Full Text of SB3781 96th General Assembly
SB3781enr 96TH GENERAL ASSEMBLY
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| AN ACT concerning regulation.
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| Be it enacted by the People of the State of Illinois, | 3 |
| represented in the General Assembly:
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| Section 5. The Residential Mortgage License Act of 1987 is | 5 |
| amended by changing Sections 1-3 and 1-4 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 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
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| 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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| 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 |
| (b) No person, partnership, association, corporation, or | 6 |
| other entity
except a licensee under this Act or an entity | 7 |
| exempt from licensing
pursuant to Section 1-4, subsection (d), | 8 |
| of this Act shall do any business
under any name or title, or | 9 |
| circulate or use any advertising or make any
representation or | 10 |
| give any information to any person, which indicates or
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| reasonably implies activity within the scope
of this Act. | 12 |
| (c) The Commissioner may, through the Attorney General, | 13 |
| request the circuit
court of either Cook or Sangamon County to | 14 |
| issue an injunction to restrain
any person from violating or | 15 |
| continuing to violate any of the foregoing
provisions of this | 16 |
| Section. | 17 |
| (d) When the Commissioner has reasonable cause to believe | 18 |
| that any
entity which has not submitted an application for | 19 |
| licensure is conducting
any of the activities described in | 20 |
| subsection (a) hereof, the Commissioner
shall have the power to | 21 |
| examine all books and records of the entity and any
additional | 22 |
| documentation necessary in order to determine whether such
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| entity should become licensed under this Act. | 24 |
| (d-1) The Commissioner may issue orders against any person | 25 |
| if the Commissioner has reasonable cause to believe that an | 26 |
| unsafe, unsound, or unlawful practice has occurred, is |
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| occurring, or is about to occur, if any person has violated, is | 2 |
| violating, or is about to violate any law, rule, or written | 3 |
| agreement with the Commissioner, or for the purposes of | 4 |
| administering the provisions of this Act and any rule adopted | 5 |
| in accordance with this Act.
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| (e) Any person, partnership, association, corporation or | 7 |
| other entity
who violates any provision of this Section commits | 8 |
| a business offense and
shall be fined an amount not to exceed | 9 |
| $25,000. | 10 |
| (f) Each person, partnership, association, corporation or | 11 |
| other entity
conducting activities regulated by this Act shall | 12 |
| be issued one license.
Each office, place of business or | 13 |
| location at which a residential mortgage
licensee conducts any | 14 |
| part of his or her business must
be recorded with the | 15 |
| Commissioner pursuant to Section 2-8 of this Act. | 16 |
| (g) Licensees under this Act shall solicit, broker, fund, | 17 |
| originate,
service and purchase residential mortgage loans | 18 |
| only in conformity with the
provisions of this Act and such | 19 |
| rules and regulations as may be promulgated
by the | 20 |
| Commissioner. | 21 |
| (h) This Act applies to all entities doing business in | 22 |
| Illinois as
residential mortgage bankers, as defined by "An Act | 23 |
| to provide for the
regulation of mortgage bankers", approved | 24 |
| September 15, 1977, as amended,
regardless of whether licensed | 25 |
| under that or any prior Act. Any existing
residential mortgage | 26 |
| lender or residential mortgage broker in Illinois
whether or |
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| not previously licensed, must operate in accordance with this | 2 |
| Act. | 3 |
| (i) This Act is a successor Act to and a continuance of the | 4 |
| regulation
of residential mortgage bankers provided in, "An Act | 5 |
| to provide for the
regulation of mortgage bankers", approved | 6 |
| September 15, 1977, as amended. | 7 |
| Entities and persons subject to the predecessor Act shall | 8 |
| be subject to
this Act from and after its effective date. | 9 |
| (Source: P.A. 96-112, eff. 7-31-09.) | 10 |
| (205 ILCS 635/1-4) | 11 |
| Sec. 1-4. Definitions. | 12 |
| (a) "Residential real property" or "residential real | 13 |
| estate" shall mean any real property located in Illinois, upon | 14 |
| which is constructed or intended to be constructed a dwelling. | 15 |
| (b) "Making a residential mortgage loan" or "funding a | 16 |
