2023 Illinois Compiled Statutes › Chapter 225 - PROFESSIONS, OCCUPATIONS, AND BUSINESS OPERATIONS › 225 ILCS 459/ - Appraisal Management Company Registration Act.

(225 ILCS 459/1)
Sec. 1. Short title. This Act may be cited as the Appraisal Management Company  Registration Act.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/5)
Sec. 5. Findings.   The General Assembly finds that: It is the intent of the General Assembly that this Act provide for the regulation of those persons or entities engaged as appraisal management companies for the protection of the public and for the maintenance of high standards of professional conduct by those  registered as appraisal  management companies in one to four family real estate transactions and to ensure appraisal independence in the determination of real estate valuations.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/10)
Sec. 10. Definitions.  In this Act:
"Address of record" means the principal address recorded by the Department in the applicant's or registrant's application file or registration file maintained by the Department's registration maintenance unit.
"Applicant" means a person or entity who applies to the Department for a registration under this Act.
"Appraisal" means (noun) the act or process of developing an opinion of value; an opinion of value (adjective) of or pertaining to appraising and related functions.
"Appraisal firm" means an appraisal entity that is 100% owned and controlled by a person or persons licensed in Illinois as a certified general real estate appraiser or a certified residential real estate appraiser. An appraisal firm does not include an appraisal management company.
"Appraisal management company" means any corporation, limited liability company, partnership, sole proprietorship, subsidiary, unit, or other business entity that directly or indirectly: (1) provides appraisal management services to creditors or secondary mortgage market participants, including affiliates; (2) provides appraisal management services in connection with valuing the consumer's principal dwelling as security for a consumer credit transaction (including consumer credit transactions incorporated into securitizations); and (3) any appraisal management company that, within a given 12-month period, oversees an appraiser panel of 16 or more State-certified appraisers in Illinois or 25 or more State-certified or State-licensed appraisers in 2 or more jurisdictions. "Appraisal management company" includes a hybrid entity.
"Appraisal management company national registry fee" means the fee implemented pursuant to Title XI of the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989 for an appraiser management company's national registry.
"Appraisal management services" means one or more of the following:
(1) recruiting, selecting, and retaining appraisers;
(2) contracting with State-certified or     State-licensed appraisers to perform appraisal assignments;
(3) managing the process of having an appraisal     performed, including providing administrative services such as receiving appraisal orders and appraisal reports; submitting completed appraisal reports to creditors and secondary market participants; collecting compensation from creditors, underwriters, or secondary market participants for services provided; or paying appraisers for services performed; or
(4) reviewing and verifying the work of appraisers.
"Appraiser panel" means a network, list, or roster of licensed or certified appraisers approved by the appraisal management company or by the end-user client to perform appraisals as independent contractors for the appraisal management company. "Appraiser panel" includes both appraisers accepted by an appraisal management company for consideration for future appraisal assignments and appraisers engaged by an appraisal management company to perform one or more appraisals. For the purposes of determining the size of an appraiser panel, only independent contractors of hybrid entities shall be counted towards the appraiser panel.
"Appraiser panel fee" means the amount collected from a registrant that, where applicable, includes an appraisal management company's national registry fee.
"Appraisal report" means a written appraisal by an appraiser to a client.
"Appraisal practice service" means valuation services performed by an individual acting as an appraiser, including, but not limited to, appraisal or appraisal review.
"Appraisal subcommittee" means the appraisal subcommittee of the Federal Financial Institutions Examination Council as established by Title XI.
"Appraiser" means a person who performs real estate or real property appraisals.
"Assignment result" means an appraiser's opinions and conclusions developed specific to an assignment.
"Audit" includes, but is not limited to, an annual or special audit, visit, or review necessary under this Act or required by the Secretary or the Secretary's authorized representative in carrying out the duties and responsibilities under this Act.
"Client" means the party or parties who engage an appraiser by employment or contract in a specific appraisal assignment.
"Controlling person" means:
(1) an owner, officer, or director of an entity     seeking to offer appraisal management services;
(2) an individual employed, appointed, or authorized     by an appraisal management company who has the authority to:
(A) enter into a contractual relationship with a         client for the performance of an appraisal management service or appraisal practice service; and
(B) enter into an agreement with an appraiser for         the performance of a real estate appraisal activity;
(3) an individual who possesses, directly or     indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company; or
(4) an individual who will act as the sole compliance     officer with regard to this Act and any rules adopted under this Act.
"Covered transaction" means a consumer credit transaction secured by a consumer's principal dwelling.
"Department" means the Department of Financial and Professional Regulation.
"Email address of record" means the designated email address recorded by the Department in the applicant's application file or the registrant's registration file maintained by the Department's registration maintenance unit.
"Entity" means a corporation, a limited liability company, partnership, a sole proprietorship, or other entity providing services or holding itself out to provide services as an appraisal management company or an appraisal management service.
"End-user client" means any person who utilizes or engages the services of an appraiser through an appraisal management company.
"Federally regulated appraisal management company" means an appraisal management company that is owned and controlled by an insured depository institution, as defined in 12 U.S.C. 1813, or an insured credit union, as defined in 12 U.S.C. 1752, and regulated by the Office of the Comptroller of the Currency, the Federal Reserve Board, the National Credit Union Association, or the Federal Deposit Insurance Corporation.
"Financial institution" means any bank, savings bank, savings and loan association, credit union, mortgage broker, mortgage banker, registrant under the Consumer Installment Loan Act or the Sales Finance Agency Act, or a corporate fiduciary, subsidiary, affiliate, parent company, or holding company of any registrant, or any institution involved in real estate financing that is regulated by State or federal law.
