Bill Summary: HB5542

• Changes references from "Nationwide Mortgage Licensing System and Registry" to "Nationwide Multistate Licensing System and Registry" throughout the Student Loan Servicing Rights Act and Residential Mortgage License Act of 1987

• Establishes exemptions for bona fide nonprofit organizations and their employees from residential mortgage licensing requirements, provided they promote affordable housing, operate for charitable purposes, and structure compensation to avoid conflicts of interest

• Modifies the Section 2-4 prohibited acts provision to reframe licensee obligations as affirmative violations rather than covenant breaches, changing language from "will" statements to direct prohibitions

• Updates residential mortgage licensing standards and procedures to align with federal Consumer Financial Protection Bureau disclosure requirements under the Truth in Lending Act and Real Estate Settlement Procedures Act

• Repeals Section 7-1 of the Residential Mortgage License Act regarding loan originator definitions, consolidating related provisions into Section 7-1A