| |||||||
| |||||||
| |||||||
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 1. Short title. This Act may be cited as the | ||||||
5 | Appraisal Management Company Registration Act.
| ||||||
6 | Section 5. Findings. The General Assembly finds that: It | ||||||
7 | is the intent of the General Assembly that this Act provide for | ||||||
8 | the regulation of those persons or entities engaged as | ||||||
9 | appraisal management companies for the protection of the public | ||||||
10 | and for the maintenance of high standards of professional | ||||||
11 | conduct by those registered as appraisal management companies | ||||||
12 | and to ensure appraisal independence in the determination of | ||||||
13 | real estate valuations. | ||||||
14 | Section 10. Definitions. In this Act: | ||||||
15 | "Address of record" means the designated address recorded | ||||||
16 | by the Department in the applicant's or registrant's | ||||||
17 | application file or registration file maintained by the | ||||||
18 | Department's registration maintenance unit. It is the duty of | ||||||
19 | the applicant or registrant to inform the Department of any | ||||||
20 | change of address, and the changes must be made either through | ||||||
21 | the Department's website or by contacting the Department's | ||||||
22 | registration maintenance unit within a prescribed time period |
| |||||||
| |||||||
1 | as defined by rule. | ||||||
2 | "Applicant" means a person or entity who applies to the | ||||||
3 | Department for a registration 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. | ||||||
7 | "Appraisal firm" means an appraisal entity that is 100% | ||||||
8 | owned and controlled by a person or persons licensed in | ||||||
9 | Illinois as a certified general real estate appraiser or a | ||||||
10 | certified residential real estate appraiser. An appraisal firm | ||||||
11 | does not include an appraisal management company. | ||||||
12 | "Appraisal management company" means any corporation, | ||||||
13 | limited liability company, partnership, sole proprietorship, | ||||||
14 | subsidiary, unit, or other business entity that directly or | ||||||
15 | indirectly performs the following appraisal management | ||||||
16 | services: (1) administers networks of independent contractors | ||||||
17 | or employee appraisers to perform real estate appraisal | ||||||
18 | assignments for clients; (2) receives requests for real estate | ||||||
19 | appraisal services from clients and, for a fee paid by the | ||||||
20 | client, enters into an agreement with one or more independent | ||||||
21 | appraisers to perform the real estate appraisal services | ||||||
22 | contained in the request; or (3) otherwise serves as a | ||||||
23 | third-party broker of appraisal management services between | ||||||
24 | clients and appraisers. | ||||||
25 | "Appraisal report" means a written appraisal by an | ||||||
26 | appraiser to a client. |
| |||||||
| |||||||
1 | "Appraisal practice service" means valuation services | ||||||
2 | performed by an individual acting as an appraiser, including, | ||||||
3 | but not limited to, appraisal, appraisal review, or appraisal | ||||||
4 | consulting. | ||||||
5 | "Appraiser" means a person who performs real estate or real | ||||||
6 | property appraisals. | ||||||
7 | "Assignment result" means an appraiser's opinions and | ||||||
8 | conclusions developed specific to an assignment. | ||||||
9 | "Board" means the Real Estate Appraisal Administration and | ||||||
10 | Disciplinary Board. | ||||||
11 | "Client" means the party or parties who engage an appraiser | ||||||
12 | by employment or contract in a specific appraisal assignment. | ||||||
13 | "Controlling Person" means: | ||||||
14 | (1) an owner, officer, or director of an entity seeking | ||||||
15 | to offer appraisal management services; | ||||||
16 | (2) an individual employed, appointed, or authorized | ||||||
17 | by an appraisal management company who has the authority | ||||||
18 | to: | ||||||
19 | (A) enter into a contractual relationship with a | ||||||
20 | client for the performance of an appraisal management | ||||||
21 | service or appraisal practice service; and | ||||||
22 | (B) enter into an agreement with an appraiser for | ||||||
23 | the performance of a real estate appraisal activity; or | ||||||
24 | (3) an individual who possesses, directly or | ||||||
25 | indirectly, the power to direct or cause the
direction of | ||||||
26 | the management or policies of an appraisal management |
| |||||||
| |||||||
1 | company.
| ||||||
2 | "Coordinator" means the Coordinator of the Appraisal | ||||||
3 | Management Company Registration Unit of the Department or his | ||||||
4 | or her designee. | ||||||
5 | "Department" means the Department of Financial and | ||||||
6 | Professional Regulation. | ||||||
7 | "Entity" means a corporation, a limited liability company, | ||||||
8 | partnership, a sole proprietorship, or other entity providing | ||||||
9 | services or holding itself out to provide services as an | ||||||
10 | appraisal management company or an appraisal management | ||||||
11 | service. | ||||||
12 | "End-user client" means any person who utilizes or engages | ||||||
13 | the services of an appraiser through an appraisal management | ||||||
14 | company. | ||||||
15 | "Financial institution" means any bank, savings bank, | ||||||
16 | savings and loan association, credit union, mortgage broker, | ||||||
17 | mortgage banker, registrant under the Consumer Installment | ||||||
18 | Loan Act or the Sales Finance Agency Act, or a corporate | ||||||
19 | fiduciary, subsidiary, affiliate, parent company, or holding | ||||||
20 | company of any registrant, or any institution involved in real | ||||||
21 | estate financing that is regulated by State or federal law. | ||||||
22 | "Person" means individuals, entities, sole | ||||||
23 | proprietorships, corporations, limited liability companies, | ||||||
24 | and partnerships, foreign or domestic, except that when the | ||||||
25 | context otherwise requires, the term may refer to a single | ||||||
26 | individual or other described entity.
