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1		AN ACT concerning regulation.
2		Be it enacted by the People of the State of Illinois,
3		represented in the General Assembly:
4		Section 5. The Real Estate Appraiser Licensing Act of 2002
5		is amended by changing Sections 1-10, 5-10, 5-15, 5-20, 5-22,
6		5-25, 5-55, 20-5, and 20-10 and by adding Section 5-7 as
7		follows:
8		(225 ILCS 458/1-10)
9		(Section scheduled to be repealed on January 1, 2022)
10		Sec. 1-10. Definitions. As used in this Act, unless the
11		context otherwise requires:
12		"Accredited college or university, junior college, or
13		community college" means a college or university, junior
14		college, or community college that is approved or accredited by
15		the Board of Higher Education, a regional or national
16		accreditation association, or by an accrediting agency that is
17		recognized by the U.S. Secretary of Education.
18		"Address of record" means the designated address recorded
19		by the Department in the applicant's or licensee's application
20		file or license file as maintained by the Department's
21		licensure maintenance unit. It is the duty of the applicant or
22		licensee to inform the Department of any change of address and
23		those changes must be made either through the Department's

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1		website or by contacting the Department.
2		"Applicant" means person who applies to the Department for
3		a license under this Act.
4		"Appraisal" means (noun) the act or process of developing
5		an opinion of value; an opinion of value (adjective) of or
6		pertaining to appraising and related functions, such as
7		appraisal practice or appraisal services.
8		"Appraisal assignment" means a valuation service provided
9		as a consequence of an agreement between an appraiser and a
10		client.
11		"Appraisal consulting" means the act or process of
12		developing an analysis, recommendation, or opinion to solve a
13		problem, where an opinion of value is a component of the
14		analysis leading to the assignment results.
15		"Appraisal firm" means an appraisal entity that is 100%
16		owned and controlled by a person or persons licensed in
17		Illinois as a certified general real estate appraiser or a
18		certified residential real estate appraiser. "Appraisal firm"
19		does not include an appraisal management company.
20		"Appraisal management company" means any corporation,
21		limited liability company, partnership, sole proprietorship,
22		subsidiary, unit, or other business entity that directly or
23		indirectly performs the following appraisal management
24		services: (1) provides appraisal management services to
25		creditors or secondary mortgage market participants; (2)
26		provides appraisal management services in connection with

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1		valuing the consumer's principal dwelling as security for a
2		consumer credit transaction (including consumer credit
3		transactions incorporated into securitizations); (3) within a
4		given year, oversees an appraiser panel of any size of
5		State-certified appraisers in Illinois; and (4) any appraisal
6		management company that, within a given year, oversees an
7		appraiser panel of 16 or more State-certified appraisers in
8		Illinois or 25 or more State-certified or State-licensed
9		appraisers in 2 or more jurisdictions shall be subject to the
10		appraisal management company national registry fee in addition
11		to the appraiser panel fee. "Appraisal management company"
12		includes a hybrid entity administers networks of independent
13		contractors or employee appraisers to perform real estate
14		appraisal assignments for clients; (2) receives requests for
15		real estate appraisal services from clients and, for a fee paid
16		by the client, enters into an agreement with one or more
17		independent appraisers to perform the real estate appraisal
18		services contained in the request; or (3) otherwise serves as a
19		third-party broker of appraisal management services between
20		clients and appraisers. "Appraisal management company" does
21		not include an appraisal firm.
22		"Appraisal practice" means valuation services performed by
23		an individual acting as an appraiser, including, but not
24		limited to, appraisal, appraisal review, or appraisal
25		consulting.
26		"Appraisal report" means any communication, written or

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1		oral, of an appraisal or appraisal review that is transmitted
2		to a client upon completion of an assignment.
3		"Appraisal review" means the act or process of developing
4		and communicating an opinion about the quality of another
5		appraiser's work that was performed as part of an appraisal,
6		appraisal review, or appraisal assignment.
7		"Appraisal Subcommittee" means the Appraisal Subcommittee
8		of the Federal Financial Institutions Examination Council as
9		established by Title XI.
10		"Appraiser" means a person who performs real estate or real
11		property appraisals.
12		"AQB" means the Appraisal Qualifications Board of the
13		Appraisal Foundation.
14		"Associate real estate trainee appraiser" means an
15		entry-level appraiser who holds a license of this
16		classification under this Act with restrictions as to the scope
17		of practice in accordance with this Act.
18		"Board" means the Real Estate Appraisal Administration and
19		Disciplinary Board.
20		"Broker price opinion" means an estimate or analysis of the
21		probable selling price of a particular interest in real estate,
22		which may provide a varying level of detail about the
23		property's condition, market, and neighborhood and information
24		on comparable sales. The activities of a real estate broker or
25		managing broker engaging in the ordinary course of business as
26		a broker, as defined in this Section, shall not be considered a

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1		broker price opinion if no compensation is paid to the broker
2		or managing broker, other than compensation based upon the sale
3		or rental of real estate.
4		"Classroom hour" means 50 minutes of instruction out of
5		each 60 minute segment of coursework.
6		"Client" means the party or parties who engage an appraiser
7		by employment or contract in a specific appraisal assignment.
8		"Comparative market analysis" is an analysis or opinion
9		regarding pricing, marketing, or financial aspects relating to
10		a specified interest or interests in real estate that may be
11		based upon an analysis of comparative market data, the
12		expertise of the real estate broker or managing broker, and
13		such other factors as the broker or managing broker may deem
14		appropriate in developing or preparing such analysis or
15		opinion. The activities of a real estate broker or managing
16		broker engaging in the ordinary course of business as a broker,
17		as defined in this Section, shall not be considered a
18		comparative market analysis if no compensation is paid to the
19		broker or managing broker, other than compensation based upon
20		the sale or rental of real estate.
21		"Coordinator" means the Coordinator of Real Estate
22		Appraisal of the Division of Professional Regulation of the
23		Department of Financial and Professional Regulation.
24		"Department" means the Department of Financial and
25		Professional Regulation.
26		"Federal financial institutions regulatory agencies" means

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1		the Board of Governors of the Federal Reserve System, the
2		Federal Deposit Insurance Corporation, the Office of the
3		Comptroller of the Currency, the Consumer Financial Protection
4		Bureau, and the National Credit Union Administration.
5		"Federally related transaction" means any real
6		estate-related financial transaction in which a federal
7		financial institutions regulatory agency engages in, contracts
8		for, or regulates and requires the services of an appraiser.
9		"Financial institution" means any bank, savings bank,
10		savings and loan association, credit union, mortgage broker,
11		mortgage banker, licensee under the Consumer Installment Loan
12		Act or the Sales Finance Agency Act, or a corporate fiduciary,
13		subsidiary, affiliate, parent company, or holding company of
14		any such licensee, or any institution involved in real estate
15		financing that is regulated by state or federal law.
16		"Multi-state licensing system" means a web-based platform
17		that allows an applicant to submit his or her application or
18		license renewal application to the Department online.
19		"Person" means an individual, entity, sole proprietorship,
20		corporation, limited liability company, partnership, and joint
21		venture, foreign or domestic, except that when the context
22		otherwise requires, the term may refer to more than one
23		individual or other described entity.
24		"Real estate" means an identified parcel or tract of land,
25		including any improvements.
26		"Real estate related financial transaction" means any