| residential mortgage
loan" shall mean for compensation or gain, | 17 |
| either directly or indirectly,
advancing funds or making a | 18 |
| commitment to advance funds to a loan applicant
for a | 19 |
| residential mortgage loan. | 20 |
| (c) "Soliciting, processing, placing, or negotiating a | 21 |
| residential
mortgage loan" shall mean for compensation or gain, | 22 |
| either directly or
indirectly, accepting or offering to accept | 23 |
| an application for a
residential mortgage loan, assisting or | 24 |
| offering to assist in the
processing of an application for a | 25 |
| residential mortgage loan on behalf of a
borrower, or |
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| negotiating or offering to negotiate the terms or conditions
of | 2 |
| a residential mortgage loan with a lender on behalf of a | 3 |
| borrower
including, but not limited to, the submission of | 4 |
| credit packages for the
approval of lenders, the preparation of | 5 |
| residential mortgage loan closing
documents, including a | 6 |
| closing in the name of a broker. | 7 |
| (d) "Exempt person or entity" shall mean the following: | 8 |
| (1) (i) Any banking organization or foreign banking | 9 |
| corporation
licensed by the Illinois Commissioner of Banks | 10 |
| and Real Estate or the
United States Comptroller of the | 11 |
| Currency to transact business in this
State; (ii) any | 12 |
| national bank, federally chartered savings and loan
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| association, federal savings bank, federal credit union; | 14 |
| (iii) any pension
trust, bank trust, or bank trust company; | 15 |
| (iv) any bank, savings and loan
association, savings bank, | 16 |
| or credit union organized under the laws of this
or any | 17 |
| other state; (v) any Illinois Consumer Installment Loan Act | 18 |
| licensee;
(vi) any insurance company authorized to | 19 |
| transact business in this State;
(vii) any entity engaged | 20 |
| solely in commercial mortgage lending; (viii) any
service | 21 |
| corporation of a savings and loan association or savings | 22 |
| bank organized
under the laws of this State or the service | 23 |
| corporation of a federally
chartered savings and loan | 24 |
| association or savings bank having
its principal place of | 25 |
| business in this State, other than a service
corporation | 26 |
| licensed or entitled to reciprocity under the Real Estate
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| License Act of 2000; or (ix) any first tier subsidiary of a
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| bank, the charter of which is issued under the Illinois | 3 |
| Banking Act
by the Illinois Commissioner of Banks and Real | 4 |
| Estate,
or the first tier subsidiary of a bank chartered by | 5 |
| the United States
Comptroller of the Currency and that has | 6 |
| its principal place of business
in this State, provided | 7 |
| that the first tier subsidiary is regularly
examined by the | 8 |
| Illinois Commissioner of Banks and Real Estate
or the | 9 |
| Comptroller of the Currency, or a consumer compliance | 10 |
| examination is
regularly conducted by the Federal Reserve | 11 |
| Board. | 12 |
| (1.5) Any employee of a person or entity mentioned in
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| item (1) of this subsection, when acting for such person or | 14 |
| entity, or any registered mortgage loan originator when | 15 |
| acting for an entity described in subsection (tt) of this | 16 |
| Section. | 17 |
| (2) (Blank) Any person or entity that does not | 18 |
| originate
mortgage loans in the ordinary course of
business | 19 |
| making or acquiring residential mortgage loans
with his or | 20 |
| her or its own funds for his or her or its own investment
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| without intent to
make, acquire, or resell more than 2 | 22 |
| residential mortgage loans in
any one calendar year . | 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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| (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 | 12 |
| mean a person,
partnership, association, corporation, or any | 13 |
| other entity who or which is
licensed pursuant to this Act to | 14 |
| engage in the activities regulated by
this Act. | 15 |
| (f) "Mortgage loan" "residential mortgage loan" or "home
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| mortgage loan" shall mean any loan primarily for personal, | 17 |
| family, or household use that is secured by a mortgage, deed of | 18 |
| trust, or other equivalent consensual security interest on a | 19 |
| dwelling as defined in Section 103(v) of the federal Truth in | 20 |
| Lending Act, or residential real estate upon which is | 21 |
| constructed or intended to be constructed a dwelling. | 22 |
| (g) "Lender" shall mean any person, partnership, | 23 |
| association,
