HB5331 EngrossedLRB098 17462 HEP 54768 b

1    AN ACT concerning regulation.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Residential Mortgage License Act of 1987 is
5amended by changing Sections 1-4, 2-2, 2-4, and 3-2 as follows:
6    (205 ILCS 635/1-4)
7    Sec. 1-4. Definitions.
8    (a) "Residential real property" or "residential real
9estate" shall mean any real property located in Illinois, upon
10which is constructed or intended to be constructed a dwelling.
11    (b) "Making a residential mortgage loan" or "funding a
12residential mortgage loan" shall mean for compensation or gain,
13either directly or indirectly, advancing funds or making a
14commitment to advance funds to a loan applicant for a
15residential mortgage loan.
16    (c) "Soliciting, processing, placing, or negotiating a
17residential mortgage loan" shall mean for compensation or gain,
18either directly or indirectly, accepting or offering to accept
19an application for a residential mortgage loan, assisting or
20offering to assist in the processing of an application for a
21residential mortgage loan on behalf of a borrower, or
22negotiating or offering to negotiate the terms or conditions of
23a residential mortgage loan with a lender on behalf of a



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1borrower including, but not limited to, the submission of
2credit packages for the approval of lenders, the preparation of
3residential mortgage loan closing documents, including a
4closing in the name of a broker.
5    (d) "Exempt person or entity" shall mean the following:
6        (1) (i) Any banking organization or foreign banking
7    corporation licensed by the Illinois Commissioner of Banks
8    and Real Estate or the United States Comptroller of the
9    Currency to transact business in this State; (ii) any
10    national bank, federally chartered savings and loan
11    association, federal savings bank, federal credit union;
12    (iii) (blank); any pension trust, bank trust, or bank trust
13    company; (iv) any bank, savings and loan association,
14    savings bank, or credit union organized under the laws of
15    this or any other state; (v) any Illinois Consumer
16    Installment Loan Act licensee; (vi) any insurance company
17    authorized to transact business in this State; (vii) any
18    entity engaged solely in commercial mortgage lending;
19    (viii) any service corporation of a savings and loan
20    association or savings bank organized under the laws of
21    this State or the service corporation of a federally
22    chartered savings and loan association or savings bank
23    having its principal place of business in this State, other
24    than a service corporation licensed or entitled to
25    reciprocity under the Real Estate License Act of 2000; or
26    (ix) any first tier subsidiary of a bank, the charter of



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1    which is issued under the Illinois Banking Act by the
2    Illinois Commissioner of Banks and Real Estate, or the
3    first tier subsidiary of a bank chartered by the United
4    States Comptroller of the Currency and that has its
5    principal place of business in this State, provided that
6    the first tier subsidiary is regularly examined by the
7    Illinois Commissioner of Banks and Real Estate or the
8    Comptroller of the Currency, or a consumer compliance
9    examination is regularly conducted by the Federal Reserve
10    Board.
11        (1.5) Any employee of a person or entity mentioned in
12    item (1) of this subsection, when acting for such person or
13    entity, or any registered mortgage loan originator when
14    acting for an entity described in subsection (tt) of this
15    Section.
16        (1.8) Any person or entity that does not originate
17    mortgage loans in the ordinary course of business, but
18    makes or acquires residential mortgage loans with his or
19    her own funds for his or her or its own investment without
20    intent to make, acquire, or resell more than 3 residential
21    mortgage loans in any one calendar year.
22        (2) (Blank).
23        (3) Any person employed by a licensee to assist in the
24    performance of the residential mortgage licensee's
25    activities regulated by this Act who is compensated in any
26    manner by only one licensee.



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1        (4) (Blank).
2        (5) Any individual, corporation, partnership, or other
3    entity that originates, services, or brokers residential
4    mortgage loans, as these activities are defined in this
5    Act, and who or which receives no compensation for those
6    activities, subject to the Commissioner's regulations and
7    the federal Secure and Fair Enforcement for Mortgage
8    Licensing Act of 2008 and the rules promulgated under that
9    Act with regard to the nature and amount of compensation.
10        (6) (Blank).
11    (e) "Licensee" or "residential mortgage licensee" shall
12mean a person, partnership, association, corporation, or any
13other entity who or which is licensed pursuant to this Act to
14engage in the activities regulated by this Act.
15    (f) "Mortgage loan" "residential mortgage loan" or "home
16mortgage loan" shall mean any loan primarily for personal,
17family, or household use that is secured by a mortgage, deed of
18trust, or other equivalent consensual security interest on a
19dwelling as defined in Section 103(v) of the federal Truth in
20Lending Act, or residential real estate upon which is
21constructed or intended to be constructed a dwelling.
22    (g) "Lender" shall mean any person, partnership,
23association, corporation, or any other entity who either lends
24or invests money in residential mortgage loans.
25    (h) "Ultimate equitable owner" shall mean a person who,
26directly or indirectly, owns or controls an ownership interest



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1in a corporation, foreign corporation, alien business
2organization, trust, or any other form of business organization
3regardless of whether the person owns or controls the ownership
4interest through one or more persons or one or more proxies,
5powers of attorney, nominees, corporations, associations,
6partnerships, trusts, joint stock companies, or other entities
7or devices, or any combination thereof.
8    (i) "Residential mortgage financing transaction" shall
9mean the negotiation, acquisition, sale, or arrangement for or
10the offer to negotiate, acquire, sell, or arrange for, a
11residential mortgage loan or residential mortgage loan
13    (j) "Personal residence address" shall mean a street
14address and shall not include a post office box number.
15    (k) "Residential mortgage loan commitment" shall mean a
16contract for residential mortgage loan financing.
17    (l) "Party to a residential mortgage financing
18transaction" shall mean a borrower, lender, or loan broker in a
19residential mortgage financing transaction.
20    (m) "Payments" shall mean payment of all or any of the
21following: principal, interest and escrow reserves for taxes,
22insurance and other related reserves, and reimbursement for
23lender advances.
24    (n) "Commissioner" shall mean the Commissioner of Banks and
25Real Estate, except that, beginning on April 6, 2009 (the
26effective date of Public Act 95-1047), all references in this



