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| [ Introduced ] | [ House Amendment 001 ] |
91_HB3007ham002
LRB9109639JSpcam06
1 AMENDMENT TO HOUSE BILL 3007
2 AMENDMENT NO. . Amend House Bill 3007, AS AMENDED,
3 by replacing the title with the following:
4 "AN ACT to amend the Residential Mortgage License Act of
5 1987."; and
6 by replacing everything after the enacting clause with
7 the following:
8 "Section 5. The Residential Mortgage License Act of 1987
9 is amended by changing Sections 1-4, 1-5, and 4-8 and adding
10 Sections 4-8.1, 4-8.2, 4-8.3, 4-8.4, 4-8.5, 4-8.6, 4-8.7,
11 4-8.8, 4-8.9, 4-8.10, and 4-8.11 as follows:
12 (205 ILCS 635/1-4) (from Ch. 17, par. 2321-4)
13 Sec. 1-4. Definitions.
14 (a) "Residential real property" or "residential real
15 estate" shall mean real property located in this State
16 improved by a one-to-four family dwelling used or occupied,
17 wholly or partly, as the home or residence of one or more
18 persons and may refer, subject to regulations of the
19 Commissioner, to unimproved real property upon which those
20 kinds dwellings are to be constructed.
21 (b) "Making a residential mortgage loan" or "funding a
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1 residential mortgage loan" shall mean for compensation or
2 gain, either directly or indirectly, advancing funds or
3 making a commitment to advance funds to a loan applicant for
4 a residential mortgage loan.
5 (c) "Soliciting, processing, placing, or negotiating a
6 residential mortgage loan" shall mean for compensation or
7 gain, either directly or indirectly, accepting or offering to
8 accept an application for a residential mortgage loan,
9 assisting or offering to assist in the processing of an
10 application for a residential mortgage loan on behalf of a
11 borrower, or negotiating or offering to negotiate the terms
12 or conditions of a residential mortgage loan with a lender on
13 behalf of a borrower including, but not limited to, the
14 submission of credit packages for the approval of lenders,
15 the preparation of residential mortgage loan closing
16 documents, including a closing in the name of a broker.
17 (d) "Exempt entity" shall mean the following:
18 (1) (i) Any banking organization or foreign banking
19 corporation licensed by the Illinois Commissioner of
20 Banks and Real Estate or the United States Comptroller of
21 the Currency to transact business in this State; (ii) any
22 national bank, federally chartered savings and loan
23 association, federal savings bank, federal credit union;
24 (iii) any pension trust, bank trust, or bank trust
25 company; (iv) any savings and loan association, savings
26 bank, or credit union organized under the laws of this or
27 any other state; (v) any Illinois Consumer Installment
28 Loan Act licensee; (vi) any insurance company authorized
29 to transact business in this State; (vii) any entity
30 engaged solely in commercial mortgage lending; (viii) any
31 service corporation of a savings and loan association or
32 savings bank organized under the laws of this State or
33 the service corporation of a federally chartered savings
34 and loan association or savings bank having its principal
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1 place of business in this State, other than a service
2 corporation licensed or entitled to reciprocity under the
3 Real Estate License Act of 2000; or (ix) any first tier
4 subsidiary of a bank, the charter of which is issued
5 under the Illinois Banking Act by the Illinois
6 Commissioner of Banks and Real Estate, or the first tier
7 subsidiary of a bank chartered by the United States
8 Comptroller of the Currency and that has its principal
9 place of business in this State, provided that the first
10 tier subsidiary is regularly examined by the Illinois
11 Commissioner of Banks and Real Estate or the Comptroller
12 of the Currency, or a consumer compliance examination is
13 regularly conducted by the Federal Reserve Board.
14 (2) Any person or entity that either (i) has a
15 physical presence in Illinois or (ii) does not originate
16 mortgage loans in the ordinary course of business making
17 or acquiring residential mortgage loans with his or her
18 or its own funds for his or her or its own investment
19 without intent to make, acquire, or resell more than 10
20 residential mortgage loans in any one calendar year.
