Chapter 205 — FINANCIAL REGULATION

(205 ILCS 635/3-3) (from Ch. 17, par. 2323-3) Sec. 3-3. Advertising. In addition to such other rules and policies as the Secretary may adopt to effectuate the purpose of this Act, the Secretary shall adopt rules governing the advertising of mortgage loans, including without limit…

(205 ILCS 635/3-4) (from Ch. 17, par. 2323-4) Sec. 3-4. Office and staff within the State. (a) A licensee whose principal place of business is located in the State of Illinois shall maintain at least one full service office with staff reasonably adequate to handle efficiently com…

(205 ILCS 635/3-5) (from Ch. 17, par. 2323-5) Sec. 3-5. Net worth requirement. A licensee that holds a license on the effective date of this amendatory Act of the 93rd General Assembly shall have and maintain a net worth of not less than $100,000; however, no later than 2 years a…

(205 ILCS 635/3-7) (from Ch. 17, par. 2323-7) Sec. 3-7. Transfer of Servicing; Notices. Whenever the servicing of a residential mortgage is transferred or sold by a licensee, notice shall be given to the mortgagor simultaneous with such transfer and shall include, at the minimum,…

(205 ILCS 635/3-8) (from Ch. 17, par. 2323-8) Sec. 3-8. Discrimination and redlining prohibited. It shall be considered discriminatory to refuse to grant loans or to vary the terms of loans or the application procedures for loans because of: (i) in the case of the proposed borrow…

(205 ILCS 635/3-9) (from Ch. 17, par. 2323-9) Sec. 3-9. Escrow Funds. The Commissioner may promulgate rules with respect to placement in escrow accounts by any licensee of any money, fund, deposit, check or draft entrusted to it by any persons dealing with it as a residential mor…

(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…

(205 ILCS 635/4-1.5) Sec. 4-1.5. Residential Finance Regulatory Fund. (a) The aggregate of all moneys collected by the Secretary under this Act shall be paid promptly after receipt of the same, accompanied by a detailed statement thereof, into the State treasury and shall be set …

(205 ILCS 635/4-10) (from Ch. 17, par. 2324-10) Sec. 4-10. Rules and regulations of the Commissioner. (a) In addition to such powers as may be prescribed by this Act, the Commissioner is hereby authorized and empowered to promulgate regulations consistent with the purposes of thi…

(205 ILCS 635/4-11) (from Ch. 17, par. 2324-11) Sec. 4-11. Costs of Supervision; Examination and Investigative Fees. The expenses of administering this Act, including investigations and examinations provided for in this Act shall be borne by and assessed against entities regulate…

(205 ILCS 635/4-12) (from Ch. 17, par. 2324-12) Sec. 4-12. Appeal and Review. (a) Any person or entity affected by a decision of the Commissioner under any provision of this Act may obtain review of such decision within the Office of the Commissioner. (b) The Commissioner shall, …

(205 ILCS 635/4-13) (from Ch. 17, par. 2324-13) Sec. 4-13. Violations of this Act; Commissioner's Orders. If the Commissioner finds, as the result of examination, investigation or review of reports submitted by a licensee that the business and affairs of a licensee are not being …

(205 ILCS 635/4-14) (from Ch. 17, par. 2324-14) Sec. 4-14. Collection of fees. Unless exempt from licensure under this Act, no person engaged in or offering to engage in any act or service, for which a license under this Act is required, may bring or maintain any action in any co…

(205 ILCS 635/4-15) Sec. 4-15. Enforcement and reporting provisions. The Attorney General may enforce any violation of Section 5-6, 5-7, 5-8, 5-9, 5-10, 5-11, 5-12, 5-14, or 5-15 of this Act as an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. (S…

(205 ILCS 635/4-16) Sec. 4-16. Private right of action. A borrower injured by a violation of the standards, duties, prohibitions, or requirements of Sections 5-6, 5-7, 5-8, 5-9, 5-10, 5-11, 5-12, 5-14, 5-15, and 5-16 of this Act shall have a private right of action. (a) A license…

(205 ILCS 635/4-2) (from Ch. 17, par. 2324-2) Sec. 4-2. Examination; prohibited activities. (a) The business affairs of a licensee under this Act shall be examined for compliance with this Act as often as the Secretary deems necessary and proper. The Secretary shall promulgate ru…

