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Public Act 100-0604 | ||||
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AN ACT concerning regulation.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Real Estate Appraiser Licensing Act of 2002 | ||||
is amended by changing Sections 1-10, 5-10, 5-15, 5-20, 5-22, | ||||
5-25, 5-55, 20-5, and 20-10 and by adding Section 5-7 as | ||||
follows:
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(225 ILCS 458/1-10)
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(Section scheduled to be repealed on January 1, 2022)
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Sec. 1-10. Definitions. As used in this Act, unless the | ||||
context
otherwise requires:
| ||||
"Accredited college or university, junior college, or | ||||
community college" means a college or university, junior | ||||
college, or community college that is approved or accredited by | ||||
the Board of Higher Education, a regional or national | ||||
accreditation association, or by an accrediting agency that is | ||||
recognized by the U.S. Secretary of Education.
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"Address of record" means the designated address recorded | ||||
by the Department in the applicant's or licensee's application | ||||
file or license file as maintained by the Department's | ||||
licensure maintenance unit. It is the duty of the applicant or | ||||
licensee to inform the Department of any change of address and | ||||
those changes must be made either through the Department's |
website or by contacting the Department. | ||
"Applicant" means person who applies to the Department
for | ||
a license under this Act.
| ||
"Appraisal" means
(noun) the act or process of developing | ||
an opinion
of value; an
opinion of value (adjective) of or | ||
pertaining to appraising
and related functions, such as | ||
appraisal practice or appraisal services. | ||
"Appraisal assignment" means a valuation service provided | ||
as a consequence of an agreement between an appraiser and a | ||
client. | ||
"Appraisal consulting" means the act or process of | ||
developing an analysis, recommendation, or opinion to solve a | ||
problem, where an opinion of value is a component of the | ||
analysis leading to the assignment results. | ||
"Appraisal firm" means an appraisal entity that is 100% | ||
owned and controlled by a person or persons licensed in | ||
Illinois as a certified general real estate appraiser or a | ||
certified residential real estate appraiser. "Appraisal firm" | ||
does not include an appraisal management company. | ||
"Appraisal management company" means any corporation, | ||
limited liability company, partnership, sole proprietorship, | ||
subsidiary, unit, or other business entity that directly or | ||
indirectly performs the following appraisal management | ||
services : (1) provides appraisal management services to | ||
creditors or secondary mortgage market participants; (2) | ||
provides appraisal management services in connection with |
valuing the consumer's principal dwelling as security for a | ||
consumer credit transaction (including consumer credit | ||
transactions incorporated into securitizations); (3) within a | ||
given year, oversees an appraiser panel of any size of | ||
State-certified appraisers in Illinois; and (4) any appraisal | ||
management company that, within a given year, oversees an | ||
appraiser panel of 16 or more State-certified appraisers in | ||
Illinois or 25 or more State-certified or State-licensed | ||
appraisers in 2 or more jurisdictions shall be subject to the | ||
appraisal management company national registry fee in addition | ||
to the appraiser panel fee. "Appraisal management company" | ||
includes a hybrid entity administers networks of independent | ||
contractors or employee appraisers to perform real estate | ||
appraisal assignments for clients; (2) receives requests for | ||
real estate appraisal services from clients and, for a fee paid | ||
by the client, enters into an agreement with one or more | ||
independent appraisers to perform the real estate appraisal | ||
services contained in the request; or (3) otherwise serves as a | ||
third-party broker of appraisal management services between | ||
clients and appraisers. "Appraisal management company" does | ||
not include an appraisal firm . | ||
"Appraisal practice" means valuation services performed by | ||
an individual acting as an appraiser, including, but not | ||
limited to, appraisal, appraisal review, or appraisal | ||
consulting.
| ||
"Appraisal report" means any communication, written or |
oral, of an appraisal or appraisal review that is transmitted | ||
to a client upon completion of an assignment.
| ||
"Appraisal review" means the act or process of developing | ||
and communicating an opinion about the quality of another | ||
appraiser's work that was performed as part of an appraisal, | ||
appraisal review, or appraisal assignment.
| ||
"Appraisal Subcommittee" means the Appraisal Subcommittee | ||
of the Federal
Financial Institutions
Examination Council as | ||
established by Title XI.
| ||
"Appraiser" means a person who performs
real estate or real | ||
property
appraisals.
| ||
"AQB" means the Appraisal Qualifications Board of the | ||
Appraisal Foundation.
| ||
"Associate real estate trainee appraiser" means an | ||
entry-level appraiser who holds
a license of this | ||
classification under this Act with restrictions as to the scope | ||
of practice
in
accordance with this Act.
| ||
"Board" means the Real Estate Appraisal Administration and | ||
Disciplinary Board.
| ||
"Broker price opinion" means an estimate or analysis of the | ||
probable selling price of a particular interest in real estate, | ||
which may provide a varying level of detail about the | ||
property's condition, market, and neighborhood and information | ||
on comparable sales. The activities of a real estate broker or | ||
managing broker engaging in the ordinary course of business as | ||
a broker, as defined in this Section, shall not be considered a |
broker price opinion if no compensation is paid to the broker | ||
or managing broker, other than compensation based upon the sale | ||
or rental of real estate. | ||
"Classroom hour" means 50 minutes of instruction out of | ||
each 60 minute
segment of coursework.
| ||
"Client" means the party or parties who engage an appraiser | ||
by employment or contract in a specific appraisal assignment.
| ||
"Comparative market analysis" is an analysis or opinion | ||
regarding pricing, marketing, or financial aspects relating to | ||
a specified interest or interests in real estate that may be | ||
based upon an analysis of comparative market data, the | ||
expertise of the real estate broker or managing broker, and | ||
such other factors as the broker or managing broker may deem | ||
appropriate in developing or preparing such analysis or | ||
opinion. The activities of a real estate broker or managing | ||
broker engaging in the ordinary course of business as a broker, | ||
as defined in this Section, shall not be considered a | ||
comparative market analysis if no compensation is paid to the | ||
broker or managing broker, other than compensation based upon | ||
the sale or rental of real estate. | ||
"Coordinator" means the Coordinator of Real Estate | ||
Appraisal of the Division of Professional Regulation of the | ||
Department of Financial and Professional Regulation.
| ||
"Department" means the Department of Financial and | ||
Professional Regulation.
| ||
"Federal financial institutions regulatory agencies" means |
the Board of
Governors of the Federal Reserve
System, the | ||
Federal Deposit Insurance Corporation, the Office of the
| ||
Comptroller of the Currency, the
Consumer Financial Protection | ||
Bureau, and the National Credit Union Administration.
| ||
"Federally related transaction" means any real | ||
estate-related financial
transaction in which a federal
| ||
financial institutions regulatory agency
engages in, contracts | ||
for, or
regulates and requires the services
of an appraiser.
