SB279,4,43 (c) One person who is an agent of a mortgage banker registered under s. 224.72
4(1m).
SB279,4,55 (d) One person who represents the public interest.
SB279,4,66 (e) The secretary of financial institutions or his or her designee.
SB279, s. 3 7Section 3. 224.71 (1c) of the statutes is renumbered 224.71 (1e).
SB279, s. 4 8Section 4. 224.71 (1d) of the statutes is created to read:
SB279,4,119 224.71 (1d) "Consumer" means a person other than an organization, as defined
10in s. 421.301 (28), who seeks or acquires mortgage brokerage services for personal,
11family, or household purposes.
SB279, s. 5 12Section 5. 224.72 (3) (title) of the statutes is amended to read:
SB279,4,1413 224.72 (3) (title) Additional requirement requirements for loan originator
14applicant.
SB279, s. 6 15Section 6. 224.72 (3) of the statutes is renumbered 224.72 (3) (a).
SB279, s. 7 16Section 7. 224.72 (3) (b) of the statutes is created to read:
SB279,4,2217 224.72 (3) (b) In addition to the requirements of sub. (2), each applicant for
18registration as a loan originator shall pass a written examination, approved by the
19loan originator council, covering primary and subordinate mortgage financing
20transactions and the provisions of this subchapter. The examination shall be
21administered by the technical college system board or a professional trade
22association whose members include loan originators.
SB279, s. 8 23Section 8. 224.72 (3) (c) of the statutes is created to read:
SB279,5,224 224.72 (3) (c) The employer of each applicant for registration as a loan
25originator shall obtain a criminal history search relating to the applicant from the

1records maintained by the department of justice and submit the results of the search
2to the division.
SB279, s. 9 3Section 9. 224.72 (5) (a) of the statutes is amended to read:
SB279,5,84 224.72 (5) (a) Loan originator. Except as provided in sub. (7m), upon receiving
5a properly completed application for registration as a loan originator and the fee
6specified in rules promulgated under sub. (8) and upon an applicant's compliance
7with sub. (3) (a) and, if required, sub. (3) (b)
, the division may issue to the applicant
8a certificate of registration as a loan originator.
SB279, s. 10 9Section 10. 224.72 (7) (d) and (e) of the statutes are created to read:
SB279,5,1510 224.72 (7) (d) 1. Except as provided in subd. 2., an applicant for renewal of a
11certificate of registration as a loan originator shall, as part of the application, submit
12evidence that is satisfactory to the division that, during the 2 years preceding the
13date of application, the applicant has successfully completed at least 16 hours of
14education approved by the loan originator council covering primary and subordinate
15mortgage financing transactions and the provisions of this subchapter.
SB279,5,2316 2. No later than June 30 annually, the technical college system board or a
17professional trade association whose members include loan originators shall
18administer an examination or series of examinations, approved by the loan
19originator council, on the educational subjects required under subd. 1. Any applicant
20who, as part of the application, submits evidence that is satisfactory to the division
21that the applicant has passed the examination or series of examinations under this
22subdivision during the 2 years immediately preceding the date of application is not
23required to comply with subd. 1.
SB279,6,324 (e) If an applicant for renewal of a certificate of registration as a loan originator
25has changed employers since his or her criminal history was last searched under this

