisal independence standards | ||||||
10 | established under Section 129E of the federal Truth in Lending | ||||||
11 | Act, including the requirement that fee appraisers be | ||||||
12 | compensated at a customary and reasonable rate when the | ||||||
13 | appraisal management company is providing services for a | ||||||
14 | consumer credit transaction secured by the principal dwelling | ||||||
15 | of a consumer. To the extent permitted by federal law or | ||||||
16 | regulation, the
Department shall formulate rules pertaining to | ||||||
17 | customary and reasonable rates of
compensation for fee | ||||||
18 | appraisers. The appraisal management company must certify
to | ||||||
19 | the Department that it has policies and procedures in place to | ||||||
20 | be in compliance
under the Final Interim Rule of the federal | ||||||
21 | Dodd-Frank Wall Street Reform and Consumer Protection Act.
| ||||||
22 | (g) No appraisal management company procuring or | ||||||
23 | facilitating an appraisal may have a direct or indirect | ||||||
24 | interest, financial or otherwise, in the real estate or the | ||||||
25 | transaction that is the subject of the appraisal, as defined by | ||||||
26 | the federal Dodd-Frank Wall Street Reform and Consumer |
| |||||||
| |||||||
1 | Protection Act, any amendments thereto, or successor acts or | ||||||
2 | other applicable provisions of federal law or regulations.
| ||||||
3 | (Source: P.A. 97-602, eff. 8-26-11.) | ||||||
4 | (225 ILCS 459/163 new) | ||||||
5 | Sec. 163. Appraiser panel; annual size calculation. An | ||||||
6 | appraiser is deemed part of the appraisal management company's | ||||||
7 | appraiser panel as of the earliest date the appraisal | ||||||
8 | management company accepts the appraiser for consideration for | ||||||
9 | future appraisal assignments in covered transactions or | ||||||
10 | engages the appraiser to perform one or more appraisal | ||||||
11 | assignments on behalf of a creditor or secondary mortgage | ||||||
12 | market participant in a covered transaction, including an | ||||||
13 | affiliate of such a creditor or participant. An appraiser is | ||||||
14 | considered to be part of the appraisal management company's | ||||||
15 | appraiser panel if deemed to remain on the panel until: (1) the | ||||||
16 | date on which the appraisal management company sends written | ||||||
17 | notice to the appraiser removing the appraiser from the | ||||||
18 | appraiser panel; (2) the date the appraisal management company | ||||||
19 | receives written notice from the appraiser asking to be removed | ||||||
20 | from the appraiser panel; or (3) the date the appraisal | ||||||
21 | management company receives notice of the death or incapacity | ||||||
22 | of the appraiser. If an appraiser is removed from an appraisal | ||||||
23 | management company's appraiser panel but the appraisal | ||||||
24 | management company subsequently accepts the appraiser for | ||||||
25 | consideration for future assignments or engages the appraiser |
| |||||||
| |||||||
1 | at any time during the 12 months after the appraiser's removal, | ||||||
2 | the removal would be deemed not to have occurred and the | ||||||
3 | appraiser is deemed to have been part of the appraisal | ||||||
4 | management company's appraiser panel without interruption. | ||||||
5 | (225 ILCS 459/177 new) | ||||||
6 | Sec. 177. Administrator, executor, or guardian. If the | ||||||
7 | ownership of an appraisal management company registered under | ||||||
8 | this Act is held or contained in an estate subject to the | ||||||
9 | control and supervision of an administrator, executor, or | ||||||
10 | guardian appointed, approved, or by a court of the State of | ||||||
11 | Illinois, having jurisdiction so to do, the administrator, | ||||||
12 | executor, or guardian may, upon the entry of an order by the | ||||||
13 | court granting leave to continue the operation of the appraisal | ||||||
14 | management company, apply to the Secretary for a registration | ||||||
15 | under this Act. If the administrator, executor, or guardian | ||||||
16 | applies for an appraisal management company registration | ||||||
17 | pursuant to this Section and complies with all of the | ||||||
18 | provisions of this Act relating to the application for an | ||||||
19 | appraisal management company registration, the Secretary may | ||||||
20 | issue to the applicant an appraisal management company | ||||||
21 | registration. An appraisal management company registration | ||||||
22 | issued to an appraisal management company, for which an | ||||||
23 | application for a registration is sought under this Section, if | ||||||
24 | not previously surrendered, lapsed, or revoked, shall be | ||||||
25 | surrendered, revoked, or otherwise terminated before a |
| |||||||
| |||||||
1 | registration is issued pursuant to the application made under | ||||||
2 | this Section.
| ||||||
3 | Section 99. Effective date. This Act takes effect upon | ||||||
4 | becoming law.
|