| Old | New | Differences | |
|---|---|---|---|
| 1 | - | Public Act 103-0156 | |
| 2 | 1 | HB2325 EnrolledLRB103 26311 BMS 52672 b HB2325 Enrolled LRB103 26311 BMS 52672 b | |
| 3 | 2 | HB2325 Enrolled LRB103 26311 BMS 52672 b | |
| 4 | - | AN ACT concerning regulation. | |
| 5 | - | Be it enacted by the People of the State of Illinois, | |
| 6 | - | represented in the General Assembly: | |
| 7 | - | Section 5. The Residential Mortgage License Act of 1987 is | |
| 8 | - | amended by changing Sections 1-3 and 1-4 and by adding Section | |
| 9 | - | 3-11 as follows: | |
| 10 | - | (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3) | |
| 11 | - | Sec. 1-3. Necessity for license; scope of Act. | |
| 12 | - | (a) No person, partnership, association, corporation or | |
| 13 | - | other entity shall engage in the business of brokering, | |
| 14 | - | funding, originating, servicing or purchasing of residential | |
| 15 | - | mortgage loans without first obtaining a license from the | |
| 16 | - | Secretary in accordance with the licensing procedure provided | |
| 17 | - | in this Article I and such regulations as may be promulgated by | |
| 18 | - | the Secretary. The licensing provisions of this Section shall | |
| 19 | - | not apply to any entity engaged solely in commercial mortgage | |
| 20 | - | lending or to any person, partnership association, corporation | |
| 21 | - | or other entity exempted pursuant to Section 1-4, subsection | |
| 22 | - | (d), of this Act or in accordance with regulations promulgated | |
| 23 | - | by the Secretary hereunder. No provision of this Act shall | |
| 24 | - | apply to an exempt person or entity as defined in items (1) and | |
| 25 | - | (1.5) of subsection (d) of Section 1-4 of this Act. | |
| 26 | - | Notwithstanding anything to the contrary in the preceding | |
| 3 | + | 1 AN ACT concerning regulation. | |
| 4 | + | 2 Be it enacted by the People of the State of Illinois, | |
| 5 | + | 3 represented in the General Assembly: | |
| 6 | + | 4 Section 5. The Residential Mortgage License Act of 1987 is | |
| 7 | + | 5 amended by changing Sections 1-3 and 1-4 and by adding Section | |
| 8 | + | 6 3-11 as follows: | |
| 9 | + | 7 (205 ILCS 635/1-3) (from Ch. 17, par. 2321-3) | |
| 10 | + | 8 Sec. 1-3. Necessity for license; scope of Act. | |
| 11 | + | 9 (a) No person, partnership, association, corporation or | |
| 12 | + | 10 other entity shall engage in the business of brokering, | |
| 13 | + | 11 funding, originating, servicing or purchasing of residential | |
| 14 | + | 12 mortgage loans without first obtaining a license from the | |
| 15 | + | 13 Secretary in accordance with the licensing procedure provided | |
| 16 | + | 14 in this Article I and such regulations as may be promulgated by | |
| 17 | + | 15 the Secretary. The licensing provisions of this Section shall | |
| 18 | + | 16 not apply to any entity engaged solely in commercial mortgage | |
| 19 | + | 17 lending or to any person, partnership association, corporation | |
| 20 | + | 18 or other entity exempted pursuant to Section 1-4, subsection | |
| 21 | + | 19 (d), of this Act or in accordance with regulations promulgated | |
| 22 | + | 20 by the Secretary hereunder. No provision of this Act shall | |
| 23 | + | 21 apply to an exempt person or entity as defined in items (1) and | |
| 24 | + | 22 (1.5) of subsection (d) of Section 1-4 of this Act. | |
| 25 | + | 23 Notwithstanding anything to the contrary in the preceding | |
| 27 | 26 | ||
| 28 | 27 | ||
| 29 | 28 | ||
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| 31 | 30 | ||
| 32 | 31 | ||
| 33 | - | sentence, an individual acting as a mortgage loan originator | |
| 34 | - | who is not employed by and acting for an entity described in | |
| 35 | - | item (1) of subsection (tt) of Section 1-4 of this Act shall be | |
| 36 | - | subject to the mortgage loan originator licensing requirements | |
| 37 | - | of Article VII of this Act. | |
| 38 | - | Effective January 1, 2011, no provision of this Act shall | |
| 39 | - | apply to an exempt person or entity as defined in item (1.8) of | |
| 40 | - | subsection (d) of Section 1-4 of this Act. Notwithstanding | |
| 41 | - | anything to the contrary in the preceding sentence, an | |
| 42 | - | individual acting as a mortgage loan originator who is not | |
| 43 | - | employed by and acting for an entity described in item (1) of | |
| 44 | - | subsection (tt) of Section 1-4 of this Act shall be subject to | |
| 45 | - | the mortgage loan originator licensing requirements of Article | |
| 46 | - | VII of this Act, and provided that an individual acting as a | |
| 47 | - | mortgage loan originator under item (1.8) of subsection (d) of | |
| 48 | - | Section 1-4 of this Act shall be further subject to a | |
| 49 | - | determination by the U.S. Department of Housing and Urban | |
| 50 | - | Development through final rulemaking or other authorized | |
| 51 | - | agency determination under the federal Secure and Fair | |
| 52 | - | Enforcement for Mortgage Licensing Act of 2008. | |
| 53 | - | (a-1) A person who is exempt from licensure pursuant to | |
| 54 | - | paragraph (ii) of item (1) of subsection (d) of Section 1-4 of | |
| 55 | - | this Act as a federally chartered savings bank that is | |
| 56 | - | registered with the Nationwide Multistate Licensing System and | |
| 57 | - | Registry may apply to the Secretary for an exempt company | |
| 58 | - | registration for the purpose of sponsoring one or more | |
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| 34 | + | 1 sentence, an individual acting as a mortgage loan originator | |
| 35 | + | 2 who is not employed by and acting for an entity described in | |
| 36 | + | 3 item (1) of subsection (tt) of Section 1-4 of this Act shall be | |
| 37 | + | 4 subject to the mortgage loan originator licensing requirements | |
| 38 | + | 5 of Article VII of this Act. | |
| 39 | + | 6 Effective January 1, 2011, no provision of this Act shall | |
| 40 | + | 7 apply to an exempt person or entity as defined in item (1.8) of | |
| 41 | + | 8 subsection (d) of Section 1-4 of this Act. Notwithstanding | |
| 42 | + | 9 anything to the contrary in the preceding sentence, an | |
| 43 | + | 10 individual acting as a mortgage loan originator who is not | |
| 44 | + | 11 employed by and acting for an entity described in item (1) of | |
| 45 | + | 12 subsection (tt) of Section 1-4 of this Act shall be subject to | |
| 46 | + | 13 the mortgage loan originator licensing requirements of Article | |
| 47 | + | 14 VII of this Act, and provided that an individual acting as a | |
| 48 | + | 15 mortgage loan originator under item (1.8) of subsection (d) of | |
| 49 | + | 16 Section 1-4 of this Act shall be further subject to a | |
| 50 | + | 17 determination by the U.S. Department of Housing and Urban | |
| 51 | + | 18 Development through final rulemaking or other authorized | |
| 52 | + | 19 agency determination under the federal Secure and Fair | |
| 53 | + | 20 Enforcement for Mortgage Licensing Act of 2008. | |
| 54 | + | 21 (a-1) A person who is exempt from licensure pursuant to | |
| 55 | + | 22 paragraph (ii) of item (1) of subsection (d) of Section 1-4 of | |
| 56 | + | 23 this Act as a federally chartered savings bank that is | |
| 57 | + | 24 registered with the Nationwide Multistate Licensing System and | |
| 58 | + | 25 Registry may apply to the Secretary for an exempt company | |
| 59 | + | 26 registration for the purpose of sponsoring one or more | |
| 59 | 60 | ||
| 60 | 61 | ||
| 61 | - | individuals subject to the mortgage loan originator licensing | |
| 62 | - | requirements of Article VII of this Act. Registration with the | |
| 63 | - | Division of Banking of the Department shall not affect the | |
| 64 | - | exempt status of the applicant. | |
| 65 | - | (1) A mortgage loan originator eligible for licensure | |
| 66 | - | under this subsection shall (A) be covered under an | |
| 67 | - | exclusive written contract with, and originate residential | |
| 68 | - | mortgage loans solely on behalf of, that exempt person; | |
| 69 | - | and (B) hold a current, valid insurance producer license | |
| 70 | - | under Article XXXI of the Illinois Insurance Code. | |
| 71 | - | (2) An exempt person shall: (A) fulfill any reporting | |
| 72 | - | requirements required by the Nationwide Multistate | |
| 73 | - | Licensing System and Registry or the Secretary; (B) | |
| 74 | - | provide a blanket surety bond pursuant to Section 7-12 of | |
| 75 | - | this Act covering the activities of all its sponsored | |
| 76 | - | mortgage loan originators; (C) reasonably supervise the | |
| 77 | - | activities of all its sponsored mortgage loan originators; | |
| 78 | - | (D) comply with all rules and orders (including the | |
| 79 | - | averments contained in Section 2-4 of this Act as | |
| 80 | - | applicable to a non-licensed exempt entity provided for in | |
| 81 | - | this Section) that the Secretary deems necessary to ensure | |
| 82 | - | compliance with the federal SAFE Act; and (E) pay an | |
| 83 | - | annual registration fee established by the Director. | |
| 84 | - | (3) The Secretary may deny an exempt company | |
| 85 | - | registration to an exempt person or fine, suspend, or | |
| 86 | - | revoke an exempt company registration if the Secretary | |
| 87 | 62 | ||
| 88 | 63 | ||
| 89 | - | finds one of the following: | |
| 90 | - | (A) that the exempt person is not a person of | |
| 91 | - | honesty, truthfulness, or good character; | |
| 92 | - | (B) that the exempt person violated any applicable | |
| 93 | - | law, rule, or order; | |
| 94 | - | (C) that the exempt person refused or failed to | |
| 95 | - | furnish, within a reasonable time, any information or | |
| 96 | - | make any report that may be required by the Secretary; | |
| 97 | - | (D) that the exempt person had a final judgment | |
| 98 | - | entered against him or her in a civil action on grounds | |
| 99 | - | of fraud, deceit, or misrepresentation, and the | |
| 100 | - | conduct on which the judgment is based indicates that | |
| 101 | - | it would be contrary to the interest of the public to | |
| 102 | - | permit the exempt person to manage a loan originator; | |
| 103 | - | (E) that the exempt person had an order entered | |
| 104 | - | against him or her involving fraud, deceit, or | |
| 105 | - | misrepresentation by an administrative agency of this | |
| 106 | - | State, the federal government, or any other state or | |
| 107 | - | territory of the United States, and the facts relating | |
| 108 | - | to the order indicate that it would be contrary to the | |
| 109 | - | interest of the public to permit the exempt person to | |
| 110 | - | manage a loan originator; | |
| 111 | - | (F) that the exempt person made a material | |
| 112 | - | misstatement or suppressed or withheld information on | |
| 113 | - | the application for an exempt company registration or | |
| 114 | - | any document required to be filed with the Secretary; | |
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| 115 | 66 | ||
| 116 | 67 | ||
| 117 | - | or | |
| 118 | - | (G) that the exempt person violated Section 4-5 of | |
| 119 | - | this Act. | |
| 120 | - | (a-5) An entity that is exempt from licensure pursuant to | |
| 121 | - | item (7) of subsection (d) of Section 1-4 of this Act as an | |
| 122 | - | independent loan processing entity shall annually apply to the | |
| 123 | - | Secretary through the Nationwide Multistate Licensing System | |
| 124 | - | and Registry for an exempt company registration for the | |
| 125 | - | purpose of sponsoring one or more individuals subject to the | |
| 126 | - | mortgage loan originator licensing requirements of Article VII | |
| 127 | - | of this Act. A loan processor who performs clerical or support | |
| 128 | - | duties at the direction of and subject to the supervision and | |
| 129 | - | instruction of a licensed mortgage loan originator sponsored | |
| 130 | - | by an independent loan processing entity shall be exempt from | |
| 131 | - | his or her own licensing as a mortgage loan originator. An | |
| 132 | - | independent loan processing entity shall not be subject to | |
| 133 | - | examination by the Secretary. The Secretary may adopt rules to | |
| 134 | - | implement any provisions necessary for the administration of | |
| 135 | - | this subsection. | |
| 136 | - | (b) No person, partnership, association, corporation, or | |
| 137 | - | other entity except a licensee under this Act or an entity | |
| 138 | - | exempt from licensing pursuant to Section 1-4, subsection (d), | |
| 139 | - | of this Act shall do any business under any name or title, or | |
| 140 | - | circulate or use any advertising or make any representation or | |
| 141 | - | give any information to any person, which indicates or | |
| 142 | - | reasonably implies activity within the scope of this Act. | |
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| 70 | + | 1 individuals subject to the mortgage loan originator licensing | |
