224.75(1)(c)9.
9. Any other documents, records or forms shown to or signed by a loan applicant.
224.75(1)(d)
(d)
Loan servicing records and documents. A mortgage banker shall maintain for each mortgage loan serviced by the mortgage banker a copy of or a record of all correspondence relating to the loan.
224.75(2)
(2) Period of record retention. A mortgage banker or mortgage broker shall keep for at least 25 months copies of all deposit receipts, canceled checks, trust account records, the records which a mortgage banker or mortgage broker maintains under
sub. (1) (c) or
(d) and other relevant documents or correspondence received or prepared by the mortgage banker or mortgage broker in connection with a loan or loan application. The retention period begins on the date the loan is closed or, if the loan is not closed, the date of loan application. If the loan is serviced by a mortgage banker, the retention period commences on the date that the loan is paid in full. The mortgage banker or mortgage broker shall make the records available for inspection and copying by the division. If the records are not kept within this state, the mortgage banker or mortgage broker shall, upon request of the division, promptly send exact and complete copies of requested records to the division.
224.75(3)
(3) Contents of credit and appraisal reports. 224.75(3)(a)(a)
Credit report. If a mortgage banker or mortgage broker charges a loan applicant a separate fee for a credit report, the credit report shall consist, at a minimum, of a written statement indicating the name of the credit reporting agency which investigated the credit history of the applicant.
224.75(3)(b)
(b)
Appraisal report. If a mortgage banker or mortgage broker charges a loan applicant a separate fee for an appraisal report, the appraisal report shall consist, at a minimum, of a written statement indicating the appraiser's opinion of the value of the property appraised for mortgage loan purposes, the basis for that opinion and the name of the person who conducted the appraisal. If requested by a loan applicant, a mortgage banker or mortgage broker shall provide the loan applicant with a copy of any written appraisal report held by the mortgage banker or mortgage broker, if the loan applicant paid a fee for the report.
224.75(4)
(4) Responsibility for forms. A mortgage banker or mortgage broker is responsible for the preparation and correctness of all entries on forms, documents and records which are under the mortgage banker's or mortgage broker's control and which are not dependent on information provided by the loan applicant or a 3rd party.
224.75(5)
(5) Accounting practices. A mortgage banker or mortgage broker shall maintain its books and records in accordance with generally accepted accounting principles.
224.75 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.75;
1995 a. 27 s.
6596; Stats. 1995 s. 224.75;
1997 a. 145;
2007 a. 211.
224.75 Cross-reference
Cross Reference: See also chs.
DFI-Bkg 42 and
43, Wis. adm. code.
224.755
224.755
Continuing education and examination records. A loan originator shall keep records documenting compliance with
s. 224.72 (7) (d) for at least 4 years. The technical college system board and any professional trade association or other person that administers examinations or provides education under
s. 224.72 (7) (d) shall maintain records documenting attendance and examination performance for at least 4 years.
224.755 History
History: 2003 a. 260.
224.76
224.76
Mortgage banker, loan originator and mortgage broker trust accounts. A mortgage banker, loan originator or mortgage broker shall deposit in one or more trust accounts all funds other than nonrefundable fees which it receives on behalf of any person, pending disbursement of the funds in accordance with instructions from the person on whose behalf the funds are deposited. A mortgage banker or mortgage broker shall maintain trust accounts in a bank, savings bank, savings and loan association or credit union which is authorized to do business in this state or whose accounts are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. The mortgage banker or mortgage broker shall notify the division of the location of its trust accounts.
224.76 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.76;
1995 a. 27 s.
6597; Stats. 1995 s. 224.76;
1997 a. 145.
224.76 Cross-reference
Cross Reference: See also ch.
DFI-Bkg 42, Wis. adm. code.
224.77
224.77
Discipline of mortgage bankers, loan originators and mortgage brokers. 224.77(1)
(1)
Prohibited conduct. The division may deny an application submitted to it under
s. 224.72, or may revoke, suspend or limit the certificate of registration of a mortgage banker, loan originator or mortgage broker, or may reprimand a mortgage banker, loan originator or mortgage broker, if it finds that the mortgage banker, loan originator or mortgage broker did any of the following:
224.77(1)(a)
(a) Made a material misstatement in an application for registration, or in information furnished to the division.
224.77(1)(b)
(b) Made a substantial misrepresentation in the course of practice injurious to one or more of the parties to a transaction.