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1		transaction involving:
2		(1) the sale, lease, purchase, investment in, or
3		exchange of real property, including interests in property
4		or the financing thereof;
5		(2) the refinancing of real property or interests in
6		real property; and
7		(3) the use of real property or interest in property as
8		security for a loan or investment, including mortgage
9		backed securities.
10		"Real property" means the interests, benefits, and rights
11		inherent in the ownership of real estate.
12		"Secretary" means the Secretary of Financial and
13		Professional Regulation.
14		"State certified general real estate appraiser" means an
15		appraiser who holds a license of this classification under this
16		Act and such classification applies to the appraisal of all
17		types of real property without restrictions as to the scope of
18		practice.
19		"State certified residential real estate appraiser" means
20		an appraiser who holds a license of this classification under
21		this Act and such classification applies to the appraisal of
22		one to 4 units of residential real property without regard to
23		transaction value or complexity, but with restrictions as to
24		the scope of practice in a federally related transaction in
25		accordance with Title XI, the provisions of USPAP, criteria
26		established by the AQB, and further defined by rule.

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1		"Supervising appraiser" means either (i) an appraiser who
2		holds a valid license under this Act as either a State
3		certified general real estate appraiser or a State certified
4		residential real estate appraiser, who co-signs an appraisal
5		report for an associate real estate trainee appraiser or (ii) a
6		State certified general real estate appraiser who holds a valid
7		license under this Act who co-signs an appraisal report for a
8		State certified residential real estate appraiser on
9		properties other than one to 4 units of residential real
10		property without regard to transaction value or complexity.
11		"Title XI" means Title XI of the federal Financial
12		Institutions Reform, Recovery and Enforcement Act of 1989.
13		"USPAP" means the Uniform Standards of Professional
14		Appraisal Practice as promulgated by the Appraisal Standards
15		Board pursuant to Title XI and by rule.
16		"Valuation services" means services pertaining to aspects
17		of property value.
18		(Source: P.A. 97-602, eff. 8-26-11; 98-1109, eff. 1-1-15.)
19		(225 ILCS 458/5-7 new)
20		Sec. 5-7. Multi-state licensing system. The Secretary may
21		require participation in a third-party, multi-state licensing
22		system for licensing under this Act. The multi-state licensing
23		system may share regulatory information and maintain records in
24		compliance with the provisions of this Act. The multi-state
25		licensing system may charge an applicant an administration fee.

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1		(225 ILCS 458/5-10)
2		(Section scheduled to be repealed on January 1, 2022)
3		Sec. 5-10. Application for State certified general real
4		estate appraiser.
5		(a) Every person who desires to obtain a State certified
6		general real estate appraiser license shall:
7		(1) apply to the Department on forms provided by the
8		Department, or through a multi-state licensing system as
9		designated by the Secretary, accompanied by the required
10		fee;
11		(2) be at least 18 years of age;
12		(3) (blank);
13		(4) personally take and pass an examination authorized
14		by the Department and endorsed by the AQB;
15		(5) prior to taking the examination, provide evidence
16		to the Department, or through a multi-state licensing
17		system as designated by the Secretary, in Modular Course
18		format, with each module conforming to the Required Core
19		Curriculum established and adopted by the AQB, that he or
20		she has successfully completed the prerequisite classroom
21		hours of instruction in appraising as established by the
22		AQB and by rule; and
23		(6) prior to taking the examination, provide evidence
24		to the Department, or through a multi-state licensing
25		system as designated by the Secretary, that he or she has

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1		successfully completed the prerequisite experience and
2		educational requirements in appraising as established by
3		AQB and by rule.
4		(b) Applicants must provide evidence to the Department, or
5		through a multi-state licensing system as designated by the
6		Secretary, of holding a Bachelor's degree or higher from an
7		accredited college or university.
8		(Source: P.A. 98-1109, eff. 1-1-15.)
9		(225 ILCS 458/5-15)
10		(Section scheduled to be repealed on January 1, 2022)
11		Sec. 5-15. Application for State certified residential
12		real estate appraiser. Every person who desires to obtain a
13		State certified residential real estate appraiser license
14		shall:
15		(1) apply to the Department on forms provided by the
16		Department, or through a multi-state licensing system as
17		designated by the Secretary, accompanied by the required
18		fee;
19		(2) be at least 18 years of age;
20		(3) (blank);
21		(4) personally take and pass an examination authorized
22		by the Department and endorsed by the AQB;
23		(5) prior to taking the examination, provide evidence
24		to the Department, or through a multi-state licensing
25		system as designated by the Secretary, in Modular Course

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1		format, with each module conforming to the Required Core
2		Curriculum established and adopted by the AQB, that he or
3		she has successfully completed the prerequisite classroom
4		hours of instruction in appraising as established by the
5		AQB and by rule; and
6		(6) prior to taking the examination, provide evidence
7		to the Department, or through a multi-state licensing
8		system as designated by the Secretary, that he or she has
9		successfully completed the prerequisite experience and
10		educational requirements as established by AQB and by rule.
11		(Source: P.A. 100-201, eff. 8-18-17.)
12		(225 ILCS 458/5-20)
13		(Section scheduled to be repealed on January 1, 2022)
14		Sec. 5-20. Application for associate real estate trainee
15		appraiser. Every person who desires to obtain an associate real
16		estate trainee appraiser license shall:
17		(1) apply to the Department on forms provided by the
18		Department, or through a multi-state licensing system as
19		designated by the Secretary, accompanied by the required
20		fee;
21		(2) be at least 18 years of age;
22		(3) provide evidence of having attained a high school
23		diploma or completed an equivalent course of study as
24		determined by an examination conducted or accepted by the
25		Illinois State Board of Education;

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1		(4) personally take and pass an examination authorized
2		by the Department; and
3		(5) prior to taking the examination, provide evidence
4		to the Department, or through a multi-state licensing
5		system as designated by the Secretary, that he or she has
6		successfully completed the prerequisite qualifying and any
7		conditional education requirements as established by rule.
8		(Source: P.A. 98-1109, eff. 1-1-15.)
9		(225 ILCS 458/5-22)
10		(Section scheduled to be repealed on January 1, 2022)
11		Sec. 5-22. Criminal history records check.
12		(a) Each applicant for licensure by examination or
13		restoration shall have his or her fingerprints submitted to the
14		Department of State Police in an electronic format that
15		complies with the form and manner for requesting and furnishing
16		criminal history record information as prescribed by the
17		Department of State Police. These fingerprints shall be checked
18		against the Department of State Police and Federal Bureau of
19		Investigation criminal history record databases now and
20		hereafter filed. The Department of State Police shall charge
21		applicants a fee for conducting the criminal history records
22		check, which shall be deposited into the State Police Services
23		Fund and shall not exceed the actual cost of the records check.
24		The Department of State Police shall furnish, pursuant to
25		positive identification, records of Illinois convictions to