"Foreign appraisal management company" means any appraisal management company organized under the laws of any other state of the United States, the District of Columbia, or any other jurisdiction of the United States.
"Hybrid entity" means an appraisal management company that hires an appraiser as an employee to perform an appraisal and engages an independent contractor to perform an appraisal.
"Multi-state licensing system" means a web-based platform that allows an applicant to submit the application or registration renewal to the Department online.
"Person" means individuals, entities, sole proprietorships, corporations, limited liability companies, and alien, foreign, or domestic partnerships, except that when the context otherwise requires, the term may refer to a single individual or other described entity.
"Principal dwelling" means a residential structure that contains one to 4 units, whether or not that structure is attached to real property. "Principal dwelling" includes an individual condominium unit, cooperative unit, manufactured home, mobile home, and trailer, if it is used as a residence.
"Principal office" means the actual, physical business address, which shall not be a post office box or a virtual business address, of a registrant, at which (i) the Department may contact the registrant and (ii) records required under this Act are maintained.
"Qualified to transact business in this State" means being in compliance with the requirements of the Business Corporation Act of 1983.
"Quality control review" means a review of an appraisal report for compliance and completeness, including grammatical, typographical, or other similar errors, unrelated to developing an opinion of value.
"Real estate" means an identified parcel or tract of land, including any improvements.
"Real estate related financial transaction" means any transaction involving:
(1) the sale, lease, purchase, investment in, or     exchange of real property,  including interests in property or the financing thereof;
(2) the refinancing of real property or interests in     real property; and
(3) the use of real property or interest in property     as security for a loan or  investment, including mortgage backed securities.
"Real property" means the interests, benefits, and rights inherent in the ownership of real estate.
"Secretary" means the Secretary of Financial and Professional Regulation.
"USPAP" means the Uniform Standards of Professional Appraisal Practice as adopted by the Appraisal Standards Board under Title XI.
"Valuation" means any estimate of the value of real property in connection with a creditor's decision to provide credit, including those values developed under a policy of a government sponsored enterprise or by an automated valuation model or other methodology or mechanism.
"Written notice" means a communication transmitted by mail or by electronic means that can be verified between an appraisal management company and a licensed or certified real estate appraiser.
(Source: P.A. 102-20, eff. 1-1-22; 102-687, eff. 12-17-21.)
(225 ILCS 459/15)
Sec. 15. Exemptions.
(a) Nothing in this Act shall apply to any of the following:
(1)    an agency of the federal, State, county, or     municipal government or an officer or employee of a government agency, or person, described in this Section when acting within the scope of employment of the officer or employee;
(2)   a corporate relocation company when the     appraisal is not used for mortgage purposes and the end user client is an employer company;
(3)    any person licensed in this State under any     other Act while engaged in the activities or practice for which he or she is licensed;
(4)  any person licensed to practice law in this     State who is working with or on behalf of a client of that person in connection with one or more appraisals for that client;
(5)  an appraiser that enters into an agreement,     whether written or otherwise, with another appraiser for the performance of an appraisal, and upon the completion of the appraisal, the report of the appraiser performing the appraisal is signed by both the appraiser who completed the appraisal and the appraiser who requested the completion of the appraisal, except that an appraisal management company may not avoid the requirement of registration under this Act by requiring an employee of the appraisal management company who is an appraiser to sign an appraisal that was completed by another appraiser who is part of the appraisal panel of the appraisal management company;
(6) any person acting as an agent of the Illinois     Department of Transportation in the acquisition or relinquishment of land for transportation issues to the extent of their contract scope;
(7) a design professional entity when the appraisal     is not used for mortgage purposes and the end user client is an agency of State government or a unit of local government;
(8)    an appraiser firm whose ownership is     appropriately certified under the Real Estate Appraiser Licensing Act of 2002;
(9)   an appraisal management company solely engaged     in non-residential appraisal management services; or
(10) a department or division of an entity that     provides appraisal management services only to that entity.
(b)   A federally regulated appraisal management company shall register with the Department for the sole purpose of collecting required information for, and to pay all fees associated with, the State of Illinois' obligation to register the federally regulated appraisal management company with the Appraisal Management Companies National Registry, but the federally regulated appraisal management company is otherwise exempt from all other provisions in this Act.
(c) In the event that the Final Interim Rule of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act provides that an appraisal management company is a subsidiary owned and controlled by a financial institution regulated by a federal financial institution's regulatory agency and is exempt from State appraisal management company registration requirements, the Department, shall, by rule, provide for the implementation of such an exemption.
(Source: P.A. 102-20, eff. 1-1-22.)
(225 ILCS 459/17)
Sec. 17. Address of record; email address of record. All applicants and registrants shall:
(1) provide a valid address and email address to the      Department, which shall serve as the address of record and email address of record, respectively, at the time of application for registration or renewal of a registration; and
(2) inform the Department of any change of address of      record or email address of record within 14 days after such change either through the Department's website or through a multi-state registration system as designated by the Secretary.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/20)
Sec. 20. Restrictions and limitations.   Beginning January 1, 2012, it is unlawful for a person or entity to act or assume to act as an appraisal management company as defined in this Act, to engage in the business of appraisal management service, or to advertise or hold himself or herself out to be a registered appraisal management company without first obtaining a registration issued by the Department under this Act. A person or entity that violates this Section is guilty of a Class A misdemeanor for the first offense and a Class 4 felony for second and subsequent offenses.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/25)
Sec. 25. Powers and duties of the Department.   Subject to the provisions of this Act:
(1)    The Department may ascertain the     qualifications and fitness of applicants for registration and pass upon the qualifications of applicants for registration.