corporation, or any other entity who either lends | 24 |
| or invests money in
residential mortgage loans. | 25 |
| (h) "Ultimate equitable owner" shall mean a person who, | 26 |
| directly
or indirectly, owns or controls an ownership interest |
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| in a corporation,
foreign corporation, alien business | 2 |
| organization, trust, or any other form
of business organization | 3 |
| regardless of whether the person owns or controls
the ownership | 4 |
| interest through one or more persons or one or more proxies,
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| powers of attorney, nominees, corporations, associations, | 6 |
| partnerships,
trusts, joint stock companies, or other entities | 7 |
| or devices, or any
combination thereof. | 8 |
| (i) "Residential mortgage financing transaction" shall | 9 |
| mean the negotiation,
acquisition, sale, or arrangement for or | 10 |
| the offer to negotiate, acquire,
sell, or arrange for, a | 11 |
| residential mortgage loan or residential mortgage
loan | 12 |
| commitment. | 13 |
| (j) "Personal residence address" shall mean a street | 14 |
| address and shall
not include a post office box number. | 15 |
| (k) "Residential mortgage loan commitment" shall mean a | 16 |
| contract for
residential mortgage loan financing. | 17 |
| (l) "Party to a residential mortgage financing | 18 |
| transaction" shall mean a
borrower, lender, or loan broker in a | 19 |
| residential mortgage financing
transaction. | 20 |
| (m) "Payments" shall mean payment of all or any of the | 21 |
| following:
principal, interest and escrow reserves for taxes, | 22 |
| insurance and other related
reserves, and reimbursement for | 23 |
| lender advances. | 24 |
| (n) "Commissioner" shall mean the Commissioner of Banks and | 25 |
| Real Estate, except that , beginning on April 6, 2009 ( the | 26 |
| effective date of Public Act 95-1047) this amendatory Act of the |
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| 95th General Assembly , all references in this Act to the | 2 |
| Commissioner of Banks and Real Estate are deemed, in | 3 |
| appropriate contexts, to be references to the Secretary of | 4 |
| Financial and Professional Regulation, or his or her designee, | 5 |
| including the Director of the Division of Banking of the | 6 |
| Department of Financial and Professional Regulation. | 7 |
| (n-1) "Director" shall mean the Director of the Division of | 8 |
| Banking of the Department of Financial and Professional | 9 |
| Regulation, except that , beginning on July 31, 2009 ( the | 10 |
| effective date of Public Act 96-112) this amendatory Act of the | 11 |
| 96th General Assembly , all references in this Act to the | 12 |
| Director are deemed, in appropriate contexts, to be the | 13 |
| Secretary of Financial and Professional Regulation, or his or | 14 |
| her designee, including the Director of the Division of Banking | 15 |
| of the Department of Financial and Professional Regulation. | 16 |
| (o) "Loan brokering", "brokering", or "brokerage service" | 17 |
| shall mean the act
of helping to obtain from another entity, | 18 |
| for a borrower, a loan secured by
residential real estate | 19 |
| situated in Illinois or assisting a borrower in
obtaining a | 20 |
| loan secured by residential real estate situated in Illinois in
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| return for consideration to be paid by either the borrower or | 22 |
| the lender
including, but not limited to, contracting for the | 23 |
| delivery of residential
mortgage loans to a third party lender | 24 |
| and soliciting, processing, placing,
or negotiating | 25 |
| residential mortgage loans. | 26 |
| (p) "Loan broker" or "broker" shall mean a person, |
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| partnership,
association, corporation, or limited liability | 2 |
| company, other than
those persons, partnerships,
associations, | 3 |
| corporations, or limited liability companies exempted
from | 4 |
| licensing pursuant to Section
1-4, subsection (d), of this Act, | 5 |
| who performs the activities described
in subsections (c) and | 6 |
| (o) of this Section. | 7 |
| (q) "Servicing" shall mean the collection or remittance for | 8 |
| or the
right or obligation to collect or remit for any lender, | 9 |
| noteowner,
noteholder, or for a licensee's own account, of | 10 |
| payments, interests,
principal, and trust items such as hazard | 11 |
| insurance and taxes on a
residential mortgage loan in | 12 |
| accordance with the terms of the residential
mortgage loan; and | 13 |
| includes loan payment follow-up, delinquency loan
follow-up, | 14 |
| loan analysis and any notifications to the borrower that are
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| necessary to enable the borrower to keep the loan current and | 16 |
| in good standing. | 17 |
| (r) "Full service office" shall mean an office, provided by | 18 |
