It is a violation of this Act for a licensee subject to this Act to:
         (a) fail to maintain at least one full service office
    
within the State of Illinois if required to do so pursuant to Section 3-4 of this Act;
        (b) fail to maintain staff reasonably adequate to
    
meet the requirements of Section 3-4 of this Act;
        (c) fail to keep and maintain for 36 months the same
    
written records as required by the federal Equal Credit Opportunity Act, and any other information required by regulations of the Secretary regarding any home mortgage in the course of the conduct of its residential mortgage business;
        (d) fail to file with the Secretary or Nationwide
    
Multistate Licensing System and Registry as applicable, when due, any report or reports which it is required to file under any of the provisions of this Act;
        (e) engage, whether as principal or agent, in the
    
practice of rejecting residential mortgage applications without reasonable cause, or varying terms or application procedures without reasonable cause, for home mortgages on real estate within any specific geographic area from the terms or procedures generally provided by the licensee within other geographic areas of the State;
        (f) engage in fraudulent home mortgage underwriting
    
practices;
        (g) make payment, whether directly or indirectly, of
    
any kind to any in house or fee appraiser of any government or private money lending agency with which an application for a home mortgage has been filed for the purpose of influencing the independent judgment of the appraiser with respect to the value of any real estate which is to be covered by such home mortgage;
        (h) fail to file tax returns (State and Federal) for
    
the past 3 years or filed with the Secretary an accountant’s or attorney’s statement as to why no return was filed;
        (i) engage in any discrimination or redlining
    
activities prohibited by Section 3-8 of this Act;
        (j) knowingly make any false promises likely to
    
influence or persuade, or pursue a course of misrepresentation and false promises through agents, solicitors, advertising or otherwise;
        (k) knowingly misrepresent, circumvent or conceal,
    
through whatever subterfuge or device, any of the material particulars or the nature thereof, regarding a transaction to which it is a party to the injury of another party thereto;
        (l) fail to disburse funds in accordance with its
    
agreements;
        (m) commit a crime against the law of this State, any
    
other state or of the United States, involving moral turpitude, fraudulent or dishonest dealing, and that no final judgment has been entered against it in a civil action upon grounds of fraud, misrepresentation or deceit which has not been previously reported to the Secretary;
        (n) fail to account or deliver to the owner upon
    
request any personal property such as money, fund, deposit, check, draft, mortgage, other document or thing of value which it is not in law or equity entitled to retain under the circumstances;
        (o) engage in any conduct which would be cause for
    
denial of a license;
        (p) become insolvent;
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Terms Used In Illinois Compiled Statutes 205 ILCS 635/2-4

  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Equal Credit Opportunity Act: Prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, or because an applicant receives income from a public assistance program. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Personal property: All property that is not real property.
  • State: when applied to different parts of the United States, may be construed to include the District of Columbia and the several territories, and the words "United States" may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14
  • United States: may be construed to include the said district and territories. See Illinois Compiled Statutes 5 ILCS 70/1.14

         (q) submit an application for a license under this
    
Act which contains a material misstatement;
        (r) demonstrate by course of conduct, negligence or
    
incompetence in performing any act for which it is required to hold a license under this Act;
        (s) fail to advise the Secretary in writing, or the
    
Nationwide Multistate Licensing System and Registry, as applicable, of any changes to the information submitted on the most recent application for license or averments of record within 30 days of said change. The written notice must be signed in the same form as the application for license being amended;
        (t) fail to comply with the provisions of this Act,
    
or with any lawful order, rule or regulation made or issued under the provisions of this Act;
        (u) fail to submit to periodic examination by the
    
Secretary as required by this Act;
        (v) fail to advise the Secretary in writing of
    
judgments entered against, and bankruptcy petitions by, the license applicant within 5 days of occurrence;
        (w) fail to advise the Secretary in writing within 30
    
days of any request made to a licensee under this Act to repurchase a loan in a manner that completely and clearly identifies to whom the request was made, the loans involved, and the reason therefor;
        (x) fail to advise the Secretary in writing within 30
    
days of any request from any entity to repurchase a loan in a manner that completely and clearly identifies to whom the request was made, the loans involved, and the reason for the request;
        (y) fail to at all times act in a manner consistent
    
with subsections (a) and (b) of Section 1-2 of this Act;
        (z) knowingly hire or employ a mortgage loan
    
originator who is not licensed with the Secretary as required under Section 7-1A of this Act;
        (aa) charge or collect advance payments from
    
borrowers or homeowners for engaging in loan modification; or
        (bb) structure activities or contracts to evade
    
provisions of this Act.
    A licensee who fails to comply with this Section or otherwise violates any of the provisions of this Section shall be subject to the penalties in Section 4-5 of this Act.
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