Full Text of SB2908 93rd General Assembly
SB2908 93RD GENERAL ASSEMBLY
|
|
|
93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004 SB2908
Introduced 2/6/2004, by M. Maggie Crotty SYNOPSIS AS INTRODUCED: |
|
205 ILCS 635/1-3 |
from Ch. 17, par. 2321-3 |
205 ILCS 635/2-3 |
from Ch. 17, par. 2322-3 |
205 ILCS 635/2-4 |
from Ch. 17, par. 2322-4 |
205 ILCS 635/2-6 |
from Ch. 17, par. 2322-6 |
205 ILCS 635/3-1 |
from Ch. 17, par. 2323-1 |
205 ILCS 635/3-2 |
from Ch. 17, par. 2323-2 |
205 ILCS 635/3-4 |
from Ch. 17, par. 2323-4 |
205 ILCS 635/3-5 |
from Ch. 17, par. 2323-5 |
205 ILCS 635/4-1 |
from Ch. 17, par. 2324-1 |
205 ILCS 635/4-5 |
from Ch. 17, par. 2324-5 |
205 ILCS 635/4-9.1 new |
|
205 ILCS 635/4-15 new |
|
|
Amends the Residential Mortgage Act of 1987. In provisions pertaining to applications for a residential mortgage license and disclosing information about any person, entity, or ultimate equitable owner that owns or controls stock ownership, requires reporting any class of stock of the license applicant (now 10% of any class of stock). Requires an applicant or licensee to aver with his or her license application or renewal that he or she will not knowingly employ or permit an individual to serve as an officer, director, or employee for the licensee if the individual has been convicted of a felony or any criminal offense relating to dishonesty or breach of trust unless the Commissioner of Banks and Real Estate has waived this requirement. Provides that the Commissioner may require a plan for the disposition of any residential mortgage loans not closed or funded when the licensee becomes inactive. Provides that the Commissioner may no longer require licensees to maintain a bond for errors and omissions in performing activities regulated by the Act. Provides that, beginning 2 years after the effective date of this amendatory Act, mortgage brokers and licensees may no longer substitute compilation financial statements with certain audits. Requires a licensee's corporate or full service branch office to comply with any applicable zoning laws or ordinances and home office or business regulations. Provides that the Commissioner may, in making rules with respect to net worth, establish separate requirements for not for profit entities or their affiliates that are serving economically depressed or financially underserved areas. Expands the Commissioner's functions, powers, and duties. Reinstates a Section to require licensees to submit annual reports of mortgage activity to the Commissioner. Creates a returned check policy for residential mortgage licensees and applicants. Increases certain fines.
|
| |
|
|
| FISCAL NOTE ACT MAY APPLY | |
|
|
A BILL FOR
|
|
|
|
|
SB2908 |
|
LRB093 18470 SAS 44184 b |
|
| 1 |
| AN ACT concerning financial regulation.
| 2 |
| Be it enacted by the People of the State of Illinois,
| 3 |
| represented in the General Assembly:
| 4 |
| Section 5. The Residential Mortgage License Act of 1987 is | 5 |
| amended by changing Sections 1-3, 2-3, 2-4, 2-6, 3-1, 3-2, 3-4, | 6 |
| 3-5, 4-1, and 4-5 and by adding Sections 4-9.1 and 4-15 as | 7 |
| follows:
| 8 |
| (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3)
| 9 |
| Sec. 1-3. Necessity for License; Scope of Act.
| 10 |
| (a) No person, partnership, association, corporation or | 11 |
| other entity
shall engage in the business of brokering, | 12 |
| funding, originating, servicing
or purchasing of residential | 13 |
| mortgage loans without first obtaining a
license from the | 14 |
| Commissioner in accordance with the licensing procedure
| 15 |
| provided in this Article I and such regulations as may be | 16 |
| promulgated by
the Commissioner. The licensing provisions of | 17 |
| this Section shall not apply
to any entity engaged solely in | 18 |
| commercial mortgage lending or
to any person, partnership | 19 |
| association, corporation or other entity
exempted pursuant to | 20 |
| Section 1-4, subsection (d), of this Act or in accordance
with | 21 |
| regulations promulgated by the Commissioner hereunder.
| 22 |
| (b) No person, partnership, association, corporation, or | 23 |
| other entity
except a licensee under this Act or an entity | 24 |
| exempt from licensing
pursuant to Section 1-4, subsection (d), | 25 |
| of this Act shall do any business
under any name or title, or | 26 |
| circulate or use any advertising or make any
representation or | 27 |
| give any information to any person, which indicates or
| 28 |
| reasonably implies activity within the scope
of this Act.
| 29 |
| (c) The Commissioner may, through the Attorney General, | 30 |
| request the circuit
court of either Cook or Sangamon County to | 31 |
| issue an injunction to restrain
any person from violating or | 32 |
| continuing to violate any of the foregoing
provisions of this |
|
|
|
SB2908 |
- 2 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| Section.
| 2 |
| (d) When the Commissioner has reasonable cause to believe | 3 |
| that any
entity which has not submitted an application for | 4 |
| licensure is conducting
any of the activities described in | 5 |
| subsection (a) hereof, the Commissioner
shall have the power to | 6 |
| examine all books and records of the entity and any
additional | 7 |
| documentation necessary in order to determine whether such
| 8 |
| entity should become licensed under this Act.
| 9 |
| (e) Any person, partnership, association, corporation or | 10 |
| other entity
who violates any provision of this Section commits | 11 |
| a business offense and
shall be fined an amount not to exceed | 12 |
| $25,000
$5,000 .
| 13 |
| (f) Each person, partnership, association, corporation or | 14 |
| other entity
conducting activities regulated by this Act shall | 15 |
| be issued one license.
