Section 1055.10  Authority, Purposes and Scope

 

a)         The Illinois Community Reinvestment Act (ILCRA) [205 ILCS 735] authorizes this Part.

 

b)         Purposes. This Part is intended to carry out the mortgage lender community investment purposes of [205 ILCS 735] by establishing the framework and criteria by which the Secretary assesses a covered mortgage licensee's record of helping to meet the mortgage credit needs of the State, including low- and moderate-income neighborhoods and individuals, consistent with the safe and sound operation of the covered mortgage licensee, and by providing that the Secretary takes that record into account in considering certain applications pursuant to Section 1055.250.

 

c)         Scope. This Part applies to all covered mortgage licensees as defined in Section 1055.20.

 

Section 1055.20  Definitions

 

For purposes of this Part, the following definitions apply:

 

"Area median income" means:

 

the median family income for the Metropolitan Statistical Area (MSA), if a person or geography is located in an MSA; or

 

the Statewide nonmetropolitan median family income, if a person or geography is located outside an MSA.

 

"Additional full-service office" means any office established or maintained by a covered mortgage licensee under 205 ILCS 635/1-3(f) and 2-8.

 

"Community development" means:

 

Mortgage products and other efforts to assist low- and moderate-income individuals to acquire or remain in affordable housing;

 

Community services targeted to low- and moderate-income individuals;

 

Activities that revitalize or stabilize:

 

Low- or moderate-income geographies;

 

Designated disaster areas; or

 

Distressed or underserved nonmetropolitan middle-income geographies designated by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency; or

 

Any other area as determined by the Secretary based on:

 

Rates of poverty, unemployment, and population loss; or

 

Population Size, Density, and Dispersion. Activities revitalize and stabilize geographies designated based on population size, density, and dispersion if they help to meet essential community and economic development needs, including needs of low- and moderate-income individuals.

 

"Community development loan" means a loan that:

 

Has as its primary purpose community development; and

 

Has not been reported or collected by the covered mortgage licensee for consideration in the covered mortgage licensee's assessment as a home mortgage loan, unless it is a multifamily dwelling loan (as described in Appendix A to 12 CFR 203, the Consumer Financial Protection Bureau's implementing regulations for the Home Mortgage Disclosure Act); and

 

Benefits the State or a broader regional area that includes the State.

 

"Community development service" means a service that:

 

Has as its primary purpose community development; and

 

Is related to the provision of financial services, including technical services.

 

"Covered mortgage licensee" means a mortgage lender, licensed under [205 ILCS 635], that has lent or originated 50 or more home mortgage loans in the State in the last calendar year reportable under the Home Mortgage Disclosure Act and also is responsible for underwriting, making credit decisions for, or issuing of commitments for the home mortgage loans.

 

"Department" means the Illinois Department of Financial and Professional Regulation.

 

"Geography" means a census tract, or a block numbering area delineated by the United States Bureau of the Census in the most recent decennial census.

 

"Highly economically disadvantaged areas" means economically distressed areas designated pursuant to 26 U.S.C. 1391.

 

"Home Mortgage Disclosure Act" or "HMDA" means the Consumer Financial Protection Bureau's implementing regulations found at 12 CFR 1003.

 

"Home mortgage loan" means a "home improvement loan", or a "home purchase loan" as defined in 12 CFR 1003.2 of HMDA or a home equity loan or any other extension of credit, including but not limited to a refinance, secured by a residence of the borrower for personal, family, or household purposes.

 

"Income level" means:

 

Low-income, an individual income that is less than 50% of the area median income, or a median family income that is less than 50%, in the case of a geography.

 

Moderate-income, an individual income that is at least 50% and less than 80% of the area median income, or a median family income that is at least 50% and less than 80%, in the case of a geography.

 

Middle-income, an individual income that is at least 80% and less than 120% of the area median income, or a median family income that is at least 80% and less than 120%, in the case of a geography.

 

Upper-income, an individual income that is 120% or more of the area median income, or a median family income that is 120% or more, in the case of a geography.

 

"Loan location" means a home mortgage loan is located in the geography where the property to which the loan relates is situated.

 

"MSA" means a metropolitan statistical area as defined by the United States Director of the Office of Management and Budget.

 

"Qualified investment" means a lawful investment, deposit, donation, membership share, or grant that has as its primary purpose community development, and lawful investments in the following:

 

corporations for the purpose of providing technical assistance to nonprofit housing corporations for the purpose of establishing creditworthiness;

 

contributions to any private nonprofit organization organized for improving the social and economic conditions, such as community development programs, foreclosure prevention initiatives, and educational institutions focusing on financial literacy initiatives, in communities in the State;

 

contributions for the purpose of relieving suffering or distress resulting from disaster or other calamity, such as hurricane or flood, occurring in any part of the State; and

 

contributions to any private nonprofit organization organized for fair housing and fair lending education and training.

 

"Special Credit Program" means any credit program offered by a covered mortgage licensee to meet special social needs which is in conformity with and explicitly authorized by the Equal Credit Opportunity Act (15 U.S.C. 1691(c)) and Regulation B (12 CFR 1002.8).

 

"Unbanked person" means an individual that does not have a checking or savings account with an insured depository institution.

