Bill
SB 3235
SB 3235 requires data collectors for real estate appraisals tied to mortgages to hold a Real Estate Appraiser license, with criminal penalties for noncompliance.
Date Introduced: February 2, 2026
Sponsor: Sen. Bill Cunningham (co-sponsor)
Jurisdiction: Illinois
Bill title: REAL ESTATE-DATA COLLECTOR
Status and timeline notes:
- Amends the Real Estate Appraiser Licensing Act of 2002 (225 ILCS 458).
- Section 1-10 and 5-5 are amended; sections include a provision about a sunset for certain changes (the act references a repeal date of January 1, 2027, in the text for context).
- As of the latest action, the bill has undergone multiple committee amendments and is being referred within the Senate for consideration.
Purpose and main intent
- The bill establishes that acting as a data collector without a license issued under the Real Estate Appraiser Licensing Act would be unlawful.
- It explicitly defines “data collector” as a person hired by an appraisal management company (AMC) or mortgage lender to inspect and collect data and photographs of a specific tract of real estate, with the intent that the collected data will be provided to an appraiser solely for the preparation of an appraisal to support a mortgage.
Key provisions and changes
- Definition added: Data collector (Sec. 1-10)
- A data collector is an individual hired by an AMC or mortgage lender to gather data and pictures of a real estate tract for use by an appraiser to prepare an appraisal for a mortgage transaction.
- Prohibition on data collectors without a license (Sec. 5-5)
- It is unlawful to act as a data collector without a license under the Act.
- Violations of unlawfully acting as a data collector would be a Class A misdemeanor for a first offense and a Class 4 felony for subsequent offenses.
- Broad licensing framework remains in place
- The bill retains the existing licensing framework for real estate appraisers (State-certified general, State-certified residential, and associate trainee), along with related terminology (appraisal practice, appraisal management company, supervising appraiser, etc.).
- Scope of enforcement and penalties (Sec. 5-5)
- In addition to prohibiting data-collector activities without a license, the act reinforces penalties for other licensing violations, including misrepresentation of licensure (Class A misdemeanor for the first offense; Class 4 felony for subsequent offenses).
- Exemptions and related provisions retained
- The bill retains several existing exemptions and clarifications from the Act, including allowances for certain waivers, contexts where the appraisal license is not required (e.g., valuations prepared for specific governmental purposes or by certain public employees under defined conditions), and exclusions related to appraisal waivers and certain real estate professionals (brokers performing broker price opinions or comparative market analyses under defined circumstances).
Who would be affected
- Individuals acting or seeking to act as data collectors for appraisals in Illinois, when hired by an AMC or mortgage lender, would now need an appropriate license under the Real Estate Appraiser Licensing Act to legally perform data-collection activities.
- Appraisal management companies and mortgage lenders employing data collectors would need to ensure compliance and verification of licensure for data collectors.
- Licensed appraisers and supervising appraisers: Existing licensees remain governed by the Act; the new role (data collector) sits within the regulatory framework to ensure proper supervision and accountability.
Procedural and timeline aspects
- The bill is introduced for the 104th General Assembly and has progressed through committee stages, including amendments.
- The Act references a sunset/repeal note for certain provisions (January 1, 2027) in the text, which may inform ongoing legislative discussion about the duration or scope of changes; final disposition will depend on subsequent committee and floor actions and any potential amendments.
Bottom line
- SB 3235 adds a licensing requirement for data collectors who perform on-site data collection and photography for real estate appraisals tied to mortgage transactions, positioning data collectors within the Illinois real estate appraisal licensure regime and subjecting noncompliance to specified criminal penalties. It clarifies and reinforces regulatory oversight to address potential gaps in who can collect data used for appraisals.
Compiled from official sources — confirm details with the bill’s official record.
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