Each office, place of business or | 16 |
| location at which a residential mortgage
licensee conducts any | 17 |
| part of his or her business must
be recorded with the | 18 |
| Commissioner pursuant to Section 2-8 of this Act.
| 19 |
| (g) Licensees under this Act shall solicit, broker, fund, | 20 |
| originate,
service and purchase residential mortgage loans | 21 |
| only in conformity with the
provisions of this Act and such | 22 |
| rules and regulations as may be promulgated
by the | 23 |
| Commissioner.
| 24 |
| (h) This Act applies to all entities doing business in | 25 |
| Illinois as
residential mortgage bankers, as defined by "An Act | 26 |
| to provide for the
regulation of mortgage bankers", approved | 27 |
| September 15, 1977, as amended,
regardless of whether licensed | 28 |
| under that or any prior Act. Any existing
residential mortgage | 29 |
| lender or residential mortgage broker in Illinois
whether or | 30 |
| not previously licensed, must operate in accordance with this | 31 |
| Act.
| 32 |
| (i) This Act is a successor Act to and a continuance of the | 33 |
| regulation
of residential mortgage bankers provided in, "An Act | 34 |
| to provide for the
regulation of mortgage bankers", approved | 35 |
| September 15, 1977, as amended.
| 36 |
| Entities and persons subject to the predecessor Act shall |
|
|
|
SB2908 |
- 3 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| be subject to
this Act from and after its effective date.
| 2 |
| (Source: P.A. 86-137; 87-642.)
| 3 |
| (205 ILCS 635/2-3) (from Ch. 17, par. 2322-3)
| 4 |
| Sec. 2-3. Application form.
| 5 |
| (a) Application for a residential mortgage license must be | 6 |
| made in
accordance with Section 2-6. The application shall be | 7 |
| in writing, under oath,
and on a form obtained from and | 8 |
| prescribed by the Commissioner.
| 9 |
| (b) The application shall contain the name and complete | 10 |
| business and
residential address or addresses of the license | 11 |
| applicant. If the license
applicant is a partnership, | 12 |
| association, corporation or other form of
business | 13 |
| organization, the application shall contain the names and | 14 |
| complete
business and residential addresses of each member, | 15 |
| director and principal
officer thereof. Such application shall | 16 |
| also include a description of the
activities of the license | 17 |
| applicant, in such detail and for such periods,
as the | 18 |
| Commissioner may require, including all of the following:
| 19 |
| (1) An affirmation of financial solvency noting such | 20 |
| capitalization
requirements as may be required by the | 21 |
| Commissioner, and access to such
credit as may be required | 22 |
| by the Commissioner.
| 23 |
| (2) An affirmation that the license applicant or its | 24 |
| members, directors or
principals as may be appropriate, are | 25 |
| at least 18 years of age.
| 26 |
| (3) Information as to the character, fitness, | 27 |
| financial and business
responsibility, background, | 28 |
| experience, and criminal record of any
(i) person, entity, | 29 |
| or ultimate equitable owner that owns or controls,
directly | 30 |
| or indirectly, any amount of
10% or more of any class of | 31 |
| stock of the license
applicant; (ii) person, entity, or | 32 |
| ultimate equitable owner that is not a
depository | 33 |
| institution, as defined in Section 1007.50 of the Savings | 34 |
| Bank
Act, that lends, provides, or infuses, directly or | 35 |
| indirectly, in any way,
funds to or into a license |
|
|
|
SB2908 |
- 4 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| applicant, in an amount equal to or more than 10% of
the | 2 |
| license applicant's net worth; (iii) person, entity, or | 3 |
| ultimate equitable
owner that controls, directly or | 4 |
| indirectly, the election of 25% or more of the
members of | 5 |
| the board of directors of a license applicant; or (iv) | 6 |
| person,
entity, or ultimate equitable owner that the | 7 |
| Commissioner finds influences
management of the license | 8 |
| applicant.
| 9 |
| (4) Upon written request by the licensee and | 10 |
| notwithstanding the
provisions of paragraphs (1), (2), and | 11 |
| (3) of this subsection, the Commissioner
may permit the | 12 |
| licensee to omit all or part of the information required by
| 13 |
| those paragraphs if, in lieu of the omitted information, | 14 |
| the licensee submits
an affidavit stating that the | 15 |
| information submitted on the licensee's previous
renewal | 16 |
| application is still true and accurate. The Commissioner | 17 |
| may
promulgate rules prescribing the form and content of | 18 |
| the affidavit that are
necessary to accomplish the purposes | 19 |
| of this Section.
| 20 |
| (5) Such other information as required by regulations | 21 |
| of the
Commissioner.
| 22 |
| (Source: P.A. 89-355, eff. 8-17-95.)
| 23 |
| (205 ILCS 635/2-4) (from Ch. 17, par. 2322-4)
| 24 |
| Sec. 2-4. Averments of Licensee. Each application for | 25 |
| license or for the
renewal of a license shall be accompanied by | 26 |
| the following averments stating
that the applicant:
| 27 |
| (a) Will maintain at least one full service office | 28 |
| within the
State of Illinois pursuant to Section 3-4 of | 29 |
| this Act;
| 30 |
| (b) Will maintain staff reasonably adequate to meet the | 31 |
| requirements of
Section 3-4 of this Act;
| 32 |
| (c) Will keep and maintain for 36 months the same | 33 |
| written records
as required by the federal Equal Credit | 34 |
| Opportunity Act, and any other
information required by | 35 |
| regulations of the Commissioner regarding any home
|
|
|
|
SB2908 |
- 5 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| mortgage in the course of the conduct of its residential | 2 |
| mortgage business;
| 3 |
| (d) Will file with the Commissioner, when due, any | 4 |
| report or reports
which it is required to file under any of | 5 |
| the provisions of this Act;
| 6 |
| (e) Will not engage, whether as principal or agent, in | 7 |
| the practice of
rejecting residential mortgage | 8 |
| applications without reasonable cause, or
varying terms or | 9 |
| application procedures without reasonable cause, for home
| 10 |
| mortgages on real estate within any specific geographic | 11 |
| area from the terms
or procedures generally provided by the | 12 |
| licensee within other geographic
areas of the State;
| 13 |
| (f) Will not engage in fraudulent home mortgage | 14 |
| underwriting practices;
| 15 |
| (g) Will not make payment, whether directly or | 16 |
| indirectly, of any kind
to any in house or fee appraiser of | 17 |
| any government or private money lending
agency with which | 18 |
| an application for a home mortgage has been filed for the
| 19 |
| purpose of influencing the independent judgment of the | 20 |
| appraiser with respect
to the value of any real estate | 21 |
| which is to be covered by such home mortgage;
| 22 |
| (h) Has filed tax returns (State and Federal) for the | 23 |
| past 3
years or filed with the Commissioner an accountant's | 24 |
| or attorney's
