Full Text of HB4011 96th General Assembly
HB4011sam001 96TH GENERAL ASSEMBLY
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Sen. Kwame Raoul
Filed: 5/5/2009
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09600HB4011sam001 |
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LRB096 05294 MJR 26204 a |
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| AMENDMENT TO HOUSE BILL 4011
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| AMENDMENT NO. ______. Amend House Bill 4011 on page 1, line | 3 |
| 6, by replacing "4-8.3, and" with "4-8.3, 7-1, and"; and
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| on page 6, by replacing lines 1 through 3 with the following: | 5 |
| "(1.5) Any employee of a person or entity mentioned in | 6 |
| item (1) of this subsection , when acting for such person or | 7 |
| entity, or any registered mortgage loan originator when | 8 |
| acting for an entity described in subsection (tt) of this | 9 |
| Section ."; and | 10 |
| on page 19, immediately below line 18, by inserting the | 11 |
| following: | 12 |
| " (vv) "Residential mortgage license" means a license | 13 |
| issued pursuant to Section 1-3, 2-2, or 2-6 of this Act. | 14 |
| (ww) "Mortgage loan originator license" means a license | 15 |
| issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act. "; and
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LRB096 05294 MJR 26204 a |
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| by replacing line 9 on page 60 through line 22 on page 62 with | 2 |
| the following:
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| "(205 ILCS 635/7-1)
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| Sec. 7-1. Registration required; rules and regulations. | 5 |
| Beginning 6 months
after the effective date of this amendatory | 6 |
| Act of the 93rd General Assembly,
it is unlawful for any | 7 |
| natural person to act or assume to act as a loan
originator, as | 8 |
| defined in subsection (hh) of Section 1-4, without being
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| registered with the Commissioner unless the natural person is | 10 |
| exempt under
items (1) and (1.5) of subsection (d) of Section | 11 |
| 1-4 of this Act. The
Commissioner shall promulgate
rules
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| prescribing the criteria for the registration and regulation of | 13 |
| loan
originators, including but not limited to, | 14 |
| qualifications, fees, examination,
education, supervision, and | 15 |
| enforcement. This Section shall not be effective on or after | 16 |
| (1) the operability date of January 1, 2011 or (2) the | 17 |
| operability date selected pursuant to Section 7-1A of this Act | 18 |
| for a mortgage loan originator license; provided, however, that | 19 |
| a violation of this Section committed before the operability | 20 |
| date remains subject to penalties authorized by this Act.
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| (Source: P.A. 93-561, eff. 1-1-04.)
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| (205 ILCS 635/7-1A new) | 23 |
| Sec. 7-1A. Mortgage loan originator license. | 24 |
| (a) It is unlawful for any individual to act or assume to |
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LRB096 05294 MJR 26204 a |
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| act as a mortgage loan originator, as defined in subsection | 2 |
| (jj) of Section 1-4 of this Act, without obtaining a license | 3 |
| from the Director, unless the individual is exempt under | 4 |
| subsection (c) of this Section. Each licensed mortgage loan | 5 |
| originator must register with and maintain a valid unique | 6 |
| identifier issued by the Nationwide Mortgage Licensing System | 7 |
| and Registry. | 8 |
| (b) In order to facilitate an orderly transition to | 9 |
| licensing and minimize disruption in the mortgage marketplace, | 10 |
| the operability date for subsection (a) of this Section shall | 11 |
| be July 31, 2010, or any later date approved by the Secretary | 12 |
| of the U.S. Department of Housing and Urban Development, | 13 |
| pursuant to the authority granted under federal Public Law | 14 |
| 110-289, Section 1508(a), provided that for all individuals who | 15 |
| are loss mitigation specialists employed by servicers, the | 16 |
| operability date shall be July 31, 2011, or any later date | 17 |
| approved by the Secretary of the U.S. Department of Housing and | 18 |
| Urban Development pursuant to authority granted under Public | 19 |
| Law 110-289, Section 1508(a). | 20 |
| (c) The following, when engaged in the following | 21 |
| activities, are exempt from this Act: | 22 |
| (1) Registered mortgage loan originators, when acting | 23 |
| for an entity described in subsection (tt) of Section 1-4. | 24 |
| (2) Any individual who offers or negotiates terms of a | 25 |
| residential mortgage loan with or on behalf of an immediate | 26 |
| family member of the individual. |
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| (3) Any individual who offers or negotiates terms of a | 2 |
| residential mortgage loan secured by a dwelling that served | 3 |
| as the individual's residence. | 4 |
| (4) A licensed attorney who negotiates the terms of a | 5 |
| residential mortgage loan on behalf of a client as an | 6 |
| ancillary matter to the attorney's representation of the | 7 |
| client, unless the attorney is compensated by a lender, a | 8 |
| mortgage broker, or other mortgage loan originator or by | 9 |
| any agent of a lender, mortgage broker, or other mortgage | 10 |
| loan originator. | 11 |
| (d) A loan processor or underwriter who is an independent | 12 |
| contractor may not engage in the activities of a loan processor | 13 |
| or underwriter unless he or she obtains and maintains a license | 14 |
| under subsection (a) of this Section. Each independent | 15 |
| contractor loan processor or underwriter licensed as a mortgage | 16 |
| loan originator must have and maintain a valid unique | 17 |
| identifier issued by the Nationwide Mortgage Licensing System | 18 |
| and Registry. | 19 |
| (e) For the purposes of implementing an orderly and | 20 |
| efficient licensing process, the Director may establish | 21 |
| licensing rules or regulations and interim procedures for | 22 |
| licensing and acceptance of applications. For previously | 23 |
| registered or licensed individuals, the Director may establish | 24 |
| expedited review and licensing procedures. ".
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