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



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



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



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



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



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



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



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1modification activities shall report those activities to the
2Department of Financial and Professional Regulation in the
3manner provided by the Department; however, the Department
4shall not impose a fee for reporting, nor require any
5additional qualifications to engage in those activities beyond
6those provided pursuant to this Act for mortgage loan
8    "Mortgage loan originator" does not include an individual
9engaged solely as a loan processor or underwriter except as
10otherwise provided in subsection (d) of Section 7-1A of this
12    "Mortgage loan originator" does not include a person or
13entity that only performs real estate brokerage activities and
14is licensed in accordance with the Real Estate License Act of
152000, unless the person or entity is compensated by a lender, a
16mortgage broker, or other mortgage loan originator, or by any
17agent of that lender, mortgage broker, or other mortgage loan
19    "Mortgage loan originator" does not include a person or
20entity solely involved in extensions of credit relating to
21timeshare plans, as that term is defined in Section 101(53D) of
22Title 11, United States Code.
23    (kk) "Depository institution" has the same meaning as in
24Section 3 of the Federal Deposit Insurance Act, and includes
25any credit union.
26    (ll) "Dwelling" means a residential structure or mobile



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



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1    lists, or other promotional items, that the individual can
2    or will perform any of the activities of a mortgage loan
3    originator.
4    (pp) "Nationwide Mortgage Licensing System and Registry"
5means a mortgage licensing system developed and maintained by
6the Conference of State Bank Supervisors and the American
7Association of Residential Mortgage Regulators for the
8licensing and registration of licensed mortgage loan
10    (qq) "Nontraditional mortgage product" means any mortgage
11product other than a 30-year fixed rate mortgage.
12    (rr) "Person" means a natural person, corporation,
13company, limited liability company, partnership, or
15    (ss) "Real estate brokerage activity" means any activity
16that involves offering or providing real estate brokerage
17services to the public, including:
18        (1) acting as a real estate agent or real estate broker
19    for a buyer, seller, lessor, or lessee of real property;
20        (2) bringing together parties interested in the sale,
21    purchase, lease, rental, or exchange of real property;
22        (3) negotiating, on behalf of any party, any portion of
23    a contract relating to the sale, purchase, lease, rental,
24    or exchange of real property, other than in connection with
25    providing financing with respect to any such transaction;
26        (4) engaging in any activity for which a person engaged



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1    in the activity is required to be registered or licensed as
2    a real estate agent or real estate broker under any
3    applicable law; or
4        (5) offering to engage in any activity, or act in any
5    capacity, described in this subsection (ss).
6    (tt) "Registered mortgage loan originator" means any
7individual that:
8        (1) meets the definition of mortgage loan originator
9    and is an employee of:
10            (A) a depository institution;
11            (B) a subsidiary that is:
12                (i) owned and controlled by a depository
13            institution; and
14                (ii) regulated by a federal banking agency; or
15            (C) an institution regulated by the Farm Credit
16        Administration; and
17        (2) is registered with, and maintains a unique
18    identifier through, the Nationwide Mortgage Licensing
19    System and Registry.
20    (uu) "Unique identifier" means a number or other identifier
21assigned by protocols established by the Nationwide Mortgage
22Licensing System and Registry.
23    (vv) "Residential mortgage license" means a license issued
24pursuant to Section 1-3, 2-2, or 2-6 of this Act.
25    (ww) "Mortgage loan originator license" means a license
26issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.



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1    (xx) "Secretary" means the Secretary of the Department of
2Financial and Professional Regulation, or a person authorized
3by the Secretary or by this Act to act in the Secretary's
5    (yy) "Loan modification" means, for compensation or gain,
6either directly or indirectly offering or negotiating on behalf
7of a borrower or homeowner to adjust the terms of a residential
8mortgage loan in a manner not provided for in the original or
9previously modified mortgage loan.
10    (zz) "Short sale facilitation" means, for compensation or
11gain, either directly or indirectly offering or negotiating on
12behalf of a borrower or homeowner to facilitate the sale of
13residential real estate subject to one or more residential
14mortgage loans or debts constituting liens on the property in
15which the proceeds from selling the residential real estate
16will fall short of the amount owed and the lien holders are
17contacted to agree to release their lien on the residential
18real estate and accept less than the full amount owed on the
20(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10;
2196-1216, eff. 1-1-11; 97-143, eff. 7-14-11; 97-891, eff.
23    (205 ILCS 635/2-2)
24    Sec. 2-2. Application process; investigation; fee.
25    (a) The Secretary shall issue a license upon completion of



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1all of the following:
2        (1) The filing of an application for license with the
3    Director or the Nationwide Mortgage Licensing System and
4    Registry as approved by the Director.
5        (2) The filing with the Secretary of a listing of
6    judgments entered against, and bankruptcy petitions by,
7    the license applicant for the preceding 10 years.
8        (3) The payment, in certified funds, of investigation
9    and application fees, the total of which shall be in an
10    amount equal to $2,700 annually. To comply with the common
11    renewal date and requirements of the Nationwide Mortgage
12    Licensing System and Registry, the term of initial licenses
13    may be extended or shortened with applicable fees prorated
14    or combined accordingly.
15        (4) Except for a broker applying to renew a license,
16    the filing of an audited balance sheet including all
17    footnotes prepared by a certified public accountant in
18    accordance with generally accepted accounting principles
19    and generally accepted auditing standards principles which
20    evidences that the applicant meets the net worth
21    requirements of Section 3-5. Notwithstanding the
22    requirements of this subsection, an applicant that is a
23    subsidiary may submit audited consolidated financial
24    statements of its parent, intermediary parent, or ultimate
25    parent as long as the consolidated statements are supported
26    by consolidating statements which include the applicant's



