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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 1. Short title. This Act may be cited as the
5Appraisal Management Company Registration Act.
6    Section 5. Findings. The General Assembly finds that: It
7is the intent of the General Assembly that this Act provide for
8the regulation of those persons or entities engaged as
9appraisal management companies for the protection of the public
10and for the maintenance of high standards of professional
11conduct by those registered as appraisal management companies
12and to ensure appraisal independence in the determination of
13real estate valuations.
14    Section 10. Definitions. In this Act:
15    "Address of record" means the designated address recorded
16by the Department in the applicant's or registrant's
17application file or registration file maintained by the
18Department's registration maintenance unit. It is the duty of
19the applicant or registrant to inform the Department of any
20change of address, and the changes must be made either through
21the Department's website or by contacting the Department's
22registration maintenance unit within a prescribed time period



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1as defined by rule.
2    "Applicant" means a person or entity who applies to the
3Department for a registration under this Act.
4    "Appraisal" means (noun) the act or process of developing
5an opinion of value; an opinion of value (adjective) of or
6pertaining to appraising and related functions.
7    "Appraisal firm" means an appraisal entity that is 100%
8owned and controlled by a person or persons licensed in
9Illinois as a certified general real estate appraiser or a
10certified residential real estate appraiser. An appraisal firm
11does not include an appraisal management company.
12    "Appraisal management company" means any corporation,
13limited liability company, partnership, sole proprietorship,
14subsidiary, unit, or other business entity that directly or
15indirectly performs the following appraisal management
16services: (1) administers networks of independent contractors
17or employee appraisers to perform real estate appraisal
18assignments for clients; (2) receives requests for real estate
19appraisal services from clients and, for a fee paid by the
20client, enters into an agreement with one or more independent
21appraisers to perform the real estate appraisal services
22contained in the request; or (3) otherwise serves as a
23third-party broker of appraisal management services between
24clients and appraisers.
25    "Appraisal report" means a written appraisal by an
26appraiser to a client.



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1    "Appraisal practice service" means valuation services
2performed by an individual acting as an appraiser, including,
3but not limited to, appraisal, appraisal review, or appraisal
5    "Appraiser" means a person who performs real estate or real
6property appraisals.
7    "Assignment result" means an appraiser's opinions and
8conclusions developed specific to an assignment.
9    "Board" means the Real Estate Appraisal Administration and
10Disciplinary Board.
11    "Client" means the party or parties who engage an appraiser
12by employment or contract in a specific appraisal assignment.
13    "Controlling Person" means:
14        (1) an owner, officer, or director of an entity seeking
15    to offer appraisal management services;
16        (2) an individual employed, appointed, or authorized
17    by an appraisal management company who has the authority
18    to:
19            (A) enter into a contractual relationship with a
20        client for the performance of an appraisal management
21        service or appraisal practice service; and
22            (B) enter into an agreement with an appraiser for
23        the performance of a real estate appraisal activity; or
24        (3) an individual who possesses, directly or
25    indirectly, the power to direct or cause the direction of
26    the management or policies of an appraisal management



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1    company.
2    "Coordinator" means the Coordinator of the Appraisal
3Management Company Registration Unit of the Department or his
4or her designee.
5    "Department" means the Department of Financial and
6Professional Regulation.
7    "Entity" means a corporation, a limited liability company,
8partnership, a sole proprietorship, or other entity providing
9services or holding itself out to provide services as an
10appraisal management company or an appraisal management
12    "End-user client" means any person who utilizes or engages
13the services of an appraiser through an appraisal management
15    "Financial institution" means any bank, savings bank,
16savings and loan association, credit union, mortgage broker,
17mortgage banker, registrant under the Consumer Installment
18Loan Act or the Sales Finance Agency Act, or a corporate
19fiduciary, subsidiary, affiliate, parent company, or holding
20company of any registrant, or any institution involved in real
21estate financing that is regulated by State or federal law.
22    "Person" means individuals, entities, sole
23proprietorships, corporations, limited liability companies,
24and partnerships, foreign or domestic, except that when the
25context otherwise requires, the term may refer to a single
26individual or other described entity.