 

"Underbanked person" means an individual that has a checking or saving account with an insured depository institution but that used financial products or services from a person other than an insured depository institution in the past 12 months.

 

Section 1055.200  Assessment Factors

 

As used in this Part, "assessment factors" means the assessment of the following factors to determine whether a covered mortgage licensee is meeting the financial services needs of local communities:

 

a)         activities to ascertain the financial services needs of the community, including communication with community members regarding the financial services provided;

 

b)         extent of marketing to make members of the community aware of the financial services offered;

 

c)         origination of mortgage loans including, but not limited to, home improvement and rehabilitation loans, and other efforts to assist existing low-income and moderate-income residents to be able to remain in affordable housing in their neighborhoods;

 

d)         for small business lenders, the origination of loans to businesses with gross annual revenues of $1,000,000.00 or less, particularly those in low-income and moderate-income neighborhoods;

 

e)         participation, including investments, in community development and redevelopment programs, small business technical assistance programs, minority-owned depository institutions, community development financial institutions, and mutually-owned financial institutions;

 

f)         efforts working with delinquent customers to facilitate a resolution of the delinquency;

 

g)         origination of loans that show an under concentration and a systemic pattern of lending resulting in the loss of affordable housing units;

 

h)         evidence of discriminatory and prohibited practices; and

 

i)          offering mortgage lending to unbanked and underbanked persons.

 

Section 1055.210  Performance Tests, Standards, and Ratings, in General

 

a)         Performance tests and standards. The Secretary assesses the performance of a covered mortgage licensee in an examination as outlined in this Section. The Secretary applies the assessment factors, as provided in Section 1055.200, and lending and service tests, as provided in Sections 1055.220 and 1055.230 in evaluating the performance of a covered mortgage licensee. However, a covered mortgage licensee that achieves at least a "satisfactory" rating under both the lending and service tests may warrant consideration for an overall rating of "outstanding" depending on the covered mortgage licensee's performance in making qualified investments and community development loans to the extent authorized under law, in accordance with Section 1055.APPENDIX A(b)(3).

 

b)         Performance context. The Secretary applies the tests and standards in subsection (a) in the context of:

 

1)         demographic data on median income levels, distribution of household income, nature of housing stock, housing costs, and other relevant data pertaining to the State;

 

2)         any information about lending and service opportunities in the State maintained by the covered mortgage licensee or obtained from community organizations, state, local, and tribal governments, economic development agencies, or other sources;

 

3)         the covered mortgage licensee's product offerings and business strategy as determined from data provided by the covered mortgage licensee in the State;

 

4)         the covered mortgage licensee's capacity and constraints, including the size and financial condition of the covered mortgage licensee, the economic climate (national, regional, and local), safety and soundness limitations, and any other factors that significantly affect the covered mortgage licensee's ability to provide lending or services in the State;

 

5)         the covered mortgage licensee's past performance and the performance of similarly situated lenders in the State; and

 

6)         any other information deemed relevant by the Secretary.

 

c)         Assigned ratings. The Secretary assigns to a covered mortgage licensee one of the following four ratings pursuant to Sections 1055.240 and 1055.APPENDIX A: "outstanding"; "satisfactory"; "needs to improve"; or "substantial noncompliance" as provided in 205 ILCS 735/35-15(c). The rating assigned by the Secretary reflects the covered mortgage licensee's record of helping to meet the mortgage credit needs of the State, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the covered mortgage licensee.

 

d)         Safe and sound operations. This Part does not require a covered mortgage licensee to make loans or investments or to provide services that are inconsistent with safe and sound operations. To the contrary, the Secretary anticipates covered mortgage licensees can meet the standards of this Part with safe and sound loans, investments, and services on which the covered mortgage licensee can expect to make a profit. Covered mortgage licensees are permitted and encouraged to develop and apply flexible underwriting standards for loans that benefit and are suitable for low- and moderate-income geographies or individuals, only if consistent with safe and sound operations.

 

Section 1055.220  Lending Test

 

a)         Scope of test.

 

1)         The lending test evaluates a covered mortgage licensee's record of helping to meet the mortgage credit needs of the State through its lending activities by considering a covered mortgage licensee's home mortgage and community development lending.

 

2)         The Secretary considers originations and initial purchases of loans as reported by the covered mortgage licensee under HMDA. The Secretary will also consider any other loan data the covered mortgage licensee may choose to provide.

 

b)         Performance criteria. The Secretary evaluates a covered mortgage licensee's performance considering the assessment factors in Section 1055.200 and pursuant to the following criteria:

 

1)         Geographic distribution. The geographic distribution of the covered mortgage licensee's home mortgage loans, based on the loan location, including:

 

A)        the dispersion of lending in the State and whether lending arbitrarily excludes low- and moderate-income geographies; and

 

B)        the number and amount of loans in low-, moderate-, middle-, and upper-income geographies in the State.

 

2)         Borrower characteristics. The distribution of the covered mortgage licensee's home mortgage loans based on borrower characteristics, including the number and amount of home mortgage loans to low-, moderate-, middle-, and upper-income individuals, including loans to assist existing low- and moderate-income residents to be able to acquire or remain in affordable housing in their neighborhoods at rates and terms that are reasonable considering the covered mortgage licensee's history with similarly situated borrowers.

