reglab/housing_qa huggingface dataset:
205 ILCS 635/5-6
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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's insurance, assessments, and mortgage insurance premiums, if applicable.For residential mortgage loans in which the interest rate may vary, the reasonable ability to pay the principal and interest on the loan shall be determined based on a fully indexed rate, which rate shall be calculated by using the index rate prevailing at the time of origination of the loan plus the margin that will apply when calculating the adjustable rate under the terms of the loan, assuming a fully amortizing repayment schedule based on the term of the loan.For loans that allow for negative amortization, the principal amount of the loan shall be calculated by including the maximum amount the principal balance may increase due to negative amortization under the terms of the loan.(b) For all residential mortgage loans made by a licensee, the borrower's income and financial resources must be verified by tax returns, payroll receipts, bank records, or other reasonably reliable methods, based upon the circumstances of the proposed loan.  Nothing in this Section shall be construed to limit a licensee's ability to rely on criteria other than the borrower's income and financial resources to establish the borrower's reasonable ability to repay a residential mortgage loan; however, such other criteria must be verified through reasonably reliable methods and documentation.  A statement by the borrower to the licensee of the borrower's income and resources is not sufficient to establish the existence of the income or resources when verifying the reasonable ability to pay. Stated income should be accepted only if there are mitigating factors that clearly minimize the need for direct verification of ability to repay.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/5-7
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 in good faith toward the borrower. A mortgage broker shall not accept, give, or charge any undisclosed compensation or realize any undisclosed remuneration, either through direct or indirect means, that inures to the benefit of the mortgage broker on an expenditure made for the borrower;(2) mortgage brokers shall carry out all lawful     instructions given by borrowers;(3) mortgage brokers shall disclose to borrowers all     material facts of which the mortgage broker has knowledge which might reasonably affect the borrower's rights, interests, or ability to receive the borrower's intended benefit from the residential mortgage loan, but not facts which are reasonably susceptible to the knowledge of the borrower;(4) mortgage brokers shall use reasonable care in     performing duties; and(5) mortgage brokers shall account to a borrower for     all the borrower's money and property received as agent.(b)  Nothing in this Section prohibits a mortgage broker from contracting for or collecting a fee for services rendered and which had been disclosed to the borrower in advance of the provision of those services.(c) Nothing in this Section requires a mortgage broker to obtain a loan containing terms or conditions not available to the mortgage broker in the mortgage broker's usual course of business, or to obtain a loan for the borrower from a mortgage lender with whom the mortgage broker does not have a business relationship.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/5-8
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 indicate that the borrower has  declined the offer.  In addition, the licensee must disclose the discount in rate received in  consideration for a mortgage loan with the prepayment penalty.(b)  If a borrower declines an offer required under subsection (a) of this Section, the licensee may include, except as prohibited by Section 30 of the High Risk Home Loan Act, a prepayment penalty that extends no longer than three years or the first change date or rate adjustment of a variable rate mortgage, whichever comes earlier, provided that, if a prepayment is made during the fixed rate period, the licensee shall receive an amount that is no more than:(1) 3% of the total loan amount if the prepayment is     made within the first 12-month period following the date the loan was made;(2) 2% of the total loan amount if the prepayment is     made within the second 12-month period following the date the loan was made; or(3) 1% of the total loan amount if the prepayment is     made within the third 12-month period following the date the loan was made, if the fixed rate period extends 3 years.(c) Notwithstanding any provision in this Section, prepayment penalties are prohibited in connection with the sale or destruction of a dwelling secured by a residential mortgage loan.(d)  This Section applies to loans made, refinanced, renewed, extended, or modified on or after the effective date of this amendatory Act of the 95th General Assembly.  (Source: P.A. 97-849, eff. 1-10-14 (see Section 10 of P.A. 97-1159, 78 Fed. Reg. 6855, 6857, 78 Fed. Reg. 10695, 10696, and 78 Fed. Reg. 44685, 44686).)
205 ILCS 635/5-8.5
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 provided in the licensee's mortgage with that mortgagor.Nothing in this Section shall be construed to otherwise impair the ability of the licensee to enforce its rights under the mortgage with that mortgagor; nothing in this Section shall be construed to otherwise impair the obligations of the mortgagor under the mortgage with the licensee.  (Source: P.A. 100-268, eff. 1-1-18.)
205 ILCS 635/5-9
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 this Section, a "material change means" any of the following:(A) A change in the type of loan being offered,         such as a fixed or variable rate loan or a loan with a balloon payment.(B) A change in the term of the loan, as         reflected in the number of monthly payments due before a final payment is scheduled to be made.(C) An increase in the interest rate of more than         0.15%, or an equivalent increase in the amount of discount points charged.(D) An increase in the regular monthly payment of         principal and interest of more than 5%.(E) A change regarding the requirement or amount         of escrow of taxes or insurance.(F) A change regarding the requirement or         payment, or both, of private mortgage insurance.(2) Timely inform the borrower if any fees payable by     the borrower to the licensee increase by more than 10% or $100, whichever is greater.(b) The disclosures required by this Section shall be deemed timely if the licensee provides the borrower with the revised information not later than 3 days after learning of the change or 24 hours before the residential mortgage loan is closed, whichever is earlier.  If the licensee discloses a material change more than the 3 days after learning of the change but still 24 hours before the residential mortgage loan is closed, it will not be liable for penalties or forfeitures if the licensee cures in time for the borrower to avoid any damage.(c) If an increase in the total amount of the fee to be paid by the borrower to the broker is not disclosed in accordance with this Section, the broker shall refund to the borrower the amount by which the fee was increased. If the fee is financed into the residential mortgage loan, the broker shall also refund to the borrower the interest charged to finance the fee.(d) The requirements of this Section do not apply to a licensee providing a notice of change in loan terms pursuant to the federal Consumer Financial Protection Bureau's Know Before You Owe mortgage disclosure procedure pursuant to the federal Truth in Lending Act and amendments promulgated under 12 CFR 1026 and the federal Real Estate Settlement Procedures Act and amendments promulgated under 12 CFR 1024.    (Source: P.A. 100-1153, eff. 12-19-18.)
205 ILCS 635/5-10
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 loan payments that do not include these amounts.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/5-11
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 underwriting the residential mortgage loan within 3 business days of receipt by the licensee, but in no event less than 24 hours prior to the day of closing.  The appraisal may be sent via first class mail, commercial carrier, by facsimile or by e-mail, if the borrower has supplied an e-mail address.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/5-12
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 shall clearly state that it is not a contract and that the licensee is not representing or promising that a new loan could or would be made at any time in the future.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/5-14
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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, insurance premiums calculated and paid on a monthly basis shall not be considered to be financed by the lender.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/5-16
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

