LRB-3681/2
TNF & JEO:skg:lpa
1995 - 1996 LEGISLATURE
February 14, 1996 - Introduced by Senators Buettner, Weeden, Schultz,
Clausing and Shibilski, cosponsored by Representatives Green, Harsdorf,
Olsen, Hanson, Baldus, Murat, Turner and R. Young. Referred to Committee
on Education and Financial Institutions.
SB547,1,4
1An Act to renumber and amend 440.85;
to amend 224.72 (5) (b) 1., 224.72 (7),
2440.72 (5) (b) 1. and 440.72 (7); and
to create 440.85 of the statutes;
relating
3to: the registration and regulation of certain nonprofit corporations as
4mortgage bankers, loan originators or loan solicitors.
Analysis by the Legislative Reference Bureau
Under current law, a lender must register as a mortgage banker with the
department of regulation and licensing (DORL) if the lender originates, sells or
services loans and is not exempt from registration. Loan originators and loan
solicitors must also register with DORL unless exempt from registration. A "loan"
is defined as a loan secured by a lien or mortgage, or equivalent security interest, on
real property.
The regulation of mortgage bankers, loan originators and loan solicitors by
DORL under current law does all of the following: provides general standards of
conduct which, if violated, could result in a revocation, suspension or limitation of
the registration; requires the retention of certain records by mortgage bankers and
loan solicitors; and requires the use of trust accounts for money deposited with
mortgage bankers, loan originators or loan solicitors.
This bill exempts from regulation by DORL any mortgage banker, loan
originator or loan solicitor that is a nonprofit corporation which provides services to
low-income individuals if the services are directly related to housing assistance. The
registration requirements of DORL continue to apply, except that such nonprofit
corporations are exempt from additional registration requirements that apply to
loan originators and mortgage bankers.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB547,2,83
224.72
(5) (b) 1. Upon receiving a properly completed application for
4registration as a mortgage banker, the fee specified sub. (8) (b) and
, except as
5provided in s. 224.85, satisfactory evidence of compliance with sub. (4), the
6department shall issue to the applicant a temporary certificate of registration as a
7mortgage banker. A temporary certificate of registration is valid for 6 months after
8the date of issuance.
SB547,2,1711
224.72
(7) Renewal of registration. A loan originator, loan solicitor or
12mortgage banker shall renew a certificate of registration by submitting to the
13department a renewal application and the applicable renewal fee specified under
14sub. (8) (c) on or before the applicable renewal date specified under sub. (8) (c).
An 15Except as provided in s. 224.85, an applicant for renewal of a certificate of
16registration as a mortgage banker shall, as part of the application, refile a bond that
17satisfies sub. (4) (b) or resubmit evidence that satisfies sub. (4) (a) or (c).
SB547, s. 3
18Section
3. 440.72 (5) (b) 1. of the statutes is amended to read:
SB547,3,319
440.72
(5) (b) 1. Upon receiving a properly completed application for
20registration as a mortgage banker, the fee specified in s. 440.05 (6) and
, except as
21provided in s. 440.85, satisfactory evidence of compliance with sub. (4), the
1department shall issue to the applicant a temporary certificate of registration as a
2mortgage banker. A temporary certificate of registration is valid for 6 months after
3the date of issuance.
SB547, s. 4
4Section
4. 440.72 (7) of the statutes is amended to read:
SB547,3,115
440.72
(7) Renewal of registration. A loan originator, loan solicitor or
6mortgage banker shall renew a certificate of registration by submitting to the
7department a renewal application and the applicable renewal fee specified under s.
8440.08 (2) (a) on or before the applicable renewal date specified under s. 440.08 (2)
9(a).
An Except as provided in s. 440.85, an applicant for renewal of a certificate of
10registration as a mortgage banker shall, as part of the application, refile a bond that
11satisfies sub. (4) (b) or resubmit evidence that satisfies sub. (4) (a) or (c).
SB547, s. 5
12Section
5. 440.85 of the statutes is created to read:
SB547,3,18
13440.85 Applicability of subchapter to certain nonprofit corporations. 14Except for registration under s. 440.72 (1m), (2), (5) and (7) and discipline under s.
15440.77 (1) (a) and (4), this subchapter does not apply to a mortgage banker, loan
16originator or loan solicitor that is a nonprofit corporation organized under ch. 181
17that provides services to low-income individuals directly related to housing
18assistance.
SB547, s. 6
19Section
6. 440.85 of the statutes, as created by 1995 Wisconsin Act .... (this
20act), is renumbered 224.85 and amended to read:
SB547,4,2
21224.85 Applicability of subchapter to certain nonprofit corporations. 22Except for registration under s.
440.72 224.72 (1m), (2), (5) and (7) and discipline
23under s.
440.77 224.77 (1) (a) and (4), this subchapter does not apply to a mortgage
24banker, loan originator or loan solicitor that is a nonprofit corporation organized
1under ch. 181 that provides services to low-income individuals directly related to
2housing assistance.
SB547, s. 7
3Section
7.
Effective date. This act takes effect on the day after publication,
4except as follows:
SB547,4,7
5(1)
The treatment of section 224.72 (5) (b) 1. and (7) of the statutes and the
6renumbering and amendment of section 440.85 of the statutes take effect on July 1,
71996, or on the day after publication, whichever is later.