|
| |||||||
| |||||||
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, a broker price opinion, or other methodology or | ||||||
3 | mechanism. | ||||||
4 | Section 15. Exemptions. Nothing in this Act shall apply to | ||||||
5 | any of the following: | ||||||
6 | (1) an agency of the federal, State, county, or | ||||||
7 | municipal government or an officer or employee of a | ||||||
8 | government agency, or person, described in this Section | ||||||
9 | when acting within the scope of employment of the officer | ||||||
10 | or employee; | ||||||
11 | (2) a corporate relocation company whereby the | ||||||
12 | appraisal is not used for mortgage purposes and the | ||||||
13 | end-user client is an employer company; | ||||||
14 | (3) any person licensed in this State under any other | ||||||
15 | Act while engaged in the activities or practice for which | ||||||
16 | he or she is licensed; | ||||||
17 | (4) any person licensed to practice law in this State | ||||||
18 | who is working with or on behalf of a client of that person | ||||||
19 | in connection with one or more appraisals for that client; | ||||||
20 | (5) an appraiser that enters into an agreement, whether | ||||||
21 | written or otherwise, with another appraiser for the | ||||||
22 | performance of an appraisal, and upon the completion of the | ||||||
23 | appraisal, the report of the appraiser performing the | ||||||
24 | appraisal is signed by both the appraiser who completed the | ||||||
25 | appraisal and the appraiser who requested the completion of |
| |||||||
| |||||||
1 | the appraisal, except that an appraisal management company | ||||||
2 | may not avoid the requirement of registration under this | ||||||
3 | Act by requiring an employee of the appraisal management | ||||||
4 | company who is an appraiser to sign an appraisal that was | ||||||
5 | completed by another appraiser who is part of the appraisal | ||||||
6 | panel of the appraisal management company; or | ||||||
7 | (6) any person acting as an agent of the Illinois | ||||||
8 | Department of Transportation in the acquisition or | ||||||
9 | relinquishment of land for transportation issues to the | ||||||
10 | extent of their contract scope. | ||||||
11 | In the event that the Final Interim Rule of the federal | ||||||
12 | Dodd-Frank Wall Street Reform and Consumer Protection Act | ||||||
13 | provides that an appraisal management company is a subsidiary | ||||||
14 | owned and controlled by a financial institution regulated by a | ||||||
15 | federal financial institution's regulatory agency and is | ||||||
16 | exempt from State appraisal management company registration | ||||||
17 | requirements, the Department, shall, by rule, provide for the | ||||||
18 | implementation of such an exemption. | ||||||
19 | Section 20. Restrictions and limitations. Beginning | ||||||
20 | January 1, 2012, it is unlawful for a person or entity to act | ||||||
21 | or assume to act as an appraisal management company as defined | ||||||
22 | in this Act, to engage in the business of appraisal management | ||||||
23 | service, or to advertise or hold himself or herself out to be a | ||||||
24 | registered appraisal management company without first | ||||||
25 | obtaining a registration issued by the Department under this |
| |||||||
| |||||||
1 | Act. A person or entity that violates this Section is guilty of | ||||||
2 | a Class A misdemeanor for the first offense and a Class 4 | ||||||
3 | felony for second and subsequent offenses. | ||||||
4 | Persons practicing as an appraisal management company in | ||||||
5 | Illinois as of the effective date of this Act may continue to | ||||||
6 | practice as provided in this Act until the Department has | ||||||
7 | adopted rules implementing this Act. To continue practicing as | ||||||
8 | an appraisal management company after the adoption of rules, | ||||||
9 | persons shall apply for registration within 180 days after the | ||||||
10 | effective date of the rules. If an application is received | ||||||
11 | during the 180-day period, the person may continue to practice | ||||||
12 | until the Department acts to grant or deny registration. If an | ||||||
13 | application is not filed within the 180-day period, the person | ||||||
14 | must cease the practice at the conclusion of the 180-day period | ||||||
15 | and until the Department acts to grant a registration to the | ||||||
16 | person. | ||||||
17 | Section 25. Powers and duties of the Department. Subject | ||||||
18 | to the provisions of this Act: | ||||||
19 | (1) The Department may ascertain the qualifications | ||||||
20 | and fitness of applicants for registration and pass upon | ||||||
21 | the qualifications of applicants for registration. | ||||||
22 | (2) The Department may conduct hearings on proceedings | ||||||
23 | to refuse to issue or renew or to revoke registrations or | ||||||
24 | suspend, place on probation, or reprimand persons or | ||||||
25 | otherwise discipline individuals or entities subject to |
| |||||||
| |||||||
1 | this Act. | ||||||
2 | (3) The Department may formulate all rules required for | ||||||
3 | the administration of this Act. With the exception of | ||||||
4 | emergency rules, any proposed rules, amendments, second | ||||||
5 | notice materials, and adopted rule or amendment materials | ||||||
6 | or policy statements concerning appraisal management | ||||||
7 | companies shall be presented to the Real Estate Appraisal | ||||||
8 | Administration and Disciplinary Board for review and | ||||||
9 | comment. The recommendations of the Board shall be | ||||||
10 | presented to the Secretary for consideration in making | ||||||
11 | final decisions. | ||||||
12 | (4) The Department may maintain rosters of the names | ||||||
13 | and addresses of all registrants, and all persons whose | ||||||
14 | registrations have been suspended, revoked, or denied | ||||||
15 | renewal for cause within the previous calendar year or | ||||||
16 | otherwise disciplined. These rosters shall be available | ||||||
17 | upon written request and payment of the required fee as | ||||||
18 | established by rule. | ||||||
19 | Section 30. Coordinator of Appraisal Management Company | ||||||
20 | Registration. The Coordinator of Real Estate Appraisal shall | ||||||
21 | serve as the Coordinator of Appraisal Management Company | ||||||
22 | Registration. The Coordinator shall have the same duties and | ||||||
23 | responsibilities in regards to appraisal management company | ||||||
24 | registration as the Coordinator has in regards to appraisal | ||||||
25 | licensure as set forth in the Real Estate Appraiser Licensing |
| |||||||
| |||||||
1 | Act of 2002. | ||||||
2 | Section 35. Application for original registration. | ||||||
3 | Applications for original registration shall be made to the | ||||||
4 | Department on forms prescribed by the Department and | ||||||
5 | accompanied by the required fee. All applications shall contain | ||||||
6 | the information that, in the judgment of the Department, will | ||||||
7 | enable the Department to pass on the qualifications of the | ||||||
8 | applicant to be registered to practice as set by rule. | ||||||
9 | Section 40. Qualifications for registration. | ||||||
