2013 WISCONSIN ACT 360
An Act to repeal 224.71 (3) (b) (intro.) and 7., 224.71 (6) (b) (intro.) and 4., 224.72 (4n), 224.725 (2) (d), 224.726 (intro.), (1) (intro.), (2) and (3), 224.73 (4) (title) and (a) and 224.83; to renumber 224.71 (3) (b) 8., 224.71 (3) (b) 9., 224.71 (3) (b) 10., 224.71 (3) (b) 11., 224.71 (3) (b) 12., 224.71 (6) (b) 2., 224.71 (6) (b) 3., 224.72 (2m) and 224.726 (1) (a) and (b); to renumber and amend 224.71 (3) (a) (intro.), 1., 2. and 3., 224.71 (6) (a) (intro.), 1. and 2., 224.71 (6) (b) 1., 224.726 (4) and 224.73 (4) (b); to amend 224.71 (1c), 224.71 (1f), 224.71 (1h), 224.71 (2) (intro.), 224.71 (7), 224.71 (13) (c), 224.72 (1m), 224.72 (2) (c) 2., 224.72 (4) (a) 2., 224.725 (1), 224.725 (3) (b), 224.725 (4) (a), 224.73 (title), 224.73 (1), 224.73 (2), 224.73 (3), 224.74 (title), 224.74 (1) (title), 224.74 (1) (a), 224.74 (1) (b), 224.75 (2), 224.755 (4) (d), 224.755 (4) (e), 224.77 (title), 224.77 (1) (intro.), 224.77 (1) (f), 224.77 (1) (fg), 224.77 (1) (g), 224.77 (1) (gd), 224.77 (1) (gh), 224.77 (2m) (a) 1. (intro.), a. and b. and 943.80 (2); to repeal and recreate 224.71 (4); and to create 224.71 (1br), 224.71 (1g), 224.71 (1gh), 224.71 (1r), 224.71 (13c), 224.71 (13g) (intro.), 224.71 (13m), 224.72 (1r) (intro.), (c), (e) and (f), 224.72 (2m) (b) and (c), 224.722, 224.725 (1m) (intro.), (a), (b), (f) and (g) 1., 2. and 3., 224.73 (5), 224.74 (1) (bm) and 224.77 (1) (sm) and (sq) of the statutes; relating to: the regulation of mortgage loan originators, mortgage brokers, and mortgage bankers.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
360,1
Section
1. 224.71 (1br) of the statutes is created to read:
224.71
(1br) "Bona fide nonprofit organization" means an organization that is described in section
501 (c) (3) of the Internal Revenue Code and exempt from federal income tax under section
501 (a) of the Internal Revenue Code, that is certified by the federal department of housing and urban development or the Wisconsin Housing and Economic Development Authority, and that does all of the following:
(a) Promotes affordable housing or provides home ownership education or similar services.
(b) Conducts its activities in a manner that serves public or charitable purposes.
(c) Receives funding and revenue and charges fees in a manner that does not create an incentive for itself or its employees to act other than in the best interests of its clients.
(d) Compensates its employees in a manner that does not create an incentive for its employees to act other than in the best interests of its clients.
(e) Provides to, or identifies for, the borrower residential mortgage loans with terms favorable to the borrower and comparable to residential mortgage loans and housing assistance provided under government housing assistance programs.
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2. 224.71 (1c) of the statutes is amended to read:
224.71 (1c) "Branch office" means an office or place of business, other than the principal office, located in this state or another state, where a mortgage loan originator, mortgage banker, or mortgage broker conducts business with residents of this state engages in the mortgage loan business subject to this subchapter.
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3. 224.71 (1f) of the statutes is amended to read:
224.71
(1f) "Dwelling" has the meaning given in
15 USC 1602 (v) (w).
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Section
4. 224.71 (1g) of the statutes is created to read:
224.71 (1g) "Employee" means an individual whose manner and means of performance of work are subject to the right of control of, or are controlled by, a person, and whose compensation for federal income tax purposes is reported, or required to be reported, on a W-2 form issued by the controlling person.
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5. 224.71 (1gh) of the statutes is created to read:
224.71 (1gh) (a) Except as provided in par. (b), "expungement" means to have stricken or obliterated from a record of criminal conviction all references to the defendant's name and identity.
(b) For a criminal conviction entered in another state, "expungement" has the meaning given under the laws of the state where the criminal conviction is entered.
