Does the state require a physical location within the state?
Licensed lenders are required to maintain at least one full service office in Illinois. However, in lieu of an in state office an out-of-state lender/servicer can submit an audited financial statement reflecting a net worth of at least $100,000 (which must be maintained at all times) as well as a fidelity bond of $100,000.

Is there individual loan officer licensing?
All loan originators as defined in the Illinois Residential Mortgage License Act must register annually with the Department. To be eligible for initial registration, a loan originator must successfully pass an examination. The initial registration fee is $125. The renewal fees are $100 annually.

What are lenders, brokers and loan officers called?
Illinois uses the terms loan brokers, licensed lenders and loan originators.

What is the cost of a license? Surety bond? Are there net worth requirements?
A residential mortgage license is required to broker, make, purchase, service, or sell mortgage loans. The license applicant must submit a nonrefundable investigation fee of $1,500 and a nonrefundable license fee of $1,200. An audited balance sheet, a surety bond of $20,000, and a fidelity bond of $100,000 for an out of state office must also be submitted. The license renewal fee is currently $2,700. The license must be renewed on the first anniversary of its issuance and every two years following. The minimum net worth requirement is $150,000 for mortgage lender licensees and $50,000 for mortgage broker licensees.

Is there a pre-licensing education requirement? Is there a test?
Loan originator applicants must pass a written examination prior to registration.

Is there a CE requirement?
Loan originators must complete 6 hours of continuing education requirements annually. The employing licensee is responsible for ensuring compliance with the education requirements for any originators it employs.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
Lenders and brokers are licensed under the Illinois Residential Mortgage License Act. An applicant should indicate its intended activities on its application for licensure.

Are there any state specific high cost loan provisions?
The Illinois High-Risk Home Loan Act became effective January 1, 2004. The act defines among other things a High-risk home loan. A high-risk home loan is defined as a home equity loan that meets one of the following thresholds:

APR test

The annual percentage rate (APR) at origination exceeds by more than 6 percentage points for first-lien mortgages and 8 percentage points for junior-lien mortgages, the yield on Treasury securities with comparable periods to maturity as of the 15th day of the month immediately preceding the month in which the loan application is received by the lender.

Points and fees test

The total points and fees payable by the consumer at or before loan closing exceeds the greater of 5 percent of the total loan amount or $800. The $800 figure is adjusted annually on January 1 by the annual percentage change in the consumer price index.