Illinois General Assembly - Full Text of Public Act 100-0783
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Public Act 100-0783


Public Act 0783 100TH GENERAL ASSEMBLY



Public Act 100-0783
SB0748 EnrolledLRB100 05748 SMS 15771 b

    AN ACT concerning regulation.
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
    Section 5. The Illinois Banking Act is amended by changing
Sections 78 and 79 as follows:
    (205 ILCS 5/78)  (from Ch. 17, par. 390)
    Sec. 78. Board of banks and trust companies; creation,
members, appointment. There is created a Board which shall be
known as the State Banking Board of Illinois which shall
consist of the Director of Banking, who shall be its chairman,
and 12 11 additional members. The Board shall be comprised of
individuals interested in the banking industry. Two members
shall be from State banks having total assets of not more than
$75,000,000 at the time of their appointment; 2 members shall
be from State banks having total assets of more than
$75,000,000, but not more than $150,000,000 at the time of
their appointment; 2 members shall be from State banks having
total assets of more than $150,000,000, but not more than
$500,000,000 at the time of their appointment; 2 members shall
be from State banks having total assets of more than
$500,000,000, but not more than $2,000,000,000 at the time of
their appointment; , and one member shall be from a State bank
having total assets of more than $2,000,000,000 at the time of
his or her appointment; and one member shall be from a savings
bank organized under the Savings Bank Act. There shall be one
alternate member from a savings bank organized under the
Savings Bank Act whose role shall be to attend a meeting of the
State Banking Board if and only if the sitting member from a
savings bank is unable to attend the meeting. There shall be 2
public members, neither of whom shall be an officer or director
of or owner, whether directly or indirectly, of more than 5% of
the outstanding capital stock of any bank or savings bank.
Members of the State Banking Board of Illinois cease to be
eligible to serve on the Board once they no longer meet the
requirements of their original appointment; however, a member
from a State bank shall not be disqualified solely due to a
change in the bank's asset size.
(Source: P.A. 99-39, eff. 1-1-16.)
    (205 ILCS 5/79)  (from Ch. 17, par. 391)
    Sec. 79. Board, terms of office. The terms of office of the
State Banking Board of Illinois shall be 4 years, except that
the initial Board appointments shall be staggered with the
Governor initially appointing, with advice and consent of the
Senate, 3 members to serve 2-year terms, 4 members to serve
3-year terms, and 4 members to serve 4-year terms. The sitting
member from a savings bank organized under the Savings Bank Act
and the alternate member from a savings bank organized under
the Savings Bank Act shall be appointed for the same terms of
office. Members shall continue to serve on the Board until
their replacement is appointed and qualified. Vacancies shall
be filled by appointment by the Governor with advice and
consent of the Senate.
    No State Banking Board member shall serve more than 2 full
4-year terms of office.
(Source: P.A. 96-1163, eff. 1-1-11; 97-813, eff. 7-13-12.)
    (205 ILCS 205/12104 rep.)
    (205 ILCS 205/Art. 12.2 rep.)
    Section 10. The Savings Bank Act is amended by repealing
Section 12104 and Article 12.2.
    Section 15. The Residential Mortgage License Act of 1987 is
amended by changing Sections 1-4, 4-1, and 4-8 as follows:
    (205 ILCS 635/1-4)
    Sec. 1-4. Definitions. The following words and phrases have
the meanings given to them in this Section:
        (a) "Residential real property" or "residential real
    estate" shall mean any real property located in Illinois,
    upon which is constructed or intended to be constructed a
    dwelling. Those terms include a manufactured home as
    defined in subdivision (53) of Section 9-102 of the Uniform
    Commercial Code which is real property as defined in
    Section 5-35 of the Conveyance and Encumbrance of
    Manufactured Homes as Real Property and Severance Act.
        (b) "Making a residential mortgage loan" or "funding a
    residential mortgage loan" shall mean for compensation or
    gain, either directly or indirectly, advancing funds or
    making a commitment to advance funds to a loan applicant
    for a residential mortgage loan.
        (c) "Soliciting, processing, placing, or negotiating a
    residential mortgage loan" shall mean for compensation or
    gain, either directly or indirectly, accepting or offering
    to accept an application for a residential mortgage loan,
    assisting or offering to assist in the processing of an
    application for a residential mortgage loan on behalf of a
    borrower, or negotiating or offering to negotiate the terms
    or conditions of a residential mortgage loan with a lender
    on behalf of a borrower including, but not limited to, the
    submission of credit packages for the approval of lenders,
    the preparation of residential mortgage loan closing
    documents, including a closing in the name of a broker.