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"Financial institution" means any bank, savings bank, | ||
savings and loan
association, credit union,
mortgage broker, | ||
mortgage banker, licensee under the Consumer Installment Loan
| ||
Act or the Sales
Finance Agency Act, or a corporate fiduciary, | ||
subsidiary, affiliate, parent
company, or holding company
of | ||
any such licensee, or any institution involved in real estate | ||
financing that
is regulated by state or
federal law.
| ||
"Multi-state licensing system" means a web-based platform | ||
that allows an applicant to submit his or her application or | ||
license renewal application to the Department online. | ||
"Person" means an individual, entity, sole proprietorship, | ||
corporation, limited liability company, partnership, and joint | ||
venture, foreign or domestic, except that when the context | ||
otherwise requires, the term may refer to more than one | ||
individual or other described entity. | ||
"Real estate" means an identified parcel or tract of land, | ||
including any
improvements.
| ||
"Real estate related financial transaction" means any |
transaction involving:
| ||
(1) the sale, lease, purchase, investment in, or | ||
exchange of real
property,
including interests
in property | ||
or the financing thereof;
| ||
(2) the refinancing of real property or interests in | ||
real property; and
| ||
(3) the use of real property or interest in property as | ||
security for a
loan or
investment,
including mortgage | ||
backed securities.
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"Real property" means the interests, benefits, and rights | ||
inherent in the
ownership of real estate.
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"Secretary" means the Secretary of Financial and | ||
Professional Regulation.
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"State certified general real estate
appraiser" means an | ||
appraiser who holds a
license of this classification under this | ||
Act
and such classification applies to
the appraisal of all | ||
types of real property without restrictions as to
the scope of | ||
practice.
| ||
"State certified residential real estate
appraiser" means | ||
an appraiser who
holds a
license of this classification
under | ||
this Act
and such classification applies to
the appraisal of
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one to 4 units of
residential real property without regard to | ||
transaction value or complexity,
but with restrictions as to | ||
the
scope of practice
in a federally related transaction in | ||
accordance with Title
XI, the provisions of USPAP,
criteria | ||
established by the AQB, and further defined by rule.
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"Supervising appraiser" means either (i) an appraiser who | ||
holds a valid license under this Act as either a State | ||
certified general real estate appraiser or a State certified | ||
residential real estate appraiser, who co-signs an appraisal | ||
report for an associate real estate trainee appraiser or (ii) a | ||
State certified general real estate appraiser who holds a valid | ||
license under this Act who co-signs an appraisal report for a | ||
State certified residential real estate appraiser on | ||
properties other than one to 4 units of residential real | ||
property without regard to transaction value or complexity.
| ||
"Title XI" means Title XI of the federal Financial | ||
Institutions Reform,
Recovery and
Enforcement Act of 1989.
| ||
"USPAP" means the Uniform Standards of Professional | ||
Appraisal Practice as
promulgated by the
Appraisal Standards | ||
Board pursuant to Title XI and by rule.
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"Valuation services" means services pertaining to aspects | ||
of property value. | ||
(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15 .)
| ||
(225 ILCS 458/5-7 new) | ||
Sec. 5-7. Multi-state licensing system. The Secretary may | ||
require participation in a third-party, multi-state licensing | ||
system for licensing under this Act. The multi-state licensing | ||
system may share regulatory information and maintain records in | ||
compliance with the provisions of this Act. The multi-state | ||
licensing system may charge an applicant an administration fee.
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(225 ILCS 458/5-10)
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(Section scheduled to be repealed on January 1, 2022)
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Sec. 5-10. Application for State
certified general real | ||
estate appraiser.
| ||
(a) Every person who
desires to obtain a State certified | ||
general real estate appraiser license
shall:
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(1) apply to the Department
on forms provided by the | ||
Department , or through a multi-state licensing system as | ||
designated by the Secretary,
accompanied by the required | ||
fee;
| ||
(2) be at least 18 years of age;
| ||
(3) (blank);
| ||
(4) personally take and pass an examination authorized | ||
by the Department
and endorsed
by the AQB;
| ||
(5) prior to taking the examination, provide evidence | ||
to the Department, or through a multi-state licensing | ||
system as designated by the Secretary, in Modular Course | ||
format, with each module conforming to the Required Core | ||
Curriculum established and adopted by the AQB,
that he or | ||
she
has successfully completed the prerequisite
classroom | ||
hours of instruction in appraising as established by the | ||
AQB and by
rule; and
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(6) prior to taking the examination, provide evidence
| ||
to the Department , or through a multi-state licensing | ||
system as designated by the Secretary,
that he or she has |
successfully completed the prerequisite
experience and | ||
educational requirements in appraising as established by | ||
AQB and by rule.
| ||
(b) Applicants must provide evidence to the Department , or | ||
through a multi-state licensing system as designated by the | ||
Secretary, of holding a Bachelor's degree or higher from an | ||
accredited college or university. | ||
(Source: P.A. 98-1109, eff. 1-1-15 .)
| ||
(225 ILCS 458/5-15)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-15. Application for State certified residential | ||
real estate
appraiser. Every person who
desires to obtain a | ||
State certified residential real estate appraiser license
| ||
shall:
| ||
(1) apply to the Department
on forms provided by the | ||
Department , or through a multi-state licensing system as | ||
designated by the Secretary,
accompanied by the required | ||
fee;
| ||
(2) be at least 18 years of age;
| ||
(3) (blank);
| ||
(4) personally take and pass an examination authorized | ||
by the Department
and endorsed
by
the AQB;
| ||
(5) prior to taking the examination, provide evidence
| ||
to the Department, or through a multi-state licensing | ||
system as designated by the Secretary, in Modular Course |
format, with each module conforming to the Required Core | ||
Curriculum established and adopted by the AQB,
that he or | ||
she has successfully completed the prerequisite
classroom | ||
hours of instruction in appraising as established by the | ||
AQB and by
rule; and
| ||
(6) prior to taking the examination, provide evidence
| ||
to the Department , or through a multi-state licensing | ||
system as designated by the Secretary,
that he or she has | ||
successfully completed the prerequisite
experience and | ||
educational requirements as established by AQB and by rule.
| ||
(Source: P.A. 100-201, eff. 8-18-17.)
| ||
(225 ILCS 458/5-20)
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(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-20. Application for associate real estate trainee
| ||
appraiser. Every person who desires to obtain an associate real | ||
estate trainee appraiser
license shall:
| ||
(1) apply to the Department
on forms provided by the | ||
Department , or through a multi-state licensing system as | ||
designated by the Secretary,
accompanied by the required
| ||
fee;
| ||
(2) be at least 18 years of age;
| ||
(3) provide evidence of having attained a high school | ||
diploma or completed
an
equivalent course of
study as | ||
determined by an examination conducted
or accepted
by the | ||
Illinois State Board of
Education;
|
(4) personally take and pass an examination authorized | ||
by the Department; and
| ||
(5) prior to taking the examination, provide evidence
| ||
to the Department , or through a multi-state licensing | ||
system as designated by the Secretary,
that he or she has | ||
successfully
completed
the prerequisite qualifying and any | ||
conditional education requirements as established by
rule.
| ||
(Source: P.A. 98-1109, eff. 1-1-15 .)
| ||
(225 ILCS 458/5-22) | ||
(Section scheduled to be repealed on January 1, 2022) | ||
Sec. 5-22. Criminal history records check. | ||
(a) Each applicant for licensure by examination or | ||
restoration shall have his or her fingerprints submitted to the | ||
Department of State Police in an electronic format that | ||
complies with the form and manner for requesting and furnishing | ||
criminal history record information as prescribed by the | ||
Department of State Police. These fingerprints shall be checked | ||
against the Department of State Police and Federal Bureau of | ||
Investigation criminal history record databases now and | ||
hereafter filed. The Department of State Police shall charge | ||
applicants a fee for conducting the criminal history records | ||
check, which shall be deposited into the State Police Services | ||
Fund and shall not exceed the actual cost of the records check. | ||
The Department of State Police shall
furnish, pursuant to | ||
positive identification, records of Illinois convictions to |
the Department. The Department may require applicants to pay a | ||
separate fingerprinting fee, either to the Department or to a | ||
vendor. The Department may adopt any rules necessary to | ||
implement this Section.
