Public Act 100-0783
 
SB0748 EnrolledLRB100 05748 SMS 15771 b


  
    AN ACT concerning regulation.
  
 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:
  



 
 
    Section 5. The Illinois Banking Act is amended  by changing 
Sections 78 and 79 as follows:
 


    (205 ILCS 5/78)  (from Ch. 17, par. 390)



    Sec. 78. Board of banks and trust companies; creation, 
members, appointment. 
There is created a Board which shall be 
known as the State Banking Board of
Illinois which shall 
consist of the Director of Banking, who shall be its chairman,

and 12 11 additional members. The Board shall be comprised of 
individuals interested in the banking industry.  Two members 
shall be from State banks having total assets of not more than 
$75,000,000 at the time of their appointment; 2 members shall 
be from State banks having total assets of more than 
$75,000,000, but not more than $150,000,000 at the time of 
their appointment; 2 members shall be from State banks having 
total assets of  more than $150,000,000, but not more than 
$500,000,000 at the time of their appointment; 2 members shall 
be from State banks having total assets of more than 
$500,000,000, but not more than $2,000,000,000 at the time of 
their appointment; , and one member shall be from a State bank 
having total assets of more than $2,000,000,000 at the time of 
his or her appointment; and one member shall be from a savings 
bank organized under the Savings Bank Act. There shall be one 
alternate member from a savings bank organized under the 
Savings Bank Act whose role shall be to attend a meeting of the 
State Banking Board if and only if the sitting member from a 
savings bank is unable to attend the meeting.  There shall be 2 
public members, neither of whom shall be an officer or director 
of or owner, whether directly or indirectly, of more than 5% of 
the outstanding capital stock of any bank or savings bank. 
Members of the State Banking Board of Illinois cease to be 
eligible to serve on the Board once they no longer meet the 
requirements of their original appointment; however, a member 
from a State bank shall not be disqualified solely due to a 
change in the bank's asset size.




(Source: P.A. 99-39, eff. 1-1-16.)

 



    (205 ILCS 5/79)  (from Ch. 17, par. 391)


    Sec. 79. Board, terms of office. The terms of office of the 
State Banking Board of Illinois shall be 4 years, except that 
the initial Board appointments shall be staggered with the 
Governor initially appointing, with advice and consent of the 
Senate, 3 members to serve 2-year terms, 4 members to serve 
3-year terms, and 4 members to serve 4-year terms. The sitting 
member from a savings bank organized under the Savings Bank Act 
and the alternate member from a savings bank organized under 
the Savings Bank Act shall be appointed for the same terms of 
office.  Members shall continue to serve on the Board until 
their replacement is appointed and qualified. Vacancies shall 
be filled by appointment by the Governor with advice and 
consent of the Senate.





    No State Banking Board
member shall serve
more than 2 full 
4-year terms of office.


(Source: P.A. 96-1163, eff. 1-1-11; 97-813, eff. 7-13-12.)

 
    (205 ILCS 205/12104 rep.)
    (205 ILCS 205/Art. 12.2 rep.)
    Section 10. The Savings Bank Act is amended by repealing 
Section 12104 and Article 12.2.
 
    Section 15. The Residential Mortgage License Act of 1987 is 
amended  by changing Sections 1-4, 4-1, and 4-8 as follows:
 
    (205 ILCS 635/1-4)
    Sec. 1-4. Definitions. The following words and phrases have 
the meanings given to them in this Section: 
        (a) "Residential real property" or "residential real 
    estate" shall mean any real property located in Illinois, 
    upon which is constructed or intended to be constructed a 
    dwelling. Those terms include a manufactured home as 
    defined in subdivision (53) of Section 9-102 of the Uniform 
    Commercial Code which is real property as defined in 
    Section 5-35 of the Conveyance and Encumbrance of 
    Manufactured Homes as Real Property and Severance Act.
        (b) "Making a residential mortgage loan" or "funding a 
    residential mortgage
loan" shall mean for compensation or 
    gain, either directly or indirectly,
advancing funds or 
    making a commitment to advance funds to a loan applicant