 

3)         Innovative or flexible lending practices. The covered mortgage licensee's use of innovative or flexible lending practices in a safe and sound manner to address the credit needs of low- and moderate-income individuals or geographies, including loans and other products to assist delinquent home mortgage borrowers to be able to remain in their homes. The Secretary shall also consider the availability of mortgage loan products that are suitable for low- and moderate-income individuals, including loans specifically approved for low- and moderate-income individuals by Federal Housing Administration, Veteran's Administration, federal Rural Housing Service, or a government-sponsored enterprise. In assessing performance pursuant to this Part, the Secretary shall consider whether a covered mortgage licensee offers special credit programs. The covered mortgage licensee must be able show that the program will fall under any of the following:

 

A)        any credit assistance program expressly authorized by federal or state law for the benefit of an economically disadvantaged class of persons;

 

B)        any credit assistance program offered by a not-for-profit organization for the benefit of its members or an economically-disadvantaged class of persons; or

 

C)        any special purpose credit program offered by a for-profit organization, or in which that organization participates to meet special social needs, if it meets certain standards prescribed in 12 CFR 1002.8(a)(3)(i);

 

4)         Loss mitigation efforts. The covered mortgage licensee's efforts to work with delinquent home mortgage loan borrowers to facilitate a resolution of the delinquency, including the number of loan modifications, the timeliness of the modifications, and the extent to which the modifications are effective in preventing subsequent defaults or foreclosures;

 

5)         Fair lending. The covered mortgage licensee's performance relative to fair lending policies and practices pursuant to written policies and directives issued by the Secretary; and

 

6)         Loss of affordable housing. The covered mortgage licensee's number and amount of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units, including a pattern of early payment defaults.

 

c)         Third-party lending. No covered mortgage licensee may include a loan origination or loan purchase for consideration if another covered mortgage licensee or depository institution claims the same loan origination or the same purchase under this Part or the State or federal Community Reinvestment Act.

 

d)         Lending performance rating. The Secretary rates a covered mortgage licensee's performance as provided in Section 1055.APPENDIX A.

 

Section 1055.230  Service Test

 

a)         Scope of test. The service test evaluates a covered mortgage licensee's record of helping to meet the mortgage credit needs in the State by analyzing both the availability and effectiveness of a covered mortgage licensee's systems for delivering mortgage loan products and the extent and innovativeness of its community development services. A covered mortgage licensee that has made fewer than 200 home mortgage loans in the State in the last calendar year is not subject to the service test outlined in this Section.

 

b)         Areas benefited. Community development services must benefit the State or a broader regional area that includes the State.

 

c)         Performance criteria − community development services. The Secretary evaluates community development services pursuant to the following criteria:

 

1)         the extent to which the covered mortgage licensee provides community development services; and

 

2)         the innovativeness and responsiveness of community development services.

 

d)         Performance criteria − mortgage lending services. The Secretary evaluates the availability and effectiveness of a covered mortgage licensee's systems for delivering mortgage lending services considering the assessment factors in Section 1055.200 and, pursuant to the following criteria:

 

1)         the availability and effectiveness of systems for delivering mortgage lending services (e.g., internet, telephone solicitation, direct mail) in low- and moderate-income geographies and to low- and moderate-income individuals, including, to the extent applicable, the current distribution of the covered mortgage licensee's additional full-service office among low-, moderate-, middle-, and upper-income geographies; and

 

2)         the range of services provided in low-, moderate-, middle-, and upper-income geographies and the degree to which the services are tailored to meet the needs of those geographies.

 

e)         Service performance rating. The Secretary rates a covered mortgage licensee's service performance as provided in Section 1055.APPENDIX A.

 

f)         Examples of community development.  Examples of services, programs, sponsorships, donations, lawful investments, deposits, membership shares, grants, other activities which may be deemed to have the primary purpose of community development include, but are not limited to, the following:

 

1)         Establishment of or material support of charitable donation accounts and donor advised funds that benefit charitable organizations which help meet the financial services needs of low-income and moderate-income neighborhoods or individuals within the community;

 

2)         Establishment of or material support of foundations and other affiliated companies that provide programs and services to meet the credit needs of low-income to moderate-income neighborhoods;

 

3)         Offering products and services targeted to expand access to safe and affordable banking services;

 

4)         Provision or support of community development services that directly and tangibly benefit the community;

 

5)         Offering products and services and/or provision of investments targeted to directly and tangibly increase climate resilience in low-income to moderate-income neighborhoods;

 

6)         Offering products and services and/or provision of investments targeted to directly and tangibly mitigate environmental harm in low-income to moderate-income neighborhoods;

 

7)         Participating in Invest in Illinois or other similar state or federal programs which have the primary purpose of community development;

 

8)         Participating in an activity listed on the Office of the Comptroller of the Currency's CRA Illustrative List of Qualifying Activities found on the Office's website.  The Secretary shall post a link to the Office of the Comptroller of the Currency's CRA Illustrative List of Qualifying Activities on the Department's website.

 

Section 1055.240  Assigned Ratings

 

a)         Ratings in general. Subject to subsections (a) and (b), the Secretary assigns to a covered mortgage licensee a rating of "outstanding", "satisfactory", "needs to improve", or "substantial noncompliance" based on the covered mortgage licensee's performance under the lending and service tests.