| 71 | + | 2 requirements of Article VII of this Act. Registration with the | |
| 72 | + | 3 Division of Banking of the Department shall not affect the | |
| 73 | + | 4 exempt status of the applicant. | |
| 74 | + | 5 (1) A mortgage loan originator eligible for licensure | |
| 75 | + | 6 under this subsection shall (A) be covered under an | |
| 76 | + | 7 exclusive written contract with, and originate residential | |
| 77 | + | 8 mortgage loans solely on behalf of, that exempt person; | |
| 78 | + | 9 and (B) hold a current, valid insurance producer license | |
| 79 | + | 10 under Article XXXI of the Illinois Insurance Code. | |
| 80 | + | 11 (2) An exempt person shall: (A) fulfill any reporting | |
| 81 | + | 12 requirements required by the Nationwide Multistate | |
| 82 | + | 13 Licensing System and Registry or the Secretary; (B) | |
| 83 | + | 14 provide a blanket surety bond pursuant to Section 7-12 of | |
| 84 | + | 15 this Act covering the activities of all its sponsored | |
| 85 | + | 16 mortgage loan originators; (C) reasonably supervise the | |
| 86 | + | 17 activities of all its sponsored mortgage loan originators; | |
| 87 | + | 18 (D) comply with all rules and orders (including the | |
| 88 | + | 19 averments contained in Section 2-4 of this Act as | |
| 89 | + | 20 applicable to a non-licensed exempt entity provided for in | |
| 90 | + | 21 this Section) that the Secretary deems necessary to ensure | |
| 91 | + | 22 compliance with the federal SAFE Act; and (E) pay an | |
| 92 | + | 23 annual registration fee established by the Director. | |
| 93 | + | 24 (3) The Secretary may deny an exempt company | |
| 94 | + | 25 registration to an exempt person or fine, suspend, or | |
| 95 | + | 26 revoke an exempt company registration if the Secretary | |
| 143 | 96 | ||
| 144 | 97 | ||
| 145 | - | (c) The Secretary may, through the Attorney General, | |
| 146 | - | request the circuit court of either Cook or Sangamon County to | |
| 147 | - | issue an injunction to restrain any person from violating or | |
| 148 | - | continuing to violate any of the foregoing provisions of this | |
| 149 | - | Section. | |
| 150 | - | (d) When the Secretary has reasonable cause to believe | |
| 151 | - | that any entity which has not submitted an application for | |
| 152 | - | licensure is conducting any of the activities described in | |
| 153 | - | subsection (a) hereof, the Secretary shall have the power to | |
| 154 | - | examine all books and records of the entity and any additional | |
| 155 | - | documentation necessary in order to determine whether such | |
| 156 | - | entity should become licensed under this Act. | |
| 157 | - | (d-1) The Secretary may issue orders against any person if | |
| 158 | - | the Secretary has reasonable cause to believe that an unsafe, | |
| 159 | - | unsound, or unlawful practice has occurred, is occurring, or | |
| 160 | - | is about to occur, if any person has violated, is violating, or | |
| 161 | - | is about to violate any law, rule, or written agreement with | |
| 162 | - | the Secretary, or for the purposes of administering the | |
| 163 | - | provisions of this Act and any rule adopted in accordance with | |
| 164 | - | this Act. | |
| 165 | - | (e) Any person, partnership, association, corporation or | |
| 166 | - | other entity who violates any provision of this Section | |
| 167 | - | commits a business offense and shall be fined an amount not to | |
| 168 | - | exceed $25,000. A mortgage loan brokered, funded, originated, | |
| 169 | - | serviced, or purchased by a party who is not licensed under | |
| 170 | - | this Section shall not be held to be invalid solely on the | |
| 171 | 98 | ||
| 172 | 99 | ||
| 173 | - | basis of a violation under this Section. The changes made to | |
| 174 | - | this Section by Public Act 99-113 are declarative of existing | |
| 175 | - | law. | |
| 176 | - | (f) Each person, partnership, association, corporation or | |
| 177 | - | other entity conducting activities regulated by this Act shall | |
| 178 | - | be issued one license. Each full service office, place of | |
| 179 | - | business or location at which a residential mortgage licensee | |
| 180 | - | conducts any part of his or her business must be recorded with | |
| 181 | - | the Secretary pursuant to Section 2-8 of this Act. | |
| 182 | - | (g) Licensees under this Act shall solicit, broker, fund, | |
| 183 | - | originate, service and purchase residential mortgage loans | |
| 184 | - | only in conformity with the provisions of this Act and such | |
| 185 | - | rules and regulations as may be promulgated by the Secretary. | |
| 186 | - | (h) This Act applies to all entities doing business in | |
| 187 | - | Illinois as residential mortgage bankers, as defined by "An | |
| 188 | - | Act to provide for the regulation of mortgage bankers", | |
| 189 | - | approved September 15, 1977, as amended, regardless of whether | |
| 190 | - | licensed under that or any prior Act. Any existing residential | |
| 191 | - | mortgage lender or residential mortgage broker in Illinois | |
| 192 | - | whether or not previously licensed, must operate in accordance | |
| 193 | - | with this Act. | |
| 194 | - | (i) This Act is a successor Act to and a continuance of the | |
| 195 | - | regulation of residential mortgage bankers provided in "An Act | |
| 196 | - | to provide for the regulation of mortgage bankers", approved | |
| 197 | - | September 15, 1977, as amended. | |
| 198 | - | Entities and persons subject to the predecessor Act shall | |
| 100 | + | ||
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| 199 | 102 | ||
| 200 | 103 | ||
| 201 | - | be subject to this Act from and after its effective date. | |
| 202 | - | (Source: P.A. 100-851, eff. 8-14-18; 100-1153, eff. 12-19-18; | |
| 203 | - | 101-81, eff. 7-12-19.) | |
| 204 | - | (205 ILCS 635/1-4) | |
| 205 | - | Sec. 1-4. Definitions. The following words and phrases | |
| 206 | - | have the meanings given to them in this Section: | |
| 207 | - | (a) "Residential real property" or "residential real | |
| 208 | - | estate" shall mean any real property located in Illinois, | |
| 209 | - | upon which is constructed or intended to be constructed a | |
| 210 | - | dwelling. Those terms include a manufactured home as | |
| 211 | - | defined in subdivision (53) of Section 9-102 of the | |
| 212 | - | Uniform Commercial Code which is real property as defined | |
| 213 | - | in Section 5-35 of the Conveyance and Encumbrance of | |
| 214 | - | Manufactured Homes as Real Property and Severance Act. | |
| 215 | - | (b) "Making a residential mortgage loan" or "funding a | |
| 216 | - | residential mortgage loan" shall mean for compensation or | |
| 217 | - | gain, either directly or indirectly, advancing funds or | |
| 218 | - | making a commitment to advance funds to a loan applicant | |
| 219 | - | for a residential mortgage loan. | |
| 220 | - | (c) "Soliciting, processing, placing, or negotiating a | |
| 221 | - | residential mortgage loan" shall mean for compensation or | |
| 222 | - | gain, either directly or indirectly, accepting or offering | |
| 223 | - | to accept an application for a residential mortgage loan, | |
| 224 | - | assisting or offering to assist in the processing of an | |
| 225 | - | application for a residential mortgage loan on behalf of a | |
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| 106 | + | 1 finds one of the following: | |
| 107 | + | 2 (A) that the exempt person is not a person of | |
| 108 | + | 3 honesty, truthfulness, or good character; | |
| 109 | + | 4 (B) that the exempt person violated any applicable | |
| 110 | + | 5 law, rule, or order; | |
| 111 | + | 6 (C) that the exempt person refused or failed to | |
| 112 | + | 7 furnish, within a reasonable time, any information or | |
| 113 | + | 8 make any report that may be required by the Secretary; | |
| 114 | + | 9 (D) that the exempt person had a final judgment | |
| 115 | + | 10 entered against him or her in a civil action on grounds | |
| 116 | + | 11 of fraud, deceit, or misrepresentation, and the | |
| 117 | + | 12 conduct on which the judgment is based indicates that | |
| 118 | + | 13 it would be contrary to the interest of the public to | |
| 119 | + | 14 permit the exempt person to manage a loan originator; | |
| 120 | + | 15 (E) that the exempt person had an order entered | |
| 121 | + | 16 against him or her involving fraud, deceit, or | |
| 122 | + | 17 misrepresentation by an administrative agency of this | |
| 123 | + | 18 State, the federal government, or any other state or | |
| 124 | + | 19 territory of the United States, and the facts relating | |
| 125 | + | 20 to the order indicate that it would be contrary to the | |
| 126 | + | 21 interest of the public to permit the exempt person to | |
| 127 | + | 22 manage a loan originator; | |
| 128 | + | 23 (F) that the exempt person made a material | |
| 129 | + | 24 misstatement or suppressed or withheld information on | |
| 130 | + | 25 the application for an exempt company registration or | |
| 131 | + | 26 any document required to be filed with the Secretary; | |
| 226 | 132 | ||
| 227 | 133 | ||
| 228 | - | borrower, or negotiating or offering to negotiate the | |
| 229 | - | terms or conditions of a residential mortgage loan with a | |
| 230 | - | lender on behalf of a borrower including, but not limited | |
| 231 | - | to, the submission of credit packages for the approval of | |
| 232 | - | lenders, the preparation of residential mortgage loan | |
| 233 | - | closing documents, including a closing in the name of a | |
| 234 | - | broker. | |
| 235 | - | (d) "Exempt person or entity" shall mean the | |
| 236 | - | following: | |
| 237 | - | (1) (i) Any banking organization or foreign | |
| 238 | - | banking corporation licensed by the Illinois | |
| 239 | - | Commissioner of Banks and Real Estate or the United | |
| 240 | - | States Comptroller of the Currency to transact | |
| 241 | - | business in this State; (ii) any national bank, | |
| 242 | - | federally chartered savings and loan association, | |
| 243 | - | federal savings bank, federal credit union; (iii) | |
| 244 | - | (blank); (iv) any bank, savings and loan association, | |
| 245 | - | savings bank, or credit union organized under the laws | |
| 246 | - | of this or any other state; (v) any Illinois Consumer | |
| 247 | - | Installment Loan Act licensee; (vi) any insurance | |
| 248 | - | company authorized to transact business in this State; | |
| 249 | - | (vii) any entity engaged solely in commercial mortgage | |
| 250 | - | lending; (viii) any service corporation of a savings | |
| 251 | - | and loan association or savings bank organized under | |
| 252 | - | the laws of this State or the service corporation of a | |
| 253 | - | federally chartered savings and loan association or | |
| 254 | 134 | ||
| 255 | 135 | ||
| 256 | - | savings bank having its principal place of business in | |
| 257 | - | this State, other than a service corporation licensed | |
| 258 | - | or entitled to reciprocity under the Real Estate | |
| 259 | - | License Act of 2000; or (ix) any first tier subsidiary | |
| 260 | - | of a bank, the charter of which is issued under the | |
| 261 | - | Illinois Banking Act by the Illinois Commissioner of | |
| 262 | - | Banks and Real Estate, or the first tier subsidiary of | |
| 263 | - | a bank chartered by the United States Comptroller of | |
| 264 | - | the Currency and that has its principal place of | |
| 265 | - | business in this State, provided that the first tier | |
| 266 | - | subsidiary is regularly examined by the Illinois | |
| 267 | - | Commissioner of Banks and Real Estate or the | |
| 268 | - | Comptroller of the Currency, or a consumer compliance | |
| 269 | - | examination is regularly conducted by the Federal | |
| 270 | - | Reserve Board. | |
| 271 | - | (1.5) Any employee of a person or entity mentioned | |
| 272 | - | in item (1) of this subsection, when acting for such | |
| 273 | - | person or entity, or any registered mortgage loan | |
| 274 | - | originator when acting for an entity described in | |
| 275 | - | subsection (tt) of this Section. | |
| 276 | - | (1.8) Any person or entity that does not originate | |
| 277 | - | mortgage loans in the ordinary course of business, but | |
| 278 | - | makes or acquires residential mortgage loans with his | |
| 279 | - | or her own funds for his or her or its own investment | |
| 280 | - | without intent to make, acquire, or resell more than 3 | |
| 281 | - | residential mortgage loans in any one calendar year. | |
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| 282 | 138 | ||
| 283 | 139 | ||
| 284 | - | (2) (Blank). | |
| 285 | - | (2.1) A bona fide nonprofit organization. | |
| 286 | - | (2.2) An employee of a bona fide nonprofit | |
| 287 | - | organization when acting on behalf of that | |
| 288 | - | organization. | |