10 | (a) The Department may issue a certification of | ||||||
11 | registration to practice under this Act to any applicant who | ||||||
12 | applies to the Department on forms provided by the Department, | ||||||
13 | pays the required non-refundable fee, and who provides the | ||||||
14 | following: | ||||||
15 | (1) the business name of the applicant seeking | ||||||
16 | registration; | ||||||
17 | (2) the business address or addresses and contact | ||||||
18 | information of the applicant seeking registration; | ||||||
19 | (3) if the business applicant is not a corporation that | ||||||
20 | is domiciled in this State, then the name and contact | ||||||
21 | information for the company's agent for service of process | ||||||
22 | in this State; | ||||||
23 | (4) the name, address, and contact information for any | ||||||
24 | individual or any corporation, partnership, limited |
| |||||||
| |||||||
1 | liability company, association, or other business | ||||||
2 | applicant that owns 10% or more of the appraisal management | ||||||
3 | company; | ||||||
4 | (5) the name, address, and contact information for a | ||||||
5 | designated controlling person; | ||||||
6 | (6) a certification that the applicant will utilize | ||||||
7 | Illinois licensed appraisers to provide appraisal services | ||||||
8 | within the State of Illinois; | ||||||
9 | (7) a certification that the applicant has a system in | ||||||
10 | place utilizing a licensed Illinois appraiser to review the | ||||||
11 | work of all employed and independent appraisers that are | ||||||
12 | performing real estate appraisal services in Illinois for | ||||||
13 | the appraisal management company on a periodic basis, | ||||||
14 | except for a quality control review, to verify that the | ||||||
15 | real estate appraisal assignments are being conducted in | ||||||
16 | accordance with USPAP; | ||||||
17 | (8) a certification that the applicant maintains a | ||||||
18 | detailed record of each service request that it receives | ||||||
19 | and the independent appraiser that performs the real estate | ||||||
20 | appraisal services for the appraisal management company; | ||||||
21 | (9) a certification that the employees of the appraisal | ||||||
22 | management company working on behalf of the appraisal | ||||||
23 | management company directly involved in providing | ||||||
24 | appraisal management services, will be appropriately | ||||||
25 | trained and familiar with the appraisal process to | ||||||
26 | completely provide appraisal management services;
|
| |||||||
| |||||||
1 | (10) an irrevocable Uniform Consent to Service of | ||||||
2 | Process, under rule; and | ||||||
3 | (11) a certification that the applicant shall comply | ||||||
4 | with all other requirements of this Act and rules | ||||||
5 | established for the implementation of this Act. | ||||||
6 | (b) Applicants have 3 years from the date of application to | ||||||
7 | complete the application process. If the process has not been | ||||||
8 | completed in 3 years, the application shall be denied, the fee | ||||||
9 | shall be forfeited, and the applicant must reapply and meet the | ||||||
10 | requirements in effect at the time of reapplication. | ||||||
11 | Section 45. Expiration and renewal of registration. The | ||||||
12 | expiration date and renewal period for each registration shall | ||||||
13 | be set by rule. A registrant whose registration has expired may | ||||||
14 | reinstate his or her registration at any time within 5 years | ||||||
15 | after the expiration thereof, by making a renewal application | ||||||
16 | and by paying the required fee. | ||||||
17 | Any registrant whose registration has expired for more than | ||||||
18 | 5 years may have it restored by making application to the | ||||||
19 | Department, paying the required fee, and filing acceptable | ||||||
20 | proof of fitness to have the registration restored as set by | ||||||
21 | rule. | ||||||
22 | Section 50. Bonds of registrants. All registrants shall | ||||||
23 | maintain a bond in accordance with this Section. Each bond | ||||||
24 | shall be for the recovery of expenses, fines, or fees due to or |
| |||||||
| |||||||
1 | levied by the Department in accordance with this Act. The bond | ||||||
2 | shall be payable when the registrant fails to comply with any | ||||||
3 | provisions of this Act and shall be in the form of a surety | ||||||
4 | bond in the amount of $25,000 as prescribed by the Department | ||||||
5 | by rule. The bond shall be payable to the Department and shall | ||||||
6 | be issued by an insurance company authorized to do business in | ||||||
7 | this State. A copy of the bond, including any and all riders | ||||||
8 | and endorsements executed subsequent to the effective date of | ||||||
9 | the bond, shall be placed on file with the Department within 10 | ||||||
10 | days of the execution thereof. The bond may only be used for | ||||||
11 | the recovery of expenses or the collection of fines or fees due | ||||||
12 | to or levied by the Department and is not to be utilized for | ||||||
13 | any other purpose. | ||||||
14 | Section 55. Fees. | ||||||
15 | (a) The fees for the administration and enforcement of this | ||||||
16 | Act, including, but not limited to, original registration, | ||||||
17 | renewal, and restoration fees, shall be set by the Department | ||||||
18 | by rule. The fees shall not be refundable. | ||||||
19 | (b) All fees and other moneys collected under this Act | ||||||
20 | shall be deposited in the Appraisal Administration Fund. | ||||||
21 | Section 60. Returned checks; fines. Any person who | ||||||
22 | delivers a check or other payment to the Department that is | ||||||
23 | returned to the Department unpaid by the financial institution | ||||||
24 | upon which it is drawn shall pay to the Department, in addition |
| |||||||
| |||||||
1 | to the amount already owed to the Department, a fine of $50. | ||||||
2 | The fines imposed by this Section are in addition to any other | ||||||
3 | discipline provided under this Act for unregistered practice or | ||||||
4 | practice on a nonrenewed registration. The Department shall | ||||||
5 | notify the person that payment of fees and fines shall be paid | ||||||
6 | to the Department by certified check or money order within 30 | ||||||
7 | calendar days of the notification. If, after the expiration of | ||||||
8 | 30 days after the date of the notification, the person has | ||||||
9 | failed to submit the necessary remittance, the Department shall | ||||||
10 | automatically terminate the registration or deny the | ||||||
11 | application, without hearing. If, after termination or denial, | ||||||
12 | the person seeks a registration, he or she shall apply to the | ||||||
13 | Department for restoration or issuance of the registration and | ||||||
14 | pay all fees and fines due to the Department. The Department | ||||||
15 | may establish a fee for the processing of an application for | ||||||
16 | restoration of a registration to pay all expenses of processing | ||||||
17 | this application. The Secretary may waive the fines due under | ||||||
18 | this Section in individual cases where the Secretary finds that | ||||||
19 | the fines would be unreasonable or unnecessarily burdensome.
