Illinois General Assembly - Full Text of SB0748
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Full Text of SB0748  100th General Assembly




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1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Banking Act is amended by changing
5Sections 78 and 79 as follows:
6    (205 ILCS 5/78)  (from Ch. 17, par. 390)
7    Sec. 78. Board of banks and trust companies; creation,
8members, appointment. There is created a Board which shall be
9known as the State Banking Board of Illinois which shall
10consist of the Director of Banking, who shall be its chairman,
11and 12 11 additional members. The Board shall be comprised of
12individuals interested in the banking industry. Two members
13shall be from State banks having total assets of not more than
14$75,000,000 at the time of their appointment; 2 members shall
15be from State banks having total assets of more than
16$75,000,000, but not more than $150,000,000 at the time of
17their appointment; 2 members shall be from State banks having
18total assets of more than $150,000,000, but not more than
19$500,000,000 at the time of their appointment; 2 members shall
20be from State banks having total assets of more than
21$500,000,000, but not more than $2,000,000,000 at the time of
22their appointment; , and one member shall be from a State bank
23having total assets of more than $2,000,000,000 at the time of



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1his or her appointment; and one member shall be from a savings
2bank organized under the Savings Bank Act. There shall be one
3alternate member from a savings bank organized under the
4Savings Bank Act whose role shall be to attend a meeting of the
5State Banking Board if and only if the sitting member from a
6savings bank is unable to attend the meeting. There shall be 2
7public members, neither of whom shall be an officer or director
8of or owner, whether directly or indirectly, of more than 5% of
9the outstanding capital stock of any bank or savings bank.
10Members of the State Banking Board of Illinois cease to be
11eligible to serve on the Board once they no longer meet the
12requirements of their original appointment; however, a member
13from a State bank shall not be disqualified solely due to a
14change in the bank's asset size.
15(Source: P.A. 99-39, eff. 1-1-16.)
16    (205 ILCS 5/79)  (from Ch. 17, par. 391)
17    Sec. 79. Board, terms of office. The terms of office of the
18State Banking Board of Illinois shall be 4 years, except that
19the initial Board appointments shall be staggered with the
20Governor initially appointing, with advice and consent of the
21Senate, 3 members to serve 2-year terms, 4 members to serve
223-year terms, and 4 members to serve 4-year terms. The sitting
23member from a savings bank organized under the Savings Bank Act
24and the alternate member from a savings bank organized under
25the Savings Bank Act shall be appointed for the same terms of



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1office. Members shall continue to serve on the Board until
2their replacement is appointed and qualified. Vacancies shall
3be filled by appointment by the Governor with advice and
4consent of the Senate.
5    No State Banking Board member shall serve more than 2 full
64-year terms of office.
7(Source: P.A. 96-1163, eff. 1-1-11; 97-813, eff. 7-13-12.)
8    (205 ILCS 205/12104 rep.)
9    (205 ILCS 205/Art. 12.2 rep.)
10    Section 10. The Savings Bank Act is amended by repealing
11Section 12104 and Article 12.2.
12    Section 15. The Residential Mortgage License Act of 1987 is
13amended by changing Sections 1-4, 4-1, and 4-8 as follows:
14    (205 ILCS 635/1-4)
15    Sec. 1-4. Definitions. The following words and phrases have
16the meanings given to them in this Section:
17        (a) "Residential real property" or "residential real
18    estate" shall mean any real property located in Illinois,
19    upon which is constructed or intended to be constructed a
20    dwelling. Those terms include a manufactured home as
21    defined in subdivision (53) of Section 9-102 of the Uniform
22    Commercial Code which is real property as defined in
23    Section 5-35 of the Conveyance and Encumbrance of