statement as to why no return was filed;
| 25 |
| (i) Will not engage in any discrimination or redlining | 26 |
| activities
prohibited by Section 3-8 of this Act;
| 27 |
| (j) Will not knowingly make any false promises likely | 28 |
| to influence or
persuade, or pursue a course of | 29 |
| misrepresentation and false promises
through agents, | 30 |
| solicitors, advertising or otherwise;
| 31 |
| (k) Will not knowingly misrepresent, circumvent or | 32 |
| conceal, through
whatever subterfuge or device, any of the | 33 |
| material particulars or the
nature thereof, regarding a | 34 |
| transaction to which it is a party to the
injury of another | 35 |
| party thereto;
| 36 |
| (l) Will disburse funds in accordance with its |
|
|
|
SB2908 |
- 6 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| agreements;
| 2 |
| (m) Has not committed a crime against the law of this | 3 |
| State, any other
state or of the United States, involving | 4 |
| moral turpitude, fraudulent or
dishonest dealing, and that | 5 |
| no final judgment has been entered against it in
a civil | 6 |
| action upon grounds of fraud, misrepresentation or deceit | 7 |
| which has
not been previously reported to the Commissioner;
| 8 |
| (n) Will account or deliver to any person any personal | 9 |
| property such as
money, fund, deposit, check, draft, | 10 |
| mortgage, other document or thing of
value, which has come | 11 |
| into its possession, and which is not its property,
or | 12 |
| which it is not in law or equity entitled to retain under | 13 |
| the
circumstances, at the time which has been agreed upon | 14 |
| or is required
by law, or, in the absence of a fixed time, | 15 |
| upon demand of the person
entitled to such accounting and | 16 |
| delivery;
| 17 |
| (o) Has not engaged in any conduct which would be cause | 18 |
| for denial of a
license;
| 19 |
| (p) Has not become insolvent;
| 20 |
| (q) Has not submitted an application for a license | 21 |
| under this Act which
contains a material misstatement;
| 22 |
| (r) Has not demonstrated by course of conduct, | 23 |
| negligence or incompetence
in performing any act for which | 24 |
| it is required to hold a license under this
Act;
| 25 |
| (s) Will advise the Commissioner in writing of any | 26 |
| changes to the
information submitted on the most recent | 27 |
| application for license within 30
days of said change. The | 28 |
| written notice must be signed in the same form as
the | 29 |
| application for license being amended;
| 30 |
| (t) Will comply with the provisions of this Act, or | 31 |
| with any lawful
order, rule or regulation made or issued | 32 |
| under the provisions of this Act;
| 33 |
| (u) Will submit to periodic examination by the | 34 |
| Commissioner as required
by this Act;
| 35 |
| (v) Will advise the Commissioner in writing of | 36 |
| judgments entered
against, and bankruptcy petitions by, |
|
|
|
SB2908 |
- 7 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| the license applicant within 5
days of occurrence;
| 2 |
| (w) Will advise the Commissioner in writing within 30 | 3 |
| days when the
license applicant requests a licensee under | 4 |
| this Act to repurchase a loan, and
the circumstances | 5 |
| therefor; and
| 6 |
| (x) Will advise the Commissioner in writing within 30 | 7 |
| days when the
license applicant is requested by another | 8 |
| entity to repurchase a loan, and the
circumstances | 9 |
| therefor ;
.
| 10 |
| (y) Will at all times act in a manner consistent with | 11 |
| subsections (a) and
(b) of Section 1-2 of this Act ;
.
| 12 |
| (z)
(x) Will not knowingly hire or employ a loan | 13 |
| originator who is
not registered with the Commissioner as | 14 |
| required under Section 7-1 of this Act ; and | 15 |
| (z-1) Will not knowingly employ or otherwise permit, | 16 |
| except with prior written consent of the Commissioner, an | 17 |
| individual to serve as an officer, director, or employee | 18 |
| for the licensee if the individual has been convicted of a | 19 |
| felony or any criminal offense relating to dishonesty or | 20 |
| breach of trust .
| 21 |
| A licensee who fails to fulfill obligations of an averment, | 22 |
| to comply with
averments made, or otherwise violates any of the | 23 |
| averments made under this
Section shall be subject to the | 24 |
| penalties in Section 4-5 of this Act.
| 25 |
| (Source: P.A. 93-561, eff. 1-1-04; revised 10-9-03.)
| 26 |
| (205 ILCS 635/2-6) (from Ch. 17, par. 2322-6)
| 27 |
| Sec. 2-6. License issuance and renewal; fee.
| 28 |
| (a) Beginning July 1, 2003, licenses shall be renewed every | 29 |
| year on the
anniversary of the date of issuance of the original | 30 |
| license.
Properly completed renewal application forms and | 31 |
| filing fees must be received
by the Commissioner 60 days prior | 32 |
| to the renewal date.
| 33 |
| (b) It shall be the responsibility of each licensee to | 34 |
| accomplish renewal
of its license; failure of the licensee to | 35 |
| receive renewal forms absent a
request sent by certified mail |
|
|
|
SB2908 |
- 8 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| for such forms will not waive said
responsibility. Failure by a | 2 |
| licensee to submit a properly completed
renewal application | 3 |
| form and fees in a timely fashion, absent a written
extension | 4 |
| from the Commissioner, will result in the assessment of
| 5 |
| additional fees, as follows:
| 6 |
| (1) A fee of $750 will be assessed to the licensee 30 | 7 |
| days
after the
proper renewal date and $1,500 each month | 8 |
| thereafter, until the
license is
either renewed or expires | 9 |
| pursuant to Section 2-6, subsections (c) and (d),
of this | 10 |
| Act.
| 11 |
| (2) Such fee will be assessed without prior notice to | 12 |
| the licensee, but
will be assessed only in cases wherein | 13 |
| the Commissioner has in his or her
possession documentation | 14 |
| of the licensee's continuing activity for which
the | 15 |
| unrenewed license was issued.
| 16 |
| (c) A license which is not renewed by the date required in | 17 |
| this Section
shall automatically become inactive. No activity | 18 |
| regulated by this Act
shall be conducted by the licensee when a | 19 |
| license becomes inactive. The Commissioner may require the | 20 |
| licensee to provide a plan for the disposition of any | 21 |
| residential mortgage loans not closed or funded when the | 22 |
| license becomes inactive. The Commissioner may approve the | 23 |
| licensee conducting activities regulated by this Act with an | 24 |
| inactive license for the sole purpose of assisting borrowers in | 25 |
| the closing or funding of loans for which the licensee had an | 26 |
| active license at the time the loan application was taken from | 27 |
| a borrower. An
inactive license may be reactivated by filing a | 28 |
| completed reactivation
application with the Commissioner upon
| 29 |
| , payment of the renewal fee, and payment
of a reactivation fee | 30 |
| equal to the renewal fee.
| 31 |
| (d) A license which is not renewed within one year of | 32 |
| becoming inactive
shall expire.