21 (3) Any person employed by a licensee to assist in
22 the performance of the activities regulated by this Act
23 who is compensated in any manner by only one licensee.
24 (4) Any person licensed pursuant to the Real Estate
25 License Act of 2000, who engages only in the taking of
26 applications and credit and appraisal information to
27 forward to a licensee or an exempt entity under this Act
28 and who is compensated by either a licensee or an exempt
29 entity under this Act, but is not compensated by either
30 the buyer (applicant) or the seller.
31 (5) Any individual, corporation, partnership, or
32 other entity that originates, services, or brokers
33 residential mortgage loans, as these activities are
34 defined in this Act, and who or which receives no
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1 compensation for those activities, subject to the
2 Commissioner's regulations with regard to the nature and
3 amount of compensation.
4 (6) A person who prepares supporting documentation
5 for a residential mortgage loan application taken by a
6 licensee and performs ministerial functions pursuant to
7 specific instructions of the licensee who neither
8 requires nor permits the preparer to exercise his or her
9 discretion or judgment; provided that this activity is
10 engaged in pursuant to a binding, written agreement
11 between the licensee and the preparer that:
12 (A) holds the licensee fully accountable for
13 the preparer's action; and
14 (B) otherwise meets the requirements of this
15 Section and this Act, does not undermine the
16 purposes of this Act, and is approved by the
17 Commissioner.
18 (e) "Licensee" or "residential mortgage licensee" shall
19 mean a person, partnership, association, corporation, or any
20 other entity who or which is licensed pursuant to this Act to
21 engage in the activities regulated by this Act.
22 (f) "Mortgage loan", "residential mortgage loan", or
23 "home mortgage loan" shall mean a loan to or for the benefit
24 of any natural person made primarily for personal, family, or
25 household use, primarily secured by either a mortgage on
26 residential real property or certificates of stock or other
27 evidence of ownership interests in and proprietary leases
28 from, corporations, partnerships, or limited liability
29 companies formed for the purpose of cooperative ownership of
30 residential real property, all located in Illinois.
31 (g) "Lender" shall mean any person, partnership,
32 association, corporation, or any other entity who either
33 lends or invests money in residential mortgage loans.
34 (h) "Ultimate equitable owner" shall mean a person who,
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1 directly or indirectly, owns or controls an ownership
2 interest in a corporation, foreign corporation, alien
3 business organization, trust, or any other form of business
4 organization regardless of whether the person owns or
5 controls the ownership interest through one or more persons
6 or one or more proxies, powers of attorney, nominees,
7 corporations, associations, partnerships, trusts, joint stock
8 companies, or other entities or devices, or any combination
9 thereof.
10 (i) "Residential mortgage financing transaction" shall
11 mean the negotiation, acquisition, sale, or arrangement for
12 or the offer to negotiate, acquire, sell, or arrange for, a
13 residential mortgage loan or residential mortgage loan
14 commitment.
15 (j) "Personal residence address" shall mean a street
16 address and shall not include a post office box number.
17 (k) "Residential mortgage loan commitment" shall mean a
18 contract for residential mortgage loan financing.
19 (l) "Party to a residential mortgage financing
20 transaction" shall mean a borrower, lender, or loan broker in
21 a residential mortgage financing transaction.
22 (m) "Payments" shall mean payment of all or any of the
23 following: principal, interest and escrow reserves for taxes,
24 insurance and other related reserves, and reimbursement for
25 lender advances.
26 (n) "Commissioner" shall mean the Commissioner of Banks
27 and Real Estate or a person authorized by the Commissioner,
28 the Office of Banks and Real Estate Act, or this Act to act
29 in the Commissioner's stead.