        (d) "Exempt person or entity" shall mean the following:
            (1) (i) Any banking organization or foreign
        banking corporation licensed by the Illinois
        Commissioner of Banks and Real Estate or the United
        States Comptroller of the Currency to transact
        business in this State; (ii) any national bank,
        federally chartered savings and loan association,
        federal savings bank, federal credit union; (iii)
        (blank); (iv) any bank, savings and loan association,
        savings bank, or credit union organized under the laws
        of this or any other state; (v) any Illinois Consumer
        Installment Loan Act licensee; (vi) any insurance
        company authorized to transact business in this State;
        (vii) any entity engaged solely in commercial mortgage
        lending; (viii) any service corporation of a savings
        and loan association or savings bank organized under
        the laws of this State or the service corporation of a
        federally chartered savings and loan association or
        savings bank having its principal place of business in
        this State, other than a service corporation licensed
        or entitled to reciprocity under the Real Estate
        License Act of 2000; or (ix) any first tier subsidiary
        of a bank, the charter of which is issued under the
        Illinois Banking Act by the Illinois Commissioner of
        Banks and Real Estate, or the first tier subsidiary of
        a bank chartered by the United States Comptroller of
        the Currency and that has its principal place of
        business in this State, provided that the first tier
        subsidiary is regularly examined by the Illinois
        Commissioner of Banks and Real Estate or the
        Comptroller of the Currency, or a consumer compliance
        examination is regularly conducted by the Federal
        Reserve Board.
            (1.5) Any employee of a person or entity mentioned
        in item (1) of this subsection, when acting for such
        person or entity, or any registered mortgage loan
        originator when acting for an entity described in
        subsection (tt) of this Section.
            (1.8) Any person or entity that does not originate
        mortgage loans in the ordinary course of business, but
        makes or acquires residential mortgage loans with his
        or her own funds for his or her or its own investment
        without intent to make, acquire, or resell more than 3
        residential mortgage loans in any one calendar year.
            (2) (Blank).
            (3) Any person employed by a licensee to assist in
        the performance of the residential mortgage licensee's
        activities regulated by this Act who is compensated in
        any manner by only one licensee.
            (4) (Blank).
            (5) Any individual, corporation, partnership, or
        other entity that originates, services, or brokers
        residential mortgage loans, as these activities are
        defined in this Act, and who or which receives no
        compensation for those activities, subject to the
        Commissioner's regulations and the federal Secure and
        Fair Enforcement for Mortgage Licensing Act of 2008 and
        the rules promulgated under that Act with regard to the
        nature and amount of compensation.
            (6) (Blank).
        (e) "Licensee" or "residential mortgage licensee"
    shall mean a person, partnership, association,
    corporation, or any other entity who or which is licensed
    pursuant to this Act to engage in the activities regulated
    by this Act.
        (f) "Mortgage loan" "residential mortgage loan" or
    "home mortgage loan" shall mean any loan primarily for
    personal, family, or household use that is secured by a
    mortgage, deed of trust, or other equivalent consensual
    security interest on a dwelling as defined in Section
    103(v) of the federal Truth in Lending Act, or residential
    real estate upon which is constructed or intended to be
    constructed a dwelling.
        (g) "Lender" shall mean any person, partnership,
    association, corporation, or any other entity who either
    lends or invests money in residential mortgage loans.
        (h) "Ultimate equitable owner" shall mean a person who,
    directly or indirectly, owns or controls an ownership
    interest in a corporation, foreign corporation, alien
    business organization, trust, or any other form of business
    organization regardless of whether the person owns or
    controls the ownership interest through one or more persons
    or one or more proxies, powers of attorney, nominees,
    corporations, associations, partnerships, trusts, joint
    stock companies, or other entities or devices, or any
    combination thereof.
        (i) "Residential mortgage financing transaction" shall
    mean the negotiation, acquisition, sale, or arrangement
    for or the offer to negotiate, acquire, sell, or arrange
    for, a residential mortgage loan or residential mortgage
    loan commitment.
        (j) "Personal residence address" shall mean a street
    address and shall not include a post office box number.
        (k) "Residential mortgage loan commitment" shall mean
    a contract for residential mortgage loan financing.