| 33 |
| (e) A licensee ceasing an activity or activities regulated | 34 |
| by this Act
and desiring to no longer be licensed shall so | 35 |
| inform the Commissioner in
writing and, at the same time, | 36 |
| convey the license and all other symbols or
indicia of |
|
|
|
SB2908 |
- 9 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| licensure. The licensee shall include a plan for the withdrawal
| 2 |
| from regulated business, including a timetable for the | 3 |
| disposition of the
business. Upon receipt of such written | 4 |
| notice, the Commissioner shall issue
a certified statement | 5 |
| canceling the license.
| 6 |
| (Source: P.A. 93-32, eff. 7-1-03; 93-561, eff. 1-1-04; revised | 7 |
| 9-23-03.)
| 8 |
| (205 ILCS 635/3-1) (from Ch. 17, par. 2323-1)
| 9 |
| Sec. 3-1. Bonds of licensees.
| 10 |
| (a) Every licensee, with respect to any person appointed or | 11 |
| elected
to any position requiring the receipt of payment, | 12 |
| management, or use of money
belonging to a residential mortgage | 13 |
| licensee engaged in the activities of
originating, servicing, | 14 |
| or purchasing mortgage loans or whose duties permit him
or her | 15 |
| to have access to or custody of any of its money or securities | 16 |
| or
custody of any money or securities belonging to third | 17 |
| parties or whose duties
permit him or her regularly to make | 18 |
| entries in the books or other records of a
licensee, shall, | 19 |
| before assuming his or her duties, maintain a fidelity bond in
| 20 |
| the amount of $100,000 by some fidelity insurance company | 21 |
| licensed to do
business in this State.
| 22 |
| (b) Each bond shall be for any loss the licensee may | 23 |
| sustain in money or
other property through the commission of | 24 |
| any dishonest or criminal act or
omission by any person | 25 |
| required to be bonded, whether committed alone or in
concert | 26 |
| with another. The bond shall be in the form and amount approved
| 27 |
| by the Commissioner who may at any time require one or more | 28 |
| additional
bonds. A true copy of every bond, including all | 29 |
| riders and endorsements
executed subsequent to the effective | 30 |
| date of the bond, shall be filed at
all times with the | 31 |
| Commissioner. Each bond shall provide that a
cancellation | 32 |
| thereof shall not become effective unless and until
30 days | 33 |
| notice in writing first shall have been given to the | 34 |
| Commissioner
unless he or she shall have approved the | 35 |
| cancellation earlier.
If the Commissioner believes the |
|
|
|
SB2908 |
- 10 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| licensee's business is being conducted in
an unsafe manner due | 2 |
| to the lack of bonds or the inadequacy of bonds,
he or she may | 3 |
| proceed against the licensee as provided for in Section 4-5.
| 4 |
| (c) All licensees shall maintain a bond in accordance with | 5 |
| this subsection.
Each bond shall be for the recovery of | 6 |
| expenses, fines, or fees due to or
levied by the Commissioner | 7 |
| in accordance with this Act. The bond shall be
payable when the | 8 |
| licensee fails to comply with any provisions of this Act and
| 9 |
| shall be in the form of a surety or licensure bond in the | 10 |
| amount and form as
prescribed by the Commissioner pursuant to | 11 |
| rules and regulations. The bond
shall be payable to the Office | 12 |
| of Banks and Real Estate and shall be issued by some insurance | 13 |
| company
authorized to do business in this State. A copy of the | 14 |
| bond, including any and
all riders and endorsements executed | 15 |
| subsequent to the effective date of the
bond, shall be placed | 16 |
| on file with the Office of Banks and Real Estate within 10 days | 17 |
| of the
execution thereof.
| 18 |
| (d) The Commissioner may promulgate rules with respect to | 19 |
| bonding
requirements for residential mortgage licensees that | 20 |
| are
reasonable and necessary to accomplish the purposes of this | 21 |
| Act.
| 22 |
| (e) The Commissioner may require licensees to maintain a | 23 |
| bond for errors and omissions in performing activities | 24 |
| regulated by this Act.
| 25 |
| (Source: P.A. 89-508, eff. 7-3-96.)
| 26 |
| (205 ILCS 635/3-2) (from Ch. 17, par. 2323-2)
| 27 |
| Sec. 3-2. Annual audit.
| 28 |
| (a) At the licensee's fiscal year-end, but in no
case more | 29 |
| than 12 months after the last audit conducted pursuant to this
| 30 |
| Section, except as otherwise provided in this Section, it shall | 31 |
| be
mandatory for each residential mortgage licensee to
cause | 32 |
| its books and accounts to be audited by a certified public | 33 |
| accountant
not connected with such licensee. The books and | 34 |
| records of all licensees
under this Act shall be maintained on | 35 |
| an accrual basis. The audit must be
sufficiently comprehensive |
|
|
|
SB2908 |
- 11 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| in scope to permit
the expression of an opinion on the | 2 |
| financial statements, which must be
prepared in accordance with | 3 |
| generally accepted accounting principles, and
must be | 4 |
| performed in accordance with generally accepted auditing | 5 |
| standards. Notwithstanding
the requirements of this | 6 |
| subsection, a licensee that is a first tier subsidiary
may | 7 |
| submit audited consolidated financial statements of its parent | 8 |
| as long as
the consolidated statements are supported by | 9 |
| consolidating statements. The
licensee's chief financial | 10 |
| officer shall attest to the licensee's financial
statements | 11 |
| disclosed in the consolidating statements.
| 12 |
| (b) As used herein, the term "expression of opinion" | 13 |
| includes either
(1) an unqualified opinion, (2) a qualified | 14 |
| opinion, (3) a disclaimer of
opinion, or (4) an adverse | 15 |
| opinion.
| 16 |
| (c) If a qualified or adverse opinion is expressed or if an | 17 |
| opinion is
disclaimed, the reasons therefore must be fully | 18 |
| explained. An opinion,
qualified as to a scope limitation, | 19 |
| shall not be acceptable.
| 20 |
| (d) The most recent audit report shall be filed with the
| 21 |
| Commissioner within 90 days after the end of the licensee's | 22 |
| fiscal year. The report
filed with the Commissioner shall be | 23 |
| certified by the certified public
accountant conducting the | 24 |
| audit. The Commissioner may promulgate rules
regarding late | 25 |
| audit reports.
| 26 |
| (e) If any licensee required to make an audit shall fail to | 27 |
| cause an
audit to be made, the Commissioner shall cause the | 28 |
| same to be made by a
certified public accountant at the | 29 |
| licensee's expense. The Commissioner
shall select such | 30 |
| certified public accountant by advertising for bids or
by such | 31 |
| other fair and impartial means as he or she establishes by | 32 |
| regulation.