| ||
(b) The Secretary may designate a multi-state licensing | ||
system to perform the functions described in subsection (a). | ||
The Department may require applicants to pay a separate | ||
fingerprinting fee, either to the Department or to the | ||
multi-state licensing system. The Department may adopt any | ||
rules necessary to implement this subsection. | ||
(Source: P.A. 98-1109, eff. 1-1-15 .)
| ||
(225 ILCS 458/5-25)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-25. Renewal of license.
| ||
(a) The expiration date and renewal period
for a State | ||
certified general
real estate appraiser license
or a State | ||
certified residential
real estate appraiser license issued | ||
under
this Act shall be set by rule.
Except as otherwise | ||
provided in subsections (b) and (f) of this Section, the
holder | ||
of a license may renew
the license within 90 days preceding the | ||
expiration date by:
| ||
(1) completing and submitting to the Department , or | ||
through a multi-state licensing system as designated by the | ||
Secretary,
a renewal application form as
provided by
the | ||
Department;
|
(2) paying the required fees; and
| ||
(3) providing evidence to the Department, or through a | ||
multi-state licensing system as designated by the | ||
Secretary, of successful completion of the continuing
| ||
education requirements through courses approved by the | ||
Department
from
education providers licensed by the | ||
Department, as established by the AQB
and by rule.
| ||
(b) A State certified general real estate appraiser
or | ||
State certified
residential real estate
appraiser whose | ||
license under this Act has expired may renew
the license for a | ||
period of
2 years following the expiration date by complying | ||
with the requirements of
paragraphs (1), (2),
and (3) of | ||
subsection (a)
of this Section and paying any late penalties | ||
established by rule.
| ||
(c) (Blank).
| ||
(d) The expiration date and renewal period for an associate | ||
real estate
trainee appraiser license issued under this
Act | ||
shall be set by rule. Except as otherwise provided in | ||
subsections (e) and
(f) of this Section, the holder
of an | ||
associate real estate appraiser license may renew the license | ||
within 90
days preceding the expiration date by:
| ||
(1) completing and submitting to the Department , or | ||
through a multi-state licensing system as designated by the | ||
Secretary,
a renewal application form as
provided by the | ||
Department;
| ||
(2) paying the required fees; and
|
(3) providing evidence to the Department, or through a | ||
multi-state licensing system as designated by the | ||
Secretary, of successful completion of the continuing
| ||
education requirements through
courses approved by the | ||
Department
from education providers approved
by the | ||
Department, as established by rule.
| ||
(e) Any associate real estate appraiser trainee whose | ||
license under this Act has
expired may
renew the license for a | ||
period of 2 years following the expiration date
by complying | ||
with the requirements of paragraphs
(1), (2), and (3) of | ||
subsection (d) of this Section and paying any late
penalties
as | ||
established by rule. An associate real estate trainee appraiser | ||
license may not be renewed more than 2 times.
| ||
(f) Notwithstanding subsections (c) and (e), an
appraiser | ||
whose license
under this Act has expired may renew or convert | ||
the license without
paying any lapsed renewal
fees or late | ||
penalties if the license expired while the appraiser was:
| ||
(1) on active duty with the United States Armed | ||
Services;
| ||
(2) serving as the Coordinator
of Real Estate Appraisal | ||
or an employee of
the Department
who was required to | ||
surrender his or her license during the term of
employment.
| ||
Application for renewal must be made within 2 years | ||
following
the termination of the military service or related | ||
education, training, or
employment. The
licensee shall furnish | ||
the Department
with an affidavit that he or she was so engaged.
|
(g) The Department
shall provide reasonable care and due | ||
diligence to ensure that each
licensee under this Act
is | ||
provided with a renewal application at least 90 days prior to | ||
the expiration
date, but
each licensee is responsible to
timely | ||
renew or convert his or her license prior to its expiration | ||
date.
| ||
(Source: P.A. 96-844, eff. 12-23-09 .)
| ||
(225 ILCS 458/5-55)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 5-55. Fees. | ||
(a) The Department
shall establish rules for fees to be | ||
paid by applicants and licensees to
cover the reasonable costs
| ||
of the Department
in administering and enforcing the provisions | ||
of this Act. The Department, with the advice of the Board,
may
| ||
also establish rules for
general fees to cover the reasonable | ||
expenses of carrying out other functions
and responsibilities | ||
under
this Act.
| ||
(b) The administration fee charged by the multi-state | ||
licensing system shall be paid directly to the multi-state | ||
licensing system. | ||
(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
| ||
(225 ILCS 458/20-5)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 20-5. Education providers.
|
(a) Beginning July 1, 2002, only education providers | ||
licensed or otherwise approved by the Department
may
provide | ||
the qualifying and continuing education courses required for | ||
licensure
under this Act.
| ||
(b) A person or entity seeking to be licensed as an | ||
education
provider under this Act
shall provide satisfactory | ||
evidence of the following:
| ||
(1) a sound financial base for establishing, | ||
promoting, and delivering the
necessary
courses;
| ||
(2) a sufficient number of qualified instructors;
| ||
(3) adequate support personnel to assist with | ||
administrative matters and
technical
assistance;
| ||
(4) a written policy dealing with procedures for | ||
management of grievances
and fee refunds;
| ||
(5) a qualified administrator, who is responsible for | ||
the
administration of the
education provider, courses, and | ||
the actions of the instructors; and
| ||
(6) any other requirements as provided by rule.
| ||
(c) All applicants for an education provider's license | ||
shall make initial
application to the Department
on forms | ||
provided by the Department , or through a multi-state licensing | ||
system as designated by the Secretary,
and pay the appropriate | ||
fee as
provided by rule. The term, expiration date, and renewal | ||
of an education
provider's license shall be established by | ||
rule.
| ||
(d) An education provider shall provide each successful |
course participant
with a certificate of
completion signed by | ||
the school administrator. The format and content of the
| ||
certificate shall be specified by rule.
| ||
(e) All education providers shall provide to the Department
| ||
a monthly roster of all
successful course
participants as | ||
provided by rule.
| ||
(Source: P.A. 98-1109, eff. 1-1-15 .)
| ||
(225 ILCS 458/20-10)
| ||
(Section scheduled to be repealed on January 1, 2022)
| ||
Sec. 20-10. Course approval.
| ||
(a) Only courses offered by licensed education providers | ||
and approved
by the Department, courses approved by the AQB, or | ||
courses approved by jurisdictions regulated by the Appraisal | ||
Subcommittee
shall be used to meet the requirements of this Act | ||
and rules.
| ||
(b) An education provider licensed under this Act may | ||
submit courses to the Department , or through a multi-state | ||
licensing system as designated by the Secretary,
for approval.
| ||
The criteria, requirements, and fees for courses shall be | ||
established
by rule in accordance with
this Act and the | ||
criteria established by the AQB.