224.77(1)(c)
(c) Made a false promise that influences, persuades or induces a client to act to his or her injury or damage.
224.77(1)(d)
(d) Pursued a continued and flagrant course of misrepresentation, or made false promises, whether directly or through agents or advertising.
224.77(1)(e)
(e) Acted for more than one party in a transaction without the knowledge and consent of all parties on whose behalf the mortgage banker, loan originator or mortgage broker is acting.
224.77(1)(f)
(f) Accepted a commission, money or other thing of value for performing an act as a loan originator unless the payment is from a mortgage banker or mortgage broker who is registered under
s. 224.72 (3) as employing the loan originator.
224.77(1)(g)
(g) As a loan originator, represented or attempted to represent a mortgage banker other than the mortgage banker who is registered under
s. 224.72 (3) as employing the loan originator.
224.77(1)(h)
(h) Failed, within a reasonable time, to account for or remit any moneys coming into the mortgage banker's, loan originator's or mortgage broker's possession which belong to another person.
224.77(1)(i)
(i) Demonstrated a lack of competency to act as a mortgage banker, loan originator or mortgage broker in a way which safeguards the interests of the public.
224.77(1)(j)
(j) Paid or offered to pay a commission, money or other thing of value to any person for acts or services in violation of this subchapter.
224.77(1)(k)
(k) Violated any provision of this subchapter,
ch. 138 or any federal or state statute, rule or regulation which relates to practice as a mortgage banker, loan originator or mortgage broker.
224.77(1)(L)
(L) Engaged in conduct which violates a standard of professional behavior which, through professional experience, has become established for mortgage bankers, loan originators or mortgage brokers.
224.77(1)(m)
(m) Engaged in conduct, whether of the same or a different character than specified elsewhere in this section, which constitutes improper, fraudulent or dishonest dealing.
224.77(1)(o)
(o) In the course of practice as a mortgage banker, loan originator or mortgage broker, except in relation to housing designed to meet the needs of elderly individuals, treated a person unequally solely because of sex, race, color, handicap, sexual orientation, as defined in
s. 111.32 (13m), religion, national origin, age or ancestry, the person's lawful source of income, or the sex or marital status of the person maintaining a household.
224.77(1)(p)
(p) Intentionally encouraged or discouraged any person from purchasing or renting real estate on the basis of race.
224.77(1)(q)
(q) Because of the age or location of the property or the race of the loan applicant, rather than because of the credit worthiness of the applicant and the condition of the property securing the loan:
224.77(1)(q)1.
1. Refused to negotiate, to offer or to attempt to negotiate a land contract, loan or commitment for a loan, or refused to find a loan.
224.77(1)(q)2.
2. Found a loan or negotiated a loan on terms less favorable than are usually offered.
224.77(1m)
(1m) Administrative forfeiture and hearing rights. 224.77(1m)(a)(a) The division may assess against a person who is registered under this chapter a forfeiture of not more than $2,000 for each violation enumerated under
sub. (1) (a) to
(o) or
(r).
224.77(1m)(b)
(b) A person may contest an assessment of forfeiture under
par. (a) by sending, within 10 days after receipt of notice of the assessment under
par. (a), a written request for hearing under
s. 227.44 to the division of hearings and appeals created under
s. 15.103 (1). The administrator of the division of hearings and appeals may designate a hearing examiner to preside over the case and recommend a decision to the administrator under
s. 227.46. The decision of the administrator of the division of hearings and appeals shall be the final administrative decision. The division of hearings and appeals shall commence the hearing within 30 days after receipt of the request for hearing and shall issue a final decision within 15 days after the close of the hearing. Proceedings before the division of hearings and appeals are governed by
ch. 227. In any petition for judicial review of a decision by the division of hearings and appeals, the party, other than the petitioner, who was in the proceeding before the division of hearings and appeals shall be the named respondent.
224.77(1m)(c)
(c) All forfeitures shall be paid to the division of banking within 10 days after receipt of notice of assessment or, if the forfeiture is contested under
par. (b), within 10 days after receipt of the final decision after exhaustion of administrative review. The division of banking shall remit all forfeitures paid to the secretary of administration for deposit in the school fund.
224.77(1m)(d)
(d) The attorney general may bring an action in the name of the state to collect any forfeiture imposed under this subsection if the forfeiture has not been paid following the exhaustion of all administrative and judicial reviews. The only issue to be contested in any such action shall be whether the forfeiture has been paid.