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1    "Quality control review" means a review of an appraisal
2report for compliance and completeness, including grammatical,
3typographical, or other similar errors, unrelated to
4developing an opinion of value.
5    "Real estate" means an identified parcel or tract of land,
6including any improvements.
7    "Real estate related financial transaction" means any
8transaction involving:
9        (1) the sale, lease, purchase, investment in, or
10    exchange of real property, including interests in property
11    or the financing thereof;
12        (2) the refinancing of real property or interests in
13    real property; and
14        (3) the use of real property or interest in property as
15    security for a loan or investment, including mortgage
16    backed securities.
17    "Real property" means the interests, benefits, and rights
18inherent in the ownership of real estate.
19    "Secretary" means the Secretary of Financial and
20Professional Regulation.
21    "USPAP" means the Uniform Standards of Professional
22Appraisal Practice as adopted by the Appraisal Standards Board
23under Title XI.
24    "Valuation" means any estimate of the value of real
25property in connection with a creditor's decision to provide
26credit, including those values developed under a policy of a



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1government sponsored enterprise or by an automated valuation
2model, a broker price opinion, or other methodology or
4    Section 15. Exemptions. Nothing in this Act shall apply to
5any of the following:
6        (1) an agency of the federal, State, county, or
7    municipal government or an officer or employee of a
8    government agency, or person, described in this Section
9    when acting within the scope of employment of the officer
10    or employee;
11        (2) a corporate relocation company whereby the
12    appraisal is not used for mortgage purposes and the end
13    user client is an employer company;
14        (3) any person licensed in this State under any other
15    Act while engaged in the activities or practice for which
16    he or she is licensed;
17        (4) any person licensed to practice law in this State
18    who is working with or on behalf of a client of that person
19    in connection with one or more appraisals for that client;
20        (5) an appraiser that enters into an agreement, whether
21    written or otherwise, with another appraiser for the
22    performance of an appraisal, and upon the completion of the
23    appraisal, the report of the appraiser performing the
24    appraisal is signed by both the appraiser who completed the
25    appraisal and the appraiser who requested the completion of



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1    the appraisal, except that an appraisal management company
2    may not avoid the requirement of registration under this
3    Act by requiring an employee of the appraisal management
4    company who is an appraiser to sign an appraisal that was
5    completed by another appraiser who is part of the appraisal
6    panel of the appraisal management company; or
7        (6) any person acting as an agent of the Illinois
8    Department of Transportation in the acquisition or
9    relinquishment of land for transportation issues to the
10    extent of their contract scope.
11    In the event that the Final Interim Rule of the federal
12Dodd-Frank Wall Street Reform and Consumer Protection Act
13provides that an appraisal management company is a subsidiary
14owned and controlled by a financial institution regulated by a
15federal financial institution's regulatory agency and is
16exempt from State appraisal management company registration
17requirements, the Department, shall, by rule, provide for the
18implementation of such an exemption.
19    Section 20. Restrictions and limitations. Beginning
20January 1, 2012, it is unlawful for a person or entity to act
21or assume to act as an appraisal management company as defined
22in this Act, to engage in the business of appraisal management
23service, or to advertise or hold himself or herself out to be a
24registered appraisal management company without first
25obtaining a registration issued by the Department under this



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1Act. A person or entity that violates this Section is guilty of
2a Class A misdemeanor for the first offense and a Class 4
3felony for second and subsequent offenses.
4    Persons practicing as an appraisal management company in
5Illinois as of the effective date of this Act may continue to
6practice as provided in this Act until the Department has
7adopted rules implementing this Act. To continue practicing as
8an appraisal management company after the adoption of rules,
9persons shall apply for registration within 180 days after the
10effective date of the rules. If an application is received
11during the 180-day period, the person may continue to practice
12until the Department acts to grant or deny registration. If an
13application is not filed within the 180-day period, the person
14must cease the practice at the conclusion of the 180-day period
15and until the Department acts to grant a registration to the
17    Section 25. Powers and duties of the Department. Subject
18to the provisions of this Act:
19        (1) The Department may ascertain the qualifications
20    and fitness of applicants for registration and pass upon
21    the qualifications of applicants for registration.
22        (2) The Department may conduct hearings on proceedings
23    to refuse to issue or renew or to revoke registrations or
24    suspend, place on probation, or reprimand persons or
25    otherwise discipline individuals or entities subject to



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1    this Act.
2        (3) The Department may formulate all rules required for
3    the administration of this Act. With the exception of
4    emergency rules, any proposed rules, amendments, second
5    notice materials, and adopted rule or amendment materials
6    or policy statements concerning appraisal management
7    companies shall be presented to the Real Estate Appraisal
8    Administration and Disciplinary Board for review and
9    comment. The recommendations of the Board shall be
10    presented to the Secretary for consideration in making
11    final decisions.
12        (4) The Department may maintain rosters of the names
13    and addresses of all registrants, and all persons whose
14    registrations have been suspended, revoked, or denied
15    renewal for cause within the previous calendar year or
16    otherwise disciplined. These rosters shall be available
17    upon written request and payment of the required fee as
18    established by rule.
19    Section 30. Coordinator of Appraisal Management Company
20Registration. The Coordinator of Real Estate Appraisal shall
21serve as the Coordinator of Appraisal Management Company
22Registration. The Coordinator shall have the same duties and
23responsibilities in regards to appraisal management company
24registration as the Coordinator has in regards to appraisal
25licensure as set forth in the Real Estate Appraiser Licensing



