2023 Illinois Compiled Statutes › Chapter 205 - FINANCIAL REGULATION › 205 ILCS 635/ - Residential Mortgage License Act of 1987. › Article I - General Provisions

(205 ILCS 635/Art. I heading)
ARTICLE I
GENERAL PROVISIONS
(205 ILCS 635/1-1) (from Ch. 17, par. 2321-1)
Sec. 1-1. 
		
		This Act shall be known and may be cited as the
"Residential Mortgage License Act of 1987".
(Source: P.A. 85-735.)
(205 ILCS 635/1-2) (from Ch. 17, par. 2321-2)
Sec. 1-2. Purpose of Act and Policy Statement.
(a) The origination,
funding, purchasing and brokering of residential mortgage loans and the
type of entities involved in residential mortgage lending have undergone
significant changes in recent years, due in part to developments in the
general economy, specifically interest rate volatility, the sophistication
of the national secondary market for mortgage loans and the market for
mortgage backed securities.  The recent trend toward deregulation in the
financial services industry has accelerated the evolution of residential
mortgage lending, dramatically increasing the types of mortgage loans
offered and the manner in which they are advertised and marketed to
consumers.  Depository institutions, traditionally the major source of
residential mortgage financing for individuals, now compete for capital
and customers with mortgage bankers and other financial service
organizations.  Residential mortgage lenders of every type have
increasingly relied on nonfinancial intermediaries, such as mortgage
brokers, to find customers.  These developments have raised questions as to
whether all entities engaging in this banking function operate under
appropriate regulatory scrutiny and as to whether all residential mortgage
lenders are conducting their business in the best interests of Illinois
homeowners and potential homeowners.
(b) The activities of lenders and their offering of financing for
residential real property have a direct and immediate impact upon the
housing industry, the neighborhoods and communities of this State, its
homeowners and potential homeowners.  The General Assembly finds that it is
essential for the protection of the citizens of this State and the stability
of the State's economy that reasonable standards governing the business
practices of residential mortgage lenders and their agents be imposed.  The
General Assembly further finds that the obligations of lenders and their agents
to consumers in connection with  making, soliciting, processing, placing or
negotiating of residential mortgage loans are such as to warrant the
uniform regulation of the residential mortgage lending process, including
the application, solicitation, making and servicing of residential mortgage
loans.  The purpose of this Act is to protect Illinois consumers seeking
residential mortgage loans and to ensure that the residential mortgage
lending industry is operating fairly, honestly and efficiently, free from
deceptive and anti-competitive practices.  The purpose of this Act is to
regulate residential mortgage lending to benefit our citizens by ensuring
availability of residential mortgage funding, to benefit responsible
providers of residential mortgage loans and services, and to avoid
requirements inconsistent with legitimate and responsible business
practices in the residential mortgage lending industry.
(c) The General Assembly finds that the provisions of this amendatory Act of the 96th General Assembly that set forth the authority and framework for State participation in a Nationwide Mortgage Licensing System and Registry are consistent with the purposes of this Section and for the purpose of complying with the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.
(Source: P.A. 96-112, eff. 7-31-09.)
(205 ILCS 635/1-3) (from Ch. 17, par. 2321-3)
Sec. 1-3. Necessity for license; scope of Act.
(a) No person, partnership, association, corporation or other entity
shall engage in the business of brokering, funding, originating, servicing
or purchasing of residential mortgage loans without first obtaining a
license from the Secretary in accordance with the licensing procedure
provided in this Article I and such regulations as may be promulgated by
the Secretary.  The licensing provisions of this Section shall not apply
to any entity engaged solely in commercial mortgage lending or
to any person, partnership association, corporation or other entity
exempted pursuant to Section 1-4, subsection (d), of this Act or in accordance
with regulations promulgated by the Secretary hereunder. No provision of this Act shall apply to an exempt person or entity as defined in items (1) and (1.5) of subsection (d) of Section 1-4 of this Act. Notwithstanding anything to the contrary in the preceding sentence, an individual acting as a mortgage loan originator who is not employed by and acting for an entity described in item (1) of subsection (tt) of Section 1-4 of this Act shall be subject to the mortgage loan originator licensing requirements of Article VII of this Act.
