Illinois Administrative Code

Section 1050.320 Application for Renewal of an Illinois Residential Mortgage License (Repealed) (Source: Repealed at 41 Ill. Reg. 12405, effective October 6, 2017)

Section 1050.330 Waiver of License Fee Each applicant for a new Illinois Residential Mortgage License and each applicant for a renewal of an Illinois Residential Mortgage License that intends to request a waiver of the licensing fee under Section 2-7 of the Act shall file a reque…

Section 1050.340 Full-Service Office a) Each licensee shall maintain a full-service office consistent with the provisions of Sections 3-4 and 1-4(r) of the Act. At a minimum, each licensee shall: 1) Maintain a registered agent in Illinois; and 2) Provide a person or persons reaso…

Section 1050.350 Additional Full-Service Office Each licensee that intends to operate and maintain an additional full-service office shall file a Notice of Intent to Establish an Additional Full-Service Office, on a form prescribed by the Director, 30 days prior to the proposed o…

Section 1050.360 Continuing Education Requirements for Certain Employees (Repealed) (Source: Repealed at 28 Ill. Reg. 10352, effective June 29, 2004)

Section 1050.370 Licensing of Mortgage Loan Originators a) License Applications The Director may withdraw any license application for which the applicant has failed or refused to provide a written response, including any required documentation, within 21 business days after recei…

Section 1050.410 Net Worth a) Amount. Except as provided in subsection (c) of this Section, each licensee shall maintain net worth of not less than $150,000. b) Calculation. Net worth shall be defined as total assets minus total liabilities, except that total assets shall not inc…

Section 1050.420 Line of Credit (Repealed) (Source: Repealed at 13 Ill. Reg. 17056, effective October 20, 1989)

Section 1050.425 Examination a) As part of each regularly scheduled examination, the Director shall evaluate and rate licensees, for purposes of scheduling the next regular examination, in accordance with uniform rating factors. b) Composite ratings shall include but not be limit…

Section 1050.430 Late Audit Reports Audit reports not delivered within 90 days after the date specified in Section 3-2 of the Act, unless extended for cause by the Director, shall cause the licensee to pay a fee at the rate of $50 per calendar day for up to three months. An indep…

Section 1050.440 Escrow a) Escrow funds shall be disclosed as a part of the licensee's financial statement package. Escrow funds collected pursuant to Section 1050.1335 and for payment of real property taxes or any other purpose authorized by the mortgage contract shall be mainta…

Section 1050.450 Audit Workpapers Upon request from the Director, a licensee shall forward authorization to release workpapers of the licensee's independent auditor to the Director within two days after receipt of the request. (Source: Amended at 29 Ill. Reg. 14808, effective Sep…

Section 1050.460 Selection of Independent Auditor (Repealed) (Source: Repealed at 34 Ill. Reg. 17339, effective October 29, 2010)

Section 1050.470 Proceedings Affecting a License Each licensee shall be required to provide notification to the Director within two days after the licensee becomes the subject of any other Federal or State governmental agency's proceedings that which could affect the licensee's a…

Section 1050.475 Change in Business Activities Each licensee shall be required to provide advance written notice to the Director at least 10 business days prior to: a) Closing a full-service office; or b) Discontinuing brokering, originating, or servicing, as defined under the Ac…

Section 1050.480 Change of Ownership, Control or Name or Address of Licensee Prior to a change of ownership or control, a change of name or address or a change of officers or directors, a licensee shall complete and file the appropriate application and the appropriate fee as set …

Section 1050.490 Bonding Requirements a) In lieu of a paper surety bond, each licensee shall file and maintain an electronic surety bond in the NMLS in conformance with Section 3-1 of the Act. The amount of the bond shall be not less than $25,000 and in an amount according to the…

Section 1050.610 Filing Requirements On or before March 1 of each year, each licensee, except entities engaged solely in loan brokering activities and entities engaged solely in servicing activities, shall file an Annual Report of Mortgage Activity. On or before March 1 of each y…

Section 1050.620 Reporting Forms The reports required by Section 1050.610 must be filed with the Director on forms prescribed by and obtained from the Director and in accordance with the instructions for filing included with the forms. (Source: Amended at 29 Ill. Reg. 14808, effe…

Section 1050.630 Annual Report of Mortgage Activity a) Each licensee shall report the number and aggregate dollar amount of application for, and the number granted and the aggregate dollar amount of, loans pursuant to Section 4-8.3 of the Act. This report shall be categorized by:…

Section 1050.640 Annual Report of Brokerage Activity a) Each licensee and service corporation of savings and loan associations and subsidiaries or affiliates of certain banks and foreign banking organizations exempted from licensing by Section 1-4(d)(viii) and (ix) of the Act, wh…

Section 1050.650 Annual Report of Servicing Activity Each licensee that services home loan mortgages and reports any of these loans as being in default or foreclosure pursuant to Section 4-8.3 of the Act shall furnish, in addition to other information requested by the Director th…

Section 1050.655 Annual Report of Purchasing Activity Each licensee that purchases residential mortgage loans shall file an Annual Report of Purchasing Activity. The Annual Report of Purchasing Activity shall include the names of originating entities, dollar amounts for each loan…

Section 1050.660 Verification A notarized affidavit or oath, affirmation or declaration under penalty of perjury, attesting to the accuracy and truthfulness of the report must accompany each Annual Report of Mortgage Activity, Annual Report of Brokerage Activity and Annual Servic…