        (l) "Party to a residential mortgage financing
    transaction" shall mean a borrower, lender, or loan broker
    in a residential mortgage financing transaction.
        (m) "Payments" shall mean payment of all or any of the
    following: principal, interest and escrow reserves for
    taxes, insurance and other related reserves, and
    reimbursement for lender advances.
        (n) "Commissioner" shall mean the Commissioner of
    Banks and Real Estate, except that, beginning on April 6,
    2009 (the effective date of Public Act 95-1047), all
    references in this Act to the Commissioner of Banks and
    Real Estate are deemed, in appropriate contexts, to be
    references to the Secretary of Financial and Professional
    Regulation, or his or her designee, including the Director
    of the Division of Banking of the Department of Financial
    and Professional Regulation.
        (n-1) "Director" shall mean the Director of the
    Division of Banking of the Department of Financial and
    Professional Regulation, except that, beginning on July
    31, 2009 (the effective date of Public Act 96-112), all
    references in this Act to the Director are deemed, in
    appropriate contexts, to be the Secretary of Financial and
    Professional Regulation, or his or her designee, including
    the Director of the Division of Banking of the Department
    of Financial and Professional Regulation.
        (o) "Loan brokering", "brokering", or "brokerage
    service" shall mean the act of helping to obtain from
    another entity, for a borrower, a loan secured by
    residential real estate situated in Illinois or assisting a
    borrower in obtaining a loan secured by residential real
    estate situated in Illinois in return for consideration to
    be paid by either the borrower or the lender including, but
    not limited to, contracting for the delivery of residential
    mortgage loans to a third party lender and soliciting,
    processing, placing, or negotiating residential mortgage
        (p) "Loan broker" or "broker" shall mean a person,
    partnership, association, corporation, or limited
    liability company, other than those persons, partnerships,
    associations, corporations, or limited liability companies
    exempted from licensing pursuant to Section 1-4,
    subsection (d), of this Act, who performs the activities
    described in subsections (c), (o), and (yy) of this
        (q) "Servicing" shall mean the collection or
    remittance for or the right or obligation to collect or
    remit for any lender, noteowner, noteholder, or for a
    licensee's own account, of payments, interests, principal,
    and trust items such as hazard insurance and taxes on a
    residential mortgage loan in accordance with the terms of
    the residential mortgage loan; and includes loan payment
    follow-up, delinquency loan follow-up, loan analysis and
    any notifications to the borrower that are necessary to
    enable the borrower to keep the loan current and in good
    standing. "Servicing" includes management of third-party
    entities acting on behalf of a residential mortgage
    licensee for the collection of delinquent payments and the
    use by such third-party entities of said licensee's
    servicing records or information, including their use in
        (r) "Full service office" shall mean an office,
    provided by the licensee and not subleased from the
    licensee's employees, and staff in Illinois reasonably
    adequate to handle efficiently communications, questions,
    and other matters relating to any application for, or an
    existing home mortgage secured by residential real estate
    situated in Illinois with respect to which the licensee is
    brokering, funding originating, purchasing, or servicing.
    The management and operation of each full service office
    must include observance of good business practices such as
    proper signage; adequate, organized, and accurate books
    and records; ample phone lines, hours of business, staff
    training and supervision, and provision for a mechanism to
    resolve consumer inquiries, complaints, and problems. The
    Commissioner shall issue regulations with regard to these
    requirements and shall include an evaluation of compliance
    with this Section in his or her periodic examination of
    each licensee.
        (s) "Purchasing" shall mean the purchase of
    conventional or government-insured mortgage loans secured
    by residential real estate situated in Illinois from either
    the lender or from the secondary market.
        (t) "Borrower" shall mean the person or persons who
    seek the services of a loan broker, originator, or lender.
        (u) "Originating" shall mean the issuing of
    commitments for and funding of residential mortgage loans.
        (v) "Loan brokerage agreement" shall mean a written
    agreement in which a broker or loan broker agrees to do
    either of the following:
            (1) obtain a residential mortgage loan for the
        borrower or assist the borrower in obtaining a
        residential mortgage loan; or
            (2) consider making a residential mortgage loan to
        the borrower.
        (w) "Advertisement" shall mean the attempt by
    publication, dissemination, or circulation to induce,
    directly or indirectly, any person to enter into a
    residential mortgage loan agreement or residential
    mortgage loan brokerage agreement relative to a mortgage
    secured by residential real estate situated in Illinois.