Effective January 1, 2011, no provision of this Act shall apply to an exempt person or entity as defined in item (1.8) of subsection (d) of Section 1-4 of this Act. Notwithstanding anything to the contrary in the preceding sentence, an individual acting as a mortgage loan originator who is not employed by and acting for an entity described in item (1) of subsection (tt) of Section 1-4 of this Act shall be subject to the mortgage loan originator licensing requirements of Article VII of this Act, and provided that an individual acting as a mortgage loan originator under item (1.8) of subsection (d) of Section 1-4 of this Act shall be further subject to a determination by the U.S. Department of Housing and Urban Development through final rulemaking or other authorized agency determination under the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008.
(a-1) A person who is exempt from licensure pursuant to paragraph (ii) of item (1) of subsection (d) of Section 1-4 of this Act as a federally chartered savings bank that is registered with the Nationwide Multistate Licensing System and Registry may apply to the Secretary for an exempt company registration for the purpose of sponsoring one or more individuals subject to the mortgage loan originator licensing requirements of Article VII of this Act. Registration with the Division of Banking of the Department  shall not affect the exempt status of the applicant.
(1) A mortgage loan originator eligible for licensure     under this subsection shall (A) be covered under an exclusive written contract with, and originate residential mortgage loans solely on behalf of, that exempt person; and (B) hold a current, valid insurance producer license under Article XXXI of the Illinois Insurance Code.
(2) An exempt person shall: (A) fulfill any reporting     requirements required by the Nationwide Multistate Licensing System and Registry or the Secretary; (B) provide a blanket surety bond pursuant to Section 7-12 of this Act covering the activities of all its sponsored mortgage loan originators; (C) reasonably supervise the activities of all its sponsored mortgage loan originators; (D) comply with all rules and orders (including the averments contained in Section 2-4 of this Act as applicable to a non-licensed exempt entity provided for in this Section) that the Secretary deems necessary to ensure compliance with the federal SAFE Act; and (E) pay an annual registration fee established by the Director.
(3) The Secretary may deny an exempt company     registration to an exempt person or fine, suspend, or revoke an exempt company registration if the Secretary finds one of the following:
(A) that the exempt person is not a person of         honesty, truthfulness, or good character;
(B) that the exempt person violated any         applicable law, rule, or order;
(C) that the exempt person refused or failed to         furnish, within a reasonable time, any information or make any report that may be required by the Secretary;
(D) that the exempt person had a final judgment         entered against him or her in a civil action on grounds of fraud, deceit, or misrepresentation, and the conduct on which the judgment is based indicates that it would be contrary to the interest of the public to permit the exempt person to manage a loan originator;
(E) that the exempt person had an order entered         against him or her involving fraud, deceit, or misrepresentation by an administrative agency of this State, the federal government, or any other state or territory of the United States, and the facts relating to the order indicate that it would be contrary to the interest of the public to permit the exempt person to manage a loan originator;
(F) that the exempt person made a material         misstatement or suppressed or withheld information on the application for an exempt company registration or any document required to be filed with the Secretary; or
(G) that the exempt person violated Section 4-5         of this Act.
(a-5)    An entity that  is exempt from licensure pursuant to item (7) of subsection (d) of Section 1-4 of this Act as an independent loan processing entity shall annually apply to the Secretary through the Nationwide Multistate Licensing System and Registry for an exempt company registration for the purpose of sponsoring one or more individuals subject to the mortgage loan originator licensing requirements of Article VII of this Act. A loan processor who performs clerical or support duties at the direction of and subject to the supervision and instruction of a licensed mortgage loan originator sponsored by an independent loan processing entity shall be exempt from his or her own licensing as a mortgage loan originator.  An independent loan processing entity shall not be subject to examination by the Secretary. The Secretary may adopt rules to implement any provisions necessary for the administration of this subsection.
(b) No person, partnership, association, corporation, or other entity
except a licensee under this Act or an entity exempt from licensing
pursuant to Section 1-4, subsection (d), of this Act shall do any business
under any name or title, or circulate or use any advertising or make any
representation or give any information to any person, which indicates or
reasonably implies activity within the scope
of this Act.