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1    Manufactured Homes as Real Property and Severance Act.
2        (b) "Making a residential mortgage loan" or "funding a
3    residential mortgage loan" shall mean for compensation or
4    gain, either directly or indirectly, advancing funds or
5    making a commitment to advance funds to a loan applicant
6    for a residential mortgage loan.
7        (c) "Soliciting, processing, placing, or negotiating a
8    residential mortgage loan" shall mean for compensation or
9    gain, either directly or indirectly, accepting or offering
10    to accept an application for a residential mortgage loan,
11    assisting or offering to assist in the processing of an
12    application for a residential mortgage loan on behalf of a
13    borrower, or negotiating or offering to negotiate the terms
14    or conditions of a residential mortgage loan with a lender
15    on behalf of a borrower including, but not limited to, the
16    submission of credit packages for the approval of lenders,
17    the preparation of residential mortgage loan closing
18    documents, including a closing in the name of a broker.
19        (d) "Exempt person or entity" shall mean the following:
20            (1) (i) Any banking organization or foreign
21        banking corporation licensed by the Illinois
22        Commissioner of Banks and Real Estate or the United
23        States Comptroller of the Currency to transact
24        business in this State; (ii) any national bank,
25        federally chartered savings and loan association,
26        federal savings bank, federal credit union; (iii)



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1        (blank); (iv) any bank, savings and loan association,
2        savings bank, or credit union organized under the laws
3        of this or any other state; (v) any Illinois Consumer
4        Installment Loan Act licensee; (vi) any insurance
5        company authorized to transact business in this State;
6        (vii) any entity engaged solely in commercial mortgage
7        lending; (viii) any service corporation of a savings
8        and loan association or savings bank organized under
9        the laws of this State or the service corporation of a
10        federally chartered savings and loan association or
11        savings bank having its principal place of business in
12        this State, other than a service corporation licensed
13        or entitled to reciprocity under the Real Estate
14        License Act of 2000; or (ix) any first tier subsidiary
15        of a bank, the charter of which is issued under the
16        Illinois Banking Act by the Illinois Commissioner of
17        Banks and Real Estate, or the first tier subsidiary of
18        a bank chartered by the United States Comptroller of
19        the Currency and that has its principal place of
20        business in this State, provided that the first tier
21        subsidiary is regularly examined by the Illinois
22        Commissioner of Banks and Real Estate or the
23        Comptroller of the Currency, or a consumer compliance
24        examination is regularly conducted by the Federal
25        Reserve Board.
26            (1.5) Any employee of a person or entity mentioned



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1        in item (1) of this subsection, when acting for such
2        person or entity, or any registered mortgage loan
3        originator when acting for an entity described in
4        subsection (tt) of this Section.
5            (1.8) Any person or entity that does not originate
6        mortgage loans in the ordinary course of business, but
7        makes or acquires residential mortgage loans with his
8        or her own funds for his or her or its own investment
9        without intent to make, acquire, or resell more than 3
10        residential mortgage loans in any one calendar year.
11            (2) (Blank).
12            (3) Any person employed by a licensee to assist in
13        the performance of the residential mortgage licensee's
14        activities regulated by this Act who is compensated in
15        any manner by only one licensee.
16            (4) (Blank).
17            (5) Any individual, corporation, partnership, or
18        other entity that originates, services, or brokers
19        residential mortgage loans, as these activities are
20        defined in this Act, and who or which receives no
21        compensation for those activities, subject to the
22        Commissioner's regulations and the federal Secure and
23        Fair Enforcement for Mortgage Licensing Act of 2008 and
24        the rules promulgated under that Act with regard to the
25        nature and amount of compensation.
26            (6) (Blank).



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1        (e) "Licensee" or "residential mortgage licensee"
2    shall mean a person, partnership, association,
3    corporation, or any other entity who or which is licensed
4    pursuant to this Act to engage in the activities regulated
5    by this Act.
6        (f) "Mortgage loan" "residential mortgage loan" or
7    "home mortgage loan" shall mean any loan primarily for
8    personal, family, or household use that is secured by a
9    mortgage, deed of trust, or other equivalent consensual
10    security interest on a dwelling as defined in Section
11    103(v) of the federal Truth in Lending Act, or residential
12    real estate upon which is constructed or intended to be
13    constructed a dwelling.
14        (g) "Lender" shall mean any person, partnership,
15    association, corporation, or any other entity who either
16    lends or invests money in residential mortgage loans.
17        (h) "Ultimate equitable owner" shall mean a person who,
18    directly or indirectly, owns or controls an ownership
19    interest in a corporation, foreign corporation, alien
20    business organization, trust, or any other form of business
21    organization regardless of whether the person owns or
22    controls the ownership interest through one or more persons
23    or one or more proxies, powers of attorney, nominees,
24    corporations, associations, partnerships, trusts, joint
25    stock companies, or other entities or devices, or any
26    combination thereof.