30 (o) "Loan brokering", "brokering", or "brokerage
31 service" shall mean the act of helping to obtain from another
32 entity, for a borrower, a loan secured by residential real
33 estate situated in Illinois or assisting a borrower in
34 obtaining a loan secured by residential real estate situated
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1 in Illinois in return for consideration to be paid by either
2 the borrower or the lender including, but not limited to,
3 contracting for the delivery of residential mortgage loans to
4 a third party lender and soliciting, processing, placing, or
5 negotiating residential mortgage loans.
6 (p) "Loan broker" or "broker" shall mean a person,
7 partnership, association, corporation, or limited liability
8 company, other than those persons, partnerships,
9 associations, corporations, or limited liability companies
10 exempted from licensing pursuant to Section 1-4, subsection
11 (d), of this Act, who performs the activities described in
12 subsections (c) and (o) of this Section.
13 (q) "Servicing" shall mean the collection or remittance
14 for or the right or obligation to collect or remit for any
15 lender, noteowner, noteholder, or for a licensee's own
16 account, of payments, interests, principal, and trust items
17 such as hazard insurance and taxes on a residential mortgage
18 loan in accordance with the terms of the residential mortgage
19 loan; and includes loan payment follow-up, delinquency loan
20 follow-up, loan analysis and any notifications to the
21 borrower that are necessary to enable the borrower to keep
22 the loan current and in good standing.
23 (r) "Full service office" shall mean office and staff in
24 Illinois reasonably adequate to handle efficiently
25 communications, questions, and other matters relating to any
26 application for, or an existing home mortgage secured by
27 residential real estate situated in Illinois with respect to
28 which the licensee is brokering, funding originating,
29 purchasing, or servicing. The management and operation of
30 each full service office must include observance of good
31 business practices such as adequate, organized, and accurate
32 books and records; ample phone lines, hours of business,
33 staff training and supervision, and provision for a mechanism
34 to resolve consumer inquiries, complaints, and problems. The
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1 Commissioner shall issue regulations with regard to these
2 requirements and shall include an evaluation of compliance
3 with this Section in his or her periodic examination of each
4 licensee.
5 (s) "Purchasing" shall mean the purchase of conventional
6 or government-insured mortgage loans secured by residential
7 real estate situated in Illinois from either the lender or
8 from the secondary market.
9 (t) "Borrower" shall mean the person or persons who seek
10 the services of a loan broker, originator, or lender.
11 (u) "Originating" shall mean the issuing of commitments
12 for and funding of residential mortgage loans.
13 (v) "Loan brokerage agreement" shall mean a written
14 agreement in which a broker or loan broker agrees to do
15 either of the following:
16 (1) obtain a residential mortgage loan for the
17 borrower or assist the borrower in obtaining a
18 residential mortgage loan; or
19 (2) consider making a residential mortgage loan to
20 the borrower.
21 (w) "Advertisement" shall mean the attempt by
22 publication, dissemination, or circulation to induce,
23 directly or indirectly, any person to enter into a
24 residential mortgage loan agreement or residential mortgage
25 loan brokerage agreement relative to a mortgage secured by
26 residential real estate situated in Illinois.
27 (x) "Residential Mortgage Board" shall mean the
28 Residential Mortgage Board created in Section 1-5 of this
29 Act.
30 (y) "Government-insured mortgage loan" shall mean any
31 mortgage loan made on the security of residential real estate
32 insured by the Department of Housing and Urban Development or
33 Farmers Home Loan Administration, or guaranteed by the
34 Veterans Administration.
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1 (z) "Annual audit" shall mean a certified audit of the
2 licensee's books and records and systems of internal control
3 performed by a certified public accountant in accordance with
4 generally accepted accounting principles and generally
5 accepted auditing standards.