| 33 |
| (f) In lieu of the audit or compilation financial statement | 34 |
| required by this Section, a licensee shall submit and the | 35 |
| Commissioner may
accept any audit made in conformance with the | 36 |
| audit
requirements of the U.S. Department of Housing and Urban |
|
|
|
SB2908 |
- 12 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| Development.
| 2 |
| (g) With respect to licensees who solely broker residential | 3 |
| mortgage
loans after the effective date of this amendatory Act | 4 |
| of the 93rd General Assembly, as defined in subsection (o) of | 5 |
| Section 1-4, instead of the audit
required by this Section, the | 6 |
| Commissioner may
accept
for a period no later than 2 years | 7 |
| after the effective date of this amendatory Act of the 93rd | 8 |
| General Assembly compilation financial statements prepared at | 9 |
| least every 12 months, and
the compilation financial statement | 10 |
| must be prepared by an independent
certified public accountant | 11 |
| licensed under the Illinois Public Accounting Act or by an | 12 |
| equivalent state licensing law
with full disclosure in | 13 |
| accordance with generally accepted accounting
principals and | 14 |
| must be submitted within 90 days after the end of
the | 15 |
| licensee's fiscal year. If a
licensee
under this Section fails | 16 |
| to file a compilation as required, the Commissioner
shall cause | 17 |
| an audit of the licensee's books and accounts to be made by a
| 18 |
| certified public accountant at the licensee's expense. The | 19 |
| Commissioner shall
select the certified public accountant by | 20 |
| advertising for bids or by such other
fair and impartial means | 21 |
| as he or she establishes by rule. A licensee who
files false or | 22 |
| misleading compilation financial statements is guilty of a
| 23 |
| business offense and shall be fined not less than $5,000.
| 24 |
| (h) The workpapers of the certified public accountants | 25 |
| employed
by each
licensee for purposes of this Section are to | 26 |
| be made available to the
Commissioner or the Commissioner's | 27 |
| designee upon request and may be
reproduced by the Commissioner | 28 |
| or the Commissioner's designee to enable to
the Commissioner to | 29 |
| carry out the purposes of this Act.
| 30 |
| (i) Notwithstanding any other provision of this Section, if | 31 |
| a licensee
relying on subsection (g) of this Section causes its | 32 |
| books to be audited at any
other time or causes its financial | 33 |
| statements to be reviewed, a complete copy
of the audited or | 34 |
| reviewed financial statements shall be delivered to the
| 35 |
| Commissioner at the time of the annual license renewal payment | 36 |
| following
receipt by the licensee of the audited or reviewed |
|
|
|
SB2908 |
- 13 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| financial statements. All workpapers shall be made available to | 2 |
| the
Commissioner upon request. The financial statements and | 3 |
| workpapers may be
reproduced by the Commissioner or the | 4 |
| Commissioner's designee to carry out the
purposes of this Act.
| 5 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 6 |
| (205 ILCS 635/3-4) (from Ch. 17, par. 2323-4)
| 7 |
| Sec. 3-4. Office and staff within the State.
| 8 |
| (a) A licensee whose principal place of business is located | 9 |
| in the State
of Illinois shall
maintain at least one full | 10 |
| service office with
staff reasonably adequate to handle | 11 |
| efficiently communications, questions,
and all other matters | 12 |
| relating to any application for a home mortgage or an
existing | 13 |
| home mortgage with respect
to which such licensee is performing | 14 |
| services, regardless of kind, for any
borrower or lender, note | 15 |
| owner or holder, or for himself or herself while
engaged in the | 16 |
| residential
mortgage business. The location and operation of a | 17 |
| full service office shall be in compliance with any applicable | 18 |
| zoning laws or ordinances and home office or business | 19 |
| regulations.
| 20 |
| (b) In lieu of maintaining a full service office in the | 21 |
| State of
Illinois,
a licensee whose principal place of business | 22 |
| is located outside the
State of Illinois
must submit a | 23 |
| certified audit as required in Section 3-2 of this Act
| 24 |
| evidencing a minimum net worth of $100,000, which must be | 25 |
| maintained at all
times, and shall submit and maintain a | 26 |
| fidelity bond in the amount of
$100,000.
| 27 |
| (Source: P.A. 89-355, eff. 8-17-95; 90-301, eff. 8-1-97; | 28 |
| 90-772, eff. 1-1-99.)
| 29 |
| (205 ILCS 635/3-5) (from Ch. 17, par. 2323-5)
| 30 |
| Sec. 3-5. Net worth requirement. A licensee that holds a | 31 |
| license on the
effective date of this amendatory Act of the | 32 |
| 93rd General Assembly shall have and
maintain a net worth of | 33 |
| not less than $100,000; however, no later than 2
years after | 34 |
| the effective date of this amendatory
Act of the 93rd General |
|
|
|
SB2908 |
- 14 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| Assembly, the licensee must maintain a net worth of not
less | 2 |
| than $150,000. A licensee that first obtains a license after | 3 |
| the effective
date of this amendatory Act of the 93rd General | 4 |
| Assembly must have and maintain
a net worth of not less than | 5 |
| $150,000.
Notwithstanding other requirements of this Section, | 6 |
| the net worth
requirement for a residential mortgage licensee | 7 |
| whose
only licensable
activity is that of brokering residential | 8 |
| mortgage loans and that holds a
license on the effective date | 9 |
| of this amendatory Act of the 93rd General
Assembly shall be | 10 |
| $35,000; however, no later than 2 years after the
effective | 11 |
| date of this amendatory
Act of the 93rd General Assembly, the | 12 |
| licensee must maintain a net worth of
not less than $50,000. | 13 |
| Such a licensee that first obtains a license after the
| 14 |
| effective date of this amendatory Act of the 93rd General | 15 |
| Assembly
must have and maintain a net worth of not less than | 16 |
| $50,000.