| ||||||
20 | Section 65. Disciplinary actions. | ||||||
21 | (a) The Department may refuse to issue or renew, or may | ||||||
22 | revoke, suspend, place on probation, reprimand, or take other | ||||||
23 | disciplinary or non-disciplinary action as the Department may | ||||||
24 | deem appropriate, including imposing fines not to exceed | ||||||
25 | $25,000 for each violation, with regard to any registration for |
| |||||||
| |||||||
1 | any one or combination of the following: | ||||||
2 | (1) Material misstatement in furnishing information to | ||||||
3 | the Department. | ||||||
4 | (2) Violations of this Act, or of the rules adopted | ||||||
5 | under this Act. | ||||||
6 | (3) Conviction of, or entry of a plea of guilty or nolo | ||||||
7 | contendere to any crime that is a felony under the laws of | ||||||
8 | the United States or any state or territory thereof or that | ||||||
9 | is a misdemeanor of which an essential element is | ||||||
10 | dishonesty, or any crime that is directly related to the | ||||||
11 | practice of the profession. | ||||||
12 | (4) Making any misrepresentation for the purpose of | ||||||
13 | obtaining registration or violating any provision of this | ||||||
14 | Act or the rules adopted under this Act pertaining to | ||||||
15 | advertising. | ||||||
16 | (5) Professional incompetence. | ||||||
17 | (6) Gross malpractice. | ||||||
18 | (7) Aiding or assisting another person in violating any | ||||||
19 | provision of this Act or rules adopted under this Act. | ||||||
20 | (8) Failing, within 30 days after requested, to provide | ||||||
21 | information in response to a written request made by the | ||||||
22 | Department. | ||||||
23 | (9) Engaging in dishonorable, unethical, or | ||||||
24 | unprofessional conduct of a character likely to deceive, | ||||||
25 | defraud, or harm the public. | ||||||
26 | (10) Discipline by another state, District of |
| |||||||
| |||||||
1 | Columbia, territory, or foreign nation, if at least one of | ||||||
2 | the grounds for the discipline is the same or substantially | ||||||
3 | equivalent to those set forth in this Section. | ||||||
4 | (11) A finding by the Department that the registrant, | ||||||
5 | after having his or her registration placed on probationary | ||||||
6 | status, has violated the terms of probation. | ||||||
7 | (12) Willfully making or filing false records or | ||||||
8 | reports in his or her practice, including, but not limited | ||||||
9 | to, false records filed with State agencies or departments. | ||||||
10 | (13) Filing false statements for collection of fees for | ||||||
11 | which services are not rendered. | ||||||
12 | (14) Practicing under a false or, except as provided by | ||||||
13 | law, an assumed name. | ||||||
14 | (15) Fraud or misrepresentation in applying for, or | ||||||
15 | procuring, a registration under this Act or in connection | ||||||
16 | with applying for renewal of a registration under this Act. | ||||||
17 | (16) Being adjudicated liable in a civil proceeding for | ||||||
18 | violation of a state or federal fair housing law. | ||||||
19 | (17) Failure to obtain or maintain the bond required | ||||||
20 | under Section 50 of this Act. | ||||||
21 | (b) The Department may refuse to issue or may suspend | ||||||
22 | without hearing as provided for in the Civil Administrative | ||||||
23 | Code the registration of any person who fails to file a return, | ||||||
24 | or to pay the tax, penalty or interest shown in a filed return, | ||||||
25 | or to pay any final assessment of the tax, penalty, or interest | ||||||
26 | as required by any tax Act administered by the Illinois |
| |||||||
| |||||||
1 | Department of Revenue, until such time as the requirements of | ||||||
2 | any such tax Act are satisfied. | ||||||
3 | Section 70. Injunctive action; cease and desist order. | ||||||
4 | (a) If any person violates the provisions of this Act, the | ||||||
5 | Secretary, in the name of the People of the State of Illinois, | ||||||
6 | through the Attorney General or the State's Attorney of the | ||||||
7 | county in which the violation is alleged to have occurred, may | ||||||
8 | petition for an order enjoining the violation or for an order | ||||||
9 | enforcing compliance with this Act. Upon the filing of a | ||||||
10 | verified petition, the court with appropriate jurisdiction may | ||||||
11 | issue a temporary restraining order, without notice or bond, | ||||||
12 | and may preliminarily and permanently enjoin the violation. If | ||||||
13 | it is established that the person has violated or is violating | ||||||
14 | the injunction, the court may punish the offender for contempt | ||||||
15 | of court. Proceedings under this Section are in addition to, | ||||||
16 | and not in lieu of, all other remedies and penalties provided | ||||||
17 | by this Act. | ||||||
18 | (b) Whenever, in the opinion of the Department, a person | ||||||
19 | violates any provision of this Act, the Department may issue a | ||||||
20 | rule to show cause why an order to cease and desist should not | ||||||
21 | be entered against that person. The rule shall clearly set | ||||||
22 | forth the grounds relied upon by the Department and shall allow | ||||||
23 | at least 7 days from the date of the rule to file an answer | ||||||
24 | satisfactory to the Department. Failure to answer to the | ||||||
25 | satisfaction of the Department shall cause an order to cease |
| |||||||
| |||||||
1 | and desist to be issued. | ||||||
2 | Section 75. Investigations; notice and hearing. The | ||||||
3 | Department may investigate the actions of any applicant or of | ||||||
4 | any person or persons rendering or offering to render any | ||||||
5 | services requiring registration under this Act or any person | ||||||
6 | holding or claiming to hold a registration as an appraisal | ||||||