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1    financial statement. If the consolidating statements are
2    unaudited, the applicant's chief financial officer shall
3    attest to the applicant's financial statements disclosed
4    in the consolidating statements.
5        (5) The filing of proof satisfactory to the
6    Commissioner that the applicant, the members thereof if the
7    applicant is a partnership or association, the members or
8    managers thereof that retain any authority or
9    responsibility under the operating agreement if the
10    applicant is a limited liability company, or the officers
11    thereof if the applicant is a corporation have 3 years
12    experience preceding application in real estate finance.
13    Instead of this requirement, the applicant and the
14    applicant's officers or members, as applicable, may
15    satisfactorily complete a program of education in real
16    estate finance and fair lending, as approved by the
17    Commissioner, prior to receiving the initial license. The
18    Commissioner shall promulgate rules regarding proof of
19    experience requirements and educational requirements and
20    the satisfactory completion of those requirements. The
21    Commissioner may establish by rule a list of duly licensed
22    professionals and others who may be exempt from this
23    requirement.
24        (6) An investigation of the averments required by
25    Section 2-4, which investigation must allow the
26    Commissioner to issue positive findings stating that the



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1    financial responsibility, experience, character, and
2    general fitness of the license applicant and of the members
3    thereof if the license applicant is a partnership or
4    association, of the officers and directors thereof if the
5    license applicant is a corporation, and of the managers and
6    members that retain any authority or responsibility under
7    the operating agreement if the license applicant is a
8    limited liability company are such as to command the
9    confidence of the community and to warrant belief that the
10    business will be operated honestly, fairly and efficiently
11    within the purpose of this Act. If the Commissioner shall
12    not so find, he or she shall not issue such license, and he
13    or she shall notify the license applicant of the denial.
14    The Commissioner may impose conditions on a license if the
15Commissioner determines that the conditions are necessary or
16appropriate. These conditions shall be imposed in writing and
17shall continue in effect for the period prescribed by the
19    (b) All licenses shall be issued to the license applicant.
20    Upon receipt of such license, a residential mortgage
21licensee shall be authorized to engage in the business
22regulated by this Act. Such license shall remain in full force
23and effect until it expires without renewal, is surrendered by
24the licensee or revoked or suspended as hereinafter provided.
25(Source: P.A. 96-112, eff. 7-31-09; 96-1000, eff. 7-2-10;
2697-891, eff. 8-3-12.)



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1    (205 ILCS 635/2-4)  (from Ch. 17, par. 2322-4)
2    Sec. 2-4. Averments of Licensee. Each application for
3license or for the renewal of a license shall be accompanied by
4the following averments stating that the applicant:
5        (a) Will maintain at least one full service office
6    within the State of Illinois pursuant to Section 3-4 of
7    this Act;
8        (b) Will maintain staff reasonably adequate to meet the
9    requirements of Section 3-4 of this Act;
10        (c) Will keep and maintain for 36 months the same
11    written records as required by the federal Equal Credit
12    Opportunity Act, and any other information required by
13    regulations of the Commissioner regarding any home
14    mortgage in the course of the conduct of its residential
15    mortgage business;
16        (d) Will file with the Commissioner or Nationwide
17    Mortgage Licensing System and Registry as applicable, when
18    due, any report or reports which it is required to file
19    under any of the provisions of this Act;
20        (e) Will not engage, whether as principal or agent, in
21    the practice of rejecting residential mortgage
22    applications without reasonable cause, or varying terms or
23    application procedures without reasonable cause, for home
24    mortgages on real estate within any specific geographic
25    area from the terms or procedures generally provided by the



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1    licensee within other geographic areas of the State;
2        (f) Will not engage in fraudulent home mortgage
3    underwriting practices;
4        (g) Will not make payment, whether directly or
5    indirectly, of any kind to any in house or fee appraiser of
6    any government or private money lending agency with which
7    an application for a home mortgage has been filed for the
8    purpose of influencing the independent judgment of the
9    appraiser with respect to the value of any real estate
10    which is to be covered by such home mortgage;
11        (h) Has filed tax returns (State and Federal) for the
12    past 3 years or filed with the Commissioner an accountant's
13    or attorney's statement as to why no return was filed;
14        (i) Will not engage in any discrimination or redlining
15    activities prohibited by Section 3-8 of this Act;
16        (j) Will not knowingly make any false promises likely
17    to influence or persuade, or pursue a course of
18    misrepresentation and false promises through agents,
19    solicitors, advertising or otherwise;
20        (k) Will not knowingly misrepresent, circumvent or
21    conceal, through whatever subterfuge or device, any of the
22    material particulars or the nature thereof, regarding a
23    transaction to which it is a party to the injury of another
24    party thereto;
25        (l) Will disburse funds in accordance with its
26    agreements;