| 289 | - | (3) Any person employed by a licensee to assist in | |
| 290 | - | the performance of the residential mortgage licensee's | |
| 291 | - | activities regulated by this Act who is compensated in | |
| 292 | - | any manner by only one licensee. | |
| 293 | - | (4) (Blank). | |
| 294 | - | (5) Any individual, corporation, partnership, or | |
| 295 | - | other entity that originates, services, or brokers | |
| 296 | - | residential mortgage loans, as these activities are | |
| 297 | - | defined in this Act, and who or which receives no | |
| 298 | - | compensation for those activities, subject to the | |
| 299 | - | Commissioner's regulations and the federal Secure and | |
| 300 | - | Fair Enforcement for Mortgage Licensing Act of 2008 | |
| 301 | - | and the rules promulgated under that Act with regard | |
| 302 | - | to the nature and amount of compensation. | |
| 303 | - | (6) (Blank). | |
| 304 | - | (7) Any entity engaged solely in providing loan | |
| 305 | - | processing services through the sponsoring of | |
| 306 | - | individuals acting pursuant to subsection (d) of | |
| 307 | - | Section 7-1A of this Act. | |
| 308 | - | (e) "Licensee" or "residential mortgage licensee" | |
| 309 | - | shall mean a person, partnership, association, | |
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| 142 | + | 1 or | |
| 143 | + | 2 (G) that the exempt person violated Section 4-5 of | |
| 144 | + | 3 this Act. | |
| 145 | + | 4 (a-5) An entity that is exempt from licensure pursuant to | |
| 146 | + | 5 item (7) of subsection (d) of Section 1-4 of this Act as an | |
| 147 | + | 6 independent loan processing entity shall annually apply to the | |
| 148 | + | 7 Secretary through the Nationwide Multistate Licensing System | |
| 149 | + | 8 and Registry for an exempt company registration for the | |
| 150 | + | 9 purpose of sponsoring one or more individuals subject to the | |
| 151 | + | 10 mortgage loan originator licensing requirements of Article VII | |
| 152 | + | 11 of this Act. A loan processor who performs clerical or support | |
| 153 | + | 12 duties at the direction of and subject to the supervision and | |
| 154 | + | 13 instruction of a licensed mortgage loan originator sponsored | |
| 155 | + | 14 by an independent loan processing entity shall be exempt from | |
| 156 | + | 15 his or her own licensing as a mortgage loan originator. An | |
| 157 | + | 16 independent loan processing entity shall not be subject to | |
| 158 | + | 17 examination by the Secretary. The Secretary may adopt rules to | |
| 159 | + | 18 implement any provisions necessary for the administration of | |
| 160 | + | 19 this subsection. | |
| 161 | + | 20 (b) No person, partnership, association, corporation, or | |
| 162 | + | 21 other entity except a licensee under this Act or an entity | |
| 163 | + | 22 exempt from licensing pursuant to Section 1-4, subsection (d), | |
| 164 | + | 23 of this Act shall do any business under any name or title, or | |
| 165 | + | 24 circulate or use any advertising or make any representation or | |
| 166 | + | 25 give any information to any person, which indicates or | |
| 167 | + | 26 reasonably implies activity within the scope of this Act. | |
| 310 | 168 | ||
| 311 | 169 | ||
| 312 | - | corporation, or any other entity who or which is licensed | |
| 313 | - | pursuant to this Act to engage in the activities regulated | |
| 314 | - | by this Act. | |
| 315 | - | (f) "Mortgage loan" "residential mortgage loan" or | |
| 316 | - | "home mortgage loan" shall mean any loan primarily for | |
| 317 | - | personal, family, or household use that is secured by a | |
| 318 | - | mortgage, deed of trust, or other equivalent consensual | |
| 319 | - | security interest on a dwelling as defined in Section | |
| 320 | - | 103(v) of the federal Truth in Lending Act, or residential | |
| 321 | - | real estate upon which is constructed or intended to be | |
| 322 | - | constructed a dwelling. | |
| 323 | - | (g) "Lender" shall mean any person, partnership, | |
| 324 | - | association, corporation, or any other entity who either | |
| 325 | - | lends or invests money in residential mortgage loans. | |
| 326 | - | (h) "Ultimate equitable owner" shall mean a person | |
| 327 | - | who, directly or indirectly, owns or controls an ownership | |
| 328 | - | interest in a corporation, foreign corporation, alien | |
| 329 | - | business organization, trust, or any other form of | |
| 330 | - | business organization regardless of whether the person | |
| 331 | - | owns or controls the ownership interest through one or | |
| 332 | - | more persons or one or more proxies, powers of attorney, | |
| 333 | - | nominees, corporations, associations, partnerships, | |
| 334 | - | trusts, joint stock companies, or other entities or | |
| 335 | - | devices, or any combination thereof. | |
| 336 | - | (i) "Residential mortgage financing transaction" shall | |
| 337 | - | mean the negotiation, acquisition, sale, or arrangement | |
| 338 | 170 | ||
| 339 | 171 | ||
| 340 | - | for or the offer to negotiate, acquire, sell, or arrange | |
| 341 | - | for, a residential mortgage loan or residential mortgage | |
| 342 | - | loan commitment. | |
| 343 | - | (j) "Personal residence address" shall mean a street | |
| 344 | - | address and shall not include a post office box number. | |
| 345 | - | (k) "Residential mortgage loan commitment" shall mean | |
| 346 | - | a contract for residential mortgage loan financing. | |
| 347 | - | (l) "Party to a residential mortgage financing | |
| 348 | - | transaction" shall mean a borrower, lender, or loan broker | |
| 349 | - | in a residential mortgage financing transaction. | |
| 350 | - | (m) "Payments" shall mean payment of all or any of the | |
| 351 | - | following: principal, interest and escrow reserves for | |
| 352 | - | taxes, insurance and other related reserves, and | |
| 353 | - | reimbursement for lender advances. | |
| 354 | - | (n) "Commissioner" shall mean the Commissioner of | |
| 355 | - | Banks and Real Estate, except that, beginning on April 6, | |
| 356 | - | 2009 (the effective date of Public Act 95-1047), all | |
| 357 | - | references in this Act to the Commissioner of Banks and | |
| 358 | - | Real Estate are deemed, in appropriate contexts, to be | |
| 359 | - | references to the Secretary of Financial and Professional | |
| 360 | - | Regulation, or his or her designee, including the Director | |
| 361 | - | of the Division of Banking of the Department of Financial | |
| 362 | - | and Professional Regulation. | |
| 363 | - | (n-1) "Director" shall mean the Director of the | |
| 364 | - | Division of Banking of the Department of Financial and | |
| 365 | - | Professional Regulation, except that, beginning on July | |
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| 367 | 175 | ||
| 368 | - | 31, 2009 (the effective date of Public Act 96-112), all | |
| 369 | - | references in this Act to the Director are deemed, in | |
| 370 | - | appropriate contexts, to be the Secretary of Financial and | |
| 371 | - | Professional Regulation, or his or her designee, including | |
| 372 | - | the Director of the Division of Banking of the Department | |
| 373 | - | of Financial and Professional Regulation. | |
| 374 | - | (o) "Loan brokering", "brokering", or "brokerage | |
| 375 | - | service" shall mean the act of helping to obtain from | |
| 376 | - | another entity, for a borrower, a loan secured by | |
| 377 | - | residential real estate situated in Illinois or assisting | |
| 378 | - | a borrower in obtaining a loan secured by residential real | |
| 379 | - | estate situated in Illinois in return for consideration to | |
| 380 | - | be paid by either the borrower or the lender including, | |
| 381 | - | but not limited to, contracting for the delivery of | |
| 382 | - | residential mortgage loans to a third party lender and | |
| 383 | - | soliciting, processing, placing, or negotiating | |
| 384 | - | residential mortgage loans. | |
| 385 | - | (p) "Loan broker" or "broker" shall mean a person, | |
| 386 | - | partnership, association, corporation, or limited | |
| 387 | - | liability company, other than those persons, partnerships, | |
| 388 | - | associations, corporations, or limited liability companies | |
| 389 | - | exempted from licensing pursuant to Section 1-4, | |
| 390 | - | subsection (d), of this Act, who performs the activities | |
| 391 | - | described in subsections (c), (o), and (yy) of this | |
| 392 | - | Section. | |
| 393 | - | (q) "Servicing" shall mean the collection or | |
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| 178 | + | 1 (c) The Secretary may, through the Attorney General, | |
| 179 | + | 2 request the circuit court of either Cook or Sangamon County to | |
| 180 | + | 3 issue an injunction to restrain any person from violating or | |
| 181 | + | 4 continuing to violate any of the foregoing provisions of this | |
| 182 | + | 5 Section. | |
| 183 | + | 6 (d) When the Secretary has reasonable cause to believe | |
| 184 | + | 7 that any entity which has not submitted an application for | |
| 185 | + | 8 licensure is conducting any of the activities described in | |
| 186 | + | 9 subsection (a) hereof, the Secretary shall have the power to | |
| 187 | + | 10 examine all books and records of the entity and any additional | |
| 188 | + | 11 documentation necessary in order to determine whether such | |
| 189 | + | 12 entity should become licensed under this Act. | |
| 190 | + | 13 (d-1) The Secretary may issue orders against any person if | |
| 191 | + | 14 the Secretary has reasonable cause to believe that an unsafe, | |
| 192 | + | 15 unsound, or unlawful practice has occurred, is occurring, or | |
| 193 | + | 16 is about to occur, if any person has violated, is violating, or | |
| 194 | + | 17 is about to violate any law, rule, or written agreement with | |
| 195 | + | 18 the Secretary, or for the purposes of administering the | |
| 196 | + | 19 provisions of this Act and any rule adopted in accordance with | |
| 197 | + | 20 this Act. | |
| 198 | + | 21 (e) Any person, partnership, association, corporation or | |
| 199 | + | 22 other entity who violates any provision of this Section | |
| 200 | + | 23 commits a business offense and shall be fined an amount not to | |
| 201 | + | 24 exceed $25,000. A mortgage loan brokered, funded, originated, | |
| 202 | + | 25 serviced, or purchased by a party who is not licensed under | |
| 203 | + | 26 this Section shall not be held to be invalid solely on the | |
| 394 | 204 | ||
| 395 | 205 | ||
| 396 | - | remittance for or the right or obligation to collect or | |
| 397 | - | remit for any lender, noteowner, noteholder, or for a | |
| 398 | - | licensee's own account, of payments, interests, principal, | |
| 399 | - | and trust items such as hazard insurance and taxes on a | |
| 400 | - | residential mortgage loan in accordance with the terms of | |
| 401 | - | the residential mortgage loan; and includes loan payment | |
| 402 | - | follow-up, delinquency loan follow-up, loan analysis and | |
| 403 | - | any notifications to the borrower that are necessary to | |
| 404 | - | enable the borrower to keep the loan current and in good | |
| 405 | - | standing. "Servicing" includes management of third-party | |
| 406 | - | entities acting on behalf of a residential mortgage | |
| 407 | - | licensee for the collection of delinquent payments and the | |
| 408 | - | use by such third-party entities of said licensee's | |
| 409 | - | servicing records or information, including their use in | |
| 410 | - | foreclosure. | |
| 411 | - | (r) "Full service office" shall mean an office, | |
| 412 | - | provided by the licensee and not subleased from the | |
| 413 | - | licensee's employees or independent contractors, and staff | |
| 414 | - | in Illinois reasonably adequate to handle efficiently | |
| 415 | - | communications, questions, and other matters relating to | |
| 416 | - | any application for, or an existing home mortgage secured | |
| 417 | - | by residential real estate situated in Illinois with | |
| 418 | - | respect to which the licensee is brokering, funding | |
| 419 | - | originating, purchasing, or servicing. The management and | |
| 420 | - | operation of each full service office must include | |
| 421 | - | observance of good business practices such as proper | |
| 422 | 206 | ||
| 423 | 207 | ||
| 424 | - | signage; adequate, organized, and accurate books and | |
| 425 | - | records; ample phone lines, hours of business, staff | |
| 426 | - | training and supervision, and provision for a mechanism to | |
| 427 | - | resolve consumer inquiries, complaints, and problems. The | |
| 428 | - | Commissioner shall issue regulations with regard to these | |
| 429 | - | requirements and shall include an evaluation of compliance | |
| 430 | - | with this Section in his or her periodic examination of | |
| 431 | - | each licensee. "Full service office" does not include a | |
