Illinois Administrative Code › Title 38 - FINANCIAL INSTITUTIONS › Part 1050 - RESIDENTIAL MORTGAGE LICENSE ACT OF 1987 › Subpart A - DEFINITIONS › Section 1050.110 - Definitions

Current through Register Vol. 48, No. 28, July 12, 2024
"Act" means the Residential Mortgage License Act of 1987 [205
				  ILCS 635].
"Administrative decision" means an order or action of the
				  Director, such as assessment of a fine, denial of a license, suspension, or
				  revocation of a license.
"Approved credit counselor" means a credit counselor approved
				  by the Director of the Department of Financial and Professional
				  Regulation-Division of Financial Institutions.
"Assisting" as used in Section 1-4(o) of the Act shall not
				  include the following activities or services when undertaken by a person in an
				  otherwise licensed profession or occupation provided such activities or
				  services are undertaken by such person in pursuit of such persons licensed
				  profession or occupation including, but not limited to insurance producer,
				  attorney at law, certified public accountant, land surveyor, or professional
				  engineer:
Activities or services of, or incidental to, the licensed
				  occupation or profession;
Delivery of surveys, abstracts of title, title commitments,
				  opinions of title, draft deeds, mortgage forms or lender sales material;
Coordinating the activities associated with the borrower's
				  completion or submission of a loan application;
Contracting or conferring with a licensed attorney, title
				  insurance company, insurance producer, or lender as to the status of the loan
				  application, loan commitment, title commitment, fire or extended coverage
				  insurance, or closing requirements.
"Control" means the power to, directly or indirectly, whether
				  acting through one or more persons, effect the voting interest of 10 percent or
				  more of any class of the outstanding voting shares, or partnership interest, of
				  an entity subject to the Act.
"Conviction" or "convicted" means, with respect to a criminal
				  charge, the final judgment, or the act of receiving final judgment, on a
				  verdict or finding of guilty, a plea of guilty, or a plea of nolo
				  contendere.
"Department" means the Department of Financial and
				  Professional Regulation.
"Director" means the Director of the Department of Financial
				  and Professional Regulation-Division of Banking.
"Division" means the Department of Financial and Professional
				  Regulation-Division of Banking, with the authority delegated by the
				  Secretary.
"Document", for purposes of Section 6-2(2) of the Act, shall
				  include all business and financial documents and all books and records, such
				  as, but not limited to in either type, characteristics, or function, tax
				  returns, signature cards, writings that engage or provide information to
				  accountants, consultants, or other agents, applications, authorizations to do
				  business, licenses or certificates, and submissions for insurance
				  endorsements.
"Employee" and "person employed":
As used in Section 1-4(d)(1.5 ) of the
				  Act, "employee" means:
any natural person who performs activity subject to licensure
				  or registration under the Act for an exempt entity under Section 1-4(d)(1) of
				  the Act, provided that the exempt entity:
expressly, in a writing submitted to and approved by the
				  Director, assumes full and direct legal responsibility for the activity of the
				  natural person that is performed on behalf of or in the name of the exempt
				  entity or that benefits or is intended to benefit the exempt entity; or
submits to the Director for approval a written opinion of
				  counsel stating that the relationship between the exempt entity and the natural
				  person is one in which the exempt entity assumes full and direct responsibility
				  for the activity of the natural person that is performed on behalf of or in the
				  name of the exempt entity or that benefits or is intended to benefit the exempt
				  entity; or
any natural person who performs activity subject to licensure
				  or registration under the Act for an exempt entity under Section 1-4(d)(1) of
				  the Act, provided that the natural person's performance of the activity is
				  otherwise under statute or administrative rule, subject to comprehensive
				  regulation and supervision, regular examination of books and records and
				  activities and administrative agency sanctions for violation of regulatory,
				  supervisory, or examination requirements by the State of Illinois or by a
				  federal depository institution regulator.
As used in Section 1-4(d)(3) of the Act, "person employed"
				  means any natural person who performs activity licensable under the Act
				  exclusively for one licensee under the Act, provided that the licensee,
				  expressly in writing on a form approved by the Director, assumes full and
				  direct legal responsibility for the licensable activity performed on behalf of
				  or in the name of the licensee or that benefits or is intended to benefit the
				  licensee.
"First tier subsidiary", as used in Section 1-4 of the Act,
				  means a subsidiary the stock of which is directly owned by the parent
				  corporation, without any intervening layer of ownership by another
				  corporation.
"Hearing Officer" means an attorney licensed in the State of
				  Illinois, other than an attorney who is a regular employee of the Division, who
				  is the presiding official appointed by the Director to conduct a
				  hearing.