7 | management company. The Department shall, before revoking, | ||||||
8 | suspending, placing on probation, reprimanding, or taking any | ||||||
9 | other disciplinary or non-disciplinary action under Section 65 | ||||||
10 | of this Act, at least 30 days before the date set for the | ||||||
11 | hearing, (i) notify the accused in writing of the charges made | ||||||
12 | and the time and place for the hearing on the charges, (ii) | ||||||
13 | direct him or her to file a written answer to the charges with | ||||||
14 | the Department under oath within 20 days after the service on | ||||||
15 | him or her of the notice, and (iii) inform the accused that, if | ||||||
16 | he or she fails to answer, default will be taken against him or | ||||||
17 | her or that his or her registration may be suspended, revoked, | ||||||
18 | placed on probationary status, or other disciplinary action | ||||||
19 | taken with regard to the registration, including limiting the | ||||||
20 | scope, nature, or extent of his or her practice, as the | ||||||
21 | Department may consider proper. At the time and place fixed in | ||||||
22 | the notice, the Department shall proceed to hear the charges | ||||||
23 | and the parties or their counsel shall be accorded ample | ||||||
24 | opportunity to present any pertinent statements, testimony, | ||||||
25 | evidence, and arguments. The Department may continue the |
| |||||||
| |||||||
1 | hearing from time to time. In case the person, after receiving | ||||||
2 | the notice, fails to file an answer, his or her registration | ||||||
3 | may, in the discretion of the Department, be suspended, | ||||||
4 | revoked, placed on probationary status, or the Department may | ||||||
5 | take whatever disciplinary action considered proper, including | ||||||
6 | limiting the scope, nature, or extent of the person's practice | ||||||
7 | or the imposition of a fine, without a hearing, if the act or | ||||||
8 | acts charged constitute sufficient grounds for that action | ||||||
9 | under this Act. The written notice may be served by personal | ||||||
10 | delivery or by certified mail to the address specified by the | ||||||
11 | accused in his or her last notification with the Department. | ||||||
12 | Section 80. Record of proceedings; transcript. The | ||||||
13 | Department, at its expense, shall preserve a record of all | ||||||
14 | proceedings at the formal hearing of any case. The notice of | ||||||
15 | hearing, complaint, all other documents in the nature of | ||||||
16 | pleadings, written motions filed in the proceedings, the | ||||||
17 | transcripts of testimony, the report of the hearing officer, | ||||||
18 | and orders of the Department shall be in the record of the | ||||||
19 | proceeding. The Department shall furnish a transcript of the | ||||||
20 | record to any person interested in the hearing upon payment of | ||||||
21 | the fee required under Section 2105-115 of the Department of | ||||||
22 | Professional Regulation Law. | ||||||
23 | Section 85. Subpoenas; depositions; oaths. The Department | ||||||
24 | has the power to subpoena documents, books, records, or other |
| |||||||
| |||||||
1 | materials and to bring before it any person and to take | ||||||
2 | testimony either orally or by deposition, or both, with the | ||||||
3 | same fees and mileage and in the same manner as prescribed in | ||||||
4 | civil cases in the courts of this State. | ||||||
5 | The Secretary and the designated hearing officer have the | ||||||
6 | power to administer oaths to witnesses at any hearing that the | ||||||
7 | Department is authorized to conduct, and any other oaths | ||||||
8 | authorized in any Act administered by the Department. | ||||||
9 | Section 90. Compelling testimony. Any circuit court, upon | ||||||
10 | application of the Department or designated hearing officer may | ||||||
11 | enter an order requiring the attendance of witnesses and their | ||||||
12 | testimony, and the production of documents, papers, files, | ||||||
13 | books, and records in connection with any hearing or | ||||||
14 | investigation. The court may compel obedience to its order by | ||||||
15 | proceedings for contempt. | ||||||
16 | Section 95. Findings and recommendations. At the | ||||||
17 | conclusion of the hearing, the designated hearing officer shall | ||||||
18 | present to the Secretary a written report of his or her | ||||||
19 | findings of fact, conclusions of law, and recommendations. The | ||||||
20 | report shall contain a finding whether or not the accused | ||||||
21 | person violated this Act or its rules or failed to comply with | ||||||
22 | the conditions required in this Act or its rules. The hearing | ||||||
23 | officer shall specify the nature of any violations or failure | ||||||
24 | to comply and shall make his or her recommendations to the |
| |||||||
| |||||||
1 | Secretary. In making recommendations for any disciplinary | ||||||
2 | actions, the hearing officer may take into consideration all | ||||||
3 | facts and circumstances bearing upon the reasonableness of the | ||||||
4 | conduct of the accused and the potential for future harm to the | ||||||
5 | public, including, but not limited to, previous discipline of | ||||||
6 | the accused by the Department, intent, degree of harm to the | ||||||
7 | public and likelihood of harm in the future, any restitution | ||||||
8 | made by the accused, and whether the incident or incidents | ||||||
9 | contained in the complaint appear to be isolated or represent a | ||||||
10 | continuing pattern of conduct. In making his or her | ||||||
11 | recommendations for discipline, the hearing officer shall | ||||||
12 | endeavor to ensure that the severity of the discipline | ||||||
13 | recommended is reasonably related to the severity of the | ||||||
14 | violation.
