Illinois Adopts Provisions Under its Residential Mortgage License Act
The Illinois Department of Financial and Professional Regulation recently adopted rules (starting on page 5272 of the linked document) to amend certain parts of its Residential Mortgage License Act. These rules, among other things, establish independent loan processor licensing, as well as bond, and advertising requirements. These provisions were effective on May 10, 2019.
The amendments made by these rules include the following:
- An independent loan processor entity must employ one or more individuals licensed as a loan originator to provide supervision and instruction to one or more individuals performing loan processing services. If only one loan processor is providing services for an independent loan processing entity, that individual must be licensed as a loan originator.
- Bonding requirements were updated for exempt independent loan processing entity registrants, such that they must file and maintain an electronic surety bond that provides coverage for each sponsored loan originator in the amount of $50,000.
- Advertisements
regarding residential mortgage loans by a licensee must include the following
information, in a manner that is clear and conspicuous to the consumer:
- The NMLS Consumer Access homepage website (together with a phrase for use in electronic media advertising); and
- The NMLS Unique Identifier of the licensee (as well as the licensee’s individual NMLS Unique Identifier, if the licensee is a mortgage loan originator).