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1Act of 2002.
2    Section 35. Application for original registration.
3Applications for original registration shall be made to the
4Department on forms prescribed by the Department and
5accompanied by the required fee. All applications shall contain
6the information that, in the judgment of the Department, will
7enable the Department to pass on the qualifications of the
8applicant to be registered to practice as set by rule.
9    Section 40. Qualifications for registration.
10    (a) The Department may issue a certification of
11registration to practice under this Act to any applicant who
12applies to the Department on forms provided by the Department,
13pays the required non-refundable fee, and who provides the
15        (1) the business name of the applicant seeking
16    registration;
17        (2) the business address or addresses and contact
18    information of the applicant seeking registration;
19        (3) if the business applicant is not a corporation that
20    is domiciled in this State, then the name and contact
21    information for the company's agent for service of process
22    in this State;
23        (4) the name, address, and contact information for any
24    individual or any corporation, partnership, limited



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1    liability company, association, or other business
2    applicant that owns 10% or more of the appraisal management
3    company;
4        (5) the name, address, and contact information for a
5    designated controlling person;
6        (6) a certification that the applicant will utilize
7    Illinois licensed appraisers to provide appraisal services
8    within the State of Illinois;
9        (7) a certification that the applicant has a system in
10    place utilizing a licensed Illinois appraiser to review the
11    work of all employed and independent appraisers that are
12    performing real estate appraisal services in Illinois for
13    the appraisal management company on a periodic basis,
14    except for a quality control review, to verify that the
15    real estate appraisal assignments are being conducted in
16    accordance with USPAP;
17        (8) a certification that the applicant maintains a
18    detailed record of each service request that it receives
19    and the independent appraiser that performs the real estate
20    appraisal services for the appraisal management company;
21        (9) a certification that the employees of the appraisal
22    management company working on behalf of the appraisal
23    management company directly involved in providing
24    appraisal management services, will be appropriately
25    trained and familiar with the appraisal process to
26    completely provide appraisal management services;



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1        (10) an irrevocable Uniform Consent to Service of
2    Process, under rule; and
3        (11) a certification that the applicant shall comply
4    with all other requirements of this Act and rules
5    established for the implementation of this Act.
6    (b) Applicants have 3 years from the date of application to
7complete the application process. If the process has not been
8completed in 3 years, the application shall be denied, the fee
9shall be forfeited, and the applicant must reapply and meet the
10requirements in effect at the time of reapplication.
11    Section 45. Expiration and renewal of registration. The
12expiration date and renewal period for each registration shall
13be set by rule. A registrant whose registration has expired may
14reinstate his or her registration at any time within 5 years
15after the expiration thereof, by making a renewal application
16and by paying the required fee.
17    Any registrant whose registration has expired for more than
185 years may have it restored by making application to the
19Department, paying the required fee, and filing acceptable
20proof of fitness to have the registration restored as set by
22    Section 50. Bonds of registrants. All registrants shall
23maintain a bond in accordance with this Section. Each bond
24shall be for the recovery of expenses, fines, or fees due to or



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1levied by the Department in accordance with this Act. The bond
2shall be payable when the registrant fails to comply with any
3provisions of this Act and shall be in the form of a surety
4bond in the amount of $25,000 as prescribed by the Department
5by rule. The bond shall be payable to the Department and shall
6be issued by an insurance company authorized to do business in
7this State. A copy of the bond, including any and all riders
8and endorsements executed subsequent to the effective date of
9the bond, shall be placed on file with the Department within 10
10days of the execution thereof. The bond may only be used for
11the recovery of expenses or the collection of fines or fees due
12to or levied by the Department and is not to be utilized for
13any other purpose.
14    Section 55. Fees.
15    (a) The fees for the administration and enforcement of this
16Act, including, but not limited to, original registration,
17renewal, and restoration fees, shall be set by the Department
18by rule. The fees shall not be refundable.
19    (b) All fees and other moneys collected under this Act
20shall be deposited in the Appraisal Administration Fund.
21    Section 60. Returned checks; fines. Any person who
22delivers a check or other payment to the Department that is
23returned to the Department unpaid by the financial institution
24upon which it is drawn shall pay to the Department, in addition