| ||
(c) For each course approved, the Department
shall issue a | ||
license to the education
provider. The term, expiration date, | ||
and renewal of a course approval shall
be
established by rule.
| ||
(d) An education provider must use an instructor for each |
course approved by the Department who (i) holds a valid real | ||
estate appraisal license in good standing as a State certified | ||
general real estate appraiser or a State certified residential | ||
real estate appraiser in Illinois or any other jurisdiction | ||
monitored by the Appraisal Subcommittee, (ii) holds a valid | ||
teaching certificate issued by the State of Illinois, (iii) is | ||
a faculty member in good standing with an accredited college or | ||
university or community college, or (iv) is an approved | ||
appraisal instructor from an appraisal organization that is a | ||
member of the Appraisal Foundation. | ||
(Source: P.A. 98-1109, eff. 1-1-15 .)
| ||
Section 10. The Appraisal Management Company Registration | ||
Act is amended by changing Sections 5, 10, 15, 20, 25, 35, 40, | ||
55, 65, and 160 and by adding Sections 17, 32, 37, 43, 47, 67, | ||
68, 163, and 177 as follows: | ||
(225 ILCS 459/5)
| ||
Sec. 5. Findings. The General Assembly finds that: It is | ||
the intent of the General Assembly that this Act provide for | ||
the regulation of those persons or entities engaged as | ||
appraisal management companies for the protection of the public | ||
and for the maintenance of high standards of professional | ||
conduct by those registered as appraisal management companies | ||
in one to four family real estate transactions and to ensure | ||
appraisal independence in the determination of real estate |
valuations.
| ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/10)
| ||
Sec. 10. Definitions. In this Act: | ||
"Address of record" means the principal designated address | ||
recorded by the Department in the applicant's or registrant's | ||
application file or registration file maintained by the | ||
Department's registration maintenance unit. It is the duty of | ||
the applicant or registrant to inform the Department of any | ||
change of address, and the changes must be made either through | ||
the Department's website or by contacting the Department's | ||
registration maintenance unit within a prescribed time period | ||
as defined by rule. | ||
"Applicant" means a person or entity who applies to the | ||
Department for a registration under this Act. | ||
"Appraisal" means (noun) the act or process of developing | ||
an opinion of value; an opinion of value (adjective) of or | ||
pertaining to appraising and related functions. | ||
"Appraisal firm" means an appraisal entity that is 100% | ||
owned and controlled by a person or persons licensed in | ||
Illinois as a certified general real estate appraiser or a | ||
certified residential real estate appraiser. An appraisal firm | ||
does not include an appraisal management company. | ||
"Appraisal management company" means any corporation, | ||
limited liability company, partnership, sole proprietorship, |
subsidiary, unit, or other business entity that directly or | ||
indirectly performs the following appraisal management | ||
services : (1) provides appraisal management services to | ||
creditors or secondary mortgage market participants; (2) | ||
provides appraisal management services in connection with | ||
valuing the consumer's principal dwelling as security for a | ||
consumer credit transaction (including consumer credit | ||
transactions incorporated into securitizations); (3) within a | ||
given year, oversees an appraiser panel of any size of | ||
State-certified appraisers in Illinois; and (4) any appraisal | ||
management company that, within a given year, oversees an | ||
appraiser panel of 16 or more State-certified appraisers in | ||
Illinois or 25 or more State-certified or State-licensed | ||
appraisers in 2 or more jurisdictions shall be subject to the | ||
appraisal management company national registry fee in addition | ||
to the appraiser panel fee. "Appraisal management company" | ||
includes a hybrid entity. administers networks of independent | ||
contractors or employee appraisers to perform real estate | ||
appraisal assignments for clients; (2) receives requests for | ||
real estate appraisal services from clients and, for a fee paid | ||
by the client, enters into an agreement with one or more | ||
independent appraisers to perform the real estate appraisal | ||
services contained in the request; or (3) otherwise serves as a | ||
third-party broker of appraisal management services between | ||
clients and appraisers. | ||
"Appraisal management company national registry fee" means |
the fee implemented pursuant to Title XI of the federal | ||
Financial Institutions Reform, Recovery and Enforcement Act of | ||
1989 for an appraiser management company's national registry. | ||
"Appraisal management services" means one or more of the | ||
following: | ||
(1) recruiting, selecting, and retaining appraisers; | ||
(2) contracting with State-certified or State-licensed | ||
appraisers to perform appraisal assignments; | ||
(3) managing the process of having an appraisal | ||
performed, including providing administrative services | ||
such as receiving appraisal orders and appraisal reports; | ||
submitting completed appraisal reports to creditors and | ||
secondary market participants; collecting compensation | ||
from creditors, underwriters, or secondary market | ||
participants for services provided; or paying appraisers | ||
for services performed; or | ||
(4) reviewing and verifying the work of appraisers. | ||
"Appraiser panel" means a network, list, or roster of | ||
licensed or certified appraisers approved by the appraisal | ||
management company or by the end-user client to perform | ||
appraisals for the appraisal management company. "Appraiser | ||
panel" includes both appraisers accepted by an appraisal | ||
management company for consideration for future appraisal | ||
assignments and appraisers engaged by an appraisal management | ||
company to perform one or more appraisals. | ||
"Appraiser panel fee" means the amount collected from a |
registrant that, where applicable, includes an appraisal | ||
management company's national registry fee. | ||
"Appraisal report" means a written appraisal by an | ||
appraiser to a client. | ||
"Appraisal practice service" means valuation services | ||
performed by an individual acting as an appraiser, including, | ||
but not limited to, appraisal , or appraisal review , or | ||
appraisal consulting . | ||
"Appraisal subcommittee" means the appraisal subcommittee | ||
of the Federal Financial Institutions Examination Council as | ||
established by Title XI. | ||
"Appraiser" means a person who performs real estate or real | ||
property appraisals. | ||
"Assignment result" means an appraiser's opinions and | ||
conclusions developed specific to an assignment. | ||
"Audit" includes, but is not limited to, an annual or | ||
special audit, visit, or review necessary under this Act or | ||
required by the Secretary or the Secretary's authorized | ||
representative in carrying out the duties and responsibilities | ||
under this Act. | ||
"Board" means the Real Estate Appraisal Administration and | ||
Disciplinary Board. | ||
"Client" means the party or parties who engage an appraiser | ||
by employment or contract in a specific appraisal assignment. | ||
"Controlling Person" means: | ||
(1) an owner, officer, or director of an entity seeking |
to offer appraisal management services; | ||
(2) an individual employed, appointed, or authorized | ||
by an appraisal management company who has the authority | ||
to: | ||
(A) enter into a contractual relationship with a | ||
client for the performance of an appraisal management | ||
service or appraisal practice service; and | ||
(B) enter into an agreement with an appraiser for | ||
the performance of a real estate appraisal activity; or | ||
(3) an individual who possesses, directly or | ||
indirectly, the power to direct or cause the
direction of | ||
the management or policies of an appraisal management | ||
company ; or .