"High risk home loan" means a home equity loan on residential
				  real property in which:
at the time of origination, the APR exceeds by more than 6
				  percentage points in the case of a first lien mortgage, or by more than 8
				  percentage points in the case of a junior mortgage, the yield on U.S. Treasury
				  securities having comparable periods of maturity to the loan maturity as of the
				  15th day of the month immediately preceding the
				  month in which the application for the loan is received by the lender;
				  or
the total points and fees payable by the consumer at or
				  before closing will exceed the greater of 5% of the total loan amount or $800.
				  The $800 figure shall be adjusted annually on January 1 by the annual
				  percentage change in the Consumer Price Index.
However, this Part shall not apply to a loan that is made
				  primarily for a business purpose unrelated to the residential real property
				  securing the loan or to an open-end credit plan subject to 12 CFR 226 (2000, no
				  subsequent amendments or editions are included).
"Home equity loan" means any loan secured by the borrower's
				  primary residence when the proceeds are not used as purchase money for the
				  residence.
"Independent loan processing entity" means an entity engaged
				  solely in providing loan processing services through the sponsoring of
				  individuals acting pursuant to Section 7-1A(d) of the Act.
"Licensee" means a person or entity licensed under the
				  Act.
"Material", as used in Section 6-2(2) of the Act, shall
				  include, but not be limited to, a misstatement or omission of fact that, if it
				  had not been misstated or omitted, would have altered the decision, approval,
				  determination, or finding made by the Director or his or her agent in reliance
				  upon the misstatement or omission. "Material" shall also include a misstatement
				  or omission of fact that, if it had not been misstated or omitted, would have
				  caused the Director or his or her agent to act or consider acting pursuant to
				  any of the powers vested in the Director or his or her agents or in the
				  Department or the Division by the Act or the rules promulgated under the
				  Act.
"NMLS" means the Nationwide Multistate Licensing System and
				  Registry.
"Other regulatory agencies", as used in Section 4-2(e) of the
				  Act, shall include the United States Department of Housing and Urban
				  Development, state insurance commissions, any state or Federal agency having
				  jurisdiction over the licensee, state and federal securities regulators, and
				  the United States Department of Labor.
"Party" means any person, including the Director, named on a
				  pleading or affected by an administrative decision.
"Petitioner" means a person affected by an administrative
				  decision of the Division or the Department who files a request for hearing, or
				  the Director when he or she initiates a notice for hearing to a named
				  respondent.
"Principal place of business", as used in Section
				  1-4(d)(1)(ix) of the Act, shall mean the principal place of business of the
				  subsidiary's parent bank, which must be chartered by the Comptroller of the
				  Currency of the United States.
"Repurchase a loan":
As used in Section 2-4(w) of the Act, means those instances
				  in which:
the licensee has demanded that another licensee repurchase a
				  loan and the first scheduled loan payment has not been received by the licensee
				  making the demand; or
the licensee has demanded that another licensee repurchase a
				  loan as a result of the determination, after reasonable investigation, by the
				  licensee making the demand, that materially false representations,
				  documentation or information may have been provided to any person in connection
				  with the origination or transfer of the loan.
As used in Section 2-4(x) of the Act, means those instances
				  in which:
the licensee has received a demand that it repurchase a loan
				  and the first scheduled loan payment has not been received by the person making
				  the demand; or
the licensee has received a demand that it repurchase a loan
				  as a result of the determination, after reasonable investigation, by the person
				  making the demand, that materially false representations, documentation or
				  information may have been provided to any person in connection with the
				  origination or transfer of the loan.
"Points and fees" means:
all items required to be disclosed as points and fees under
				  12 CFR
				  226.32 (2000, no subsequent amendments or
				  editions included);
the premium of any single premium credit life, credit
				  disability, credit unemployment, or any other life or health insurance that is
				  financed directly or indirectly into the loan;
all compensation paid directly or indirectly to a mortgage
				  broker, including a broker that originates a loan in its own name in a table
				  funded transaction, not otherwise included in the points and fees disclosed
				  under 12 CFR
				  226.32.
"Respondent" means a person who is named in the notice of
				  hearing when the notice is initiated by the Director, or the Director when a
				  petitioner files a request for hearing.
"Secretary" means the Secretary of the Department of
				  Financial and Professional Regulation.
"Servicer" means any entity licensed under the Act who is
				  responsible for the collection or remittance for, or the right or obligation to
				  collect or remit for, any lender, noteowner, or noteholder, or for a licensee's
				  own account, of payments, interest, 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.
"State" means the State of Illinois.
"Total loan amount" is the same as the term used in
				  12 CFR
				  226.32, and shall be calculated in accordance
				  with the Federal Reserve Board's Official Staff Commentary to that
				  regulation.