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1		the Department. The Department may require applicants to pay a
2		separate fingerprinting fee, either to the Department or to a
3		vendor. The Department may adopt any rules necessary to
4		implement this Section.
5		(b) The Secretary may designate a multi-state licensing
6		system to perform the functions described in subsection (a).
7		The Department may require applicants to pay a separate
8		fingerprinting fee, either to the Department or to the
9		multi-state licensing system. The Department may adopt any
10		rules necessary to implement this subsection.
11		(Source: P.A. 98-1109, eff. 1-1-15.)
12		(225 ILCS 458/5-25)
13		(Section scheduled to be repealed on January 1, 2022)
14		Sec. 5-25. Renewal of license.
15		(a) The expiration date and renewal period for a State
16		certified general real estate appraiser license or a State
17		certified residential real estate appraiser license issued
18		under this Act shall be set by rule. Except as otherwise
19		provided in subsections (b) and (f) of this Section, the holder
20		of a license may renew the license within 90 days preceding the
21		expiration date by:
22		(1) completing and submitting to the Department, or
23		through a multi-state licensing system as designated by the
24		Secretary, a renewal application form as provided by the
25		Department;

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1		(2) paying the required fees; and
2		(3) providing evidence to the Department, or through a
3		multi-state licensing system as designated by the
4		Secretary, of successful completion of the continuing
5		education requirements through courses approved by the
6		Department from education providers licensed by the
7		Department, as established by the AQB and by rule.
8		(b) A State certified general real estate appraiser or
9		State certified residential real estate appraiser whose
10		license under this Act has expired may renew the license for a
11		period of 2 years following the expiration date by complying
12		with the requirements of paragraphs (1), (2), and (3) of
13		subsection (a) of this Section and paying any late penalties
14		established by rule.
15		(c) (Blank).
16		(d) The expiration date and renewal period for an associate
17		real estate trainee appraiser license issued under this Act
18		shall be set by rule. Except as otherwise provided in
19		subsections (e) and (f) of this Section, the holder of an
20		associate real estate appraiser license may renew the license
21		within 90 days preceding the expiration date by:
22		(1) completing and submitting to the Department, or
23		through a multi-state licensing system as designated by the
24		Secretary, a renewal application form as provided by the
25		Department;
26		(2) paying the required fees; and

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1		(3) providing evidence to the Department, or through a
2		multi-state licensing system as designated by the
3		Secretary, of successful completion of the continuing
4		education requirements through courses approved by the
5		Department from education providers approved by the
6		Department, as established by rule.
7		(e) Any associate real estate appraiser trainee whose
8		license under this Act has expired may renew the license for a
9		period of 2 years following the expiration date by complying
10		with the requirements of paragraphs (1), (2), and (3) of
11		subsection (d) of this Section and paying any late penalties as
12		established by rule. An associate real estate trainee appraiser
13		license may not be renewed more than 2 times.
14		(f) Notwithstanding subsections (c) and (e), an appraiser
15		whose license under this Act has expired may renew or convert
16		the license without paying any lapsed renewal fees or late
17		penalties if the license expired while the appraiser was:
18		(1) on active duty with the United States Armed
19		Services;
20		(2) serving as the Coordinator of Real Estate Appraisal
21		or an employee of the Department who was required to
22		surrender his or her license during the term of employment.
23		Application for renewal must be made within 2 years
24		following the termination of the military service or related
25		education, training, or employment. The licensee shall furnish
26		the Department with an affidavit that he or she was so engaged.

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1		(g) The Department shall provide reasonable care and due
2		diligence to ensure that each licensee under this Act is
3		provided with a renewal application at least 90 days prior to
4		the expiration date, but each licensee is responsible to timely
5		renew or convert his or her license prior to its expiration
6		date.
7		(Source: P.A. 96-844, eff. 12-23-09.)
8		(225 ILCS 458/5-55)
9		(Section scheduled to be repealed on January 1, 2022)
10		Sec. 5-55. Fees.
11		(a) The Department shall establish rules for fees to be
12		paid by applicants and licensees to cover the reasonable costs
13		of the Department in administering and enforcing the provisions
14		of this Act. The Department, with the advice of the Board, may
15		also establish rules for general fees to cover the reasonable
16		expenses of carrying out other functions and responsibilities
17		under this Act.
18		(b) The administration fee charged by the multi-state
19		licensing system shall be paid directly to the multi-state
20		licensing system.
21		(Source: P.A. 96-844, eff. 12-23-09; 97-602, eff. 8-26-11.)
22		(225 ILCS 458/20-5)
23		(Section scheduled to be repealed on January 1, 2022)
24		Sec. 20-5. Education providers.

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1		(a) Beginning July 1, 2002, only education providers
2		licensed or otherwise approved by the Department may provide
3		the qualifying and continuing education courses required for
4		licensure under this Act.
5		(b) A person or entity seeking to be licensed as an
6		education provider under this Act shall provide satisfactory
7		evidence of the following:
8		(1) a sound financial base for establishing,
9		promoting, and delivering the necessary courses;
10		(2) a sufficient number of qualified instructors;
11		(3) adequate support personnel to assist with
12		administrative matters and technical assistance;
13		(4) a written policy dealing with procedures for
14		management of grievances and fee refunds;
15		(5) a qualified administrator, who is responsible for
16		the administration of the education provider, courses, and
17		the actions of the instructors; and
18		(6) any other requirements as provided by rule.
19		(c) All applicants for an education provider's license
20		shall make initial application to the Department on forms
21		provided by the Department, or through a multi-state licensing
22		system as designated by the Secretary, and pay the appropriate
23		fee as provided by rule. The term, expiration date, and renewal
24		of an education provider's license shall be established by
25		rule.
26		(d) An education provider shall provide each successful

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1		course participant with a certificate of completion signed by
2		the school administrator. The format and content of the
3		certificate shall be specified by rule.
4		(e) All education providers shall provide to the Department
5		a monthly roster of all successful course participants as
6		provided by rule.
7		(Source: P.A. 98-1109, eff. 1-1-15.)
8		(225 ILCS 458/20-10)
9		(Section scheduled to be repealed on January 1, 2022)
10		Sec. 20-10. Course approval.
11		(a) Only courses offered by licensed education providers
12		and approved by the Department, courses approved by the AQB, or
13		courses approved by jurisdictions regulated by the Appraisal
14		Subcommittee shall be used to meet the requirements of this Act
15		and rules.
16		(b) An education provider licensed under this Act may
17		submit courses to the Department, or through a multi-state
18		licensing system as designated by the Secretary, for approval.
19		The criteria, requirements, and fees for courses shall be
20		established by rule in accordance with this Act and the
21		criteria established by the AQB.
22		(c) For each course approved, the Department shall issue a
23		license to the education provider. The term, expiration date,
24		and renewal of a course approval shall be established by rule.
25		(d) An education provider must use an instructor for each

