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91_SB0445eng SB445 Engrossed LRB9102296JSpc 1 AN ACT to amend the Residential Mortgage License Act of 2 1987 by changing Sections 2-2, 2-9, and 4-2. 3 Be it enacted by the People of the State of Illinois, 4 represented in the General Assembly: 5 Section 5. The Residential Mortgage License Act of 1987 6 is amended by changing Sections 2-2, 2-9, and 4-2 as follows: 7 (205 ILCS 635/2-2) (from Ch. 17, par. 2322-2) 8 Sec. 2-2. Application process; investigation; fee. 9 (a) The Commissioner shall issue a license upon 10 completion of all of the following: 11 (1) The filing of an application for license. 12 (2) The filing with the Commissioner of a listing 13 of judgments entered against, and bankruptcy petitions 14 by, the license applicant for the preceding 10 years. 15 (3) The payment, in certified funds, of 16 investigation and application fees, the total of which 17 shall be in an amount equal to $1,800 annually, however, 18 the Commissioner may increase the investigation and 19 application fees by rule as provided in Section 4-11. 20 (4) Except for a broker applying to renew a 21 license, the filing of an audited balance sheet including 22 all footnotes prepared by a certified public accountant 23 in accordance with generally accepted accounting 24 principles and generally accepted auditing principles 25 which evidences that the applicant meets the net worth 26 requirements of Section 3-5. 27 (5) The filing of proof satisfactory to the 28 Commissioner that the applicant, the members thereof if 29 the applicant is a partnership or association, the 30 members or managers thereof that retain any authority or 31 responsibility under the operating agreement if the SB445 Engrossed -2- LRB9102296JSpc 1 applicant is a limited liability company, or the officers 2 thereof if the applicant is a corporation have 3 years 3 experience preceding application in real estate finance. 4 Instead of this requirement, the applicant and the 5 applicant's officers or members, as applicable, may 6 satisfactorily complete a program of education in real 7 estate finance and fair lending, as approved by the 8 Commissioner, prior towithin 9 months ofreceiving the 9 initial license. The Commissioner shall promulgate rules 10 regarding proof of experience requirements and 11 educational requirements and the satisfactory completion 12 of those requirements. The Commissioner may establish by 13 rule a list of duly licensed professionals and others who 14 may be exempt from this requirement. 15 (6) An investigation of the averments required by 16 Section 2-4, which investigation must allow the 17 Commissioner to issue positive findings stating that the 18 financial responsibility, experience, character, and 19 general fitness of the license applicant and of the 20 members thereof if the license applicant is a partnership 21 or association, of the officers and directors thereof if 22 the license applicant is a corporation, and of the 23 managers and members that retain any authority or 24 responsibility under the operating agreement if the 25 license applicant is a limited liability company are such 26 as to command the confidence of the community and to 27 warrant belief that the business will be operated 28 honestly, fairly and efficiently within the purpose of 29 this Act. If the Commissioner shall not so find, he or 30 she shall not issue such license, and he or she shall 31 notify the license applicant of the denial. 32 (b) All licenses shall be issued in duplicate with one 33 copy being transmitted to the license applicant and the 34 second being retained with the Commissioner. SB445 Engrossed -3- LRB9102296JSpc 1 Upon receipt of such license, a residential mortgage 2 licensee shall be authorized to engage in the business 3 regulated by this Act. Such license shall remain in full 4 force and effect until it expires without renewal, is 5 surrendered by the licensee or revoked or suspended as 6 hereinafter provided. 7 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96.) 8 (205 ILCS 635/2-9) (from Ch. 17, par. 2322-9) 9 Sec. 2-9. Posting of license. The license of a licensee 10 whose home office is within the State of Illinois or of an 11 out-of-state licensee shall be conspicuously posted in every 12 office of the licensee located in Illinois. Out-of-state 13 licensees without an Illinois office shall produce the 14 license upon request. Licensees originating loans on the 15 Internet shall post on their Internet web site their license 16 number and the address and telephone number of the 17 Commissioner. The license shall state the full name and 18 address of the licensee. The license shall not be 19 transferable or assignable. A separate certificate shall be 20 issued for posting in each full service Illinois office. 21 (Source: P.A. 86-137; 87-642.) 22 (205 ILCS 635/4-2) (from Ch. 17, par. 2324-2) 23 Sec. 4-2. Examination; prohibited activities. 24 (a) The business affairs of a licensee under this Act 25 shall be examined for compliance with this Act as often as 26 the Commissioner deems necessary and proper. The 27 Commissioner shall promulgate rules with respect to the 28 frequency and manner of examination. The Commissioner shall 29 appoint a suitable person to perform such examination. The 30 Commissioner and his appointees may examine the entire books, 31 records, documents, and operations of each licensee and may 32 examine any of the licensee's officers, directors, employees SB445 Engrossed -4- LRB9102296JSpc 1 and agents under oath. 2 (b) The Commissioner shall prepare a sufficientlyfull3anddetailed report of each licensee's examination, shall 4 issue a copy of such report to each licensee's principals, 5 officers, or directors and shall take appropriate steps to 6 ensure correction of violations of this Act. 7 (c) Affiliates of a licensee shall be subject to 8 examination by the Commissioner on the same terms as the 9 licensee, but only when reports from, or examination of a 10 licensee provides for documented evidence of unlawful 11 activity between a licensee and affiliate benefiting, 12 affecting or deriving from the activities regulated by this 13 Act. 14 (d) The expenses of any examination of the licensee and 15 affiliates shall be borne by the licensee and assessed by the 16 Commissioner as established by regulation. 17 (e) Upon completion of the examination, the Commissioner 18 shall issue a report to the licensee. The examination 19 report, and the work papers of the report shall belong to the 20 Commissioner's office and may not be disclosed to anyone 21 other than the licensee, law enforcement officials or other 22 regulatory agencies that shall be defined in rules 23 promulgated by the Commissioner, or to a party presenting a 24 lawful subpoena to the Office of the Commissioner. Reports 25 required of licensees by the Commissioner under this Act and 26 results of examinations performed by the Commissioner under 27 this Act shall be the property of only the licensee and the 28 Commissioner. Access under this Act to the books and records 29 of each licensee shall be limited to the Commissioner and his 30 agents as provided in this Act and to the licensee and its 31 authorized agents and designees. No other person shall have 32 access to the books and records of a licensee under this Act. 33 (f) The Commissioner, deputy commissioners, and 34 employees of the Office of Banks and Real Estate shall be SB445 Engrossed -5- LRB9102296JSpc 1 subject to the restrictions provided in Section 2.5 of the 2 Office of Banks and Real Estate Act including, without 3 limitation, the restrictions on (i) owning shares of stock or 4 holding any other equity interest in an entity regulated 5 under this Act or in any corporation or company that owns or 6 controls an entity regulated under this Act; (ii) being an 7 officer, director, employee, or agent of an entity regulated 8 under this Act; and (iii) obtaining a loan or accepting a 9 gratuity from an entity regulated under this Act. 10 (g) After the initial examination for those licensees 11 whose only mortgage activity is servicing fewer than 1,000 12 Illinois residential loans, the examination required in 13 subsection (a) may be waived upon submission of a letter from 14 the licensee's independent certified auditor that the 15 licensee serviced fewer than 1,000 Illinois residential loans 16 during the year in which the audit was performed. 17 (Source: P.A. 89-355, eff. 8-17-95; 89-508, eff. 7-3-96; 18 90-301, eff. 8-1-97.)