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1to the amount already owed to the Department, a fine of $50.
2The fines imposed by this Section are in addition to any other
3discipline provided under this Act for unregistered practice or
4practice on a nonrenewed registration. The Department shall
5notify the person that payment of fees and fines shall be paid
6to the Department by certified check or money order within 30
7calendar days of the notification. If, after the expiration of
830 days after the date of the notification, the person has
9failed to submit the necessary remittance, the Department shall
10automatically terminate the registration or deny the
11application, without hearing. If, after termination or denial,
12the person seeks a registration, he or she shall apply to the
13Department for restoration or issuance of the registration and
14pay all fees and fines due to the Department. The Department
15may establish a fee for the processing of an application for
16restoration of a registration to pay all expenses of processing
17this application. The Secretary may waive the fines due under
18this Section in individual cases where the Secretary finds that
19the fines would be unreasonable or unnecessarily burdensome.
20    Section 65. Disciplinary actions.
21    (a) The Department may refuse to issue or renew, or may
22revoke, suspend, place on probation, reprimand, or take other
23disciplinary or non-disciplinary action as the Department may
24deem appropriate, including imposing fines not to exceed
25$25,000 for each violation, with regard to any registration for



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1any one or combination of the following:
2        (1) Material misstatement in furnishing information to
3    the Department.
4        (2) Violations of this Act, or of the rules adopted
5    under this Act.
6        (3) Conviction of, or entry of a plea of guilty or nolo
7    contendere to any crime that is a felony under the laws of
8    the United States or any state or territory thereof or that
9    is a misdemeanor of which an essential element is
10    dishonesty, or any crime that is directly related to the
11    practice of the profession.
12        (4) Making any misrepresentation for the purpose of
13    obtaining registration or violating any provision of this
14    Act or the rules adopted under this Act pertaining to
15    advertising.
16        (5) Professional incompetence.
17        (6) Gross malpractice.
18        (7) Aiding or assisting another person in violating any
19    provision of this Act or rules adopted under this Act.
20        (8) Failing, within 30 days after requested, to provide
21    information in response to a written request made by the
22    Department.
23        (9) Engaging in dishonorable, unethical, or
24    unprofessional conduct of a character likely to deceive,
25    defraud, or harm the public.
26        (10) Discipline by another state, District of



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1    Columbia, territory, or foreign nation, if at least one of
2    the grounds for the discipline is the same or substantially
3    equivalent to those set forth in this Section.
4        (11) A finding by the Department that the registrant,
5    after having his or her registration placed on probationary
6    status, has violated the terms of probation.
7        (12) Willfully making or filing false records or
8    reports in his or her practice, including, but not limited
9    to, false records filed with State agencies or departments.
10        (13) Filing false statements for collection of fees for
11    which services are not rendered.
12        (14) Practicing under a false or, except as provided by
13    law, an assumed name.
14        (15) Fraud or misrepresentation in applying for, or
15    procuring, a registration under this Act or in connection
16    with applying for renewal of a registration under this Act.
17        (16) Being adjudicated liable in a civil proceeding for
18    violation of a state or federal fair housing law.
19        (17) Failure to obtain or maintain the bond required
20    under Section 50 of this Act.
21    (b) The Department may refuse to issue or may suspend
22without hearing as provided for in the Civil Administrative
23Code the registration of any person who fails to file a return,
24or to pay the tax, penalty or interest shown in a filed return,
25or to pay any final assessment of the tax, penalty, or interest
26as required by any tax Act administered by the Illinois



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1Department of Revenue, until such time as the requirements of
2any such tax Act are satisfied.
3    Section 70. Injunctive action; cease and desist order.
4    (a) If any person violates the provisions of this Act, the
5Secretary, in the name of the People of the State of Illinois,
6through the Attorney General or the State's Attorney of the
7county in which the violation is alleged to have occurred, may
8petition for an order enjoining the violation or for an order
9enforcing compliance with this Act. Upon the filing of a
10verified petition, the court with appropriate jurisdiction may
11issue a temporary restraining order, without notice or bond,
12and may preliminarily and permanently enjoin the violation. If
13it is established that the person has violated or is violating
14the injunction, the court may punish the offender for contempt
15of court. Proceedings under this Section are in addition to,
16and not in lieu of, all other remedies and penalties provided
17by this Act.
18    (b) Whenever, in the opinion of the Department, a person
19violates any provision of this Act, the Department may issue a
20rule to show cause why an order to cease and desist should not
21be entered against that person. The rule shall clearly set
22forth the grounds relied upon by the Department and shall allow
23at least 7 days from the date of the rule to file an answer
24satisfactory to the Department. Failure to answer to the
25satisfaction of the Department shall cause an order to cease



