2009 Wisconsin Act 2

2,565 Section 565. 224.71 (1ag) of the statutes is repealed.

2,566 Section 566. 224.71 (1b) of the statutes is repealed.

2,567 Section 567. 224.71 (1bm) of the statutes is created to read:

224.71 (1bm) "Another state" means any state of the United States other than Wisconsin; the District of Columbia; any territory of the United States; Puerto Rico; Guam; American Samoa; the Trust Territory of the Pacific Islands; the Virgin Islands; or the Northern Mariana Islands.

2,568 Section 568. 224.71 (1c) of the statutes is created to read:

224.71 (1c) "Branch office" means an office or place of business, other than the principal office, located in this state or another state, where a mortgage banker or mortgage broker conducts business with residents of this state.

2,569 Section 569. 224.71 (1d) of the statutes is repealed.

2,570 Section 570. 224.71 (1dm) of the statutes is created to read:

224.71 (1dm) "Depository institution" has the meaning given in 12 USC 1813 (c) (1), but also includes any state or federal credit union.

2,571 Section 571. 224.71 (1f) of the statutes is created to read:

224.71 (1f) "Dwelling" has the meaning given in 15 USC 1602 (v).

2,572 Section 572. 224.71 (1g) of the statutes is renumbered 224.71 (14) and amended to read:

224.71 (14) "Loan Residential mortgage loan" means a any loan primarily for personal, family, or household purposes use that is secured by a lien or mortgage, or equivalent security interest, on a dwelling or residential real property located in this state. For purposes of this subsection, a loan secured by real property consisting of 1 to 4 dwelling units, including individual condominium units, is a loan for household purposes, but a loan made by a landlord to a tenant as described in sub. (3) (b) 4. is not a loan for household purposes.

2,573 Section 573. 224.71 (1h) of the statutes is created to read:

224.71 (1h) "Federal banking agency" means the board of governors of the federal reserve system, the U.S. office of the comptroller of the currency, the U.S. office of thrift supervision, the national credit union administration, or the federal deposit insurance corporation.

2,574 Section 574. 224.71 (1m) of the statutes is created to read:

224.71 (1m) "Finds," with respect to a residential mortgage loan, means to assist a residential mortgage loan applicant in locating a lender for the purpose of obtaining a residential mortgage loan and to make arrangements for a residential mortgage loan applicant to obtain a residential mortgage loan, including collecting information on behalf of an applicant and preparing a loan package.

2,575 Section 575. 224.71 (1r) of the statutes is renumbered 224.71 (6) (a) (intro.) and amended to read:

224.71 (6) (a) (intro.) "Loan Mortgage loan originator" means a person who, on behalf of a mortgage banker or mortgage broker, finds a loan or negotiates a land contract, loan or commitment for a loan. an individual who is not excluded by par. (b) and who, for compensation or gain or in the expectation of compensation or gain, does any of the following:

2,576 Section 576. 224.71 (1u) of the statutes is repealed.

2,577 Section 577. 224.71 (2) of the statutes is created to read:

224.71 (2) "Loan processor or underwriter" means an individual who, as an employee, performs clerical or support duties at the direction of and subject to the supervision and instruction of a mortgage loan originator licensed under s. 224.725 or exempt from licensing under s. 224.726 (1), which clerical or support duties may include any of the following occurring subsequent to the receipt of a residential mortgage loan application:

(a) The receipt, collection, distribution, and analysis of information common for the processing or underwriting of a residential mortgage loan.

(b) Communicating with a residential mortgage loan applicant to obtain the information necessary for the processing or underwriting of a residential mortgage loan, to the extent that the communication does not include offering or negotiating loan rates or terms or providing counseling related to loan rates or terms.

2,578 Section 578. 224.71 (3) (a) 1. to 3. of the statutes are amended to read:

224.71 (3) (a) 1. Originates residential mortgage loans for itself, as payee on the note evidencing the residential mortgage loan, or for another person.

2. Sells residential mortgage loans or interests in residential mortgage loans to another person.

3. Services residential mortgage loans or land contracts or provides escrow services.

2,579 Section 579. 224.71 (3) (b) 1. to 6. of the statutes are repealed.

2,580 Section 580. 224.71 (3) (b) 8., 9., 10., 11. and 12. of the statutes are created to read:

224.71 (3) (b) 8. A depository institution.

9. A subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency.

10. An institution regulated by the farm credit administration.

11. A person that only performs real estate brokerage activities and is licensed under s. 452.03, unless the person is compensated by a lender, mortgage broker, or mortgage loan originator or by any agent of a lender, mortgage broker, or mortgage loan originator.

12. A person solely involved in extensions of credit relating to time-share plans, as defined in 11 USC 101 (53D).

2,581 Section 581. 224.71 (4) (a) of the statutes is amended to read:

224.71 (4) (a) "Mortgage broker" means a person who is not excluded by par. (b) and who, on behalf of a residential mortgage loan applicant or an investor and for commission, money, or other thing of value, finds a residential mortgage loan or negotiates a land contract, residential mortgage loan or commitment for a residential mortgage loan or engages in table funding.

2,582 Section 582. 224.71 (4) (b) 1. to 3. of the statutes are repealed.

2,583 Section 583. 224.71 (4) (b) 4., 5., 6., 7., 8. and 9. of the statutes are created to read:

224.71 (4) (b) 4. A depository institution.