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1        (m) Has not committed a crime against the law of this
2    State, any other state or of the United States, involving
3    moral turpitude, fraudulent or dishonest dealing, and that
4    no final judgment has been entered against it in a civil
5    action upon grounds of fraud, misrepresentation or deceit
6    which has not been previously reported to the Commissioner;
7        (n) Will account or deliver to the owner upon request
8    any personal property such as money, fund, deposit, check,
9    draft, mortgage, other document or thing of value which it
10    is not in law or equity entitled to retain under the
11    circumstances;
12        (o) Has not engaged in any conduct which would be cause
13    for denial of a license;
14        (p) Has not become insolvent;
15        (q) Has not submitted an application for a license
16    under this Act which contains a material misstatement;
17        (r) Has not demonstrated by course of conduct,
18    negligence or incompetence in performing any act for which
19    it is required to hold a license under this Act;
20        (s) Will advise the Commissioner in writing, or the
21    Nationwide Mortgage Licensing System and Registry as
22    applicable, of any changes to the information submitted on
23    the most recent application for license or averments of
24    record within 30 days of said change. The written notice
25    must be signed in the same form as the application for
26    license being amended;



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1        (t) Will comply with the provisions of this Act, or
2    with any lawful order, rule or regulation made or issued
3    under the provisions of this Act;
4        (u) Will submit to periodic examination by the
5    Commissioner as required by this Act;
6        (v) Will advise the Commissioner in writing of
7    judgments entered against, and bankruptcy petitions by,
8    the license applicant within 5 days of occurrence;
9        (w) Will advise the Commissioner in writing within 30
10    days of any request made to a licensee under this Act to
11    repurchase a loan in a manner that completely and clearly
12    identifies to whom the request was made, the loans
13    involved, and the reason therefor;
14        (x) Will advise the Commissioner in writing within 30
15    days of any request from any entity to repurchase a loan in
16    a manner that completely and clearly identifies to whom the
17    request was made, the loans involved, and the reason for
18    the request;
19        (y) Will at all times act in a manner consistent with
20    subsections (a) and (b) of Section 1-2 of this Act;
21        (z) Will not knowingly hire or employ a loan originator
22    who is not registered, or mortgage loan originator who is
23    not licensed, with the Commissioner as required under
24    Section 7-1 or Section 7-1A, as applicable, of this Act;
25        (aa) Will not charge or collect advance payments from
26    borrowers or homeowners for engaging in loan modification;



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1    and
2        (bb) Will not structure activities or contracts to
3    evade provisions of this Act.
4    A licensee who fails to fulfill obligations of an averment,
5to comply with averments made, or otherwise violates any of the
6averments made under this Section shall be subject to the
7penalties in Section 4-5 of this Act.
8(Source: P.A. 96-112, eff. 7-31-09; 97-891, eff. 8-3-12.)
9    (205 ILCS 635/3-2)  (from Ch. 17, par. 2323-2)
10    Sec. 3-2. Annual audit.
11    (a) At the licensee's fiscal year-end, but in no case more
12than 12 months after the last audit conducted pursuant to this
13Section, except as otherwise provided in this Section, it shall
14be mandatory for each residential mortgage licensee to cause
15its books and accounts to be audited by a certified public
16accountant not connected with such licensee. The books and
17records of all licensees under this Act shall be maintained on
18an accrual basis. The audit must be sufficiently comprehensive
19in scope to permit the expression of an opinion on the
20financial statements, which must be prepared in accordance with
21generally accepted accounting principles, and must be
22performed in accordance with generally accepted auditing
23standards. Notwithstanding the requirements of this
24subsection, a licensee that is a first tier subsidiary may
25submit audited consolidated financial statements of its



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1parent, intermediary parent, or ultimate parent as long as the
2consolidated statements are supported by consolidating
3statements which include the licensee's financial statement.
4If the consolidating statements are unaudited, the . The
5licensee's chief financial officer shall attest to the
6licensee's financial statements disclosed in the consolidating
8    (b) As used herein, the term "expression of opinion"
9includes either (1) an unqualified opinion, (2) a qualified
10opinion, (3) a disclaimer of opinion, or (4) an adverse
12    (c) If a qualified or adverse opinion is expressed or if an
13opinion is disclaimed, the reasons therefore must be fully
14explained. An opinion, qualified as to a scope limitation,
15shall not be acceptable.
16    (d) The most recent audit report shall be filed with the
17Commissioner within 90 days after the end of the licensee's
18fiscal year, or with the Nationwide Mortgage Licensing System
19and Registry, if applicable, pursuant to Mortgage Call Report
20requirements. The report filed with the Commissioner shall be
21certified by the certified public accountant conducting the
22audit. The Commissioner may promulgate rules regarding late
23audit reports.
24    (e) If any licensee required to make an audit shall fail to
25cause an audit to be made, the Commissioner shall cause the
26same to be made by a certified public accountant at the



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1licensee's expense. The Commissioner shall select such
2certified public accountant by advertising for bids or by such
3other fair and impartial means as he or she establishes by
5    (f) In lieu of the audit or compilation financial statement
6required by this Section, a licensee shall submit and the
7Commissioner may accept any audit made in conformance with the
8audit requirements of the U.S. Department of Housing and Urban
10    (g) With respect to licensees who solely broker residential
11mortgage loans as defined in subsection (o) of Section 1-4,
12instead of the audit required by this Section, the Commissioner
13may accept compilation financial statements prepared at least
14every 12 months, and the compilation financial statement must
15be submitted within 90 days after the end of the licensee's
16fiscal year, or with the Nationwide Mortgage Licensing System
17and Registry, if applicable, pursuant to Mortgage Call Report
18requirements. If a licensee under this Section fails to file a
19compilation as required, the Commissioner shall cause an audit
20of the licensee's books and accounts to be made by a certified
21public accountant at the licensee's expense. The Commissioner
22shall select the certified public accountant by advertising for
23bids or by such other fair and impartial means as he or she
24establishes by rule. A licensee who files false or misleading
25compilation financial statements is guilty of a business
26offense and shall be fined not less than $5,000.