1paragraph or sub. (3) (c), the applicant's current employer shall obtain a criminal
2history search relating to the applicant from the records maintained by the
3department of justice and submit the results of the search to the division.
SB279, s. 11 4Section 11. 224.72 (7m) (intro.) of the statutes is amended to read:
SB279,6,75 224.72 (7m) Denial of application for issuance or renewal of registration.
6(intro.) The department division may not issue or renew a certificate of registration
7under this section if any of the following applies:
SB279, s. 12 8Section 12. 224.72 (7m) (am) of the statutes is created to read:
SB279,6,129 224.72 (7m) (am) The information provided to the division under sub. (3) (c)
10or (7) (e) indicates that the applicant has been convicted of a felony and, as a result
11of the conviction, the applicant represents an unreasonable risk of violating this
12subchapter, in the opinion of the division.
SB279, s. 13 13Section 13. 224.72 (7p) of the statutes is created to read:
SB279,6,1814 224.72 (7p) Rules for approval of competency examinations and continuing
15education.
The division shall promulgate rules establishing standards for the
16approval by the loan originator council of examinations in the law of mortgage
17banking and mortgage brokering under subs. (3) (b) and (7) (d) and the curricula of
18education under sub. (7) (d).
SB279, s. 14 19Section 14. 224.755 of the statutes is created to read:
SB279,6,25 20224.755 Continuing education and examination records. A loan
21originator shall keep records documenting compliance with s. 224.72 (7) (d) for at
22least 4 years. The technical college system board and any professional trade
23association that administers examinations or provides education under s. 224.72 (7)
24(d) shall maintain records documenting attendance and examination performance
25for at least 4 years.
SB279, s. 15
1Section 15. 224.77 (1m) (a) of the statutes is amended to read:
SB279,7,42 224.77 (1m) (a) The division may assess against a person who is registered
3under this chapter a forfeiture of not more than $1,000 $2,000 for each violation
4enumerated under sub. (1) (a) to (o) or (r).
SB279, s. 16 5Section 16. 224.79 of the statutes is created to read:
SB279,7,14 6224.79 Consumer mortgage brokerage agreements and consumer
7disclosures.
(1) Form and content of consumer mortgage brokerage agreements.
8Every contract between a mortgage broker and a consumer under which the
9mortgage broker agrees to provide brokerage services to the consumer shall be in
10writing, in the form prescribed by rule of the division, and shall contain all
11information required by rule of the division. The division shall promulgate rules to
12administer this subsection in consultation with the loan originator council under s.
1315.187 (1). The division shall design these rules to facilitate the comparison of
14similar charges and total charges assessed by different mortgage brokers.
SB279,8,2 15(2) Consumer disclosure statement. Before entering into a contract with a
16consumer to provide brokerage services, a mortgage broker shall give the consumer
17a copy of a consumer disclosure statement, explain the content of the statement, and
18ensure that the consumer initials or signs the statement, acknowledging that the
19consumer has read and understands the statement. The consumer disclosure
20statement shall contain a brief explanation of the relationship between the consumer
21and the mortgage broker under the proposed contract, a brief explanation of the
22manner in which the mortgage broker may be compensated under the proposed
23contract, and any additional information required by rule of the division. The
24division shall promulgate rules to administer this subsection in consultation with

1the loan originator council under s. 15.187 (1) and, by rule, shall specify the form and
2content of the consumer disclosure statement required under this subsection.
SB279, s. 17 3Section 17. 224.80 (1) of the statutes is amended to read:
SB279,8,74 224.80 (1) Penalties. A person who violates s. 224.72 (1m) may be fined not
5more than $1,000 $2,000 or imprisoned for not more than 6 9 months or both. The
6district attorney of the county where the violation occurs shall enforce the penalty
7under this subsection on behalf of the state.
SB279, s. 18 8Section 18. 224.80 (2) (a) 1. of the statutes is amended to read:
SB279,8,119 224.80 (2) (a) 1. Twice the amount of the cost of loan origination connected with
10the transaction, except that the liability under this subdivision may not be less than
11$100 nor greater than $1,000 $2,000 for each violation.
SB279, s. 19 12Section 19. Nonstatutory provisions.
SB279,8,1613 (1) Loan originator council; initial terms. Notwithstanding the length of
14terms specified for members of the loan originator council under section 15.187 (1)
15of the statutes, as created by this act, the initial members shall be appointed for the
16following terms:
SB279,8,1817 (a) The members specified under section 15.187 (1) (a) of the statutes, as
18created by this act, for terms expiring on July 1, 2005.
SB279,8,2019 (b) The members specified under section 15.187 (1) (b) to (d) of the statutes, as
20created by this act, for terms expiring on July 1, 2007.
SB279, s. 20 21Section 20. Initial applicability.
SB279,8,2422 (1) Competency examination. The treatment of section 224.72 (3) (b) of the
23statutes first applies to applications for a certificate of registration as a loan
24originator that are pending with the division of banking on July 2, 2004.
SB279,9,3
1(2) Continuing education. The treatment of section 224.72 (7) (d) of the
2statutes first applies to applications for renewal of a certificate of registration as a
3loan originator for the registration period beginning July 1, 2006.
SB279,9,44 (End)
Loading...
Loading...