(2)    The Department may conduct hearings on     proceedings to refuse to issue or renew or to revoke registrations or suspend, place on probation, or reprimand persons or otherwise discipline individuals or entities subject to this Act.
(3)    The Department may adopt all rules required     for the administration of this Act.
(4)    The Department may maintain rosters of the     names and addresses of all registrants, and all persons whose registrations have been suspended, revoked, or denied renewal for cause within the previous calendar year or otherwise disciplined pursuant to this Act and shall transmit the roster, along with any national registry fees obtained by it, to the entity specified by and in a manner consistent with Title XI of the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/30)
Sec. 30. Coordinator of Appraisal Management Company Registration.  The Coordinator of Real Estate Appraisal shall serve as the Coordinator of Appraisal Management Company Registration. The Coordinator shall have the same duties and responsibilities in regards to appraisal management company registration as the Coordinator has in regards to appraisal licensure as set forth in the Real Estate Appraiser Licensing Act of 2002.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/32)
Sec. 32. Multi-state licensing system. The Secretary may require participation in a third-party, multi-state licensing system for registration under this Act. The multi-state licensing system may share regulatory information and maintain records in compliance with the provisions of this Act. The multi-state licensing system may charge the applicant an administration fee.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/35)
Sec. 35. Application for original registration.   Applications for original registration shall be made to the Department on forms prescribed by the Department, or through a multi-state licensing system as designated by the Secretary, and accompanied by the required fee.  All applications shall contain the information that, in the judgment of the Department, will enable the Department to pass on the qualifications of the applicant to be registered to practice as set by rule.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/37)
Sec. 37. Transferability; assignability. A registration, when issued for an appraisal management company, shall state the name of the registrant and the address of the principal office. The registration is not transferable or assignable.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/40)
Sec. 40. Qualifications for registration.
(a)    The Department may issue a certification of registration to practice under this Act  to any applicant who is qualified to do business in this State and applies to the Department on forms provided by the Department, or through a multi-state licensing system as designated by the Secretary, pays the required non-refundable fees, is  qualified to transact business in this State, and provides the following:
(1) the business name of the applicant seeking     registration;
(2) the business address or addresses and contact     information of the applicant seeking registration;
(3) if the business applicant is not a corporation     that is domiciled in this State, then the name and contact information for the company's agent for service of process in this State;
(4) the name, address, and contact information for     any individual or any corporation, partnership, limited liability company, association, or other business applicant that owns 10% or more of the appraisal management company;
(5) the name, address, and contact information for a     designated controlling person;
(6) a certification that the applicant will utilize     Illinois licensed appraisers to provide appraisal services within the State of Illinois;
(7) a certification that the applicant has a system     in place utilizing a licensed Illinois appraiser to review the work of all employed and independent appraisers that are performing real estate appraisal services in Illinois for the appraisal management company on a periodic basis, except for a quality control review, to verify that the real estate appraisal assignments are being conducted in accordance with USPAP;
(8) a certification that the applicant maintains a     detailed record of each service request that it receives and the independent appraiser that performs the  real estate appraisal services for the appraisal management company;
(9) a certification that the employees of the     appraisal management company working on behalf of the appraisal management company directly involved in providing appraisal management services, will be appropriately trained and familiar with the appraisal process to completely provide appraisal management services;
(10) an irrevocable Uniform Consent to Service of     Process, under rule; and
(11) a certification that the applicant shall comply     with all other requirements of this Act and rules established for the implementation of this Act.
(b) Applicants have 3 years from the date of application to complete the application process. If the process has not been completed in 3 years, the application shall be denied, the fee shall be forfeited, and the applicant must reapply and meet the requirements in effect at the time of reapplication.
(Source: P.A. 102-970, eff. 5-27-22.)
(225 ILCS 459/43)
Sec. 43. Application denial. If an application is denied, the applicant may, within 20 days after the date of the notice of denial, make a written request to the Secretary for a hearing on the application, and the Secretary shall set a time and place for the hearing. The hearing shall be set for a date after the receipt by the Secretary of the request for hearing, and notice of the time and place of the hearing shall be communicated to the applicant at least 10 days before the date of the hearing. The applicant shall pay the actual cost of making the transcript of the hearing before the Secretary issues his or her decision following the hearing. If, following the hearing, the application is denied, the Secretary shall prepare and keep on file in his or her office a written order of denial thereof that shall contain his or her findings and the reasons supporting the denial and shall communicate a copy to the applicant in a manner prescribed by the Department. A decision may be reviewed as provided in Section 135.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/45)
Sec. 45. Expiration and renewal of registration.   The expiration date and renewal period for each registration shall be set by rule.  A registrant whose registration has expired may reinstate his or her registration at any time within 5 years after the expiration thereof, by making a renewal application and by paying the required fee.
Any registrant  whose registration has expired for more than 5 years may have it restored by making application to the Department, paying the required fee, and filing acceptable proof of fitness to have the registration restored as set by rule.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/47)
Sec. 47. Report; investigation; costs. Each registrant shall provide information as the Secretary may reasonably require concerning, and for the purpose of examination for compliance with federal and State regulations, the business and operations of each registered appraisal management company conducted by the registrant within the State. The Secretary may, at any time, examine the books and records of an appraisal management company operating in the State and require the appraisal management company to submit reports, information and documents. The Secretary may, at any time, investigate a registrant and every person, partnership, association, limited liability company, corporation, or other business entity who or which is engaged in the business of operating an appraisal management company. For that purpose, the Secretary shall have free access to the offices and places of business and to records of all persons, firms, partnerships, associations, limited liability companies and members thereof, and corporations and to the officers and directors thereof that relate to the appraisal management company. The investigation may be conducted in conjunction with representatives of other State agencies or agencies of another state or of the United States as determined by the Secretary. The Secretary may require by subpoena the attendance of and examine under oath all persons whose testimony the Secretary may require relative to the appraisal management company, and, in those cases, the Secretary, or a designee of the Secretary, may administer oaths to all persons called as witnesses, and the Secretary, or a  representative of the Secretary, may conduct an audit, and there shall be paid to the Secretary for each audit a fee, to be established by rule, for each day or part thereof for each  representative designated and required to conduct the audit.