6 (aa) "Financial institution" shall mean a savings and
7 loan association, savings bank, credit union, or a bank
8 organized under the laws of Illinois or a savings and loan
9 association, savings bank, credit union or a bank organized
10 under the laws of the United States and headquartered in
11 Illinois.
12 (bb) "Escrow agent" shall mean a third party, individual
13 or entity charged with the fiduciary obligation for holding
14 escrow funds on a residential mortgage loan pending final
15 payout of those funds in accordance with the terms of the
16 residential mortgage loan.
17 (cc) "Net worth" shall have the meaning ascribed thereto
18 in Section 3-5 of this Act.
19 (dd) "Affiliate" shall mean:
20 (1) any entity that directly controls or is
21 controlled by the licensee and any other company that is
22 directly affecting activities regulated by this Act that
23 is controlled by the company that controls the licensee;
24 (2) any entity:
25 (A) that is controlled, directly or
26 indirectly, by a trust or otherwise, by or for the
27 benefit of shareholders who beneficially or
28 otherwise control, directly or indirectly, by trust
29 or otherwise, the licensee or any company that
30 controls the licensee; or
31 (B) a majority of the directors or trustees of
32 which constitute a majority of the persons holding
33 any such office with the licensee or any company
34 that controls the licensee;
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1 (3) any company, including a real estate investment
2 trust, that is sponsored and advised on a contractual
3 basis by the licensee or any subsidiary or affiliate of
4 the licensee.
5 The Commissioner may define by rule and regulation any
6 terms used in this Act for the efficient and clear
7 administration of this Act.
8 (ee) "First tier subsidiary" shall be defined by
9 regulation incorporating the comparable definitions used by
10 the Office of the Comptroller of the Currency and the
11 Illinois Commissioner of Banks and Real Estate.
12 (ff) "Gross delinquency rate" means the quotient
13 determined by dividing (1) the sum of (i) the number of
14 government-insured residential mortgage loans funded or
15 purchased by a licensee in the preceding calendar year that
16 are delinquent and (ii) the number of conventional
17 residential mortgage loans funded or purchased by the
18 licensee in the preceding calendar year that are delinquent
19 by (2) the sum of (i) the number of government-insured
20 residential mortgage loans funded or purchased by the
21 licensee in the preceding calendar year and (ii) the number
22 of conventional residential mortgage loans funded or
23 purchased by the licensee in the preceding calendar year.
24 (gg) "Delinquency rate factor" means the factor set by
25 rule of the Commissioner that is multiplied by the average
26 gross delinquency rate of licensees, determined annually for
27 the immediately preceding calendar year, for the purpose of
28 determining which licensees shall be examined by the
29 Commissioner pursuant to subsection (b) of Section 4-8 of
30 this Act.
31 (Source: P.A. 90-772, eff. 1-1-99; 91-245, eff. 12-31-99.)
32 (205 ILCS 635/1-5) (from Ch. 17, par. 2321-5)
33 Sec. 1-5. Residential Mortgage Board.
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1 (a) Board composition, compensation. There is created
2 the Residential Mortgage Board composed of 7 5 members
3 appointed by the Commissioner of Banks and Real Estate. The
4 majority of persons on the Board shall have no financial
5 interest in any residential mortgage business and one member
6 shall be a representative of the Mortgage Banking Trade
7 Association, and one member shall be a representative of the
8 Mortgage Broker Trade Association, one member shall be a
9 representative of the National Training and Information
10 Center and one member shall be a representative of the
11 Woodstock Institute. Members of the Board serving on the
12 effective date of this amendatory Act of 1996 shall continue
13 to serve their unexpired terms as members of the Residential
14 Mortgage Board. Thereafter, on or before January 15 of each
15 year, the Commissioner shall appoint one or more board
16 members, as shall be necessary to maintain a 7 5 member
17 Board, whose terms shall be for 3 years commencing February 1
18 of the year in which they are respectively appointed.
19 If a vacancy occurs on the Residential Mortgage Board,
20 the Commissioner shall within 60 days appoint a new member
21 who shall hold office for the remainder of the vacated term.
