Illinois Disciplinary Action (10%)

Question 1

The Directors “composite ratings” system: Composite 1

Answer 1

No violations or only minor violations are found, and the next examination will occur in 36 months.

Question 2

The Directors “composite ratings” system: Composite 2

Answer 2

The violations found are “correctable in the normal course of business,” and the next examination will occur in 36 months.

Question 3

The Directors “composite ratings” system: Composite 3

Answer 3

The violations found require remedial action to correct compliance, operational, or financial weaknesses, and the next examination will occur in 24 months.

Question 4

The Directors “composite ratings” system: Composite 4

Answer 4

The violations found “…require urgent and decisive corrective measures…” and the next examination will occur in 12 months.

Question 5

The Directors “composite ratings” system: Composite 5

Answer 5

The violations and deficiencies found are serious enough to require conservatorship or license suspension or revocation and the entity will be subject to continual monitoring for implementation of immediate remedial action. The regulations cite failures to maintain minimum net worth requirements, failure to maintain surety bonds, fraudulent license applications, and fraudulent lending practices as examples of violations that will trigger this level of scrutiny.

Question 6

Licensees are responsible for the costs of examinations. Under IDFPR regulations, the fees are how much per day?

Answer 6

$510.00 per examiner per day.

-The IDFPR will send a bill to the licensee when an examination is complete, and the licensee must remit payment within thirty days. Licensees must also pay the costs of out of state travel

Question 7

There are specific provisions in the RMLA that allow the IDFPR to examine licensees with a default rate that is __ or more

Answer 7

5%

Question 8

How many days must a licensee request a hearing?

Answer 8

 File a written request for a hearing within ten days of the receipt of an order or notice of action taken by the IDFPR
 Provide the request in typewritten form on 8 ½ x 11 inch white paper
 Send the notice to Director of the IDFPR at 500 East Monroe Street/Suite 800 in Springfield

Question 9

When the IDFPR processes a request for a hearing, it must issue a notice of hearing, which must take place within ____ ____ after issuing the service of notice

Answer 9

thirty days

Question 10

What is the nonrefundable fee of a hearing or Licensees? MLOs?

Answer 10

it is $500.00 for residential mortgage licensees and $250.00 for MLOs

Question 11

The IDFPR can also suspend or revoke a license or put a licensee on probation if any of the following acts occur:

Answer 11

 Conviction for any crime that involves fraud, dishonest dealing, or moral turpitude
 Use of fraud, misrepresentation, or deceit in any mortgage lending transaction
 Intentional misstatement of fact on an initial or renewal application
 Failure to place funds in escrow accounts
 Insolvency or bankruptcy
 Failure to account for or deliver any funds, checks, or other things of value that are in the possession of the licensee
 Failure to disburse funds according to agreements
 Misuse or misappropriation of trust funds or escrow funds
 Revocation or suspension of any professional license
 Failure to issue a satisfaction of mortgage when require
 Failure to comply with an order issued from the IDFPR
 Participation in regulated mortgage lending activities without a license
 Failure to cooperate with an investigation
 Pattern of substantially underestimating closing costs
 Failure to comply with the RMLA

Question 12

The IDFPR can issue an order for the emergency suspension of a license for ___ days, pending an investigation. Such an order must be based on “good cause shown that an emergency exists.”

Answer 12

180

Question 13

The IDFPR can issue fines of up to _______ against a residential mortgage licensee for failing to follow orders issued by the IDFPR Director and for any of the specific violations listed in the foregoing section

Answer 13

$25,000

Question 14

the Director to impose the following fines against MLOs for violations of the RMLA and for violations of other laws and regulations that are applicable to the mortgage lending business:

Answer 14

 $1,000, for each day that an MLO violates the law

 $2,000 per day, when an MLO demonstrates a pattern of repeated violations

Question 15

which is punishable by one year of imprisonment and a penalty of $2500.00.

Answer 15

Class A misdemeanor

Question 16

for second or other subsequent violations of the law, which is punishable by one to three years and fines of up to $25,000.00

Answer 16

Class 4 felony

Question 17

Of particular concern is a provision in the RMLA, which states that the failure to provide reports required under the law or as requested by the Director is a

Answer 17

Class 4 Felony. It is also a felony to deliberately, willfully, or knowingly include false entries or information in reports “…with intent to deceive the Director…” or to “…purposefully cause unreasonable delay in filing such reports…”