        (x) (Blank). "Residential Mortgage Board" shall mean
    the Residential Mortgage Board created in Section 1-5 of
    this Act.
        (y) "Government-insured mortgage loan" shall mean any
    mortgage loan made on the security of residential real
    estate insured by the Department of Housing and Urban
    Development or Farmers Home Loan Administration, or
    guaranteed by the Veterans Administration.
        (z) "Annual audit" shall mean a certified audit of the
    licensee's books and records and systems of internal
    control performed by a certified public accountant in
    accordance with generally accepted accounting principles
    and generally accepted auditing standards.
        (aa) "Financial institution" shall mean a savings and
    loan association, savings bank, credit union, or a bank
    organized under the laws of Illinois or a savings and loan
    association, savings bank, credit union or a bank organized
    under the laws of the United States and headquartered in
        (bb) "Escrow agent" shall mean a third party,
    individual or entity charged with the fiduciary obligation
    for holding escrow funds on a residential mortgage loan
    pending final payout of those funds in accordance with the
    terms of the residential mortgage loan.
        (cc) "Net worth" shall have the meaning ascribed
    thereto in Section 3-5 of this Act.
        (dd) "Affiliate" shall mean:
            (1) any entity that directly controls or is
        controlled by the licensee and any other company that
        is directly affecting activities regulated by this Act
        that is controlled by the company that controls the
            (2) any entity:
                (A) that is controlled, directly or
            indirectly, by a trust or otherwise, by or for the
            benefit of shareholders who beneficially or
            otherwise control, directly or indirectly, by
            trust or otherwise, the licensee or any company
            that controls the licensee; or
                (B) a majority of the directors or trustees of
            which constitute a majority of the persons holding
            any such office with the licensee or any company
            that controls the licensee;
            (3) any company, including a real estate
        investment trust, that is sponsored and advised on a
        contractual basis by the licensee or any subsidiary or
        affiliate of the licensee.
        (ee) "First tier subsidiary" shall be defined by
    regulation incorporating the comparable definitions used
    by the Office of the Comptroller of the Currency and the
    Illinois Commissioner of Banks and Real Estate.
        (ff) "Gross delinquency rate" means the quotient
    determined by dividing (1) the sum of (i) the number of
    government-insured residential mortgage loans funded or
    purchased by a licensee in the preceding calendar year that
    are delinquent and (ii) the number of conventional
    residential mortgage loans funded or purchased by the
    licensee in the preceding calendar year that are delinquent
    by (2) the sum of (i) the number of government-insured
    residential mortgage loans funded or purchased by the
    licensee in the preceding calendar year and (ii) the number
    of conventional residential mortgage loans funded or
    purchased by the licensee in the preceding calendar year.
        (gg) "Delinquency rate factor" means the factor set by
    rule of the Commissioner that is multiplied by the average
    gross delinquency rate of licensees, determined annually
    for the immediately preceding calendar year, for the
    purpose of determining which licensees shall be examined by
    the Commissioner pursuant to subsection (b) of Section 4-8
    of this Act.
        (hh) "Loan originator" means any natural person who,
    for compensation or in the expectation of compensation,
    either directly or indirectly makes, offers to make,
    solicits, places, or negotiates a residential mortgage
    loan. This definition applies only to Section 7-1 of this
        (ii) "Confidential supervisory information" means any
    report of examination, visitation, or investigation
    prepared by the Commissioner under this Act, any report of
    examination visitation, or investigation prepared by the
    state regulatory authority of another state that examines a
    licensee, any document or record prepared or obtained in
    connection with or relating to any examination,
    visitation, or investigation, and any record prepared or
    obtained by the Commissioner to the extent that the record
    summarizes or contains information derived from any
    report, document, or record described in this subsection.
    "Confidential supervisory information" does not include
    any information or record routinely prepared by a licensee
    and maintained in the ordinary course of business or any
    information or record that is required to be made publicly
    available pursuant to State or federal law or rule.
        (jj) "Mortgage loan originator" means an individual
    who for compensation or gain or in the expectation of
    compensation or gain:
            (i) takes a residential mortgage loan application;
            (ii) offers or negotiates terms of a residential
        mortgage loan.
        "Mortgage loan originator" includes an individual
    engaged in loan modification activities as defined in
    subsection (yy) of this Section. A mortgage loan originator
    engaged in loan modification activities shall report those
    activities to the Department of Financial and Professional
    Regulation in the manner provided by the Department;
    however, the Department shall not impose a fee for
    reporting, nor require any additional qualifications to
    engage in those activities beyond those provided pursuant
    to this Act for mortgage loan originators.