22 The Board shall meet a minimum of 4 times each calendar
23 year and at the call of the chairman, who along with a
24 Secretary, shall be selected by the Board from among its
25 members.
26 Members of the Board shall be entitled to receive a per
27 diem allowance of $25 for each day or part of a day spent on
28 Board work and shall be entitled to their expenses actually
29 and necessarily incurred in the performance of their duties.
30 The members of the Board serve at the pleasure of the
31 Commissioner.
32 (b) Duties of Board. The Residential Mortgage Board
33 shall assist the Commissioner by:
34 (1) submitting recommendations to the Commissioner
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1 for the efficient administration of this Act; and
2 (2) submitting recommendations to the Commissioner
3 for establishing guidelines for professional conduct of
4 licensees under this Act, for the conduct of formal
5 disciplinary proceedings brought under this Act, and for
6 establishing guidelines for qualifications of applicants
7 under this Act;
8 (3) participating in hearings conducted pursuant to
9 Section 4-8.3 of this Act; and
10 (4) (2) performing other duties as are prescribed
11 by the Commissioner.
12 (c) Notice of proposed rulemaking shall be transmitted
13 to the Board, and the Commissioner shall review the response
14 of the Board and any recommendations made in their response.
15 The Commissioner, at any time, may seek the expert advice and
16 knowledge of the Board on any matter relating to the
17 administration or enforcement of this Act.
18 (d) (c) Conflict of interest declarations. Each member
19 of the Residential Mortgage Board shall file annually, no
20 later than February 1, with the Commissioner a statement of
21 his or her current business transactions or other
22 affiliations with any licensee under this Act. The
23 Commissioner may adopt rules to avoid conflicts of interest
24 on the part of members of the Residential Mortgage Board in
25 connection with their position on the Board.
26 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.)
27 (205 ILCS 635/4-8) (from Ch. 17, par. 2324-8)
28 Sec. 4-8. Default rate; examination.
29 (a) The Commissioner shall obtain from the U.S.
30 Department of Housing and Urban Development on a semi-annual
31 basis that Department's default claim rates for endorsements
32 issued by that Department.
33 (b) The Commissioner shall conduct an examination of
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1 each licensee having a default rate equal to or greater than
2 5%.
3 This subsection shall not be construed as a limitation of
4 the Commissioner's examination authority under Section 4-2 of
5 this Act or as otherwise provided in this Act. The
6 Commissioner may require a licensee to provide loan default
7 data as the Commissioner deems necessary for the proper
8 enforcement of the Act.
9 (c) The purpose of the examination under subsection (b)
10 shall be to determine whether the default rate of the
11 licensee has resulted from practices which deviate from sound
12 and accepted mortgage underwriting practices, including but
13 not limited to credit fraud, appraisal fraud and property
14 inspection fraud. For the purpose of conducting this
15 examination, the Commissioner may accept materials prepared
16 for the U.S. Department of Housing and Urban Development. At
17 the conclusion of the examination, the Commissioner shall
18 provide make his or her findings available to the Residential
19 Mortgage Board.
20 (d) The Commissioner, at his or her discretion, may hold
21 public hearings, or at the direction of the Residential
22 Mortgage Board, shall hold public hearings. Such testimony
23 shall be by a homeowner or mortgagor or his agent, whose
24 residential interest is affected by the activities of the
25 residential mortgage licensee subject to such hearing. At
26 such public hearing, a witness may present testimony on his
27 or her behalf concerning only his or her home, or home
28 mortgage or a witness may authorize a third party to appear
29 on his or her behalf. The testimony shall be restricted to
30 information and comments related to a specific residence or
31 specific residential mortgage application or applications for
32 a residential mortgage or residential loan transaction. The
33 testimony must be preceded by either a letter of complaint or
34 a completed consumer complaint form prescribed by the
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1 Commissioner.