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1    (h) The workpapers of the certified public accountants
2employed by each licensee for purposes of this Section are to
3be made available to the Commissioner or the Commissioner's
4designee upon request and may be reproduced by the Commissioner
5or the Commissioner's designee to enable to the Commissioner to
6carry out the purposes of this Act.
7    (i) Notwithstanding any other provision of this Section, if
8a licensee relying on subsection (g) of this Section causes its
9books to be audited at any other time or causes its financial
10statements to be reviewed, a complete copy of the audited or
11reviewed financial statements shall be delivered to the
12Commissioner at the time of the annual license renewal payment
13following receipt by the licensee of the audited or reviewed
14financial statements. All workpapers shall be made available to
15the Commissioner upon request. The financial statements and
16workpapers may be reproduced by the Commissioner or the
17Commissioner's designee to carry out the purposes of this Act.
18(Source: P.A. 97-813, eff. 7-13-12; 97-891, eff. 8-3-12;
1998-463, eff. 8-16-13.)
20    Section 10. The Residential Real Property Disclosure Act is
21amended by changing Sections 70, 72, 74, 76, 78, and 80 as
23    (765 ILCS 77/70)
24    Sec. 70. Predatory lending database program.



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1    (a) As used in this Article:
2    "Adjustable rate mortgage" or "ARM" means a closed-end
3mortgage transaction that allows adjustments of the loan
4interest rate during the first 3 years of the loan term.
5    "Borrower" means a person seeking a mortgage loan.
6    "Broker" means a "broker" or "loan broker", as defined in
7subsection (p) of Section 1-4 of the Residential Mortgage
8License Act of 1987.
9    "Closing agent" means an individual assigned by a title
10insurance company or a broker or originator to ensure that the
11execution of documents related to the closing of a real estate
12sale or the refinancing of a real estate loan and the
13disbursement of closing funds are in conformity with the
14instructions of the entity financing the transaction.
15    "Counseling" means in-person counseling provided by a
16counselor employed by a HUD-approved HUD-certified counseling
17agency to all borrowers, or documented telephone counseling
18where a hardship would be imposed on one or more borrowers. A
19hardship shall exist in instances in which the borrower is
20confined to his or her home due to medical conditions, as
21verified in writing by a physician, or the borrower resides 50
22miles or more from the nearest participating HUD-approved
23HUD-certified housing counseling agency. In instances of
24telephone counseling, the borrower must supply all necessary
25documents to the counselor at least 72 hours prior to the
26scheduled telephone counseling session.



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1    "Counselor" means a counselor employed by a HUD-approved
2HUD-certified housing counseling agency.
3    "Credit score" means a credit risk score as defined by the
4Fair Isaac Corporation, or its successor, and reported under
5such names as "BEACON", "EMPIRICA", and "FAIR ISAAC RISK SCORE"
6by one or more of the following credit reporting agencies or
7their successors: Equifax, Inc., Experian Information
8Solutions, Inc., and TransUnion LLC. If the borrower's credit
9report contains credit scores from 2 reporting agencies, then
10the broker or loan originator shall report the lower score. If
11the borrower's credit report contains credit scores from 3
12reporting agencies, then the broker or loan originator shall
13report the middle score.
14    "Department" means the Department of Financial and
15Professional Regulation.
16    "Exempt person or entity" means that term as it is defined
17in subsections (d)(1), (d)(1.5), and (d)(1.8) of Section 1-4 of
18the Residential Mortgage License Act of 1987.
19    "First-time homebuyer" means a borrower who has not held an
20ownership interest in residential property.
21    "HUD-approved HUD-certified counseling" or "counseling"
22means counseling given to a borrower by a counselor employed by
23a HUD-approved HUD-certified housing counseling agency.
24    "Interest only" means a closed-end loan that permits one or
25more payments of interest without any reduction of the
26principal balance of the loan, other than the first payment on



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1the loan.
2    "Lender" means that term as it is defined in subsection (g)
3of Section 1-4 of the Residential Mortgage License Act of 1987.
4    "Licensee" means that term as it is defined in subsection
5(e) of Section 1-4 of the Residential Mortgage License Act of
7    "Mortgage loan" means that term as it is defined in
8subsection (f) of Section 1-4 of the Residential Mortgage
9License Act of 1987.
10    "Negative amortization" means an amortization method under
11which the outstanding balance may increase at any time over the
12course of the loan because the regular periodic payment does
13not cover the full amount of interest due.
14    "Originator" means a "loan originator" as defined in
15subsection (hh) of Section 1-4 of the Residential Mortgage
16License Act of 1987, except an exempt person, and means a
17"mortgage loan originator" as defined in subsection (jj) of
18Section 1-4 of the Residential Mortgage License Act of 1987,
19except an exempt person.
20    "Points and fees" has the meaning ascribed to that term in
21Section 10 of the High Risk Home Loan Act.
22    "Prepayment penalty" means a charge imposed by a lender
23under a mortgage note or rider when the loan is paid before the
24expiration of the term of the loan.
25    "Refinancing" means a loan secured by the borrower's or
26borrowers' primary residence where the proceeds are not used as



