(e) A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator's own annual continuing education requirement at the rate of 2 hours of credit for every one hour taught.
(f) The division may, by rule, allow an applicant for renewal of a license under s. 224.725 (5) to make up any deficiency in meeting the requirements specified in sub. (2).
(4) Testing requirements. (a) An applicant for a license under s. 224.725 (1), prior to the division's issuance of the license, shall pass a written test meeting the standards under par. (b). An individual shall answer at least 75 percent of the test questions correctly to achieve a passing test score.
(b) 1. No test may satisfy the requirement under par. (a) unless the test is developed by the nationwide mortgage licensing system and registry and administered by a test provider approved by the nationwide mortgage licensing system and registry based upon reasonable standards.
2. A test does not meet the standard under subd. 1. unless the test adequately measures the applicant's knowledge and comprehension in appropriate subject areas, including all of the following:
a. Ethics.
b. Federal and state law, regulations, and rules pertaining to mortgage origination.
c. Federal and state law, regulations, and rules relating to residential mortgage transactions, including instruction on fraud, consumer protection, the nontraditional mortgage product marketplace, and fair lending issues.
(c) A written test meeting the standards under par. (b) may satisfy the requirement under par. (a) even if the test is provided at the location of the applicant's employer, any subsidiary or affiliate of the applicant's employer, or any entity with which the applicant holds an exclusive arrangement to conduct the business of a mortgage loan originator.
(d) An individual may retake a test 3 consecutive times, with each test retaken no less than 30 days after the preceding test. If the individual fails 3 consecutive tests, the individual may not retake a test again for at least 6 months.
(e) If an individual previously licensed as a mortgage loan originator fails to maintain a valid license for a period of 5 years or longer, the individual shall retake the test under par. (a). For purposes of determining the 5-year period, the division shall not consider any period during which the individual is exempt from licensing under s. 224.726 (1).
2,672
Section
672. 224.76 of the statutes is amended to read:
224.76 Mortgage banker, mortgage loan originator, and mortgage broker trust accounts. A mortgage banker, mortgage 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 depository institution. The mortgage banker or mortgage broker shall notify the division of the location of its trust accounts.
2,673
Section
673. 224.77 (title) of the statutes is amended to read:
224.77 (title) Discipline
Prohibited acts and practices, and discipline, of mortgage bankers, mortgage loan originators, and mortgage brokers.
2,674
Section
674. 224.77 (1) (intro.) of the statutes is amended to read:
224.77 (1) Prohibited conduct acts and practices. (intro.) 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 No mortgage banker, mortgage loan originator, or mortgage broker did, and no member, officer, director, principal, partner, trustee, or other agent of a mortgage banker or mortgage broker, may do any of the following:
2,675
Section
675. 224.77 (1) (a) of the statutes is amended to read:
224.77 (1) (a) Made Make a material misstatement, or knowingly omit a material fact, in an a license application for registration, or in other information or reports furnished to the division, to the nationwide mortgage licensing system and registry, or to any other governmental agency, including failing to disclose a criminal conviction or any disciplinary action taken by a state or federal regulatory agency.
2,676
Section
676. 224.77 (1) (b) of the statutes is repealed and recreated to read:
224.77 (1) (b) Make, in any manner, any materially false or deceptive statement or representation, including engaging in bait and switch advertising or falsely representing residential mortgage loan rates, points, or other financing terms or conditions.
2,677
Section
677. 224.77 (1) (c) and (d) of the statutes are amended to read:
224.77 (1) (c) Made Make a false, deceptive, or misleading promise relating to the services being offered or that influences, persuades, or induces a client to act to his or her injury or damage detriment.
(d) Pursued Pursue a continued and flagrant course of misrepresentation, or made make false promises, whether directly or through agents or advertising.
2,678
Section
678. 224.77 (1) (e) and (f) of the statutes are amended to read:
224.77 (1) (e) Acted Act for more than one party in a transaction without the knowledge and consent of all parties on whose behalf the mortgage banker, mortgage loan originator, or mortgage broker is acting.
(f) Accepted Accept a commission, money, or other thing of value for performing an act as a mortgage 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 with whom the mortgage loan originator's license is associated, as identified in the records of the division at the time the act is performed.
2,679
Section
679. 224.77 (1) (fg) of the statutes is created to read:
224.77 (1) (fg) As a mortgage banker or mortgage broker, pay a commission, money, or other thing of value to any person for performing an act as a mortgage loan originator unless the mortgage loan originator's license is associated with the mortgage banker or mortgage broker in the records of the division at the time the act is performed.
2,680
Section
680. 224.77 (1) (g) of the statutes is amended to read:
224.77 (1) (g) As a mortgage loan originator, represented or attempted represent or attempt to represent a mortgage banker or mortgage broker other than the mortgage banker who is registered under s. 224.72 (3) as employing the loan originator or mortgage broker with whom the mortgage loan originator's license was associated, as identified in the records of the division at the time the representation or attempted representation occurs.