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1        (i) "Residential mortgage financing transaction" shall
2    mean the negotiation, acquisition, sale, or arrangement
3    for or the offer to negotiate, acquire, sell, or arrange
4    for, a residential mortgage loan or residential mortgage
5    loan commitment.
6        (j) "Personal residence address" shall mean a street
7    address and shall not include a post office box number.
8        (k) "Residential mortgage loan commitment" shall mean
9    a contract for residential mortgage loan financing.
10        (l) "Party to a residential mortgage financing
11    transaction" shall mean a borrower, lender, or loan broker
12    in a residential mortgage financing transaction.
13        (m) "Payments" shall mean payment of all or any of the
14    following: principal, interest and escrow reserves for
15    taxes, insurance and other related reserves, and
16    reimbursement for lender advances.
17        (n) "Commissioner" shall mean the Commissioner of
18    Banks and Real Estate, except that, beginning on April 6,
19    2009 (the effective date of Public Act 95-1047), all
20    references in this Act to the Commissioner of Banks and
21    Real Estate are deemed, in appropriate contexts, to be
22    references to the Secretary of Financial and Professional
23    Regulation, or his or her designee, including the Director
24    of the Division of Banking of the Department of Financial
25    and Professional Regulation.
26        (n-1) "Director" shall mean the Director of the



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1    Division of Banking of the Department of Financial and
2    Professional Regulation, except that, beginning on July
3    31, 2009 (the effective date of Public Act 96-112), all
4    references in this Act to the Director are deemed, in
5    appropriate contexts, to be the Secretary of Financial and
6    Professional Regulation, or his or her designee, including
7    the Director of the Division of Banking of the Department
8    of Financial and Professional Regulation.
9        (o) "Loan brokering", "brokering", or "brokerage
10    service" shall mean the act of helping to obtain from
11    another entity, for a borrower, a loan secured by
12    residential real estate situated in Illinois or assisting a
13    borrower in obtaining a loan secured by residential real
14    estate situated in Illinois in return for consideration to
15    be paid by either the borrower or the lender including, but
16    not limited to, contracting for the delivery of residential
17    mortgage loans to a third party lender and soliciting,
18    processing, placing, or negotiating residential mortgage
19    loans.
20        (p) "Loan broker" or "broker" shall mean a person,
21    partnership, association, corporation, or limited
22    liability company, other than those persons, partnerships,
23    associations, corporations, or limited liability companies
24    exempted from licensing pursuant to Section 1-4,
25    subsection (d), of this Act, who performs the activities
26    described in subsections (c), (o), and (yy) of this



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1    Section.
2        (q) "Servicing" shall mean the collection or
3    remittance for or the right or obligation to collect or
4    remit for any lender, noteowner, noteholder, or for a
5    licensee's own account, of payments, interests, principal,
6    and trust items such as hazard insurance and taxes on a
7    residential mortgage loan in accordance with the terms of
8    the residential mortgage loan; and includes loan payment
9    follow-up, delinquency loan follow-up, loan analysis and
10    any notifications to the borrower that are necessary to
11    enable the borrower to keep the loan current and in good
12    standing. "Servicing" includes management of third-party
13    entities acting on behalf of a residential mortgage
14    licensee for the collection of delinquent payments and the
15    use by such third-party entities of said licensee's
16    servicing records or information, including their use in
17    foreclosure.
18        (r) "Full service office" shall mean an office,
19    provided by the licensee and not subleased from the
20    licensee's employees, and staff in Illinois reasonably
21    adequate to handle efficiently communications, questions,
22    and other matters relating to any application for, or an
23    existing home mortgage secured by residential real estate
24    situated in Illinois with respect to which the licensee is
25    brokering, funding originating, purchasing, or servicing.
26    The management and operation of each full service office