224.77(2)
(2) Conduct of officers, directors and others. The division may revoke, suspend or limit a certificate of registration issued under this subchapter or reprimand a mortgage banker or mortgage broker registered under this subchapter, if a director, officer, trustee, partner or member of the mortgage banker or mortgage broker or a person who has a financial interest in or is in any way connected with the operation of the mortgage banker's or mortgage broker's business is guilty of an act or omission which would be cause for refusing to issue a certificate of registration to that individual.
224.77(3)(a)(a)
Orders to prevent or correct actions. The division may issue general and special orders necessary to prevent or correct actions by a mortgage banker, loan originator or mortgage broker that constitute cause under this section for revoking, suspending or limiting a certificate of registration.
224.77(3)(b)
(b)
Types of special orders. Special orders may direct a mortgage banker, loan originator or mortgage broker to cease and desist from engaging in a particular activity or may direct the mortgage banker, loan originator or mortgage broker to refund or remit to a loan applicant or borrower amounts that the mortgage banker, loan originator or mortgage broker got from actions which constitute cause under this section for revoking, suspending or limiting a certificate of registration.
224.77(3)(c)
(c)
Judicial review. Orders of the division are subject to review as provided in
ch. 227.
224.77(3m)
(3m) Hearing rights for registration denial, revocation or suspension. A person whose certificate of registration has been denied, revoked or suspended under this section may request a hearing under
s. 227.44 within 30 days after the date of denial, revocation or suspension of the certificate of registration. The division may appoint a hearing examiner under
s. 227.46 to conduct the hearing.
224.77(4)
(4) Period of disciplinary action; ineligibility for registration. 224.77(4)(a)(a)
Period. Except as provided in
par. (b), the division shall determine in each case the period that a revocation, suspension or limitation of a certificate of registration is effective.
224.77(4)(b)1.1. Except as provided in
subd. 2., if the division denies or revokes a certificate of registration under
sub. (1), the person is not eligible for a certificate of registration until the expiration of a period determined in each case by the division.
224.77(4)(b)2.
2. If the division revokes a certificate of registration under
sub. (1) (p) or
(q), the person is not eligible for a certificate of registration until 5 years after the effective date of the revocation.
224.77(5)
(5) Penalties for certain discriminatory conduct. 224.77(5)(a)(a) Mandatory revocation or suspension. Notwithstanding
sub. (1) (intro.) and
(4), if the division finds that a mortgage banker, loan originator or mortgage broker has violated
sub. (1) (p) or
(q), the division shall:
224.77(5)(a)1.
1. For the first offense, suspend the registration of the mortgage banker, loan originator or mortgage broker for not less than 90 days.
224.77(5)(a)2.
2. For the 2nd offense, revoke the registration of the mortgage banker, loan originator or mortgage broker.
224.77(6)
(6) Restriction or suspension of registration. The department shall restrict or suspend the registration of a mortgage banker, loan originator or mortgage broker if the registrant is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under
s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under
s. 49.857. A registrant whose registration is restricted or suspended under this subsection is entitled to a notice and hearing only as provided in a memorandum of understanding entered into under
s. 49.857 and is not entitled to any other notice or hearing under this section.
224.77(7)
(7) Revocation for liability for delinquent taxes. The department shall revoke the certificate of registration of a mortgage banker, loan originator or mortgage broker if the department of revenue certifies under
s. 73.0301 that the registrant is liable for delinquent taxes. A registrant whose certificate of registration is revoked under this subsection for delinquent taxes is entitled to a notice under
s. 73.0301 (2) (b) 1. b. and a hearing under
s. 73.0301 (5) (a) but is not entitled to any other notice, hearing or review under this section.
224.77(8)
(8) Voluntary surrender. A mortgage banker, loan originator or mortgage broker may voluntarily surrender a registration to the division, but the division may refuse to accept the surrender if the division has received allegations of unprofessional conduct against the mortgage banker, loan originator or mortgage broker. The division may negotiate stipulations in consideration for accepting the surrender of registration.
224.77 Cross-reference
Cross Reference: See also ch.
DFI-Bkg 43, Wis. adm. code.
224.77 Annotation
Failure to comply with an administrative rule requiring agreements by loan solicitors to be in writing did not cause an otherwise valid agreement to be unenforceable under this section. Felland v. Sauey, 2001 WI App 257,
248 Wis. 2d 963,
637 N.W.2d 403,
00-2102.