2,681
Section
681. 224.77 (1) (gd), (gh) and (gp) of the statutes are created to read:
224.77 (1) (gd) As a mortgage banker or mortgage broker, permit a person who is not licensed under this subchapter to act as a mortgage loan originator on behalf of the mortgage banker or mortgage broker.
(gh) As a mortgage banker or mortgage broker, permit a person whose mortgage loan originator license is not associated in the records of the division with the mortgage banker or mortgage broker to act as a mortgage loan originator on behalf of the mortgage banker or mortgage broker.
(gp) As a mortgage banker or mortgage broker, conduct business at or from a principal office or branch office that is not licensed under this subchapter.
2,682
Section
682. 224.77 (1) (h) to (L) of the statutes are amended to read:
224.77 (1) (h) Failed Fail, within a reasonable time, to account for or remit any moneys coming into the mortgage banker's, mortgage loan originator's, or mortgage broker's possession which that belong to another person.
(i) Demonstrated Demonstrate a lack of competency to act as a mortgage banker, mortgage loan originator
, or mortgage broker in a way which that safeguards the interests of the public.
(j) Paid or offered Pay or offer to pay a commission, money, or other thing of value to any person for acts or services in violation of this subchapter.
(k) Violated Violate any provision of this subchapter, ch. 138, or any federal or state statute, rule, or regulation which that relates to practice as a mortgage banker, mortgage loan originator, or mortgage broker.
(L) Engaged Engage in conduct which that violates a standard of professional behavior which, through professional experience, has become established for mortgage bankers, mortgage loan originators, or mortgage brokers.
2,683
Section
683. 224.77 (1) (m) of the statutes is amended to read:
224.77 (1) (m) Engaged Engage in conduct, whether of the same or a different character than specified elsewhere in this section, which that constitutes improper, fraudulent, or dishonest dealing.
2,684
Section
684. 224.77 (1) (o) of the statutes is amended to read:
224.77 (1) (o) In the course of practice as a mortgage banker, mortgage loan originator, or mortgage broker, except in relation to housing designed to meet the needs of elderly individuals, treated treat 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.
2,685
Section
685. 224.77 (1) (p) of the statutes is amended to read:
224.77 (1) (p) Intentionally encouraged or discouraged encourage or discourage any person from purchasing or renting real estate on the basis of race.
2,686
Section
686. 224.77 (1) (q) of the statutes is amended to read:
224.77 (1) (q) Because of the age or location of the property or the race of the residential mortgage loan applicant, rather than because of the credit worthiness of the applicant and the condition of the property securing the loan:
1. Refused Refuse to negotiate, to offer, or to attempt to negotiate a land contract, residential mortgage loan or commitment for a residential mortgage loan, or refused refuse to find a residential mortgage loan.
2. Found a Find a residential mortgage loan or negotiated a negotiate a residential mortgage loan on terms less favorable than are usually offered.
2,687
Section
687. 224.77 (1) (r) of the statutes is repealed.
2,688
Section
688. 224.77 (1) (s), (t), (tm), (u), (um), (v), (w), (x) and (y) of the statutes are created to read:
224.77 (1) (s) Violate, or fail to comply with, any lawful order of the division.
(t) Impede an investigation or examination of the division or deny the division access to any books, records, or other information which the division is authorized to obtain under s. 224.74 (2), 224.75 (6), or any other provision of this subchapter.
(tm) Make a material misstatement, or knowingly omit a material fact, or knowingly mutilate, destroy, or secrete any books, records, or other information requested by the division, in connection with any investigation or examination conducted by the division or another governmental agency.
(u) Solicit or enter into a contract with a borrower that provides in substance that the mortgage banker, mortgage broker, or mortgage loan originator may earn a fee or commission through "best efforts" to obtain a residential mortgage loan even though no residential mortgage loan is actually obtained for the borrower.
(um) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting.
(v) Assist, aid, or abet any person in unlawfully conducting business under this subchapter without a valid license.
(w) Fail to make disclosures required under this subchapter or required under any other applicable state or federal law, rule, or regulation.
(x) Withhold any payment or make any payment, threat, or promise, directly or indirectly, to any person for the purpose of influencing the independent judgment of the person in connection with a residential mortgage loan, or withhold any payment or make any payment, threat, or promise, directly or indirectly, to any appraiser of a property for the purpose of influencing the independent judgment of the appraiser with respect to the value of the property.
(y) Cause or require a borrower to obtain property insurance coverage in an amount exceeding the replacement cost of improvements on the property, as determined by the property insurer.