(Source: P.A. 102-970, eff. 5-27-22.)
(225 ILCS 459/50)
Sec. 50. Bonds of registrants.   All registrants shall maintain a bond in accordance with this Section. Each bond shall be for the recovery of expenses, fines, or fees due to or levied by the Department in accordance with this Act. The bond shall be payable when the registrant fails to comply with any provisions of this Act and shall be in the form of a surety bond in the amount of $25,000 as prescribed by the Department by rule. The bond shall be payable to the Department and shall be issued by an insurance company authorized to do business in this State. A copy of the bond, including any and all riders and endorsements executed subsequent to the effective date of the bond, shall be placed on file with the Department within 10 days of the execution thereof. The bond may only be used for the recovery of expenses or the collection of fines or fees due to or levied by the Department and is not to be utilized for any other purpose.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/55)
Sec. 55. Fees.
(a)    The fees for the administration and enforcement of this Act, including, but not limited to, original registration fees, renewal fees, appraiser panel fees, appraiser management company national registry fees, and restoration fees, shall be set by the Department by rule.  The fees shall not be refundable.
(b)    All fees and other moneys collected under this Act shall be deposited in the Appraisal Administration Fund, except as provided in subsection (d) of this Section.
(c) The Department shall establish by rule a process for calculating, collecting, and paying appraiser panel fees and, where applicable, appraiser management company national registry fees in a manner consistent with Title XI of the federal Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
(d)   The administration fee charged by the multi-state licensing system shall be paid directly to the multi-state licensing system.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/60)
Sec. 60. Returned checks; fines.   Any person who delivers a check or other payment to the Department that is returned to the Department unpaid by the financial institution upon which it is drawn shall pay to the Department, in addition to the amount already owed to the Department, a fine of $50.  The fines imposed by this Section are in addition to any other discipline provided under this Act for unregistered practice or practice on a nonrenewed registration.  The Department shall notify the person that payment of fees and fines shall be paid to the Department by certified check or money order within 30 calendar days of the notification.  If, after the expiration of 30 days after the date of the notification, the person has failed to submit the necessary remittance, the Department shall automatically terminate the registration or deny the application, without hearing.  If, after termination or denial, the person seeks a registration, he or she shall apply to the Department for restoration or issuance of the registration and pay all fees and fines due to the Department.  The Department may establish a fee for the processing of an application for restoration of a registration to pay all expenses of processing this application.  The Secretary may waive the fines due under this Section in individual cases where the Secretary finds that the fines would be unreasonable or unnecessarily burdensome.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/65)
Sec. 65. Disciplinary actions.
(a)    The Department may refuse to issue or renew, or may revoke, suspend, place on probation, reprimand, or take other disciplinary or non-disciplinary action as the Department may deem appropriate, including imposing fines not to exceed $25,000 for each violation upon any registrant or applicant under this Act or entity who holds oneself or itself out as an applicant or registrant for any one or combination of the following:
(1)    Material misstatement in furnishing     information to the Department.
(2)    Violations of this Act, or of the rules     adopted under this Act.
(3)   Conviction of, or entry of a plea of guilty or     nolo contendere to any crime that is a felony under the laws of the United States or any state or territory thereof or that is a misdemeanor of which an essential element is dishonesty, or any crime that is directly related to the practice of the profession.
(4)    Making any misrepresentation for the purpose     of obtaining registration or violating any provision of this Act or the rules adopted under this Act pertaining to advertising.
(5)    Professional incompetence.
(6)    Gross malpractice.
(7)    Aiding or assisting another person in     violating any provision of this Act or rules adopted under this Act.
(8)    Failing, within 30 days after requested, to     provide information in response to a written request made by the Department.
(9)    Engaging in dishonorable, unethical, or     unprofessional conduct of a character likely to deceive, defraud, or harm the public.
(10)   Discipline by another state, District of     Columbia, territory, or foreign nation, if at least one of the grounds for the discipline is the same or substantially equivalent to those set forth in this Section.
(11)   A finding by the Department that the     registrant, after having the registrant's registration placed on probationary status, has violated the terms of probation.
(12)   Willfully making or filing false records or     reports in the registrant's practice, including, but not limited to, false records filed with State agencies or departments.
(13)   Filing false statements for collection of fees     for which services are not rendered.
(14)   Practicing under a false or, except as     provided by law, an assumed name.
(15)   Fraud or misrepresentation in applying for, or     procuring, a registration under this Act or in connection with applying for renewal of a registration under this Act.
(16)   Being adjudicated liable in a civil proceeding     for violation of a state or federal fair housing law.
(17)  Failure to obtain or maintain the bond required     under Section 50 of this Act.
(18) Failure to pay appraiser panel fees or      appraisal management company national registry fees.
(19)   Violating the terms of any order issued by the     Department.
