AB678,3 20Section 3. 224.71 (1f) of the statutes is amended to read:
AB678,5,2121 224.71 (1f) "Dwelling" has the meaning given in 15 USC 1602 (v) (w).
AB678,4 22Section 4. 224.71 (1g) of the statutes is created to read:
AB678,6,223 224.71 (1g) "Employee" means an individual whose manner and means of
24performance of work are subject to the right of control of, or are controlled by, a

1person, and whose compensation for federal income tax purposes is reported, or
2required to be reported, on a W-2 form issued by the controlling person.
AB678,5 3Section 5. 224.71 (1gh) of the statutes is created to read:
AB678,6,64 224.71 (1gh) (a) Except as provided in par. (b), "expungement" means to have
5stricken or obliterated from a record of criminal conviction all references to the
6defendant's name and identity.
AB678,6,87 (b) For a criminal conviction entered in another state, "expungement" has the
8meaning given under the laws of the state where the criminal conviction is entered.
AB678,6 9Section 6. 224.71 (1h) of the statutes is amended to read:
AB678,6,1310 224.71 (1h) "Federal banking agency" means the board of governors of the
11federal reserve system, the U.S. office of the comptroller of the currency, the U.S.
12office of thrift supervision,
the national credit union administration, or the federal
13deposit insurance corporation.
AB678,7 14Section 7. 224.71 (1r) of the statutes is created to read:
AB678,6,1615 224.71 (1r) "Housing finance agency" means any authority that is all of the
16following:
AB678,6,1817 (a) Chartered by a state to help meet the affordable housing needs of the
18residents of the state.
AB678,6,1919 (b) Supervised directly or indirectly by the state government.
AB678,6,2020 (c) Subject to audit and review by the state in which it operates.
AB678,8 21Section 8. 224.71 (2) (intro.) of the statutes is amended to read:
AB678,7,222 224.71 (2) (intro.) "Loan processor or underwriter" means an individual who,
23as an employee, performs clerical or support duties at the direction of and subject to
24the supervision and instruction of a mortgage loan originator licensed under s.
25224.725 or exempt from licensing under s. 224.726 (1) 224.725 (1m), which clerical