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1		course approved by the Department who (i) holds a valid real
2		estate appraisal license in good standing as a State certified
3		general real estate appraiser or a State certified residential
4		real estate appraiser in Illinois or any other jurisdiction
5		monitored by the Appraisal Subcommittee, (ii) holds a valid
6		teaching certificate issued by the State of Illinois, (iii) is
7		a faculty member in good standing with an accredited college or
8		university or community college, or (iv) is an approved
9		appraisal instructor from an appraisal organization that is a
10		member of the Appraisal Foundation.
11		(Source: P.A. 98-1109, eff. 1-1-15.)
12		Section 10. The Appraisal Management Company Registration
13		Act is amended by changing Sections 5, 10, 15, 20, 25, 35, 40,
14		55, 65, and 160 and by adding Sections 17, 32, 37, 43, 47, 67,
15		68, 163, and 177 as follows:
16		(225 ILCS 459/5)
17		Sec. 5. Findings. The General Assembly finds that: It is
18		the intent of the General Assembly that this Act provide for
19		the regulation of those persons or entities engaged as
20		appraisal management companies for the protection of the public
21		and for the maintenance of high standards of professional
22		conduct by those registered as appraisal management companies
23		in one to four family real estate transactions and to ensure
24		appraisal independence in the determination of real estate

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1		valuations.
2		(Source: P.A. 97-602, eff. 8-26-11.)
3		(225 ILCS 459/10)
4		Sec. 10. Definitions. In this Act:
5		"Address of record" means the principal designated address
6		recorded by the Department in the applicant's or registrant's
7		application file or registration file maintained by the
8		Department's registration maintenance unit. It is the duty of
9		the applicant or registrant to inform the Department of any
10		change of address, and the changes must be made either through
11		the Department's website or by contacting the Department's
12		registration maintenance unit within a prescribed time period
13		as defined by rule.
14		"Applicant" means a person or entity who applies to the
15		Department for a registration under this Act.
16		"Appraisal" means (noun) the act or process of developing
17		an opinion of value; an opinion of value (adjective) of or
18		pertaining to appraising and related functions.
19		"Appraisal firm" means an appraisal entity that is 100%
20		owned and controlled by a person or persons licensed in
21		Illinois as a certified general real estate appraiser or a
22		certified residential real estate appraiser. An appraisal firm
23		does not include an appraisal management company.
24		"Appraisal management company" means any corporation,
25		limited liability company, partnership, sole proprietorship,

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1		subsidiary, unit, or other business entity that directly or
2		indirectly performs the following appraisal management
3		services: (1) provides appraisal management services to
4		creditors or secondary mortgage market participants; (2)
5		provides appraisal management services in connection with
6		valuing the consumer's principal dwelling as security for a
7		consumer credit transaction (including consumer credit
8		transactions incorporated into securitizations); (3) within a
9		given year, oversees an appraiser panel of any size of
10		State-certified appraisers in Illinois; and (4) any appraisal
11		management company that, within a given year, oversees an
12		appraiser panel of 16 or more State-certified appraisers in
13		Illinois or 25 or more State-certified or State-licensed
14		appraisers in 2 or more jurisdictions shall be subject to the
15		appraisal management company national registry fee in addition
16		to the appraiser panel fee. "Appraisal management company"
17		includes a hybrid entity. administers networks of independent
18		contractors or employee appraisers to perform real estate
19		appraisal assignments for clients; (2) receives requests for
20		real estate appraisal services from clients and, for a fee paid
21		by the client, enters into an agreement with one or more
22		independent appraisers to perform the real estate appraisal
23		services contained in the request; or (3) otherwise serves as a
24		third-party broker of appraisal management services between
25		clients and appraisers.
26		"Appraisal management company national registry fee" means

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1		the fee implemented pursuant to Title XI of the federal
2		Financial Institutions Reform, Recovery and Enforcement Act of
3		1989 for an appraiser management company's national registry.
4		"Appraisal management services" means one or more of the
5		following:
6		(1) recruiting, selecting, and retaining appraisers;
7		(2) contracting with State-certified or State-licensed
8		appraisers to perform appraisal assignments;
9		(3) managing the process of having an appraisal
10		performed, including providing administrative services
11		such as receiving appraisal orders and appraisal reports;
12		submitting completed appraisal reports to creditors and
13		secondary market participants; collecting compensation
14		from creditors, underwriters, or secondary market
15		participants for services provided; or paying appraisers
16		for services performed; or
17		(4) reviewing and verifying the work of appraisers.
18		"Appraiser panel" means a network, list, or roster of
19		licensed or certified appraisers approved by the appraisal
20		management company or by the end-user client to perform
21		appraisals for the appraisal management company. "Appraiser
22		panel" includes both appraisers accepted by an appraisal
23		management company for consideration for future appraisal
24		assignments and appraisers engaged by an appraisal management
25		company to perform one or more appraisals.
26		"Appraiser panel fee" means the amount collected from a

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1		registrant that, where applicable, includes an appraisal
2		management company's national registry fee.
3		"Appraisal report" means a written appraisal by an
4		appraiser to a client.
5		"Appraisal practice service" means valuation services
6		performed by an individual acting as an appraiser, including,
7		but not limited to, appraisal, or appraisal review, or
8		appraisal consulting.
9		"Appraisal subcommittee" means the appraisal subcommittee
10		of the Federal Financial Institutions Examination Council as
11		established by Title XI.
12		"Appraiser" means a person who performs real estate or real
13		property appraisals.
14		"Assignment result" means an appraiser's opinions and
15		conclusions developed specific to an assignment.
16		"Audit" includes, but is not limited to, an annual or
17		special audit, visit, or review necessary under this Act or
18		required by the Secretary or the Secretary's authorized
19		representative in carrying out the duties and responsibilities
20		under this Act.
21		"Board" means the Real Estate Appraisal Administration and
22		Disciplinary Board.
23		"Client" means the party or parties who engage an appraiser
24		by employment or contract in a specific appraisal assignment.
25		"Controlling Person" means:
26		(1) an owner, officer, or director of an entity seeking

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1		to offer appraisal management services;
2		(2) an individual employed, appointed, or authorized
3		by an appraisal management company who has the authority
4		to:
5		(A) enter into a contractual relationship with a
6		client for the performance of an appraisal management
7		service or appraisal practice service; and
8		(B) enter into an agreement with an appraiser for
9		the performance of a real estate appraisal activity; or
10		(3) an individual who possesses, directly or
11		indirectly, the power to direct or cause the direction of
12		the management or policies of an appraisal management
13		company; or .
14		(4) an individual who will act as the sole compliance
15		officer with regard to this Act and any rules adopted under
16		this Act.
17		"Coordinator" means the Coordinator of the Appraisal
18		Management Company Registration Unit of the Department or his
19		or her designee.
20		"Covered transaction" means a consumer credit transaction
21		secured by a consumer's principal dwelling.
22		"Department" means the Department of Financial and
23		Professional Regulation.
24		"Email address of record" means the designated email
25		address recorded by the Department in the applicant's
26		application file or the registrant's registration file