 

b)         Lending test. No covered mortgage licensee may receive an assigned overall rating of "satisfactory" or higher unless it receives a rating of at least "satisfactory" on the lending test.

 

c)         Effect of evidence of discriminatory or other illegal credit practices. Evidence of discriminatory or other illegal credit practices adversely affects the Secretary's evaluation of covered mortgage licensee's performance. In determining the effect on the covered mortgage licensee's assigned rating, the Secretary considers the nature and extent of the evidence, the policies and procedures that the covered mortgage licensee has in place to prevent discriminatory or other illegal credit practices, any corrective action that the covered mortgage licensee has taken or has committed to take, particularly voluntary corrective action resulting from self-assessment, the covered mortgage licensee's compliance with written policies and directives with regard to fair lending, and other relevant information.  In connection with any type of lending activity described in Section 1055.220, evidence of discriminatory or other credit practices that violate an applicable law, rule, or regulation includes, but is not limited to:

 

1)         Discrimination against applicants on a prohibited basis in violation, for example of the Equal Credit Opportunity Act (15 U.S.C. 1691-1691f) or Fair Housing Act (42 U.S.C. 3601-19), including, for example, relying on or giving force or effect to discriminatory appraisals to deny loan applications where the covered mortgage licensee knew or should have known of the discrimination;

 

2)         Violations of section 5 of the Federal Trade Commission Act (15 U.S.C. 45)

 

3)         Violations of section 8 of the Real Estate Settlement Procedures Act (12 U.S.C. 2607);

 

4)         Violations of the Truth in Lending Act provisions regarding a consumer's right of rescission (15 U.S.C. 1635);

 

5)         Violations of the Home Ownership and Equity Protection Act (15 U.S.C. 1639 and 1648);

 

6)         Violations of the Residential Real Property Disclosure Act [765 ILCS 77];

 

7)         Violations of the Illinois High Risk Home Loan Act [815 ILCS 137];

 

8)         Violations of the Illinois Fairness in Lending Act [815 ILCS 120]; and

 

9)         Violations of Article 4 (Financial Credit) of the Illinois Human Rights Act [775 ILCS 5/Art. 4].

 

Section 1055.250  Effect of Record of Performance on Applications

 

a)         Performance. Among other factors, the Secretary takes into account the record of performance of each covered mortgage licensee, under the covered mortgage licensee community investment provisions of the Illinois Community Reinvestment Act when submitting applications for the following:

 

1)         renewal of a license to conduct business in the State by all covered mortgage licensees;

 

2)         establishment or renewal of any additional full-service office by all covered mortgage licensees;

 

3)         any merger with or acquisition of a covered mortgage licensee or mortgage broker by a covered mortgage licensee or any other proposed change in control of a covered mortgage licensee; and

 

4)         any other approval of the Secretary, provided that there are no other countervailing financial safety and soundness or other policy considerations.

 

b)         Interested parties. In considering a record of performance in applications described in subsection (a), the Secretary takes into account any views expressed by interested parties that are submitted.

 

c)         Denial, deferral, or conditional approval of application. A covered mortgage licensee's record of performance may be the basis for denying, deferring, or conditioning approval of an application listed in subsection (a).

 

Section 1055.400  Data Collection and Reporting

 

a)         As part of its examination, the Secretary shall require a covered mortgage licensee to collect and report for examination purposes the data fields required under HMDA. The covered mortgage licensee shall be expected to test its data collection and reporting as part of its routine internal controls to ensure compliance with all data reporting requirements as well as its own policies and procedures.

 

b)         Optional data collection and maintenance. At its option, a covered mortgage licensee may provide other information concerning its lending performance, including additional loan distribution data.

 

Section 1055.410  Content and Availability of Public Information

 

a)         Information available to the public. A covered mortgage licensee shall maintain the following information to be made available to the public upon request:

 

1)         all written comments received from the public for the current year and each of the prior two calendar years that specifically relate to the covered mortgage licensee's performance in helping to meet the mortgage credit needs of the State, and any response to the comments by the covered mortgage licensee, if neither the comments nor the responses contain statements that reflect adversely on the good name or reputation of any persons other than the covered mortgage licensee or publication of which would violate specific provisions of law;

 

2)         a copy of the public section of the covered mortgage licensee's most recent performance evaluation prepared by the Secretary; and

 

3)         a copy of the HMDA Disclosure Statement provided by the Federal Financial Institutions Examination Council pertaining to the covered mortgage licensee for each of the prior two calendar years.

 

b)         Copies. Upon request, a covered mortgage licensee shall provide within five business days of the request, copies, either on paper or in another form acceptable to the person making the request, of the information required under Section 1055.410(a)(1). The covered mortgage licensee may charge a reasonable fee not to exceed the cost of copying and mailing, if applicable.

 

Section 1055.420  Publication of Planned Examination Schedule

 

The Secretary publishes at least 30 days in advance of the beginning of each calendar quarter a list of covered mortgage licensees scheduled for ILCRA examinations in that quarter.

 

Section 1055.430  Alternative Examination Procedures

 

The Secretary may establish alternative examination procedures for institutions that were rated "outstanding" as of their most recent ILCRA compliance examination. The purpose of such alternative procedures shall be to reduce the cost to institutions. The alternative procedures shall in no way limit public participation.