1or support duties may include any of the following occurring subsequent to the
2receipt of a residential mortgage loan application:
AB678,9 3Section 9. 224.71 (3) (a) (intro.), 1., 2. and 3. of the statutes are renumbered
4224.71 (3) (intro.), (c), (d) and (e), and 224.71 (3) (intro.), as renumbered, is amended
5to read:
AB678,7,76 224.71 (3) (intro.) "Mortgage banker" means a person who is not excluded by
7par. (b) and who
does any of the following:
AB678,10 8Section 10. 224.71 (3) (b) (intro.) and 7. of the statutes are repealed.
AB678,11 9Section 11. 224.71 (3) (b) 8. of the statutes is renumbered 224.72 (1r) (a).
AB678,12 10Section 12. 224.71 (3) (b) 9. of the statutes is renumbered 224.72 (1r) (b).
AB678,13 11Section 13. 224.71 (3) (b) 10. of the statutes is renumbered 224.72 (1r) (d).
AB678,14 12Section 14. 224.71 (3) (b) 11. of the statutes is renumbered 224.72 (1r) (g).
AB678,15 13Section 15. 224.71 (3) (b) 12. of the statutes is renumbered 224.72 (1r) (h).
AB678,16 14Section 16. 224.71 (4) of the statutes is repealed and recreated to read:
AB678,7,1715 224.71 (4) "Mortgage broker" means a person who, for compensation or gain
16or in the expectation of compensation or gain, does any of the following but does not
17make an underwriting decision or close a residential mortgage loan:
AB678,7,1918 (a) Assists a person in obtaining or applying to obtain a residential mortgage
19loan.
AB678,7,2120 (b) Holds himself, herself, or itself out as being able to assist a person in
21obtaining or applying to obtain a residential mortgage loan.
AB678,7,2222 (c) Engages in table funding.
AB678,17 23Section 17. 224.71 (6) (a) (intro.), 1. and 2. of the statutes are renumbered
24224.71 (6) (intro.), (c) and (d) (intro.), and 224.71 (6) (intro.) and (d) (intro.), as
25renumbered, are amended to read:
AB678,8,3
1224.71 (6) (intro.) "Mortgage loan originator" means an individual who is not
2excluded by par. (b) and
who, for compensation or gain or in the expectation of
3compensation or gain, does any of the following:
AB678,8,64 (d) (intro.) Offers or negotiates terms of a residential mortgage loan. For
5purposes of this paragraph, an individual offers or negotiates terms of a residential
6mortgage loan if the individual does any of the following:
AB678,18 7Section 18. 224.71 (6) (b) (intro.) and 4. of the statutes are repealed.
AB678,19 8Section 19. 224.71 (6) (b) 1. of the statutes is renumbered 224.725 (1m) (c) and
9amended to read:
AB678,8,1510 224.725 (1m) (c) An individual engaged solely as a loan processor or
11underwriter, unless the individual is an independent contractor or represents to the
12public, through advertising or another means of communication such as the use of
13business cards, stationery, brochures, signs, rate lists, or other promotional items,
14that the individual can or will perform any of the activities of a mortgage loan
15originator.
AB678,20 16Section 20. 224.71 (6) (b) 2. of the statutes is renumbered 224.725 (1m) (d).
AB678,21 17Section 21. 224.71 (6) (b) 3. of the statutes is renumbered 224.725 (1m) (e).
AB678,22 18Section 22. 224.71 (6) (d) 1., 2. and 3. of the statutes are created to read:
AB678,8,2019 224.71 (6) (d) 1. Discusses, explains, or presents for consideration by a
20borrower or prospective borrower particular residential mortgage loan terms.
AB678,8,2321 2. Communicates directly or indirectly with a borrower or prospective borrower
22for the purpose of reaching a mutual understanding about prospective residential
23mortgage loan terms.
AB678,8,2524 3. Recommends, or refers a borrower or prospective borrower to, a particular
25lender or recommends a set of residential mortgage loan terms.
AB678,23
1Section 23. 224.71 (7) of the statutes is amended to read:
AB678,9,82 224.71 (7) "Nationwide mortgage licensing system and registry" means the
3licensing and registration system developed and maintained by the Conference of
4State Bank Supervisors and the American Association of Residential Mortgage
5Regulators for licensed mortgage loan originators and mortgage loan originators
6exempt from licensing under s. 224.726 (1) 224.725 (1m) or, if this system is no longer
7maintained, any system established by the secretary of the federal department of
8housing and urban development under P.L. 110-289, Title V, section 1509.
AB678,24 9Section 24. 224.71 (8) of the statutes is repealed.
AB678,25 10Section 25. 224.71 (13) (c) of the statutes is amended to read:
AB678,9,1511 224.71 (13) (c) Negotiating, on behalf of any party, any portion of a contract
12relating to the sale, purchase, lease, rental, or exchange of real property, other than
13in connection with providing financing for the transaction. For purposes of this
14paragraph, providing financing for the transaction does not include use by a licensee
15under s. 452.03 of forms approved under s. REEB 16.03, Wis. Adm. Code.
AB678,26 16Section 26. 224.71 (13c) of the statutes is created to read:
AB678,9,2017 224.71 (13c) "Registered entity" means a depository institution that
18voluntarily registers with the division for the purpose of sponsoring licensed
19mortgage loan originators that are under the depository institution's direct
20supervision and control.
AB678,27 21Section 27. 224.71 (13g) (intro.) of the statutes is created to read:
AB678,9,2322 224.71 (13g) "Registered mortgage loan originator" means any individual who
23is all of the following:
AB678,28 24Section 28. 224.71 (13m) of the statutes is created to read:
AB678,10,2
1224.71 (13m) "Regularly engage," with respect to an individual, means that
2any of the following applies:
AB678,10,73 (a) The individual engaged in the business of a mortgage loan originator on
4more than 5 residential mortgage loans, in this state or another state, in the previous
5calendar year or expects to engage in the business of a mortgage loan originator on
6more than 5 residential mortgage loans, in this state or another state, in the current
7calendar year.
AB678,10,108 (b) The individual is acting on behalf of a person who is, or is required to be,
9licensed as a mortgage lender, mortgage banker, or mortgage broker in this state or
10another state.
AB678,10,1111 (c) The individual is acting on behalf of a registered entity.
AB678,29 12Section 29. 224.72 (1m) of the statutes is amended to read:
AB678,10,1713 224.72 (1m) License required. A Except as provided in sub. (1r), a person may
14not conduct business or act as a mortgage banker or mortgage broker, use the title
15"mortgage banker" or "mortgage broker," or advertise or otherwise portray himself,
16herself, or itself as a mortgage banker or mortgage broker, unless the person has been
17issued a mortgage banker or mortgage broker license by the division.
AB678,30 18Section 30. 224.72 (1r) (intro.), (c), (e) and (f) of the statutes are created to read:
AB678,10,2119 224.72 (1r) License exemptions. (intro.) The following persons shall not be
20required to be licensed under this section or comply with the other provisions of this
21subchapter:
AB678,10,2222 (c) A federal, state, or local government agency or housing finance agency.
AB678,11,423 (e) A bona fide nonprofit organization that does not operate in a commercial
24context and that is exempt under this paragraph. To qualify for an exemption under
25this paragraph, an organization shall certify, on a form prescribed by the division,