Net worth shall be evidenced by a balance sheet | 17 |
| prepared by a certified
public accountant in accordance with | 18 |
| generally accepted accounting principles
and generally | 19 |
| accepted auditing standards or by the compilation financial
| 20 |
| statements authorized under subsection (g) of Section 3-2. The | 21 |
| Commissioner
may promulgate
rules with respect to net worth | 22 |
| definitions
and requirements for residential mortgage | 23 |
| licensees as necessary to
accomplish the purposes of this Act. | 24 |
| In promulgating such rules, the Commissioner may consider | 25 |
| establishing separate net worth requirements for not for profit | 26 |
| entities or their affiliates that are serving economically | 27 |
| depressed or financially underserved areas. In lieu of the net | 28 |
| worth requirement
established by this Section, the | 29 |
| Commissioner may accept evidence of
conformance by the licensee | 30 |
| with the net worth requirements of the United
States Department | 31 |
| of Housing and Urban Development.
| 32 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 33 |
| (205 ILCS 635/4-1) (from Ch. 17, par. 2324-1)
| 34 |
| Sec. 4-1. Commissioner of Banks and Real Estate; functions, | 35 |
| powers, and duties. The functions,
powers, and duties of the |
|
|
|
SB2908 |
- 15 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| Commissioner of Banks and Real Estate shall include the | 2 |
| following:
| 3 |
| (a) To issue or refuse to issue any license as provided by | 4 |
| this Act;
| 5 |
| (b) To revoke or suspend for cause any license issued under | 6 |
| this Act;
| 7 |
| (c) To keep records of all licenses issued under this Act;
| 8 |
| (d) To receive, consider, investigate, and act upon | 9 |
| complaints made by
any person in connection with any | 10 |
| residential mortgage licensee in this State;
| 11 |
| (e) To consider and act upon any recommendations from the | 12 |
| Residential
Mortgage Board;
| 13 |
| (f) To prescribe the forms of and receive:
| 14 |
| (1) applications for licenses; and
| 15 |
| (2) all reports and all books and records required to | 16 |
| be made by
any licensee under this Act, including annual | 17 |
| audited financial statements
and annual reports of | 18 |
| mortgage activity;
| 19 |
| (g) To adopt rules and regulations necessary and proper for | 20 |
| the
administration of this Act;
| 21 |
| (h) To subpoena documents and witnesses and compel their | 22 |
| attendance and
production, to administer oaths, and to require | 23 |
| the production of any books,
papers, or other materials | 24 |
| relevant to any inquiry authorized by this Act;
| 25 |
| (i) To require information with regard to any license | 26 |
| applicant
as he or she may deem desirable, with due regard to | 27 |
| the paramount interests
of the public as to the experience, | 28 |
| background, honesty, truthfulness,
integrity, and competency | 29 |
| of the license applicant as to financial
transactions involving | 30 |
| primary or subordinate mortgage financing, and where
the | 31 |
| license applicant is an entity other than an individual, as to | 32 |
| the
honesty, truthfulness, integrity, and competency of any | 33 |
| officer or director
of the corporation, association, or other | 34 |
| entity, or the members of a
partnership;
| 35 |
| (j) To examine the books and records of every licensee | 36 |
| under this Act at
intervals as specified in Section 4-2;
|
|
|
|
SB2908 |
- 16 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| (k) To enforce provisions of this Act;
| 2 |
| (l) To levy fees, fines, and charges for services performed | 3 |
| in administering
this Act; the aggregate of all fees collected | 4 |
| by the Commissioner on and after
the effective date of this Act | 5 |
| shall be paid promptly after receipt of the
same, accompanied | 6 |
| by a detailed statement thereof, into the Savings and
| 7 |
| Residential Finance Regulatory Fund; the amounts deposited | 8 |
| into that Fund shall
be used for the ordinary and contingent | 9 |
| expenses of the Office of Banks and
Real Estate. Nothing in | 10 |
| this Act shall prevent continuing the practice of paying
| 11 |
| expenses involving salaries, retirement, social security, and | 12 |
| State-paid
insurance of State officers by appropriation from | 13 |
| the General Revenue Fund.
| 14 |
| (m) To appoint examiners, supervisors, experts, and | 15 |
| special assistants as
needed to effectively and efficiently | 16 |
| administer this Act; and
| 17 |
| (n) To conduct hearings for the purpose of:
| 18 |
| (1) appeals of orders of the Commissioner;
| 19 |
| (2) suspensions or revocations of licenses, or fining | 20 |
| of licensees;
| 21 |
| (3) investigating:
| 22 |
| (i) complaints against licensees; or
| 23 |
| (ii) annual gross delinquency rates; and
| 24 |
| (4) carrying out the purposes of this Act ;
.
| 25 |
| (o) To exercise exclusive visitorial power over a licensee | 26 |
| and to permit a foreign residential mortgage regulator with an | 27 |
| appropriate supervisory interest in the parent or affiliate of | 28 |
| a licensee to exercise exclusive visitorial power over a | 29 |
| licensee; | 30 |
| (p) To enter into cooperative agreements with state | 31 |
| regulatory authorities of other states to provide for | 32 |
| examination of corporate offices or branches of those states | 33 |
| and to accept reports of such examinations; | 34 |
| (q) To assign an examiner or examiners to monitor the | 35 |
| affairs of a licensee with whatever frequency the Commissioner | 36 |
| determines appropriate and to charge the licensee for |
|
|
|
SB2908 |
- 17 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| reasonable and necessary expenses of the Commissioner, if in | 2 |
| the opinion of the Commissioner an emergency exists or appears | 3 |
| likely to occur; and | 4 |
| (r) To impose civil penalties of up to $50 per day against | 5 |
| a licensee for failing to respond to a regulatory request or | 6 |
| reporting requirement.
| 7 |
| (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
| 8 |
| (205 ILCS 635/4-5) (from Ch. 17, par. 2324-5)
| 9 |
| Sec. 4-5. Suspension, revocation of licenses; fines.
| 10 |
| (a) Upon written notice to a licensee, the Commissioner may | 11 |
| suspend
or revoke any license issued pursuant to this Act if he | 12 |
| or she shall make a
finding of one or more of the following in | 13 |
| the notice that:
| 14 |
| (1) Through separate acts or an act or a course of | 15 |
| conduct, the licensee
has violated any provisions of this | 16 |
| Act, any rule or regulation
promulgated by the Commissioner | 17 |
| or of any other law, rule or regulation of
this State or | 18 |
| the United States.
| 19 |
| (2) Any fact or condition exists which, if it had | 20 |
| existed at the time of
the original application for such | 21 |
| license would have warranted the
Commissioner in refusing | 22 |
| originally to issue such license.
| 23 |
| (3) If a licensee is other than an individual, any | 24 |
| ultimate
equitable owner, officer, director, or member of | 25 |
| the licensed partnership,
association, corporation, or | 26 |
| other entity has so acted or failed to act as
would be | 27 |
| cause for suspending or revoking a license to that party as | 28 |
| an
individual.