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1    must include observance of good business practices such as
2    proper signage; adequate, organized, and accurate books
3    and records; ample phone lines, hours of business, staff
4    training and supervision, and provision for a mechanism to
5    resolve consumer inquiries, complaints, and problems. The
6    Commissioner shall issue regulations with regard to these
7    requirements and shall include an evaluation of compliance
8    with this Section in his or her periodic examination of
9    each licensee.
10        (s) "Purchasing" shall mean the purchase of
11    conventional or government-insured mortgage loans secured
12    by residential real estate situated in Illinois from either
13    the lender or from the secondary market.
14        (t) "Borrower" shall mean the person or persons who
15    seek the services of a loan broker, originator, or lender.
16        (u) "Originating" shall mean the issuing of
17    commitments for and funding of residential mortgage loans.
18        (v) "Loan brokerage agreement" shall mean a written
19    agreement in which a broker or loan broker agrees to do
20    either of the following:
21            (1) obtain a residential mortgage loan for the
22        borrower or assist the borrower in obtaining a
23        residential mortgage loan; or
24            (2) consider making a residential mortgage loan to
25        the borrower.
26        (w) "Advertisement" shall mean the attempt by



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1    publication, dissemination, or circulation to induce,
2    directly or indirectly, any person to enter into a
3    residential mortgage loan agreement or residential
4    mortgage loan brokerage agreement relative to a mortgage
5    secured by residential real estate situated in Illinois.
6        (x) (Blank). "Residential Mortgage Board" shall mean
7    the Residential Mortgage Board created in Section 1-5 of
8    this Act.
9        (y) "Government-insured mortgage loan" shall mean any
10    mortgage loan made on the security of residential real
11    estate insured by the Department of Housing and Urban
12    Development or Farmers Home Loan Administration, or
13    guaranteed by the Veterans Administration.
14        (z) "Annual audit" shall mean a certified audit of the
15    licensee's books and records and systems of internal
16    control performed by a certified public accountant in
17    accordance with generally accepted accounting principles
18    and generally accepted auditing standards.
19        (aa) "Financial institution" shall mean a savings and
20    loan association, savings bank, credit union, or a bank
21    organized under the laws of Illinois or a savings and loan
22    association, savings bank, credit union or a bank organized
23    under the laws of the United States and headquartered in
24    Illinois.
25        (bb) "Escrow agent" shall mean a third party,
26    individual or entity charged with the fiduciary obligation



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1    for holding escrow funds on a residential mortgage loan
2    pending final payout of those funds in accordance with the
3    terms of the residential mortgage loan.
4        (cc) "Net worth" shall have the meaning ascribed
5    thereto in Section 3-5 of this Act.
6        (dd) "Affiliate" shall mean:
7            (1) any entity that directly controls or is
8        controlled by the licensee and any other company that
9        is directly affecting activities regulated by this Act
10        that is controlled by the company that controls the
11        licensee;
12            (2) any entity:
13                (A) that is controlled, directly or
14            indirectly, by a trust or otherwise, by or for the
15            benefit of shareholders who beneficially or
16            otherwise control, directly or indirectly, by
17            trust or otherwise, the licensee or any company
18            that controls the licensee; or
19                (B) a majority of the directors or trustees of
20            which constitute a majority of the persons holding
21            any such office with the licensee or any company
22            that controls the licensee;
23            (3) any company, including a real estate
24        investment trust, that is sponsored and advised on a
25        contractual basis by the licensee or any subsidiary or
26        affiliate of the licensee.