The report of findings of fact, conclusions of law, | ||||||
15 | and recommendation of the hearing officer shall be the basis | ||||||
16 | for the Department's order refusing to issue, restore, or renew | ||||||
17 | a registration, or otherwise disciplining a registrant. If the | ||||||
18 | Secretary disagrees with the recommendations of the hearing | ||||||
19 | officer, the Secretary may issue an order in contravention of | ||||||
20 | the hearing officer recommendations. The finding is not | ||||||
21 | admissible in evidence against the person in a criminal | ||||||
22 | prosecution brought for a violation of this Act, but the | ||||||
23 | hearing and finding are not a bar to a criminal prosecution | ||||||
24 | brought for a violation of this Act.
| ||||||
25 | Section 100. Hearing officer; rehearing. At the conclusion |
| |||||||
| |||||||
1 | of the hearing, a copy of the hearing officer's report shall be | ||||||
2 | served upon the applicant or registrant by the Department, | ||||||
3 | either personally or as provided in this Act for the service of | ||||||
4 | a notice of hearing. Within 20 days after service, the | ||||||
5 | applicant or registrant may present to the Department a motion | ||||||
6 | in writing for a rehearing, which shall specify the particular | ||||||
7 | grounds for rehearing. The Department may respond to the motion | ||||||
8 | for rehearing within 20 days after its service on the | ||||||
9 | Department. If no motion for rehearing is filed, then upon the | ||||||
10 | expiration of the time specified for filing such a motion, or | ||||||
11 | if a motion for rehearing is denied, then upon denial, the | ||||||
12 | Secretary may enter an order in accordance with recommendations | ||||||
13 | of the hearing officer except as provided in Sections 105 or | ||||||
14 | 110 of this Act. If the applicant or registrant orders from the | ||||||
15 | reporting service and pays for a transcript of the record | ||||||
16 | within the time for filing a motion for rehearing, the 20-day | ||||||
17 | period within which a motion may be filed shall commence upon | ||||||
18 | the delivery of the transcript to the applicant or registrant. | ||||||
19 | Section 105. Secretary; rehearing. Whenever the Secretary | ||||||
20 | believes that substantial justice has not been done in the | ||||||
21 | revocation, suspension, or refusal to issue, restore, or renew | ||||||
22 | a registration, or other discipline of an applicant or | ||||||
23 | registrant, he or she may order a rehearing by the same or | ||||||
24 | other hearing officers. |
| |||||||
| |||||||
1 | Section 110. Appointment of a hearing officer. The | ||||||
2 | Secretary has the authority to appoint any attorney licensed to | ||||||
3 | practice law in the State to serve as the hearing officer in | ||||||
4 | any action for refusal to issue, restore, or renew a | ||||||
5 | registration or to discipline a registrant. The hearing officer | ||||||
6 | has full authority to conduct the hearing. The hearing officer | ||||||
7 | shall report his or her findings of fact, conclusions of law, | ||||||
8 | and recommendations to the Secretary. If the Secretary | ||||||
9 | disagrees with the recommendation of the hearing officer, the | ||||||
10 | Secretary may issue an order in contravention of the | ||||||
11 | recommendation. | ||||||
12 | Section 115. Order or certified copy; prima facie proof. | ||||||
13 | An order or certified copy thereof, over the seal of the | ||||||
14 | Department and purporting to be signed by the Secretary, is | ||||||
15 | prima facie proof that: | ||||||
16 | (1) the signature is the genuine signature of the | ||||||
17 | Secretary; and | ||||||
18 | (2) the Secretary is duly appointed and qualified. | ||||||
19 | Section 120. Restoration of suspended or revoked | ||||||
20 | registration. At any time after the successful completion of a | ||||||
21 | term of suspension or revocation of a registration, the | ||||||
22 | Department may restore it to the registrant, upon the written | ||||||
23 | recommendation of the hearing officer, unless after an | ||||||
24 | investigation and a hearing the Secretary determines that |
| |||||||
| |||||||
1 | restoration is not in the public interest. | ||||||
2 | Section 125. Surrender of registration. Upon the | ||||||
3 | revocation or suspension of a registration, the registrant | ||||||
4 | shall immediately surrender his or her registration to the | ||||||
5 | Department. If the registrant fails to do so, the Department | ||||||
6 | has the right to seize the registration. | ||||||
7 | Section 130. Summary suspension of a registration. The | ||||||
8 | Secretary may summarily suspend the registration of any | ||||||
9 | registrant under this Act without a hearing, simultaneously | ||||||
10 | with the institution of proceedings for a hearing provided for | ||||||
11 | in Section 75 of this Act, if the Secretary finds that evidence | ||||||
12 | in the Secretary's possession indicates that the continuation | ||||||
13 | of practice by the registrant would constitute an imminent | ||||||
14 | danger to the public. In the event that the Secretary summarily | ||||||
15 | suspends the registration of a registrant under this Section | ||||||
16 | without a hearing, a hearing must be commenced within 30 days | ||||||
17 | after the suspension has occurred and concluded as | ||||||
18 | expeditiously as practical.