(c) The Secretary may, through the Attorney General, request the circuit
court of either Cook or Sangamon County to issue an injunction to restrain
any person from violating or continuing to violate any of the foregoing
provisions of this Section.
(d) When the Secretary has reasonable cause to believe that any
entity which has not submitted an application for licensure is conducting
any of the activities described in subsection (a) hereof, the Secretary
shall have the power to examine all books and records of the entity and any
additional documentation necessary in order to determine whether such
entity should become licensed under this Act.
(d-1) The Secretary may issue orders against any person if the Secretary has reasonable cause to believe that an unsafe, unsound, or unlawful practice has occurred, is occurring, or is about to occur, if any person has violated, is violating, or is about to violate any law, rule, or written agreement with the Secretary, or for the purposes of administering the provisions of this Act and any rule adopted in accordance with this Act.
(e) Any person, partnership, association, corporation or other entity
who violates any provision of this Section commits a business offense and
shall be fined an amount not to exceed $25,000. A mortgage loan brokered, funded, originated, serviced, or purchased by a party who is not licensed under this Section shall not be held to be invalid solely on the basis of a violation under this Section. The changes made to this Section by Public Act 99-113 are declarative of existing law.
(f) Each person, partnership, association, corporation or other entity
conducting activities regulated by this Act shall be issued one license.
Each full service office at which a residential mortgage
licensee conducts any part of his or her business must
be recorded with the Secretary pursuant to Section 2-8 of this Act.
(g) Licensees under this Act shall solicit, broker, fund, originate,
service and purchase residential mortgage loans only in conformity with the
provisions of this Act and such rules and regulations as may be promulgated
by the Secretary.
(h) This Act applies to all entities doing business in Illinois as
residential mortgage bankers, as defined by "An Act to provide for the
regulation of mortgage bankers", approved September 15, 1977, as amended,
regardless of whether licensed under that or any prior Act.  Any existing
residential mortgage lender or residential mortgage broker in Illinois
whether or not previously licensed, must operate in accordance with this Act.
(i) This Act is a successor Act to and a continuance of the regulation
of residential mortgage bankers provided in "An Act to provide for the
regulation of mortgage bankers", approved September 15, 1977, as amended.
Entities and persons subject to the predecessor Act shall be subject to
this Act from and after its effective date.
(Source: P.A. 103-156, eff. 1-1-24.)
(205 ILCS 635/1-4)
Sec. 1-4. Definitions. The following words and phrases have the meanings given to them in this Section:
(a) "Residential real property" or "residential real     estate" shall mean any real property located in Illinois, upon which is constructed or intended to be constructed a dwelling. Those terms include a manufactured home as defined in subdivision (53) of Section 9-102 of the Uniform Commercial Code which is real property as defined in Section 5-35 of the Conveyance and Encumbrance of Manufactured Homes as Real Property and Severance Act.
(b) "Making a residential mortgage loan" or "funding     a residential mortgage loan" shall mean for compensation or gain, either directly or indirectly, advancing funds or making a commitment to advance funds to a loan applicant for a residential mortgage loan.
(c) "Soliciting, processing, placing, or negotiating     a residential mortgage loan" shall mean for compensation or gain, either directly or indirectly, accepting or offering to accept an application for a residential mortgage loan, assisting or offering to assist in the processing of an application for a residential mortgage loan on behalf of a borrower, or negotiating or offering to negotiate the terms or conditions of a residential mortgage loan with a lender on behalf of a borrower including, but not limited to, the submission of credit packages for the approval of lenders, the preparation of residential mortgage loan closing documents, including a closing in the name of a broker.
(d) "Exempt person or entity" shall mean the     following:
(1) (i) Any banking organization or foreign         banking corporation licensed by the Illinois Commissioner of Banks and Real Estate or the United States Comptroller of the Currency to transact business in this State; (ii) any national bank, federally chartered savings and loan association, federal savings bank, federal credit union; (iii) (blank); (iv) any bank, savings and loan association, savings bank, or credit union organized under the laws of this or any other state; (v) any Illinois Consumer Installment Loan Act licensee; (vi) any insurance company authorized to transact business in this State; (vii) any entity engaged solely in commercial mortgage lending; (viii) any service corporation of a savings and loan association or savings bank organized under the laws of this State or the service corporation of a federally chartered savings and loan association or savings bank having its principal place of business in this State, other than a service corporation licensed or entitled to reciprocity under the Real Estate License Act of 2000; or (ix) any first tier subsidiary of a bank, the charter of which is issued under the Illinois Banking Act by the Illinois Commissioner of Banks and Real Estate, or the first tier subsidiary of a bank chartered by the United States Comptroller of the Currency and that has its principal place of business in this State, provided that the first tier subsidiary is regularly examined by the Illinois Commissioner of Banks and Real Estate or the Comptroller of the Currency, or a consumer compliance examination is regularly conducted by the Federal Reserve Board.
