Full Text of HB1738 98th General Assembly
HB1738 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 HB1738 Introduced , by Rep. Tom Cross SYNOPSIS AS INTRODUCED: | | 205 ILCS 635/1-3 | from Ch. 17, par. 2321-3 |
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Amends the Residential Mortgage License Act of 1987. Makes a technical change
in a Section concerning the necessity of obtaining a license.
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| | A BILL FOR |
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| 1 | | AN ACT concerning regulation.
| 2 | | Be it enacted by the People of the State of Illinois, | 3 | | represented in the General Assembly:
| 4 | | Section 5. The Residential Mortgage License Act of 1987 is | 5 | | amended by changing Section 1-3 as follows: | 6 | | (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3) | 7 | | Sec. 1-3. Necessity for License; Scope of Act. | 8 | | (a) No person, partnership, association, corporation or | 9 | | other entity
shall engage in the
the business of brokering, | 10 | | funding, originating, servicing
or purchasing of residential | 11 | | mortgage loans without first obtaining a
license from the | 12 | | Commissioner in accordance with the licensing procedure
| 13 | | provided in this Article I and such regulations as may be | 14 | | promulgated by
the Commissioner. The licensing provisions of | 15 | | this Section shall not apply
to any entity engaged solely in | 16 | | commercial mortgage lending or
to any person, partnership | 17 | | association, corporation or other entity
exempted pursuant to | 18 | | Section 1-4, subsection (d), of this Act or in accordance
with | 19 | | regulations promulgated by the Commissioner hereunder. No | 20 | | provision of this Act shall apply to an exempt person or entity | 21 | | as defined in items (1) and (1.5) of subsection (d) of Section | 22 | | 1-4 of this Act. Notwithstanding anything to the contrary in | 23 | | the preceding sentence, an individual acting as a mortgage loan |
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| 1 | | originator who is not employed by and acting for an entity | 2 | | described in item (1) of subsection (tt) of Section 1-4 of this | 3 | | Act shall be subject to the mortgage loan originator licensing | 4 | | requirements of Article VII of this Act. | 5 | | Effective January 1, 2011, no provision of this Act shall | 6 | | apply to an exempt person or entity as defined in item (1.8) of | 7 | | subsection (d) of Section 1-4 of this Act. Notwithstanding | 8 | | anything to the contrary in the preceding sentence, an | 9 | | individual acting as a mortgage loan originator who is not | 10 | | employed by and acting for an entity described in item (1) of | 11 | | subsection (tt) of Section 1-4 of this Act shall be subject to | 12 | | the mortgage loan originator licensing requirements of Article | 13 | | VII of this Act, and provided that an individual acting as a | 14 | | mortgage loan originator under item (1.8) of subsection (d) of | 15 | | Section 1-4 of this Act shall be further subject to a | 16 | | determination by the U.S. Department of Housing and Urban | 17 | | Development through final rulemaking or other authorized | 18 | | agency determination under the federal Secure and Fair | 19 | | Enforcement for Mortgage Licensing Act of 2008. | 20 | | (b) No person, partnership, association, corporation, or | 21 | | other entity
except a licensee under this Act or an entity | 22 | | exempt from licensing
pursuant to Section 1-4, subsection (d), | 23 | | of this Act shall do any business
under any name or title, or | 24 | | circulate or use any advertising or make any
representation or | 25 | | give any information to any person, which indicates or
| 26 | | reasonably implies activity within the scope
of this Act. |
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| 1 | | (c) The Commissioner may, through the Attorney General, | 2 | | request the circuit
court of either Cook or Sangamon County to | 3 | | issue an injunction to restrain
any person from violating or | 4 | | continuing to violate any of the foregoing
provisions of this | 5 | | Section. | 6 | | (d) When the Commissioner has reasonable cause to believe | 7 | | that any
entity which has not submitted an application for | 8 | | licensure is conducting
any of the activities described in | 9 | | subsection (a) hereof, the Commissioner
shall have the power to | 10 | | examine all books and records of the entity and any
additional | 11 | | documentation necessary in order to determine whether such
| 12 | | entity should become licensed under this Act. | 13 | | (d-1) The Commissioner may issue orders against any person | 14 | | if the Commissioner has reasonable cause to believe that an | 15 | | unsafe, unsound, or unlawful practice has occurred, is | 16 | | occurring, or is about to occur, if any person has violated, is | 17 | | violating, or is about to violate any law, rule, or written | 18 | | agreement with the Commissioner, or for the purposes of | 19 | | administering the provisions of this Act and any rule adopted | 20 | | in accordance with this Act.
| 21 | | (e) Any person, partnership, association, corporation or | 22 | | other entity
who violates any provision of this Section commits | 23 | | a business offense and
shall be fined an amount not to exceed | 24 | | $25,000. | 25 | | (f) Each person, partnership, association, corporation or | 26 | | other entity
conducting activities regulated by this Act shall |
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| 1 | | be issued one license.
Each office, place of business or | 2 | | location at which a residential mortgage
licensee conducts any | 3 | | part of his or her business must
be recorded with the | 4 | | Commissioner pursuant to Section 2-8 of this Act. | 5 | | (g) Licensees under this Act shall solicit, broker, fund, | 6 | | originate,
service and purchase residential mortgage loans | 7 | | only in conformity with the
provisions of this Act and such | 8 | | rules and regulations as may be promulgated
by the | 9 | | Commissioner. | 10 | | (h) This Act applies to all entities doing business in | 11 | | Illinois as
residential mortgage bankers, as defined by "An Act | 12 | | to provide for the
regulation of mortgage bankers", approved | 13 | | September 15, 1977, as amended,
regardless of whether licensed | 14 | | under that or any prior Act. Any existing
residential mortgage | 15 | | lender or residential mortgage broker in Illinois
whether or | 16 | | not previously licensed, must operate in accordance with this | 17 | | Act. | 18 | | (i) This Act is a successor Act to and a continuance of the | 19 | | regulation
of residential mortgage bankers provided in, "An Act | 20 | | to provide for the
regulation of mortgage bankers", approved | 21 | | September 15, 1977, as amended. | 22 | | Entities and persons subject to the predecessor Act shall | 23 | | be subject to
this Act from and after its effective date. | 24 | | (Source: P.A. 96-112, eff. 7-31-09; 96-1216, eff. 1-1-11; | 25 | | 97-143, eff. 7-14-11.) |
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