(205 ILCS 635/4-3) (from Ch. 17, par. 2324-3) Sec. 4-3. Subpoena power of the Commissioner. (a) The Commissioner shall have the power to issue and to serve subpoenas and subpoenas duces tecum to compel the attendance of witnesses and the production of all books, accounts, records…

(205 ILCS 635/4-4) (from Ch. 17, par. 2324-4) Sec. 4-4. Report Required of Licensee; False Statements; Delay; Penalties.(a) In addition to any reports required under this Act, every licensee shall file such other reports as the Commissioner shall request. (b) Any licensee or any …

(205 ILCS 635/4-5) (from Ch. 17, par. 2324-5) Sec. 4-5. Suspension, revocation of licenses; fines. (a) Upon written notice to a licensee, the Commissioner may suspend or revoke any license issued pursuant to this Act if he or she shall make a finding of one or more of the followi…

(205 ILCS 635/4-6) (from Ch. 17, par. 2324-6) Sec. 4-6. Investigation of Complaints. The Commissioner shall at all times maintain staff and facilities adequate to receive, record and investigate complaints and inquiries made by any person concerning this Act and any licensees und…

(205 ILCS 635/4-7) Sec. 4-7. Additional investigation and examination authority. In addition to any authority allowed under this Act, the Director shall have the authority to conduct investigations and examinations as follows: (a) For purposes of initial licensing, license renewa…

(205 ILCS 635/4-8) (from Ch. 17, par. 2324-8) Sec. 4-8. Delinquency; examination. (a) (Blank). (b) The Secretary 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 th…

(205 ILCS 635/4-8.1) Sec. 4-8.1. Confidential information. In hearings conducted under this Act, information presented into evidence that was acquired by the licensee when serving any individual in connection with a residential mortgage, including all financial information of the…

(205 ILCS 635/4-8.1A) Sec. 4-8.1A. Confidentiality. (a) In order to promote more effective regulation and reduce regulatory burden through supervisory information sharing, except as otherwise provided in federal Public Law 110-289, Section 1512, the requirements under any federal…

(205 ILCS 635/4-8.2) Sec. 4-8.2. Reports of violations. Any person licensed under this Act or any other person may report to the Commissioner any information to show that a person subject to this Act is or may be in violation of this Act. A licensee who files a report with the De…

(205 ILCS 635/4-8.3) Sec. 4-8.3. Annual report. On or before March 1 of each year or the date selected for Mortgage Call Reports under Section 4-9.1 of this Act, each licensee shall file a report with the Secretary that discloses such information as the Secretary requires. A lice…

(205 ILCS 635/4-9) (from Ch. 17, par. 2324-9) Sec. 4-9. (Repealed). (Source: P.A. 89-355, eff. 8-17-95. Repealed by P.A. 90-301, eff. 8-1-97.)

(205 ILCS 635/4-9.1) Sec. 4-9.1. Mortgage call reports. Each residential mortgage licensee shall submit to the Nationwide Multistate Licensing System and Registry reports of condition, which shall be in the form and shall contain the information that the Nationwide Multistate Lic…

(205 ILCS 635/5-1) (from Ch. 17, par. 2325-1) Sec. 5-1. The Commissioner may promulgate rules with respect to brokering and lending procedures of residential mortgage licensees as necessary to accomplish the purposes of this Act. (Source: P.A. 85-735.)

(205 ILCS 635/5-10) Sec. 5-10. Comparable monthly payment quotes. When comparing different loans, the licensee must not state or imply that monthly loan payments, if they include amounts escrowed for payment of property taxes and homeowner's insurance, are comparable with monthly…

(205 ILCS 635/5-11) Sec. 5-11. Requirement to provide borrower with a copy of all appraisals. Licensees must provide to the borrower a complete copy of any appraisal, including any appraisal generated using the Automated Valuation Model, obtained by the lender for use in underwri…

(205 ILCS 635/5-12) Sec. 5-12. Disclosure of refinancing options. If the subject of a future loan is discussed by a licensee making, providing, or arranging a mortgage loan, the licensee shall disclose the circumstances under which a new loan could be considered. Such disclosure …

(205 ILCS 635/5-12.5) Sec. 5-12.5. Shared appreciation agreement consumer counseling and disclosures. (a) Notwithstanding any provision in this Act to the contrary, before taking any legally binding action on a shared appreciation agreement, the borrower or borrowers shall be pro…

(205 ILCS 635/5-14) Sec. 5-14. Prohibition on equity stripping and loan flipping. No licensee may engage in equity stripping or loan flipping, as those terms are defined in the Illinois Fairness in Lending Act. (Source: P.A. 95-691, eff. 6-1-08.)