| 432 | - | remote location. | |
| 433 | - | (s) "Purchasing" shall mean the purchase of | |
| 434 | - | conventional or government-insured mortgage loans secured | |
| 435 | - | by residential real estate situated in Illinois from | |
| 436 | - | either the lender or from the secondary market. | |
| 437 | - | (t) "Borrower" shall mean the person or persons who | |
| 438 | - | seek the services of a loan broker, originator, or lender. | |
| 439 | - | (u) "Originating" shall mean the issuing of | |
| 440 | - | commitments for and funding of residential mortgage loans. | |
| 441 | - | (v) "Loan brokerage agreement" shall mean a written | |
| 442 | - | agreement in which a broker or loan broker agrees to do | |
| 443 | - | either of the following: | |
| 444 | - | (1) obtain a residential mortgage loan for the | |
| 445 | - | borrower or assist the borrower in obtaining a | |
| 446 | - | residential mortgage loan; or | |
| 447 | - | (2) consider making a residential mortgage loan to | |
| 448 | - | the borrower. | |
| 449 | - | (w) "Advertisement" shall mean the attempt by | |
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| 450 | 210 | ||
| 451 | 211 | ||
| 452 | - | publication, dissemination, or circulation to induce, | |
| 453 | - | directly or indirectly, any person to enter into a | |
| 454 | - | residential mortgage loan agreement or residential | |
| 455 | - | mortgage loan brokerage agreement relative to a mortgage | |
| 456 | - | secured by residential real estate situated in Illinois. | |
| 457 | - | (x) (Blank). | |
| 458 | - | (y) "Government-insured mortgage loan" shall mean any | |
| 459 | - | mortgage loan made on the security of residential real | |
| 460 | - | estate insured by the Department of Housing and Urban | |
| 461 | - | Development or Farmers Home Loan Administration, or | |
| 462 | - | guaranteed by the Veterans Administration. | |
| 463 | - | (z) "Annual audit" shall mean a certified audit of the | |
| 464 | - | licensee's books and records and systems of internal | |
| 465 | - | control performed by a certified public accountant in | |
| 466 | - | accordance with generally accepted accounting principles | |
| 467 | - | and generally accepted auditing standards. | |
| 468 | - | (aa) "Financial institution" shall mean a savings and | |
| 469 | - | loan association, savings bank, credit union, or a bank | |
| 470 | - | organized under the laws of Illinois or a savings and loan | |
| 471 | - | association, savings bank, credit union or a bank | |
| 472 | - | organized under the laws of the United States and | |
| 473 | - | headquartered in Illinois. | |
| 474 | - | (bb) "Escrow agent" shall mean a third party, | |
| 475 | - | individual or entity charged with the fiduciary obligation | |
| 476 | - | for holding escrow funds on a residential mortgage loan | |
| 477 | - | pending final payout of those funds in accordance with the | |
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| 214 | + | 1 basis of a violation under this Section. The changes made to | |
| 215 | + | 2 this Section by Public Act 99-113 are declarative of existing | |
| 216 | + | 3 law. | |
| 217 | + | 4 (f) Each person, partnership, association, corporation or | |
| 218 | + | 5 other entity conducting activities regulated by this Act shall | |
| 219 | + | 6 be issued one license. Each full service office, place of | |
| 220 | + | 7 business or location at which a residential mortgage licensee | |
| 221 | + | 8 conducts any part of his or her business must be recorded with | |
| 222 | + | 9 the Secretary pursuant to Section 2-8 of this Act. | |
| 223 | + | 10 (g) Licensees under this Act shall solicit, broker, fund, | |
| 224 | + | 11 originate, service and purchase residential mortgage loans | |
| 225 | + | 12 only in conformity with the provisions of this Act and such | |
| 226 | + | 13 rules and regulations as may be promulgated by the Secretary. | |
| 227 | + | 14 (h) This Act applies to all entities doing business in | |
| 228 | + | 15 Illinois as residential mortgage bankers, as defined by "An | |
| 229 | + | 16 Act to provide for the regulation of mortgage bankers", | |
| 230 | + | 17 approved September 15, 1977, as amended, regardless of whether | |
| 231 | + | 18 licensed under that or any prior Act. Any existing residential | |
| 232 | + | 19 mortgage lender or residential mortgage broker in Illinois | |
| 233 | + | 20 whether or not previously licensed, must operate in accordance | |
| 234 | + | 21 with this Act. | |
| 235 | + | 22 (i) This Act is a successor Act to and a continuance of the | |
| 236 | + | 23 regulation of residential mortgage bankers provided in "An Act | |
| 237 | + | 24 to provide for the regulation of mortgage bankers", approved | |
| 238 | + | 25 September 15, 1977, as amended. | |
| 239 | + | 26 Entities and persons subject to the predecessor Act shall | |
| 478 | 240 | ||
| 479 | 241 | ||
| 480 | - | terms of the residential mortgage loan. | |
| 481 | - | (cc) "Net worth" shall have the meaning ascribed | |
| 482 | - | thereto in Section 3-5 of this Act. | |
| 483 | - | (dd) "Affiliate" shall mean: | |
| 484 | - | (1) any entity that directly controls or is | |
| 485 | - | controlled by the licensee and any other company that | |
| 486 | - | is directly affecting activities regulated by this Act | |
| 487 | - | that is controlled by the company that controls the | |
| 488 | - | licensee; | |
| 489 | - | (2) any entity: | |
| 490 | - | (A) that is controlled, directly or | |
| 491 | - | indirectly, by a trust or otherwise, by or for the | |
| 492 | - | benefit of shareholders who beneficially or | |
| 493 | - | otherwise control, directly or indirectly, by | |
| 494 | - | trust or otherwise, the licensee or any company | |
| 495 | - | that controls the licensee; or | |
| 496 | - | (B) a majority of the directors or trustees of | |
| 497 | - | which constitute a majority of the persons holding | |
| 498 | - | any such office with the licensee or any company | |
| 499 | - | that controls the licensee; | |
| 500 | - | (3) any company, including a real estate | |
| 501 | - | investment trust, that is sponsored and advised on a | |
| 502 | - | contractual basis by the licensee or any subsidiary or | |
| 503 | - | affiliate of the licensee. | |
| 504 | - | (ee) "First tier subsidiary" shall be defined by | |
| 505 | - | regulation incorporating the comparable definitions used | |
| 506 | 242 | ||
| 507 | 243 | ||
| 508 | - | by the Office of the Comptroller of the Currency and the | |
| 509 | - | Illinois Commissioner of Banks and Real Estate. | |
| 510 | - | (ff) "Gross delinquency rate" means the quotient | |
| 511 | - | determined by dividing (1) the sum of (i) the number of | |
| 512 | - | government-insured residential mortgage loans funded or | |
| 513 | - | purchased by a licensee in the preceding calendar year | |
| 514 | - | that are delinquent and (ii) the number of conventional | |
| 515 | - | residential mortgage loans funded or purchased by the | |
| 516 | - | licensee in the preceding calendar year that are | |
| 517 | - | delinquent by (2) the sum of (i) the number of | |
| 518 | - | government-insured residential mortgage loans funded or | |
| 519 | - | purchased by the licensee in the preceding calendar year | |
| 520 | - | and (ii) the number of conventional residential mortgage | |
| 521 | - | loans funded or purchased by the licensee in the preceding | |
| 522 | - | calendar year. | |
| 523 | - | (gg) "Delinquency rate factor" means the factor set by | |
| 524 | - | rule of the Commissioner that is multiplied by the average | |
| 525 | - | gross delinquency rate of licensees, determined annually | |
| 526 | - | for the immediately preceding calendar year, for the | |
| 527 | - | purpose of determining which licensees shall be examined | |
| 528 | - | by the Commissioner pursuant to subsection (b) of Section | |
| 529 | - | 4-8 of this Act. | |
| 530 | - | (hh) (Blank). | |
| 531 | - | (ii) "Confidential supervisory information" means any | |
| 532 | - | report of examination, visitation, or investigation | |
| 533 | - | prepared by the Commissioner under this Act, any report of | |
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| 534 | 246 | ||
| 535 | 247 | ||
| 536 | - | examination visitation, or investigation prepared by the | |
| 537 | - | state regulatory authority of another state that examines | |
| 538 | - | a licensee, any document or record prepared or obtained in | |
| 539 | - | connection with or relating to any examination, | |
| 540 | - | visitation, or investigation, and any record prepared or | |
| 541 | - | obtained by the Commissioner to the extent that the record | |
| 542 | - | summarizes or contains information derived from any | |
| 543 | - | report, document, or record described in this subsection. | |
| 544 | - | "Confidential supervisory information" does not include | |
| 545 | - | any information or record routinely prepared by a licensee | |
| 546 | - | and maintained in the ordinary course of business or any | |
| 547 | - | information or record that is required to be made publicly | |
| 548 | - | available pursuant to State or federal law or rule. | |
| 549 | - | (jj) "Mortgage loan originator" means an individual | |
| 550 | - | who for compensation or gain or in the expectation of | |
| 551 | - | compensation or gain: | |
| 552 | - | (i) takes a residential mortgage loan application; | |
| 553 | - | or | |
| 554 | - | (ii) offers or negotiates terms of a residential | |
| 555 | - | mortgage loan. | |
| 556 | - | "Mortgage loan originator" includes an individual | |
| 557 | - | engaged in loan modification activities as defined in | |
| 558 | - | subsection (yy) of this Section. A mortgage loan | |
| 559 | - | originator engaged in loan modification activities shall | |
| 560 | - | report those activities to the Department of Financial and | |
| 561 | - | Professional Regulation in the manner provided by the | |
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| 250 | + | 1 be subject to this Act from and after its effective date. | |
| 251 | + | 2 (Source: P.A. 100-851, eff. 8-14-18; 100-1153, eff. 12-19-18; | |
| 252 | + | 3 101-81, eff. 7-12-19.) | |
| 253 | + | 4 (205 ILCS 635/1-4) | |
| 254 | + | 5 Sec. 1-4. Definitions. The following words and phrases | |
| 255 | + | 6 have the meanings given to them in this Section: | |
| 256 | + | 7 (a) "Residential real property" or "residential real | |
| 257 | + | 8 estate" shall mean any real property located in Illinois, | |
| 258 | + | 9 upon which is constructed or intended to be constructed a | |
| 259 | + | 10 dwelling. Those terms include a manufactured home as | |
| 260 | + | 11 defined in subdivision (53) of Section 9-102 of the | |
| 261 | + | 12 Uniform Commercial Code which is real property as defined | |
| 262 | + | 13 in Section 5-35 of the Conveyance and Encumbrance of | |
| 263 | + | 14 Manufactured Homes as Real Property and Severance Act. | |
| 264 | + | 15 (b) "Making a residential mortgage loan" or "funding a | |
| 265 | + | 16 residential mortgage loan" shall mean for compensation or | |
| 266 | + | 17 gain, either directly or indirectly, advancing funds or | |
| 267 | + | 18 making a commitment to advance funds to a loan applicant | |
| 268 | + | 19 for a residential mortgage loan. | |
| 269 | + | 20 (c) "Soliciting, processing, placing, or negotiating a | |
| 270 | + | 21 residential mortgage loan" shall mean for compensation or | |
| 271 | + | 22 gain, either directly or indirectly, accepting or offering | |
| 272 | + | 23 to accept an application for a residential mortgage loan, | |
| 273 | + | 24 assisting or offering to assist in the processing of an | |
| 274 | + | 25 application for a residential mortgage loan on behalf of a | |
| 562 | 275 | ||
| 563 | 276 | ||
| 564 | - | Department; however, the Department shall not impose a fee | |
| 565 | - | for reporting, nor require any additional qualifications | |
| 566 | - | to engage in those activities beyond those provided | |
| 567 | - | pursuant to this Act for mortgage loan originators. | |
| 568 | - | "Mortgage loan originator" does not include an | |
| 569 | - | individual engaged solely as a loan processor or | |
| 570 | - | underwriter except as otherwise provided in subsection (d) | |
| 571 | - | of Section 7-1A of this Act. | |
| 572 | - | "Mortgage loan originator" does not include a person | |
| 573 | - | or entity that only performs real estate brokerage | |
| 574 | - | activities and is licensed in accordance with the Real | |
| 575 | - | Estate License Act of 2000, unless the person or entity is | |
| 576 | - | compensated by a lender, a mortgage broker, or other | |
| 577 | - | mortgage loan originator, or by any agent of that lender, | |
| 578 | - | mortgage broker, or other mortgage loan originator. | |
| 579 | - | "Mortgage loan originator" does not include a person | |
| 580 | - | or entity solely involved in extensions of credit relating | |