224.78
224.78
Fee splitting. A mortgage banker, loan originator or mortgage broker may not pay a person who is not registered under this subchapter a commission, money or other thing of value for performing an act as a mortgage banker, loan originator or mortgage broker.
224.78 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.78;
1995 a. 27 s.
6601; Stats. 1995 s. 224.78;
1997 a. 145.
224.79
224.79
Consumer mortgage brokerage agreements and consumer disclosures. 224.79(1)
(1)
Form and content of consumer mortgage brokerage agreements. Every contract between a mortgage broker and a consumer under which the mortgage broker agrees to provide brokerage services to the consumer shall be in writing, in the form prescribed by rule of the division, and shall contain all information required by rule of the division. The division shall promulgate rules to administer this subsection in consultation with the loan originator council under
s. 15.187 (1). The division shall design these rules to facilitate the comparison of similar charges and total charges assessed by different mortgage brokers.
224.79(2)
(2) Consumer disclosure statement. Before entering into a contract with a consumer to provide brokerage services, a mortgage broker shall give the consumer a copy of a consumer disclosure statement, explain the content of the statement, and ensure that the consumer initials or signs the statement, acknowledging that the consumer has read and understands the statement. The consumer disclosure statement shall contain a brief explanation of the relationship between the consumer and the mortgage broker under the proposed contract, a brief explanation of the manner in which the mortgage broker may be compensated under the proposed contract, and any additional information required by rule of the division. The division shall promulgate rules to administer this subsection in consultation with the loan originator council under
s. 15.187 (1) and, by rule, shall specify the form and content of the consumer disclosure statement required under this subsection.
224.79 History
History: 2003 a. 260.
224.79 Cross-reference
Cross Reference: See also ch.
DFI-Bkg 44, Wis. adm. code.
224.80
224.80
Penalties and private cause of action. 224.80(1)
(1)
Penalties. A person who violates
s. 224.72 (1m) may be fined not more than $2,000 or imprisoned for not more than 9 months or both. The district attorney of the county where the violation occurs shall enforce the penalty under this subsection on behalf of the state.
224.80(2)
(2) Private cause of action. A person who is aggrieved by an act which is committed by a mortgage banker, loan originator or mortgage broker and which is described in
s. 224.77 (1) may recover all of the following in a private action:
224.80(2)(a)
(a) An amount equal to the greater of the following:
224.80(2)(a)1.
1. Twice the amount of the cost of loan origination connected with the transaction, except that the liability under this subdivision may not be less than $100 nor greater than $2,000 for each violation.
224.80(2)(a)2.
2. The actual damages, including any incidental and consequential damages, which the person sustained because of the violation.
224.80(2)(b)
(b) The aggregate amount of costs and expenses which the court determines were reasonably incurred by the person in connection with the action, together with reasonable attorney fees, notwithstanding
s. 814.04 (1).
224.80 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.80;
1989 a. 45;
1995 a. 27 s.
6602; Stats. 1995 s. 224.80;
1997 a. 145;
2003 a. 260.
224.81
224.81
Limitation on actions for commissions and other compensation. A person who is engaged in the business or acting in the capacity of a mortgage banker, loan originator or mortgage broker in this state may not bring or maintain an action in this state to collect a commission, money or other thing of value for performing an act as a mortgage banker, loan originator or mortgage broker without alleging and proving that the person was registered under this subchapter as a mortgage banker, loan originator or mortgage broker when the alleged cause of action arose.
224.81 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.81;
1995 a. 27 s.
6603; Stats. 1995 s. 224.81;
1997 a. 145.
224.82
224.82
Compensation presumed. In a prosecution arising from a violation of this subchapter, proof that a person acted as a mortgage banker, loan originator or mortgage broker is sufficient, unless rebutted, to establish that compensation was received by, or promised to, that person.
224.82 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.82;
1995 a. 27 s.
6604; Stats. 1995 s. 224.82;
1997 a. 145.
NONDEPOSITORY SMALL BUSINESS LENDERS
224.90
224.90 Definitions. In this subchapter:
224.90(1)
(1) "Division" means the division of banking.
224.90(2)
(2) "In control" means any of the following:
224.90(2)(a)
(a) Owning 10% or more of the outstanding voting stock of a nondepository lender.