1that it is a bona fide nonprofit organization and shall provide documentation as
2required by the division. To maintain this exemption, the organization shall file the
3prescribed certification and accompanying documentation with the division by
4December 31 of each year.
AB678,11,55 (f) A mortgage banker that meets all of the following criteria:
AB678,11,76 1. The mortgage banker engaged in the business of a mortgage banker on 5 or
7fewer residential mortgage loans during the previous calendar year.
AB678,11,108 2. The mortgage banker expects to serve as the prospective source of financing,
9or to perform other phases of origination or servicing, on 5 or fewer residential
10mortgage loans in the current calendar year.
AB678,11,1211 3. The mortgage banker does not advertise or otherwise hold himself, herself,
12or itself out as a "mortgage banker."
AB678,31 13Section 31. 224.72 (2) (c) 2. of the statutes, as affected by 2013 Wisconsin Act
1436
, is amended to read:
AB678,11,1615 224.72 (2) (c) 2. The department division may not disclose any information
16received under subd. 1. to any person except as follows:
AB678,11,2017 a. The department division may disclose information under subd. 1. to the
18department of revenue for the sole purpose of requesting certifications under s.
1973.0301 and to the department of workforce development for the sole purpose of
20requesting certifications under s. 108.227.
AB678,11,2321 b. The department division may disclose information under subd. 1. a. to the
22department of children and families in accordance with a memorandum of
23understanding under s. 49.857.
AB678,32 24Section 32. 224.72 (2m) of the statutes is renumbered 224.72 (2m) (a).
AB678,33 25Section 33. 224.72 (2m) (b) and (c) of the statutes are created to read:
AB678,12,3
1224.72 (2m) (b) A principal office of a mortgage banker or mortgage broker
2shall be located in either this state or another state. A principal office may not be
3located in a residence.
AB678,12,54 (c) A branch office of a mortgage banker or mortgage broker shall be located in
5either this state or another state. A branch office may be located in a residence.
AB678,34 6Section 34. 224.72 (4) (a) 2. of the statutes is amended to read:
AB678,12,157 224.72 (4) (a) 2. File with the division a commercial surety bond which is in the
8amount of $300,000 for a mortgage banker or $120,000 for a mortgage broker, is
9issued by a surety company authorized to do business in this state, secures the
10applicant's faithful performance of all duties and obligations of a mortgage banker
11or mortgage broker, is payable to the division for the benefit of persons to whom the
12mortgage banker or mortgage broker provided services as a mortgage banker or
13mortgage broker, is issued on a form that is acceptable to the division and provides
14that the bond may not be terminated without at least 30 60 days' written notice to
15the division.
AB678,35 16Section 35. 224.72 (4n) of the statutes is repealed.
AB678,36 17Section 36. 224.722 of the statutes is created to read:
AB678,12,23 18224.722 Registered entities. (1) A depository institution may apply for
19registered entity status with the division. The application shall be on forms and in
20the manner prescribed by the division and the applicant shall pay the fee specified
21by the division. The application shall be accompanied by a commercial surety bond
22in the amount of $300,000 that is issued by a surety company authorized to do
23business in this state and is written on a form that is acceptable to the division.
AB678,13,3 24(2) Upon the filing of an application for registered entity status and the
25payment of the required fee, the division shall make an investigation of the

1applicant. If the application is complete, and the division has no concerns regarding
2the applicant's character, general fitness, or financial responsibility, the division
3shall register the applicant as a registered entity.
AB678,13,6 4(3) Each registered entity shall obtain and maintain a license for each branch
5office where a mortgage loan originator sponsored by the registered entity engages
6in business as a mortgage loan originator.
AB678,13,8 7(5) A depository institution's registered entity status expires on December 31
8of each year.
AB678,13,14 9(6) A registered entity may apply to renew its registered entity status by timely
10submitting, on forms and in the manner prescribed by the division, a completed
11renewal application and all required renewal fees. The division may not renew
12registered entity status under this section unless the division finds that the
13registered entity continues to meet the minimum standards for registration under
14this section.
AB678,13,16 15(7) If a registered entity fails to satisfy the minimum standards for renewal of
16its registration, its registration shall expire.
AB678,13,19 17(8) A registered entity shall cooperate with, and provide access to records and
18documents required by, the division to carry out examinations in accordance with s.
19224.74 (2) of mortgage loan originators that are sponsored by the registered entity.
AB678,37 20Section 37. 224.725 (1) of the statutes is amended to read:
AB678,14,321 224.725 (1) License required. Except as provided in s. 224.726 sub. (1m), an
22individual may not regularly engage in the business of a mortgage loan originator
23with respect to a residential mortgage loan, or use the title "mortgage loan
24originator," advertise, or otherwise portray himself or herself as a mortgage loan
25originator in this state, unless the individual has been issued by the division, and

1thereafter maintains, a license under this section. Each licensed mortgage loan
2originator shall register with, and maintain a valid unique identifier issued by, the
3nationwide mortgage licensing system and registry.
AB678,38 4Section 38. 224.725 (1m) (intro.), (a), (b), (f) and (g) 1., 2. and 3. of the statutes
5are created to read:
AB678,14,76 224.725 (1m) License exemptions. (intro.) The following individuals are not
7required to be licensed under this section:
AB678,14,88 (a) A registered mortgage loan originator.
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