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1        (ee) "First tier subsidiary" shall be defined by
2    regulation incorporating the comparable definitions used
3    by the Office of the Comptroller of the Currency and the
4    Illinois Commissioner of Banks and Real Estate.
5        (ff) "Gross delinquency rate" means the quotient
6    determined by dividing (1) the sum of (i) the number of
7    government-insured residential mortgage loans funded or
8    purchased by a licensee in the preceding calendar year that
9    are delinquent and (ii) the number of conventional
10    residential mortgage loans funded or purchased by the
11    licensee in the preceding calendar year that are delinquent
12    by (2) the sum of (i) the number of government-insured
13    residential mortgage loans funded or purchased by the
14    licensee in the preceding calendar year and (ii) the number
15    of conventional residential mortgage loans funded or
16    purchased by the licensee in the preceding calendar year.
17        (gg) "Delinquency rate factor" means the factor set by
18    rule of the Commissioner that is multiplied by the average
19    gross delinquency rate of licensees, determined annually
20    for the immediately preceding calendar year, for the
21    purpose of determining which licensees shall be examined by
22    the Commissioner pursuant to subsection (b) of Section 4-8
23    of this Act.
24        (hh) "Loan originator" means any natural person who,
25    for compensation or in the expectation of compensation,
26    either directly or indirectly makes, offers to make,



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1    solicits, places, or negotiates a residential mortgage
2    loan. This definition applies only to Section 7-1 of this
3    Act.
4        (ii) "Confidential supervisory information" means any
5    report of examination, visitation, or investigation
6    prepared by the Commissioner under this Act, any report of
7    examination visitation, or investigation prepared by the
8    state regulatory authority of another state that examines a
9    licensee, any document or record prepared or obtained in
10    connection with or relating to any examination,
11    visitation, or investigation, and any record prepared or
12    obtained by the Commissioner to the extent that the record
13    summarizes or contains information derived from any
14    report, document, or record described in this subsection.
15    "Confidential supervisory information" does not include
16    any information or record routinely prepared by a licensee
17    and maintained in the ordinary course of business or any
18    information or record that is required to be made publicly
19    available pursuant to State or federal law or rule.
20        (jj) "Mortgage loan originator" means an individual
21    who for compensation or gain or in the expectation of
22    compensation or gain:
23            (i) takes a residential mortgage loan application;
24        or
25            (ii) offers or negotiates terms of a residential
26        mortgage loan.



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1        "Mortgage loan originator" includes an individual
2    engaged in loan modification activities as defined in
3    subsection (yy) of this Section. A mortgage loan originator
4    engaged in loan modification activities shall report those
5    activities to the Department of Financial and Professional
6    Regulation in the manner provided by the Department;
7    however, the Department shall not impose a fee for
8    reporting, nor require any additional qualifications to
9    engage in those activities beyond those provided pursuant
10    to this Act for mortgage loan originators.
11        "Mortgage loan originator" does not include an
12    individual engaged solely as a loan processor or
13    underwriter except as otherwise provided in subsection (d)
14    of Section 7-1A of this Act.
15        "Mortgage loan originator" does not include a person or
16    entity that only performs real estate brokerage activities
17    and is licensed in accordance with the Real Estate License
18    Act of 2000, unless the person or entity is compensated by
19    a lender, a mortgage broker, or other mortgage loan
20    originator, or by any agent of that lender, mortgage
21    broker, or other mortgage loan originator.
22        "Mortgage loan originator" does not include a person or
23    entity solely involved in extensions of credit relating to
24    timeshare plans, as that term is defined in Section
25    101(53D) of Title 11, United States Code.
26        (kk) "Depository institution" has the same meaning as



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1    in Section 3 of the Federal Deposit Insurance Act, and
2    includes any credit union.
3        (ll) "Dwelling" means a residential structure or
4    mobile home which contains one to 4 family housing units,
5    or individual units of condominiums or cooperatives.
6        (mm) "Immediate family member" means a spouse, child,
7    sibling, parent, grandparent, or grandchild, and includes
8    step-parents, step-children, step-siblings, or adoptive
9    relationships.
10        (nn) "Individual" means a natural person.
11        (oo) "Loan processor or underwriter" means an
12    individual who performs clerical or support duties as an
13    employee at the direction of and subject to the supervision
14    and instruction of a person licensed, or exempt from
15    licensing, under this Act. "Clerical or support duties"
16    includes subsequent to the receipt of an application:
17            (i) the receipt, collection, distribution, and
18        analysis of information common for the processing or
19        underwriting of a residential mortgage loan; and
20            (ii) communicating with a consumer to obtain the
21        information necessary for the processing or
22        underwriting of a loan, to the extent that the
23        communication does not include offering or negotiating
24        loan rates or terms, or counseling consumers about
25        residential mortgage loan rates or terms. An
26        individual engaging solely in loan processor or