Section 1050.710 Computation of National Residential Mortgage Foreclosure Rate (Repealed) (Source: Repealed at 41 Ill. Reg. 12405, effective October 6, 2017)

Section 1050.720 Computation of Illinois Residential Mortgage Foreclosure Rate (Repealed) (Source: Repealed at 41 Ill. Reg. 12405, effective October 6, 2017)

Section 1050.730 Excess Foreclosure Rate (Repealed) (Source: Repealed at 41 Ill. Reg. 12405, effective October 6, 2017)

Section 1050.740 Loan Delinquency Hearing a) Authority. The Director may hold public hearings concerning a licensee that is subject to examination pursuant to Section 4-8 of the Act. The hearing shall be held in accordance with Section 4-8(c) of the Act. b) Notice. Written notice…

Section 1050.750 Director's Authority − Unusually High Rate (Repealed) (Source: Repealed at 41 Ill. Reg. 12405, effective October 6, 2017) SUBPART G: SERVICING

Section 1050.810 New Loans When a borrower is required to make monthly payments, payment instructions shall be issued in time to reasonably assure receipt by the customer at least 15 days before the first payment is due and shall include, but not be limited to the following: a) T…

Section 1050.820 Transfer of Servicing a) No licensee shall sell or transfer servicing to, or accept or purchase servicing from, any entity other than a licensee or an entity exempt from licensing pursuant to Section 1-4(d) of the Act unless specifically authorized by the Directo…

Section 1050.830 Real Property Tax and Hazard Insurance Payments Where servicing includes maintenance of an escrow (impound) account for payment of tax bills and hazard insurance premiums, the licensee shall make a good faith effort to comply with the following guidelines: a) Tax…

Section 1050.840 Payment Processing A licensee shall process and properly credit to a mortgage loan account any payment from a mortgagor on the same calendar date the payment is physically delivered, either in person or via United States Mail, at the address designated by the lic…

Section 1050.850 Toll-Free Telephone Arrangement Telephone calls, regarding a mortgage loan account, to a licensee with a telephone area code other than that of the customer shall not be at the customer's expense. When a licensee is not required by the Act or this Part to maintai…

Section 1050.860 Payoff of Outstanding Mortgage Loan a) When a check or other negotiable instrument received in final payment is deposited in a financial institution, the licensee's refund policy shall conform to Section 4-213 of the Uniform Commercial Code [810 ILCS 5/4-213] tim…

Section 1050.870 Compliance with Other Laws Servicing and foreclosure procedures of a licensee shall comply with applicable federal and State statutes and regulations, including but not limited to, Section 15-1502.5 of the Illinois Mortgage Foreclosure Law [735 ILCS 5/15-1502.5].…

Section 1050.910 General Prohibition No person, partnership, association, corporation or other, entity except a licensee or an entity exempt from licensing pursuant to Section 1-4(d) of the Act, shall cause to be circulated or use any advertising appearing in the State of Illinoi…

Section 1050.920 Definition of Advertisement a) An advertisement is any message, except as provided in subsection (b) of this Section, conveyed in any format, including, but not limited to, the Internet, and attempting to induce, directly or indirectly, any person to enter into a…

Section 1050.930 Compliance with Other Laws Every advertisement shall comply with Sections 1-3(b) and 3-3 of the Act, as well as applicable Federal and State statutes and regulations, including, but not limited, to the Consumer Credit Protection Act (15 USC 1601, et seq.) includi…

Section 1050.940 Requirements Any advertisement appearing in Illinois by a licensee regarding residential mortgage loans, whether via electronic or print media, including mailings to individual potential residential mortgage loan customers, shall include, in a manner that is clea…

Section 1050.950 Misleading and Deceptive Advertising Prohibition Advertisements by licensees shall not be false, misleading or deceptive. Examples of prohibited advertising include but are not limited to the following: a) No advertisement regarding residential mortgage lending o…

Section 1050.APPENDIX C Form of Shared Appreciation Agreement Disclosure _______________________________________ Provider Name __________________________________________________________________________ Provider Address Illinois Shared Appreciation Agreement (Estimate/Closing) Dis…

Section 1055.10 Authority, Purposes and Scope a) The Illinois Community Reinvestment Act (ILCRA) [205 ILCS 735] authorizes this Part. b) Purposes. This Part is intended to carry out the mortgage lender community investment purposes of [205 ILCS 735] by establishing the framework …

Section 1055.20 Definitions For purposes of this Part, the following definitions apply: "Area median income" means: the median family income for the Metropolitan Statistical Area (MSA), if a person or geography is located in an MSA; or the Statewide nonmetropolitan median family …

Section 1055.200 Assessment Factors As used in this Part, "assessment factors" means the assessment of the following factors to determine whether a covered mortgage licensee is meeting the financial services needs of local communities: a) activities to ascertain the financial ser…

Section 1055.210 Performance Tests, Standards, and Ratings, in General a) Performance tests and standards. The Secretary assesses the performance of a covered mortgage licensee in an examination as outlined in this Section. The Secretary applies the assessment factors, as provide…

Section 1055.220 Lending Test a) Scope of test. 1) The lending test evaluates a covered mortgage licensee's record of helping to meet the mortgage credit needs of the State through its lending activities by considering a covered mortgage licensee's home mortgage and community dev…