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1and desist to be issued.
2    Section 75. Investigations; notice and hearing. The
3Department may investigate the actions of any applicant or of
4any person or persons rendering or offering to render any
5services requiring registration under this Act or any person
6holding or claiming to hold a registration as an appraisal
7management company. The Department shall, before revoking,
8suspending, placing on probation, reprimanding, or taking any
9other disciplinary or non-disciplinary action under Section 65
10of this Act, at least 30 days before the date set for the
11hearing, (i) notify the accused in writing of the charges made
12and the time and place for the hearing on the charges, (ii)
13direct him or her to file a written answer to the charges with
14the Department under oath within 20 days after the service on
15him or her of the notice, and (iii) inform the accused that, if
16he or she fails to answer, default will be taken against him or
17her or that his or her registration may be suspended, revoked,
18placed on probationary status, or other disciplinary action
19taken with regard to the registration, including limiting the
20scope, nature, or extent of his or her practice, as the
21Department may consider proper. At the time and place fixed in
22the notice, the Department shall proceed to hear the charges
23and the parties or their counsel shall be accorded ample
24opportunity to present any pertinent statements, testimony,
25evidence, and arguments. The Department may continue the



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1hearing from time to time. In case the person, after receiving
2the notice, fails to file an answer, his or her registration
3may, in the discretion of the Department, be suspended,
4revoked, placed on probationary status, or the Department may
5take whatever disciplinary action considered proper, including
6limiting the scope, nature, or extent of the person's practice
7or the imposition of a fine, without a hearing, if the act or
8acts charged constitute sufficient grounds for that action
9under this Act. The written notice may be served by personal
10delivery or by certified mail to the address specified by the
11accused in his or her last notification with the Department.
12    Section 80. Record of proceedings; transcript. The
13Department, at its expense, shall preserve a record of all
14proceedings at the formal hearing of any case. The notice of
15hearing, complaint, all other documents in the nature of
16pleadings, written motions filed in the proceedings, the
17transcripts of testimony, the report of the hearing officer,
18and orders of the Department shall be in the record of the
19proceeding. The Department shall furnish a transcript of the
20record to any person interested in the hearing upon payment of
21the fee required under Section 2105-115 of the Department of
22Professional Regulation Law.
23    Section 85. Subpoenas; depositions; oaths. The Department
24has the power to subpoena documents, books, records, or other



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1materials and to bring before it any person and to take
2testimony either orally or by deposition, or both, with the
3same fees and mileage and in the same manner as prescribed in
4civil cases in the courts of this State.
5    The Secretary and the designated hearing officer have the
6power to administer oaths to witnesses at any hearing that the
7Department is authorized to conduct, and any other oaths
8authorized in any Act administered by the Department.
9    Section 90. Compelling testimony. Any circuit court, upon
10application of the Department or designated hearing officer may
11enter an order requiring the attendance of witnesses and their
12testimony, and the production of documents, papers, files,
13books, and records in connection with any hearing or
14investigation. The court may compel obedience to its order by
15proceedings for contempt.
16    Section 95. Findings and recommendations. At the
17conclusion of the hearing, the designated hearing officer shall
18present to the Secretary a written report of his or her
19findings of fact, conclusions of law, and recommendations. The
20report shall contain a finding whether or not the accused
21person violated this Act or its rules or failed to comply with
22the conditions required in this Act or its rules. The hearing
23officer shall specify the nature of any violations or failure
24to comply and shall make his or her recommendations to the



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1Secretary. In making recommendations for any disciplinary
2actions, the hearing officer may take into consideration all
3facts and circumstances bearing upon the reasonableness of the
4conduct of the accused and the potential for future harm to the
5public, including, but not limited to, previous discipline of
6the accused by the Department, intent, degree of harm to the
7public and likelihood of harm in the future, any restitution
8made by the accused, and whether the incident or incidents
9contained in the complaint appear to be isolated or represent a
10continuing pattern of conduct. In making his or her
11recommendations for discipline, the hearing officer shall
12endeavor to ensure that the severity of the discipline
13recommended is reasonably related to the severity of the
14violation. The report of findings of fact, conclusions of law,
15and recommendation of the hearing officer shall be the basis
16for the Department's order refusing to issue, restore, or renew
17a registration, or otherwise disciplining a registrant. If the
18Secretary disagrees with the recommendations of the hearing
19officer, the Secretary may issue an order in contravention of
20the hearing officer recommendations. The finding is not
21admissible in evidence against the person in a criminal
22prosecution brought for a violation of this Act, but the
23hearing and finding are not a bar to a criminal prosecution
24brought for a violation of this Act.
25    Section 100. Hearing officer; rehearing. At the conclusion