| ||||||
19 | Section 135. Administrative review; venue. | ||||||
20 | (a) All final administrative decisions of the Department | ||||||
21 | are subject to judicial review under the Administrative Review | ||||||
22 | Law and its rules. The term "administrative decision" is | ||||||
23 | defined as in Section 3-101 of the Code of Civil Procedure. |
| |||||||
| |||||||
1 | (b) Proceedings for judicial review shall be commenced in | ||||||
2 | the circuit court of the county in which the party applying for | ||||||
3 | review resides, but if the party is not a resident of Illinois, | ||||||
4 | the venue shall be in Sangamon County.
| ||||||
5 | Section 140. Certifications of record; costs. The | ||||||
6 | Department shall not be required to certify any record to the | ||||||
7 | court, to file an answer in court, or to otherwise appear in | ||||||
8 | any court in a judicial review proceeding unless and until the | ||||||
9 | Department has received from the plaintiff payment of the costs | ||||||
10 | of furnishing and certifying the record, which costs shall be | ||||||
11 | determined by the Department. Failure on the part of the | ||||||
12 | plaintiff to file the receipt in court is grounds for dismissal | ||||||
13 | of the action. | ||||||
14 | Section 145. Violations. Any person who is found to have | ||||||
15 | violated any provision of this Act is guilty of a Class A | ||||||
16 | misdemeanor. On conviction of a second or subsequent offense, | ||||||
17 | the violator is guilty of a Class 4 felony. | ||||||
18 | Section 150. Civil penalties. | ||||||
19 | (a) In addition to any other penalty provided by law, any | ||||||
20 | person who violates this Act shall forfeit and pay a civil | ||||||
21 | penalty to the Department in an amount not to exceed $25,000 | ||||||
22 | for each violation as determined by the Department. The civil | ||||||
23 | penalty shall be assessed by the Department in accordance with |
| |||||||
| |||||||
1 | the provisions of this Act.
| ||||||
2 | (b) The Department has the authority and power to | ||||||
3 | investigate any and all unregistered activity. | ||||||
4 | (c) The civil penalty shall be paid within 60 days after | ||||||
5 | the effective date of the order imposing the civil penalty. The | ||||||
6 | order shall constitute a judgment and may be filed and | ||||||
7 | execution had thereon in the same manner as any judgment from | ||||||
8 | any court of record. | ||||||
9 | (d) All moneys collected under this Section shall be | ||||||
10 | deposited into the Appraisal Administration Fund. | ||||||
11 | Section 155. Consent order. At any point in the | ||||||
12 | proceedings as provided in this Act, both parties may agree to | ||||||
13 | a negotiated consent order. The consent order shall be final | ||||||
14 | upon signature of the Secretary. | ||||||
15 | Section 160. Business practice provisions; standards of | ||||||
16 | practice. | ||||||
17 | (a) The Department may adopt by rule the Uniform Standards | ||||||
18 | of Professional Appraisal Practice as published from time to | ||||||
19 | time by the Appraisal Standards Board of the Appraisal | ||||||
20 | Foundation. Appraisal management companies shall not interfere | ||||||
21 | with adherence to the Uniform Standards of Professional | ||||||
22 | Appraisal Practice or the Real Estate Appraiser Act of 2002 or | ||||||
23 | a subsequent Act by individuals licensed under the respective | ||||||
24 | 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. The Department shall formulate rules pertaining | ||||||
16 | to customary and reasonable rates of compensation for complex | ||||||
17 | assignments consistent with the Final Interim Rule or other | ||||||
18 | rule of the federal Dodd-Frank Wall Street Reform and Consumer | ||||||
19 | Protection Act. The appraisal management company must certify | ||||||
20 | to the Department that it has policies and procedures in place | ||||||
21 | to be in compliance, however, the Department may not adopt | ||||||
22 | rules or policies that contradict or change the presumptions of | ||||||
23 | compliance as established under the Final Interim Rule of the | ||||||
24 | federal Dodd-Frank Wall Street Reform and Consumer Protection | ||||||
25 | Act.
| ||||||
26 | (g) No appraisal management company procuring or |
| |||||||
| |||||||
1 | facilitating an appraisal may have a direct or indirect | ||||||
2 | interest, financial or otherwise, in the real estate or the | ||||||
3 | transaction that is the subject of the appraisal, as defined by | ||||||
4 | the federal Dodd-Frank Wall Street Reform and Consumer | ||||||
5 | Protection Act, any amendments thereto, or successor acts or | ||||||
6 | other applicable provisions of federal law or regulations. | ||||||
7 | Section 165. Prohibited activities. | ||||||
8 | (a) No person or entity acting in the capacity of an | ||||||
9 | appraisal management company shall improperly influence or | ||||||
10 | attempt to improperly influence the development, reporting, | ||||||
11 | result, or review of any appraisal by engaging, without | ||||||
12 | limitation, in any of the following: | ||||||
13 | (1) Withholding or threatening to withhold timely | ||||||
14 | payment for a completed appraisal, except where addressed | ||||||
15 | in a mutually agreed upon contract. | ||||||
16 | (2) Withholding or threatening to withhold, either | ||||||
17 | expressed or by implication, future business from, or | ||||||
18 | demoting, or terminating, or threatening to demote or | ||||||
19 | terminate an Illinois licensed or certified appraiser. | ||||||
20 | (3) Expressly or impliedly promising future business, | ||||||
21 | promotions, or increased compensation for an independent | ||||||
22 | appraiser. | ||||||
23 | (4) Conditioning an assignment for an appraisal | ||||||
24 | service or the payment of an appraisal fee or salary or | ||||||
25 | bonus on the opinion, conclusion, or valuation to be |
| |||||||
| |||||||
1 | reached in an appraisal report. | ||||||
2 | (5) Requesting that an appraiser provide an estimated, | ||||||
3 | predetermined, or desired valuation in an appraisal report | ||||||
4 | or provide estimated values or sales at any time prior to | ||||||
5 | the appraiser's completion of an appraisal report. | ||||||
6 | (6) Allowing or directing the removal of an appraiser | ||||||
7 | from an appraisal panel without prior written notice to the | ||||||
8 | appraiser. | ||||||
9 | (7) Requiring an appraiser to sign a non-compete clause | ||||||
10 | when not an employee of the entity. | ||||||
11 | (8) Requiring an appraiser to sign any sort of | ||||||
12 | indemnification agreement that would require the appraiser | ||||||
13 | to defend and hold harmless the appraisal management | ||||||
14 | company or any of its agents, employees, or independent | ||||||
15 | contractors for any liability, damage, losses, or claims | ||||||
16 | arising out of the services performed by the appraisal | ||||||
17 | management company or its agents, employees, or | ||||||
18 | independent contractors and not the services performed by | ||||||
19 | the appraiser. | ||||||
20 | (9) Prohibiting or attempting to prohibit the | ||||||
21 | appraiser from including or referencing the appraisal fee, | ||||||
22 | the appraisal management company name or identity, or the | ||||||
23 | client's or lender's name or identity within the body of | ||||||
24 | the appraisal report. | ||||||
25 | (10) Require an appraiser to collect a fee from the | ||||||
26 | borrower or occupant of the property to be appraised. |
| |||||||
| |||||||
1 | (11) Knowingly withholding any end-user client | ||||||
2 | guidelines, policies, requirements, standards, assignment | ||||||
3 | conditions, and special instructions from an appraiser | ||||||
4 | prior to the acceptance of an appraisal assignment.