(b)    The Department may refuse to issue or may suspend without hearing as provided for in the Civil Administrative Code of Illinois the registration of any person who fails to file a return, or to pay the tax, penalty, or interest shown in a filed return, or to pay any final assessment of the tax, penalty, or interest as required by any tax Act administered by the Illinois Department of Revenue, until such time as the requirements of any such tax Act are satisfied.
(c) An appraisal management company shall not be registered or included on the national registry if the company, in whole or in part, directly or indirectly, is owned by a person who has had an appraiser license or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked under the Real Estate Appraiser Licensing Act of 2002 or the rules adopted under that Act, or similar discipline by another state, the District of Columbia, a territory, a foreign nation, a governmental agency, or an entity authorized to impose discipline if at least one of the grounds for that discipline is the same as or the equivalent of one of the grounds for which a licensee may be disciplined as set forth under this Section.
(Source: P.A. 103-236, eff. 1-1-24.)
(225 ILCS 459/67)
Sec. 67. Good moral character. If an applicant, registrant, controlling person, or any person with ownership interest in the applicant or registrant, has had a license or registration revoked on a prior occasion, has been found to have committed any of the practices enumerated in Section 65, has been convicted of or entered a plea of guilty or nolo contendere to forgery, embezzlement, obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or a similar offense or offenses, or has been convicted of a felony involving moral turpitude in a court of competent jurisdiction in this State or any other state, district, or territory of the United States or of a foreign country, the Department may consider the prior revocation, conduct, or conviction in its determination of moral character of the applicant, registrant, controlling person, or person with ownership interest and whether to grant the registration or renewal. In its consideration of the prior revocation, conduct, or conviction, the Department shall take into account the nature of the conduct, any aggravating or extenuating circumstances, the time elapsed since the revocation, conduct, or conviction, the rehabilitation or restitution performed, and any other factors that the Department deems relevant. When an applicant, registrant, controlling person, or person with ownership interest has made a false statement of material fact on any application, the false statement may in itself be sufficient grounds to revoke or refuse to issue or renew a registration.
(Source: P.A. 102-970, eff. 5-27-22.)
(225 ILCS 459/68)
Sec. 68. (Repealed).
(Source: P.A. 102-538, eff. 8-20-21. Repealed by P.A. 102-970, eff. 5-27-22.)
(225 ILCS 459/70)
Sec. 70. Injunctive action; cease and desist order.
(a)    If any person violates the provisions of this Act, the Secretary, in the name of the People of the State of Illinois, through the Attorney General or the State's Attorney of the county in which the violation is alleged to have occurred, may petition for an order enjoining the violation or for an order enforcing compliance with this Act.  Upon the filing of a verified petition, the court with appropriate jurisdiction may issue a temporary restraining order, without notice or bond, and may preliminarily and permanently enjoin the violation.  If it is established that the person has violated or is violating the injunction, the court may punish the offender for contempt of court.  Proceedings under this Section are in addition to, and not in lieu of, all other remedies and penalties provided by this Act.
(b)    Whenever, in the opinion of the Department, a person violates any provision of this Act, the Department may issue a rule to show cause why an order to cease and desist should not be entered against that person.  The rule shall clearly set forth the grounds relied upon by the Department and shall allow at least 7 days from the date of the rule to file an answer satisfactory to the Department.  Failure to answer to the satisfaction of the Department shall cause an order to cease and desist to be issued.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/75)
Sec. 75. Investigations; notice and hearing. The Department may investigate the actions of any person who is an applicant or of any person or persons rendering or offering to render any services requiring registration under this Act or any person holding or claiming to hold a registration as an appraisal management company. The Department shall, before revoking, suspending, placing on probation, reprimanding, or taking any other disciplinary or non-disciplinary action under Section 65 of this Act, at least 30 days before the date set for the hearing, (i) notify the person charged in writing of the charges made and the time and place for the hearing on the charges, (ii) direct the person to file a written answer to the charges with the Department under oath within 20 days after service of the notice, and (iii) inform the person that, if the person fails to answer, default will be entered or that the person's registration may be suspended, revoked, placed on probationary status, or other disciplinary action taken with regard to the registration, including limiting the scope, nature, or extent of the person's practice, as the Department may consider proper. At the time and place fixed in the notice, the Department shall proceed to hear the charges and the parties or their counsel shall be accorded ample opportunity to present any pertinent statements, testimony, evidence, and arguments. The Department may continue the hearing from time to time. In case the person, after receiving the notice, fails to file an answer, the person's registration may, in the discretion of the Department, be suspended, revoked, placed on probationary status, or the Department may take whatever disciplinary action considered proper, including limiting the scope, nature, or extent of the person's practice or the imposition of a fine, without a hearing, if the act or acts charged constitute sufficient grounds for that action under this Act. The written notice may be served by certified mail or electronic mail to the last address of record or email address of record as provided to the Department or, if in the course of the administrative proceeding the party has previously designated a specific email address at which to accept electronic service for that specific proceeding, by sending a copy by email to the party's email address on record.
(Source: P.A. 103-236, eff. 1-1-24.)
(225 ILCS 459/80)
Sec. 80. Record of proceedings; transcript. The Department, at its expense, shall preserve a record of all proceedings at the formal hearing of any case.  The notice of hearing, complaint, all other documents in the nature of pleadings, written motions filed in the proceedings, the transcripts of testimony, the report of the hearing officer, and orders of the Department shall be in the record of the proceeding.  The Department shall furnish a transcript of the record to any person interested in the hearing upon payment of the fee required under Section 2105-115 of the Department of Professional Regulation Law.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/85)
Sec. 85. Subpoenas; depositions; oaths.   The Department has the power to subpoena documents, books, records, or other materials and to bring before it any person and to take testimony either orally or by deposition, or both, with the same fees and mileage and in the same manner as prescribed in civil cases in the courts of this State.
