Illinois Amends and Repeals Certain Provisions of the Residential Mortgage License Act

The Illinois Department of Financial and Professional Regulation adopted rules to repeal and amend certain portions of its Residential Mortgage License Act. The changes to Title 38 of the Illinois Administrative Code Section 1050 are effective immediately.

    • Section 1050.320 is repealed because the requirement to complete the renewal application and send it to the Director no later than 60 days prior to the licensee’s annual renewal date conflicts with Section 2-6 of the act which enforces a 30-day timely renewal application deadline.
    • Section 1050.490 contains amendments to the bonding requirements that enable the use of the new electronic surety bond and remove the submission of paper surety bonds. The amount of the bond shall be not less than $25,000 and in an amount according to the scale in subsection (b) of the section. Each Mortgage Loan Originator must be covered by the electronic surety bond filed and maintained by his or her employing licensee.
    • Sections 1050.710-1050.750 related to foreclosure rate are repealed because Public Act 99-0015 amended the regulations’ underlying Act Section 4-8 to now instead address Loan Delinquency data and its implementation.
    • Sections 1050.810-1050.820 & 1050.860 are amended to repeal consumer notice provisions because these notice provisions are preempted by the federal Consumer Financial Protection Bureau (CFPB). Licensee must comply with the notice requirement set forth in 12 CFR 1024.33 when providing notice to mortgagor of transfer.
    • Section 1050.1010 is amended to add reference to the CFPB’s TILA-RESPA Integrated Disclosure (TRID) Loan Estimate and the “Your Home Loan Toolkit” document; the Loan Estimate replaced the Good Faith Estimate for most residential mortgage transactions and the CFPB’s “Your Home Loan Toolkit” replaced the settlement cost booklet. The loan brokerage agreement must contain a description of the services to be provided by the licensee and an accounting of estimated fees paid to the licensee that may be provided through reference to, or be taken from, a good faith estimate or TILA-RESPA Integrated Loan Estimate. The “Your Home Loan Toolkit” may be obtained at the CFPB website:, or from the United States Government Printing Office (GPO) at the GPO website:
    • Section 1050.1176 is amended to allow servicers to preserve their records in electronic or digital format rather than adhere to a paper record-keeping requirement.
    • Section 1050.1230 and 1050.1305 are repealed because there are CFPB-required notifications to consumers of loan term changes in the TRID process.
    • Section 1050.1320 is amended add a reference to the CFPB’s adopted TRID Loan Estimate form in addition to the Good Faith Estimate.

CLA Bankers Advisory is an Authorized MERS Patron Member

Please contact our office to discuss a range of service options to help your organization complete its compliance obligation for MERS Quality Assurance. CLA Bankers Advisory is a MERS patron member and provides consulting services, including assessments necessary for completion of the MERS Annual Report process. Engagements evaluate completion of system-to-system reconciliation and validation of records between lenders, MERS, and any sub-servicer.


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Robert Harrison, JD, is a regulatory compliance consultant with Bankers Advisory. He is a graduate of Boston University and earned his juris doctor at the Boston University School of Law. Robert is admitted to the Bar in Massachusetts.

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