(1.5) Any employee of a person or entity         mentioned in item (1) of this subsection, when acting for such person or entity, or any registered mortgage loan originator when acting for an entity described in subsection (tt) of this Section.
(1.8) Any person or entity that does not         originate mortgage loans in the ordinary course of business, but makes or acquires residential mortgage loans with his or her own funds for his or her or its own investment without intent to make, acquire, or resell more than 3 residential mortgage loans in any one calendar year.
(2) (Blank).
(2.1)   A bona fide nonprofit organization.
(2.2)   An employee of a bona fide nonprofit         organization when acting on behalf of that organization.
(3) Any person employed by a licensee to assist         in the performance of the residential mortgage licensee's activities regulated by this Act who is compensated in any manner by only one licensee.
(4) (Blank).
(5) Any individual, corporation, partnership, or         other entity that originates, services, or brokers residential mortgage loans, as these activities are defined in this Act, and who or which receives no compensation for those activities, subject to the Commissioner's regulations and the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 and the rules promulgated under that Act with regard to the nature and amount of compensation.
(6) (Blank).
(7) Any entity engaged solely in providing loan         processing services through the sponsoring of individuals acting pursuant to subsection (d) of Section 7-1A of this Act.
(e) "Licensee" or "residential mortgage licensee"     shall mean a person, partnership, association, corporation, or any other entity who or which is licensed pursuant to this Act to engage in the activities regulated by this Act.
(f) "Mortgage loan" "residential mortgage loan" or     "home mortgage loan" shall mean any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling as defined in Section 103(v) of the federal Truth in Lending Act, or residential real estate upon which is constructed or intended to be constructed a dwelling.
(g) "Lender" shall mean any person, partnership,     association, corporation, or any other entity who either lends or invests money in residential mortgage loans.
(h) "Ultimate equitable owner" shall mean a person     who, directly or indirectly, owns or controls an ownership interest in a corporation, foreign corporation, alien business organization, trust, or any other form of business organization regardless of whether the person owns or controls the ownership interest through one or more persons or one or more proxies, powers of attorney, nominees, corporations, associations, partnerships, trusts, joint stock companies, or other entities or devices, or any combination thereof.
(i) "Residential mortgage financing transaction"     shall mean the negotiation, acquisition, sale, or arrangement for or the offer to negotiate, acquire, sell, or arrange for, a residential mortgage loan or residential mortgage loan commitment.
(j) "Personal residence address" shall mean a street     address and shall not include a post office box number.
(k) "Residential mortgage loan commitment" shall mean     a contract for residential mortgage loan financing.
(l) "Party to a residential mortgage financing     transaction" shall mean a borrower, lender, or loan broker in a residential mortgage financing transaction.
(m) "Payments" shall mean payment of all or any of     the following: principal, interest and escrow reserves for taxes, insurance and other related reserves, and reimbursement for lender advances.
(n) "Commissioner" shall mean the Commissioner of     Banks and Real Estate, except that, beginning on April 6, 2009 (the effective date of Public Act 95-1047), all references in this Act to the Commissioner of Banks and Real Estate are deemed, in appropriate contexts, to be references to the Secretary of Financial and Professional Regulation, or his or her designee, including the Director of the Division of Banking of the Department of Financial and Professional Regulation.
(n-1) "Director" shall mean the Director of the     Division of Banking of the Department of Financial and Professional Regulation, except that, beginning on July 31, 2009 (the effective date of Public Act 96-112), all references in this Act to the Director are deemed, in appropriate contexts, to be the Secretary of Financial and Professional Regulation, or his or her designee, including the Director of the Division of Banking of the Department of Financial and Professional Regulation.