| 581 | - | to timeshare plans, as that term is defined in Section | |
| 582 | - | 101(53D) of Title 11, United States Code. | |
| 583 | - | (kk) "Depository institution" has the same meaning as | |
| 584 | - | in Section 3 of the Federal Deposit Insurance Act, and | |
| 585 | - | includes any credit union. | |
| 586 | - | (ll) "Dwelling" means a residential structure or | |
| 587 | - | mobile home which contains one to 4 family housing units, | |
| 588 | - | or individual units of condominiums or cooperatives. | |
| 589 | - | (mm) "Immediate family member" means a spouse, child, | |
| 590 | 277 | ||
| 591 | 278 | ||
| 592 | - | sibling, parent, grandparent, or grandchild, and includes | |
| 593 | - | step-parents, step-children, step-siblings, or adoptive | |
| 594 | - | relationships. | |
| 595 | - | (nn) "Individual" means a natural person. | |
| 596 | - | (oo) "Loan processor or underwriter" means an | |
| 597 | - | individual who performs clerical or support duties as an | |
| 598 | - | employee at the direction of and subject to the | |
| 599 | - | supervision and instruction of a person licensed, or | |
| 600 | - | exempt from licensing, under this Act. "Clerical or | |
| 601 | - | support duties" includes subsequent to the receipt of an | |
| 602 | - | application: | |
| 603 | - | (i) the receipt, collection, distribution, and | |
| 604 | - | analysis of information common for the processing or | |
| 605 | - | underwriting of a residential mortgage loan; and | |
| 606 | - | (ii) communicating with a consumer to obtain the | |
| 607 | - | information necessary for the processing or | |
| 608 | - | underwriting of a loan, to the extent that the | |
| 609 | - | communication does not include offering or negotiating | |
| 610 | - | loan rates or terms, or counseling consumers about | |
| 611 | - | residential mortgage loan rates or terms. An | |
| 612 | - | individual engaging solely in loan processor or | |
| 613 | - | underwriter activities shall not represent to the | |
| 614 | - | public, through advertising or other means of | |
| 615 | - | communicating or providing information, including the | |
| 616 | - | use of business cards, stationery, brochures, signs, | |
| 617 | - | rate lists, or other promotional items, that the | |
| 279 | + | ||
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| 618 | 281 | ||
| 619 | 282 | ||
| 620 | - | individual can or will perform any of the activities | |
| 621 | - | of a mortgage loan originator. | |
| 622 | - | (pp) "Nationwide Multistate Licensing System and | |
| 623 | - | Registry" means a mortgage licensing system developed and | |
| 624 | - | maintained by the Conference of State Bank Supervisors and | |
| 625 | - | the American Association of Residential Mortgage | |
| 626 | - | Regulators for the licensing and registration of licensed | |
| 627 | - | mortgage loan originators. | |
| 628 | - | (qq) "Nontraditional mortgage product" means any | |
| 629 | - | mortgage product other than a 30-year fixed rate mortgage. | |
| 630 | - | (rr) "Person" means a natural person, corporation, | |
| 631 | - | company, limited liability company, partnership, or | |
| 632 | - | association. | |
| 633 | - | (ss) "Real estate brokerage activity" means any | |
| 634 | - | activity that involves offering or providing real estate | |
| 635 | - | brokerage services to the public, including: | |
| 636 | - | (1) acting as a real estate agent or real estate | |
| 637 | - | broker for a buyer, seller, lessor, or lessee of real | |
| 638 | - | property; | |
| 639 | - | (2) bringing together parties interested in the | |
| 640 | - | sale, purchase, lease, rental, or exchange of real | |
| 641 | - | property; | |
| 642 | - | (3) negotiating, on behalf of any party, any | |
| 643 | - | portion of a contract relating to the sale, purchase, | |
| 644 | - | lease, rental, or exchange of real property, other | |
| 645 | - | than in connection with providing financing with | |
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| 285 | + | 1 borrower, or negotiating or offering to negotiate the | |
| 286 | + | 2 terms or conditions of a residential mortgage loan with a | |
| 287 | + | 3 lender on behalf of a borrower including, but not limited | |
| 288 | + | 4 to, the submission of credit packages for the approval of | |
| 289 | + | 5 lenders, the preparation of residential mortgage loan | |
| 290 | + | 6 closing documents, including a closing in the name of a | |
| 291 | + | 7 broker. | |
| 292 | + | 8 (d) "Exempt person or entity" shall mean the | |
| 293 | + | 9 following: | |
| 294 | + | 10 (1) (i) Any banking organization or foreign | |
| 295 | + | 11 banking corporation licensed by the Illinois | |
| 296 | + | 12 Commissioner of Banks and Real Estate or the United | |
| 297 | + | 13 States Comptroller of the Currency to transact | |
| 298 | + | 14 business in this State; (ii) any national bank, | |
| 299 | + | 15 federally chartered savings and loan association, | |
| 300 | + | 16 federal savings bank, federal credit union; (iii) | |
| 301 | + | 17 (blank); (iv) any bank, savings and loan association, | |
| 302 | + | 18 savings bank, or credit union organized under the laws | |
| 303 | + | 19 of this or any other state; (v) any Illinois Consumer | |
| 304 | + | 20 Installment Loan Act licensee; (vi) any insurance | |
| 305 | + | 21 company authorized to transact business in this State; | |
| 306 | + | 22 (vii) any entity engaged solely in commercial mortgage | |
| 307 | + | 23 lending; (viii) any service corporation of a savings | |
| 308 | + | 24 and loan association or savings bank organized under | |
| 309 | + | 25 the laws of this State or the service corporation of a | |
| 310 | + | 26 federally chartered savings and loan association or | |
| 646 | 311 | ||
| 647 | 312 | ||
| 648 | - | respect to any such transaction; | |
| 649 | - | (4) engaging in any activity for which a person | |
| 650 | - | engaged in the activity is required to be registered | |
| 651 | - | or licensed as a real estate agent or real estate | |
| 652 | - | broker under any applicable law; or | |
| 653 | - | (5) offering to engage in any activity, or act in | |
| 654 | - | any capacity, described in this subsection (ss). | |
| 655 | - | (tt) "Registered mortgage loan originator" means any | |
| 656 | - | individual that: | |
| 657 | - | (1) meets the definition of mortgage loan | |
| 658 | - | originator and is an employee of: | |
| 659 | - | (A) a depository institution; | |
| 660 | - | (B) a subsidiary that is: | |
| 661 | - | (i) owned and controlled by a depository | |
| 662 | - | institution; and | |
| 663 | - | (ii) regulated by a federal banking | |
| 664 | - | agency; or | |
| 665 | - | (C) an institution regulated by the Farm | |
| 666 | - | Credit Administration; and | |
| 667 | - | (2) is registered with, and maintains a unique | |
| 668 | - | identifier through, the Nationwide Multistate | |
| 669 | - | Licensing System and Registry. | |
| 670 | - | (uu) "Unique identifier" means a number or other | |
| 671 | - | identifier assigned by protocols established by the | |
| 672 | - | Nationwide Multistate Licensing System and Registry. | |
| 673 | - | (vv) "Residential mortgage license" means a license | |
| 674 | 313 | ||
| 675 | 314 | ||
| 676 | - | issued pursuant to Section 1-3, 2-2, or 2-6 of this Act. | |
| 677 | - | (ww) "Mortgage loan originator license" means a | |
| 678 | - | license issued pursuant to Section 7-1A, 7-3, or 7-6 of | |
| 679 | - | this Act. | |
| 680 | - | (xx) "Secretary" means the Secretary of the Department | |
| 681 | - | of Financial and Professional Regulation, or a person | |
| 682 | - | authorized by the Secretary or by this Act to act in the | |
| 683 | - | Secretary's stead. | |
| 684 | - | (yy) "Loan modification" means, for compensation or | |
| 685 | - | gain, either directly or indirectly offering or | |
| 686 | - | negotiating on behalf of a borrower or homeowner to adjust | |
| 687 | - | the terms of a residential mortgage loan in a manner not | |
| 688 | - | provided for in the original or previously modified | |
| 689 | - | mortgage loan. | |
| 690 | - | (zz) "Short sale facilitation" means, for compensation | |
| 691 | - | or gain, either directly or indirectly offering or | |
| 692 | - | negotiating on behalf of a borrower or homeowner to | |
| 693 | - | facilitate the sale of residential real estate subject to | |
| 694 | - | one or more residential mortgage loans or debts | |
| 695 | - | constituting liens on the property in which the proceeds | |
| 696 | - | from selling the residential real estate will fall short | |
| 697 | - | of the amount owed and the lien holders are contacted to | |
| 698 | - | agree to release their lien on the residential real estate | |
| 699 | - | and accept less than the full amount owed on the debt. | |
| 700 | - | (aaa) "Bona fide nonprofit organization" means an | |
| 701 | - | organization that is described in Section 501(c)(3) of the | |
| 315 | + | ||
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| 702 | 317 | ||
| 703 | 318 | ||
| 704 | - | Internal Revenue Code, is exempt from federal income tax | |
| 705 | - | under Section 501(a) of the Internal Revenue Code, does | |
| 706 | - | not operate in a commercial context, and does all of the | |
| 707 | - | following: | |
| 708 | - | (1) Promotes affordable housing or provides home | |
| 709 | - | ownership education or similar services. | |
| 710 | - | (2) Conducts its activities in a manner that | |
| 711 | - | serves public or charitable purposes. | |
| 712 | - | (3) Receives funding and revenue and charges fees | |
| 713 | - | in a manner that does not create an incentive for | |
| 714 | - | itself or its employees to act other than in the best | |
| 715 | - | interests of its clients. | |
| 716 | - | (4) Compensates its employees in a manner that | |
| 717 | - | does not create an incentive for its employees to act | |
| 718 | - | other than in the best interests of its clients. | |
| 719 | - | (5) Provides to, or identifies for, the borrower | |
| 720 | - | residential mortgage loans with terms favorable to the | |
| 721 | - | borrower and comparable to residential mortgage loans | |
| 722 | - | and housing assistance provided under government | |
| 723 | - | housing assistance programs. | |
| 724 | - | (bbb) "Remote location" means a location other than a | |
| 725 | - | principal place of business or a full service office at | |
| 726 | - | which a mortgage loan originator of a licensee may conduct | |
| 727 | - | business. | |
| 728 | - | The Commissioner may define by rule and regulation any | |
| 729 | - | terms used in this Act for the efficient and clear | |
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| 320 | + | HB2325 Enrolled - 10 - LRB103 26311 BMS 52672 b | |
| 321 | + | 1 savings bank having its principal place of business in | |
| 322 | + | 2 this State, other than a service corporation licensed | |
| 323 | + | 3 or entitled to reciprocity under the Real Estate | |
| 324 | + | 4 License Act of 2000; or (ix) any first tier subsidiary | |
| 325 | + | 5 of a bank, the charter of which is issued under the | |
| 326 | + | 6 Illinois Banking Act by the Illinois Commissioner of | |
| 327 | + | 7 Banks and Real Estate, or the first tier subsidiary of | |
| 328 | + | 8 a bank chartered by the United States Comptroller of | |
| 329 | + | 9 the Currency and that has its principal place of | |
| 330 | + | 10 business in this State, provided that the first tier | |
| 331 | + | 11 subsidiary is regularly examined by the Illinois | |
| 332 | + | 12 Commissioner of Banks and Real Estate or the | |
| 333 | + | 13 Comptroller of the Currency, or a consumer compliance | |
| 334 | + | 14 examination is regularly conducted by the Federal | |
| 335 | + | 15 Reserve Board. | |
| 336 | + | 16 (1.5) Any employee of a person or entity mentioned | |
| 337 | + | 17 in item (1) of this subsection, when acting for such | |
| 338 | + | 18 person or entity, or any registered mortgage loan | |
| 339 | + | 19 originator when acting for an entity described in | |
| 340 | + | 20 subsection (tt) of this Section. | |
| 341 | + | 21 (1.8) Any person or entity that does not originate | |
| 342 | + | 22 mortgage loans in the ordinary course of business, but | |
| 343 | + | 23 makes or acquires residential mortgage loans with his | |
| 344 | + | 24 or her own funds for his or her or its own investment | |
| 345 | + | 25 without intent to make, acquire, or resell more than 3 | |
| 346 | + | 26 residential mortgage loans in any one calendar year. | |
| 730 | 347 | ||
| 731 | 348 | ||
| 732 | - | administration of this Act. | |
| 733 | - | (Source: P.A. 100-783, eff. 8-10-18; 100-851, eff. 8-14-18; | |
| 734 | - | 100-1153, eff. 12-19-18; 101-81, eff. 7-12-19.) | |
| 735 | - | (205 ILCS 635/3-11 new) | |
| 736 | - | Sec. 3-11. Remote location operations. Licensees may allow | |
| 737 | - | mortgage loan originators to work from a remote location if: | |