| 29 |
| (b) No license shall be suspended or revoked, except as | 30 |
| provided in this
Section, nor shall any licensee be fined | 31 |
| without notice of his or her right
to a hearing as provided in | 32 |
| Section 4-12 of this Act.
| 33 |
| (c) The Commissioner, on good cause shown that an emergency | 34 |
| exists, may
suspend any license for a period not
exceeding 180 | 35 |
| days, pending investigation. Upon a showing that a
licensee has |
|
|
|
SB2908 |
- 18 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| failed to meet the experience or educational requirements of
| 2 |
| Section 2-2 or the requirements of subsection (g) of Section | 3 |
| 3-2, the
Commissioner shall suspend, prior to hearing as | 4 |
| provided in Section 4-12, the
license until those requirements | 5 |
| have been met.
| 6 |
| (d) The provisions of subsection (e) of Section 2-6 of this | 7 |
| Act
shall not affect a licensee's civil or criminal liability
| 8 |
| for acts committed prior to surrender of a license.
| 9 |
| (e) No revocation, suspension or surrender of any license | 10 |
| shall impair
or affect the obligation of any pre-existing | 11 |
| lawful contract between the
licensee and any person.
| 12 |
| (f) Every license issued under this Act shall remain in | 13 |
| force and effect
until the same shall have expired without | 14 |
| renewal, have been surrendered,
revoked or suspended in | 15 |
| accordance with the provisions of this Act, but the
| 16 |
| Commissioner shall have authority to reinstate a suspended | 17 |
| license or to
issue a new license to a licensee whose license | 18 |
| shall have been revoked if
no fact or condition then exists | 19 |
| which would have warranted the
Commissioner in refusing | 20 |
| originally to issue such license under this Act.
| 21 |
| (g) Whenever the Commissioner shall revoke or suspend a | 22 |
| license issued
pursuant to this Act or fine a licensee under | 23 |
| this Act, he or she shall
forthwith execute in duplicate a | 24 |
| written order to that effect. The
Commissioner shall publish | 25 |
| notice of such order in the Illinois Register
and a newspaper | 26 |
| of general circulation in the county in which the license
is | 27 |
| located and shall forthwith serve a copy of such order upon the
| 28 |
| licensee. Any such order may be reviewed in the manner provided | 29 |
| by
Section 4-12 of this Act.
| 30 |
| (h) When the Commissioner finds any person in violation of | 31 |
| the grounds
set forth in subsection (i), he or she may enter an | 32 |
| order imposing one or
more of the following penalties:
| 33 |
| (1) Revocation of license;
| 34 |
| (2) Suspension of a license subject to reinstatement | 35 |
| upon satisfying all
reasonable conditions the Commissioner | 36 |
| may specify;
|
|
|
|
SB2908 |
- 19 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| (3) Placement of the licensee or applicant on probation | 2 |
| for a period of
time and subject to all reasonable | 3 |
| conditions as the Commissioner may specify;
| 4 |
| (4) Issuance of a reprimand;
| 5 |
| (5) Imposition of a fine not to exceed $25,000 for each
| 6 |
| count of
separate offense; and
| 7 |
| (6) Denial of a license.
| 8 |
| (i) The following acts shall constitute grounds for which | 9 |
| the
disciplinary actions specified in subsection (h) above may | 10 |
| be taken:
| 11 |
| (1) Being convicted or found guilty, regardless of | 12 |
| pendency of an
appeal, of a crime in any jurisdiction which | 13 |
| involves fraud, dishonest
dealing, or any other act of | 14 |
| moral turpitude;
| 15 |
| (2) Fraud, misrepresentation, deceit or negligence in | 16 |
| any mortgage
financing transaction;
| 17 |
| (3) A material or intentional misstatement of fact on | 18 |
| an initial or
renewal application;
| 19 |
| (4) Failure to follow the Commissioner's regulations | 20 |
| with respect to
placement of funds in escrow accounts;
| 21 |
| (5) Insolvency or filing under any provision of the | 22 |
| Bankruptcy Code
as a debtor;
| 23 |
| (6) Failure to account or deliver to any person any | 24 |
| property such as any
money, fund, deposit, check, draft, | 25 |
| mortgage, or other document or thing of
value, which has | 26 |
| come into his or her hands and which is not his or her
| 27 |
| property or which he or she is not in law or equity | 28 |
| entitled to retain,
under the circumstances and at the time | 29 |
| which has been agreed upon or is
required by law or, in the | 30 |
| absence of a fixed time, upon demand of the
person entitled | 31 |
| to such accounting and delivery;
| 32 |
| (7) Failure to disburse funds in accordance with | 33 |
| agreements;
| 34 |
| (8) Any misuse, misapplication, or misappropriation of | 35 |
| trust funds
or escrow funds;
| 36 |
| (9) Having a license, or the equivalent, to practice |
|
|
|
SB2908 |
- 20 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| any profession or
occupation revoked, suspended, or | 2 |
| otherwise acted against, including the
denial of licensure | 3 |
| by a licensing authority of this State or another
state, | 4 |
| territory or country for fraud, dishonest dealing or any | 5 |
| other act
of moral turpitude;
| 6 |
| (10) Failure to issue a satisfaction of mortgage when | 7 |
| the residential
mortgage has been executed and proceeds | 8 |
| were not disbursed to the benefit
of the mortgagor and when | 9 |
| the mortgagor has fully paid licensee's costs
and | 10 |
| commission;
| 11 |
| (11) Failure to comply with any order of the | 12 |
| Commissioner or rule made
or issued under the provisions of | 13 |
| this Act;
| 14 |
| (12) Engaging in activities regulated by this Act | 15 |
| without a current,
active license unless specifically | 16 |
| exempted by this Act;
| 17 |
| (13) Failure to pay in a timely manner any fee, charge | 18 |
| or fine under
this Act;
| 19 |
| (14) Failure to maintain, preserve, and keep available | 20 |
| for examination,
all books, accounts or other documents | 21 |
| required by the provisions of this
Act and the rules of the | 22 |
| Commissioner;
| 23 |
| (15) Refusal to permit an investigation or examination | 24 |
| of the licensee's
or its affiliates' books and records or | 25 |
| refusal to comply with the
Commissioner's subpoena or | 26 |
| subpoena duces tecum;
| 27 |
| (16) A pattern of substantially underestimating the | 28 |
| maximum closing costs;
| 29 |
| (17) Failure to comply with or violation of any | 30 |
| provision of this Act.