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1purchase money for the residence.
2    "Title insurance company" means any domestic company
3organized under the laws of this State for the purpose of
4conducting the business of guaranteeing or insuring titles to
5real estate and any title insurance company organized under the
6laws of another State, the District of Columbia, or a foreign
7government and authorized to transact the business of
8guaranteeing or insuring titles to real estate in this State.
9    (a-5) A predatory lending database program shall be
10established within Cook County. The program shall be
11administered in accordance with this Article. The inception
12date of the program shall be July 1, 2008. A predatory lending
13database program shall be expanded to include Kane, Peoria, and
14Will counties. The inception date of the expansion of the
15program as it applies to Kane, Peoria, and Will counties shall
16be July 1, 2010. Until the inception date, none of the duties,
17obligations, contingencies, or consequences of or from the
18program shall be imposed. The program shall apply to all
19mortgage applications that are governed by this Article and
20that are made or taken on or after the inception of the
22    (b) The database created under this program shall be
23maintained and administered by the Department. The database
24shall be designed to allow brokers, originators, counselors,
25title insurance companies, and closing agents to submit
26information to the database online. The database shall not be



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1designed to allow those entities to retrieve information from
2the database, except as otherwise provided in this Article.
3Information submitted by the broker or originator to the
4Department may be used to populate the online form submitted by
5a counselor, title insurance company, or closing agent.
6    (c) Within 10 business days after taking a mortgage
7application, the broker or originator for any mortgage on
8residential property within the program area must submit to the
9predatory lending database all of the information required
10under Section 72 and any other information required by the
11Department by rule. Within 7 business days after receipt of the
12information, the Department shall compare that information to
13the housing counseling standards in Section 73 and issue to the
14borrower and the broker or originator a determination of
15whether counseling is recommended for the borrower. The
16borrower may not waive counseling. If at any time after
17submitting the information required under Section 72 the broker
18or originator (i) changes the terms of the loan or (ii) issues
19a new commitment to the borrower, then, within 5 business days
20thereafter, the broker or originator shall re-submit all of the
21information required under Section 72 and, within 4 business
22days after receipt of the information re-submitted by the
23broker or originator, the Department shall compare that
24information to the housing counseling standards in Section 73
25and shall issue to the borrower and the broker or originator a
26new determination of whether re-counseling is recommended for



HB5331 Engrossed- 34 -LRB098 17462 HEP 54768 b

1the borrower based on the information re-submitted by the
2broker or originator. The Department shall require
3re-counseling if the loan terms have been modified to meet
4another counseling standard in Section 73, or if the broker has
5increased the interest rate by more than 200 basis points.
6    (d) If the Department recommends counseling for the
7borrower under subsection (c), then the Department shall notify
8the borrower of all participating HUD-approved HUD-certified
9counseling agencies located within the State and direct the
10borrower to interview with a counselor associated with one of
11those agencies. Within 10 business days after receipt of the
12notice of HUD-approved HUD-certified counseling agencies, it
13is the borrower's responsibility to borrower shall select one
14of those agencies and shall engage in an interview with a
15counselor associated with that agency. The selection must take
16place and the appointment for the interview must be set within
1710 business days, although the interview may take place beyond
18the 10 business day period. Within 7 business days after
19interviewing the borrower, the counselor must submit to the
20predatory lending database all of the information required
21under Section 74 and any other information required by the
22Department by rule. Reasonable and customary costs not to
23exceed $300 associated with counseling provided under the
24program shall be paid by the broker or originator and shall not
25be charged back to, or recovered from, the borrower. The
26Department shall annually calculate to the nearest dollar an



HB5331 Engrossed- 35 -LRB098 17462 HEP 54768 b

1adjusted rate for inflation. A counselor shall not recommend or
2suggest that a borrower contact any specific mortgage
3origination company, financial institution, or entity that
4deals in mortgage finance to obtain a loan, another quote, or
5for any other reason related to the specific mortgage
6transaction; however, a counselor may suggest that the borrower
7seek an opinion or a quote from another mortgage origination
8company, financial institution, or entity that deals in
9mortgage finance. A counselor or housing counseling agency that
10in good faith provides counseling shall not be liable to a
11broker or originator or borrower for civil damages, except for
12willful or wanton misconduct on the part of the counselor in
13providing the counseling.
14    (e) The broker or originator and the borrower may not take
15any legally binding action concerning the loan transaction
16until the later of the following:
17        (1) the Department issues a determination not to
18    recommend HUD-approved HUD-certified counseling for the
19    borrower in accordance with subsection (c); or
20        (2) the Department issues a determination that
21    HUD-approved HUD-certified counseling is recommended for
22    the borrower and the counselor submits all required
23    information to the database in accordance with subsection
24    (d).
25    (f) Within 10 business days after closing, the title
26insurance company or closing agent must submit to the predatory



HB5331 Engrossed- 36 -LRB098 17462 HEP 54768 b

1lending database all of the information required under Section
276 and any other information required by the Department by
4    (g) The title insurance company or closing agent shall
5attach to the mortgage a certificate of compliance with the
6requirements of this Article, as generated by the database. If
7the transaction is exempt, the title insurance company or
8closing agent shall attach to the mortgage a certificate of
9exemption, as generated by the database. If the title insurance
10company or closing agent fails to attach the certificate of
11compliance or exemption, whichever is required, then the
12mortgage is not recordable. In addition, if any lis pendens for
13a residential mortgage foreclosure is recorded on the property
14within the program area, a certificate of service must be
15simultaneously recorded that affirms that a copy of the lis
16pendens was filed with the Department. The lis pendens may be
17filed with the Department either electronically or by filing a
18hard copy. If the certificate of service is not recorded, then
19the lis pendens pertaining to the residential mortgage
20foreclosure in question is not recordable and is of no force
21and effect.
22    (h) All information provided to the predatory lending
23database under the program is confidential and is not subject
24to disclosure under the Freedom of Information Act, except as
25otherwise provided in this Article. Information or documents
26obtained by employees of the Department in the course of