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1		maintained by the Department's registration maintenance unit.
2		"Entity" means a corporation, a limited liability company,
3		partnership, a sole proprietorship, or other entity providing
4		services or holding itself out to provide services as an
5		appraisal management company or an appraisal management
6		service.
7		"End-user client" means any person who utilizes or engages
8		the services of an appraiser through an appraisal management
9		company.
10		"Federally regulated appraisal management company" means
11		an appraisal management company that is owned and controlled by
12		an insured depository institution, as defined in 12 U.S.C.
13		1813, or an insured credit union, as defined in 12 U.S.C. 1752,
14		and regulated by the Office of the Comptroller of the Currency,
15		the Federal Reserve Board, the National Credit Union
16		Association, or the Federal Deposit Insurance Corporation.
17		"Financial institution" means any bank, savings bank,
18		savings and loan association, credit union, mortgage broker,
19		mortgage banker, registrant under the Consumer Installment
20		Loan Act or the Sales Finance Agency Act, or a corporate
21		fiduciary, subsidiary, affiliate, parent company, or holding
22		company of any registrant, or any institution involved in real
23		estate financing that is regulated by State or federal law.
24		"Foreign appraisal management company" means any appraisal
25		management company organized under the laws of any other state
26		of the United States, the District of Columbia, or any other

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1		jurisdiction of the United States.
2		"Hybrid entity" means an appraisal management company that
3		hires an appraiser as an employee to perform an appraisal and
4		engages an independent contractor to perform an appraisal.
5		"Multi-state licensing system" means a web-based platform
6		that allows an applicant to submit his or her application or
7		registration renewal to the Department online.
8		"Person" means individuals, entities, sole
9		proprietorships, corporations, limited liability companies,
10		and alien, foreign, or domestic partnerships, foreign or
11		domestic, except that when the context otherwise requires, the
12		term may refer to a single individual or other described
13		entity.
14		"Principal dwelling" means a residential structure that
15		contains one to 4 units, whether or not that structure is
16		attached to real property. "Principal dwelling" includes an
17		individual condominium unit, cooperative unit, manufactured
18		home, mobile home, and trailer, if it is used as a residence.
19		"Principal office" means the actual, physical business
20		address, which shall not be a post office box or a virtual
21		business address, of a registrant, at which (i) the Department
22		may contact the registrant and (ii) records required under this
23		Act are maintained.
24		"Qualified to transact business in this State" means being
25		in compliance with the requirements of the Business Corporation
26		Act of 1983.

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1		"Quality control review" means a review of an appraisal
2		report for compliance and completeness, including grammatical,
3		typographical, or other similar errors, unrelated to
4		developing an opinion of value.
5		"Real estate" means an identified parcel or tract of land,
6		including any improvements.
7		"Real estate related financial transaction" means any
8		transaction involving:
9		(1) the sale, lease, purchase, investment in, or
10		exchange of real property, including interests in property
11		or the financing thereof;
12		(2) the refinancing of real property or interests in
13		real property; and
14		(3) the use of real property or interest in property as
15		security for a loan or investment, including mortgage
16		backed securities.
17		"Real property" means the interests, benefits, and rights
18		inherent in the ownership of real estate.
19		"Secretary" means the Secretary of Financial and
20		Professional Regulation.
21		"USPAP" means the Uniform Standards of Professional
22		Appraisal Practice as adopted by the Appraisal Standards Board
23		under Title XI.
24		"Valuation" means any estimate of the value of real
25		property in connection with a creditor's decision to provide
26		credit, including those values developed under a policy of a

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1		government sponsored enterprise or by an automated valuation
2		model or other methodology or mechanism.
3		"Written notice" means a communication transmitted by mail
4		or by electronic means that can be verified between an
5		appraisal management company and a licensed or certified real
6		estate appraiser.
7		(Source: P.A. 97-602, eff. 8-26-11.)
8		(225 ILCS 459/15)
9		Sec. 15. Exemptions.
10		(a) Nothing in this Act shall apply to any of the
11		following:
12		(1) an agency of the federal, State, county, or
13		municipal government or an officer or employee of a
14		government agency, or person, described in this Section
15		when acting within the scope of employment of the officer
16		or employee;
17		(2) a corporate relocation company when the appraisal
18		is not used for mortgage purposes and the end user client
19		is an employer company;
20		(3) any person licensed in this State under any other
21		Act while engaged in the activities or practice for which
22		he or she is licensed;
23		(4) any person licensed to practice law in this State
24		who is working with or on behalf of a client of that person
25		in connection with one or more appraisals for that client;

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1		(5) an appraiser that enters into an agreement, whether
2		written or otherwise, with another appraiser for the
3		performance of an appraisal, and upon the completion of the
4		appraisal, the report of the appraiser performing the
5		appraisal is signed by both the appraiser who completed the
6		appraisal and the appraiser who requested the completion of
7		the appraisal, except that an appraisal management company
8		may not avoid the requirement of registration under this
9		Act by requiring an employee of the appraisal management
10		company who is an appraiser to sign an appraisal that was
11		completed by another appraiser who is part of the appraisal
12		panel of the appraisal management company;
13		(6) any person acting as an agent of the Illinois
14		Department of Transportation in the acquisition or
15		relinquishment of land for transportation issues to the
16		extent of their contract scope; or
17		(7) a design professional entity when the appraisal is
18		not used for mortgage purposes and the end user client is
19		an agency of State government or a unit of local
20		government; .
21		(8) an appraiser firm whose ownership is appropriately
22		certified under the Real Estate Appraiser Licensing Act of
23		2002; or
24		(9) an appraisal management company solely engaged in
25		non-residential appraisal management services.
26		(b) A federally regulated appraisal management company

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1		shall register with the Department for the sole purpose of
2		collecting required information for, and to pay all fees
3		associated with, the State of Illinois' obligation to register
4		the federally regulated appraisal management company with the
5		Appraisal Management Companies National Registry, but the
6		federally regulated appraisal management company is otherwise
7		exempt from all other provisions in this Act.
8		(c) In the event that the Final Interim Rule of the federal
9		Dodd-Frank Wall Street Reform and Consumer Protection Act
10		provides that an appraisal management company is a subsidiary
11		owned and controlled by a financial institution regulated by a
12		federal financial institution's regulatory agency and is
13		exempt from State appraisal management company registration
14		requirements, the Department, shall, by rule, provide for the
15		implementation of such an exemption.
16		(Source: P.A. 97-602, eff. 8-26-11.)
17		(225 ILCS 459/17 new)
18		Sec. 17. Address of record; email address of record. All
19		applicants and registrants shall:
20		(1) provide a valid address and email address to the
21		Department, which shall serve as the address of record and
22		email address of record, respectively, at the time of
23		application for registration or renewal of a registration;
24		and
25		(2) inform the Department of any change of address of