2 (e) The Commissioner shall, at the conclusion of the
3 public hearings, release his or her findings and shall also
4 make public any action taken with respect to the licensee.
5 The Commissioner shall also give full consideration to the
6 findings of this examination whenever reapplication is made
7 by the licensee for a new license under this Act.
8 (f) A licensee that is examined pursuant to subsection
9 (b) shall submit to the Commissioner a plan which shall be
10 designed to reduce that licensee's default rate to a figure
11 that is less than 5%. The plan shall be implemented by the
12 licensee as approved by the Commissioner. A licensee that is
13 examined pursuant to subsection (b) shall report monthly, for
14 a one year period, one, 2, and 3 month defaults.
15 (g) Whenever the Commissioner finds that a licensee's
16 default rate on insured mortgages is unusually high within a
17 particular geographic area, he or she shall require that
18 licensee to submit such information as is necessary to
19 determine whether that licensee's practices have constituted
20 credit fraud, appraisal fraud or property inspection fraud.
21 The Commissioner shall promulgate such rules as are necessary
22 to determine whether any licensee's default rate is unusually
23 high within a particular area.
24 (Source: P.A. 89-355, eff. 1-1-96; 89-626, eff. 8-9-96;
25 90-301, eff. 8-1-97.)
26 (205 ILCS 635/4-8.1 new)
27 Sec. 4-8.1. Investigations; notice of hearing. Upon the
28 motion of either the Commissioner or the Residential Mortgage
29 Board or upon the verified complaint in writing of any person
30 setting forth facts which, if proven, would constitute
31 grounds for refusal, suspension, or revocation of license
32 under this Act, the Commissioner shall investigate the
33 actions of any person, hereinafter called the "licensee", who
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1 holds or represents that he or she holds a license under this
2 Act. The Commissioner shall, before suspending, revoking,
3 placing on probationary status, or taking any other
4 disciplinary action as the Commissioner may deem proper with
5 regard to any registration, at least 30 days prior to the
6 date set for the hearing, notify the licensee in writing of
7 any charges made and of the time and place for a hearing on
8 the charges. The Commissioner shall also direct the licensee
9 to file a written answer to the charges under oath within 20
10 days after the service of the notice upon the licensee and
11 inform the licensee that if he or she fails to file an
12 answer, his or her certificate of registration may be
13 suspended, revoked, or placed on probationary status or that
14 other disciplinary action may be taken with regard thereto,
15 as the Commissioner may deem proper. The written notice and
16 any notice in the proceeding may be served by delivery
17 personally to the licensee or by registered or certified mail
18 to the address specified by the licensee in his or her last
19 notification to the Commissioner. The Commissioner shall
20 preserve a record of all proceedings at the formal hearing of
21 any case involving the refusal to issue or renew a
22 registration or discipline of a licensee. The notice of
23 hearing, the complaint, all other documents in the nature of
24 pleadings and written motions filed in the proceedings, the
25 transcript of testimony, the report of the Board, and the
26 orders of the Commissioner shall be the record of the
27 proceedings.
28 (205 ILCS 635/4-8.2 new)
29 Sec. 4-8.2. Disciplinary actions.
30 (a) If a licensee, after receiving notice, fails to file
31 an answer, his or her license may, in the discretion of the
32 Commissioner, having first received the recommendation of the
33 Board, be suspended, revoked, or placed on probationary
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1 status, or the Commissioner may take whatever disciplinary
2 action he or she may deem proper, including the imposition of
3 a fine, without a hearing, if the act or acts charged
4 constitute sufficient grounds for such action under this Act.
5 (b) The Commissioner may temporarily suspend the
6 registration of a licensee without a hearing, simultaneous to
7 the institution of proceedings for a hearing under this Act,
8 if the Commissioner finds that evidence in his possession
9 indicates that the person's continuation of use of the title
10 would constitute an immediate danger to the public. In the
11 event that the Commissioner temporarily suspends the
12 registration of a licensee without a hearing, a hearing
13 pursuant to Section 4-8.3 must be held within 15 days after
14 the suspension has occurred and must be concluded without
15 appreciable delay.