The Secretary and the designated hearing officer have the power to administer oaths to witnesses at any hearing that the Department is authorized to conduct, and any other oaths authorized in any Act administered by the Department.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/90)
Sec. 90. Compelling testimony.   Any circuit court, upon application of the Department or designated hearing officer may enter an order requiring the attendance of witnesses and their testimony, and the production of documents, papers, files, books, and records in connection with any  hearing or investigation.  The court may compel obedience to its order by proceedings for contempt.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/95)
Sec. 95. Findings and recommendations.   At the conclusion of the hearing, the designated hearing officer shall present to the Secretary a written report of findings of fact, conclusions of law, and recommendations.  The report shall contain a finding whether or not the person charged violated this Act or its rules or failed to comply with the conditions required in this Act or its rules.  The hearing officer shall specify the nature of any violations or failure to comply and shall make recommendations to the Secretary.  In making recommendations for any disciplinary actions, the hearing officer may take into consideration all facts and circumstances bearing upon the reasonableness of the conduct of the person charged and the potential for future harm to the public, including, but not limited to, previous discipline by the Department, intent, degree of harm to the public and likelihood of harm in the future, any restitution made, and whether the incident or incidents contained in the complaint appear to be isolated or represent a continuing pattern of conduct.  In making recommendations for discipline, the hearing officer shall endeavor to ensure that the severity of the discipline recommended is reasonably related to the severity of the violation.

The report of findings of fact, conclusions of law, and recommendation of the hearing officer shall be the basis for the Department's order refusing to issue, restore, or renew a registration, or otherwise disciplining a person.  If the Secretary disagrees with the recommendations of the hearing officer, the Secretary may issue an order in contravention of the hearing officer recommendations.  The finding is not admissible in evidence against the person in a criminal prosecution brought for a violation of this Act, but the hearing and finding are not a bar to a criminal prosecution brought for a violation of this Act.
(Source: P.A. 103-236, eff. 1-1-24.)
(225 ILCS 459/100)
Sec. 100. Hearing officer; rehearing.   At the conclusion of the hearing, a copy of the hearing officer's report shall be served upon the applicant or registrant by the Department, either personally or as provided in this Act for the service of a notice of hearing.  Within 20 days after service, the applicant or registrant may present to the Department a motion in writing for a rehearing, which shall specify the particular grounds for rehearing.  The Department may respond to the motion for rehearing within 20 days after its service on the Department.  If no motion for rehearing is filed, then upon the expiration of the time specified for filing such a motion, or if a motion for rehearing is denied, then upon denial, the Secretary may enter an order in accordance with recommendations of the hearing officer except as provided in Section 105 or 110 of this Act.  If the applicant or registrant orders from the reporting service and pays for a transcript of the record within the time for filing a motion for rehearing, the 20-day period within which a motion may be filed shall commence upon the delivery of the transcript to the applicant or registrant.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/105)
Sec. 105. Secretary; rehearing.   Whenever the Secretary believes that substantial justice has not been done in the revocation, suspension, or refusal to issue, restore, or renew a registration, or other discipline of an applicant or registrant, he or she may order a rehearing by the same or other hearing officers.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/110)
Sec. 110. Appointment of a hearing officer.   The Secretary has the authority to appoint any attorney licensed to practice law in the State to serve as the hearing officer in any action for refusal to issue, restore, or renew a registration or to discipline a registrant.  The hearing officer has full authority to conduct the hearing.    The hearing officer shall report his or her findings of fact, conclusions of law, and recommendations to the Secretary.  If the Secretary disagrees with the recommendation of the hearing officer, the Secretary may issue an order in contravention of the recommendation.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/115)
Sec. 115. Order or certified copy; prima facie proof.   An order or certified copy thereof, over the seal of the Department and purporting to be signed by the Secretary, is prima facie proof that:
(1)    the signature is the genuine signature of the     Secretary; and
(2)    the Secretary is duly appointed and qualified.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/120)
Sec. 120. Restoration of suspended or revoked registration.   At any time after the successful completion of a term of suspension or revocation of a registration, the Department may restore it to the registrant, upon the written recommendation of the hearing officer, unless after an investigation and a hearing the Secretary determines that restoration is not in the public interest.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/125)
Sec. 125. Surrender of registration.   Upon the revocation or suspension of a registration, the registrant shall immediately surrender his or her registration to the Department.  If the registrant fails to do so, the Department has the right to seize the registration.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/130)
Sec. 130. Summary suspension of a registration.   The Secretary may summarily suspend the registration of any registrant under this Act without a hearing, simultaneously with the institution of proceedings for a hearing provided for in Section 75 of this Act, if the Secretary finds that evidence in the Secretary's possession indicates that the continuation of practice by the registrant would constitute an imminent danger to the public.  In the event that the Secretary summarily suspends the registration of a registrant under this Section without a hearing, a hearing must be commenced within 30 days after the suspension has occurred and concluded as expeditiously as practical.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/135)
Sec. 135. Administrative review; venue.
(a)    All final administrative decisions of the Department are subject to judicial review under the Administrative Review Law and its rules.  The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.
