Illinois General Assembly - Full Text of HB4410
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Full Text of HB4410  102nd General Assembly

HB4410 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB4410

 

Introduced 1/21/2022, by Rep. Lamont J. Robinson, Jr.

 

SYNOPSIS AS INTRODUCED:
 
New Act

    Creates the Real Estate Valuation Task Force Act. Establishes the Real Estate Valuation Task Force. Provides for membership of the Task Force. Provides for Task Force meetings and the selection of a Task Force chair and other officers. Provides that members shall serve without compensation. Provides for administrative and other support of the Task Force. Provides for duties of the Task Force. Provides Task Force reporting requirements. Provides for termination of the Task Force. Repeals the Act on January 1, 2029.


LRB102 20964 RJF 29860 b

 

 

A BILL FOR

 

HB4410LRB102 20964 RJF 29860 b

1    AN ACT concerning State government.
 
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 Real
5Estate Valuation Task Force Act.
 
6    Section 5. Findings. The General Assembly finds and
7declares the following:
8        (1) Two federal agencies, the Federal Home Owners'
9    Loan Corporation, and the Federal Housing Administration
10    played a major role in the development of the modern home
11    mortgage origination industry.
12        (2) Both federal agencies explicitly considered the
13    racial and ethnic make-up of neighborhoods when
14    underwriting loans and valuing the real estate to be used
15    as home loan collateral.
16        (3) Both agencies devalued property or refused to make
17    loans secured by property in communities of color.
18        (4) The harmful consequences of this discrimination
19    remain unresolved.
 
20    Section 10. Real Estate Valuation Task Force.
21    (a) The Real Estate Valuation Task Force is hereby
22established.

 

 

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1    (b) The Task Force shall consist of the following members:
2        (1) 4 members appointed one each by the Speaker of the
3    House of Representatives, the Minority Leader of the House
4    of Representatives, the President of the Senate, and the
5    Minority Leader of the Senate;
6        (2) the Secretary of Financial and Professional
7    Regulation, or a designee;
8        (3) the Director of Commerce and Economic Opportunity,
9    or a designee;
10        (4) the Director of Human Rights, or a designee;
11        (5) the Director of Revenue, or a designee;
12        (6) the Executive Director of the Illinois Housing
13    Development Authority, or a designee;
14        (7) a representative of a home loan mortgage
15    association or corporation, appointed by the Governor;
16        (8) a representative of a savings and loan
17    association, appointed by the Governor;
18        (9) a representative of an agency, organization, or
19    association advocating for fair housing, appointed by the
20    Governor; and
21        (10) a representative of an agency, organization, or
22    association for consumer protection, appointed by the
23    Governor.
24    (c) Initial appointments to the Task Force shall be made
25as soon as practicable after the effective date of this Act.
26The Task Force shall hold its first meeting within a

 

 

HB4410- 3 -LRB102 20964 RJF 29860 b

1reasonable period of time after the completion of the
2appointment of its members, and shall convene regularly to
3carry out its duties and submit the reports required under
4this Act. At its first meeting, the Task Force shall elect its
5chair and any other officers from among its members.
6    (d) Members of the Task Force shall serve without
7compensation.
8    (e) The Department of Financial and Professional
9Regulation shall provide administrative and other support to
10the Task Force. Each agency and entity represented on the Task
11Force shall also share with the Task Force any data of the
12agency or entity necessary for the Task Force to carry out its
13duties under this Act.
 
14    Section 15. Task Force duties.
15    (a) The Task Force shall have the following duties:
16        (1) harmonize to the greatest extent possible the
17    various collateral underwriting standards and guidance of
18    the agencies and entities represented on the Task Force
19    governing residential and commercial real estate
20    valuations, including standards and guidance with respect
21    to appraisals, non-traditional and alternative methods of
22    providing real estate property evaluations, such as
23    automated valuation models, processes, and procedures for
24    managing reconsiderations of value by consumers, and
25    standards and guidance with respect to common collateral

 

 

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1    underwriting challenges, such as energy efficient housing
2    and limited or inactive markets;
3        (2) to the extent that standards or guidance described
4    under paragraph (1) are not harmonized, the Task Force
5    shall issue a report to the General Assembly explaining
6    why harmonization cannot or should not be implemented;
7        (3) establish specific definitions for limited or
8    inactive housing markets in which comparable sales are
9    limited or unavailable over a certain period of time, and
10    establish greater flexibilities and guidance for
11    appraisals and any underwriting processes associated with
12    appraisals conducted in such markets, such as the ability
13    to consider market evidence for similar properties in
14    other geographic areas or utilizing a range of value;
15        (4) aggregate data across Task Force members and
16    conduct a study to determine whether there are racial
17    disparities at both the borrower and community level in
18    the valuation and price of the residential real estate to
19    be used as collateral for mortgage applications processed
20    by Task Force members;
21        (5) identify specific causes of such racial
22    disparities and (i) adopt changes to address such causes;
23    or (ii) if the Task Force determines that additional
24    statutory authority is needed to adopt such changes, issue
25    a report to the General Assembly describing the needed
26    statutory authority; and

 

 

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1        (6) evaluate whether there are any barriers to entry
2    that are disproportionately preventing minorities from
3    entering into the appraisal profession.
4    (b) In carrying out its duties under this Act, the Task
5Force shall consult with the following individuals or
6entities: (i) civil rights advocates; (ii) consumer advocates;
7(iii) real estate appraisers; (iv) small lenders; (v) trade
8groups; (vi) appraisal management companies; (vii) experts on
9alternative valuation models; and (viii) an organization that
10adopts appraisal standards and appraiser qualification
11criteria.
 
12    Section 20. Reports.
13    (a) The Task Force shall submit a report to the Governor
14and the General Assembly not later than the expiration of the
1524-month period beginning on the effective date of this Act
16detailing the findings and any actions taken to further the
17duties of the Task Force as of such time and describing any
18planned efforts and activities.
19    (b) Periodically, after the submission of the initial
20report under subsection (a), the Task Force shall submit
21reports to the Governor and the General Assembly setting forth
22updates of the findings and actions taken to further the
23duties of the Task Force. The reports required under this
24subsection (b) shall continue for the duration of the Task
25Force.
 

 

 

HB4410- 6 -LRB102 20964 RJF 29860 b

1    Section 25. Termination of Task Force; repeal.
2    (a) The Task Force shall terminate upon the expiration of
3the 5-year period beginning on the effective date of this Act.
4    (b) This Act is repealed on January 1, 2029.