16 (205 ILCS 635/4-8.3 new)
17 Sec. 4-8.3. Hearings. At the time and place fixed in the
18 notice of hearing, the Commissioner shall proceed to hear the
19 charges before the Board, and both the licensee and the
20 complainant shall be accorded ample opportunity to present in
21 person, or by counsel, such statements, testimony, evidence,
22 and arguments as may be pertinent to the charges or to their
23 defense. The Commissioner may continue the hearing from time
24 to time. If the Board is not sitting at the time and place
25 fixed in the notice or at the time and place to which the
26 hearing has been continued, the Commissioner shall continue
27 the hearing for a period not to exceed 30 days. The
28 Commissioner shall have power to subpoena and bring before
29 him or her any licensee under this Act and to take testimony
30 either orally or by deposition, or both, with the same fees
31 and mileage and in the same manner as prescribed for civil
32 actions in this State. The Commissioner shall have power to
33 administer oaths at any hearing at which the Commissioner is
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1 authorized by law to conduct.
2 (205 ILCS 635/4-8.4 new)
3 Sec. 4-8.4. Attendance of witnesses; production of
4 documents. Any circuit court, upon the application of the
5 Commissioner, may order the attendance of witnesses and the
6 production of relevant books and papers in any hearing
7 relative to the application for a suspension of, revocation
8 of, or refusal to renew a registration of, or the discipline
9 of a licensee. The court may compel obedience to its order by
10 proceedings for contempt.
11 (205 ILCS 635/4-8.5 new)
12 Sec. 4-8.5. Recommendations for disciplinary action;
13 action by Commissioner. The Board may advise the Commissioner
14 that probation be granted or that other disciplinary action,
15 including the limitation of the use of license, be taken, as
16 it deems proper. If disciplinary action other than suspension
17 or revocation is taken, the Board may advise the Commissioner
18 to impose reasonable limitations and requirements upon the
19 licensee to insure compliance with the terms of the probation
20 or other disciplinary action in such manner as the
21 Commissioner may require. The Board shall present to the
22 Commissioner a written report of its findings and
23 recommendations. A copy of the report shall be served upon
24 the licensee, either personally or by registered or certified
25 mail. Within 20 days after such service, the licensee may
26 present to the Commissioner his motion in writing for a
27 rehearing, specifying the particular grounds for rehearing.
28 If the licensee orders and pays for a transcript of the
29 record, the time elapsing until the transcript is ready for
30 delivery to him shall not be counted as part of such 20 days.
31 At the expiration of the time allowed for filing a motion for
32 rehearing, the Commissioner may take the action recommended
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1 by the Board. Upon suspension, revocation, placement on
2 probationary status, or the taking of any other disciplinary
3 action, including the limiting of the use of the license,
4 deemed proper by the Commissioner, the licensee shall
5 surrender his or her license to the Commissioner if ordered
6 to do so by the Commissioner. Upon a failure or refusal to
7 do so, the Commissioner may seize the license. In all
8 instances in which the Board has rendered a recommendation to
9 the Commissioner with respect to a particular person, the
10 Commissioner shall, to the extent that he or she disagrees
11 with or takes action contrary to the recommendation of the
12 Board, file with the Board his specific written reasons of
13 disagreement. The reasons shall be filed within 30 days after
14 the Commissioner has taken the contrary position. Each order
15 of revocation, suspension, or other disciplinary action shall
16 contain a brief and concise statement of the ground or
17 grounds upon which the Commissioner's action is based, as
18 well as the specific terms and conditions of that action.
19 Whenever the Commissioner is satisfied that substantial
20 justice has not been done either in an examination or in the
21 revocation, suspension, or refusal to issue a license or
22 other disciplinary action, the Commissioner may order a
23 re-examination or rehearing.