| the licensee and not subleased from the licensee's employees, | 19 |
| and staff in Illinois
reasonably adequate to handle efficiently | 20 |
| communications, questions, and
other matters relating to any | 21 |
| application for, or an existing home mortgage
secured by | 22 |
| residential real estate situated in Illinois
with respect to | 23 |
| which the licensee is brokering, funding originating,
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| purchasing, or servicing. The management and operation of each | 25 |
| full service
office must include observance of good business | 26 |
| practices such as proper signage; adequate,
organized, and |
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| accurate books and records; ample phone lines, hours of
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| business, staff training and supervision, and provision for a | 3 |
| mechanism to
resolve consumer inquiries, complaints, and | 4 |
| problems. The Commissioner
shall issue regulations with regard | 5 |
| to these requirements and shall include
an evaluation of | 6 |
| compliance with this Section in his or her periodic
examination | 7 |
| of each licensee. | 8 |
| (s) "Purchasing" shall mean the purchase of conventional or
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| government-insured mortgage loans secured by residential real | 10 |
| estate
situated in Illinois from either the lender or from the | 11 |
| secondary market. | 12 |
| (t) "Borrower" shall mean the person or persons who seek | 13 |
| the services of
a loan broker, originator, or lender. | 14 |
| (u) "Originating" shall mean the issuing of commitments for | 15 |
| and funding of
residential mortgage loans. | 16 |
| (v) "Loan brokerage agreement" shall mean a written | 17 |
| agreement in which a
broker or loan broker agrees to do either | 18 |
| of the following: | 19 |
| (1) obtain a residential mortgage loan for the borrower | 20 |
| or assist the
borrower in obtaining a residential mortgage | 21 |
| loan; or | 22 |
| (2) consider making a residential mortgage loan to the | 23 |
| borrower. | 24 |
| (w) "Advertisement" shall mean the attempt by publication,
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| dissemination, or circulation to induce, directly or | 26 |
| indirectly,
any person to enter into a residential mortgage |
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| loan agreement or
residential mortgage loan brokerage | 2 |
| agreement relative to a
mortgage secured by residential real | 3 |
| estate situated in Illinois. | 4 |
| (x) "Residential Mortgage Board" shall mean the | 5 |
| Residential Mortgage
Board created in Section 1-5 of this Act. | 6 |
| (y) "Government-insured mortgage loan" shall mean any | 7 |
| mortgage loan made
on the security of residential real estate | 8 |
| insured by the Department of
Housing and Urban Development or | 9 |
| Farmers Home Loan Administration, or
guaranteed by the Veterans | 10 |
| Administration. | 11 |
| (z) "Annual audit" shall mean a certified audit of the | 12 |
| licensee's books and
records and systems of internal control | 13 |
| performed by a certified public
accountant in accordance with | 14 |
| generally accepted accounting principles
and generally | 15 |
| accepted auditing standards. | 16 |
| (aa) "Financial institution" shall mean a savings and loan
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| association, savings bank, credit union, or a bank organized | 18 |
| under the
laws of Illinois or a savings and loan association, | 19 |
| savings bank,
credit union or a bank organized under the laws | 20 |
| of the United States and
headquartered in Illinois. | 21 |
| (bb) "Escrow agent" shall mean a third party, individual or | 22 |
| entity
charged with the fiduciary obligation for holding escrow | 23 |
| funds on a
residential mortgage loan pending final payout of | 24 |
| those funds
in accordance with the terms of the residential | 25 |
| mortgage loan. | 26 |
| (cc) "Net worth" shall have the meaning ascribed thereto in |
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| Section 3-5
of this Act. | 2 |
| (dd) "Affiliate" shall mean: | 3 |
| (1) any entity that directly controls or is controlled | 4 |
| by the licensee
and any other company that is directly | 5 |
| affecting activities regulated by
this Act that is | 6 |
| controlled by the company that controls the licensee; | 7 |
| (2) any entity: | 8 |
| (A) that is controlled, directly or indirectly, by | 9 |
| a trust or otherwise,
by or for the benefit of | 10 |
| shareholders who beneficially or otherwise
control, | 11 |
| directly or indirectly, by trust or otherwise, the | 12 |
| licensee or any
company that controls the licensee; or | 13 |
| (B) a majority of the directors or trustees of | 14 |
| which constitute a
majority of the persons holding any | 15 |
| such office with the licensee or any