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1		record or email address of record within 14 days after such
2		change either through the Department's website or through a
3		multi-state registration system as designated by the
4		Secretary.
5		(225 ILCS 459/20)
6		Sec. 20. Restrictions and limitations. Beginning January
7		1, 2012, it is unlawful for a person or entity to act or assume
8		to act as an appraisal management company as defined in this
9		Act, to engage in the business of appraisal management service,
10		or to advertise or hold himself or herself out to be a
11		registered appraisal management company without first
12		obtaining a registration issued by the Department under this
13		Act. A person or entity that violates this Section is guilty of
14		a Class A misdemeanor for the first offense and a Class 4
15		felony for second and subsequent offenses.
16		Persons practicing as an appraisal management company in
17		Illinois as of the effective date of this Act may continue to
18		practice as provided in this Act until the Department has
19		adopted rules implementing this Act. To continue practicing as
20		an appraisal management company after the adoption of rules,
21		persons shall apply for registration within 180 days after the
22		effective date of the rules. If an application is received
23		during the 180-day period, the person may continue to practice
24		until the Department acts to grant or deny registration. If an
25		application is not filed within the 180-day period, the person

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1		must cease the practice at the conclusion of the 180-day period
2		and until the Department acts to grant a registration to the
3		person.
4		(Source: P.A. 97-602, eff. 8-26-11.)
5		(225 ILCS 459/25)
6		Sec. 25. Powers and duties of the Department. Subject to
7		the provisions of this Act:
8		(1) The Department may ascertain the qualifications
9		and fitness of applicants for registration and pass upon
10		the qualifications of applicants for registration.
11		(2) The Department may conduct hearings on proceedings
12		to refuse to issue or renew or to revoke registrations or
13		suspend, place on probation, or reprimand persons or
14		otherwise discipline individuals or entities subject to
15		this Act.
16		(3) The Department may adopt formulate all rules
17		required for the administration of this Act. With the
18		exception of emergency rules, any proposed rules,
19		amendments, second notice materials, and adopted rule or
20		amendment materials or policy statements concerning
21		appraisal management companies shall be presented to the
22		Real Estate Appraisal Administration and Disciplinary
23		Board for review and comment. The recommendations of the
24		Board shall be presented to the Secretary for consideration
25		in making final decisions.

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1		(4) The Department may maintain rosters of the names
2		and addresses of all registrants, and all persons whose
3		registrations have been suspended, revoked, or denied
4		renewal for cause within the previous calendar year or
5		otherwise disciplined pursuant to this Act and shall
6		transmit the roster, along with any national registry fees
7		obtained by it, to the entity specified by and in a manner
8		consistent with Title XI of the federal Financial
9		Institutions Reform, Recovery, and Enforcement Act of
10		1989. These rosters shall be available upon written request
11		and payment of the required fee as established by rule.
12		(Source: P.A. 97-602, eff. 8-26-11.)
13		(225 ILCS 459/32 new)
14		Sec. 32. Multi-state licensing system. The Secretary may
15		require participation in a third-party, multi-state licensing
16		system for registration under this Act. The multi-state
17		licensing system may share regulatory information and maintain
18		records in compliance with the provisions of this Act. The
19		multi-state licensing system may charge the applicant an
20		administration fee.
21		(225 ILCS 459/35)
22		Sec. 35. Application for original registration.
23		Applications for original registration shall be made to the
24		Department on forms prescribed by the Department, or through a

SB2617 Enrolled - 34 - LRB100 16106 SMS 31225 b
1		multi-state licensing system as designated by the Secretary,
2		and accompanied by the required fee. All applications shall
3		contain the information that, in the judgment of the
4		Department, will enable the Department to pass on the
5		qualifications of the applicant to be registered to practice as
6		set by rule.
7		(Source: P.A. 97-602, eff. 8-26-11.)
8		(225 ILCS 459/37 new)
9		Sec. 37. Transferability; assignability. A registration,
10		when issued for an appraisal management company, shall state
11		the name of the registrant and the address of the principal
12		office. The registration is not transferable or assignable.
13		(225 ILCS 459/40)
14		Sec. 40. Qualifications for registration.
15		(a) The Department may issue a certification of
16		registration to practice under this Act to any applicant who is
17		qualified to do business in this State and applies to the
18		Department on forms provided by the Department, or through a
19		multi-state licensing system as designated by the Secretary,
20		pays the required non-refundable fees fee, is qualified to
21		transact business in this State, and who provides the
22		following:
23		(1) the business name of the applicant seeking
24		registration;

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1		(2) the business address or addresses and contact
2		information of the applicant seeking registration;
3		(3) if the business applicant is not a corporation that
4		is domiciled in this State, then the name and contact
5		information for the company's agent for service of process
6		in this State;
7		(4) the name, address, and contact information for any
8		individual or any corporation, partnership, limited
9		liability company, association, or other business
10		applicant that owns 10% or more of the appraisal management
11		company along with a completed criminal history records
12		background check as required in Section 68;
13		(5) the name, address, and contact information for a
14		designated controlling person;
15		(6) a certification that the applicant will utilize
16		Illinois licensed appraisers to provide appraisal services
17		within the State of Illinois;
18		(7) a certification that the applicant has a system in
19		place utilizing a licensed Illinois appraiser to review the
20		work of all employed and independent appraisers that are
21		performing real estate appraisal services in Illinois for
22		the appraisal management company on a periodic basis,
23		except for a quality control review, to verify that the
24		real estate appraisal assignments are being conducted in
25		accordance with USPAP;
26		(8) a certification that the applicant maintains a

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1		detailed record of each service request that it receives
2		and the independent appraiser that performs the real estate
3		appraisal services for the appraisal management company;
4		(9) a certification that the employees of the appraisal
5		management company working on behalf of the appraisal
6		management company directly involved in providing
7		appraisal management services, will be appropriately
8		trained and familiar with the appraisal process to
9		completely provide appraisal management services;
10		(10) an irrevocable Uniform Consent to Service of
11		Process, under rule; and
12		(11) a certification that the applicant shall comply
13		with all other requirements of this Act and rules
14		established for the implementation of this Act.
15		(b) Applicants have 3 years from the date of application to
16		complete the application process. If the process has not been
17		completed in 3 years, the application shall be denied, the fee
18		shall be forfeited, and the applicant must reapply and meet the
19		requirements in effect at the time of reapplication.
20		(Source: P.A. 97-602, eff. 8-26-11.)
21		(225 ILCS 459/43 new)
22		Sec. 43. Application denial. If an application is denied,
23		the applicant may, within 20 days after the date of the notice
24		of denial, make a written request to the Secretary for a
25		hearing on the application, and the Secretary shall set a time

SB2617 Enrolled - 37 - LRB100 16106 SMS 31225 b
1		and place for the hearing. The hearing shall be set for a date
2		after the receipt by the Secretary of the request for hearing,
3		and notice of the time and place of the hearing shall be
4		communicated to the applicant at least 10 days before the date
5		of the hearing. The applicant shall pay the actual cost of
6		making the transcript of the hearing before the Secretary
7		issues his or her decision following the hearing. If, following
8		the hearing, the application is denied, the Secretary shall
9		prepare and keep on file in his or her office a written order
10		of denial thereof that shall contain his or her findings and
11		the reasons supporting the denial and shall communicate a copy
12		to the applicant in a manner prescribed by the Department. A
13		decision may be reviewed as provided in Section 135.
14		(225 ILCS 459/47 new)
15		Sec. 47. Annual report; investigation; costs. Each
16		registrant shall annually file a report with the Secretary for
17		the calendar year period from January 1 through December 31,
18		giving relevant information as the Secretary may reasonably
19		require concerning, and for the purpose of examination for
20		compliance with federal and State regulations, the business and
21		operations during the preceding fiscal year period of each
22		registered appraisal management company conducted by the
23		registrant within the State. The report shall be made under
24		oath and shall be in the form prescribed by rule. The Secretary
25		may, at any time, investigate a registrant and every person,

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1		partnership, association, limited liability company,
2		corporation, or other business entity who or which is engaged
3		in the business of operating an appraisal management company.
4		For that purpose, the Secretary shall have free access to the
5		offices and places of business and to records of all persons,
6		firms, partnerships, associations, limited liability companies
7		and members thereof, and corporations and to the officers and
8		directors thereof that relate to the appraisal management
9		company. The investigation may be conducted in conjunction with
10		representatives of other State agencies or agencies of another
11		state or of the United States as determined by the Secretary.
12		The Secretary may require by subpoena the attendance of and
13		examine under oath all persons whose testimony he or she may
14		require relative to the appraisal management company, and, in
15		those cases, the Secretary, or a representative whom he or she
16		may designate, may administer oaths to all persons called as
17		witnesses, and the Secretary, or a representative of the
18		Secretary, may conduct an audit, and there shall be paid to the
19		Secretary for each audit a fee, to be established by rule, for
20		each day or part thereof for each representative designated and
21		required to conduct the audit.
22		(225 ILCS 459/55)
23		Sec. 55. Fees.
24		(a) The fees for the administration and enforcement of this
25		Act, including, but not limited to, original registration fees,

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1		renewal fees, appraiser panel fees, appraiser management
2		company national registry fees, and restoration fees, shall be
3		set by the Department by rule. The fees shall not be
4		refundable.
5		(b) All fees and other moneys collected under this Act
6		shall be deposited in the Appraisal Administration Fund, except
7		as provided in subsection (d) of this Section.
8		(c) The Department shall establish by rule a process for
9		calculating, collecting, and paying appraiser panel fees and,
10		where applicable, appraiser management company national
11		registry fees in a manner consistent with Title XI of the
12		federal Financial Institutions Reform, Recovery, and
13		Enforcement Act of 1989.
14		(d) The administration fee charged by the multi-state
15		licensing system shall be paid directly to the multi-state
16		licensing system.
17		(Source: P.A. 97-602, eff. 8-26-11.)
18		(225 ILCS 459/65)
19		Sec. 65. Disciplinary actions.
20		(a) The Department may refuse to issue or renew, or may
21		revoke, suspend, place on probation, reprimand, or take other
22		disciplinary or non-disciplinary action as the Department may
23		deem appropriate, including imposing fines not to exceed
24		$25,000 for each violation, with regard to any registration for
25		any one or combination of the following:

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1		(1) Material misstatement in furnishing information to
2		the Department.
3		(2) Violations of this Act, or of the rules adopted
4		under this Act.
5		(3) Conviction of, or entry of a plea of guilty or nolo
6		contendere to any crime that is a felony under the laws of
7		the United States or any state or territory thereof or that
8		is a misdemeanor of which an essential element is
9		dishonesty, or any crime that is directly related to the
10		practice of the profession.
11		(4) Making any misrepresentation for the purpose of
12		obtaining registration or violating any provision of this
13		Act or the rules adopted under this Act pertaining to
14		advertising.
15		(5) Professional incompetence.
16		(6) Gross malpractice.
17		(7) Aiding or assisting another person in violating any
18		provision of this Act or rules adopted under this Act.
19		(8) Failing, within 30 days after requested, to provide
20		information in response to a written request made by the
21		Department.
22		(9) Engaging in dishonorable, unethical, or
23		unprofessional conduct of a character likely to deceive,
24		defraud, or harm the public.
25		(10) Discipline by another state, District of
26		Columbia, territory, or foreign nation, if at least one of

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1		the grounds for the discipline is the same or substantially
2		equivalent to those set forth in this Section.
3		(11) A finding by the Department that the registrant,
4		after having his or her registration placed on probationary
5		status, has violated the terms of probation.
6		(12) Willfully making or filing false records or
7		reports in his or her practice, including, but not limited
8		to, false records filed with State agencies or departments.
9		(13) Filing false statements for collection of fees for
10		which services are not rendered.
11		(14) Practicing under a false or, except as provided by
12		law, an assumed name.
13		(15) Fraud or misrepresentation in applying for, or
14		procuring, a registration under this Act or in connection
15		with applying for renewal of a registration under this Act.
16		(16) Being adjudicated liable in a civil proceeding for
17		violation of a state or federal fair housing law.
18		(17) Failure to obtain or maintain the bond required
19		under Section 50 of this Act.
20		(18) Failure to pay appraiser panel fees or appraisal
21		management company national registry fees.
22		(b) The Department may refuse to issue or may suspend
23		without hearing as provided for in the Civil Administrative
24		Code the registration of any person who fails to file a return,
25		or to pay the tax, penalty or interest shown in a filed return,
26		or to pay any final assessment of the tax, penalty, or interest

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1		as required by any tax Act administered by the Illinois
2		Department of Revenue, until such time as the requirements of
3		any such tax Act are satisfied.
4		(c) An appraisal management company shall not be registered
5		or included on the national registry if the company, in whole
6		or in part, directly or indirectly, is owned by a person who
7		has had an appraiser license or certificate refused, denied,
8		canceled, surrendered in lieu of revocation, or revoked under
9		the Real Estate Appraiser Licensing Act of 2002 or the rules
10		adopted under that Act, or similar discipline by another state,
11		the District of Columbia, a territory, a foreign nation, a
12		governmental agency, or an entity authorized to impose
13		discipline if at least one of the grounds for that discipline
14		is the same as or the equivalent of one of the grounds for
15		which a licensee may be disciplined as set forth under this
16		Section.
17		(Source: P.A. 97-602, eff. 8-26-11.)
18		(225 ILCS 459/67 new)
19		Sec. 67. Good moral character. If an applicant, or an
20		ownership interest of the applicant, has had a license or
21		registration revoked on a prior occasion, has been found to
22		have committed any of the practices enumerated in Section 65,
23		has been convicted of or entered a plea of guilty or nolo
24		contendere to forgery, embezzlement, obtaining money under
25		false pretenses, larceny, extortion, conspiracy to defraud, or