24 (205 ILCS 635/4-8.6 new)
25 Sec. 4-8.6. Hearing officer. The Commissioner has the
26 authority to appoint any attorney duly licensed to practice
27 law in the State of Illinois to serve as the hearing officer
28 for any disciplinary action under this Act. The hearing
29 officer shall have full authority to conduct the hearing. The
30 hearing officer shall report his or her findings and
31 recommendations to the the Commissioner and the Board. The
32 Board shall have 60 days from receipt of the report to review
33 the report of the hearing officer and present its findings of
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1 fact, conclusions of law, and recommendations to the
2 Commissioner. If the Board fails to present its report within
3 the 60 day period, the Commissioner may issue an order based
4 on the report of the hearing officer. If the Commissioner
5 disagrees in any regard with the Board's report, he or she
6 may issue an order in contravention of the Board's report.
7 (205 ILCS 635/4-8.7 new)
8 Sec. 4-8.7. Restoration. At any time after suspension,
9 revocation, placement on probationary status, or the taking
10 of any other disciplinary action with regard to any license,
11 the Commissioner may restore the license, or take any other
12 action to reinstate the license without examination, for good
13 cause shown in the opinion of the Commissioner.
14 (205 ILCS 635/4-8.8 new)
15 Sec. 4-8.8. Administrative Review Law. All final
16 administrative decisions of the Commissioner are subject to
17 judicial review under the Administrative Review Law and its
18 rules. The term "administrative decision" is defined as in
19 Section 3-101 of the Code of Civil Procedure. Proceedings for
20 judicial review shall be commenced in the circuit court of
21 the county in which the party applying for review resides,
22 but if the party is not a resident of this State, the venue
23 shall be in Sangamon County or Cook County. The Commissioner
24 shall not be required to certify any record to the court or
25 file any answer in court or otherwise appear in any court in
26 a judicial review proceeding, unless there is filed in the
27 court with the complaint a receipt from the Commissioner
28 acknowledging payment of the costs of furnishing and
29 certifying the record. Exhibits shall be certified without
30 cost. Failure on the part of the plaintiff to file a receipt
31 in court shall be grounds for dismissal of the action. During
32 the pendency and hearing of any and all judicial proceedings
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1 incident to a disciplinary action, any sanctions imposed upon
2 the licensee by the Commissioner shall remain in full force
3 and effect.
4 (205 ILCS 635/4-8.9 new)
5 Sec. 4-8.9. Revocation orders. An order of revocation,
6 suspension, placement on probationary status, or other formal
7 disciplinary action as the Commissioner may deem proper, or a
8 certified copy thereof, over the seal of the Commissioner and
9 purporting to be signed by the Commissioner, is prima facie
10 proof that:
11 (1) the signature is the genuine signature of the
12 Commissioner;
13 (2) the Commissioner is duly appointed and
14 qualified; and
15 (3) the Board and the members thereof are
16 qualified.
17 (205 ILCS 635/4-8.10 new)
18 Sec. 4-8.10. Confidential information; disclosure. In
19 hearings conducted under this Act, information presented into
20 evidence that was acquired by the licensee when serving any
21 individual in connection with a residential mortgage,
22 including all financial information of the individual, shall
23 be deemed strictly confidential and shall only be made
24 available either as part of the record of a hearing hereunder
25 or otherwise: (1) when the record is required, in its
26 entirety, for purposes of judicial review; or (2) upon the
27 express written consent of the individual served, or in the
28 case of his or her death or disability, the consent of his or
29 her personal representative.
30 (205 ILCS 635/4-8.11 new)
31 Sec. 4-8.11. Reports of violation. Any person licensed
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1 under this Act, or any other person, may report to the
2 Commissioner any information that person may have that
3 appears to show that a licensee under this Act is or may be
4 in violation of this Act.
5 Section 99. Effective date. This Act takes effect upon
6 becoming law.".