company that | 16 |
| controls the licensee; | 17 |
| (3) any company, including a real estate investment | 18 |
| trust, that is
sponsored and advised on a contractual basis | 19 |
| by the licensee or any
subsidiary or affiliate of the | 20 |
| licensee. | 21 |
| The Commissioner may define by rule and regulation any | 22 |
| terms used
in this Act for the efficient and clear | 23 |
| administration of this Act. | 24 |
| (ee) "First tier subsidiary" shall be defined by regulation
| 25 |
| incorporating the comparable definitions used by the Office of | 26 |
| the
Comptroller of the Currency and the Illinois Commissioner |
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| of Banks
and Real Estate. | 2 |
| (ff) "Gross delinquency rate" means the quotient | 3 |
| determined by dividing
(1) the sum of (i) the number of | 4 |
| government-insured residential mortgage loans
funded or | 5 |
| purchased by a licensee in the preceding calendar year that are
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| delinquent and (ii) the number of conventional residential | 7 |
| mortgage loans
funded or purchased by the licensee in the | 8 |
| preceding calendar year that are
delinquent by (2) the sum of | 9 |
| (i) the number of government-insured residential
mortgage | 10 |
| loans funded or purchased by the licensee in the preceding | 11 |
| calendar
year and (ii) the number of conventional residential | 12 |
| mortgage loans funded or
purchased by the licensee in the | 13 |
| preceding calendar year. | 14 |
| (gg) "Delinquency rate factor" means the factor set by rule | 15 |
| of the
Commissioner that is multiplied by the average gross | 16 |
| delinquency rate of
licensees, determined annually for the | 17 |
| immediately preceding calendar year, for
the purpose of | 18 |
| determining which licensees shall be examined by the
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| Commissioner pursuant to subsection (b) of Section 4-8 of this | 20 |
| Act. | 21 |
| (hh) "Loan originator" means any natural person who, for | 22 |
| compensation or in
the expectation of compensation, either | 23 |
| directly or indirectly makes, offers to
make, solicits, places, | 24 |
| or negotiates a residential mortgage loan. This definition | 25 |
| applies only to Section 7-1 of this Act. | 26 |
| (ii) "Confidential supervisory information" means any |
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| report of examination, visitation, or investigation prepared | 2 |
| by the Commissioner under this Act, any report of examination | 3 |
| visitation, or investigation prepared by the state regulatory | 4 |
| authority of another state that examines a licensee, any | 5 |
| document or record prepared or obtained in connection with or | 6 |
| relating to any examination, visitation, or investigation, and | 7 |
| any record prepared or obtained by the Commissioner to the | 8 |
| extent that the record summarizes or contains information | 9 |
| derived from any report, document, or record described in this | 10 |
| subsection. "Confidential supervisory information" does not | 11 |
| include any information or record routinely prepared by a | 12 |
| licensee and maintained in the ordinary course of business or | 13 |
| any information or record that is required to be made publicly | 14 |
| available pursuant to State or federal law or rule.
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| (jj) "Mortgage loan originator" means an individual who for | 16 |
| compensation or gain or in the expectation of compensation or | 17 |
| gain: | 18 |
| (i) takes a residential mortgage loan application; or | 19 |
| (ii) offers or negotiates terms of a residential | 20 |
| mortgage loan. | 21 |
| "Mortgage loan originator" does not include an individual | 22 |
| engaged solely as a loan processor or underwriter except as | 23 |
| otherwise provided in subsection (d) of Section 7-1A of this | 24 |
| Act. | 25 |
| "Mortgage loan originator" does not include a person or | 26 |
| entity that only performs real estate brokerage activities and |
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| is licensed in accordance with the Real Estate License Act of | 2 |
| 2000, unless the person or entity is compensated by a lender, a | 3 |
| mortgage broker, or other mortgage loan originator, or by any | 4 |
| agent of that lender, mortgage broker, or other mortgage loan | 5 |
| originator. | 6 |
| "Mortgage loan originator" does not include a person or | 7 |
| entity solely involved in extensions of credit relating to | 8 |
| timeshare plans, as that term is defined in Section 101(53D) of | 9 |
| Title 11, United States Code. | 10 |
| (kk) "Depository institution" has the same meaning as in | 11 |
| Section 3 of the Federal Deposit Insurance Act, and includes | 12 |
| any credit union. | 13 |
| (ll) "Dwelling" means a residential structure or mobile | 14 |
