Public Act 102-0934
Public Act 0934 102ND GENERAL ASSEMBLY
|Public Act 102-0934|
|HB4410 Enrolled||LRB102 20964 RJF 29860 b|
AN ACT concerning State government.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
This Act may be cited as the
Estate Valuation Task Force Act.
The General Assembly finds and
declares the following:
(1) Two federal agencies, the Federal Home Owners'
Loan Corporation and the Federal Housing Administration,
played a major role in the development of the modern home
mortgage origination industry.
(2) Both federal agencies explicitly considered the
racial and ethnic make-up of neighborhoods when
underwriting loans and valuing the real estate to be used
as home loan collateral.
(3) Both agencies devalued property or refused to make
loans secured by property in communities of color.
(4) The harmful consequences of this discrimination
Real Estate Valuation Task Force.
(a) The Real Estate Valuation Task Force is hereby
(b) The Task Force shall consist of the following members:
(1) 4 members appointed one each by the Speaker of the
House of Representatives, the Minority Leader of the House
of Representatives, the President of the Senate, and the
Minority Leader of the Senate;
(2) the Secretary of Financial and Professional
Regulation, or a designee;
(3) the Director of Commerce and Economic Opportunity,
or a designee;
(4) the Director of Human Rights, or a designee;
(5) the Director of Revenue, or a designee;
(6) the Executive Director of the Illinois Housing
Development Authority, or a designee;
(7) a representative of a statewide banking
association representing banks of all asset sizes,
appointed by the Governor;
(8) a representative of a statewide banking
association exclusively representing banks with assets
below $20,000,000,000, appointed by the Governor;
(9) a representative of a statewide association
representing credit unions, appointed by the Governor;
(10) a representative of an agency, organization, or
association advocating for fair housing, appointed by the
(11) a representative of an agency, organization, or
association for consumer protection, appointed by the
(12) a representative of a statewide appraisal
organization, appointed by the Governor.
(c) Initial appointments to the Task Force shall be made
as soon as practicable after the effective date of this Act.
The Task Force shall hold its first meeting within a
reasonable period of time after the completion of the
appointment of its members, and shall convene regularly to
carry out its duties and submit the reports required under
this Act. At its first meeting, the Task Force shall elect its
chair and any other officers from among its members.
(d) Members of the Task Force shall serve without
(e) The Department of Financial and Professional
Regulation shall provide administrative and other support to
the Task Force. Each agency and entity represented on the Task
Force shall also share with the Task Force any data of the
agency or entity necessary for the Task Force to carry out its
duties under this Act.
Task Force duties.
(a) The Task Force shall have the following duties:
(1) harmonize to the greatest extent possible the
various collateral underwriting standards and guidance of
the agencies and entities represented on the Task Force
governing residential and commercial real estate
valuations, including standards and guidance with respect
to appraisals, non-traditional and alternative methods of
providing real estate property evaluations, such as
automated valuation models, processes, and procedures for
managing reconsiderations of value by consumers, and
standards and guidance with respect to common collateral
underwriting challenges, such as energy efficient housing
and limited or inactive markets;
(2) to the extent that standards or guidance described
under paragraph (1) are not harmonized, the Task Force
shall issue a report to the General Assembly explaining
why harmonization cannot or should not be implemented;
(3) establish specific definitions for limited or
inactive housing markets in which comparable sales are
limited or unavailable over a certain period of time, and
establish greater flexibilities and guidance for
appraisals and any underwriting processes associated with
appraisals conducted in such markets, such as the ability
to consider market evidence for similar properties in
other geographic areas or utilizing a range of value;
(4) aggregate data across Task Force members and
conduct a study to determine whether there are racial
disparities at both the borrower and community level in
the valuation and price of the residential real estate to
be used as collateral for mortgage applications processed
by Task Force members;
(5) identify specific causes of such racial
disparities and (i) adopt changes to address such causes;
or (ii) if the Task Force determines that additional
statutory authority is needed to adopt such changes, issue
a report to the General Assembly describing the needed
statutory authority; and
(6) evaluate whether there are any barriers to entry
that are disproportionately preventing minorities from
entering into the appraisal profession.
(b) In carrying out its duties under this Act, the Task
Force shall consult with the following individuals or
entities: (i) civil rights advocates; (ii) consumer advocates;
(iii) real estate appraisers; (iv) small lenders; (v) trade
groups; (vi) appraisal management companies; (vii) experts on
alternative valuation models; and (viii) an organization that
adopts appraisal standards and appraiser qualification
(a) The Task Force shall submit a report to the Governor
and the General Assembly not later than the expiration of the
24-month period beginning on the effective date of this Act
detailing the findings and any actions taken to further the
duties of the Task Force as of such time and describing any
planned efforts and activities.
(b) Periodically, after the submission of the initial
report under subsection (a), the Task Force shall submit
reports to the Governor and the General Assembly setting forth
updates of the findings and actions taken to further the
duties of the Task Force. The reports required under this
subsection (b) shall continue for the duration of the Task
Termination of Task Force; repeal.
(a) The Task Force shall terminate upon the expiration of
the 5-year period beginning on the effective date of this Act.
(b) This Act is repealed on January 1, 2029.
Effective Date: 1/1/2023