(b)    Proceedings for judicial review shall be commenced in the circuit court of the county in which the party applying for review resides, but if the party is not a resident of Illinois, the venue shall be in Sangamon County.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/140)
Sec. 140. Certifications of record; costs.   The Department shall not be required to certify any record to the court, to file an answer in court, or to otherwise appear in any court in a judicial review proceeding unless and until the Department has received from the plaintiff payment of the costs of furnishing and certifying the record, which costs shall be determined by the Department.  Failure on the part of the plaintiff to file the receipt in court is grounds for dismissal of the action.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/145)
Sec. 145. Violations.    Any person who is found to have violated any provision of this Act is guilty of a Class A misdemeanor. On conviction of a second or subsequent offense, the violator is guilty of a Class 4 felony.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/150)
Sec. 150. Civil penalties.
(a)    In addition to any other penalty provided by law, any person who violates this Act shall forfeit and pay a civil penalty to the Department in an amount not to exceed $25,000 for each violation as determined by the Department.  The civil penalty shall be assessed by the Department in accordance with the provisions of this Act.
(b)    The Department has the authority and power to investigate any and all unregistered activity.
(c)    The civil penalty shall be paid within 60 days after the effective date of the order imposing the civil penalty.  The order shall constitute a judgment and may be filed and execution had thereon in the same manner as any judgment from any court of record.
(d)    All moneys collected under this Section shall be deposited into the Appraisal Administration Fund.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/155)
Sec. 155. Consent order.   At any point in the proceedings as provided in this Act, both parties may agree to a negotiated consent order.  The consent order shall be final upon signature of the Secretary.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/160)
Sec. 160. Business practice provisions; standards of practice.
(a)  The Department may adopt by rule the Uniform Standards of Professional Appraisal Practice as published from time to time by the Appraisal Standards Board of the Appraisal Foundation. Appraisal management companies shall not interfere with adherence to the Uniform Standards of Professional Appraisal Practice or the Real Estate Appraiser Act of 2002 or a subsequent Act by individuals licensed under the respective Acts.
(b)  All payment policies from registrants under this Act to appraisers shall be written and definitive in nature.
(c) In the event of a value dispute or a requested reconsideration of value, the appraisal  management company shall deliver all information that supports an increase or decrease in value to the appraiser. This information may include, but is not limited to, additional comparable sales.
(d) Each entity registered under this Act shall designate a controlling person who is responsible to assure that the company operates in compliance with this Act. The company shall file a form provided by the Department indicating the company's designation of the controlling person and such individual's acceptance of the responsibility. A registrant shall notify the Department of any change in its controlling person within 30 days. Any registrant who does not comply with this subsection (d) shall have its registration suspended under the provisions set forth in this Act until the registrant complies with this Section. Any individual registrant who operates as a sole proprietorship shall be considered a designated controlling person for the purposes of this Act.
(e)

Appraisal management companies or employees of an appraisal management company involved in a real estate transaction who have a reasonable basis to believe that an appraiser involved in the preparation of an appraisal for the real estate transaction has failed to comply with the Uniform Standards of Professional Appraisal Practice, has violated this Act or its rules, or has otherwise engaged in unethical conduct shall report the matter to the Department. Any registrant, employee, or individual acting on behalf of a registrant, acting in good faith, and not in a willful and wanton manner, in complying with this Act by reporting the conduct to the Department shall not, as a result of such actions, be subject to criminal prosecution or civil damages.
(f) Appraisal management companies are required to be in compliance with the appraisal independence standards established under Section 129E of the federal Truth in Lending Act, including the requirement that fee appraisers be compensated at a customary and reasonable rate when the appraisal management company is providing services for a consumer credit transaction secured by the principal dwelling of a consumer. To the extent permitted by federal law or regulation, the

Department shall formulate rules pertaining to customary and reasonable rates of

compensation for fee appraisers.  The appraisal management company must certify

to the Department that it has policies and procedures in place to be in compliance

under the Final Rule of the federal Dodd-Frank Wall Street Reform and Consumer Protection Act.
(g) No appraisal management company procuring or facilitating an appraisal may have a direct or indirect interest, financial or otherwise, in the real estate or the transaction that is the subject of the appraisal, as defined by the federal Dodd-Frank Wall Street Reform and Consumer Protection Act, any amendments thereto, or successor acts or other applicable provisions of federal law or regulations.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/163)
Sec. 163. Appraiser panel; annual size calculation.  An appraiser is deemed part of the appraisal management company's appraiser panel as of the earliest date the appraisal management company accepts the appraiser for consideration for future appraisal assignments in covered transactions or engages the appraiser to perform one or more appraisal assignments on behalf of a creditor or secondary mortgage market participant in a covered transaction, including an affiliate of such a creditor or participant. An appraiser is considered to be part of the appraisal management company's appraiser panel if deemed to remain on the panel until: (1) the date on which the appraisal management company sends written notice to the appraiser removing the appraiser from the appraiser panel; (2) the date the appraisal management company receives written notice from the appraiser asking to be removed from the appraiser panel; or (3) the date the appraisal management company receives notice of the death or incapacity of the appraiser. If an appraiser is removed from an appraisal management company's appraiser panel but the appraisal management company subsequently accepts the appraiser for consideration for future assignments or engages the appraiser at any time during the 12 months after the appraiser's removal, the removal would be deemed not to have occurred and the appraiser is deemed to have been part of the appraisal management company's appraiser panel without interruption.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/165)
Sec. 165. Prohibited activities.
(a) No person or entity acting in the capacity of an appraisal management company shall improperly influence or attempt to improperly influence the development, reporting, result, or review of any appraisal by engaging, without limitation, in any of the following:
(1) Withholding or threatening to withhold timely     payment for a completed appraisal, except where addressed in a mutually agreed upon contract.
(2) Withholding or threatening to withhold, either     expressed or by implication, future business from, or demoting, or terminating, or threatening to demote or terminate an Illinois licensed or certified appraiser.