    for a residential mortgage loan.
        (c) "Soliciting, processing, placing, or negotiating a 
    residential
mortgage loan" shall mean for compensation or 
    gain, either directly or
indirectly, accepting or offering 
    to accept an application for a
residential mortgage loan, 
    assisting or offering to assist in the
processing of an 
    application for a residential mortgage loan on behalf of a

    borrower, or negotiating or offering to negotiate the terms 
    or conditions
of a residential mortgage loan with a lender 
    on behalf of a borrower
including, but not limited to, the 
    submission of credit packages for the
approval of lenders, 
    the preparation of residential mortgage loan closing

    documents, including a closing in the name of a broker.
        (d) "Exempt person or entity" shall mean the following:
            (1) (i) Any banking organization or foreign 
        banking corporation
licensed by the Illinois 
        Commissioner of Banks and Real Estate or the
United 
        States Comptroller of the Currency to transact 
        business in this
State; (ii) any national bank, 
        federally chartered savings and loan
association, 
        federal savings bank, federal credit union; (iii) 
        (blank); (iv) any bank, savings and loan
association, 
        savings bank, or credit union organized under the laws 
        of this
or any other state; (v) any Illinois Consumer 
        Installment Loan Act licensee;
(vi) any insurance 
        company authorized to transact business in this State;

        (vii) any entity engaged solely in commercial mortgage 
        lending; (viii) any
service corporation of a savings 
        and loan association or savings bank organized
under 
        the laws of this State or the service corporation of a 
        federally
chartered savings and loan association or 
        savings bank having
its principal place of business in 
        this State, other than a service
corporation licensed 
        or entitled to reciprocity under the Real Estate

        License Act of 2000; or (ix) any first tier subsidiary 
        of a
bank, the charter of which is issued under the 
        Illinois Banking Act
by the Illinois Commissioner of 
        Banks and Real Estate,
or the first tier subsidiary of 
        a bank chartered by the United States
Comptroller of 
        the Currency and that has its principal place of 
        business
in this State, provided that the first tier 
        subsidiary is regularly
examined by the Illinois 
        Commissioner of Banks and Real Estate
or the 
        Comptroller of the Currency, or a consumer compliance 
        examination is
regularly conducted by the Federal 
        Reserve Board.
            (1.5) Any employee of a person or entity mentioned 
        in
item (1) of this subsection, when acting for such 
        person or entity, or any registered mortgage loan 
        originator when acting for an entity described in 
        subsection (tt) of this Section.
            (1.8) Any person or entity that does not originate 
        mortgage loans in the ordinary course of business, but 
        makes or acquires residential mortgage loans with his 
        or her own funds for his or her or its own investment 
        without intent to make, acquire, or resell more than 3 
        residential mortgage loans in any one calendar year. 
            (2) (Blank).
            (3) Any person employed by a licensee to assist in 
        the performance of
the residential mortgage licensee's 
        activities regulated by this Act who is compensated in 
        any manner by
only one licensee.
            (4) (Blank).
            (5) Any individual, corporation, partnership, or 
        other entity that
originates, services, or brokers 
        residential mortgage loans, as these
activities are 
        defined in this Act, and who or which receives no

        compensation for those activities, subject to the 
        Commissioner's
regulations and the federal Secure and 
        Fair Enforcement for Mortgage Licensing Act of 2008 and 
        the rules promulgated under that Act with regard to the 
        nature and amount of compensation.
            (6) (Blank).
        (e) "Licensee" or "residential mortgage licensee" 
    shall mean a person,
partnership, association, 
    corporation, or any other entity who or which is
licensed 
    pursuant to this Act to engage in the activities regulated 
    by
this Act.
        (f) "Mortgage loan" "residential mortgage loan" or 
    "home
mortgage loan" shall mean any loan primarily for 
    personal, family, or household use that is secured by a 
    mortgage, deed of trust, or other equivalent consensual 
    security interest on a dwelling as defined in Section 
    103(v) of the federal Truth in Lending Act, or residential 
    real estate upon which is constructed or intended to be 
    constructed a dwelling.
        (g) "Lender" shall mean any person, partnership, 
    association,
corporation, or any other entity who either 
    lends or invests money in
residential mortgage loans.
        (h) "Ultimate equitable owner" shall mean a person who, 
    directly
or indirectly, owns or controls an ownership 
    interest in a corporation,
foreign corporation, alien 
    business organization, trust, or any other form
of business 
    organization regardless of whether the person owns or 
    controls
the ownership interest through one or more persons 
    or one or more proxies,
powers of attorney, nominees, 
    corporations, associations, partnerships,
trusts, joint 
    stock companies, or other entities or devices, or any