| 31 |
| (j) A licensee shall be subject to the disciplinary actions | 32 |
| specified in
this Act for violations of subsection (i) by any | 33 |
| officer, director,
shareholder, joint venture, partner, | 34 |
| ultimate equitable owner, or employee
of the licensee.
| 35 |
| (k) Such licensee shall be subject to suspension or | 36 |
| revocation for
employee actions only if there is a pattern of |
|
|
|
SB2908 |
- 21 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| repeated violations by
employees or the licensee has knowledge | 2 |
| of the violations.
| 3 |
| (l) Procedure for surrender of license:
| 4 |
| (1) The Commissioner may, after 10 days notice by | 5 |
| certified mail to the
licensee at the address set forth on | 6 |
| the license, stating the contemplated
action and in general | 7 |
| the grounds therefor and the date, time and place of
a | 8 |
| hearing thereon, and after providing the licensee with a | 9 |
| reasonable
opportunity to be heard prior to such action, | 10 |
| fine such licensee an amount
not exceeding $25,000
$10,000 | 11 |
| per violation, or revoke or suspend any license
issued | 12 |
| hereunder if he or she finds that:
| 13 |
| (i) The licensee has failed to comply with any | 14 |
| provision of this Act or
any order, decision, finding, | 15 |
| rule, regulation or direction of the
Commissioner | 16 |
| lawfully made pursuant to the authority of this Act; or
| 17 |
| (ii) Any fact or condition exists which, if it had | 18 |
| existed at the time
of the original application for the | 19 |
| license, clearly would have warranted
the Commissioner | 20 |
| in refusing to issue the license.
| 21 |
| (2) Any licensee may surrender a license by delivering | 22 |
| to the
Commissioner written notice that he or she thereby | 23 |
| surrenders such license,
but surrender shall not affect the | 24 |
| licensee's civil or criminal liability
for acts committed | 25 |
| prior to surrender or entitle the licensee to a return
of | 26 |
| any part of the license fee.
| 27 |
| (Source: P.A. 93-561, eff. 1-1-04.)
| 28 |
| (205 ILCS 635/4-9.1 new) | 29 |
| Sec. 4-9.1. Annual report of mortgage activity. On or | 30 |
| before March 1 of each year, each licensee, except residential | 31 |
| mortgage loan brokers, shall file a report with the | 32 |
| Commissioner that shall disclose the following information | 33 |
| with respect to the immediately preceding calendar year: | 34 |
| (a) A list of home mortgages granted, issued, originated or | 35 |
| closed during the report period, with respect to which such |
|
|
|
SB2908 |
- 22 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| licensee has had any connection. This list shall show each | 2 |
| census tract, in regions where such census tracts have been | 3 |
| established, and by zip code in all other regions, the number | 4 |
| and aggregate dollar amount of applications for, and the number | 5 |
| granted and aggregate dollar amount of: | 6 |
| (1) Conventional mortgage loans; | 7 |
| (2) Mortgage loans issued under the National Housing | 8 |
| Act, Title 12, United States Code, Chapter 13; and | 9 |
| (3) Mortgage loans guaranteed under the provisions of | 10 |
| the Federal Veteran's Benefit Act, Title 38, United States | 11 |
| Code, Chapter 37, Subchapter II. | 12 |
| (b) List by zip code in those areas having no census tract: | 13 |
| (1) The total number of home mortgages on real estate | 14 |
| situated in this State with respect to which the licensee | 15 |
| has had any connection and which are in default on the last | 16 |
| day of the reporting period; and | 17 |
| (2) The total number of claims paid during the | 18 |
| reporting period on home mortgages with respect to which | 19 |
| the licensee has had any connection, including the date of | 20 |
| the first default thereon and the date each such | 21 |
| foreclosure proceeding was instituted. | 22 |
| (c) If the Commissioner finds that another report that the | 23 |
| licensee is required to compile is equivalent to the Annual | 24 |
| Report of Mortgage Activity, then the Commissioner may accept | 25 |
| that report as fulfilling the reporting requirements of this | 26 |
| Section. The report required pursuant to the Home Mortgage | 27 |
| Disclosure Act of 1975, 12 U.S.C., 2801 et seq. and Federal | 28 |
| Reserve Board Regulation C, 12 C.F.R. Part 203, is an example | 29 |
| of a report that the Commissioner may find fulfills the | 30 |
| requirements of this Section, if the Commissioner finds the | 31 |
| report equivalent to the Annual Report of Mortgage Activity. | 32 |
| (d) The Commissioner may also require by rules that | 33 |
| licensees report such additional information as is necessary to | 34 |
| assure strict compliance with this Act. | 35 |
| Notwithstanding the exemption from licensure provided for | 36 |
| service corporations of certain savings institutions and |
|
|
|
SB2908 |
- 23 - |
LRB093 18470 SAS 44184 b |
|
| 1 |
| subsidiaries or affiliates of certain banks and foreign banking | 2 |
| corporations in clauses (viii) and (ix) of paragraph (1) of | 3 |
| subsection (d) of Section 1-4, such service corporations, | 4 |
| subsidiaries or affiliates shall file the annual report of | 5 |
| mortgage activity required by this Section. | 6 |
| (205 ILCS 635/4-15 new) | 7 |
| Sec. 4-15. Returned checks; fees. Any person who delivers a | 8 |
| check or other payment to the Commissioner that is returned to | 9 |
| the Commissioner unpaid by the financial institution upon which | 10 |
| it is drawn shall pay to the Commissioner, in addition to the | 11 |
| amount already owed to the Commissioner, a fee of $50. The | 12 |
| Commissioner shall notify the person that payment of fees and | 13 |
| fines shall be paid to the Commissioner by certified check or | 14 |
| money order within 30 calendar days of the notification. If, | 15 |
| after the expiration of 30 days from the date of the | 16 |
| notification, the person has failed to submit the necessary | 17 |
| remittance, the Commissioner shall automatically terminate the | 18 |
| license or certificate of registration or deny the application, | 19 |
| without a hearing. If, after termination or denial, the person | 20 |
| seeks a license or certificate of registration, he or she shall | 21 |
| apply to the Commissioner for restoration or issuance of the | 22 |
| license or certificate of registration and pay all expenses of | 23 |
| processing this application. The Commissioner may establish a | 24 |
| fee for the processing of an application for restoration of a | 25 |
| license to pay all the expenses of processing this application. | 26 |
| The Commissioner may waive the fees due under this Section in | 27 |
| individual cases where the Commissioner finds that the fees | 28 |
| would be unreasonable or unnecessarily burdensome.
|
|