2,689
Section
689. 224.77 (1m) (a) of the statutes is amended to read:
224.77 (1m) (a) The division may assess against a person who is registered under this chapter any person who violates this subchapter a forfeiture of not more than $2,000 $25,000 for each violation
enumerated under sub. (1) (a) to (o) or (r) and may further order restitution to any person suffering loss as a result of the violation.
2,690
Section
690. 224.77 (1m) (b) of the statutes is amended to read:
224.77 (1m) (b) A person may contest an assessment of forfeiture, or a restitution order, under par. (a) by sending, within 10 days after receipt of notice of the assessment or order 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.
2,691
Section
691. 224.77 (1m) (c) of the statutes is renumbered 224.77 (1m) (c) 1.
2,692
Section
692. 224.77 (1m) (c) 2. of the statutes is created to read:
224.77 (1m) (c) 2. All amounts ordered as restitution shall be paid to the person suffering loss within 10 days after receipt of notice of the order or, if the restitution order is contested under par. (b), within 10 days after receipt of the final decision after exhaustion of administrative review.
2,693
Section
693. 224.77 (1m) (d) of the statutes is amended to read:
224.77 (1m) (d) The attorney general may bring an action in the name of the state to collect any forfeiture imposed, or amount ordered as restitution, under this subsection if the forfeiture or restitution amount 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 or restitution amount has been paid.
2,694
Section
694. 224.77 (2) (title) of the statutes is repealed.
2,695
Section
695. 224.77 (2) of the statutes is renumbered 224.77 (2m) (a) 2. and amended to read:
224.77 (2m) (a) 2. The division may revoke, suspend or limit a certificate of registration issued under this subchapter or reprimand take any action specified in subd. 1. against a mortgage banker or mortgage broker registered under this subchapter, if based upon any act or omission described in subd. 1. of 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.
2,696
Section
696. 224.77 (2m) of the statutes is created to read:
224.77 (2m) Division action on license. (a) 1. In addition to any other authority provided to the division under this subchapter, if the division finds that a mortgage banker, mortgage loan originator, or mortgage broker has violated any provision of this subchapter or any rule promulgated by the division under this subchapter, the division may do any of the following:
a. Deny any application for initial issuance or renewal of a license.
b. Revoke, suspend, limit, or condition any license of the mortgage banker, mortgage loan originator, or mortgage broker.
c. Reprimand the mortgage banker, mortgage loan originator, or mortgage broker.
(b) In addition to any other authority provided to the division under this subchapter, if the division finds that an applicant for initial issuance or renewal of a license under this subchapter made any material misstatement in the application or withheld material information, or that the applicant no longer satisfies the requirements under s. 224.72 or 224.725 for issuance or renewal of the license, the division may deny the application or, if the license has already been issued, suspend or revoke the license.
2,697
Section
697. 224.77 (3) (a) and (b) of the statutes are consolidated, renumbered 224.77 (3) (a) (intro.) and amended to read:
224.77 (3) (a) Orders to prevent or correct actions. (intro.) The division may issue general and special orders necessary, including temporary orders that become immediately effective, to prevent or correct actions by a mortgage banker, mortgage loan originator, or mortgage broker that constitute cause under this section for revoking, suspending or limiting a certificate of registration. (b) Types of special orders. Special
a violation of any provision of this subchapter or of any rule promulgated under this subchapter, including special orders may direct that do any of the following:
1. Direct a mortgage banker, mortgage loan originator, or mortgage broker to cease and desist from engaging in a particular activity or may direct the, from conducting business, or from otherwise violating any provision of this subchapter or any rule promulgated under this subchapter.
2. Direct a mortgage banker, mortgage loan originator, or mortgage broker to refund or remit to a residential mortgage loan applicant or borrower amounts that the mortgage banker, mortgage loan originator, or mortgage broker got from actions which that constitute cause under this section for revoking, suspending or limiting a certificate of registration a violation of any provision of this subchapter or of any rule promulgated under this subchapter.
2,698
Section
698. 224.77 (3) (a) 3. and 4. of the statutes are created to read:
224.77 (3) (a) 3. Direct a mortgage banker, mortgage loan originator, or mortgage broker to cease business under a license issued under this subchapter if the division determines that the license was erroneously issued or the licensee is currently in violation of any provision of this subchapter or of any rule promulgated under this subchapter.
4. Direct a mortgage banker, mortgage loan originator, or mortgage broker to undertake any affirmative action, consistent with the provisions of this subchapter, that the division deems necessary.
2,699
Section
699. 224.77 (3m) of the statutes is amended to read:
224.77 (3m) Hearing rights for registration license denial, revocation, or suspension. A person whose certificate of registration license has been denied, revoked or, suspended, limited, or conditioned under this section may request a hearing under s. 227.44 within 30 days after the date of denial, revocation or, suspension, limitation, or conditioning of the certificate of registration license. The division may appoint a hearing examiner under s. 227.46 to conduct the hearing.