(o) "Loan brokering", "brokering", or "brokerage     service" shall mean the act of helping to obtain from another entity, for a borrower, a loan secured by residential real estate situated in Illinois or assisting a borrower in obtaining a loan secured by residential real estate situated in Illinois in return for consideration to be paid by either the borrower or the lender including, but not limited to, contracting for the delivery of residential mortgage loans to a third party lender and soliciting, processing, placing, or negotiating residential mortgage loans.
(p) "Loan broker" or "broker" shall mean a person,     partnership, association, corporation, or limited liability company, other than those persons, partnerships, associations, corporations, or limited liability companies exempted from licensing pursuant to Section 1-4, subsection (d), of this Act, who performs the activities described in subsections (c), (o), and (yy) of this Section.
(q) "Servicing" shall mean the collection or     remittance for or the right or obligation to collect or remit for any lender, noteowner, noteholder, or for a licensee's own account, of payments, interests, principal, and trust items such as hazard insurance and taxes on a residential mortgage loan in accordance with the terms of the residential mortgage loan; and includes loan payment follow-up, delinquency loan follow-up, loan analysis and any notifications to the borrower that are necessary to enable the borrower to keep the loan current and in good standing. "Servicing" includes management of third-party entities acting on behalf of a residential mortgage licensee for the collection of delinquent payments and the use by such third-party entities of said licensee's servicing records or information, including their use in foreclosure.
(r) "Full service office" shall mean an office,     provided by the licensee and not subleased from the licensee's employees or independent contractors, and staff in Illinois reasonably adequate to handle efficiently communications, questions, and other matters relating to any application for, or an existing home mortgage secured by residential real estate situated in Illinois with respect to which the licensee is brokering, funding originating, purchasing, or servicing.  The management and operation of each full service office must include observance of good business practices such as proper signage; adequate, organized, and accurate books and records; ample phone lines, hours of business, staff training and supervision, and provision for a mechanism to resolve consumer inquiries, complaints, and problems.  The Commissioner shall issue regulations with regard to these requirements and shall include an evaluation of compliance with this Section in his or her periodic examination of each licensee. "Full service office" does not include a remote location.
(s) "Purchasing" shall mean the purchase of     conventional or government-insured mortgage loans secured by residential real estate situated in Illinois from either the lender or from the secondary market.
(t) "Borrower" shall mean the person or persons who     seek the services of a loan broker, originator, or lender.
(u) "Originating" shall mean the issuing of     commitments for and funding of residential mortgage loans.
(v) "Loan brokerage agreement" shall mean a written     agreement in which a broker or loan broker agrees to do either of the following:
(1) obtain a residential mortgage loan for the         borrower or assist the borrower in obtaining a residential mortgage loan; or
(2) consider making a residential mortgage loan         to the borrower.
(w) "Advertisement" shall mean the attempt by     publication, dissemination, or circulation to induce, directly or indirectly, any person to enter into a residential mortgage loan agreement or residential mortgage loan brokerage agreement relative to a mortgage secured by residential real estate situated in Illinois.
(x) (Blank).
(y) "Government-insured mortgage loan" shall mean any     mortgage loan made on the security of residential real estate insured by the Department of Housing and Urban Development or Farmers Home Loan Administration, or guaranteed by the Veterans Administration.
(z) "Annual audit" shall mean a certified audit of     the licensee's books and records and systems of internal control performed by a certified public accountant in accordance with generally accepted accounting principles and generally accepted auditing standards.
(aa) "Financial institution" shall mean a savings and     loan association, savings bank, credit union, or a bank organized under the laws of Illinois or a savings and loan association, savings bank, credit union or a bank organized under the laws of the United States and headquartered in Illinois.
(bb) "Escrow agent" shall mean a third party,     individual or entity charged with the fiduciary obligation for holding escrow funds on a residential mortgage loan pending final payout of those funds in accordance with the terms of the residential mortgage loan.
(cc) "Net worth" shall have the meaning ascribed     thereto in Section 3-5 of this Act.