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Section
6. 224.71 (1h) of the statutes is amended to read:
224.71 (1h) "Federal banking agency" means the board of governors of the federal reserve system, the U.S. office of the comptroller of the currency, the U.S. office of thrift supervision, the national credit union administration, or the federal deposit insurance corporation.
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7. 224.71 (1r) of the statutes is created to read:
224.71 (1r) "Housing finance agency" means any authority that is all of the following:
(a) Chartered by a state to help meet the affordable housing needs of the residents of the state.
(b) Supervised directly or indirectly by the state government.
(c) Subject to audit and review by the state in which it operates.
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Section
8. 224.71 (2) (intro.) of the statutes is amended to read:
224.71 (2) (intro.) "Loan processor or underwriter" means an individual who, as an employee, performs clerical or support duties at the direction of and subject to the supervision and instruction of a mortgage loan originator licensed under s. 224.725 or exempt from licensing under s. 224.726 (1) 224.725 (1m), which clerical or support duties may include any of the following occurring subsequent to the receipt of a residential mortgage loan application:
360,9
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9. 224.71 (3) (a) (intro.), 1., 2. and 3. of the statutes are renumbered 224.71 (3) (intro.), (c), (d) and (e), and 224.71 (3) (intro.), as renumbered, is amended to read:
224.71 (3) (intro.) "Mortgage banker" means a person who is not excluded by par. (b) and who does any of the following:
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10. 224.71 (3) (b) (intro.) and 7. of the statutes are repealed.
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11. 224.71 (3) (b) 8. of the statutes is renumbered 224.72 (1r) (a).
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12. 224.71 (3) (b) 9. of the statutes is renumbered 224.72 (1r) (b).
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Section
13. 224.71 (3) (b) 10. of the statutes is renumbered 224.72 (1r) (d).
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Section
14. 224.71 (3) (b) 11. of the statutes is renumbered 224.72 (1r) (g).
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Section
15. 224.71 (3) (b) 12. of the statutes is renumbered 224.72 (1r) (h).
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Section
16. 224.71 (4) of the statutes is repealed and recreated to read:
224.71 (4) "Mortgage broker" means a person who, for compensation or gain or in the expectation of compensation or gain, does any of the following but does not make an underwriting decision or close a residential mortgage loan:
(a) Assists a person in obtaining or applying to obtain a residential mortgage loan.
(b) Holds himself, herself, or itself out as being able to assist a person in obtaining or applying to obtain a residential mortgage loan.
(c) Engages in table funding.
360,17
Section
17. 224.71 (6) (a) (intro.), 1. and 2. of the statutes are renumbered 224.71 (6) (intro.), (c) and (d), and 224.71 (6) (intro.), as renumbered, is amended to read:
224.71 (6) (intro.) "Mortgage loan originator" means an individual who is not excluded by par. (b) and who, for compensation or gain or in the expectation of compensation or gain, does any of the following:
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18. 224.71 (6) (b) (intro.) and 4. of the statutes are repealed.
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19. 224.71 (6) (b) 1. of the statutes is renumbered 224.725 (1m) (c) and amended to read:
224.725 (1m) (c) An individual engaged solely as a loan processor or underwriter, unless the individual is an independent contractor or represents to the public, through advertising or another means of communication such as the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.
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20. 224.71 (6) (b) 2. of the statutes is renumbered 224.725 (1m) (d).
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Section
21. 224.71 (6) (b) 3. of the statutes is renumbered 224.725 (1m) (e).
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Section
23. 224.71 (7) of the statutes is amended to read:
224.71
(7) "Nationwide mortgage licensing system and registry" means the licensing and registration system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for licensed mortgage loan originators and mortgage loan originators exempt from licensing under s.
224.726 (1) 224.725 (1m) or, if this system is no longer maintained, any system established by the secretary of the federal department of housing and urban development under P.L.
110-289, Title V, section 1509.
360,25
Section
25. 224.71 (13) (c) of the statutes is amended to read:
224.71 (13) (c) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing for the transaction. For purposes of this paragraph, providing financing for the transaction does not include use by a licensee under s. 452.03 of forms approved under s. REEB 16.03, Wis. Adm. Code.
360,26
Section
26. 224.71 (13c) of the statutes is created to read:
224.71 (13c) "Registered entity" means a depository institution that voluntarily registers with the division for the purpose of sponsoring licensed mortgage loan originators that are under the depository institution's direct supervision and control.
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27. 224.71 (13g) (intro.) of the statutes is created to read:
224.71 (13g) "Registered mortgage loan originator" means any individual who is all of the following:
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28. 224.71 (13m) of the statutes is created to read:
