Bill Text: IL HB2316 | 2011-2012 | 97th General Assembly | Introduced

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Bill Title: Amends the Residential Mortgage License Act of 1987. Makes a technical change in a Section concerning the necessity of obtaining a license.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2013-01-08 - Session Sine Die [HB2316 Detail]

Download: Illinois-2011-HB2316-Introduced.html

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97TH GENERAL ASSEMBLY State of Illinois 2011 and 2012 HB2316 Introduced , by Rep. Tom Cross SYNOPSIS AS INTRODUCED:
205 ILCS 635/1-3 from Ch. 17, par. 2321-3
Amends the Residential Mortgage License Act of 1987. Makes a technical change in a Section concerning the necessity of obtaining a license.
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A BILL FOR
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AN ACT concerning regulation.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Residential Mortgage License Act of 1987 is
amended by changing Section 1-3 as follows:
(205 ILCS 635/1-3) (from Ch. 17, par. 2321-3)
Sec. 1-3. Necessity for License; Scope of Act.
(a) No person, partnership, association, corporation or
other entity shall engage in the the business of brokering,
funding, originating, servicing or purchasing of residential
mortgage loans without first obtaining a license from the
Commissioner in accordance with the licensing procedure
provided in this Article I and such regulations as may be
promulgated by the Commissioner. The licensing provisions of
this Section shall not apply to any entity engaged solely in
commercial mortgage lending or to any person, partnership
association, corporation or other entity exempted pursuant to
Section 1-4, subsection (d), of this Act or in accordance with
regulations promulgated by the Commissioner hereunder. No
provision of this Act shall apply to an exempt person or entity
as defined in items (1) and (1.5) of subsection (d) of Section
1-4 of this Act. Notwithstanding anything to the contrary in
the preceding sentence, an individual acting as a mortgage loan

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originator who is not employed by and acting for an entity
described in item (1) of subsection (tt) of Section 1-4 of this
Act shall be subject to the mortgage loan originator licensing
requirements of Article VII of this Act.
(b) No person, partnership, association, corporation, or
other entity except a licensee under this Act or an entity
exempt from licensing pursuant to Section 1-4, subsection (d),
of this Act shall do any business under any name or title, or
circulate or use any advertising or make any representation or
give any information to any person, which indicates or
reasonably implies activity within the scope of this Act.
(c) The Commissioner may, through the Attorney General,
request the circuit court of either Cook or Sangamon County to
issue an injunction to restrain any person from violating or
continuing to violate any of the foregoing provisions of this
Section.
(d) When the Commissioner has reasonable cause to believe
that any entity which has not submitted an application for
licensure is conducting any of the activities described in
subsection (a) hereof, the Commissioner shall have the power to
examine all books and records of the entity and any additional
documentation necessary in order to determine whether such
entity should become licensed under this Act.
(d-1) The Commissioner may issue orders against any person
if the Commissioner has reasonable cause to believe that an
unsafe, unsound, or unlawful practice has occurred, is

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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 purposes of
administering the provisions of this Act and any rule adopted
in accordance with this Act.
(e) Any person, partnership, association, corporation or
other entity who violates any provision of this Section commits
a business offense and shall be fined an amount not to exceed
$25,000.
(f) Each person, partnership, association, corporation or
other entity conducting activities regulated by this Act shall
be issued one license. Each office, place of business or
location at which a residential mortgage licensee conducts any
part of his or her business must be recorded with the
Commissioner pursuant to Section 2-8 of this Act.
(g) Licensees under this Act shall solicit, broker, fund,
originate, service and purchase residential mortgage loans
only in conformity with the provisions of this Act and such
rules and regulations as may be promulgated by the
Commissioner.
(h) This Act applies to all entities doing business in
Illinois as residential mortgage bankers, as defined by "An Act
to provide for the regulation of mortgage bankers", approved
September 15, 1977, as amended, regardless of whether licensed
under that or any prior Act. Any existing residential mortgage
lender or residential mortgage broker in Illinois whether or

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not previously licensed, must operate in accordance with this
Act.
(i) This Act is a successor Act to and a continuance of the
regulation of residential mortgage bankers provided in, "An Act
to provide for the regulation of mortgage bankers", approved
September 15, 1977, as amended.
Entities and persons subject to the predecessor Act shall
be subject to