Register December 2009 No. 648

Chapter DFI-Bkg 45

EDUCATION AND EXAMINATION

DFI-Bkg 45.01       Standards for education for loan originators.

DFI-Bkg 45.02       Standards for education for loan solicitors.

DFI-Bkg 45.03       Course testing.

DFI-Bkg 45.04       Compliance.

DFI-Bkg 45.05       Standards for competency examinations.

DFI-Bkg 45.06       Compliance.

DFI-Bkg 45.07       Requirements for approval of providers.

DFI-Bkg 45.08       Requirements for approval of courses.

DFI-Bkg 45.09       Evidence of attendance for continuing education courses.

DFI-Bkg 45.10       Investigation and review.

Ch. DFI-Bkg 45 Note Note: Chapter DFI-Bkg 45 as it exists on December 31, 2010 is repealed, effective January 1, 2011.

DFI-Bkg 45.01 DFI-Bkg 45.01  Standards for education for loan originators.

DFI-Bkg 45.01(1) (1)  Subjects. The following subjects qualify for the loan originator education required by s. 224.72 (7) (d) 1., Stats.:

DFI-Bkg 45.01 Note Note: Section 224.72 (7) (d), Stats., was repealed effective 1-1-10.

DFI-Bkg 45.01(1)(a) (a) State and federal law.

DFI-Bkg 45.01(1)(a)1. 1. The provisions of subch. III of ch. 224, Stats.; ch. 428, Stats.; ss. 138.052 to 138.06, Stats.; and chs. DFI-Bkg 40 to 46.

DFI-Bkg 45.01(1)(a)2. 2. The Fair Housing Act, the Equal Credit Opportunity Act (ECOA), the Home Mortgage Disclosure Act (HMDA) and other fair lending laws.

DFI-Bkg 45.01(1)(a)3. 3. The Home Ownership Equity Protection Act (HOEPA).

DFI-Bkg 45.01(1)(a)4. 4. The Truth in Lending Act, Regulation Z and the Commentary to Regulation Z.

DFI-Bkg 45.01(1)(a)5. 5. The Real Estate Settlement Procedures Act (RESPA).

DFI-Bkg 45.01(1)(a)6. 6. The Fair Credit Reporting Act (FCRA).

DFI-Bkg 45.01(1)(a)7. 7. Federal National Mortgage Association (FNMA or Fannie Mae) guidelines.

DFI-Bkg 45.01(1)(a)8. 8. Government National Mortgage Association (GNMA or Ginnie Mae) guidelines.

DFI-Bkg 45.01(1)(a)9. 9. Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) guidelines.

DFI-Bkg 45.01(1)(b) (b) Practice and procedure.

DFI-Bkg 45.01(1)(b)1. 1. Loan origination procedures, including pre-qualifying borrowers, residential loan applications, underwriting standards, mortgage loan packaging, loan documentation, loan closings and loan servicing.

DFI-Bkg 45.01(1)(b)2. 2. Types of mortgage loans, including Federal Housing Authority (FHA) and Veterans Administration (VA) loans.

DFI-Bkg 45.01(1)(b)3. 3. U.S. Department of Housing and Urban Development (HUD) closing statement.

DFI-Bkg 45.01(1)(b)4. 4. Brokerage fees and limitations.

DFI-Bkg 45.01(1)(b)5. 5. Prepayment penalties.

DFI-Bkg 45.01(1)(b)6. 6. Appraisal analysis, review, standards and underwriting.

DFI-Bkg 45.01(1)(b)7. 7. Credit scoring, open-end credit, closed-end credit.

DFI-Bkg 45.01(1)(b)8. 8. Subprime lending, including high cost and other covered loans.

DFI-Bkg 45.01(1)(b)9. 9. Commercial lending.

DFI-Bkg 45.01(1)(b)10. 10. Fraud detection and prevention.

DFI-Bkg 45.01(1)(b)11. 11. Predatory lending.

DFI-Bkg 45.01(1)(c) (c) Actions and ethics.

DFI-Bkg 45.01(1)(c)1. 1. Administrative actions and criminal penalties under subch. III of ch. 224, Stats., and ch. 428, Stats.

DFI-Bkg 45.01(1)(c)2. 2. Ethics for loan originators.

DFI-Bkg 45.01(1)(d) (d) Developments. New developments in the law, practice and procedure.

DFI-Bkg 45.01(1)(e) (e) Other. Such other subjects submitted by the division to, and subsequently approved by, the loan originator council.

DFI-Bkg 45.01(2) (2) Hours. The loan originator education requirement under s. 224.72 (7) (d) 1., Stats., shall be met with 16 hours of education in the subjects listed under sub. (1) (a) to (e), with a minimum of 2 of those hours to be met by the subjects listed under sub. (1) (d).

