AB830, s. 57
1Section
57. 224.77 (1) (r) of the statutes is created to read:
AB830,22,62
224.77
(1) (r) Failed to notify the division that the mortgage banker's or
3mortgage broker's net worth fell below the minimum amount required under s.
4224.72 (4) (a) 4. or (d) 2. or (4m) (a) 3. or (b) 2., if the mortgage banker or mortgage
5broker had qualified for registration under s. 224.72 (4) (a) 4. or (d) or (4m) (a) 3. or
6(b).
AB830, s. 58
7Section
58. 224.77 (1m) of the statutes is created to read:
AB830,22,108
224.77
(1m) Administrative forfeiture and hearing rights. (a) The division
9may assess against a person who is registered under this chapter a forfeiture of not
10more than $1,000 for each violation enumerated under sub. (1) (a) to (o) or (r).
AB830,22,2311
(b) A person may contest an assessment of forfeiture under par. (a) by sending,
12within 10 days after receipt of notice of the assessment under par. (a), a written
13request for hearing under s. 227.44 to the division of hearings and appeals created
14under s. 15.103 (1). The administrator of the division of hearings and appeals may
15designate a hearing examiner to preside over the case and recommend a decision to
16the administrator under s. 227.46. The decision of the administrator of the division
17of hearings and appeals shall be the final administrative decision. The division of
18hearings and appeals shall commence the hearing within 30 days after receipt of the
19request for hearing and shall issue a final decision within 15 days after the close of
20the hearing. Proceedings before the division of hearings and appeals are governed
21by ch. 227. In any petition for judicial review of a decision by the division of hearings
22and appeals, the party, other than the petitioner, who was in the proceeding before
23the division of hearings and appeals shall be the named respondent.
AB830,23,324
(c) All forfeitures shall be paid to the division of banking within 10 days after
25receipt of notice of assessment or, if the forfeiture is contested under par. (b), within
110 days after receipt of the final decision after exhaustion of administrative review.
2The division of banking shall remit all forfeitures paid to the state treasurer for
3deposit in the school fund.
AB830,23,74
(d) The attorney general may bring an action in the name of the state to collect
5any forfeiture imposed under this subsection if the forfeiture has not been paid
6following the exhaustion of all administrative and judicial reviews. The only issue
7to be contested in any such action shall be whether the forfeiture has been paid.
AB830, s. 59
8Section
59. 224.77 (2) of the statutes is amended to read:
AB830,23,179
224.77
(2) Conduct of officers, directors and others. The
department 10division may revoke, suspend or limit a certificate of registration issued under this
11subchapter or reprimand a mortgage banker or
loan solicitor mortgage broker 12registered under this subchapter, if a director, officer, trustee, partner or member of
13the mortgage banker or
loan solicitor mortgage broker or a person who has a
14financial interest in or is in any way connected with the operation of the mortgage
15banker's or
loan solicitor's mortgage broker's business is guilty of an act or omission
16which would be cause for refusing to issue a certificate of registration to that
17individual.
AB830, s. 60
18Section
60. 224.77 (3) of the statutes is amended to read:
AB830,23,2319
224.77
(3) (title)
Orders of the department division. (a)
Orders to prevent or
20correct actions. The
department division may issue general and special orders
21necessary to prevent or correct actions by a mortgage banker, loan originator or
loan
22solicitor mortgage broker that constitute cause under this section for revoking,
23suspending or limiting a certificate of registration.
AB830,24,524
(b)
Types of special orders. Special orders may direct a mortgage banker, loan
25originator or
loan solicitor mortgage broker to cease and desist from engaging in a
1particular activity or may direct the mortgage banker, loan originator or
loan
2solicitor mortgage broker to refund or remit to a loan applicant or borrower amounts
3that the mortgage banker, loan originator or
loan solicitor mortgage broker got from
4actions which constitute cause under this section for revoking, suspending or
5limiting a certificate of registration.
AB830,24,76
(c)
Judicial review. Orders of the
department division are subject to review as
7provided in ch. 227.
AB830, s. 61
8Section
61. 224.77 (3m) of the statutes is created to read:
AB830,24,139
224.77
(3m) Hearing rights for registration denial, revocation or
10suspension. A person whose certificate of registration has been denied, revoked or
11suspended under this section may request a hearing under s. 227.44 within 30 days
12after the date of denial, revocation or suspension of the certificate of registration.
13The division may appoint a hearing examiner under s. 227.46 to conduct the hearing.
AB830, s. 62
14Section
62. 224.77 (4) of the statutes is amended to read:
AB830,24,1815
224.77
(4) Period of disciplinary action; ineligibility for registration. (a)
16Period. Except as provided in par. (b), the
department division shall determine in
17each case the period that a revocation, suspension or limitation of a certificate of
18registration is effective.
AB830,24,2319
(b)
Ineligibility. 1. Except as provided in subd. 2., if the
department division
20denies or revokes a certificate of registration under sub. (1), the person is not eligible
21for a certificate of registration until the expiration of a period
which may not exceed
222 years after the effective date of the revocation determined in each case by the
23division.
AB830,25,3
12. If the
department division revokes a certificate of registration under sub. (1)
2(p) or (q), the person is not eligible for a certificate of registration until 5 years after
3the effective date of the revocation.
AB830, s. 63
4Section
63. 224.77 (5) (a) of the statutes is amended to read:
AB830,25,85
224.77
(5) (a)
Mandatory revocation or suspension. Notwithstanding sub. (1)
6(intro.) and (4), if the
department division finds that a mortgage banker, loan
7originator or
loan solicitor mortgage broker has violated sub. (1) (p) or (q), the
8department division shall:
AB830,25,109
1. For the first offense, suspend the registration of the mortgage banker, loan
10originator or
loan solicitor mortgage broker for not less than 90 days.
AB830,25,1211
2. For the 2nd offense, revoke the registration of the mortgage banker, loan
12originator or
loan solicitor mortgage broker.
AB830, s. 64
13Section
64. 224.77 (6) of the statutes is created to read:
AB830,25,1914
224.77
(6) Voluntary surrender. A mortgage banker, loan originator or
15mortgage broker may voluntarily surrender a registration to the division, but the
16division may refuse to accept the surrender if the division has received allegations
17of unprofessional conduct against the mortgage banker, loan originator or mortgage
18broker. The division may negotiate stipulations in consideration for accepting the
19surrender of registration.
AB830, s. 65
20Section
65. 224.78 of the statutes is amended to read:
AB830,25,24
21224.78 Fee splitting. A mortgage banker, loan originator or
loan solicitor 22mortgage broker may not pay a person who is not registered under this subchapter
23a commission, money or other thing of value for performing an act as a mortgage
24banker, loan originator or
loan solicitor mortgage broker.
AB830, s. 66
25Section
66. 224.80 (2) (intro.) of the statutes is amended to read:
AB830,26,4
1224.80
(2) Private cause of action. (intro.) A person who is aggrieved by an
2act which is committed by a mortgage banker, loan originator or
loan solicitor 3mortgage broker and which is described in s. 224.77 (1) may recover all of the
4following in a private action:
AB830, s. 67
5Section
67. 224.81 of the statutes is amended to read:
AB830,26,13
6224.81 Limitation on actions for commissions and other
7compensation. A person who is engaged in the business or acting in the capacity
8of a mortgage banker, loan originator or
loan solicitor mortgage broker in this state
9may not bring or maintain an action in this state to collect a commission, money or
10other thing of value for performing an act as a mortgage banker, loan originator or
11loan solicitor mortgage broker without alleging and proving that the person was
12registered under this subchapter as a mortgage banker, loan originator or
loan
13solicitor mortgage broker when the alleged cause of action arose.
AB830, s. 68
14Section
68. 224.82 of the statutes is amended to read:
AB830,26,18
15224.82 Compensation presumed. In a prosecution arising from a violation
16of this subchapter, proof that a person acted as a mortgage banker, loan originator
17or
loan solicitor mortgage broker is sufficient, unless rebutted, to establish that
18compensation was received by, or promised to, that person.
AB830, s. 69
19Section
69. 422.501 (2) (b) 8. of the statutes is amended to read:
AB830,26,2220
422.501
(2) (b) 8. A person registered as a mortgage banker, loan originator or
21loan solicitor mortgage broker under s. 224.72 if the person is acting within the
22course and scope of that registration.
AB830,27,5
1708.10
(1) (c) "Lender" means all lenders identified under s. 706.11 (1),
loan
2solicitors mortgage brokers, as defined under s. 224.71
(2) (4), and savings and loan
3associations organized under ch. 215, except that "lender" does not include any
4federal, state or local unit of government or any agency, political subdivision or
5instrumentality of such a unit of government.
AB830, s. 71
6Section
71. 943.62 (2m) of the statutes is amended to read:
AB830,27,97
943.62
(2m) This section does not apply to a savings and loan association,
8credit union, bank, savings bank, or a mortgage banker, loan originator or
loan
9solicitor mortgage broker registered under s. 224.72.
AB830,27,1811
(1)
Emergency rule-making authority. Using the procedure under section
12227.24 of the statutes, the division of banking shall promulgate rules required under
13sections 224.72 (8) and 224.73 (3) of the statutes, as affected by this act, for the period
14before permanent rules become effective, but not to exceed the period authorized
15under section s. 227.24 (1) (c) and (2) of the statutes. Notwithstanding section 227.24
16(1) (a) and (2) (b) of the statutes, the division need not provide evidence of the
17necessity of preservation of the public peace, health, safety or welfare in
18promulgating rules under this subsection.
AB830,27,2220
(1)
Registration of persons who engage in table funding. The treatment of
21section 224.71 (2) (with respect to engaging in table funding) and (5) of the statutes
22first applies to table funding that occurs on the effective date of this subsection.
AB830,28,923
(2)
Other registration provisions. The treatment of sections 224.70, 224.71
24(1b), (1c), (1r) (a) and (b), (2) (except with respect to engaging in table funding) and
25(3) (a) 3. and (b) 6., 224.72 (title), (1m), (2) (intro.) and (b), (3), (4) (intro.), (b), (c) and
1(d), (4m), (4n), (4r), (5) (a), (b) 1. and 2., (7), (8), 224.73, 224.74 (title), (1), (2) (a) and
2(b), 224.75 (title), (1) (title), (a), (b) (intro.), (c) (intro.) and (d), (2), (3), (4) and (5),
3224.76, 224.77 (title), (1) (intro.), (a), (e), (f), (h), (i), (k), (L), (o) and (r), (1m), (2), (3),
4(3m), (4), (5) (a) and (6), 224.78, 224.80 (2) (intro.), 224.81, 224.82, 422.501 (2) (b) 8.,
5708.10 (1) (c) and 943.62 (2m) and subchapter II (title) of chapter 224 of the statutes,
6the renumbering and amendment of section 224.72 (4) (a) of the statutes and the
7creation of section 224.72 (4) (a) 1. a. to d. and 3. of the statutes first apply with
8respect to initial or renewal applications for a registration period after January 1,
91999.