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1of the hearing, a copy of the hearing officer's report shall be
2served upon the applicant or registrant by the Department,
3either personally or as provided in this Act for the service of
4a notice of hearing. Within 20 days after service, the
5applicant or registrant may present to the Department a motion
6in writing for a rehearing, which shall specify the particular
7grounds for rehearing. The Department may respond to the motion
8for rehearing within 20 days after its service on the
9Department. If no motion for rehearing is filed, then upon the
10expiration of the time specified for filing such a motion, or
11if a motion for rehearing is denied, then upon denial, the
12Secretary may enter an order in accordance with recommendations
13of the hearing officer except as provided in Section 105 or 110
14of this Act. If the applicant or registrant orders from the
15reporting service and pays for a transcript of the record
16within the time for filing a motion for rehearing, the 20-day
17period within which a motion may be filed shall commence upon
18the delivery of the transcript to the applicant or registrant.
19    Section 105. Secretary; rehearing. Whenever the Secretary
20believes that substantial justice has not been done in the
21revocation, suspension, or refusal to issue, restore, or renew
22a registration, or other discipline of an applicant or
23registrant, he or she may order a rehearing by the same or
24other hearing officers.



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1    Section 110. Appointment of a hearing officer. The
2Secretary has the authority to appoint any attorney licensed to
3practice law in the State to serve as the hearing officer in
4any action for refusal to issue, restore, or renew a
5registration or to discipline a registrant. The hearing officer
6has full authority to conduct the hearing. The hearing officer
7shall report his or her findings of fact, conclusions of law,
8and recommendations to the Secretary. If the Secretary
9disagrees with the recommendation of the hearing officer, the
10Secretary may issue an order in contravention of the
12    Section 115. Order or certified copy; prima facie proof.
13An order or certified copy thereof, over the seal of the
14Department and purporting to be signed by the Secretary, is
15prima facie proof that:
16    (1) the signature is the genuine signature of the
17Secretary; and
18    (2) the Secretary is duly appointed and qualified.
19    Section 120. Restoration of suspended or revoked
20registration. At any time after the successful completion of a
21term of suspension or revocation of a registration, the
22Department may restore it to the registrant, upon the written
23recommendation of the hearing officer, unless after an
24investigation and a hearing the Secretary determines that



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1restoration is not in the public interest.
2    Section 125. Surrender of registration. Upon the
3revocation or suspension of a registration, the registrant
4shall immediately surrender his or her registration to the
5Department. If the registrant fails to do so, the Department
6has the right to seize the registration.
7    Section 130. Summary suspension of a registration. The
8Secretary may summarily suspend the registration of any
9registrant under this Act without a hearing, simultaneously
10with the institution of proceedings for a hearing provided for
11in Section 75 of this Act, if the Secretary finds that evidence
12in the Secretary's possession indicates that the continuation
13of practice by the registrant would constitute an imminent
14danger to the public. In the event that the Secretary summarily
15suspends the registration of a registrant under this Section
16without a hearing, a hearing must be commenced within 30 days
17after the suspension has occurred and concluded as
18expeditiously as practical.
19    Section 135. Administrative review; venue.
20    (a) All final administrative decisions of the Department
21are subject to judicial review under the Administrative Review
22Law and its rules. The term "administrative decision" is
23defined as in Section 3-101 of the Code of Civil Procedure.



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1    (b) Proceedings for judicial review shall be commenced in
2the circuit court of the county in which the party applying for
3review resides, but if the party is not a resident of Illinois,
4the venue shall be in Sangamon County.
5    Section 140. Certifications of record; costs. The
6Department shall not be required to certify any record to the
7court, to file an answer in court, or to otherwise appear in
8any court in a judicial review proceeding unless and until the
9Department has received from the plaintiff payment of the costs
10of furnishing and certifying the record, which costs shall be
11determined by the Department. Failure on the part of the
12plaintiff to file the receipt in court is grounds for dismissal
13of the action.
14    Section 145. Violations. Any person who is found to have
15violated any provision of this Act is guilty of a Class A
16misdemeanor. On conviction of a second or subsequent offense,
17the violator is guilty of a Class 4 felony.
18    Section 150. Civil penalties.
19    (a) In addition to any other penalty provided by law, any
20person who violates this Act shall forfeit and pay a civil
21penalty to the Department in an amount not to exceed $25,000
22for each violation as determined by the Department. The civil
23penalty shall be assessed by the Department in accordance with