(dd) "Affiliate" shall mean:
(1) any entity that directly controls or is         controlled by the licensee and any other company that is directly affecting activities regulated by this Act that is controlled by the company that controls the licensee;
(2) any entity:
(A) that is controlled, directly or             indirectly, by a trust or otherwise, by or for the benefit of shareholders who beneficially or otherwise control, directly or indirectly, by trust or otherwise, the licensee or any company that controls the licensee; or
(B) a majority of the directors or trustees             of which constitute a majority of the persons holding any such office with the licensee or any company that controls the licensee;
(3) any company, including a real estate         investment trust, that is sponsored and advised on a contractual basis by the licensee or any subsidiary or affiliate of the licensee.
(ee) "First tier subsidiary" shall be defined by     regulation incorporating the comparable definitions used by the Office of the Comptroller of the Currency and the Illinois Commissioner of Banks and Real Estate.
(ff) "Gross delinquency rate" means the quotient     determined by dividing (1) the sum of (i) the number of government-insured residential mortgage loans funded or purchased by a licensee in the preceding calendar year that are delinquent and (ii) the number of conventional residential mortgage loans funded or purchased by the licensee in the preceding calendar year that are delinquent by (2) the sum of (i) the number of government-insured residential mortgage loans funded or purchased by the licensee in the preceding calendar year and (ii) the number of conventional residential mortgage loans funded or purchased by the licensee in the preceding calendar year.
(gg) "Delinquency rate factor" means the factor set     by rule of the Commissioner that is multiplied by the average gross delinquency rate of licensees, determined annually for the immediately preceding calendar year, for the purpose of determining which licensees shall be examined by the Commissioner pursuant to subsection (b) of Section 4-8 of this Act.
(hh) (Blank).
(ii) "Confidential supervisory information" means any     report of examination, visitation, or investigation prepared by the Commissioner under this Act, any report of examination visitation, or investigation prepared by the state regulatory authority of another state that examines a licensee, any document or record prepared or obtained in connection with or relating to any examination, visitation, or investigation, and any record prepared or obtained by the Commissioner to the extent that the record summarizes or contains information derived from any report, document, or record described in this subsection. "Confidential supervisory information" does not include any information or record routinely prepared by a licensee and maintained in the ordinary course of business or any information or record that is required to be made publicly available pursuant to State or federal law or rule.
(jj) "Mortgage loan originator" means an individual     who for compensation or gain or in the expectation of compensation or gain:
(i)  takes a residential mortgage loan         application; or
(ii)  offers or negotiates terms of a residential         mortgage loan.
"Mortgage loan originator" includes an individual     engaged in loan modification activities as defined in subsection (yy) of this Section. A mortgage loan originator engaged in loan modification activities shall report those activities to the Department of Financial and Professional Regulation in the manner provided by the Department; however, the Department shall not impose a  fee for reporting, nor require any additional qualifications to engage in those activities beyond those provided pursuant to this Act for mortgage loan originators.
"Mortgage loan originator" does not include an     individual engaged solely as a loan processor or underwriter except as otherwise provided in subsection (d) of Section 7-1A of this Act.
"Mortgage loan originator"  does not include a person     or entity that only performs real estate brokerage activities and is licensed in accordance with the Real Estate License Act of 2000, unless the person or entity is compensated by a lender, a mortgage broker, or other mortgage loan originator, or by any agent of that lender, mortgage broker, or other mortgage loan originator.
"Mortgage loan originator" does not include a person     or entity solely involved in extensions of credit relating to timeshare plans, as that term is defined in Section 101(53D) of Title 11, United States Code.
(kk) "Depository institution" has the same meaning as     in Section 3 of the Federal Deposit Insurance Act, and includes any credit union.
(ll) "Dwelling" means a residential structure or     mobile home which contains one to 4 family housing units, or individual units of condominiums or cooperatives.
(mm) "Immediate family member" means a spouse, child,     sibling, parent, grandparent, or grandchild, and includes step-parents, step-children, step-siblings, or adoptive relationships.
(nn) "Individual" means a natural person.
(oo) "Loan processor or underwriter" means an     individual who performs clerical or support duties as an employee at the direction of and subject to the supervision and instruction of a person licensed, or exempt from licensing, under this Act. "Clerical or support duties" includes subsequent to the receipt of an application:
(i) the receipt, collection, distribution, and         analysis of information common for the processing or underwriting of a residential mortgage loan; and
(ii) communicating with a consumer to obtain the         information necessary for the processing or underwriting of a loan, to the extent that the communication does not include offering or negotiating loan rates or terms, or counseling consumers about residential mortgage loan rates or terms. An individual engaging solely in loan processor or underwriter activities shall not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.