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1        underwriter activities shall not represent to the
2        public, through advertising or other means of
3        communicating or providing information, including the
4        use of business cards, stationery, brochures, signs,
5        rate lists, or other promotional items, that the
6        individual can or will perform any of the activities of
7        a mortgage loan originator.
8        (pp) "Nationwide Mortgage Licensing System and
9    Registry" means a mortgage licensing system developed and
10    maintained by the Conference of State Bank Supervisors and
11    the American Association of Residential Mortgage
12    Regulators for the licensing and registration of licensed
13    mortgage loan originators.
14        (qq) "Nontraditional mortgage product" means any
15    mortgage product other than a 30-year fixed rate mortgage.
16        (rr) "Person" means a natural person, corporation,
17    company, limited liability company, partnership, or
18    association.
19        (ss) "Real estate brokerage activity" means any
20    activity that involves offering or providing real estate
21    brokerage services to the public, including:
22            (1) acting as a real estate agent or real estate
23        broker for a buyer, seller, lessor, or lessee of real
24        property;
25            (2) bringing together parties interested in the
26        sale, purchase, lease, rental, or exchange of real



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1        property;
2            (3) negotiating, on behalf of any party, any
3        portion of a contract relating to the sale, purchase,
4        lease, rental, or exchange of real property, other than
5        in connection with providing financing with respect to
6        any such transaction;
7            (4) engaging in any activity for which a person
8        engaged in the activity is required to be registered or
9        licensed as a real estate agent or real estate broker
10        under any applicable law; or
11            (5) offering to engage in any activity, or act in
12        any capacity, described in this subsection (ss).
13        (tt) "Registered mortgage loan originator" means any
14    individual that:
15            (1) meets the definition of mortgage loan
16        originator and is an employee of:
17                (A) a depository institution;
18                (B) a subsidiary that is:
19                    (i) owned and controlled by a depository
20                institution; and
21                    (ii) regulated by a federal banking
22                agency; or
23                (C) an institution regulated by the Farm
24            Credit Administration; and
25            (2) is registered with, and maintains a unique
26        identifier through, the Nationwide Mortgage Licensing



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1        System and Registry.
2        (uu) "Unique identifier" means a number or other
3    identifier assigned by protocols established by the
4    Nationwide Mortgage Licensing System and Registry.
5        (vv) "Residential mortgage license" means a license
6    issued pursuant to Section 1-3, 2-2, or 2-6 of this Act.
7        (ww) "Mortgage loan originator license" means a
8    license issued pursuant to Section 7-1A, 7-3, or 7-6 of
9    this Act.
10        (xx) "Secretary" means the Secretary of the Department
11    of Financial and Professional Regulation, or a person
12    authorized by the Secretary or by this Act to act in the
13    Secretary's stead.
14        (yy) "Loan modification" means, for compensation or
15    gain, either directly or indirectly offering or
16    negotiating on behalf of a borrower or homeowner to adjust
17    the terms of a residential mortgage loan in a manner not
18    provided for in the original or previously modified
19    mortgage loan.
20        (zz) "Short sale facilitation" means, for compensation
21    or gain, either directly or indirectly offering or
22    negotiating on behalf of a borrower or homeowner to
23    facilitate the sale of residential real estate subject to
24    one or more residential mortgage loans or debts
25    constituting liens on the property in which the proceeds
26    from selling the residential real estate will fall short of



