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

HB4410eng 102ND GENERAL ASSEMBLY

  
  
  

 


 
HB4410 EngrossedLRB102 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 statewide banking
15    association representing banks of all asset sizes,
16    appointed by the Governor;
17        (8) a representative of a statewide banking
18    association exclusively representing banks with assets
19    below $20,000,000,000, appointed by the Governor;
20        (9) a representative of a statewide association
21    representing credit unions, appointed by the Governor;
22        (10) a representative of an agency, organization, or
23    association advocating for fair housing, appointed by the
24    Governor; and
25        (11) a representative of an agency, organization, or
26    association for consumer protection, appointed by the

 

 

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

 

 

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

 

 

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1    or (ii) if the Task Force determines that additional
2    statutory authority is needed to adopt such changes, issue
3    a report to the General Assembly describing the needed
4    statutory authority; and
5        (6) evaluate whether there are any barriers to entry
6    that are disproportionately preventing minorities from
7    entering into the appraisal profession.
8    (b) In carrying out its duties under this Act, the Task
9Force shall consult with the following individuals or
10entities: (i) civil rights advocates; (ii) consumer advocates;
11(iii) real estate appraisers; (iv) small lenders; (v) trade
12groups; (vi) appraisal management companies; (vii) experts on
13alternative valuation models; and (viii) an organization that
14adopts appraisal standards and appraiser qualification
15criteria.
 
16    Section 20. Reports.
17    (a) The Task Force shall submit a report to the Governor
18and the General Assembly not later than the expiration of the
1924-month period beginning on the effective date of this Act
20detailing the findings and any actions taken to further the
21duties of the Task Force as of such time and describing any
22planned efforts and activities.
23    (b) Periodically, after the submission of the initial
24report under subsection (a), the Task Force shall submit
25reports to the Governor and the General Assembly setting forth

 

 

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1updates of the findings and actions taken to further the
2duties of the Task Force. The reports required under this
3subsection (b) shall continue for the duration of the Task
4Force.
 
5    Section 25. Termination of Task Force; repeal.
6    (a) The Task Force shall terminate upon the expiration of
7the 5-year period beginning on the effective date of this Act.
8    (b) This Act is repealed on January 1, 2029.