| ||
(4) an individual who will act as the sole compliance | ||
officer with regard to this Act and any rules adopted under | ||
this Act. | ||
"Coordinator" means the Coordinator of the Appraisal | ||
Management Company Registration Unit of the Department or his | ||
or her designee. | ||
"Covered transaction" means a consumer credit transaction | ||
secured by a consumer's principal dwelling. | ||
"Department" means the Department of Financial and | ||
Professional Regulation. | ||
"Email address of record" means the designated email | ||
address recorded by the Department in the applicant's | ||
application file or the registrant's registration file |
maintained by the Department's registration maintenance unit. | ||
"Entity" means a corporation, a limited liability company, | ||
partnership, a sole proprietorship, or other entity providing | ||
services or holding itself out to provide services as an | ||
appraisal management company or an appraisal management | ||
service. | ||
"End-user client" means any person who utilizes or engages | ||
the services of an appraiser through an appraisal management | ||
company. | ||
"Federally regulated appraisal management company" means | ||
an appraisal management company that is owned and controlled by | ||
an insured depository institution, as defined in 12 U.S.C. | ||
1813, or an insured credit union, as defined in 12 U.S.C. 1752, | ||
and regulated by the Office of the Comptroller of the Currency, | ||
the Federal Reserve Board, the National Credit Union | ||
Association, or the Federal Deposit Insurance Corporation. | ||
"Financial institution" means any bank, savings bank, | ||
savings and loan association, credit union, mortgage broker, | ||
mortgage banker, registrant under the Consumer Installment | ||
Loan Act or the Sales Finance Agency Act, or a corporate | ||
fiduciary, subsidiary, affiliate, parent company, or holding | ||
company of any registrant, or any institution involved in real | ||
estate financing that is regulated by State or federal law. | ||
"Foreign appraisal management company" means any appraisal | ||
management company organized under the laws of any other state | ||
of the United States, the District of Columbia, or any other |
jurisdiction of the United States. | ||
"Hybrid entity" means an appraisal management company that | ||
hires an appraiser as an employee to perform an appraisal and | ||
engages an independent contractor to perform an appraisal. | ||
"Multi-state licensing system" means a web-based platform | ||
that allows an applicant to submit his or her application or | ||
registration renewal to the Department online. | ||
"Person" means individuals, entities, sole | ||
proprietorships, corporations, limited liability companies, | ||
and alien, foreign, or domestic partnerships, foreign or | ||
domestic, except that when the context otherwise requires, the | ||
term may refer to a single individual or other described | ||
entity.
| ||
"Principal dwelling" means a residential structure that | ||
contains one to 4 units, whether or not that structure is | ||
attached to real property. "Principal dwelling" includes an | ||
individual condominium unit, cooperative unit, manufactured | ||
home, mobile home, and trailer, if it is used as a residence. | ||
"Principal office" means the actual, physical business | ||
address, which shall not be a post office box or a virtual | ||
business address, of a registrant, at which (i) the Department | ||
may contact the registrant and (ii) records required under this | ||
Act are maintained. | ||
"Qualified to transact business in this State" means being | ||
in compliance with the requirements of the Business Corporation | ||
Act of 1983. |
"Quality control review" means a review of an appraisal | ||
report for compliance and completeness, including grammatical, | ||
typographical, or other similar errors, unrelated to | ||
developing an opinion of value. | ||
"Real estate" means an identified parcel or tract of land, | ||
including any improvements. | ||
"Real estate related financial transaction" means any | ||
transaction involving: | ||
(1) the sale, lease, purchase, investment in, or | ||
exchange of real property,
including interests in property | ||
or the financing thereof; | ||
(2) the refinancing of real property or interests in | ||
real property; and | ||
(3) the use of real property or interest in property as | ||
security for a loan or
investment, including mortgage | ||
backed securities. | ||
"Real property" means the interests, benefits, and rights | ||
inherent in the ownership of real estate. | ||
"Secretary" means the Secretary of Financial and | ||
Professional Regulation. | ||
"USPAP" means the Uniform Standards of Professional | ||
Appraisal Practice as adopted by the Appraisal Standards Board | ||
under Title XI. | ||
"Valuation" means any estimate of the value of real | ||
property in connection with a creditor's decision to provide | ||
credit, including those values developed under a policy of a |
government sponsored enterprise or by an automated valuation | ||
model or other methodology or mechanism.
| ||
"Written notice" means a communication transmitted by mail | ||
or by electronic means that can be verified between an | ||
appraisal management company and a licensed or certified real | ||
estate appraiser. | ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/15)
| ||
Sec. 15. Exemptions. | ||
(a) Nothing in this Act shall apply to any of the | ||
following: | ||
(1) an agency of the federal, State, county, or | ||
municipal government or an officer or employee of a | ||
government agency, or person, described in this Section | ||
when acting within the scope of employment of the officer | ||
or employee; | ||
(2) a corporate relocation company when the appraisal | ||
is not used for mortgage purposes and the end user client | ||
is an employer company; | ||
(3) any person licensed in this State under any other | ||
Act while engaged in the activities or practice for which | ||
he or she is licensed; | ||
(4) any person licensed to practice law in this State | ||
who is working with or on behalf of a client of that person | ||
in connection with one or more appraisals for that client; |
(5) an appraiser that enters into an agreement, whether | ||
written or otherwise, with another appraiser for the | ||
performance of an appraisal, and upon the completion of the | ||
appraisal, the report of the appraiser performing the | ||
appraisal is signed by both the appraiser who completed the | ||
appraisal and the appraiser who requested the completion of | ||
the appraisal, except that an appraisal management company | ||
may not avoid the requirement of registration under this | ||
Act by requiring an employee of the appraisal management | ||
company who is an appraiser to sign an appraisal that was | ||
completed by another appraiser who is part of the appraisal | ||
panel of the appraisal management company; | ||
(6) any person acting as an agent of the Illinois | ||
Department of Transportation in the acquisition or | ||
relinquishment of land for transportation issues to the | ||
extent of their contract scope; or | ||
(7) a design professional entity when the appraisal is | ||
not used for
mortgage purposes and the end user client is | ||
an agency of State government or a unit of local | ||
government ; . | ||
(8) an appraiser firm whose ownership is appropriately | ||
certified under the Real Estate Appraiser Licensing Act of | ||
2002; or | ||
(9) an appraisal management company solely engaged in | ||
non-residential appraisal management services. | ||
(b) A federally regulated appraisal management company |
shall register with the Department for the sole purpose of | ||
collecting required information for, and to pay all fees | ||
associated with, the State of Illinois' obligation to register | ||
the federally regulated appraisal management company with the | ||
Appraisal Management Companies National Registry, but the | ||
federally regulated appraisal management company is otherwise | ||
exempt from all other provisions in this Act. | ||
(c) In the event that the Final Interim Rule of the federal | ||
Dodd-Frank Wall Street Reform and Consumer Protection Act | ||
provides that an appraisal management company is a subsidiary | ||
owned and controlled by a financial institution regulated by a | ||
federal financial institution's regulatory agency and is | ||
exempt from State appraisal management company registration | ||
requirements, the Department, shall, by rule, provide for the | ||
implementation of such an exemption.
| ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/17 new) | ||
Sec. 17. Address of record; email address of record. All | ||
applicants and registrants shall: | ||
(1) provide a valid address and email address to the
| ||
Department, which shall serve as the address of record and | ||
email address of record, respectively, at the time of | ||
application for registration or renewal of a registration; | ||
and | ||
(2) inform the Department of any change of address of
|
record or email address of record within 14 days after such | ||
change either through the Department's website or through a | ||
multi-state registration system as designated by the | ||
Secretary. | ||
(225 ILCS 459/20)
| ||
Sec. 20. Restrictions and limitations. Beginning January | ||
1, 2012, it is unlawful for a person or entity to act or assume | ||
to act as an appraisal management company as defined in this | ||
Act, to engage in the business of appraisal management service, | ||
or to advertise or hold himself or herself out to be a | ||
registered appraisal management company without first | ||
obtaining a registration issued by the Department under this | ||
Act. A person or entity that violates this Section is guilty of | ||
a Class A misdemeanor for the first offense and a Class 4 | ||
felony for second and subsequent offenses. | ||
Persons practicing as an appraisal management company in | ||
Illinois as of the effective date of this Act may continue to | ||
practice as provided in this Act until the Department has | ||
adopted rules implementing this Act. To continue practicing as | ||
an appraisal management company after the adoption of rules, | ||
persons shall apply for registration within 180 days after the | ||
effective date of the rules. If an application is received | ||
during the 180-day period, the person may continue to practice | ||
until the Department acts to grant or deny registration. If an | ||
application is not filed within the 180-day period, the person |
must cease the practice at the conclusion of the 180-day period | ||
and until the Department acts to grant a registration to the | ||
person.
| ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/25)
| ||
Sec. 25. Powers and duties of the Department. Subject to | ||
the provisions of this Act: | ||
(1) The Department may ascertain the qualifications | ||
and fitness of applicants for registration and pass upon | ||
the qualifications of applicants for registration. | ||
(2) The Department may conduct hearings on proceedings | ||
to refuse to issue or renew or to revoke registrations or | ||
suspend, place on probation, or reprimand persons or | ||
otherwise discipline individuals or entities subject to | ||
this Act. | ||
(3) The Department may adopt formulate all rules | ||
required for the administration of this Act. With the | ||
exception of emergency rules, any proposed rules, | ||
amendments, second notice materials, and adopted rule or | ||
amendment materials or policy statements concerning | ||
appraisal management companies shall be presented to the | ||
Real Estate Appraisal Administration and Disciplinary | ||
Board for review and comment. The recommendations of the | ||
Board shall be presented to the Secretary for consideration | ||
in making final decisions. |
(4) The Department may maintain rosters of the names | ||
and addresses of all registrants, and all persons whose | ||
registrations have been suspended, revoked, or denied | ||
renewal for cause within the previous calendar year or | ||
otherwise disciplined pursuant to this Act and shall | ||
transmit the roster, along with any national registry fees | ||
obtained by it, to the entity specified by and in a manner | ||
consistent with Title XI of the federal Financial | ||
Institutions Reform, Recovery, and Enforcement Act of | ||
1989 . These rosters shall be available upon written request | ||
and payment of the required fee as established by rule.
| ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/32 new) | ||
Sec. 32. Multi-state licensing system. The Secretary may | ||
require participation in a third-party, multi-state licensing | ||
system for registration under this Act. The multi-state | ||
licensing system may share regulatory information and maintain | ||
records in compliance with the provisions of this Act. The | ||
multi-state licensing system may charge the applicant an | ||
administration fee. | ||
(225 ILCS 459/35)
| ||
Sec. 35. Application for original registration. | ||
Applications for original registration shall be made to the | ||
Department on forms prescribed by the Department , or through a |
multi-state licensing system as designated by the Secretary, | ||
and accompanied by the required fee. All applications shall | ||
contain the information that, in the judgment of the | ||
Department, will enable the Department to pass on the | ||
qualifications of the applicant to be registered to practice as | ||
set by rule.
| ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/37 new) | ||
Sec. 37. Transferability; assignability. A registration, | ||
when issued for an appraisal management company, shall state | ||
the name of the registrant and the address of the principal | ||
office. The registration is not transferable or assignable. | ||
(225 ILCS 459/40)
| ||
Sec. 40. Qualifications for registration. | ||
(a) The Department may issue a certification of | ||
registration to practice under this Act to any applicant who is | ||
qualified to do business in this State and applies to the | ||
Department on forms provided by the Department , or through a | ||
multi-state licensing system as designated by the Secretary , | ||
pays the required non-refundable fees fee , is qualified to | ||
transact business in this State, and who provides the | ||
following: | ||
(1) the business name of the applicant seeking | ||
registration; |
(2) the business address or addresses and contact | ||
information of the applicant seeking registration; | ||
(3) if the business applicant is not a corporation that | ||
is domiciled in this State, then the name and contact | ||
information for the company's agent for service of process | ||
in this State; | ||
(4) the name, address, and contact information for any | ||
individual or any corporation, partnership, limited | ||
liability company, association, or other business | ||
applicant that owns 10% or more of the appraisal management | ||
company along with a completed criminal history records | ||
background check as required in Section 68 ; | ||
(5) the name, address, and contact information for a | ||
designated controlling person; | ||
(6) a certification that the applicant will utilize | ||
Illinois licensed appraisers to provide appraisal services | ||
within the State of Illinois; | ||
(7) a certification that the applicant has a system in | ||
place utilizing a licensed Illinois appraiser to review the | ||
work of all employed and independent appraisers that are | ||
performing real estate appraisal services in Illinois for | ||
the appraisal management company on a periodic basis, | ||
except for a quality control review, to verify that the | ||
real estate appraisal assignments are being conducted in | ||
accordance with USPAP; | ||
(8) a certification that the applicant maintains a |
detailed record of each service request that it receives | ||
and the independent appraiser that performs the real estate | ||
appraisal services for the appraisal management company; | ||
(9) a certification that the employees of the appraisal | ||
management company working on behalf of the appraisal | ||
management company directly involved in providing | ||
appraisal management services, will be appropriately | ||
trained and familiar with the appraisal process to | ||
completely provide appraisal management services;
| ||
(10) an irrevocable Uniform Consent to Service of | ||
Process, under rule; and | ||
(11) a certification that the applicant shall comply | ||
with all other requirements of this Act and rules | ||
established for the implementation of this Act. | ||
(b) Applicants have 3 years from the date of application to | ||
complete the application process. If the process has not been | ||
completed in 3 years, the application shall be denied, the fee | ||
shall be forfeited, and the applicant must reapply and meet the | ||
requirements in effect at the time of reapplication.
| ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/43 new) | ||
Sec. 43. Application denial. If an application is denied, | ||
the applicant may, within 20 days after the date of the notice | ||
of denial, make a written request to the Secretary for a | ||
hearing on the application, and the Secretary shall set a time |
and place for the hearing. The hearing shall be set for a date | ||
after the receipt by the Secretary of the request for hearing, | ||
and notice of the time and place of the hearing shall be | ||
communicated to the applicant at least 10 days before the date | ||
of the hearing. The applicant shall pay the actual cost of | ||
making the transcript of the hearing before the Secretary | ||
issues his or her decision following the hearing. If, following | ||
the hearing, the application is denied, the Secretary shall | ||
prepare and keep on file in his or her office a written order | ||
of denial thereof that shall contain his or her findings and | ||
the reasons supporting the denial and shall communicate a copy | ||
to the applicant in a manner prescribed by the Department. A | ||
decision may be reviewed as provided in Section 135. | ||
(225 ILCS 459/47 new) | ||
Sec. 47. Annual report; investigation; costs. Each | ||
registrant shall annually file a report with the Secretary for | ||
the calendar year period from January 1 through December 31, | ||
giving relevant information as the Secretary may reasonably | ||
require concerning, and for the purpose of examination for | ||
compliance with federal and State regulations, the business and | ||
operations during the preceding fiscal year period of each | ||
registered appraisal management company conducted by the | ||
registrant within the State. The report shall be made under | ||
oath and shall be in the form prescribed by rule. The Secretary | ||
may, at any time, investigate a registrant and every person, |
partnership, association, limited liability company, | ||
corporation, or other business entity who or which is engaged | ||
in the business of operating an appraisal management company. | ||
For that purpose, the Secretary shall have free access to the | ||
offices and places of business and to records of all persons, | ||
firms, partnerships, associations, limited liability companies | ||
and members thereof, and corporations and to the officers and | ||
directors thereof that relate to the appraisal management | ||
company. The investigation may be conducted in conjunction with | ||
representatives of other State agencies or agencies of another | ||
state or of the United States as determined by the Secretary. | ||
The Secretary may require by subpoena the attendance of and | ||
examine under oath all persons whose testimony he or she may | ||
require relative to the appraisal management company, and, in | ||
those cases, the Secretary, or a representative whom he or she | ||
may designate, may administer oaths to all persons called as | ||
witnesses, and the Secretary, or a representative of the | ||
Secretary, may conduct an audit, and there shall be paid to the | ||
Secretary for each audit a fee, to be established by rule, for | ||
each day or part thereof for each representative designated and | ||
required to conduct the audit. | ||
(225 ILCS 459/55)
| ||
Sec. 55. Fees. | ||
(a) The fees for the administration and enforcement of this | ||
Act, including, but not limited to, original registration fees , |
renewal fees , appraiser panel fees, appraiser management | ||
company national registry fees, and restoration fees, shall be | ||
set by the Department by rule. The fees shall not be | ||
refundable. | ||
(b) All fees and other moneys collected under this Act | ||
shall be deposited in the Appraisal Administration Fund , except | ||
as provided in subsection (d) of this Section .
| ||
(c) The Department shall establish by rule a process for | ||
calculating, collecting, and paying appraiser panel fees and, | ||
where applicable, appraiser management company national | ||
registry fees in a manner consistent with Title XI of the | ||
federal Financial Institutions Reform, Recovery, and | ||
Enforcement Act of 1989. | ||
(d) The administration fee charged by the multi-state | ||
licensing system shall be paid directly to the multi-state | ||
licensing system. | ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/65)
| ||
Sec. 65. Disciplinary actions. | ||
(a) The Department may refuse to issue or renew, or may | ||
revoke, suspend, place on probation, reprimand, or take other | ||
disciplinary or non-disciplinary action as the Department may | ||
deem appropriate, including imposing fines not to exceed | ||
$25,000 for each violation, with regard to any registration for | ||
any one or combination of the following: |
(1) Material misstatement in furnishing information to | ||
the Department. | ||
(2) Violations of this Act, or of the rules adopted | ||
under this Act. | ||
(3) Conviction of, or entry of a plea of guilty or nolo | ||
contendere to any crime that is a felony under the laws of | ||
the United States or any state or territory thereof or that | ||
is a misdemeanor of which an essential element is | ||
dishonesty, or any crime that is directly related to the | ||
practice of the profession. | ||
(4) Making any misrepresentation for the purpose of | ||
obtaining registration or violating any provision of this | ||
Act or the rules adopted under this Act pertaining to | ||
advertising. | ||
(5) Professional incompetence. | ||
(6) Gross malpractice. | ||
(7) Aiding or assisting another person in violating any | ||
provision of this Act or rules adopted under this Act. | ||
(8) Failing, within 30 days after requested, to provide | ||
information in response to a written request made by the | ||
Department. | ||
(9) Engaging in dishonorable, unethical, or | ||
unprofessional conduct of a character likely to deceive, | ||
defraud, or harm the public. | ||
(10) Discipline by another state, District of | ||
Columbia, territory, or foreign nation, if at least one of |
the grounds for the discipline is the same or substantially | ||
equivalent to those set forth in this Section. | ||
(11) A finding by the Department that the registrant, | ||
after having his or her registration placed on probationary | ||
status, has violated the terms of probation. | ||
(12) Willfully making or filing false records or | ||
reports in his or her practice, including, but not limited | ||
to, false records filed with State agencies or departments. | ||
(13) Filing false statements for collection of fees for | ||
which services are not rendered. | ||
(14) Practicing under a false or, except as provided by | ||
law, an assumed name. | ||
(15) Fraud or misrepresentation in applying for, or | ||
procuring, a registration under this Act or in connection | ||
with applying for renewal of a registration under this Act. | ||
(16) Being adjudicated liable in a civil proceeding for | ||
violation of a state or federal fair housing law. | ||
(17) Failure to obtain or maintain the bond required | ||
under Section 50 of this Act. | ||
(18) Failure to pay appraiser panel fees or appraisal | ||
management company national registry fees. | ||
(b) The Department may refuse to issue or may suspend | ||
without hearing as provided for in the Civil Administrative | ||
Code the registration of any person who fails to file a return, | ||
or to pay the tax, penalty or interest shown in a filed return, | ||
or to pay any final assessment of the tax, penalty, or interest |
as required by any tax Act administered by the Illinois | ||
Department of Revenue, until such time as the requirements of | ||
any such tax Act are satisfied.