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1the provisions of this Act.
2    (b) The Department has the authority and power to
3investigate any and all unregistered activity.
4    (c) The civil penalty shall be paid within 60 days after
5the effective date of the order imposing the civil penalty. The
6order shall constitute a judgment and may be filed and
7execution had thereon in the same manner as any judgment from
8any court of record.
9    (d) All moneys collected under this Section shall be
10deposited into the Appraisal Administration Fund.
11    Section 155. Consent order. At any point in the
12proceedings as provided in this Act, both parties may agree to
13a negotiated consent order. The consent order shall be final
14upon signature of the Secretary.
15    Section 160. Business practice provisions; standards of
17    (a) The Department may adopt by rule the Uniform Standards
18of Professional Appraisal Practice as published from time to
19time by the Appraisal Standards Board of the Appraisal
20Foundation. Appraisal management companies shall not interfere
21with adherence to the Uniform Standards of Professional
22Appraisal Practice or the Real Estate Appraiser Act of 2002 or
23a subsequent Act by individuals licensed under the respective



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1    (b) All payment policies from registrants under this Act to
2appraisers shall be written and definitive in nature.
3    (c) In the event of a value dispute or a requested
4reconsideration of value, the appraisal management company
5shall deliver all information that supports an increase or
6decrease in value to the appraiser. This information may
7include, but is not limited to, additional comparable sales.
8    (d) Each entity registered under this Act shall designate a
9controlling person who is responsible to assure that the
10company operates in compliance with this Act. The company shall
11file a form provided by the Department indicating the company's
12designation of the controlling person and such individual's
13acceptance of the responsibility. A registrant shall notify the
14Department of any change in its controlling person within 30
15days. Any registrant who does not comply with this subsection
16(d) shall have its registration suspended under the provisions
17set forth in this Act until the registrant complies with this
18Section. Any individual registrant who operates as a sole
19proprietorship shall be considered a designated controlling
20person for the purposes of this Act.
21    (e) Appraisal management companies or employees of an
22appraisal management company involved in a real estate
23transaction who have a reasonable basis to believe that an
24appraiser involved in the preparation of an appraisal for the
25real estate transaction has failed to comply with the Uniform
26Standards of Professional Appraisal Practice, has violated



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1this Act or its rules, or has otherwise engaged in unethical
2conduct shall report the matter to the Department. Any
3registrant, employee, or individual acting on behalf of a
4registrant, acting in good faith, and not in a willful and
5wanton manner, in complying with this Act by reporting the
6conduct to the Department shall not, as a result of such
7actions, be subject to criminal prosecution or civil damages.
8    (f) Appraisal management companies are required to be in
9compliance with the appraisal independence standards
10established under Section 129E of the federal Truth in Lending
11Act, including the requirement that fee appraisers be
12compensated at a customary and reasonable rate when the
13appraisal management company is providing services for a
14consumer credit transaction secured by the principal dwelling
15of a consumer. To the extent permitted by federal law or
16regulation, the Department shall formulate rules pertaining to
17customary and reasonable rates of compensation for fee
18appraisers. The appraisal management company must certify to
19the Department that it has policies and procedures in place to
20be in compliance under the Final Interim Rule of the federal
21Dodd-Frank Wall Street Reform and Consumer Protection Act.
22    (g) No appraisal management company procuring or
23facilitating an appraisal may have a direct or indirect
24interest, financial or otherwise, in the real estate or the
25transaction that is the subject of the appraisal, as defined by
26the federal Dodd-Frank Wall Street Reform and Consumer



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1Protection Act, any amendments thereto, or successor acts or
2other applicable provisions of federal law or regulations.
3    Section 165. Prohibited activities.
4    (a) No person or entity acting in the capacity of an
5appraisal management company shall improperly influence or
6attempt to improperly influence the development, reporting,
7result, or review of any appraisal by engaging, without
8limitation, in any of the following:
9        (1) Withholding or threatening to withhold timely
10    payment for a completed appraisal, except where addressed
11    in a mutually agreed upon contract.
12        (2) Withholding or threatening to withhold, either
13    expressed or by implication, future business from, or
14    demoting, or terminating, or threatening to demote or
15    terminate an Illinois licensed or certified appraiser.
16        (3) Expressly or impliedly promising future business,
17    promotions, or increased compensation for an independent
18    appraiser.
19        (4) Conditioning an assignment for an appraisal
20    service or the payment of an appraisal fee or salary or
21    bonus on the opinion, conclusion, or valuation to be
22    reached in an appraisal report.
23        (5) Requesting that an appraiser provide an estimated,
24    predetermined, or desired valuation in an appraisal report
25    or provide estimated values or sales at any time prior to