| home which contains one to 4 family housing units, or | 15 |
| individual units of condominiums or cooperatives. | 16 |
| (mm) "Immediate family member" means a spouse, child, | 17 |
| sibling, parent, grandparent, or grandchild, and includes | 18 |
| step-parents, step-children, step-siblings, or adoptive | 19 |
| relationships. | 20 |
| (nn) "Individual" means a natural person. | 21 |
| (oo) "Loan processor or underwriter" means an individual | 22 |
| who performs clerical or support duties as an employee at the | 23 |
| direction of and subject to the supervision and instruction of | 24 |
| a person licensed, or exempt from licensing, under this Act. | 25 |
| "Clerical or support duties" includes subsequent to the receipt | 26 |
| of an application: |
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| (i) the receipt, collection, distribution, and | 2 |
| analysis of information common for the processing or | 3 |
| underwriting of a residential mortgage loan; and | 4 |
| (ii) communicating with a consumer to obtain the | 5 |
| information necessary for the processing or underwriting | 6 |
| of a loan, to the extent that the communication does not | 7 |
| include offering or negotiating loan rates or terms, or | 8 |
| counseling consumers about residential mortgage loan rates | 9 |
| or terms. An individual engaging solely in loan processor | 10 |
| or underwriter activities shall not represent to the | 11 |
| public, through advertising or other means of | 12 |
| communicating or providing information, including the use | 13 |
| of business cards, stationery, brochures, signs, rate | 14 |
| lists, or other promotional items, that the individual can | 15 |
| or will perform any of the activities of a mortgage loan | 16 |
| originator. | 17 |
| (pp) "Nationwide Mortgage Licensing System and Registry" | 18 |
| means a mortgage licensing system developed and maintained by | 19 |
| the Conference of State Bank Supervisors and the American | 20 |
| Association of Residential Mortgage Regulators for the | 21 |
| licensing and registration of licensed mortgage loan | 22 |
| originators. | 23 |
| (qq) "Nontraditional mortgage product" means any mortgage | 24 |
| product other than a 30-year fixed rate mortgage. | 25 |
| (rr) "Person" means a natural person, corporation, | 26 |
| company, limited liability company, partnership, or |
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| association. | 2 |
| (ss) "Real estate brokerage activity" means any activity | 3 |
| that involves offering or providing real estate brokerage | 4 |
| services to the public, including: | 5 |
| (1) acting as a real estate agent or real estate broker | 6 |
| for a buyer, seller, lessor, or lessee of real property; | 7 |
| (2) bringing together parties interested in the sale, | 8 |
| purchase, lease, rental, or exchange of real property; | 9 |
| (3) negotiating, on behalf of any party, any portion of | 10 |
| a contract relating to the sale, purchase, lease, rental, | 11 |
| or exchange of real property, other than in connection with | 12 |
| providing financing with respect to any such transaction; | 13 |
| (4) engaging in any activity for which a person engaged | 14 |
| in the activity is required to be registered or licensed as | 15 |
| a real estate agent or real estate broker under any | 16 |
| applicable law; or | 17 |
| (5) offering to engage in any activity, or act in any | 18 |
| capacity, described in this subsection (ss). | 19 |
| (tt) "Registered mortgage loan originator" means any | 20 |
| individual that: | 21 |
| (1) meets the definition of mortgage loan originator | 22 |
| and is an employee of: | 23 |
| (A) a depository institution; | 24 |
| (B) a subsidiary that is: | 25 |
| (i) owned and controlled by a depository | 26 |
| institution; and |
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| (ii) regulated by a federal banking agency; or | 2 |
| (C) an institution regulated by the Farm Credit | 3 |
| Administration; and | 4 |
| (2) is registered with, and maintains a unique | 5 |
| identifier through, the Nationwide Mortgage Licensing | 6 |
| System and Registry. | 7 |
| (uu) "Unique identifier" means a number or other identifier | 8 |
| assigned by protocols established by the Nationwide Mortgage | 9 |
| Licensing System and Registry. | 10 |
| (vv) "Residential mortgage license" means a license issued | 11 |
| pursuant to Section 1-3, 2-2, or 2-6 of this Act. | 12 |
| (ww) "Mortgage loan originator license" means a license | 13 |
| issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act. | 14 |
| (xx) (jj) "Secretary" means the Secretary of the Department | 15 |
| of Financial and Professional Regulation, or a person | 16 |
| authorized by the Secretary or by this Act to act in the | 17 |
| Secretary's stead. | 18 |
| (Source: P.A. 95-1047, eff. 4-6-09; 96-112, eff. 7-31-09; | 19 |
| revised 8-20-09.)
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