| ||
(c) An appraisal management company shall not be registered | ||
or included on the national registry if the company, in whole | ||
or in part, directly or indirectly, is owned by a person who | ||
has had an appraiser license or certificate refused, denied, | ||
canceled, surrendered in lieu of revocation, or revoked under | ||
the Real Estate Appraiser Licensing Act of 2002 or the rules | ||
adopted under that Act, or similar discipline by another state, | ||
the District of Columbia, a territory, a foreign nation, a | ||
governmental agency, or an entity authorized to impose | ||
discipline if at least one of the grounds for that discipline | ||
is the same as or the equivalent of one of the grounds for | ||
which a licensee may be disciplined as set forth under this | ||
Section. | ||
(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/67 new) | ||
Sec. 67. Good moral character. If an applicant, or an | ||
ownership interest of the applicant, has had a license or | ||
registration revoked on a prior occasion, has been found to | ||
have committed any of the practices enumerated in Section 65, | ||
has been convicted of or entered a plea of guilty or nolo | ||
contendere to forgery, embezzlement, obtaining money under | ||
false pretenses, larceny, extortion, conspiracy to defraud, or |
a similar offense or offenses, or has been convicted of a | ||
felony involving moral turpitude in a court of competent | ||
jurisdiction in this State or any other state, district, or | ||
territory of the United States or of a foreign country, the | ||
Department may consider the prior revocation, conduct, or | ||
conviction in its determination of the applicant's moral | ||
character and whether to grant the applicant's registration. In | ||
its consideration of the prior revocation, conduct, or | ||
conviction, the Department shall take into account the nature | ||
of the conduct, any aggravating or extenuating circumstances, | ||
the time elapsed since the revocation, conduct, or conviction, | ||
the rehabilitation or restitution performed by the applicant, | ||
and any other factors that the Department deems relevant. When | ||
an applicant has made a false statement of material fact on his | ||
or her application, the false statement may in itself be | ||
sufficient grounds to revoke or refuse to issue a registration. | ||
(225 ILCS 459/68 new) | ||
Sec. 68. Criminal history records background check. Each | ||
individual applicant or controlling person on behalf of a | ||
business entity that applies for registration or restoration | ||
shall have his or her fingerprints submitted to the Department | ||
of State Police in an electronic format that complies with the | ||
form and manner for requesting and furnishing criminal history | ||
record information as prescribed by the Department of State | ||
Police, or through a multi-state licensing system as designated |
by the Secretary. These fingerprints shall be checked against | ||
the Department of State Police and Federal Bureau of | ||
Investigation criminal history record databases now and | ||
hereafter filed. The Department of State Police shall charge | ||
applicants a fee for conducting the criminal history records | ||
background check, which shall be deposited into the State | ||
Police Services Fund and shall not exceed the actual cost of | ||
the criminal history records background check. The Department | ||
of State Police shall furnish, pursuant to positive | ||
identification, records of Illinois convictions to the | ||
Department. The Department may require an applicant to pay a | ||
separate fingerprinting fee, either to the Department or to a | ||
vendor. The Department may adopt any rules necessary to | ||
implement this Section. | ||
(225 ILCS 459/160)
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Sec. 160. Business practice provisions; standards of | ||
practice. | ||
(a) The Department may adopt by rule the Uniform Standards | ||
of Professional Appraisal Practice as published from time to | ||
time by the Appraisal Standards Board of the Appraisal | ||
Foundation. Appraisal management companies shall not interfere | ||
with adherence to the Uniform Standards of Professional | ||
Appraisal Practice or the Real Estate Appraiser Act of 2002 or | ||
a subsequent Act by individuals licensed under the respective | ||
Acts. |
(b) All payment policies from registrants under this Act to | ||
appraisers shall be written and definitive in nature.
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(c) In the event of a value dispute or a requested | ||
reconsideration of value, the appraisal management company | ||
shall deliver all information that supports an increase or | ||
decrease in value to the appraiser. This information may | ||
include, but is not limited to, additional comparable sales. | ||
(d) Each entity registered under this Act shall designate a | ||
controlling person who is responsible to assure that the | ||
company operates in compliance with this Act. The company shall | ||
file a form provided by the Department indicating the company's | ||
designation of the controlling person and such individual's | ||
acceptance of the responsibility. A registrant shall notify the | ||
Department of any change in its controlling person within 30 | ||
days. Any registrant who does not comply with this subsection | ||
(d) shall have its registration suspended under the provisions | ||
set forth in this Act until the registrant complies with this | ||
Section. Any individual registrant who operates as a sole | ||
proprietorship shall be considered a designated controlling | ||
person for the purposes of this Act. | ||
(e)
Appraisal management companies or employees of an | ||
appraisal management company involved in a real estate | ||
transaction who have a reasonable basis to believe that an | ||
appraiser involved in the preparation of an appraisal for the | ||
real estate transaction has failed to comply with the Uniform | ||
Standards of Professional Appraisal Practice, has violated |
this Act or its rules, or has otherwise engaged in unethical | ||
conduct shall report the matter to the Department. Any | ||
registrant, employee, or individual acting on behalf of a | ||
registrant, acting in good faith, and not in a willful and | ||
wanton manner, in complying with this Act by reporting the | ||
conduct to the Department shall not, as a result of such | ||
actions, be subject to criminal prosecution or civil damages. | ||
(f) Appraisal management companies are required to be in | ||
compliance with the appraisal independence standards | ||
established under Section 129E of the federal Truth in Lending | ||
Act, including the requirement that fee appraisers be | ||
compensated at a customary and reasonable rate when the | ||
appraisal management company is providing services for a | ||
consumer credit transaction secured by the principal dwelling | ||
of a consumer. To the extent permitted by federal law or | ||
regulation, the
Department shall formulate rules pertaining to | ||
customary and reasonable rates of
compensation for fee | ||
appraisers. The appraisal management company must certify
to | ||
the Department that it has policies and procedures in place to | ||
be in compliance
under the Final Interim Rule of the federal | ||
Dodd-Frank Wall Street Reform and Consumer Protection Act.
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(g) No appraisal management company procuring or | ||
facilitating an appraisal may have a direct or indirect | ||
interest, financial or otherwise, in the real estate or the | ||
transaction that is the subject of the appraisal, as defined by | ||
the federal Dodd-Frank Wall Street Reform and Consumer |
Protection Act, any amendments thereto, or successor acts or | ||
other applicable provisions of federal law or regulations.
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(Source: P.A. 97-602, eff. 8-26-11.) | ||
(225 ILCS 459/163 new) | ||
Sec. 163. Appraiser panel; annual size calculation. An | ||
appraiser is deemed part of the appraisal management company's | ||
appraiser panel as of the earliest date the appraisal | ||
management company accepts the appraiser for consideration for | ||
future appraisal assignments in covered transactions or | ||
engages the appraiser to perform one or more appraisal | ||
assignments on behalf of a creditor or secondary mortgage | ||
market participant in a covered transaction, including an | ||
affiliate of such a creditor or participant. An appraiser is | ||
considered to be part of the appraisal management company's | ||
appraiser panel if deemed to remain on the panel until: (1) the | ||
date on which the appraisal management company sends written | ||
notice to the appraiser removing the appraiser from the | ||
appraiser panel; (2) the date the appraisal management company | ||
receives written notice from the appraiser asking to be removed | ||
from the appraiser panel; or (3) the date the appraisal | ||
management company receives notice of the death or incapacity | ||
of the appraiser. If an appraiser is removed from an appraisal | ||
management company's appraiser panel but the appraisal | ||
management company subsequently accepts the appraiser for | ||
consideration for future assignments or engages the appraiser |
at any time during the 12 months after the appraiser's removal, | ||
the removal would be deemed not to have occurred and the | ||
appraiser is deemed to have been part of the appraisal | ||
management company's appraiser panel without interruption. | ||
(225 ILCS 459/177 new) | ||
Sec. 177. Administrator, executor, or guardian. If the | ||
ownership of an appraisal management company registered under | ||
this Act is held or contained in an estate subject to the | ||
control and supervision of an administrator, executor, or | ||
guardian appointed, approved, or by a court of the State of | ||
Illinois, having jurisdiction so to do, the administrator, | ||
executor, or guardian may, upon the entry of an order by the | ||
court granting leave to continue the operation of the appraisal | ||
management company, apply to the Secretary for a registration | ||
under this Act. If the administrator, executor, or guardian | ||
applies for an appraisal management company registration | ||
pursuant to this Section and complies with all of the | ||
provisions of this Act relating to the application for an | ||
appraisal management company registration, the Secretary may | ||
issue to the applicant an appraisal management company | ||
registration. An appraisal management company registration | ||
issued to an appraisal management company, for which an | ||
application for a registration is sought under this Section, if | ||
not previously surrendered, lapsed, or revoked, shall be | ||
surrendered, revoked, or otherwise terminated before a |
registration is issued pursuant to the application made under | ||
this Section.
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Section 99. Effective date. This Act takes effect upon | ||
becoming law.
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