(3) Expressly or impliedly promising future business,     promotions, or increased compensation for an independent appraiser.
(4) Conditioning an assignment for an appraisal     service or the payment of an appraisal fee or salary or bonus on the opinion, conclusion, or valuation to be reached in an appraisal report.
(5) Requesting that an appraiser provide an     estimated, predetermined, or desired valuation in an appraisal report or provide estimated values or sales at any time prior to the appraiser's completion of an appraisal report.
(6) Allowing or directing the removal of an appraiser     from an appraisal panel without prior written notice to the appraiser.
(7)         Requiring an appraiser to sign a     non-compete clause when not an employee of the entity.
(8)         Requiring an appraiser to sign any sort     of indemnification agreement that would require the appraiser to defend and hold harmless the appraisal management company or any of its agents, employees, or independent contractors for any liability, damage, losses, or claims arising out of the services performed by the appraisal management company or its agents, employees, or independent contractors and not the services performed by the appraiser.
(9)        Prohibiting or attempting to prohibit the     appraiser from including or referencing the appraisal fee, the appraisal management company name or identity, or the client's or lender's name or identity within the body of the appraisal report.
(10) Require an appraiser to collect a fee from the     borrower or occupant of the property to be appraised.
(11)      Knowingly withholding any end-user client     guidelines, policies, requirements, standards, assignment conditions, and special instructions from an appraiser prior to the acceptance of an appraisal assignment.
(b)  A person or entity may not structure an appraisal assignment or a contract with an independent appraiser for the purpose of evading the provisions of this Act.
(c) No registrant or other person or entity may alter, modify, or otherwise change a completed appraisal report submitted by an independent appraiser, including without limitation, by doing either of the following:
(1) permanently or temporarily removing the     appraiser's signature or seal; or
(2) adding information to, or removing information     from, the appraisal report with an intent to change the value conclusion or the condition of the property.
(d) No appraisal management company may require an appraiser to provide it with the appraiser's digital signature or seal. However, nothing in this Act shall be deemed to prohibit an appraiser from voluntarily providing his or her digital signature or seal to another person on an assignment-by-assignment basis, in accordance with USPAP.
(e) Nothing in this Act shall prohibit an appraisal management company from requesting that an appraiser:
(1) consider additional appropriate property     information, including the consideration of additional comparable properties to make or support an appraisal;
(2) provide further detail, substantiation, or     explanation  for the appraiser's value conclusion; or
(3) correct factual errors in the appraisal report.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/170)
Sec. 170. Confidentiality. All information collected by the Department in the course of an examination or investigation of a licensee or applicant, including, but not limited to, any complaint against a licensee filed with the Department and information collected to investigate any such complaint, shall be maintained for the confidential use of the Department and shall not be disclosed. The Department may not disclose the information to anyone other than law enforcement officials, other regulatory agencies that have an appropriate regulatory interest as determined by the Secretary, or to a party presenting a lawful subpoena to the Department. Information and documents disclosed to a federal, State, county, or local law enforcement agency shall not be disclosed by the agency for any purpose to any other agency or person. A formal complaint filed against a licensee by the Department or any order issued by the Department against a licensee or applicant shall be a public record, except as otherwise prohibited by law.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/175)
Sec. 175. Illinois Administrative Procedure Act; application.   The Illinois Administrative Procedure Act is expressly adopted and incorporated in this Act as if all of the provisions of that Act were included in this Act, except that the provision of paragraph (d) of Section 10-65 of the Illinois Administrative Procedure Act, which provides that at hearings the registrant has the right to show compliance with all lawful requirements for retention or continuation or renewal of the registration, is specifically excluded.  For the purpose of this Act, the notice required under Section 10-25 of the Illinois Administrative Procedure Act is considered sufficient when mailed to the last known address of a party.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/177)
Sec. 177. Administrator, executor, or guardian. If the ownership of an appraisal management company registered under this Act is held or contained in an estate subject to the control and supervision of an administrator, executor, or guardian appointed, approved, or  by a court of the State of Illinois, having jurisdiction so to do, the administrator, executor, or guardian may, upon the entry of an order by the court granting leave to continue the operation of the appraisal management company, apply to the Secretary for a registration under this Act. If the administrator, executor, or guardian applies for an appraisal management company registration pursuant to this Section and complies with all of the provisions of this Act relating to the application for an appraisal management company registration, the Secretary may issue to the applicant an appraisal management company registration. An appraisal management company registration issued to an appraisal management company, for which an application for a registration is sought under this Section, if not previously surrendered, lapsed, or revoked, shall be surrendered, revoked, or otherwise terminated before a registration is issued pursuant to the application made under this Section.
(Source: P.A. 100-604, eff. 7-13-18.)
(225 ILCS 459/180)
Sec. 180. Home rule.   The regulation and registration of practice as an appraisal management company are exclusive powers and functions of the State.  A home rule unit may not regulate the practice or require the registration as an appraisal management company.  This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/905)
Sec. 905. (Amendatory provisions; text omitted).
(Source: P.A. 97-602, eff. 8-26-11; text omitted.)
(225 ILCS 459/910)
Sec. 910. (Amendatory provisions; text omitted).
(Source: P.A. 97-602, eff. 8-26-11; text omitted.)
(225 ILCS 459/915)
Sec. 915. The Real Estate Appraiser Licensing Act of 2002 is amended  by repealing Section 5-21.
(Source: P.A. 97-602, eff. 8-26-11.)
(225 ILCS 459/999)
Sec. 999. Effective date. This Act takes effect upon becoming law.
(Source: P.A. 97-602, eff. 8-26-11.)