        "Mortgage loan originator" does not include an
    individual engaged solely as a loan processor or
    underwriter except as otherwise provided in subsection (d)
    of Section 7-1A of this Act.
        "Mortgage loan originator" does not include a person or
    entity that only performs real estate brokerage activities
    and is licensed in accordance with the Real Estate License
    Act of 2000, unless the person or entity is compensated by
    a lender, a mortgage broker, or other mortgage loan
    originator, or by any agent of that lender, mortgage
    broker, or other mortgage loan originator.
        "Mortgage loan originator" does not include a person or
    entity solely involved in extensions of credit relating to
    timeshare plans, as that term is defined in Section
    101(53D) of Title 11, United States Code.
        (kk) "Depository institution" has the same meaning as
    in Section 3 of the Federal Deposit Insurance Act, and
    includes any credit union.
        (ll) "Dwelling" means a residential structure or
    mobile home which contains one to 4 family housing units,
    or individual units of condominiums or cooperatives.
        (mm) "Immediate family member" means a spouse, child,
    sibling, parent, grandparent, or grandchild, and includes
    step-parents, step-children, step-siblings, or adoptive
        (nn) "Individual" means a natural person.
        (oo) "Loan processor or underwriter" means an
    individual who performs clerical or support duties as an
    employee at the direction of and subject to the supervision
    and instruction of a person licensed, or exempt from
    licensing, under this Act. "Clerical or support duties"
    includes subsequent to the receipt of an application:
            (i) the receipt, collection, distribution, and
        analysis of information common for the processing or
        underwriting of a residential mortgage loan; and
            (ii) communicating with a consumer to obtain the
        information necessary for the processing or
        underwriting of a loan, to the extent that the
        communication does not include offering or negotiating
        loan rates or terms, or counseling consumers about
        residential mortgage loan rates or terms. An
        individual engaging solely in loan processor or
        underwriter activities shall not represent to the
        public, through advertising or other means of
        communicating or providing information, including the
        use of business cards, stationery, brochures, signs,
        rate lists, or other promotional items, that the
        individual can or will perform any of the activities of
        a mortgage loan originator.
        (pp) "Nationwide Mortgage Licensing System and
    Registry" means a mortgage licensing system developed and
    maintained by the Conference of State Bank Supervisors and
    the American Association of Residential Mortgage
    Regulators for the licensing and registration of licensed
    mortgage loan originators.
        (qq) "Nontraditional mortgage product" means any
    mortgage product other than a 30-year fixed rate mortgage.
        (rr) "Person" means a natural person, corporation,
    company, limited liability company, partnership, or
        (ss) "Real estate brokerage activity" means any
    activity that involves offering or providing real estate
    brokerage services to the public, including:
            (1) acting as a real estate agent or real estate
        broker for a buyer, seller, lessor, or lessee of real
            (2) bringing together parties interested in the
        sale, purchase, lease, rental, or exchange of real
            (3) negotiating, on behalf of any party, any
        portion of a contract relating to the sale, purchase,
        lease, rental, or exchange of real property, other than
        in connection with providing financing with respect to
        any such transaction;
            (4) engaging in any activity for which a person
        engaged in the activity is required to be registered or
        licensed as a real estate agent or real estate broker
        under any applicable law; or
            (5) offering to engage in any activity, or act in
        any capacity, described in this subsection (ss).
        (tt) "Registered mortgage loan originator" means any
    individual that:
            (1) meets the definition of mortgage loan
        originator and is an employee of:
                (A) a depository institution;
                (B) a subsidiary that is:
                    (i) owned and controlled by a depository
                institution; and
                    (ii) regulated by a federal banking
                agency; or
                (C) an institution regulated by the Farm
            Credit Administration; and
            (2) is registered with, and maintains a unique
        identifier through, the Nationwide Mortgage Licensing
        System and Registry.
        (uu) "Unique identifier" means a number or other
    identifier assigned by protocols established by the
    Nationwide Mortgage Licensing System and Registry.
        (vv) "Residential mortgage license" means a license
    issued pursuant to Section 1-3, 2-2, or 2-6 of this Act.
        (ww) "Mortgage loan originator license" means a
    license issued pursuant to Section 7-1A, 7-3, or 7-6 of
    this Act.