 

Section 1055.440  Examination Authority and Cooperation

 

a)         Pursuant to the Secretary's authority under the ILCRA, including, but not limited to, Sections 35-15 and 35-25 of the ILCRA, the Secretary and the Secretary's appointees may examine the entire books, records, documents, and operations of each covered mortgage licensee or its directors, employees, and agents under oath.

 

b)         A covered mortgage licensee shall be required to fully cooperate in any examination conducted pursuant to this Part. Cooperation includes, but is not limited to:

 

1)         timely and full production of books, records, and documents, in any reasonable format requested by the Department; and

 

2)         ensuring all officers, directors, employees, and agents of the covered mortgage licensee are available for depositions or interviews upon reasonable notice.

 

Section 1055.450  Examination Frequency

 

a)         Subject to the provisions of this Section, the Secretary may conduct examinations under the ILCRA or this Part in coordination with authorities from other states with the authority to regulate institutions and individuals engaged in the offering and provision of home mortgage loans ("other state regulators").

 

b)         For covered mortgage licensees that made more than 100 home mortgage loans in the State in the last calendar year; the Secretary shall conduct examinations under the ILCRA with the following frequency:

 

1)         For a covered mortgage licensee that is assigned an "outstanding" or "satisfactory" rating in its most recent prior examination under the ILCRA, the next examination shall be initiated within three years of the issuance of the report of examination of its most recent prior examination under the ILCRA.

 

2)         For a covered mortgage licensee that is assigned a "needs to improve" rating in its most recent prior examination under the ILCRA, the next examination shall be initiated within two years of the issuance of the report of examination of its most recent prior examination under the ILCRA.

 

3)         For a covered mortgage licensee that is assigned a "substantial noncompliance" rating in its most recent prior examination under the ILCRA, the next examination shall be initiated within one year of the issuance of the report of examination of its most recent prior examination under the ILCRA.

 

c)         For covered mortgage licensees that made less than 100 home mortgage loans in the State in the last calendar year, the Secretary shall conduct examinations under the ILCRA with the following frequency:

 

1)         For a covered mortgage licensee that is assigned an "outstanding" rating in its most recent prior examination under the ILCRA, the next examination shall be initiated within five years of the issuance of the report of examination of its most recent prior examination under the ILCRA.

 

2)         For a covered mortgage licensee that is assigned a "satisfactory" rating in its most recent prior examination under the ILCRA, the next examination shall be initiated within four years of the issuance of the report of examination of its most recent prior examination under the ILCRA.

 

3)         For a covered mortgage licensee that is assigned a "needs to improve" rating in its most recent prior examination under the ILCRA, the next examination shall be initiated within two years of the issuance of the report of examination of its most recent prior examination under the ILCRA.

 

4)         For a covered mortgage licensee that is assigned "substantial noncompliance" rating in its most recent prior examination under the ILCRA, the next examination shall be initiated within one year of the issuance of the report of examination of its most recent prior examination under the ILCRA.

 

d)         Notwithstanding the provisions of this Section, the Secretary may:

 

1)         conduct an examination at any time upon finding:

 

A)        an other state regulator has rated the covered mortgage licensee, as of its most recent examination, in "substantial noncompliance" or equivalent rating with that state's Community Reinvestment Act;

 

B)        substantial evidence of discriminatory or other illegal credit practices; or

 

C)        the Secretary otherwise finds sufficient cause.

 

2)         notwithstanding subsections (b)(1) and (c)(1), extend by one year the time between examination of any covered mortgage licensee or covered mortgage licensees with an "outstanding" or "satisfactory" rating if the Secretary finds that an extension is necessitated by:

 

A)        the need to examine or investigate a covered mortgage licensee or covered mortgage licensees with a "needs to improve" or "substantial noncompliance" rating; or

 

B)        the need to examine or investigate a covered mortgage licensee or covered mortgage licensees showing substantial evidence of illegal credit practices.

 

3)         examine a covered mortgage licensee at any time as authorized by the ILCRA.

 

e)         For purposes of this Section, covered mortgage licensees will report the number of home loans as reported on the Mortgage Call Report for the last calendar year.

 

Section 1055.460  Examination Fees

 

a)         Annual fees.  Each fiscal year, a covered mortgage licensee pursuant to Section 35-15 of the ILCRA shall pay an annual ILCRA fee to the Department based upon its total number of Illinois mortgage loans as shown by its Mortgage Call Reports for the previous calendar year, at the following rates:

 

NO. OF ILLINOIS MORTGAGE LOANS	ILCRA ANNUAL FISCAL YEAR 2025 FEE	ILCRA ANNUAL FISCAL YEAR 2026 FEE
50-99	$2,000	$2,250
100-199	$2,250	$2,500
200-299	$2,500	$3,000
300-399	$3,000	$3,750
400-499	$3,250	$4,750
500-749	$3,500	$5,750
750-999	$4,000	$7,000
1000-1999	$4,500	$8,250
2000-2999	$5,000	$9,750
3000-3999	$5,500	$11,250
4000-4999	$6,000	$13,000
5000-5999	$6,500	$14,750
6000-6999	$7,500	$16,750
7000-7999	$10,000	$19,000
Over 8000	$14,000	$22,000

 

b)         Out-of-state travel expenses

 

1)         When out-of-state travel occurs in the conduct of any examination, the covered mortgage licensee shall make arrangements to reimburse the Department all charges for services such as travel expenses, including airfare, hotel and per diem incurred by the employee.  These expenses are to be in accord with applicable travel regulations published by the Department of Central Management Services and approved by the Governor's Travel Control Board (80 Ill. Adm. Code 2800).