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 residential mortgage loan that refinances all or any portion of the existing loan or debt.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/5-17
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article V - Lending Procedures

(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 without the invalid provision or application.    (Source: P.A. 95-691, eff. 6-1-08.)
205 ILCS 635/Art. VI heading
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VI - Enforcement Powers

 ARTICLE VI.      ENFORCEMENT POWERS
205 ILCS 635/6-1
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VI - Enforcement Powers

 (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 other powers granted under this Act as are necessary  and proper to carrying out the purposes and provisions of this Act.    (Source: P.A. 87-1098.)
205 ILCS 635/6-3
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VI - Enforcement Powers

(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 with this Act or other unsafe and unsound practices, the Commissioner  shall request the Attorney General of this State to petition the Circuit Court  of Cook County, or of the county in which the licensee is located, to appoint a  receiver or conservator for purposes of protecting consumers and resolving the  affairs of the licensee.    (Source: P.A. 87-1098.)
205 ILCS 635/Art. VII heading
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VII - Mortgage Loan Originator License Required

 ARTICLE VII. MORTGAGE LOAN ORIGINATOR LICENSE REQUIRED     (Source: P.A. 96-112, eff. 7-31-09.)
205 ILCS 635/7-1
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VII - Mortgage Loan Originator License Required

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 635/7-1A
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VII - Mortgage Loan Originator License Required

Sec. 7-1A. Mortgage loan originator license.(a)  It is unlawful for any individual to act or assume to act as a mortgage loan originator, as defined in subsection (jj) of Section 1-4 of this Act, without obtaining a license from the Director, unless the individual is exempt under subsection (c) of this Section. It is unlawful for any individual who holds a mortgage loan originator license to provide short sale facilitation services unless he or she holds a license under the Real Estate License Act of 2000.  Each licensed mortgage loan originator must register with and maintain a valid unique identifier issued by the Nationwide Multistate Licensing System and Registry.(b) (Blank).(c)  The following, when engaged in the following activities, are exempt from this Act:(1)  Registered mortgage loan originators, when     acting for an entity described in subsection (tt) of Section 1-4.(2)  Any individual who offers or negotiates terms of     a residential mortgage loan with or on behalf of an immediate family member of the individual.(3)  Any individual who offers or negotiates terms of     a residential mortgage loan secured by a dwelling that served as the individual's residence.(4)  A licensed attorney who negotiates the terms of     a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, a mortgage broker, or other mortgage loan originator or by any agent of a lender, mortgage broker, or other mortgage loan originator.(5) Any individual described in paragraph (2.2) of     subsection (d) of Section 1-4.(d) A loan processor or underwriter who is an independent contractor may not engage in the activities of a loan processor or underwriter unless he or she obtains and maintains a license under subsection (a) of this Section.  Each independent contractor loan processor or underwriter licensed as a mortgage loan originator must have and maintain a valid unique identifier issued by the Nationwide Multistate Licensing System and Registry.(e) For the purposes of implementing an orderly and efficient licensing process, the Director may establish licensing rules or regulations and interim procedures for licensing and acceptance of applications.  For previously registered or licensed individuals, the Director may establish expedited review and licensing procedures.   (Source: P.A. 100-1153, eff. 12-19-18.)
205 ILCS 635/7-2
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VII - Mortgage Loan Originator License Required