        (xx) "Secretary" means the Secretary of the Department
    of Financial and Professional Regulation, or a person
    authorized by the Secretary or by this Act to act in the
    Secretary's stead.
        (yy) "Loan modification" means, for compensation or
    gain, either directly or indirectly offering or
    negotiating on behalf of a borrower or homeowner to adjust
    the terms of a residential mortgage loan in a manner not
    provided for in the original or previously modified
    mortgage loan.
        (zz) "Short sale facilitation" means, for compensation
    or gain, either directly or indirectly offering or
    negotiating on behalf of a borrower or homeowner to
    facilitate the sale of residential real estate subject to
    one or more residential mortgage loans or debts
    constituting liens on the property in which the proceeds
    from selling the residential real estate will fall short of
    the amount owed and the lien holders are contacted to agree
    to release their lien on the residential real estate and
    accept less than the full amount owed on the debt.
    The Commissioner may define by rule and regulation any
terms used in this Act for the efficient and clear
administration of this Act.
(Source: P.A. 98-749, eff. 7-16-14; 98-1081, eff. 1-1-15;
99-78, eff. 7-20-15.)
    (205 ILCS 635/4-1)  (from Ch. 17, par. 2324-1)
    Sec. 4-1. Commissioner of Banks and Real Estate; functions,
powers, and duties. The functions, powers, and duties of the
Commissioner of Banks and Real Estate shall include the
        (a) to issue or refuse to issue any license as provided
    by this Act;
        (b) to revoke or suspend for cause any license issued
    under this Act;
        (c) to keep records of all licenses issued under this
        (d) to receive, consider, investigate, and act upon
    complaints made by any person in connection with any
    residential mortgage licensee in this State;
        (e) (blank); to consider and act upon any
    recommendations from the Residential Mortgage Board;
        (f) to prescribe the forms of and receive:
            (1) applications for licenses; and
            (2) all reports and all books and records required
        to be made by any licensee under this Act, including
        annual audited financial statements and annual reports
        of mortgage activity;
        (g) to adopt rules and regulations necessary and proper
    for the administration of this Act;
        (h) to subpoena documents and witnesses and compel
    their attendance and production, to administer oaths, and
    to require the production of any books, papers, or other
    materials relevant to any inquiry authorized by this Act;
        (h-1) to issue orders against any person, if the
    Commissioner has reasonable cause to believe that an
    unsafe, unsound, or unlawful practice has occurred, is
    occurring, or is about to occur, if any person has
    violated, is violating, or is about to violate any law,
    rule, or written agreement with the Commissioner, or for
    the purpose of administering the provisions of this Act and
    any rule adopted in accordance with the Act;
        (h-2) to address any inquiries to any licensee, or the
    officers thereof, in relation to its activities and
    conditions, or any other matter connected with its affairs,
    and it shall be the duty of any licensee or person so
    addressed, to promptly reply in writing to such inquiries.
    The Commissioner may also require reports from any licensee
    at any time the Commissioner may deem desirable;
        (i) to require information with regard to any license
    applicant as he or she may deem desirable, with due regard
    to the paramount interests of the public as to the
    experience, background, honesty, truthfulness, integrity,
    and competency of the license applicant as to financial
    transactions involving primary or subordinate mortgage
    financing, and where the license applicant is an entity
    other than an individual, as to the honesty, truthfulness,
    integrity, and competency of any officer or director of the
    corporation, association, or other entity, or the members
    of a partnership;
        (j) to examine the books and records of every licensee
    under this Act at intervals as specified in Section 4-2;
        (k) to enforce provisions of this Act;
        (l) to levy fees, fines, and charges for services
    performed in administering this Act; the aggregate of all
    fees collected by the Commissioner on and after the
    effective date of this Act shall be paid promptly after
    receipt of the same, accompanied by a detailed statement
    thereof, into the Residential Finance Regulatory Fund
    under Section 4-1.5 of this Act; the amounts deposited into
    that Fund shall be used for the ordinary and contingent
    expenses of the Office of Banks and Real Estate. Nothing in
    this Act shall prevent continuing the practice of paying
    expenses involving salaries, retirement, social security,
    and State-paid insurance of State officers by
    appropriation from the General Revenue Fund.