 

2)         For purposes of this Section, "fiscal year" means a period beginning on July 1 of any calendar year and ending on June 30 of the next calendar year.

 

c)         All fees received pursuant to this Part shall be deposited in the Residential Finance Regulatory Fund.

 

d)         The fee for fiscal year 2025 shall be due on January 1, 2025.  The fee for each fiscal year thereafter shall be due within 30 days after the start of each fiscal year.

 

(Source:  Amended at 48 Ill. Reg. 17558, effective November 25, 2024)

 

Section 1055.470  Implementation Period

 

a)         Covered mortgage licensees shall comply with the requirements of this Part by November 1, 2024.

 

b)         For covered mortgage licensees that made fewer than 100 home mortgage loans in the State in the last calendar year, the Secretary shall not cause an examination to be initiated under the ILCRA or this Part until November 1, 2025; provided that, the Secretary may conduct an examination at any time upon finding:

 

1)         the covered mortgage licensee has been found to be in "substantial noncompliance" with another state's Community Reinvestment Act;

 

2)         substantial evidence of discriminatory or other illegal credit practices; or

 

3)         the Secretary otherwise finds sufficient cause.

 

c)         For covered mortgage licensees that made at least 100 home mortgage loans in the State in the last calendar year, the Secretary shall not cause an examination to be initiated under the ILCRA or this Part until February 1, 2025.

 

d)         For purposes of Section 1055.450, with regard to the timing of the initial examination of a covered mortgage licensee under ILCRA, the "most recent prior exam under the ILCRA" shall be read as the most recent examination by another state regulator pursuant to that state's Community Reinvestment Act.

 

(Source:  Amended at 48 Ill. Reg. 17558, effective November 25, 2024)

 

Section 1055.480  Enforcement

 

Failure to comply with any requirement under the ILCRA, this Part or other law referenced in the ILCRA, shall be grounds for enforcement actions as authorized under the ILCRA and under the Residential Mortgage License Act of 1987 [205 ILCS 635]. Any failure to comply with a requirement of the ILCRA may also be grounds for referral to law enforcement or an administrative authority with jurisdiction over the subject matter. In addition to any other action authorized by law, the Secretary may enter agreed orders, stipulations or settlement agreements for the purpose of resolving any such failure to comply.

 

Section 1055.APPENDIX A   Ratings

 

a)         Ratings in general.

 

1)         In assigning a rating, the Secretary evaluates a covered mortgage licensee's performance under the applicable performance criteria in this Part, in accordance with Sections 1055.210 and 1055.240, which provide for adjustments on the basis of evidence of discriminatory or other illegal credit practices.

 

2)         A covered mortgage licensee's performance need not fit each aspect of a particular rating profile in order to receive that rating, and exceptionally strong performance with respect to some aspects may compensate for weak performance in others. The covered mortgage licensee's overall performance, however, must be consistent with safe and sound lending practices and generally with the appropriate rating profile as follows.

 

b)         Covered mortgage licensees evaluated under the lending and service tests.

 

1)         Lending performance rating. The Secretary assigns each covered mortgage licensee's lending performance one of the four following ratings.

 

A)        Outstanding. The Secretary rates a covered mortgage licensee's performance "outstanding" if, in general, it demonstrates:

 

i)          An excellent geographic distribution of loans in the State;

 

ii)         An excellent distribution of loans among individuals of different income levels, given the product lines offered by the covered mortgage licensee;

 

iii)        An excellent record of serving the mortgage credit needs of highly economically disadvantaged areas in the State and low-income individuals, including loans to assist existing low- and moderate-income residents to be able to acquire or remain in affordable housing in their neighborhoods at rates and terms that are reasonable considering the covered mortgage licensee's history with similarly situated borrowers, consistent with safe and sound operations;

 

iv)        Extensive use of innovative or flexible lending practices in a safe and sound manner to address the mortgage credit needs of low- and moderate-income individuals or geographies, including loans and other products to assist delinquent home mortgage borrowers to be able to remain in their homes;

 

v)         Mortgage products demonstrate an excellent suitability for low- and moderate-income individuals;

 

vi)        It plays a leadership role in working with delinquent mortgage loan borrowers to facilitate a successful resolution of the delinquency, including a substantial number of loan modifications in a timely manner and which are effective in preventing subsequent defaults or foreclosures;

 

vii)       There is no evidence of loans that show an undue concentration and a systematic pattern of lending, including early payment defaults, resulting in the loss of affordable housing units; and

 

viii)      An excellent record relative to fair lending policies and practices.