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1    the amount owed and the lien holders are contacted to agree
2    to release their lien on the residential real estate and
3    accept less than the full amount owed on the debt.
4    The Commissioner may define by rule and regulation any
5terms used in this Act for the efficient and clear
6administration of this Act.
7(Source: P.A. 98-749, eff. 7-16-14; 98-1081, eff. 1-1-15;
899-78, eff. 7-20-15.)
9    (205 ILCS 635/4-1)  (from Ch. 17, par. 2324-1)
10    Sec. 4-1. Commissioner of Banks and Real Estate; functions,
11powers, and duties. The functions, powers, and duties of the
12Commissioner of Banks and Real Estate shall include the
14        (a) to issue or refuse to issue any license as provided
15    by this Act;
16        (b) to revoke or suspend for cause any license issued
17    under this Act;
18        (c) to keep records of all licenses issued under this
19    Act;
20        (d) to receive, consider, investigate, and act upon
21    complaints made by any person in connection with any
22    residential mortgage licensee in this State;
23        (e) (blank); to consider and act upon any
24    recommendations from the Residential Mortgage Board;
25        (f) to prescribe the forms of and receive:



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1            (1) applications for licenses; and
2            (2) all reports and all books and records required
3        to be made by any licensee under this Act, including
4        annual audited financial statements and annual reports
5        of mortgage activity;
6        (g) to adopt rules and regulations necessary and proper
7    for the administration of this Act;
8        (h) to subpoena documents and witnesses and compel
9    their attendance and production, to administer oaths, and
10    to require the production of any books, papers, or other
11    materials relevant to any inquiry authorized by this Act;
12        (h-1) to issue orders against any person, if the
13    Commissioner has reasonable cause to believe that an
14    unsafe, unsound, or unlawful practice has occurred, is
15    occurring, or is about to occur, if any person has
16    violated, is violating, or is about to violate any law,
17    rule, or written agreement with the Commissioner, or for
18    the purpose of administering the provisions of this Act and
19    any rule adopted in accordance with the Act;
20        (h-2) to address any inquiries to any licensee, or the
21    officers thereof, in relation to its activities and
22    conditions, or any other matter connected with its affairs,
23    and it shall be the duty of any licensee or person so
24    addressed, to promptly reply in writing to such inquiries.
25    The Commissioner may also require reports from any licensee
26    at any time the Commissioner may deem desirable;



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1        (i) to require information with regard to any license
2    applicant as he or she may deem desirable, with due regard
3    to the paramount interests of the public as to the
4    experience, background, honesty, truthfulness, integrity,
5    and competency of the license applicant as to financial
6    transactions involving primary or subordinate mortgage
7    financing, and where the license applicant is an entity
8    other than an individual, as to the honesty, truthfulness,
9    integrity, and competency of any officer or director of the
10    corporation, association, or other entity, or the members
11    of a partnership;
12        (j) to examine the books and records of every licensee
13    under this Act at intervals as specified in Section 4-2;
14        (k) to enforce provisions of this Act;
15        (l) to levy fees, fines, and charges for services
16    performed in administering this Act; the aggregate of all
17    fees collected by the Commissioner on and after the
18    effective date of this Act shall be paid promptly after
19    receipt of the same, accompanied by a detailed statement
20    thereof, into the Residential Finance Regulatory Fund
21    under Section 4-1.5 of this Act; the amounts deposited into
22    that Fund shall be used for the ordinary and contingent
23    expenses of the Office of Banks and Real Estate. Nothing in
24    this Act shall prevent continuing the practice of paying
25    expenses involving salaries, retirement, social security,
26    and State-paid insurance of State officers by



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1    appropriation from the General Revenue Fund.
2        (m) to appoint examiners, supervisors, experts, and
3    special assistants as needed to effectively and
4    efficiently administer this Act;
5        (n) to conduct hearings for the purpose of:
6            (1) appeals of orders of the Commissioner;
7            (2) suspensions or revocations of licenses, or
8        fining of licensees;
9            (3) investigating:
10                (i) complaints against licensees; or
11                (ii) annual gross delinquency rates; and
12            (4) carrying out the purposes of this Act;
13        (o) to exercise exclusive visitorial power over a
14    licensee unless otherwise authorized by this Act or as
15    vested in the courts, or upon prior consultation with the
16    Commissioner, a foreign residential mortgage regulator
17    with an appropriate supervisory interest in the parent or
18    affiliate of a licensee;
19        (p) to enter into cooperative agreements with state
20    regulatory authorities of other states to provide for
21    examination of corporate offices or branches of those
22    states and to accept reports of such examinations;
23        (q) to assign an examiner or examiners to monitor the
24    affairs of a licensee with whatever frequency the
25    Commissioner determines appropriate and to charge the
26    licensee for reasonable and necessary expenses of the



