Public Act 100-0783
Public Act 0783 100TH GENERAL ASSEMBLY
|
Public Act 100-0783
| | SB0748 Enrolled | LRB100 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 | loans. | (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 |
| Section. | (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 | foreclosure. | (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 | Illinois. | (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 | licensee; | (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 | Act. | (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; | or | (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 | relationships. | (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 | association. | (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 | property; | (2) bringing together parties interested in the | sale, purchase, lease, rental, or exchange of real |
| property; | (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 | following:
| (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 | Act;
| (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 | Act.
| (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 | Board.
| (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 | Commissioner.
| (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 | delinquencies.
| (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 |
Effective Date: 8/10/2018
|
Translate