 

B)        Satisfactory. The Secretary rates a covered mortgage licensee's performance "satisfactory" if, in general, it demonstrates:

 

i)          An adequate geographic distribution of loans in the State;

 

ii)         An adequate distribution of loans among individuals of different income levels, given the product lines offered by the covered mortgage licensee;

 

iii)        An adequate record of serving the mortgage credit needs of highly economically disadvantaged areas in the State and low-income individuals, including loans to assist existing low- and moderate-income residents to be able to acquire or remain in affordable housing in their neighborhoods at rates and terms that are reasonable considering the covered mortgage licensee's history with similarly situated borrowers consistent with safe and sound operations;

 

iv)        Limited use of innovative or flexible lending practices in a safe and sound manner to address the mortgage credit needs of low- and moderate-income individuals or geographies, including loans and other products to assist delinquent home mortgage borrowers to be able to remain in their homes;

 

v)         Mortgage products demonstrate an adequate suitability for low- and moderate-income individuals;

 

vi)        Its efforts are adequate in working with delinquent mortgage loan borrowers to facilitate a successful resolution of the delinquency, including an adequate number of loan modifications completed in a prompt manner and which are effective in preventing subsequent defaults or foreclosures;

 

vii)       There is no evidence of loans that show an undue concentration and a systematic pattern of lending, including early payment defaults, resulting in the loss of affordable housing units; and

 

viii)      An adequate record relative to fair lending policies and practices.

 

C)        Needs to improve. The Secretary rates a covered mortgage licensee's performance "needs to improve" if, in general, it demonstrates:

 

i)          A poor geographic distribution of loans, particularly to low- and moderate-income geographies, in the State;

 

ii)         A poor distribution of loans among individuals of different income levels, given the product lines offered by the covered mortgage licensee;

 

iii)        A poor record of serving the mortgage credit needs of highly economically disadvantaged areas in the State and low-income individuals, including loans to assist existing low- and moderate-income residents to be able to acquire or remain in affordable housing in their neighborhoods at rates and terms that are reasonable considering the covered mortgage licensee's history with similarly situated borrowers consistent with safe and sound operations;

 

iv)        Little use of innovative or flexible lending practices in a safe and sound manner to address the mortgage credit needs of low- and moderate-income individuals or geographies, including loans and other products to assist delinquent home mortgage borrowers to be able to remain in their homes;

 

v)         Mortgage products demonstrate a poor suitability for low- and moderate-income individuals;

 

vi)        Its efforts are poor in working with delinquent mortgage loan borrowers to facilitate a successful resolution of the delinquency, including slow responses to requests for modification with few loan modifications completed or for which modifications are not effective in preventing subsequent defaults or foreclosures;

 

vii)       There is possible evidence of loans that show an undue concentration and a systematic pattern of lending, including early payment defaults, resulting in the loss of affordable housing units; and

 

viii)      A poor record relative to fair lending policies and practices.

 

D)        Substantial noncompliance. The Secretary rates a covered mortgage licensee's performance as being in "substantial noncompliance" if, in general, it demonstrates:

 

i)          A very poor geographic distribution of loans, particularly to low- and moderate-income geographies, in the State;

 

ii)         A very poor distribution of loans among individuals of different income levels given the product lines offered by the covered mortgage licensee;

 

iii)        A very poor record of serving the mortgage credit needs of highly economically disadvantaged areas in the State and low-income individuals, including loans to assist existing low- and moderate-income residents to be able to acquire or remain in affordable housing in their neighborhoods, at rates and terms that are reasonable considering the covered mortgage licensee's history with similarly situated borrowers consistent with safe and sound operations;

 

iv)        No use of innovative or flexible lending practices in a safe and sound manner to address the mortgage credit needs of low- and moderate-income individuals or geographies, including loans and other products to assist delinquent home mortgage borrowers to be able to remain in their homes;

 

v)         Mortgage products are unsuitable for low- and moderate-income individuals;

 

vi)        It fails to work with delinquent mortgage loan borrowers to facilitate a successful resolution of the delinquency, including no response to requests for loan modifications or modifications which are ineffective in preventing subsequent defaults or foreclosures;

 

vii)       Origination of loans that show an undue concentration and a systematic pattern of lending, including early payment defaults, resulting in the loss of affordable housing units; and

 

viii)      A very poor record relative to fair lending policies and practices.

 

2)         Service performance rating. The Secretary assigns each covered mortgage licensee's service performance one of the four following ratings.

 

A)        Outstanding. The Secretary rates a covered mortgage licensee's service performance "outstanding" if, in general, the covered mortgage licensee demonstrates:

 

i)          It is a leader in providing community development services;

 

ii)         Its service delivery systems are readily accessible to geographies and individuals of different income levels in the State;

 

iii)        To the extent changes have been made, its record of opening and closing additional full-service offices has improved the accessibility of its delivery systems, particularly in low- and moderate-income geographies or to low- and moderate-income individuals; and

 

iv)        Its services (including, where appropriate, business hours) are tailored to the convenience and needs of the State, particularly low- and moderate-income geographies or low- and moderate-income individuals.

 

B)        Satisfactory. The Secretary rates a covered mortgage licensee's service performance "satisfactory" if, in general, the covered mortgage licensee demonstrates:

 

i)          It provides an adequate level of community development services;

 

ii)         Its service delivery systems are reasonably accessible to geographies and individuals of different income levels in the State;

 

iii)        To the extent changes have been made, its record of opening and closing additional full-service offices has generally not adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies and to low- and moderate-income individuals; and

 

iv)        Its services (including, where appropriate, business hours) do not vary in a way that inconveniences geographies or individuals, particularly low- and moderate-income geographies and low- and moderate-income individuals.