    combination thereof.
        (i) "Residential mortgage financing transaction" shall 
    mean the negotiation,
acquisition, sale, or arrangement 
    for or the offer to negotiate, acquire,
sell, or arrange 
    for, a residential mortgage loan or residential mortgage

    loan commitment.
        (j) "Personal residence address" shall mean a street 
    address and shall
not include a post office box number.
        (k) "Residential mortgage loan commitment" shall mean 
    a contract for
residential mortgage loan financing.
        (l) "Party to a residential mortgage financing 
    transaction" shall mean a
borrower, lender, or loan broker 
    in a residential mortgage financing
transaction.
        (m) "Payments" shall mean payment of all or any of the 
    following:
principal, interest and escrow reserves for 
    taxes, insurance and other related
reserves, and 
    reimbursement for lender advances.
        (n) "Commissioner" shall mean the Commissioner of 
    Banks and Real Estate, except that, beginning on April 6, 
    2009 (the effective date of Public Act 95-1047), all 
    references in this Act to the Commissioner of Banks and 
    Real Estate are deemed, in appropriate contexts, to be 
    references to the Secretary of Financial and Professional 
    Regulation, or his or her designee, including the Director 
    of the Division of Banking of the Department of Financial 
    and Professional Regulation.
        (n-1) "Director" shall mean the Director of the 
    Division of Banking of the Department of Financial and 
    Professional Regulation, except that, beginning on July 
    31, 2009 (the effective date of Public Act 96-112), all 
    references in this Act to the Director are deemed, in 
    appropriate contexts, to be the Secretary of Financial and 
    Professional Regulation, or his or her designee, including 
    the Director of the Division of Banking of the Department 
    of Financial and Professional Regulation. 
        (o) "Loan brokering", "brokering", or "brokerage 
    service" shall mean the act
of helping to obtain from 
    another entity, for a borrower, a loan secured by

    residential real estate situated in Illinois or assisting a 
    borrower in
obtaining a loan secured by residential real 
    estate situated in Illinois in
return for consideration to 
    be paid by either the borrower or the lender
including, but 
    not limited to, contracting for the delivery of residential

    mortgage loans to a third party lender and soliciting, 
    processing, placing,
or negotiating residential mortgage 
    loans.
        (p) "Loan broker" or "broker" shall mean a person, 
    partnership,
association, corporation, or limited 
    liability company, other than
those persons, partnerships,

    associations, corporations, or limited liability companies 
    exempted
from licensing pursuant to Section
1-4, 
    subsection (d), of this Act, who performs the activities 
    described
in subsections (c), (o), and (yy) of this 
    Section.
        (q) "Servicing" shall mean the collection or 
    remittance for or the
right or obligation to collect or 
    remit for any lender, noteowner,
noteholder, or for a 
    licensee's own account, of payments, interests,
principal, 
    and trust items such as hazard insurance and taxes on a

    residential mortgage loan in accordance with the terms of 
    the residential
mortgage loan; and includes loan payment 
    follow-up, delinquency loan
follow-up, loan analysis and 
    any notifications to the borrower that are
necessary to 
    enable the borrower to keep the loan current and in good 
    standing. "Servicing" includes management of third-party 
    entities acting on behalf of a residential mortgage 
    licensee for the collection of delinquent payments and the 
    use by such third-party entities of said licensee's 
    servicing records or information, including their use in 
    foreclosure. 
        (r) "Full service office" shall mean an office, 
    provided by the licensee and not subleased from the 
    licensee's employees, and staff in Illinois
reasonably 
    adequate to handle efficiently communications, questions, 
    and
other matters relating to any application for, or an 
    existing home mortgage
secured by residential real estate 
    situated in Illinois
with respect to which the licensee is 
    brokering, funding originating,
purchasing, or servicing.  
    The management and operation of each full service
office 
    must include observance of good business practices such as 
    proper signage; adequate,
organized, and accurate books 
    and records; ample phone lines, hours of
business, staff 
    training and supervision, and provision for a mechanism to