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1		a similar offense or offenses, or has been convicted of a
2		felony involving moral turpitude in a court of competent
3		jurisdiction in this State or any other state, district, or
4		territory of the United States or of a foreign country, the
5		Department may consider the prior revocation, conduct, or
6		conviction in its determination of the applicant's moral
7		character and whether to grant the applicant's registration. In
8		its consideration of the prior revocation, conduct, or
9		conviction, the Department shall take into account the nature
10		of the conduct, any aggravating or extenuating circumstances,
11		the time elapsed since the revocation, conduct, or conviction,
12		the rehabilitation or restitution performed by the applicant,
13		and any other factors that the Department deems relevant. When
14		an applicant has made a false statement of material fact on his
15		or her application, the false statement may in itself be
16		sufficient grounds to revoke or refuse to issue a registration.
17		(225 ILCS 459/68 new)
18		Sec. 68. Criminal history records background check. Each
19		individual applicant or controlling person on behalf of a
20		business entity that applies for registration or restoration
21		shall have his or her fingerprints submitted to the Department
22		of State Police in an electronic format that complies with the
23		form and manner for requesting and furnishing criminal history
24		record information as prescribed by the Department of State
25		Police, or through a multi-state licensing system as designated

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1		by the Secretary. These fingerprints shall be checked against
2		the Department of State Police and Federal Bureau of
3		Investigation criminal history record databases now and
4		hereafter filed. The Department of State Police shall charge
5		applicants a fee for conducting the criminal history records
6		background check, which shall be deposited into the State
7		Police Services Fund and shall not exceed the actual cost of
8		the criminal history records background check. The Department
9		of State Police shall furnish, pursuant to positive
10		identification, records of Illinois convictions to the
11		Department. The Department may require an applicant to pay a
12		separate fingerprinting fee, either to the Department or to a
13		vendor. The Department may adopt any rules necessary to
14		implement this Section.
15		(225 ILCS 459/160)
16		Sec. 160. Business practice provisions; standards of
17		practice.
18		(a) The Department may adopt by rule the Uniform Standards
19		of Professional Appraisal Practice as published from time to
20		time by the Appraisal Standards Board of the Appraisal
21		Foundation. Appraisal management companies shall not interfere
22		with adherence to the Uniform Standards of Professional
23		Appraisal Practice or the Real Estate Appraiser Act of 2002 or
24		a subsequent Act by individuals licensed under the respective
25		Acts.

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1		(b) All payment policies from registrants under this Act to
2		appraisers shall be written and definitive in nature.
3		(c) In the event of a value dispute or a requested
4		reconsideration of value, the appraisal management company
5		shall deliver all information that supports an increase or
6		decrease in value to the appraiser. This information may
7		include, but is not limited to, additional comparable sales.
8		(d) Each entity registered under this Act shall designate a
9		controlling person who is responsible to assure that the
10		company operates in compliance with this Act. The company shall
11		file a form provided by the Department indicating the company's
12		designation of the controlling person and such individual's
13		acceptance of the responsibility. A registrant shall notify the
14		Department of any change in its controlling person within 30
15		days. Any registrant who does not comply with this subsection
16		(d) shall have its registration suspended under the provisions
17		set forth in this Act until the registrant complies with this
18		Section. Any individual registrant who operates as a sole
19		proprietorship shall be considered a designated controlling
20		person for the purposes of this Act.
21		(e) Appraisal management companies or employees of an
22		appraisal management company involved in a real estate
23		transaction who have a reasonable basis to believe that an
24		appraiser involved in the preparation of an appraisal for the
25		real estate transaction has failed to comply with the Uniform
26		Standards of Professional Appraisal Practice, has violated

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1		this Act or its rules, or has otherwise engaged in unethical
2		conduct shall report the matter to the Department. Any
3		registrant, employee, or individual acting on behalf of a
4		registrant, acting in good faith, and not in a willful and
5		wanton manner, in complying with this Act by reporting the
6		conduct to the Department shall not, as a result of such
7		actions, be subject to criminal prosecution or civil damages.
8		(f) Appraisal management companies are required to be in
9		compliance with the appraisal independence standards
10		established under Section 129E of the federal Truth in Lending
11		Act, including the requirement that fee appraisers be
12		compensated at a customary and reasonable rate when the
13		appraisal management company is providing services for a
14		consumer credit transaction secured by the principal dwelling
15		of a consumer. To the extent permitted by federal law or
16		regulation, the Department shall formulate rules pertaining to
17		customary and reasonable rates of compensation for fee
18		appraisers. The appraisal management company must certify to
19		the Department that it has policies and procedures in place to
20		be in compliance under the Final Interim Rule of the federal
21		Dodd-Frank Wall Street Reform and Consumer Protection Act.
22		(g) No appraisal management company procuring or
23		facilitating an appraisal may have a direct or indirect
24		interest, financial or otherwise, in the real estate or the
25		transaction that is the subject of the appraisal, as defined by
26		the federal Dodd-Frank Wall Street Reform and Consumer

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1		Protection Act, any amendments thereto, or successor acts or
2		other applicable provisions of federal law or regulations.
3		(Source: P.A. 97-602, eff. 8-26-11.)
4		(225 ILCS 459/163 new)
5		Sec. 163. Appraiser panel; annual size calculation. An
6		appraiser is deemed part of the appraisal management company's
7		appraiser panel as of the earliest date the appraisal
8		management company accepts the appraiser for consideration for
9		future appraisal assignments in covered transactions or
10		engages the appraiser to perform one or more appraisal
11		assignments on behalf of a creditor or secondary mortgage
12		market participant in a covered transaction, including an
13		affiliate of such a creditor or participant. An appraiser is
14		considered to be part of the appraisal management company's
15		appraiser panel if deemed to remain on the panel until: (1) the
16		date on which the appraisal management company sends written
17		notice to the appraiser removing the appraiser from the
18		appraiser panel; (2) the date the appraisal management company
19		receives written notice from the appraiser asking to be removed
20		from the appraiser panel; or (3) the date the appraisal
21		management company receives notice of the death or incapacity
22		of the appraiser. If an appraiser is removed from an appraisal
23		management company's appraiser panel but the appraisal
24		management company subsequently accepts the appraiser for
25		consideration for future assignments or engages the appraiser

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1		at any time during the 12 months after the appraiser's removal,
2		the removal would be deemed not to have occurred and the
3		appraiser is deemed to have been part of the appraisal
4		management company's appraiser panel without interruption.
5		(225 ILCS 459/177 new)
6		Sec. 177. Administrator, executor, or guardian. If the
7		ownership of an appraisal management company registered under
8		this Act is held or contained in an estate subject to the
9		control and supervision of an administrator, executor, or
10		guardian appointed, approved, or by a court of the State of
11		Illinois, having jurisdiction so to do, the administrator,
12		executor, or guardian may, upon the entry of an order by the
13		court granting leave to continue the operation of the appraisal
14		management company, apply to the Secretary for a registration
15		under this Act. If the administrator, executor, or guardian
16		applies for an appraisal management company registration
17		pursuant to this Section and complies with all of the
18		provisions of this Act relating to the application for an
19		appraisal management company registration, the Secretary may
20		issue to the applicant an appraisal management company
21		registration. An appraisal management company registration
22		issued to an appraisal management company, for which an
23		application for a registration is sought under this Section, if
24		not previously surrendered, lapsed, or revoked, shall be
25		surrendered, revoked, or otherwise terminated before a

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1		registration is issued pursuant to the application made under
2		this Section.
3		Section 99. Effective date. This Act takes effect upon
4		becoming law.