Sec. 7-2. State license application and issuance.(a) Applicants for a license shall apply in a form prescribed by the Director.  Each form shall contain content as set forth by rule, regulation, instruction, or procedure of the Director and may be changed or updated as necessary by the Director in order to carry out the purposes of this Act.(b) In order to fulfill the purposes of this Act, the Director is authorized to establish relationships or contracts with the Nationwide Multistate Licensing System and Registry or other entities designated by the Nationwide Multistate Licensing System and Registry to collect and maintain records and process transaction fees or other fees related to licensees or other persons subject to this Act.(c) In connection with an application for licensing as a mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide Multistate Licensing System and Registry information concerning the applicant's identity, including the following:(1) Fingerprints for submission to the Federal Bureau     of Investigation, and any governmental agency or entity authorized to receive such information for a state, national and international criminal history background check.(2) Personal history and experience in a form     prescribed by the Nationwide Multistate Licensing System and Registry, including the submission of authorization for the Nationwide Multistate Licensing System and Registry and the Director to obtain:(A) an independent credit report obtained from a         consumer reporting agency described in Section 603(p) of the Fair Credit Reporting Act; and(B) information related to any administrative,         civil, or criminal findings by any governmental jurisdiction.(d) For the purpose of this Section, and in order to reduce the points of contact which the Federal Bureau of Investigation may have to maintain for purposes of subsection (c) of this Section, the Director may use the Nationwide Multistate Licensing System and Registry as a channeling agent  for requesting information from and distributing information to the Department of Justice or any governmental agency.(e) For the purposes of this Section and in order to reduce the points of contact which the Director may have to maintain for purposes of item (2) of subsection (c) of this Section, the Director may use the Nationwide Multistate Licensing System and Registry as a channeling agent for requesting and distributing information to and from any source so directed by the Director.   (Source: P.A. 100-1153, eff. 12-19-18.)
205 ILCS 635/7-3
2021 Illinois Compiled Statutes|Chapter 205 - FINANCIAL REGULATION|205 ILCS 635/ - Residential Mortgage License Act of 1987.|Article VII - Mortgage Loan Originator License Required

Sec. 7-3. Issuance of license. The Director shall not issue a mortgage loan originator license unless the Director makes at a minimum the following findings:(1) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, except that a subsequent formal vacation of such revocation shall not be deemed a revocation.(2) The applicant has not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic, foreign, or military court:(A)  during the 7-year period preceding the date of     the application for licensing and registration; or(B)  at any time preceding such date of application,     if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering;provided that any pardon of a conviction shall not be a conviction for purposes of this item (2).(3) The applicant has demonstrated financial responsibility, character, and general fitness so as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this Act. For purposes of this item (3)  a person has shown that he or she is not financially responsible when he or she has shown a disregard for the management of his or her own financial condition.  A determination that an individual has not shown financial responsibility may include, but is not limited to, consideration of:(A)  current outstanding judgments, except judgments     solely as a result of medical expenses;(B)  current outstanding tax liens or other     government liens and filings, educational loan defaults, and non-payment of child support;(C)  foreclosures within the past 3 years;(D)  a pattern of seriously delinquent accounts     within the past 3 years; and(E) an independent credit report obtained under     Section 7-2(c)(2) of the Act; provided that, a credit score may not be the sole basis for determining that an individual has not shown financial responsibility; provided further that, the credit report may be the sole basis for determining that an individual has not shown financial responsibility.(4) The applicant has completed the pre-licensing education requirement described in Section 7-4 of this Act.(5) The applicant has passed a written test that meets the test requirement described in Section 7-5 of this Act.(6) The applicant has met the surety bond requirement as required pursuant to Section 7-12 of this Act.   (Source: P.A. 96-112, eff. 7-31-09.)