    resolve consumer inquiries, complaints, and problems.  The 
    Commissioner
shall issue regulations with regard to these 
    requirements and shall include
an evaluation of compliance 
    with this Section in his or her periodic
examination of 
    each licensee.
        (s) "Purchasing" shall mean the purchase of 
    conventional or
government-insured mortgage loans secured 
    by residential real estate
situated in Illinois from either 
    the lender or from the secondary market.
        (t) "Borrower" shall mean the person or persons who 
    seek the services of
a loan broker, originator, or lender.
        (u) "Originating" shall mean the issuing of 
    commitments for and funding of
residential mortgage loans.
        (v) "Loan brokerage agreement" shall mean a written 
    agreement in which a
broker or loan broker agrees to do 
    either of the following:
            (1) obtain a residential mortgage loan for the 
        borrower or assist the
borrower in obtaining a 
        residential mortgage loan; or
            (2) consider making a residential mortgage loan to 
        the borrower.
        (w) "Advertisement" shall mean the attempt by 
    publication,
dissemination, or circulation to induce, 
    directly or indirectly,
any person to enter into a 
    residential mortgage loan agreement or
residential 
    mortgage loan brokerage agreement relative to a
mortgage 
    secured by residential real estate situated in Illinois.
        (x) (Blank). "Residential Mortgage Board" shall mean 
    the Residential Mortgage
Board created in Section 1-5 of 
    this Act.
        (y) "Government-insured mortgage loan" shall mean any 
    mortgage loan made
on the security of residential real 
    estate insured by the Department of
Housing and Urban 
    Development or Farmers Home Loan Administration, or

    guaranteed by the Veterans Administration.
        (z) "Annual audit" shall mean a certified audit of the 
    licensee's books and
records and systems of internal 
    control performed by a certified public
accountant in 
    accordance with generally accepted accounting principles

    and generally accepted auditing standards.
        (aa) "Financial institution" shall mean a savings and 
    loan
association, savings bank, credit union, or a bank 
    organized under the
laws of Illinois or a savings and loan 
    association, savings bank,
credit union or a bank organized 
    under the laws of the United States and
headquartered in 
    Illinois.
        (bb) "Escrow agent" shall mean a third party, 
    individual or entity
charged with the fiduciary obligation 
    for holding escrow funds on a
residential mortgage loan 
    pending final payout of those funds
in accordance with the 
    terms of the residential mortgage loan.
        (cc) "Net worth" shall have the meaning ascribed 
    thereto in Section 3-5
of this Act.
        (dd) "Affiliate" shall mean:
            (1) any entity that directly controls or is 
        controlled by the licensee
and any other company that 
        is directly affecting activities regulated by
this Act 
        that is controlled by the company that controls the 
        licensee;
            (2) any entity:
                (A) that is controlled, directly or 
            indirectly, by a trust or otherwise,
by or for the 
            benefit of shareholders who beneficially or 
            otherwise
control, directly or indirectly, by 
            trust or otherwise, the licensee or any
company 
            that controls the licensee; or
                (B) a majority of the directors or trustees of 
            which constitute a
majority of the persons holding 
            any such office with the licensee or any
company 
            that controls the licensee;
            (3) any company, including a real estate 
        investment trust, that is
sponsored and advised on a 
        contractual basis by the licensee or any
subsidiary or 
        affiliate of the licensee.
        (ee) "First tier subsidiary" shall be defined by 
    regulation
incorporating the comparable definitions used 
    by the Office of the
Comptroller of the Currency and the 
    Illinois Commissioner of Banks
and Real Estate.
        (ff) "Gross delinquency rate" means the quotient 
    determined by dividing
(1) the sum of (i) the number of 
    government-insured residential mortgage loans
funded or 
    purchased by a licensee in the preceding calendar year that 
    are
delinquent and (ii) the number of conventional 
    residential mortgage loans
funded or purchased by the 
    licensee in the preceding calendar year that are
delinquent 
    by (2) the sum of (i) the number of government-insured 
    residential
mortgage loans funded or purchased by the 
    licensee in the preceding calendar
year and (ii) the number 
    of conventional residential mortgage loans funded or

    purchased by the licensee in the preceding calendar year.
        (gg) "Delinquency rate factor" means the factor set by 
    rule of the
Commissioner that is multiplied by the average 
    gross delinquency rate of
licensees, determined annually 
    for the immediately preceding calendar year, for
the 
    purpose of determining which licensees shall be examined by 
    the
Commissioner pursuant to subsection (b) of Section 4-8 
    of this Act.
        (hh) "Loan originator" means any natural person who, 
    for compensation or in
the expectation of compensation, 
    either directly or indirectly makes, offers to
make, 
    solicits, places, or negotiates a residential mortgage 
    loan. This definition applies only to Section 7-1 of this 
    Act. 
        (ii) "Confidential supervisory information" means any 
    report of examination, visitation, or investigation 
    prepared by the Commissioner under this Act, any report of 
    examination visitation, or investigation prepared by the 
    state regulatory authority of another state that examines a 
    licensee, any document or record prepared or obtained in 
    connection with or relating to any examination, 
    visitation, or investigation, and any record prepared or 
    obtained by the Commissioner to the extent that the record 
    summarizes or contains information derived from any 
    report, document, or record described in this subsection. 
    "Confidential supervisory information" does not include 
    any information or record routinely prepared by a licensee 
    and maintained in the ordinary course of business or any 
    information or record that is required to be made publicly 
    available pursuant to State or federal law or rule.

        (jj) "Mortgage loan originator" means an individual 
    who for compensation or gain or in the expectation of 
    compensation or gain:
            (i)  takes a residential mortgage loan application; 
        or
            (ii)  offers or negotiates terms of a residential 
        mortgage loan.
        "Mortgage loan originator" includes an individual 
    engaged in loan modification activities as defined in 
    subsection (yy) of this Section. A mortgage loan originator 
    engaged in loan modification activities shall report those 
    activities to the Department of Financial and Professional 
    Regulation in the manner provided by the Department; 
    however, the Department shall not impose a  fee for 
    reporting, nor require any additional qualifications to 
    engage in those activities beyond those provided pursuant 
    to this Act for mortgage loan originators. 
        "Mortgage loan originator" does not include an 
    individual engaged solely as a loan processor or 
    underwriter except as otherwise provided in subsection (d) 
    of Section 7-1A of this Act.
        "Mortgage loan originator"  does not include a person or 
    entity that only performs real estate brokerage activities 
    and is licensed in accordance with the Real Estate License 
    Act of 2000, unless the person or entity is compensated by 
    a lender, a mortgage broker, or other mortgage loan 
    originator, or by any agent of that lender, mortgage 
    broker, or other mortgage loan originator.
        "Mortgage loan originator" does not include a person or 
    entity solely involved in extensions of credit relating to 
    timeshare plans, as that term is defined in Section 
    101(53D) of Title 11, United States Code.
        (kk) "Depository institution" has the same meaning as 
    in Section 3 of the Federal Deposit Insurance Act, and 
    includes any credit union. 
        (ll) "Dwelling" means a residential structure or 
    mobile home which contains one to 4 family housing units, 
    or individual units of condominiums or cooperatives. 
        (mm) "Immediate family member" means a spouse, child, 
    sibling, parent, grandparent, or grandchild, and includes 
    step-parents, step-children, step-siblings, or adoptive 
    relationships.
        (nn) "Individual" means a natural person. 
        (oo) "Loan processor or underwriter" means an 
    individual who performs clerical or support duties as an 
    employee at the direction of and subject to the supervision 
    and instruction of a person licensed, or exempt from 
    licensing, under this Act. "Clerical or support duties" 
    includes subsequent to the receipt of an application:
            (i) the receipt, collection, distribution, and 
        analysis of information common for the processing or 
        underwriting of a residential mortgage loan; and
            (ii) communicating with a consumer to obtain the 
        information necessary for the processing or 
        underwriting of a loan, to the extent that the 
        communication does not include offering or negotiating 
        loan rates or terms, or counseling consumers about 
        residential mortgage loan rates or terms. An 
        individual engaging solely in loan processor or 
        underwriter activities shall not represent to the 
        public, through advertising or other means of 
        communicating or providing information, including the 
        use of business cards, stationery, brochures, signs, 
        rate lists, or other promotional items, that the 
        individual can or will perform any of the activities of 
        a mortgage loan originator. 
        (pp) "Nationwide Mortgage Licensing System and 
    Registry" means a mortgage licensing system developed and 
    maintained by the Conference of State Bank Supervisors and 
    the American Association of Residential Mortgage 
    Regulators for the licensing and registration of licensed 
    mortgage loan originators. 
        (qq) "Nontraditional mortgage product" means any 
    mortgage product other than a 30-year fixed rate mortgage.
        (rr) "Person" means a natural person, corporation, 
    company, limited liability company, partnership, or 
    association.
        (ss) "Real estate brokerage activity" means any 
    activity that involves offering or providing real estate 
    brokerage services to the public, including:
            (1)  acting as a real estate agent or real estate 
        broker for a buyer, seller, lessor, or lessee of real 
        property;
            (2)  bringing together parties interested in the 
        sale, purchase, lease, rental, or exchange of real 
        property;
            (3)  negotiating, on behalf of any party, any 
        portion of a contract relating to the sale, purchase, 
        lease, rental, or exchange of real property, other than 
        in connection with providing financing with respect to 
        any such transaction;
            (4)  engaging in any activity for which a person 
        engaged in the activity is required to be registered or 
        licensed as a real estate agent or real estate broker 
        under any applicable law; or
            (5) offering to engage in any activity, or act in 
        any capacity, described in this subsection (ss). 
        (tt) "Registered mortgage loan originator" means any 
    individual that:
            (1)  meets the definition of mortgage loan 
        originator and is an employee of:
                (A)  a depository institution;
                (B) a subsidiary that is:
                    (i)  owned and controlled by a depository 
                institution; and
                    (ii)   regulated by a federal banking 
                agency; or
                (C)  an institution regulated by the Farm 
            Credit Administration; and
            (2)  is registered with, and maintains a unique 
        identifier through, the Nationwide Mortgage Licensing 
        System and Registry.
        (uu) "Unique identifier" means a number or other 
    identifier assigned by protocols established by the 
    Nationwide Mortgage Licensing System and Registry. 
        (vv) "Residential mortgage license" means a license 
    issued pursuant to Section 1-3, 2-2, or 2-6 of this Act. 
        (ww) "Mortgage loan originator license" means a 
    license issued pursuant to Section 7-1A, 7-3, or 7-6 of 
    this Act. 
        (xx)  "Secretary" means the Secretary of the Department 
    of Financial and Professional Regulation, or a person 
    authorized by the Secretary or by this Act to act in the 
    Secretary's stead. 
        (yy) "Loan modification" means, for compensation or 
    gain, either directly or indirectly offering or 
    negotiating on behalf of a borrower or homeowner to adjust 
    the terms of a residential mortgage loan in a manner not 
    provided for in the original or previously modified 
    mortgage loan. 
        (zz) "Short sale facilitation" means, for compensation 
    or gain, either directly or indirectly offering or 
    negotiating on behalf of a borrower or homeowner to 
    facilitate the sale of residential real estate subject to 
    one or more residential mortgage loans or debts 
    constituting liens on the property in which the proceeds 
    from selling the residential real estate will fall short of 
    the amount owed and the lien holders are contacted to agree 
    to release their lien on the residential real estate and 
    accept less than the full amount owed on the debt. 
    The Commissioner may define by rule and regulation any 
terms used
in this Act for the efficient and clear 
administration of this Act.
(Source: P.A. 98-749, eff. 7-16-14; 98-1081, eff. 1-1-15; 
99-78, eff. 7-20-15.)
 