DFI-Bkg 45.01 Note Note: Section 224.72 (7) (d), Stats., was repealed effective 1-1-10.

DFI-Bkg 45.01 History History: CR 05-012: cr. Register June 2005 No. 594, eff. 7-1-05; CR 09-060: r. Register December 2009 No. 648, eff. 1-1-11.

DFI-Bkg 45.02 DFI-Bkg 45.02  Standards for education for loan solicitors.

DFI-Bkg 45.02(1) (1)  Subjects. The following subjects qualify for the loan solicitor education required by s. 224.72 (7) (d) 1., Stats.:

DFI-Bkg 45.02 Note Note: Section 224.72 (7) (d), Stats., was repealed effective 1-1-10.

DFI-Bkg 45.02(1)(a) (a) State and federal law.

DFI-Bkg 45.02(1)(a)1. 1. The provisions of subch III of ch. 224, Stats.; ch. 428, Stats.; ss. 138.052 to 138.06, Stats.; and chs. DFI-Bkg 40 to 46.

DFI-Bkg 45.02(1)(a)2. 2. The Fair Housing Act, the Equal Credit Opportunity Act (ECOA), the Home Mortgage Disclosure Act (HMDA) and other fair lending laws.

DFI-Bkg 45.02(1)(a)3. 3. The Home Ownership Equity Protection Act (HOEPA).

DFI-Bkg 45.02(1)(a)4. 4. The Truth in Lending Act, Regulation Z and the Commentary to Regulation Z.

DFI-Bkg 45.02(1)(a)5. 5. The Real Estate Settlement Procedures Act (RESPA).

DFI-Bkg 45.02(1)(a)6. 6. The Fair Credit Reporting Act (FCRA).

DFI-Bkg 45.02(1)(a)7. 7. Role of government sponsored enterprises in the mortgage market.

DFI-Bkg 45.02(1)(b) (b) Practice and procedure.

DFI-Bkg 45.02(1)(b)1. 1. Loan origination procedures, including pre-qualifying borrowers, residential loan applications and loan documentation.

DFI-Bkg 45.02(1)(b)2. 2. Types of mortgage loans, including Federal Housing Authority (FHA) and Veterans Administration (VA) loans.

DFI-Bkg 45.02(1)(b)3. 3. Brokerage fees and limitations.

DFI-Bkg 45.02(1)(b)4. 4. Credit scoring, open-end credit, closed-end credit.

DFI-Bkg 45.02(1)(b)5. 5. Fraud detection and prevention.

DFI-Bkg 45.02(1)(c) (c) Actions and ethics.

DFI-Bkg 45.02(1)(c)1. 1. Administrative actions and criminal penalties under subch. III of ch. 224, Stats., and ch. 428, Stats.

DFI-Bkg 45.02(1)(c)2. 2. Ethics for loan originators.

DFI-Bkg 45.02(1)(d) (d) Developments. New developments in the law, practice and procedure.

DFI-Bkg 45.02(1)(e) (e) Other. Such other subjects submitted by the division to, and subsequently approved by, the loan originator council.

DFI-Bkg 45.02(2) (2) Hours. The loan solicitor education requirement under s. 224.72 (7) (d) 1., Stats., shall be met with 12 hours of education in the subjects listed under sub. (1) (a) to (e), with a minimum of 2 of those hours to be met by the subjects listed under sub. (1) (d).

DFI-Bkg 45.02 Note Note: Section 224.72 (7) (d), Stats., was repealed effective 1-1-10.

DFI-Bkg 45.02 History History: CR 05-012: cr. Register June 2005 No. 594, eff. 7-1-05; CR 09-060: r. Register December 2009 No. 648, eff. 1-1-11.

DFI-Bkg 45.03 DFI-Bkg 45.03  Course testing. Every education course under s. 224.72 (7) (d) 1., Stats., shall include a closed-book test, to be administered at the course, of the materials presented at the course.

DFI-Bkg 45.03 Note Note: Section 224.72 (7) (d), Stats., was repealed effective 1-1-10.

DFI-Bkg 45.03 History History: CR 05-012: cr. Register June 2005 No. 594, eff. 7-1-05; CR 09-060: r. Register December 2009 No. 648, eff. 1-1-11.

DFI-Bkg 45.04 DFI-Bkg 45.04 Compliance. An applicant shall submit evidence, in a form and manner prescribed by and satisfactory to the division, that the applicant has met the education requirements of s. 224.72 (7) (d) 1., Stats.

DFI-Bkg 45.04 Note Note: Section 224.72 (7) (d), Stats., was repealed effective 1-1-10.