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| Public Act 102-0934 | ||||
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AN ACT concerning State government.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 1. Short title. This Act may be cited as the Real | ||||
Estate Valuation Task Force Act. | ||||
Section 5. Findings. The General Assembly finds and | ||||
declares the following:
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(1) Two federal agencies, the Federal Home Owners' | ||||
Loan Corporation and the Federal Housing Administration, | ||||
played a major role in the development of the modern home | ||||
mortgage origination industry.
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(2) Both federal agencies explicitly considered the | ||||
racial and ethnic make-up of neighborhoods when | ||||
underwriting loans and valuing the real estate to be used | ||||
as home loan collateral.
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(3) Both agencies devalued property or refused to make | ||||
loans secured by property in communities of color.
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(4) The harmful consequences of this discrimination | ||||
remain unresolved.
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Section 10. Real Estate Valuation Task Force.
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(a) The Real Estate Valuation Task Force is hereby | ||||
established.
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(b) The Task Force shall consist of the following members:
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(1) 4 members appointed one each by the Speaker of the | ||
House of Representatives, the Minority Leader of the House | ||
of Representatives, the President of the Senate, and the | ||
Minority Leader of the Senate;
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(2) the Secretary of Financial and Professional | ||
Regulation, or a designee;
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(3) the Director of Commerce and Economic Opportunity, | ||
or a designee;
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(4) the Director of Human Rights, or a designee;
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(5) the Director of Revenue, or a designee;
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(6) the Executive Director of the Illinois Housing | ||
Development Authority, or a designee;
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(7) a representative of a statewide banking | ||
association representing banks of all asset sizes, | ||
appointed by the Governor;
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(8) a representative of a statewide banking | ||
association exclusively representing banks with assets | ||
below $20,000,000,000, appointed by the Governor;
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(9) a representative of a statewide association | ||
representing credit unions, appointed by the Governor; | ||
(10) a representative of an agency, organization, or | ||
association advocating for fair housing, appointed by the | ||
Governor; | ||
(11) a representative of an agency, organization, or | ||
association for consumer protection, appointed by the | ||
Governor; and | ||
(12) a representative of a statewide appraisal | ||
organization, appointed by the Governor. | ||
(c) Initial appointments to the Task Force shall be made | ||
as soon as practicable after the effective date of this Act. | ||
The Task Force shall hold its first meeting within a | ||
reasonable period of time after the completion of the | ||
appointment of its members, and shall convene regularly to | ||
carry out its duties and submit the reports required under | ||
this Act. At its first meeting, the Task Force shall elect its | ||
chair and any other officers from among its members.
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(d) Members of the Task Force shall serve without | ||
compensation.
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(e) The Department of Financial and Professional | ||
Regulation shall provide administrative and other support to | ||
the Task Force. Each agency and entity represented on the Task | ||
Force shall also share with the Task Force any data of the | ||
agency or entity necessary for the Task Force to carry out its | ||
duties under this Act.
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Section 15. Task Force duties.
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(a) The Task Force shall have the following duties:
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(1) harmonize to the greatest extent possible the | ||
various collateral underwriting standards and guidance of | ||
the agencies and entities represented on the Task Force | ||
governing residential and commercial real estate | ||
valuations, including standards and guidance with respect | ||
to appraisals, non-traditional and alternative methods of | ||
providing real estate property evaluations, such as | ||
automated valuation models, processes, and procedures for | ||
managing reconsiderations of value by consumers, and | ||
standards and guidance with respect to common collateral | ||
underwriting challenges, such as energy efficient housing | ||
and limited or inactive markets;
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(2) to the extent that standards or guidance described | ||
under paragraph (1) are not harmonized, the Task Force | ||
shall issue a report to the General Assembly explaining | ||
why harmonization cannot or should not be implemented;
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(3) establish specific definitions for limited or | ||
inactive housing markets in which comparable sales are | ||
limited or unavailable over a certain period of time, and | ||
establish greater flexibilities and guidance for | ||
appraisals and any underwriting processes associated with | ||
appraisals conducted in such markets, such as the ability | ||
to consider market evidence for similar properties in | ||
other geographic areas or utilizing a range of value;
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(4) aggregate data across Task Force members and | ||
conduct a study to determine whether there are racial | ||
disparities at both the borrower and community level in | ||
the valuation and price of the residential real estate to | ||
be used as collateral for mortgage applications processed | ||
by Task Force members;
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(5) identify specific causes of such racial | ||
disparities and (i) adopt changes to address such causes; | ||
or (ii) if the Task Force determines that additional | ||
statutory authority is needed to adopt such changes, issue | ||
a report to the General Assembly describing the needed | ||
statutory authority; and
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(6) evaluate whether there are any barriers to entry | ||
that are disproportionately preventing minorities from | ||
entering into the appraisal profession.
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(b) In carrying out its duties under this Act, the Task | ||
Force shall consult with the following individuals or | ||
entities: (i) civil rights advocates; (ii) consumer advocates; | ||
(iii) real estate appraisers; (iv) small lenders; (v) trade | ||
groups; (vi) appraisal management companies; (vii) experts on | ||
alternative valuation models; and (viii) an organization that | ||
adopts appraisal standards and appraiser qualification | ||
criteria.
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Section 20. Reports.
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(a) The Task Force shall submit a report to the Governor | ||
and the General Assembly not later than the expiration of the | ||
24-month period beginning on the effective date of this Act | ||
detailing the findings and any actions taken to further the | ||
duties of the Task Force as of such time and describing any | ||
planned efforts and activities.
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(b) Periodically, after the submission of the initial | ||
report under subsection (a), the Task Force shall submit | ||
reports to the Governor and the General Assembly setting forth | ||
updates of the findings and actions taken to further the | ||
duties of the Task Force. The reports required under this | ||
subsection (b) shall continue for the duration of the Task | ||
Force.
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Section 25. Termination of Task Force; repeal.
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(a) The Task Force shall terminate upon the expiration of | ||
the 5-year period beginning on the effective date of this Act.
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(b) This Act is repealed on January 1, 2029.
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