    (205 ILCS 635/4-1)  (from Ch. 17, par. 2324-1)




    Sec. 4-1. Commissioner of Banks and Real Estate; functions, 
powers, and duties. The functions,
powers, and duties of the 
Commissioner of Banks and Real Estate shall include the 
following:

        (a) to issue or refuse to issue any license as provided 
    by this Act;

        (b) to revoke or suspend for cause any license issued 
    under this Act;

        (c) to keep records of all licenses issued under this 
    Act;

        (d) to receive, consider, investigate, and act upon 
    complaints made by
any person in connection with any 
    residential mortgage licensee in this State;

        (e) (blank); to consider and act upon any 
    recommendations from the Residential
Mortgage Board;

        (f) to prescribe the forms of and receive:

            (1) applications for licenses; and

            (2) all reports and all books and records required 
        to be made by
any licensee under this Act, including 
        annual audited financial statements
and annual reports 
        of mortgage activity;

        (g) to adopt rules and regulations necessary and proper 
    for the
administration of this Act;

        (h) to subpoena documents and witnesses and compel 
    their attendance and
production, to administer oaths, and 
    to require the production of any books,
papers, or other 
    materials relevant to any inquiry authorized by this Act;

        (h-1)  to issue orders against any person, if the 
    Commissioner has reasonable cause to believe that an 
    unsafe, unsound, or unlawful practice has occurred, is 
    occurring, or is about to occur, if any person has 
    violated, is violating, or is about to violate any law, 
    rule, or written agreement with the Commissioner, or for 
    the purpose of administering the provisions of this Act and 
    any rule adopted in accordance with the Act;
        (h-2)  to address any inquiries to any licensee, or the 
    officers thereof, in relation to its activities and 
    conditions, or any other matter connected with its affairs, 
    and it shall be the duty of any licensee or person so 
    addressed, to promptly reply in writing to such inquiries.  
    The Commissioner may also require reports from any licensee 
    at any time the Commissioner may deem desirable;

        (i) to require information with regard to any license 
    applicant
as he or she may deem desirable, with due regard 
    to the paramount interests
of the public as to the 
    experience, background, honesty, truthfulness,
integrity, 
    and competency of the license applicant as to financial

    transactions involving primary or subordinate mortgage 
    financing, and where
the license applicant is an entity 
    other than an individual, as to the
honesty, truthfulness, 
    integrity, and competency of any officer or director
of the 
    corporation, association, or other entity, or the members 
    of a
partnership;

        (j) to examine the books and records of every licensee 
    under this Act at
intervals as specified in Section 4-2;

        (k) to enforce provisions of this Act;

        (l) to levy fees, fines, and charges for services 
    performed in administering
this Act; the aggregate of all 
    fees collected by the Commissioner on and after
the 
    effective date of this Act shall be paid promptly after 
    receipt of the
same, accompanied by a detailed statement 
    thereof, into the
Residential Finance Regulatory Fund 
    under Section 4-1.5 of this Act; the amounts deposited into 
    that Fund shall
be used for the ordinary and contingent 
    expenses of the Office of Banks and
Real Estate.  Nothing in 
    this Act shall prevent continuing the practice of paying

    expenses involving salaries, retirement, social security, 
    and State-paid
insurance of State officers by 
    appropriation from the General Revenue Fund.

        (m) to appoint examiners, supervisors, experts, and 
    special assistants as
needed to effectively and 
    efficiently administer this Act;

        (n) to conduct hearings for the purpose of:

            (1) appeals of orders of the Commissioner;

            (2) suspensions or revocations of licenses, or 
        fining of licensees;

            (3) investigating:

                (i) complaints against licensees; or

                (ii) annual gross delinquency rates; and

            (4) carrying out the purposes of this Act;

        (o) to exercise exclusive visitorial power over a 
    licensee unless otherwise authorized by this Act or as 
    vested in the courts, or upon prior consultation with the 
    Commissioner, a foreign residential mortgage regulator 
    with an appropriate supervisory interest in the parent or 
    affiliate of a licensee;