5. A subsidiary that is owned and controlled by a depository institution and regulated by a federal banking agency.

6. An institution regulated by the farm credit administration.

7. A person that performs real estate brokerage activities only and is licensed under s. 452.03, unless the person is compensated by a lender, mortgage broker, or mortgage loan originator or by any agent of a lender, mortgage broker, or mortgage loan originator.

8. A person solely involved in extensions of credit relating to time-share plans, as defined in 11 USC 101 (53D).

9. The department of veterans affairs when administering the veterans housing loan program under subch. III of ch. 45.

2,584 Section 584. 224.71 (5) of the statutes is renumbered 224.71 (17) and amended to read:

224.71 (17) "Table funding" means a transaction in which a person conducts a residential mortgage loan closing in the person's name with funds provided by a 3rd party and the person assigns the residential mortgage loan to the 3rd party within 24 hours of the residential mortgage loan closing.

2,585 Section 585. 224.71 (6) (a) 1. and 2. and (b) of the statutes are created to read:

224.71 (6) (a) 1. Takes a residential mortgage loan application.

2. Offers or negotiates terms of a residential mortgage loan.

(b) "Mortgage loan originator" does not include any of the following:

1. An individual engaged solely as a loan processor or underwriter, unless the individual represents to the public, through advertising or another means of communication such as the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator.

2. An individual who performs real estate brokerage activities only and is licensed under s. 452.03, unless the individual is compensated by a lender, mortgage broker, or another mortgage loan originator or by any agent of a lender, mortgage broker, or another mortgage loan originator.

3. An individual solely involved in extensions of credit relating to time-share plans, as defined in 11 USC 101 (53D).

4. An employee of the department of veterans affairs when engaged in duties related to administering the veterans housing loan program under subch. III of ch. 45.

2,586 Section 586. 224.71 (7) of the statutes is created to read:

224.71 (7) "Nationwide mortgage licensing system and registry" means the licensing and registration system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators for licensed mortgage loan originators and mortgage loan originators exempt from licensing under s. 224.726 (1) or, if this system is no longer maintained, any system established by the secretary of the federal department of housing and urban development under P.L. 110-289, Title V, section 1509.

2,587 Section 587. 224.71 (8) of the statutes is created to read:

224.71 (8) "Negotiate," with respect to a residential mortgage loan, means to discuss, explain, or present the terms and conditions, including rates, fees, and other costs, of a residential mortgage loan with or to a residential mortgage loan applicant, but does not include making an underwriting decision on a residential mortgage loan or closing a residential mortgage loan.

2,588 Section 588. 224.71 (10) of the statutes is created to read:

224.71 (10) "Nontraditional mortgage product" means any mortgage product other than a 30-year fixed rate mortgage.

2,589 Section 589. 224.71 (11) of the statutes is created to read:

224.71 (11) "Originate," with respect to a residential mortgage loan, means to make an underwriting decision on the residential mortgage loan and close the loan.

2,590 Section 590. 224.71 (12) of the statutes is created to read:

224.71 (12) "Principal office," with respect to a mortgage banker or mortgage broker, means the place of business designated by the mortgage banker or mortgage broker as its principal place of business, as identified in the records of the division.

2,591 Section 591. 224.71 (13) of the statutes is created to read:

224.71 (13) "Real estate brokerage activity" means any activity that involves offering or providing to the public real estate brokerage services involving residential real property in this state, including all of the following:

(a) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property.

(b) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property.

(c) Negotiating, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property, other than in connection with providing financing for the transaction.

(d) Engaging in any activity for which a person engaged in the activity is required to be licensed under s. 452.03.

(e) Offering to engage in any activity, or act in any capacity, described in pars. (a) to (d).

2,592 Section 592. 224.71 (15) of the statutes is created to read:

224.71 (15) "Residential real property" means real property on which a dwelling is constructed or intended to be constructed.

2,593 Section 593. 224.71 (16) of the statutes is created to read:

224.71 (16) "Services," with respect to a residential mortgage loan, means to receive payments on a note from the borrower and distribute these payments in accordance with the terms of the note or servicing agreement.

2,594 Section 594. 224.71 (18) of the statutes is created to read:

224.71 (18) "Unique identifier" means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry.

2,595 Section 595. 224.72 (title) of the statutes is amended to read:

224.72 (title) Registration Licensing of mortgage bankers, loan originators and mortgage brokers.

2,596 Section 596. 224.72 (1) (intro.) of the statutes is repealed.

2,597 Section 597. 224.72 (1) (a) of the statutes is renumbered 224.71 (9) and amended to read:

224.71 (9) "Net worth" means total tangible assets less total liabilities of a person, or, if the person is a natural person an individual, total tangible assets less total liabilities exclusive of the person's principal residence and its furnishings and personal use vehicles.

2,598 Section 598. 224.72 (1) (b) of the statutes is repealed.

2,599 Section 599. 224.72 (1m) of the statutes is amended to read:

224.72 (1m) Registration License required. A person may not conduct business or act as a mortgage banker, loan originator or mortgage broker, use the title "mortgage banker", "loan originator" or "mortgage broker",," or advertise or otherwise portray himself or, herself, or itself as a mortgage banker, loan originator or mortgage broker, unless the person has been issued a certificate of registration from mortgage banker or mortgage broker license by the division.

2,600 Section 600. 224.72 (2) (title) of the statutes is repealed and recreated to read:

224.72 (2) (title) License applications.

2,601 Section 601. 224.72 (2) (intro.) of the statutes is renumbered 224.72 (2) (am) and amended to read: