Bill Text: IL SB0748 | 2017-2018 | 100th General Assembly | Chaptered

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Bill Title: Amends the Illinois Banking Act. Changes the number of additional members of the State Banking Board of Illinois from 11 to 12. Provides that one member of the Board shall be from a savings bank, and there shall also be an alternate member from a savings bank to attend meetings if and only if the sitting member from a savings bank is unable to attend the meeting. Changes the requirements for the 2 public members. Amends the Savings Bank Act. Repeals provisions relating to the Board of Savings Banks. Amends the Residential Mortgage License Act of 1987. Removes provisions relating to the Residential Mortgage Board. Effective immediately.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2018-08-10 - Public Act . . . . . . . . . 100-0783 [SB0748 Detail]

Download: Illinois-2017-SB0748-Chaptered.html

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Public Act 100-0783
SB0748 Enrolled LRB100 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.