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1    Commissioner, if in the opinion of the Commissioner an
2    emergency exists or appears likely to occur;
3        (r) to impose civil penalties of up to $50 per day
4    against a licensee for failing to respond to a regulatory
5    request or reporting requirement; and
6        (s) to enter into agreements in connection with the
7    Nationwide Mortgage Licensing System and Registry.
8(Source: P.A. 98-1081, eff. 1-1-15.)
9    (205 ILCS 635/4-8)  (from Ch. 17, par. 2324-8)
10    Sec. 4-8. Delinquency; examination.
11    (a) The Commissioner shall obtain from the U.S. Department
12of Housing and Urban Development that Department's loan
13delinquency data.
14    (b) The Commissioner shall conduct as part of an
15examination of each licensee a review of the licensee's loan
16delinquency data.
17    This subsection shall not be construed as a limitation of
18the Commissioner's examination authority under Section 4-2 of
19this Act or as otherwise provided in this Act. The Commissioner
20may require a licensee to provide loan delinquency data as the
21Commissioner deems necessary for the proper enforcement of the
23    (c) The purpose of the examination under subsection (b)
24shall be to determine whether the loan delinquency data of the
25licensee has resulted from practices which deviate from sound



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1and accepted mortgage underwriting practices, including but
2not limited to credit fraud, appraisal fraud and property
3inspection fraud. For the purpose of conducting this
4examination, the Commissioner may accept materials prepared
5for the U.S. Department of Housing and Urban Development. At
6the conclusion of the examination, the Commissioner shall make
7his or her findings available to the Residential Mortgage
9    (d) The Commissioner, at his or her discretion, may hold
10public hearings, or at the direction of the Residential
11Mortgage Board, shall hold public hearings. Such testimony
12shall be by a homeowner or mortgagor or his agent, whose
13residential interest is affected by the activities of the
14residential mortgage licensee subject to such hearing. At such
15public hearing, a witness may present testimony on his or her
16behalf concerning only his or her home, or home mortgage or a
17witness may authorize a third party to appear on his or her
18behalf. The testimony shall be restricted to information and
19comments related to a specific residence or specific
20residential mortgage application or applications for a
21residential mortgage or residential loan transaction. The
22testimony must be preceded by either a letter of complaint or a
23completed consumer complaint form prescribed by the
25    (e) The Commissioner shall, at the conclusion of the public
26hearings, release his or her findings and shall also make



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1public any action taken with respect to the licensee. The
2Commissioner shall also give full consideration to the findings
3of this examination whenever reapplication is made by the
4licensee for a new license under this Act.
5    (f) A licensee that is examined pursuant to subsection (b)
6shall submit to the Commissioner a plan which shall be designed
7to reduce that licensee's loan delinquencies. The plan shall be
8implemented by the licensee as approved by the Commissioner. A
9licensee that is examined pursuant to subsection (b) shall
10report monthly, for a one year period, one, 2, and 3 month loan
12    (g) Whenever the Commissioner finds that a licensee's loan
13delinquencies on insured mortgages is unusually high within a
14particular geographic area, he or she shall require that
15licensee to submit such information as is necessary to
16determine whether that licensee's practices have constituted
17credit fraud, appraisal fraud or property inspection fraud. The
18Commissioner shall promulgate such rules as are necessary to
19determine whether any licensee's loan delinquencies are
20unusually high within a particular area.
21(Source: P.A. 99-15, eff. 1-1-16.)
22    (205 ILCS 635/1-5 rep.)
23    Section 20. The Residential Mortgage License Act of 1987 is
24amended by repealing Section 1-5.
25    Section 99. Effective date. This Act takes effect upon



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1becoming law.