| 738 | - | (1) the licensee has written policies and procedures | |
| 739 | - | for the supervision of mortgage loan originators working | |
| 740 | - | from a remote location; | |
| 741 | - | (2) access to company platforms and customer | |
| 742 | - | information is in accordance with the licensee's | |
| 743 | - | comprehensive written information security plan; | |
| 744 | - | (3) no in-person customer interaction occurs at a | |
| 745 | - | mortgage originator's residence unless that residence is a | |
| 746 | - | licensed location; | |
| 747 | - | (4) physical records are not maintained at a remote | |
| 748 | - | location; | |
| 749 | - | (5) customer interactions and conversations about | |
| 750 | - | consumers will be in compliance with federal and State | |
| 751 | - | information security requirements, including applicable | |
| 752 | - | provisions under the federal Gramm-Leach-Bliley Act and | |
| 753 | - | the Safeguards Rule established by the Federal Trade | |
| 754 | - | Commission and set forth in 16 CFR Part 314, as such | |
| 755 | - | requirements may be amended from time to time; | |
| 756 | - | (6) mortgage loan originators working at a remote | |
| 757 | 349 | ||
| 758 | 350 | ||
| 759 | - | location access the company's secure systems, including a | |
| 760 | - | cloud-based system, directly from any out-of-office device | |
| 761 | - | the mortgage loan originator uses, including, but not | |
| 762 | - | limited to, a laptop, phone, desktop computer, or tablet, | |
| 763 | - | via a virtual private network or comparable system that | |
| 764 | - | ensures secure connectivity and requires passwords or | |
| 765 | - | other forms of authentication to access; | |
| 766 | - | (7) the licensee ensures that appropriate security | |
| 767 | - | updates, patches, or other alterations to the security of | |
| 768 | - | all devices used at remote locations are installed and | |
| 769 | - | maintained; | |
| 770 | - | (8) the licensee has an ability to remotely lock or | |
| 771 | - | erase company-related contents of any device or otherwise | |
| 772 | - | remotely limit all access to a company's secure systems; | |
| 773 | - | and | |
| 774 | - | (9) the Nationwide Multistate Licensing System and | |
| 775 | - | Registry record of a loan originator that works from a | |
| 776 | - | remote location designates the principal place of business | |
| 777 | - | as the loan originator's registered location unless the | |
| 778 | - | loan originator elects another licensed branch office as a | |
| 779 | - | registered location. | |
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| 354 | + | ||
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| 356 | + | HB2325 Enrolled - 11 - LRB103 26311 BMS 52672 b | |
| 357 | + | 1 (2) (Blank). | |
| 358 | + | 2 (2.1) A bona fide nonprofit organization. | |
| 359 | + | 3 (2.2) An employee of a bona fide nonprofit | |
| 360 | + | 4 organization when acting on behalf of that | |
| 361 | + | 5 organization. | |
| 362 | + | 6 (3) Any person employed by a licensee to assist in | |
| 363 | + | 7 the performance of the residential mortgage licensee's | |
| 364 | + | 8 activities regulated by this Act who is compensated in | |
| 365 | + | 9 any manner by only one licensee. | |
| 366 | + | 10 (4) (Blank). | |
| 367 | + | 11 (5) Any individual, corporation, partnership, or | |
| 368 | + | 12 other entity that originates, services, or brokers | |
| 369 | + | 13 residential mortgage loans, as these activities are | |
| 370 | + | 14 defined in this Act, and who or which receives no | |
| 371 | + | 15 compensation for those activities, subject to the | |
| 372 | + | 16 Commissioner's regulations and the federal Secure and | |
| 373 | + | 17 Fair Enforcement for Mortgage Licensing Act of 2008 | |
| 374 | + | 18 and the rules promulgated under that Act with regard | |
| 375 | + | 19 to the nature and amount of compensation. | |
| 376 | + | 20 (6) (Blank). | |
| 377 | + | 21 (7) Any entity engaged solely in providing loan | |
| 378 | + | 22 processing services through the sponsoring of | |
| 379 | + | 23 individuals acting pursuant to subsection (d) of | |
| 380 | + | 24 Section 7-1A of this Act. | |
| 381 | + | 25 (e) "Licensee" or "residential mortgage licensee" | |
| 382 | + | 26 shall mean a person, partnership, association, | |
| 383 | + | ||
| 384 | + | ||
| 385 | + | ||
| 386 | + | ||
| 387 | + | ||
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| 390 | + | ||
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| 392 | + | HB2325 Enrolled - 12 - LRB103 26311 BMS 52672 b | |
| 393 | + | 1 corporation, or any other entity who or which is licensed | |
| 394 | + | 2 pursuant to this Act to engage in the activities regulated | |
| 395 | + | 3 by this Act. | |
| 396 | + | 4 (f) "Mortgage loan" "residential mortgage loan" or | |
| 397 | + | 5 "home mortgage loan" shall mean any loan primarily for | |
| 398 | + | 6 personal, family, or household use that is secured by a | |
| 399 | + | 7 mortgage, deed of trust, or other equivalent consensual | |
| 400 | + | 8 security interest on a dwelling as defined in Section | |
| 401 | + | 9 103(v) of the federal Truth in Lending Act, or residential | |
| 402 | + | 10 real estate upon which is constructed or intended to be | |
| 403 | + | 11 constructed a dwelling. | |
| 404 | + | 12 (g) "Lender" shall mean any person, partnership, | |
| 405 | + | 13 association, corporation, or any other entity who either | |
| 406 | + | 14 lends or invests money in residential mortgage loans. | |
| 407 | + | 15 (h) "Ultimate equitable owner" shall mean a person | |
| 408 | + | 16 who, directly or indirectly, owns or controls an ownership | |
| 409 | + | 17 interest in a corporation, foreign corporation, alien | |
| 410 | + | 18 business organization, trust, or any other form of | |
| 411 | + | 19 business organization regardless of whether the person | |
| 412 | + | 20 owns or controls the ownership interest through one or | |
| 413 | + | 21 more persons or one or more proxies, powers of attorney, | |
| 414 | + | 22 nominees, corporations, associations, partnerships, | |
| 415 | + | 23 trusts, joint stock companies, or other entities or | |
| 416 | + | 24 devices, or any combination thereof. | |
| 417 | + | 25 (i) "Residential mortgage financing transaction" shall | |
| 418 | + | 26 mean the negotiation, acquisition, sale, or arrangement | |
| 419 | + | ||
| 420 | + | ||
| 421 | + | ||
| 422 | + | ||
| 423 | + | ||
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| 428 | + | HB2325 Enrolled - 13 - LRB103 26311 BMS 52672 b | |
| 429 | + | 1 for or the offer to negotiate, acquire, sell, or arrange | |
| 430 | + | 2 for, a residential mortgage loan or residential mortgage | |
| 431 | + | 3 loan commitment. | |
| 432 | + | 4 (j) "Personal residence address" shall mean a street | |
| 433 | + | 5 address and shall not include a post office box number. | |
| 434 | + | 6 (k) "Residential mortgage loan commitment" shall mean | |
| 435 | + | 7 a contract for residential mortgage loan financing. | |
| 436 | + | 8 (l) "Party to a residential mortgage financing | |
| 437 | + | 9 transaction" shall mean a borrower, lender, or loan broker | |
| 438 | + | 10 in a residential mortgage financing transaction. | |
| 439 | + | 11 (m) "Payments" shall mean payment of all or any of the | |
| 440 | + | 12 following: principal, interest and escrow reserves for | |
| 441 | + | 13 taxes, insurance and other related reserves, and | |
| 442 | + | 14 reimbursement for lender advances. | |
| 443 | + | 15 (n) "Commissioner" shall mean the Commissioner of | |
| 444 | + | 16 Banks and Real Estate, except that, beginning on April 6, | |
| 445 | + | 17 2009 (the effective date of Public Act 95-1047), all | |
| 446 | + | 18 references in this Act to the Commissioner of Banks and | |
| 447 | + | 19 Real Estate are deemed, in appropriate contexts, to be | |
| 448 | + | 20 references to the Secretary of Financial and Professional | |
| 449 | + | 21 Regulation, or his or her designee, including the Director | |
| 450 | + | 22 of the Division of Banking of the Department of Financial | |
| 451 | + | 23 and Professional Regulation. | |
| 452 | + | 24 (n-1) "Director" shall mean the Director of the | |
| 453 | + | 25 Division of Banking of the Department of Financial and | |
| 454 | + | 26 Professional Regulation, except that, beginning on July | |
| 455 | + | ||
| 456 | + | ||
| 457 | + | ||
| 458 | + | ||
| 459 | + | ||
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| 462 | + | ||
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| 464 | + | HB2325 Enrolled - 14 - LRB103 26311 BMS 52672 b | |
| 465 | + | 1 31, 2009 (the effective date of Public Act 96-112), all | |
| 466 | + | 2 references in this Act to the Director are deemed, in | |
| 467 | + | 3 appropriate contexts, to be the Secretary of Financial and | |
| 468 | + | 4 Professional Regulation, or his or her designee, including | |
| 469 | + | 5 the Director of the Division of Banking of the Department | |
| 470 | + | 6 of Financial and Professional Regulation. | |
| 471 | + | 7 (o) "Loan brokering", "brokering", or "brokerage | |
| 472 | + | 8 service" shall mean the act of helping to obtain from | |
| 473 | + | 9 another entity, for a borrower, a loan secured by | |
| 474 | + | 10 residential real estate situated in Illinois or assisting | |
| 475 | + | 11 a borrower in obtaining a loan secured by residential real | |
| 476 | + | 12 estate situated in Illinois in return for consideration to | |
| 477 | + | 13 be paid by either the borrower or the lender including, | |
| 478 | + | 14 but not limited to, contracting for the delivery of | |
| 479 | + | 15 residential mortgage loans to a third party lender and | |
| 480 | + | 16 soliciting, processing, placing, or negotiating | |
| 481 | + | 17 residential mortgage loans. | |
| 482 | + | 18 (p) "Loan broker" or "broker" shall mean a person, | |
| 483 | + | 19 partnership, association, corporation, or limited | |
| 484 | + | 20 liability company, other than those persons, partnerships, | |
| 485 | + | 21 associations, corporations, or limited liability companies | |
| 486 | + | 22 exempted from licensing pursuant to Section 1-4, | |
| 487 | + | 23 subsection (d), of this Act, who performs the activities | |
| 488 | + | 24 described in subsections (c), (o), and (yy) of this | |
| 489 | + | 25 Section. | |
| 490 | + | 26 (q) "Servicing" shall mean the collection or | |
| 491 | + | ||
| 492 | + | ||
| 493 | + | ||
| 494 | + | ||
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| 501 | + | 1 remittance for or the right or obligation to collect or | |
| 502 | + | 2 remit for any lender, noteowner, noteholder, or for a | |
| 503 | + | 3 licensee's own account, of payments, interests, principal, | |
| 504 | + | 4 and trust items such as hazard insurance and taxes on a | |
| 505 | + | 5 residential mortgage loan in accordance with the terms of | |
| 506 | + | 6 the residential mortgage loan; and includes loan payment | |
| 507 | + | 7 follow-up, delinquency loan follow-up, loan analysis and | |
| 508 | + | 8 any notifications to the borrower that are necessary to | |
| 509 | + | 9 enable the borrower to keep the loan current and in good | |
| 510 | + | 10 standing. "Servicing" includes management of third-party | |
| 511 | + | 11 entities acting on behalf of a residential mortgage | |
| 512 | + | 12 licensee for the collection of delinquent payments and the | |
| 513 | + | 13 use by such third-party entities of said licensee's | |
| 514 | + | 14 servicing records or information, including their use in | |
| 515 | + | 15 foreclosure. | |
| 516 | + | 16 (r) "Full service office" shall mean an office, | |
| 517 | + | 17 provided by the licensee and not subleased from the | |
| 518 | + | 18 licensee's employees or independent contractors, and staff | |
| 519 | + | 19 in Illinois reasonably adequate to handle efficiently | |
| 520 | + | 20 communications, questions, and other matters relating to | |
| 521 | + | 21 any application for, or an existing home mortgage secured | |
| 522 | + | 22 by residential real estate situated in Illinois with | |
| 523 | + | 23 respect to which the licensee is brokering, funding | |
| 524 | + | 24 originating, purchasing, or servicing. The management and | |
| 525 | + | 25 operation of each full service office must include | |
| 526 | + | 26 observance of good business practices such as proper | |
| 527 | + | ||
| 528 | + | ||
| 529 | + | ||
| 530 | + | ||
| 531 | + | ||
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| 534 | + | ||
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| 536 | + | HB2325 Enrolled - 16 - LRB103 26311 BMS 52672 b | |
| 537 | + | 1 signage; adequate, organized, and accurate books and | |
| 538 | + | 2 records; ample phone lines, hours of business, staff | |
| 539 | + | 3 training and supervision, and provision for a mechanism to | |