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1maintaining and administering the predatory lending database
2are deemed confidential. Employees are prohibited from making
3disclosure of such confidential information or documents. Any
4request for production of information from the predatory
5lending database, whether by subpoena, notice, or any other
6source, shall be referred to the Department of Financial and
7Professional Regulation. Any borrower may authorize in writing
8the release of database information. The Department may use the
9information in the database without the consent of the
10borrower: (i) for the purposes of administering and enforcing
11the program; (ii) to provide relevant information to a
12counselor providing counseling to a borrower under the program;
13or (iii) to the appropriate law enforcement agency or the
14applicable administrative agency if the database information
15demonstrates criminal, fraudulent, or otherwise illegal
17    (i) Nothing in this Article is intended to prevent a
18borrower from making his or her own decision as to whether to
19proceed with a transaction.
20    (j) Any person who violates any provision of this Article
21commits an unlawful practice within the meaning of the Consumer
22Fraud and Deceptive Business Practices Act.
23    (j-1) A violation of any provision of this Article by a
24mortgage banking licensee or licensed mortgage loan originator
25shall constitute a violation of the Residential Mortgage
26License Act of 1987.



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1    (j-2) A violation of any provision of this Article by a
2title insurance company, title agent, or escrow agent shall
3constitute a violation of the Title Insurance Act.
4    (j-3) A violation of any provision of this Article by a
5housing counselor shall be referred to the Department of
6Housing and Urban Development.
7    (k) During the existence of the program, the Department
8shall submit semi-annual reports to the Governor and to the
9General Assembly by May 1 and November 1 of each year detailing
10its findings regarding the program. The report shall include,
11by county, at least the following information for each
12reporting period:
13        (1) the number of loans registered with the program;
14        (2) the number of borrowers receiving counseling;
15        (3) the number of loans closed;
16        (4) the number of loans requiring counseling for each
17    of the standards set forth in Section 73;
18        (5) the number of loans requiring counseling where the
19    mortgage originator changed the loan terms subsequent to
20    counseling;
21        (6) the number of licensed mortgage brokers and loan
22    originators entering information into the database;
23        (7) the number of investigations based on information
24    obtained from the database, including the number of
25    licensees fined, the number of licenses suspended, and the
26    number of licenses revoked;



HB5331 Engrossed- 39 -LRB098 17462 HEP 54768 b

1        (8) a summary of the types of non-traditional mortgage
2    products being offered; and
3        (9) a summary of how the Department is actively
4    utilizing the program to combat mortgage fraud.
5(Source: P.A. 96-328, eff. 8-11-09; 96-856, eff. 12-31-09;
697-891, eff. 1-1-13.)
7    (765 ILCS 77/72)
8    Sec. 72. Originator; required information. As part of the
9predatory lending database program, the broker or originator
10must submit all of the following information for inclusion in
11the predatory lending database for each loan for which the
12originator takes an application:
13        (1) The borrower's name, address, social security
14    number or taxpayer identification number, date of birth,
15    and income and expense information, including total
16    monthly consumer debt, contained in the mortgage
17    application.
18        (2) The address, permanent index number, and a
19    description of the collateral and information about the
20    loan or loans being applied for and the loan terms,
21    including the amount of the loan, the rate and whether the
22    rate is fixed or adjustable, amortization or loan period
23    terms, and any other material terms.
24        (3) The borrower's credit score at the time of
25    application.



HB5331 Engrossed- 40 -LRB098 17462 HEP 54768 b

1        (4) Information about the originator and the company
2    the originator works for, including the originator's
3    license number and address, fees being charged, whether the
4    fees are being charged as points up front, the yield spread
5    premium payable outside closing, and other charges made or
6    remuneration required by the broker or originator or its
7    affiliates or the broker's or originator's employer or its
8    affiliates for the mortgage loans.
9        (5) Information about affiliated or third party
10    service providers, including the names and addresses of
11    appraisers, title insurance companies, closing agents,
12    attorneys, and realtors who are involved with the
13    transaction and the broker or originator and any moneys
14    received from the broker or originator in connection with
15    the transaction.
16        (6) All information indicated on the Good Faith
17    Estimate and Truth in Lending statement disclosures given
18    to the borrower by the broker or originator.
19        (7) Annual real estate taxes for the property, together
20    with any assessments payable in connection with the
21    property to be secured by the collateral and the proposed
22    monthly principal and interest charge of all loans to be
23    taken by the borrower and secured by the property of the
24    borrower.
25        (8) Information concerning how the broker or
26    originator obtained the client and the name of its referral



HB5331 Engrossed- 41 -LRB098 17462 HEP 54768 b

1    source, if any.
2        (9) Information concerning the notices provided by the
3    broker or originator to the borrower as required by law and
4    the date those notices were given.
5        (10) Information concerning whether a sale and
6    leaseback is contemplated and the names of the lessor and
7    lessee, seller, and purchaser.
8        (11) Any and all financing by the borrower for the
9    subject property within 12 months prior to the date of
10    application.
11        (12) Loan information, including interest rate, term,
12    purchase price, down payment, and closing costs.
13        (13) Whether the buyer is a first-time homebuyer or
14    refinancing a primary residence.
15        (14) Whether the loan permits interest only payments.
16        (15) Whether the loan may result in negative
17    amortization.
18        (16) Whether the total points and fees payable by the
19    borrowers at or before closing will exceed 5%.
20        (17) Whether the loan includes a prepayment penalty,
21    and, if so, the terms of the penalty.
22        (18) Whether the loan is an ARM.
23    All information entered into the predatory lending
24database must be true and correct to the best of the
25originator's knowledge. The originator shall, prior to
26closing, correct, update, or amend the data as necessary. If