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1    the appraiser's completion of an appraisal report.
2        (6) Allowing or directing the removal of an appraiser
3    from an appraisal panel without prior written notice to the
4    appraiser.
5        (7) Requiring an appraiser to sign a non-compete clause
6    when not an employee of the entity.
7        (8) Requiring an appraiser to sign any sort of
8    indemnification agreement that would require the appraiser
9    to defend and hold harmless the appraisal management
10    company or any of its agents, employees, or independent
11    contractors for any liability, damage, losses, or claims
12    arising out of the services performed by the appraisal
13    management company or its agents, employees, or
14    independent contractors and not the services performed by
15    the appraiser.
16        (9) Prohibiting or attempting to prohibit the
17    appraiser from including or referencing the appraisal fee,
18    the appraisal management company name or identity, or the
19    client's or lender's name or identity within the body of
20    the appraisal report.
21        (10) Require an appraiser to collect a fee from the
22    borrower or occupant of the property to be appraised.
23        (11) Knowingly withholding any end-user client
24    guidelines, policies, requirements, standards, assignment
25    conditions, and special instructions from an appraiser
26    prior to the acceptance of an appraisal assignment.



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1    (b) A person or entity may not structure an appraisal
2assignment or a contract with an independent appraiser for the
3purpose of evading the provisions of this Act.
4    (c) No registrant or other person or entity may alter,
5modify, or otherwise change a completed appraisal report
6submitted by an independent appraiser, including without
7limitation, by doing either of the following:
8        (1) permanently or temporarily removing the
9    appraiser's signature or seal; or
10        (2) adding information to, or removing information
11    from, the appraisal report with an intent to change the
12    value conclusion or the condition of the property.
13    (d) No appraisal management company may require an
14appraiser to provide it with the appraiser's digital signature
15or seal. However, nothing in this Act shall be deemed to
16prohibit an appraiser from voluntarily providing his or her
17digital signature or seal to another person on an
18assignment-by-assignment basis, in accordance with USPAP.
19    (e) Nothing in this Act shall prohibit an appraisal
20management company from requesting that an appraiser:
21        (1) consider additional appropriate property
22    information, including the consideration of additional
23    comparable properties to make or support an appraisal;
24        (2) provide further detail, substantiation, or
25    explanation for the appraiser's value conclusion; or
26        (3) correct factual errors in the appraisal report.



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1    Section 170. Confidentiality. All information collected by
2the Department in the course of an examination or investigation
3of a licensee or applicant, including, but not limited to, any
4complaint against a licensee filed with the Department and
5information collected to investigate any such complaint, shall
6be maintained for the confidential use of the Department and
7shall not be disclosed. The Department may not disclose the
8information to anyone other than law enforcement officials,
9other regulatory agencies that have an appropriate regulatory
10interest as determined by the Secretary, or to a party
11presenting a lawful subpoena to the Department. Information and
12documents disclosed to a federal, State, county, or local law
13enforcement agency shall not be disclosed by the agency for any
14purpose to any other agency or person. A formal complaint filed
15against a licensee by the Department or any order issued by the
16Department against a licensee or applicant shall be a public
17record, except as otherwise prohibited by law.
18    Section 175. Illinois Administrative Procedure Act;
19application. The Illinois Administrative Procedure Act is
20expressly adopted and incorporated in this Act as if all of the
21provisions of that Act were included in this Act, except that
22the provision of paragraph (d) of Section 10-65 of the Illinois
23Administrative Procedure Act, which provides that at hearings
24the registrant has the right to show compliance with all lawful



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1requirements for retention or continuation or renewal of the
2registration, is specifically excluded. For the purpose of this
3Act, the notice required under Section 10-25 of the Illinois
4Administrative Procedure Act is considered sufficient when
5mailed to the last known address of a party.
6    Section 180. Home rule. The regulation and registration of
7practice as an appraisal management company are exclusive
8powers and functions of the State. A home rule unit may not
9regulate the practice or require the registration as an
10appraisal management company. This Section is a denial and
11limitation of home rule powers and functions under subsection
12(h) of Section 6 of Article VII of the Illinois Constitution.
13    Section 999. Effective date. This Act takes effect upon
14becoming law.