| 540 | + | 4 resolve consumer inquiries, complaints, and problems. The | |
| 541 | + | 5 Commissioner shall issue regulations with regard to these | |
| 542 | + | 6 requirements and shall include an evaluation of compliance | |
| 543 | + | 7 with this Section in his or her periodic examination of | |
| 544 | + | 8 each licensee. "Full service office" does not include a | |
| 545 | + | 9 remote location. | |
| 546 | + | 10 (s) "Purchasing" shall mean the purchase of | |
| 547 | + | 11 conventional or government-insured mortgage loans secured | |
| 548 | + | 12 by residential real estate situated in Illinois from | |
| 549 | + | 13 either the lender or from the secondary market. | |
| 550 | + | 14 (t) "Borrower" shall mean the person or persons who | |
| 551 | + | 15 seek the services of a loan broker, originator, or lender. | |
| 552 | + | 16 (u) "Originating" shall mean the issuing of | |
| 553 | + | 17 commitments for and funding of residential mortgage loans. | |
| 554 | + | 18 (v) "Loan brokerage agreement" shall mean a written | |
| 555 | + | 19 agreement in which a broker or loan broker agrees to do | |
| 556 | + | 20 either of the following: | |
| 557 | + | 21 (1) obtain a residential mortgage loan for the | |
| 558 | + | 22 borrower or assist the borrower in obtaining a | |
| 559 | + | 23 residential mortgage loan; or | |
| 560 | + | 24 (2) consider making a residential mortgage loan to | |
| 561 | + | 25 the borrower. | |
| 562 | + | 26 (w) "Advertisement" shall mean the attempt by | |
| 563 | + | ||
| 564 | + | ||
| 565 | + | ||
| 566 | + | ||
| 567 | + | ||
| 568 | + | HB2325 Enrolled - 16 - LRB103 26311 BMS 52672 b | |
| 569 | + | ||
| 570 | + | ||
| 571 | + | HB2325 Enrolled- 17 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 17 - LRB103 26311 BMS 52672 b | |
| 572 | + | HB2325 Enrolled - 17 - LRB103 26311 BMS 52672 b | |
| 573 | + | 1 publication, dissemination, or circulation to induce, | |
| 574 | + | 2 directly or indirectly, any person to enter into a | |
| 575 | + | 3 residential mortgage loan agreement or residential | |
| 576 | + | 4 mortgage loan brokerage agreement relative to a mortgage | |
| 577 | + | 5 secured by residential real estate situated in Illinois. | |
| 578 | + | 6 (x) (Blank). | |
| 579 | + | 7 (y) "Government-insured mortgage loan" shall mean any | |
| 580 | + | 8 mortgage loan made on the security of residential real | |
| 581 | + | 9 estate insured by the Department of Housing and Urban | |
| 582 | + | 10 Development or Farmers Home Loan Administration, or | |
| 583 | + | 11 guaranteed by the Veterans Administration. | |
| 584 | + | 12 (z) "Annual audit" shall mean a certified audit of the | |
| 585 | + | 13 licensee's books and records and systems of internal | |
| 586 | + | 14 control performed by a certified public accountant in | |
| 587 | + | 15 accordance with generally accepted accounting principles | |
| 588 | + | 16 and generally accepted auditing standards. | |
| 589 | + | 17 (aa) "Financial institution" shall mean a savings and | |
| 590 | + | 18 loan association, savings bank, credit union, or a bank | |
| 591 | + | 19 organized under the laws of Illinois or a savings and loan | |
| 592 | + | 20 association, savings bank, credit union or a bank | |
| 593 | + | 21 organized under the laws of the United States and | |
| 594 | + | 22 headquartered in Illinois. | |
| 595 | + | 23 (bb) "Escrow agent" shall mean a third party, | |
| 596 | + | 24 individual or entity charged with the fiduciary obligation | |
| 597 | + | 25 for holding escrow funds on a residential mortgage loan | |
| 598 | + | 26 pending final payout of those funds in accordance with the | |
| 599 | + | ||
| 600 | + | ||
| 601 | + | ||
| 602 | + | ||
| 603 | + | ||
| 604 | + | HB2325 Enrolled - 17 - LRB103 26311 BMS 52672 b | |
| 605 | + | ||
| 606 | + | ||
| 607 | + | HB2325 Enrolled- 18 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 18 - LRB103 26311 BMS 52672 b | |
| 608 | + | HB2325 Enrolled - 18 - LRB103 26311 BMS 52672 b | |
| 609 | + | 1 terms of the residential mortgage loan. | |
| 610 | + | 2 (cc) "Net worth" shall have the meaning ascribed | |
| 611 | + | 3 thereto in Section 3-5 of this Act. | |
| 612 | + | 4 (dd) "Affiliate" shall mean: | |
| 613 | + | 5 (1) any entity that directly controls or is | |
| 614 | + | 6 controlled by the licensee and any other company that | |
| 615 | + | 7 is directly affecting activities regulated by this Act | |
| 616 | + | 8 that is controlled by the company that controls the | |
| 617 | + | 9 licensee; | |
| 618 | + | 10 (2) any entity: | |
| 619 | + | 11 (A) that is controlled, directly or | |
| 620 | + | 12 indirectly, by a trust or otherwise, by or for the | |
| 621 | + | 13 benefit of shareholders who beneficially or | |
| 622 | + | 14 otherwise control, directly or indirectly, by | |
| 623 | + | 15 trust or otherwise, the licensee or any company | |
| 624 | + | 16 that controls the licensee; or | |
| 625 | + | 17 (B) a majority of the directors or trustees of | |
| 626 | + | 18 which constitute a majority of the persons holding | |
| 627 | + | 19 any such office with the licensee or any company | |
| 628 | + | 20 that controls the licensee; | |
| 629 | + | 21 (3) any company, including a real estate | |
| 630 | + | 22 investment trust, that is sponsored and advised on a | |
| 631 | + | 23 contractual basis by the licensee or any subsidiary or | |
| 632 | + | 24 affiliate of the licensee. | |
| 633 | + | 25 (ee) "First tier subsidiary" shall be defined by | |
| 634 | + | 26 regulation incorporating the comparable definitions used | |
| 635 | + | ||
| 636 | + | ||
| 637 | + | ||
| 638 | + | ||
| 639 | + | ||
| 640 | + | HB2325 Enrolled - 18 - LRB103 26311 BMS 52672 b | |
| 641 | + | ||
| 642 | + | ||
| 643 | + | HB2325 Enrolled- 19 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 19 - LRB103 26311 BMS 52672 b | |
| 644 | + | HB2325 Enrolled - 19 - LRB103 26311 BMS 52672 b | |
| 645 | + | 1 by the Office of the Comptroller of the Currency and the | |
| 646 | + | 2 Illinois Commissioner of Banks and Real Estate. | |
| 647 | + | 3 (ff) "Gross delinquency rate" means the quotient | |
| 648 | + | 4 determined by dividing (1) the sum of (i) the number of | |
| 649 | + | 5 government-insured residential mortgage loans funded or | |
| 650 | + | 6 purchased by a licensee in the preceding calendar year | |
| 651 | + | 7 that are delinquent and (ii) the number of conventional | |
| 652 | + | 8 residential mortgage loans funded or purchased by the | |
| 653 | + | 9 licensee in the preceding calendar year that are | |
| 654 | + | 10 delinquent by (2) the sum of (i) the number of | |
| 655 | + | 11 government-insured residential mortgage loans funded or | |
| 656 | + | 12 purchased by the licensee in the preceding calendar year | |
| 657 | + | 13 and (ii) the number of conventional residential mortgage | |
| 658 | + | 14 loans funded or purchased by the licensee in the preceding | |
| 659 | + | 15 calendar year. | |
| 660 | + | 16 (gg) "Delinquency rate factor" means the factor set by | |
| 661 | + | 17 rule of the Commissioner that is multiplied by the average | |
| 662 | + | 18 gross delinquency rate of licensees, determined annually | |
| 663 | + | 19 for the immediately preceding calendar year, for the | |
| 664 | + | 20 purpose of determining which licensees shall be examined | |
| 665 | + | 21 by the Commissioner pursuant to subsection (b) of Section | |
| 666 | + | 22 4-8 of this Act. | |
| 667 | + | 23 (hh) (Blank). | |
| 668 | + | 24 (ii) "Confidential supervisory information" means any | |
| 669 | + | 25 report of examination, visitation, or investigation | |
| 670 | + | 26 prepared by the Commissioner under this Act, any report of | |
| 671 | + | ||
| 672 | + | ||
| 673 | + | ||
| 674 | + | ||
| 675 | + | ||
| 676 | + | HB2325 Enrolled - 19 - LRB103 26311 BMS 52672 b | |
| 677 | + | ||
| 678 | + | ||
| 679 | + | HB2325 Enrolled- 20 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 20 - LRB103 26311 BMS 52672 b | |
| 680 | + | HB2325 Enrolled - 20 - LRB103 26311 BMS 52672 b | |
| 681 | + | 1 examination visitation, or investigation prepared by the | |
| 682 | + | 2 state regulatory authority of another state that examines | |
| 683 | + | 3 a licensee, any document or record prepared or obtained in | |
| 684 | + | 4 connection with or relating to any examination, | |
| 685 | + | 5 visitation, or investigation, and any record prepared or | |
| 686 | + | 6 obtained by the Commissioner to the extent that the record | |
| 687 | + | 7 summarizes or contains information derived from any | |
| 688 | + | 8 report, document, or record described in this subsection. | |
| 689 | + | 9 "Confidential supervisory information" does not include | |
| 690 | + | 10 any information or record routinely prepared by a licensee | |
| 691 | + | 11 and maintained in the ordinary course of business or any | |
| 692 | + | 12 information or record that is required to be made publicly | |
| 693 | + | 13 available pursuant to State or federal law or rule. | |
| 694 | + | 14 (jj) "Mortgage loan originator" means an individual | |
| 695 | + | 15 who for compensation or gain or in the expectation of | |
| 696 | + | 16 compensation or gain: | |
| 697 | + | 17 (i) takes a residential mortgage loan application; | |
| 698 | + | 18 or | |
| 699 | + | 19 (ii) offers or negotiates terms of a residential | |
| 700 | + | 20 mortgage loan. | |
| 701 | + | 21 "Mortgage loan originator" includes an individual | |
| 702 | + | 22 engaged in loan modification activities as defined in | |
| 703 | + | 23 subsection (yy) of this Section. A mortgage loan | |
| 704 | + | 24 originator engaged in loan modification activities shall | |
| 705 | + | 25 report those activities to the Department of Financial and | |
| 706 | + | 26 Professional Regulation in the manner provided by the | |
| 707 | + | ||
| 708 | + | ||
| 709 | + | ||
| 710 | + | ||
| 711 | + | ||
| 712 | + | HB2325 Enrolled - 20 - LRB103 26311 BMS 52672 b | |
| 713 | + | ||
| 714 | + | ||
| 715 | + | HB2325 Enrolled- 21 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 21 - LRB103 26311 BMS 52672 b | |
| 716 | + | HB2325 Enrolled - 21 - LRB103 26311 BMS 52672 b | |
| 717 | + | 1 Department; however, the Department shall not impose a fee | |
| 718 | + | 2 for reporting, nor require any additional qualifications | |
| 719 | + | 3 to engage in those activities beyond those provided | |
| 720 | + | 4 pursuant to this Act for mortgage loan originators. | |
| 721 | + | 5 "Mortgage loan originator" does not include an | |
| 722 | + | 6 individual engaged solely as a loan processor or | |
| 723 | + | 7 underwriter except as otherwise provided in subsection (d) | |
| 724 | + | 8 of Section 7-1A of this Act. | |
| 725 | + | 9 "Mortgage loan originator" does not include a person | |
| 726 | + | 10 or entity that only performs real estate brokerage | |
| 727 | + | 11 activities and is licensed in accordance with the Real | |
| 728 | + | 12 Estate License Act of 2000, unless the person or entity is | |
| 729 | + | 13 compensated by a lender, a mortgage broker, or other | |
| 730 | + | 14 mortgage loan originator, or by any agent of that lender, | |
| 731 | + | 15 mortgage broker, or other mortgage loan originator. | |
| 732 | + | 16 "Mortgage loan originator" does not include a person | |
| 733 | + | 17 or entity solely involved in extensions of credit relating | |
| 734 | + | 18 to timeshare plans, as that term is defined in Section | |
| 735 | + | 19 101(53D) of Title 11, United States Code. | |
| 736 | + | 20 (kk) "Depository institution" has the same meaning as | |
| 737 | + | 21 in Section 3 of the Federal Deposit Insurance Act, and | |
| 738 | + | 22 includes any credit union. | |
| 739 | + | 23 (ll) "Dwelling" means a residential structure or | |
| 740 | + | 24 mobile home which contains one to 4 family housing units, | |
| 741 | + | 25 or individual units of condominiums or cooperatives. | |
| 742 | + | 26 (mm) "Immediate family member" means a spouse, child, | |
| 743 | + | ||
| 744 | + | ||
| 745 | + | ||
| 746 | + | ||
| 747 | + | ||
| 748 | + | HB2325 Enrolled - 21 - LRB103 26311 BMS 52672 b | |
| 749 | + | ||
| 750 | + | ||
| 751 | + | HB2325 Enrolled- 22 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 22 - LRB103 26311 BMS 52672 b | |
| 752 | + | HB2325 Enrolled - 22 - LRB103 26311 BMS 52672 b | |
| 753 | + | 1 sibling, parent, grandparent, or grandchild, and includes | |
| 754 | + | 2 step-parents, step-children, step-siblings, or adoptive | |
| 755 | + | 3 relationships. | |
| 756 | + | 4 (nn) "Individual" means a natural person. | |
| 757 | + | 5 (oo) "Loan processor or underwriter" means an | |
| 758 | + | 6 individual who performs clerical or support duties as an | |
| 759 | + | 7 employee at the direction of and subject to the | |
| 760 | + | 8 supervision and instruction of a person licensed, or | |
| 761 | + | 9 exempt from licensing, under this Act. "Clerical or | |
| 762 | + | 10 support duties" includes subsequent to the receipt of an | |