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1any corrections become necessary after the file has been
2accessed by the closing agent or housing counselor, a new file
3must be entered.
4(Source: P.A. 97-891, eff. 1-1-13.)
5    (765 ILCS 77/74)
6    Sec. 74. Counselor; required information. As part of the
7predatory lending database program, a counselor must submit all
8of the following information for inclusion in the predatory
9lending database:
10        (1) The information called for in items (1), (6), (9),
11    (11), (12), (13), (14), (15), (16), (17), and (18) of
12    Section 72.
13        (2) Any information from the borrower that confirms or
14    contradicts the information called for under item (1) of
15    this Section.
16        (3) The name of the counselor and address of the
17    HUD-approved HUD-certified housing counseling agency that
18    employs the counselor.
19        (4) Information pertaining to the borrower's monthly
20    expenses that assists the counselor in determining whether
21    the borrower can afford the loans or loans for which the
22    borrower is applying.
23        (5) A list of the disclosures furnished to the
24    borrower, as seen and reviewed by the counselor, and a
25    comparison of that list to all disclosures required by law.



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1        (6) Whether the borrower provided tax returns to the
2    broker or originator or to the counselor, and, if so, who
3    prepared the tax returns.
4        (7) A statement of the recommendations of the counselor
5    that indicates the counselor's response to each of the
6    following statements:
7            (A) The loan should not be approved due to indicia
8        of fraud.
9            (B) The loan should be approved; no material
10        problems noted.
11            (C) The borrower cannot afford the loan.
12            (D) The borrower does not understand the
13        transaction.
14            (E) The borrower does not understand the costs
15        associated with the transaction.
16            (F) The borrower's monthly income and expenses
17        have been reviewed and disclosed.
18            (G) The rate of the loan is above market rate.
19            (H) The borrower should seek a competitive bid from
20        another broker or originator.
21            (I) There are discrepancies between the borrower's
22        verbal understanding and the originator's completed
23        form.
24            (J) The borrower is precipitously close to not
25        being able to afford the loan.
26            (K) The borrower understands the true cost of debt



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1        consolidation and the need for credit card discipline.
2            (L) The information that the borrower provided the
3        originator has been amended by the originator.
4(Source: P.A. 97-813, eff. 7-13-12.)
5    (765 ILCS 77/76)
6    Sec. 76. Title insurance company or closing agent; required
7information. As part of the predatory lending database pilot
8program, a title insurance company or closing agent must submit
9all of the following information for inclusion in the predatory
10lending database:
11        (1) The borrower's name, address, social security
12    number or taxpayer identification number, date of birth,
13    and income and expense information contained in the
14    mortgage application.
15        (2) The address, permanent index number, and a
16    description of the collateral and information about the
17    loan or loans being applied for and the loan terms,
18    including the amount of the loan, the rate and whether the
19    rate is fixed or adjustable, amortization or loan period
20    terms, and any other material terms.
21        (3) Annual real estate taxes for the property, together
22    with any assessments payable in connection with the
23    property to be secured by the collateral and the proposed
24    monthly principal and interest charge of all loans to be
25    taken by the borrower and secured by the property of the



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1    borrower as well as any required escrows and the amounts
2    paid monthly for those escrows.
3        (4) All itemizations and descriptions set forth in the
4    RESPA settlement statement including items to be
5    disbursed, payable outside closing "POC" items noted on the
6    statement, and a list of payees and the amounts of their
7    checks.
8        (5) The name and license number of the title insurance
9    company or closing agent together with the name of the
10    agent actually conducting the closing.
11        (6) The names and addresses of all originators,
12    brokers, appraisers, sales persons, attorneys, and
13    surveyors that are present at the closing.
14        (7) The date of closing, a detailed list of all notices
15    provided to the borrower at closing and the date of those
16    notices, and all information indicated on the Truth in
17    Lending statement and Good Faith Estimate disclosures.
18(Source: P.A. 94-280, eff. 1-1-06.)
19    (765 ILCS 77/78)
20    Sec. 78. Exemption. Borrowers applying for reverse
21mortgage financing of residential real estate including under
22programs regulated by the Federal Housing Administration (FHA)
23that require HUD-approved HUD-certified counseling are exempt
24from the program and may submit a HUD counseling certificate to
25comply with the program. A certificate of exemption is required



HB5331 Engrossed- 46 -LRB098 17462 HEP 54768 b

1for recording.
2    Mortgages secured by non-owner occupied property,
3commercial property, residential property consisting of more
4than 4 units, and government property are exempt but require a
5certificate of exemption for recording.
6    Mortgages originated by an exempt person or entity are
7exempt but require a certificate of exemption for recording.
8(Source: P.A. 98-463, eff. 8-16-13.)
9    (765 ILCS 77/80)
10    Sec. 80. Predatory Lending Database Program Fund. The
11Predatory Lending Database Program Fund is created as a special
12fund in the State treasury. Subject to appropriation, moneys in
13the Fund shall be appropriated to the Illinois Housing
14Development Authority for the purpose of making grants for
15HUD-approved HUD-certified counseling agencies participating
16in the Predatory Lending Database Program to assist with
17implementation and development of the Predatory Lending
18Database Program.
19(Source: P.A. 95-707, eff. 1-11-08.)
20    Section 99. Effective date. This Act takes effect upon
21becoming law.



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2 Statutes amended in order of appearance
3    205 ILCS 635/1-4
4    205 ILCS 635/2-2
5    205 ILCS 635/2-4from Ch. 17, par. 2322-4
6    205 ILCS 635/3-2from Ch. 17, par. 2323-2
7    765 ILCS 77/70
8    765 ILCS 77/72
9    765 ILCS 77/74
10    765 ILCS 77/76
11    765 ILCS 77/78
12    765 ILCS 77/80