Illinois Modifies Residential Mortgage License Act Provisions
Illinois has amended provisions under its Residential Mortgage License Act. These provisions are effective immediately.
Under one new provision, bona fide nonprofit organizations and their employees have been included in the definition of “exempt person or entity.” The definition of a “bona fide nonprofit organization” is further clarified in this section.
Another section has been added which sets out acts and practices that are prohibited by licensees. These acts include failure to maintain at least one full service office in Illinois when required to do so; failure to maintain adequate staff; and failure to maintain written records for at least thirty-six months.
A provision requiring the Secretary to obtain loan delinquency data from the U.S. Department of Housing and Urban Development during the examination process of licensees has been repealed.
A final provision clarifies that requirements set forth in Section 5-9 of the Act do not apply to licensees providing notices of change in loan terms pursuant to the CFPB’s Know Before You Owe mortgage disclosure procedure. For the full text of House Bill 5542, please refer to http://www.ilga.gov/legislation/100/HB/PDF/10000HB5542lv.pdf.
Elizabeth Dailey, JD, is a Regulatory Compliance Director with CLA. She is a graduate of the University of New Hampshire and earned her juris doctor at New England Law. She is admitted to the Massachusetts Bar.
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