(205 ILCS 635/5-15) Sec. 5-15. Prohibition on financing certain insurance premiums. No licensee may make, provide, or arrange for a residential mortgage loan that finances, directly or indirectly, any credit life, credit disability, or credit unemployment insurance; however, insu…

(205 ILCS 635/5-16) Sec. 5-16. Prohibition on encouraging default. A licensee may not recommend or encourage default or the failure to make timely payments on an existing residential mortgage loan or other debt prior to and in connection with the closing or planned closing of a r…

(205 ILCS 635/5-17) Sec. 5-17. Severability. If any provision of this Act or its application to any person or circumstance is held invalid, the invalidity of that provision or application does not affect other provisions or applications of this Act that can be given effect withou…

(205 ILCS 635/5-5) Sec. 5-5. (Repealed). (Source: P.A. 93-863, eff. 8-5-04. Repealed by P.A. 99-331, eff. 1-1-16.)

(205 ILCS 635/5-5A) Sec. 5-5A. Violations of the Reverse Mortgage Act. Any violation of the Reverse Mortgage Act by a residential mortgage licensee shall be considered a violation of this Act. (Source: P.A. 99-331, eff. 1-1-16.)

(205 ILCS 635/5-6) Sec. 5-6. Verification of borrower's ability to repay. (a) No licensee may make, provide, or arrange for a residential mortgage loan without verifying the borrower's reasonable ability to pay the principal and interest on the loan, real estate taxes, homeowner'…

(205 ILCS 635/5-7) Sec. 5-7. Broker agency relationship. (a) A mortgage broker shall be considered to have created an agency relationship with the borrower in all cases and shall comply with the following duties: (1) A mortgage broker shall act in the borrower's best interest and…

(205 ILCS 635/5-8) Sec. 5-8. Prepayment penalties. (a) No licensee may make, provide, or arrange a mortgage loan with a prepayment penalty unless the licensee offers the borrower a loan without a prepayment penalty, the offer is in writing, and the borrower initials the offer to …

(205 ILCS 635/5-8.5) Sec. 5-8.5. Arrearage payments. When a mortgagor is in arrears more than one month, no licensee shall refuse to accept any payments offered by the mortgagor in whole month payment amounts. Such payments shall be applied to the unpaid balance in the manner pro…

(205 ILCS 635/5-9) Sec. 5-9. Notice of change in loan terms. (a) No licensee may fail to do either of the following: (1) Provide timely notice to the borrower of any material change in the terms of the residential mortgage loan prior to the closing of the loan. For purposes of th…

(205 ILCS 635/6-1) (from Ch. 17, par. 2326-1) Sec. 6-1. Powers not exclusive. The powers granted by this Article shall be in addition to all others granted to the Commissioner by this Act. The powers granted by this Article shall not preclude the Commissioner from exercising such…

(205 ILCS 635/6-2) (from Ch. 17, par. 2326-2) Sec. 6-2. Removal and prohibition. (a) Upon making any one or more of the following findings, the Commissioner may issue a notice of intent to issue an order of removal or prohibition, or an order of removal and prohibition, which ord…

(205 ILCS 635/6-3) (from Ch. 17, par. 2326-3) Sec. 6-3. Appointment of receiver or conservator. When the Commissioner makes a finding that a receivership or conservatorship is necessary to protect consumers of a licensee from the consequences of the licensee's failures to comply …

(205 ILCS 635/7-1) Sec. 7-1. (Repealed). (Source: P.A. 96-112, eff. 7-31-09. Repealed by P.A. 100-1153, eff. 12-19-18.)

(205 ILCS 635/7-10) Sec. 7-10. Nationwide Multistate Licensing System and Registry information challenge process. The Director shall establish a process whereby mortgage loan originators may challenge information entered into the Nationwide Multistate Licensing System and Registr…

(205 ILCS 635/7-11) Sec. 7-11. Mortgage loan originator suspension or revocation of registration; refusal to renew; fines. (a) In addition to any other action authorized by this Act or any other applicable law, rule or regulation, the Director may do the following: (1) Suspend, r…