        (m) to appoint examiners, supervisors, experts, and
    special assistants as needed to effectively and
    efficiently administer this Act;
        (n) to conduct hearings for the purpose of:
            (1) appeals of orders of the Commissioner;
            (2) suspensions or revocations of licenses, or
        fining of licensees;
            (3) investigating:
                (i) complaints against licensees; or
                (ii) annual gross delinquency rates; and
            (4) carrying out the purposes of this Act;
        (o) to exercise exclusive visitorial power over a
    licensee unless otherwise authorized by this Act or as
    vested in the courts, or upon prior consultation with the
    Commissioner, a foreign residential mortgage regulator
    with an appropriate supervisory interest in the parent or
    affiliate of a licensee;
        (p) to enter into cooperative agreements with state
    regulatory authorities of other states to provide for
    examination of corporate offices or branches of those
    states and to accept reports of such examinations;
        (q) to assign an examiner or examiners to monitor the
    affairs of a licensee with whatever frequency the
    Commissioner determines appropriate and to charge the
    licensee for reasonable and necessary expenses of the
    Commissioner, if in the opinion of the Commissioner an
    emergency exists or appears likely to occur;
        (r) to impose civil penalties of up to $50 per day
    against a licensee for failing to respond to a regulatory
    request or reporting requirement; and
        (s) to enter into agreements in connection with the
    Nationwide Mortgage Licensing System and Registry.
(Source: P.A. 98-1081, eff. 1-1-15.)
    (205 ILCS 635/4-8)  (from Ch. 17, par. 2324-8)
    Sec. 4-8. Delinquency; examination.
    (a) The Commissioner shall obtain from the U.S. Department
of Housing and Urban Development that Department's loan
delinquency data.
    (b) The Commissioner shall conduct as part of an
examination of each licensee a review of the licensee's loan
delinquency data.
    This subsection shall not be construed as a limitation of
the Commissioner's examination authority under Section 4-2 of
this Act or as otherwise provided in this Act. The Commissioner
may require a licensee to provide loan delinquency data as the
Commissioner deems necessary for the proper enforcement of the
    (c) The purpose of the examination under subsection (b)
shall be to determine whether the loan delinquency data of the
licensee has resulted from practices which deviate from sound
and accepted mortgage underwriting practices, including but
not limited to credit fraud, appraisal fraud and property
inspection fraud. For the purpose of conducting this
examination, the Commissioner may accept materials prepared
for the U.S. Department of Housing and Urban Development. At
the conclusion of the examination, the Commissioner shall make
his or her findings available to the Residential Mortgage
    (d) The Commissioner, at his or her discretion, may hold
public hearings, or at the direction of the Residential
Mortgage Board, shall hold public hearings. Such testimony
shall be by a homeowner or mortgagor or his agent, whose
residential interest is affected by the activities of the
residential mortgage licensee subject to such hearing. At such
public hearing, a witness may present testimony on his or her
behalf concerning only his or her home, or home mortgage or a
witness may authorize a third party to appear on his or her
behalf. The testimony shall be restricted to information and
comments related to a specific residence or specific
residential mortgage application or applications for a
residential mortgage or residential loan transaction. The
testimony must be preceded by either a letter of complaint or a
completed consumer complaint form prescribed by the
    (e) The Commissioner shall, at the conclusion of the public
hearings, release his or her findings and shall also make
public any action taken with respect to the licensee. The
Commissioner shall also give full consideration to the findings
of this examination whenever reapplication is made by the
licensee for a new license under this Act.
    (f) A licensee that is examined pursuant to subsection (b)
shall submit to the Commissioner a plan which shall be designed
to reduce that licensee's loan delinquencies. The plan shall be
implemented by the licensee as approved by the Commissioner. A
licensee that is examined pursuant to subsection (b) shall
report monthly, for a one year period, one, 2, and 3 month loan
    (g) Whenever the Commissioner finds that a licensee's loan
delinquencies on insured mortgages is unusually high within a
particular geographic area, he or she shall require that
licensee to submit such information as is necessary to
determine whether that licensee's practices have constituted
credit fraud, appraisal fraud or property inspection fraud. The
Commissioner shall promulgate such rules as are necessary to
determine whether any licensee's loan delinquencies are
unusually high within a particular area.
(Source: P.A. 99-15, eff. 1-1-16.)
    (205 ILCS 635/1-5 rep.)
    Section 20. The Residential Mortgage License Act of 1987 is
amended by repealing Section 1-5.
    Section 99. Effective date. This Act takes effect upon
becoming law.

Effective Date: 8/10/2018