(pp) "Nationwide Multistate Licensing System and     Registry" means a mortgage licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for the licensing and registration of licensed mortgage loan originators.
(qq) "Nontraditional mortgage product" means any     mortgage product other than a 30-year fixed rate mortgage.
(rr) "Person" means a natural person, corporation,     company, limited liability company, partnership, or association.
(ss) "Real estate brokerage activity" means any     activity that involves offering or providing real estate brokerage services to the public, including:
(1)  acting as a real estate agent or real estate         broker for a buyer, seller, lessor, or lessee of real property;
(2)  bringing together parties interested in the         sale, purchase, lease, rental, or exchange of real property;
(3)  negotiating, on behalf of any party, any         portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing with respect to any such transaction;
(4)  engaging in any activity for which a person         engaged in the activity is required to be registered or licensed as a real estate agent or real estate broker under any applicable law; or
(5) offering to engage in any activity, or act in         any capacity, described in this subsection (ss).
(tt) "Registered mortgage loan originator" means any     individual that:
(1)  meets the definition of mortgage loan         originator and is an employee of:
(A)  a depository institution;
(B) a subsidiary that is:
(i)  owned and controlled by a depository                 institution; and
(ii)   regulated by a federal banking                 agency; or
(C)  an institution regulated by the Farm             Credit Administration; and
(2)  is registered with, and maintains a unique         identifier through, the Nationwide Multistate Licensing System and Registry.
(uu) "Unique identifier" means a number or other     identifier assigned by protocols established by the Nationwide Multistate Licensing System and Registry.
(vv) "Residential mortgage license" means a license     issued pursuant to Section 1-3, 2-2, or 2-6 of this Act.
(ww) "Mortgage loan originator license" means a     license issued pursuant to Section 7-1A, 7-3, or 7-6 of this Act.
(xx)  "Secretary" means the Secretary of the     Department of Financial and Professional Regulation, or a person authorized by the Secretary or by this Act to act in the Secretary's stead.
(yy) "Loan modification" means, for compensation or     gain, either directly or indirectly offering or negotiating on behalf of a borrower or homeowner to adjust the terms of a residential mortgage loan in a manner not provided for in the original or previously modified mortgage loan.
(zz) "Short sale facilitation" means, for     compensation or gain, either directly or indirectly offering or negotiating on behalf of a borrower or homeowner to facilitate the sale of residential real estate subject to one or more residential mortgage loans or debts constituting liens on the property in which the proceeds from selling the residential real estate will fall short of the amount owed and the lien holders are contacted to agree to release their lien on the residential real estate and accept less than the full amount owed on the debt.
(aaa)   "Bona fide nonprofit organization" means an     organization that is described in Section 501(c)(3) of the Internal Revenue Code, is exempt from federal income tax under Section 501(a) of the Internal Revenue Code, does not operate in a commercial context, and does all of the following:
(1)   Promotes affordable housing or provides         home ownership education or similar services.
(2)   Conducts its activities in a manner that         serves public or charitable purposes.
(3)   Receives funding and revenue and charges         fees in a manner that does not create an incentive for itself or its employees to act other than in the best interests of its clients.
(4)   Compensates its employees in a manner that         does not create an incentive for its employees to act other than in the best interests of its clients.
(5)   Provides to, or identifies for, the         borrower residential mortgage loans with terms favorable to the borrower and comparable to residential mortgage loans and housing assistance provided under government housing assistance programs.
(bbb) "Remote location" means a location other than a     principal place of business or a full service office at which a mortgage loan originator of a licensee may conduct business.
The Commissioner may define by rule and regulation any terms used
in this Act for the efficient and clear administration of this Act.
(Source: P.A. 103-156, eff. 1-1-24.)
(205 ILCS 635/1-5)
Sec. 1-5. (Repealed).
(Source: P.A. 93-1018, eff. 1-1-05. Repealed by P.A. 100-783, eff. 8-10-18.)