| ||||||
5 | (b) A person or entity may not structure an appraisal | ||||||
6 | assignment or a contract with an independent appraiser for the | ||||||
7 | purpose of evading the provisions of this Act.
| ||||||
8 | (c) No registrant or other person or entity may alter, | ||||||
9 | modify, or otherwise change a completed appraisal report | ||||||
10 | submitted by an independent appraiser, including without | ||||||
11 | limitation, by doing either of the following:
| ||||||
12 | (1) permanently or temporarily removing the | ||||||
13 | appraiser's signature or seal; or | ||||||
14 | (2) adding information to, or removing information | ||||||
15 | from, the appraisal report with an intent to change the | ||||||
16 | value conclusion or the condition of the property.
| ||||||
17 | (d) No appraisal management company may require an | ||||||
18 | appraiser to provide it with the appraiser's digital signature | ||||||
19 | or seal. However, nothing in this Act shall be deemed to | ||||||
20 | prohibit an appraiser from voluntarily providing his or her | ||||||
21 | digital signature or seal to another person on an | ||||||
22 | assignment-by-assignment basis, in accordance with USPAP. | ||||||
23 | (e) Nothing in this Act shall prohibit an appraisal | ||||||
24 | management company from requesting that an appraiser:
| ||||||
25 | (1) consider additional appropriate property | ||||||
26 | information, including the consideration of additional |
| |||||||
| |||||||
1 | comparable properties to make or support an appraisal; | ||||||
2 | (2) provide further detail, substantiation, or | ||||||
3 | explanation for the appraiser's value conclusion; or | ||||||
4 | (3) correct factual errors in the appraisal report. | ||||||
5 | Section 170. Confidentiality. All information collected by | ||||||
6 | the Department in the course of an examination or investigation | ||||||
7 | of a licensee or applicant, including, but not limited to, any | ||||||
8 | complaint against a licensee filed with the Department and | ||||||
9 | information collected to investigate any such complaint, shall | ||||||
10 | be maintained for the confidential use of the Department and | ||||||
11 | shall not be disclosed. The Department may not disclose the | ||||||
12 | information to anyone other than law enforcement officials, | ||||||
13 | other regulatory agencies that have an appropriate regulatory | ||||||
14 | interest as determined by the Secretary, or to a party | ||||||
15 | presenting a lawful subpoena to the Department. Information and | ||||||
16 | documents disclosed to a federal, State, county, or local law | ||||||
17 | enforcement agency shall not be disclosed by the agency for any | ||||||
18 | purpose to any other agency or person. A formal complaint filed | ||||||
19 | against a licensee by the Department or any order issued by the | ||||||
20 | Department against a licensee or applicant shall be a public | ||||||
21 | record, except as otherwise prohibited by law. | ||||||
22 | Section 175. Illinois Administrative Procedure Act; | ||||||
23 | application. The Illinois Administrative Procedure Act is | ||||||
24 | expressly adopted and incorporated in this Act as if all of the |
| |||||||
| |||||||
1 | provisions of that Act were included in this Act, except that | ||||||
2 | the provision of paragraph (d) of Section 10-65 of the Illinois | ||||||
3 | Administrative Procedure Act, which provides that at hearings | ||||||
4 | the registrant has the right to show compliance with all lawful | ||||||
5 | requirements for retention or continuation or renewal of the | ||||||
6 | registration, is specifically excluded. For the purpose of this | ||||||
7 | Act, the notice required under Section 10-25 of the Illinois | ||||||
8 | Administrative Procedure Act is considered sufficient when | ||||||
9 | mailed to the last known address of a party. | ||||||
10 | Section 180. Home rule. The regulation and registration of | ||||||
11 | practice as an appraisal management company are exclusive | ||||||
12 | powers and functions of the State. A home rule unit may not | ||||||
13 | regulate the practice or require the registration as an | ||||||
14 | appraisal management company. This Section is a denial and | ||||||
15 | limitation of home rule powers and functions under subsection | ||||||
16 | (h) of Section 6 of Article VII of the Illinois Constitution. | ||||||
17 | Section 999. Effective date. This Act takes effect upon | ||||||
18 | becoming law. |