IBA Compliance Connection

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Are the mortgage loan originators (MLOs) at our bank subject to the recent amendment to the Civil Administrative Code that requires certain professionals licensed by the Illinois Department of Financial and Professional Regulation (IDFPR) to take sexual harassment prevention training? Our understanding is that this law applies only to professionals with continuing education requirements — which our MLOs do not have — but they do have to make annual attestations.

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No, we do not believe that your bank’s MLOs are subject to the new sexual harassment prevention training requirements in the Civil Administrative Code, provided they are registered with the Nationwide Mortgage Licensing System (NMLS). However, due to recently enacted amendments to the Illinois Human Rights Act, all private employers with at least one employee working in Illinois will be required to provide sexual harassment training to all their employees (including MLOs) at least once a year, beginning in 2020.

Under the recent amendment to the Civil Administrative Code, all professions licensed by the IDFPR that have continuing education requirements must include at least one hour of sexual harassment prevention training in their continuing education hours for license renewals on or after January 1, 2020. However, while MLOs are among the professions licensed by the IDFPR, MLOs employed by financial institutions are not required to obtain state-issued licenses from the IDFPR if they are registered with the NMLS. While federally-registered MLOs must make an annual attestation to the NMLS, they are not licensed by the IDFPR. Consequently, we do not believe that federally-registered MLOs employed at banks are subject to the same sexual harassment training requirements as state-licensed MLOs.

However, as noted above, all of your bank’s employees must complete annual sexual harassment prevention training beginning in 2020. A recent amendment to the Illinois Human Rights Act provide that every employer with employees in Illinois must provide sexual harassment training at least once a year, and a separate amendment to the definition of “employer” that becomes effective on July 1, 2020, will broaden the definition of “employer” to include any person employing one or more (rather than fifteen or more) employees.

The Illinois Department of Human Rights will create a model sexual harassment prevention training program that will be available to employers and the public online at no cost. Employers also may establish their own sexual harassment training program, provided it meets or exceeds the following minimum requirements:

“(1) an explanation of sexual harassment consistent with this Act;

(2) examples of conduct that constitutes unlawful sexual harassment;

(3) a summary of relevant federal and State statutory provisions concerning sexual harassment, including remedies available to victims of sexual harassment; and

(4) a summary of responsibilities of employers in the prevention, investigation, and corrective measures of sexual harassment.”

For resources related to our guidance, please see:

  • Illinois Human Rights Act, 775 ILCS 5/2-109(C) (effective January 1, 2020) (“Except for those employers subject to the requirements of Section 5-10.5 of the State Officials and Employees Ethics Act, every employer with employees working in this State shall use the model sexual harassment prevention training program created by the Department or establish its own sexual harassment prevention training program that equals or exceeds the minimum standards in subsection (B). The sexual harassment prevention training shall be provided at least once a year to all employees. For the purposes of satisfying the requirements under this Section, the Department’s model sexual harassment prevention training program may be used to supplement any existing program an employer is utilizing or develops.”)

[Current Law] (a) Any person employing 15 or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation;

[Effective July 1, 2020] (a) Any person employing one or more employees within Illinois during 20 or more calendar weeks within the calendar year of or preceding the alleged violation; . . .”)

  • Illinois Human Rights Act, 775 ILCS 5/2-109(B) (effective January 1, 2020) (“The Department shall produce a model sexual harassment prevention training program aimed at the prevention of sexual harassment in the workplace. The model program shall be made available to employers and to the public online at no cost. This model program shall include, at a minimum, the following:

(1) an explanation of sexual harassment consistent with this Act;

(2) examples of conduct that constitutes unlawful sexual harassment;

(3) a summary of relevant federal and State statutory provisions concerning sexual harassment, including remedies available to victims of sexual harassment; and

(4) a summary of responsibilities of employers in the prevention, investigation, and corrective measures of sexual harassment.”)

  • Civil Administrative Code (Department of Professional Regulation), 20 ILCS 2105/2105-15.5 (“(b) For license renewals occurring on or after January 1, 2020 for a profession that has continuing education requirements, the required continuing education hours shall include at least one hour of sexual harassment prevention training.”)
  • Civil Administrative Code (Department of Professional Regulation), 20 ILCS 2105/2105-5 (“‘License’ means a license, registration, certification, permit, or other authority purporting to be issued or conferred by the Department by virtue or authority of which the licensee has or claims the right to engage in a profession, trade, occupation, or operation of which the Department has jurisdiction.”)
  • Illinois Residential Mortgage License Act of 1987, 205 ILCS 635/1-3(a) (“No provision of this Act shall apply to an exempt person or entity as defined in items (1) and (1.5) of subsection (d) of Section 1-4 of this Act.”)
  • Illinois Residential Mortgage License Act of 1987, 205 ILCS 635/1-4(d)(1) (“‘Exempt person or entity’ shall mean the following: (1) . . . any national bank, federally chartered savings and loan association, federal savings bank, federal credit union; . . . any bank, savings and loan association, savings bank, or credit union organized under the laws of this or any other state; . . .”)
  • Illinois Residential Mortgage License Act of 1987, 205 ILCS 635/1-4(d)(1.5) (“Any employee of a person or entity mentioned in item (1) of this subsection, when acting for such person or entity, or any registered mortgage loan originator when acting for an entity described in subsection (tt) of this Section.”)
  • SAFE Act, 12 USC 5102(8) (“The term ‘registered loan originator’ means any individual who (A) meets the definition of loan originator and is an employee of (i) a depository institution; . . . and (B) is registered with, and maintains a unique identifier through, the Nationwide Mortgage Licensing System and Registry.”)
     
  • SAFE Act regulations, 12 CFR 1007.103(d) (“Required employee information —

(1) For purposes of the registration required by this section, a covered financial institution must require each employee who is a mortgage loan originator to submit to the Registry, or must submit on behalf of the employee, the following categories of information, to the extent this information is collected by the Registry: . . .

*     *     *     *     *

(2) An employee registering as a mortgage loan originator or renewing or updating his or her registration under this part, and not the employing covered financial institution or other employees of the covered financial institution, must:

*     *     *     *     *

  • (ii) Attest to the correctness of all information required by paragraph (d) of this section, whether submitted by the employee or on behalf of the employee by the employing covered financial institution; . . .”)