        (p) to enter into cooperative agreements with state 
    regulatory authorities of other states to provide for 
    examination of corporate offices or branches of those 
    states and to accept reports of such examinations;

        (q) to assign an examiner or examiners to monitor the 
    affairs of a licensee with whatever frequency the 
    Commissioner determines appropriate and to charge the 
    licensee for reasonable and necessary expenses of the 
    Commissioner, if in the opinion of the Commissioner an 
    emergency exists or appears likely to occur;

        (r) to impose civil penalties of up to $50 per day 
    against a licensee for failing to respond to a regulatory 
    request or reporting requirement; and

        (s)  to enter into agreements in connection with the 
    Nationwide Mortgage Licensing System and Registry. 
(Source: P.A. 98-1081, eff. 1-1-15.)

 


    (205 ILCS 635/4-8)  (from Ch. 17, par. 2324-8)




    Sec. 4-8. Delinquency; examination. 

    (a) The Commissioner shall obtain from the U.S. Department 
of Housing and
Urban Development that Department's loan 
delinquency data.

    (b) The Commissioner shall conduct as part of an 
examination of each licensee a review of the licensee's loan 
delinquency data.

    This subsection shall not be construed as a limitation
of 
the Commissioner's examination authority under Section 4-2 of 
this Act or as
otherwise provided in this Act.
The Commissioner 
may require a licensee to provide loan delinquency
data as the 
Commissioner deems necessary for the proper enforcement
of the 
Act.

    (c) The purpose of the examination under subsection (b) 
shall be
to determine whether the loan delinquency data of the

licensee has resulted from practices which deviate from
sound 
and accepted mortgage underwriting practices, including but 
not
limited to credit fraud, appraisal fraud and property 
inspection fraud.
For the purpose of conducting this 
examination, the Commissioner may accept
materials prepared 
for the U.S. Department of Housing and Urban Development.
At 
the conclusion of the examination, the Commissioner shall make 
his or
her findings available to the Residential Mortgage 
Board.

    (d) The Commissioner, at his or her discretion, may hold 
public
hearings, or at the direction of the Residential 
Mortgage Board, shall hold
public hearings. Such testimony 
shall be by a homeowner or mortgagor or his
agent, whose 
residential interest is affected by the activities of the

residential mortgage licensee subject to such hearing.
At such 
public hearing, a witness may present testimony on his or her 
behalf
concerning only his or her home, or home mortgage or a 
witness may authorize a
third party to appear on his or her 
behalf.  The testimony shall be
restricted to information and 
comments related to a specific residence or
specific 
residential mortgage application or applications for a 
residential
mortgage or residential loan transaction.  The 
testimony must be preceded
by either a letter of complaint or a 
completed consumer complaint form
prescribed by the 
Commissioner.

    (e) The Commissioner shall, at the conclusion of the public 
hearings,
release his or her findings and shall also make 
public any action taken
with respect to the licensee. The 
Commissioner shall also give full
consideration to the findings 
of this examination whenever reapplication is
made by the 
licensee for a new license under this Act.

    (f) A licensee that is examined pursuant to subsection (b)

shall submit to the Commissioner a plan which shall be designed 
to reduce that
licensee's loan delinquencies.  The plan shall be 
implemented by the
licensee as approved by the Commissioner.  A 
licensee that is
examined pursuant to subsection (b) shall 
report monthly,
for a one year period, one, 2, and 3 month loan 
delinquencies.

    (g) Whenever the Commissioner finds that a licensee's loan 
delinquencies

on insured mortgages is unusually high within a 
particular
geographic area, he or she shall require that 
licensee to submit such
information as is necessary to 
determine whether that licensee's practices
have constituted 
credit fraud, appraisal fraud or property inspection
fraud.  The 
Commissioner shall promulgate such rules as are necessary to

determine whether any licensee's loan delinquencies are

unusually high within a particular area.

(Source: P.A. 99-15, eff. 1-1-16.)

 
    (205 ILCS 635/1-5 rep.)
    Section 20. The Residential Mortgage License Act of 1987 is 
amended by repealing Section 1-5.
 
 
    Section 99. Effective date. This Act takes effect upon 
becoming law.