| 763 | + | 11 application: | |
| 764 | + | 12 (i) the receipt, collection, distribution, and | |
| 765 | + | 13 analysis of information common for the processing or | |
| 766 | + | 14 underwriting of a residential mortgage loan; and | |
| 767 | + | 15 (ii) communicating with a consumer to obtain the | |
| 768 | + | 16 information necessary for the processing or | |
| 769 | + | 17 underwriting of a loan, to the extent that the | |
| 770 | + | 18 communication does not include offering or negotiating | |
| 771 | + | 19 loan rates or terms, or counseling consumers about | |
| 772 | + | 20 residential mortgage loan rates or terms. An | |
| 773 | + | 21 individual engaging solely in loan processor or | |
| 774 | + | 22 underwriter activities shall not represent to the | |
| 775 | + | 23 public, through advertising or other means of | |
| 776 | + | 24 communicating or providing information, including the | |
| 777 | + | 25 use of business cards, stationery, brochures, signs, | |
| 778 | + | 26 rate lists, or other promotional items, that the | |
| 779 | + | ||
| 780 | + | ||
| 781 | + | ||
| 782 | + | ||
| 783 | + | ||
| 784 | + | HB2325 Enrolled - 22 - LRB103 26311 BMS 52672 b | |
| 785 | + | ||
| 786 | + | ||
| 787 | + | HB2325 Enrolled- 23 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 23 - LRB103 26311 BMS 52672 b | |
| 788 | + | HB2325 Enrolled - 23 - LRB103 26311 BMS 52672 b | |
| 789 | + | 1 individual can or will perform any of the activities | |
| 790 | + | 2 of a mortgage loan originator. | |
| 791 | + | 3 (pp) "Nationwide Multistate Licensing System and | |
| 792 | + | 4 Registry" means a mortgage licensing system developed and | |
| 793 | + | 5 maintained by the Conference of State Bank Supervisors and | |
| 794 | + | 6 the American Association of Residential Mortgage | |
| 795 | + | 7 Regulators for the licensing and registration of licensed | |
| 796 | + | 8 mortgage loan originators. | |
| 797 | + | 9 (qq) "Nontraditional mortgage product" means any | |
| 798 | + | 10 mortgage product other than a 30-year fixed rate mortgage. | |
| 799 | + | 11 (rr) "Person" means a natural person, corporation, | |
| 800 | + | 12 company, limited liability company, partnership, or | |
| 801 | + | 13 association. | |
| 802 | + | 14 (ss) "Real estate brokerage activity" means any | |
| 803 | + | 15 activity that involves offering or providing real estate | |
| 804 | + | 16 brokerage services to the public, including: | |
| 805 | + | 17 (1) acting as a real estate agent or real estate | |
| 806 | + | 18 broker for a buyer, seller, lessor, or lessee of real | |
| 807 | + | 19 property; | |
| 808 | + | 20 (2) bringing together parties interested in the | |
| 809 | + | 21 sale, purchase, lease, rental, or exchange of real | |
| 810 | + | 22 property; | |
| 811 | + | 23 (3) negotiating, on behalf of any party, any | |
| 812 | + | 24 portion of a contract relating to the sale, purchase, | |
| 813 | + | 25 lease, rental, or exchange of real property, other | |
| 814 | + | 26 than in connection with providing financing with | |
| 815 | + | ||
| 816 | + | ||
| 817 | + | ||
| 818 | + | ||
| 819 | + | ||
| 820 | + | HB2325 Enrolled - 23 - LRB103 26311 BMS 52672 b | |
| 821 | + | ||
| 822 | + | ||
| 823 | + | HB2325 Enrolled- 24 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 24 - LRB103 26311 BMS 52672 b | |
| 824 | + | HB2325 Enrolled - 24 - LRB103 26311 BMS 52672 b | |
| 825 | + | 1 respect to any such transaction; | |
| 826 | + | 2 (4) engaging in any activity for which a person | |
| 827 | + | 3 engaged in the activity is required to be registered | |
| 828 | + | 4 or licensed as a real estate agent or real estate | |
| 829 | + | 5 broker under any applicable law; or | |
| 830 | + | 6 (5) offering to engage in any activity, or act in | |
| 831 | + | 7 any capacity, described in this subsection (ss). | |
| 832 | + | 8 (tt) "Registered mortgage loan originator" means any | |
| 833 | + | 9 individual that: | |
| 834 | + | 10 (1) meets the definition of mortgage loan | |
| 835 | + | 11 originator and is an employee of: | |
| 836 | + | 12 (A) a depository institution; | |
| 837 | + | 13 (B) a subsidiary that is: | |
| 838 | + | 14 (i) owned and controlled by a depository | |
| 839 | + | 15 institution; and | |
| 840 | + | 16 (ii) regulated by a federal banking | |
| 841 | + | 17 agency; or | |
| 842 | + | 18 (C) an institution regulated by the Farm | |
| 843 | + | 19 Credit Administration; and | |
| 844 | + | 20 (2) is registered with, and maintains a unique | |
| 845 | + | 21 identifier through, the Nationwide Multistate | |
| 846 | + | 22 Licensing System and Registry. | |
| 847 | + | 23 (uu) "Unique identifier" means a number or other | |
| 848 | + | 24 identifier assigned by protocols established by the | |
| 849 | + | 25 Nationwide Multistate Licensing System and Registry. | |
| 850 | + | 26 (vv) "Residential mortgage license" means a license | |
| 851 | + | ||
| 852 | + | ||
| 853 | + | ||
| 854 | + | ||
| 855 | + | ||
| 856 | + | HB2325 Enrolled - 24 - LRB103 26311 BMS 52672 b | |
| 857 | + | ||
| 858 | + | ||
| 859 | + | HB2325 Enrolled- 25 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 25 - LRB103 26311 BMS 52672 b | |
| 860 | + | HB2325 Enrolled - 25 - LRB103 26311 BMS 52672 b | |
| 861 | + | 1 issued pursuant to Section 1-3, 2-2, or 2-6 of this Act. | |
| 862 | + | 2 (ww) "Mortgage loan originator license" means a | |
| 863 | + | 3 license issued pursuant to Section 7-1A, 7-3, or 7-6 of | |
| 864 | + | 4 this Act. | |
| 865 | + | 5 (xx) "Secretary" means the Secretary of the Department | |
| 866 | + | 6 of Financial and Professional Regulation, or a person | |
| 867 | + | 7 authorized by the Secretary or by this Act to act in the | |
| 868 | + | 8 Secretary's stead. | |
| 869 | + | 9 (yy) "Loan modification" means, for compensation or | |
| 870 | + | 10 gain, either directly or indirectly offering or | |
| 871 | + | 11 negotiating on behalf of a borrower or homeowner to adjust | |
| 872 | + | 12 the terms of a residential mortgage loan in a manner not | |
| 873 | + | 13 provided for in the original or previously modified | |
| 874 | + | 14 mortgage loan. | |
| 875 | + | 15 (zz) "Short sale facilitation" means, for compensation | |
| 876 | + | 16 or gain, either directly or indirectly offering or | |
| 877 | + | 17 negotiating on behalf of a borrower or homeowner to | |
| 878 | + | 18 facilitate the sale of residential real estate subject to | |
| 879 | + | 19 one or more residential mortgage loans or debts | |
| 880 | + | 20 constituting liens on the property in which the proceeds | |
| 881 | + | 21 from selling the residential real estate will fall short | |
| 882 | + | 22 of the amount owed and the lien holders are contacted to | |
| 883 | + | 23 agree to release their lien on the residential real estate | |
| 884 | + | 24 and accept less than the full amount owed on the debt. | |
| 885 | + | 25 (aaa) "Bona fide nonprofit organization" means an | |
| 886 | + | 26 organization that is described in Section 501(c)(3) of the | |
| 887 | + | ||
| 888 | + | ||
| 889 | + | ||
| 890 | + | ||
| 891 | + | ||
| 892 | + | HB2325 Enrolled - 25 - LRB103 26311 BMS 52672 b | |
| 893 | + | ||
| 894 | + | ||
| 895 | + | HB2325 Enrolled- 26 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 26 - LRB103 26311 BMS 52672 b | |
| 896 | + | HB2325 Enrolled - 26 - LRB103 26311 BMS 52672 b | |
| 897 | + | 1 Internal Revenue Code, is exempt from federal income tax | |
| 898 | + | 2 under Section 501(a) of the Internal Revenue Code, does | |
| 899 | + | 3 not operate in a commercial context, and does all of the | |
| 900 | + | 4 following: | |
| 901 | + | 5 (1) Promotes affordable housing or provides home | |
| 902 | + | 6 ownership education or similar services. | |
| 903 | + | 7 (2) Conducts its activities in a manner that | |
| 904 | + | 8 serves public or charitable purposes. | |
| 905 | + | 9 (3) Receives funding and revenue and charges fees | |
| 906 | + | 10 in a manner that does not create an incentive for | |
| 907 | + | 11 itself or its employees to act other than in the best | |
| 908 | + | 12 interests of its clients. | |
| 909 | + | 13 (4) Compensates its employees in a manner that | |
| 910 | + | 14 does not create an incentive for its employees to act | |
| 911 | + | 15 other than in the best interests of its clients. | |
| 912 | + | 16 (5) Provides to, or identifies for, the borrower | |
| 913 | + | 17 residential mortgage loans with terms favorable to the | |
| 914 | + | 18 borrower and comparable to residential mortgage loans | |
| 915 | + | 19 and housing assistance provided under government | |
| 916 | + | 20 housing assistance programs. | |
| 917 | + | 21 (bbb) "Remote location" means a location other than a | |
| 918 | + | 22 principal place of business or a full service office at | |
| 919 | + | 23 which a mortgage loan originator of a licensee may conduct | |
| 920 | + | 24 business. | |
| 921 | + | 25 The Commissioner may define by rule and regulation any | |
| 922 | + | 26 terms used in this Act for the efficient and clear | |
| 923 | + | ||
| 924 | + | ||
| 925 | + | ||
| 926 | + | ||
| 927 | + | ||
| 928 | + | HB2325 Enrolled - 26 - LRB103 26311 BMS 52672 b | |
| 929 | + | ||
| 930 | + | ||
| 931 | + | HB2325 Enrolled- 27 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 27 - LRB103 26311 BMS 52672 b | |
| 932 | + | HB2325 Enrolled - 27 - LRB103 26311 BMS 52672 b | |
| 933 | + | 1 administration of this Act. | |
| 934 | + | 2 (Source: P.A. 100-783, eff. 8-10-18; 100-851, eff. 8-14-18; | |
| 935 | + | 3 100-1153, eff. 12-19-18; 101-81, eff. 7-12-19.) | |
| 936 | + | 4 (205 ILCS 635/3-11 new) | |
| 937 | + | 5 Sec. 3-11. Remote location operations. Licensees may allow | |
| 938 | + | 6 mortgage loan originators to work from a remote location if: | |
| 939 | + | 7 (1) the licensee has written policies and procedures | |
| 940 | + | 8 for the supervision of mortgage loan originators working | |
| 941 | + | 9 from a remote location; | |
| 942 | + | 10 (2) access to company platforms and customer | |
| 943 | + | 11 information is in accordance with the licensee's | |
| 944 | + | 12 comprehensive written information security plan; | |
| 945 | + | 13 (3) no in-person customer interaction occurs at a | |
| 946 | + | 14 mortgage originator's residence unless that residence is a | |
| 947 | + | 15 licensed location; | |
| 948 | + | 16 (4) physical records are not maintained at a remote | |
| 949 | + | 17 location; | |
| 950 | + | 18 (5) customer interactions and conversations about | |
| 951 | + | 19 consumers will be in compliance with federal and State | |
| 952 | + | 20 information security requirements, including applicable | |
| 953 | + | 21 provisions under the federal Gramm-Leach-Bliley Act and | |
| 954 | + | 22 the Safeguards Rule established by the Federal Trade | |
| 955 | + | 23 Commission and set forth in 16 CFR Part 314, as such | |
| 956 | + | 24 requirements may be amended from time to time; | |
| 957 | + | 25 (6) mortgage loan originators working at a remote | |
| 958 | + | ||
| 959 | + | ||
| 960 | + | ||
| 961 | + | ||
| 962 | + | ||
| 963 | + | HB2325 Enrolled - 27 - LRB103 26311 BMS 52672 b | |
| 964 | + | ||
| 965 | + | ||
| 966 | + | HB2325 Enrolled- 28 -LRB103 26311 BMS 52672 b HB2325 Enrolled - 28 - LRB103 26311 BMS 52672 b | |
| 967 | + | HB2325 Enrolled - 28 - LRB103 26311 BMS 52672 b | |
| 968 | + | 1 location access the company's secure systems, including a | |
| 969 | + | 2 cloud-based system, directly from any out-of-office device | |
| 970 | + | 3 the mortgage loan originator uses, including, but not | |
| 971 | + | 4 limited to, a laptop, phone, desktop computer, or tablet, | |
| 972 | + | 5 via a virtual private network or comparable system that | |
| 973 | + | 6 ensures secure connectivity and requires passwords or | |
| 974 | + | 7 other forms of authentication to access; | |
| 975 | + | 8 (7) the licensee ensures that appropriate security | |
| 976 | + | 9 updates, patches, or other alterations to the security of | |
| 977 | + | 10 all devices used at remote locations are installed and | |
| 978 | + | 11 maintained; | |
| 979 | + | 12 (8) the licensee has an ability to remotely lock or | |
| 980 | + | 13 erase company-related contents of any device or otherwise | |
| 981 | + | 14 remotely limit all access to a company's secure systems; | |
| 982 | + | 15 and | |
| 983 | + | 16 (9) the Nationwide Multistate Licensing System and | |
| 984 | + | 17 Registry record of a loan originator that works from a | |
| 985 | + | 18 remote location designates the principal place of business | |
| 986 | + | 19 as the loan originator's registered location unless the | |
| 987 | + | 20 loan originator elects another licensed branch office as a | |
| 988 | + | 21 registered location. | |
| 989 | + | ||
| 990 | + | ||
| 991 | + | ||
| 992 | + | ||
| 993 | + | ||
| 994 | + | HB2325 Enrolled - 28 - LRB103 26311 BMS 52672 b |