 

C)        Needs to improve. The Secretary rates a covered mortgage licensee's service performance "needs to improve" if, in general, the covered mortgage licensee demonstrates:

 

i)          It provides a limited level of community development services;

 

ii)         Its service delivery systems are unreasonably inaccessible to portions of the State, particularly to low- and moderate-income geographies or to low- and moderate-income individuals;

 

iii)        To the extent changes have been made, its record of opening and closing additional full-service offices has adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies or to low- and moderate- income individuals; and

 

iv)        Its services (including, where appropriate, business hours) vary in a way that inconveniences geographies or individuals, particularly low- and moderate-income geographies or low- and moderate-income individuals.

 

D)        Substantial noncompliance. The Secretary rates a covered mortgage licensee's service performance as being in "substantial noncompliance" if, in general, the covered mortgage licensee demonstrates:

 

i)          It provides few, if any, community development services;

 

ii)         Its service delivery systems are unreasonably inaccessible to significant portions of the State, particularly to low- and moderate-income geographies or to low- and moderate-income individuals;

 

iii)        To the extent changes have been made, its record of opening and closing additional full-service offices has significantly adversely affected the accessibility of its delivery systems, particularly in low- and moderate-income geographies or to low- and moderate-income individuals; and

 

iv)        Its services (including, where appropriate, business hours) vary in a way that significantly inconveniences geographies or individuals, particularly low- and moderate-income geographies or low- and moderate-income individuals.

 

3)         Other eligible criteria for an outstanding rating. A covered mortgage licensee that achieves at least a "satisfactory" rating under both the lending and service tests may warrant consideration for an overall rating of "outstanding". In assessing whether a covered mortgage licensee's performance is "outstanding", the Secretary will also consider the covered mortgage licensee's performance in making qualified investments and community development loans to the extent authorized under law.

 

Section 1055.APPENDIX B   CRA Notice

 

a)         Notice for main offices of covered mortgage licensees.

 

Community Reinvestment Act Notice

 

Under the Illinois Community Reinvestment Act (ILCRA), the Secretary of the Department of Financial and Professional Regulation (Secretary) evaluates our record of helping to meet the lending needs of this community consistent with safe and sound operations. The Secretary also takes this record into account when deciding on certain applications submitted by us.

 

Your involvement is encouraged.

 

You are entitled to certain information about our operations and our performance under the ILCRA, including, for example, information about our additional full-service office(s), such as their location and services provided at them; the public section of our most recent ILCRA Performance Evaluation, prepared by the Secretary; and comments received from the public relating to our performance in helping to meet community credit needs, as well as our responses to those comments. You may review this information today.

 

At least 30 days before the beginning of each quarter, the Secretary publishes a nationwide list of the covered mortgage licensees that are scheduled for ILCRA examination in that quarter. This list is available from the Secretary at 320 West Washington Street, 3^rd Floor, Springfield, IL  62786 and at 555 West Monroe Street, Suite 500, Chicago, IL  60661. You may send written comments about our performance in helping to meet community lending needs to (name and address of official at covered mortgage licensee) and the Secretary. You may also submit comments electronically through the Department's Web site at https://idfpr.illinois.gov/admin/cra.html. Your letter, together with any response by us, will be considered by the Secretary in evaluating our ILCRA performance and may be made public.

 

You may ask to look at any comments received by the Secretary. You may also request from the Secretary an announcement of our applications covered by the ILCRA filed with the Secretary.

 

b)         Notice for additional full-service offices.

 

Illinois Community Reinvestment Act Notice

 

Under the Illinois Community Reinvestment Act (ILCRA), the Secretary evaluates our record of helping to meet the lending needs of this community consistent with safe and sound operations. The Secretary also takes this record into account when deciding on certain applications submitted by us.

 

Your involvement is encouraged.

 

You are entitled to certain information about our operations and our performance under the ILCRA. You may review today the public section of our most recent ILCRA evaluation, prepared by the Secretary, and a list of services provided at this additional full-service office. You may also have access to the following additional information, which we will make available to you at this additional full-service office within five calendar days after you make a request to us:

 

1)         a map showing the assessment area containing this additional full-service office, which is the area in which the Secretary evaluates our ILCRA performance in this community;

 

2)         information about our additional full-service offices in this assessment area;

 

3)         a list of services we provide at those locations;

 

4)         data on our lending performance in this assessment area; and

 

5)         copies of all written comments received by us that specifically relate to our ILCRA performance in this assessment area, and any responses we have made to those comments. If we are operating under an approved strategic plan, you may also have access to a copy of the plan.

 

At least 30 days before the beginning of each quarter, the Secretary publishes a nationwide list of the covered mortgage licensees that are scheduled for ILCRA examination in that quarter. This list is available from the Secretary. You may send written comments about our performance in helping to meet community credit needs to (name and address of official at covered mortgage licensee) and the Secretary. You may also submit comments electronically through the Department's Web site at https://idfpr.illinois.gov/admin/cra.html. Your letter, together with any response by us, will be considered by the Secretary in evaluating our ILCRA performance and may be made public.

 

You may ask to look at any comments received by the Secretary. You may also request from the Secretary an announcement of our applications covered by the ILCRA filed with the Secretary.