Wisconsin Legislature: 2,772

2,758 Section 758. 234.01 (4n) (a) 3m. e. of the statutes is amended to read:

234.01 (4n) (a) 3m. e. The facility is located in a targeted area, as determined by the authority after considering the factors set out in s. 560.605 (2m) (c), 2005 stats., s. 560.605 (2m) (d), 2005 stats., s. 560.605 (2m) (e), 2005 stats., s. 560.605 (2m) (g), 2007 stats., and s. 560.605 (2m) (a), (b), and (f) to, and (h).

2,759 Section 759. 234.01 (5k) of the statutes is amended to read:

234.01 (5k) "Financial institution" means a bank, savings bank, savings and loan association, credit union, insurance company, finance company, mortgage banker registered licensed under s. 224.72, community development corporation, small business investment corporation, pension fund or other lender which provides commercial loans in this state.

2,760 Section 760. 234.03 (2m) of the statutes is amended to read:

234.03 (2m) To issue notes and bonds in accordance with ss. 234.08, 234.40, 234.50, 234.60, 234.61, 234.626, 234.63, and 234.65.

2,761 Section 761. 234.03 (11) of the statutes is amended to read:

234.03 (11) To collect fees and charges on mortgage loans and economic development loans and airport development loans under s. 234.63 (3), 2007 stats., for the purpose of paying all or a portion of authority costs as the authority determines are reasonable and as approved by the authority.

2,762 Section 762. 234.03 (13g) of the statutes is created to read:

234.03 (13g) To make or participate in the making and enter into commitments for the making of loans for the refinancing of mortgage loans under s. 234.605 and to enter into agreements with any banking institution, savings bank, savings and loan association, or credit union organized under the laws of this or any other state or of the United States having an office in this state regarding the refinancing of mortgage loans under s. 234.605.

2,763 Section 763. 234.04 (2) of the statutes is amended to read:

234.04 (2) The authority may make or participate in the making and enter into commitments for the making of long-term mortgage loans to eligible sponsors of housing projects for occupancy by persons and families of low and moderate income, or for the making of homeownership mortgage loans or housing rehabilitation loans or loans for the refinancing of qualified subprime loans under s. 234.592 to persons and families of low and moderate income, an applicant under s. 234.59 or 234.592, or other eligible beneficiaries as defined in s. 234.49. The loans may be made only upon the determination by the authority that they are not otherwise available from private lenders upon reasonably equivalent terms and conditions. The authority may not make a loan to a person whose name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the person provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a). The authority may employ, for such compensation as it determines, the services of any financial institution in connection with any loan.

2,764 Section 764. 234.08 (1) of the statutes is amended to read:

234.08 (1) The authority may issue its negotiable notes and bonds in such principal amount, as, in the opinion of the authority, is necessary to provide sufficient funds for achieving its corporate purposes, including the purchase of certain mortgages and securities and the making of secured loans for low- and moderate-income housing, for the rehabilitation of existing structures and for the construction of facilities appurtenant thereto as provided in this chapter; for the making of secured loans to assist eligible elderly homeowners in paying property taxes and special assessments; for the payment of interest on notes and bonds of the authority during construction; for the awarding of airport development loans under s. 234.63 (3); for the establishment of reserves to secure such notes and bonds; for the provision of moneys for the housing development fund in order to make temporary loans to sponsors of housing projects as provided in this chapter; and for all other expenditures of the authority incident to and necessary or convenient to carry out its corporate purposes and powers.

2,765 Section 765. 234.265 (2) of the statutes is amended to read:

234.265 (2) Records or portions of records consisting of personal or financial information provided by a person seeking a grant or loan under s. 234.63, 2007 stats., or s. 234.04, 234.08, 234.49, 234.59, 234.592, 234.605, 234.61, 234.63, 234.65, 234.67, 234.83, 234.84, 234.90, 234.905, 234.907, or 234.91, seeking a loan under ss. 234.621 to 234.626, seeking financial assistance under s. 234.66, 2005 stats., seeking mortgage loan refinancing from a lender under s. 234.605, seeking investment of funds under s. 234.03 (18m), or in which the authority has invested funds under s. 234.03 (18m), unless the person consents to disclosure of the information.

2,766 Section 766. 234.40 (4) of the statutes is amended to read:

234.40 (4) The limitations established in ss. 234.18, 234.50, 234.60, 234.61, 234.63, and 234.65 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for veterans housing loans in an aggregate principal amount exceeding $61,945,000, excluding bonds being issued to refund outstanding bonds.

2,767 Section 767. 234.49 (2) (a) 4. of the statutes is amended to read:

234.49 (2) (a) 4. To designate as an authorized lender the authority or any local government agency, housing authority under s. 59.53 (22), 61.73, 66.1201 or 66.1213, bank, savings bank, savings and loan institution, mortgage banker registered licensed under s. 224.72 or credit union, if the designee has a demonstrated history or potential of ability to adequately make and service housing rehabilitation loans.

2,768 Section 768. 234.50 (4) of the statutes is amended to read:

234.50 (4) The limitations established in ss. 234.18, 234.40, 234.60, 234.61, 234.63, and 234.65 are not applicable to bonds issued under the authority of this section. The authority may not have outstanding at any one time bonds for housing rehabilitation loans in an aggregate principal amount exceeding $100,000,000, excluding bonds being issued to refund outstanding bonds. The authority shall consult with and coordinate the issuance of bonds with the building commission prior to the issuance of bonds.

2,769 Section 769. 234.59 (1) (h) of the statutes is amended to read:

234.59 (1) (h) "Mortgage banker" means a mortgage banker registered licensed under s. 224.72, but does not include a person licensed under s. 138.09.

2,770 Section 770. 234.59 (1) (j) of the statutes is amended to read:

234.59 (1) (j) "Principal residence" means an eligible residential real property in this state which that an applicant maintains as a full-time residence, but does not use as a vacation home or for trade or business purposes.

2,771 Section 771. 234.59 (2) (intro.) of the statutes is amended to read:

234.59 (2) Powers and duties of the authority. (intro.) The authority shall establish and administer a homeownership mortgage loan program to encourage homeownership and to facilitate the acquisition or rehabilitation of eligible property by applicants. To implement the program, the authority:

2,772 Section 772. 234.59 (3) (c) of the statutes is amended to read:

234.59 (3) (c) The authority shall notify an eligible authorized lender if a person's name appears on the statewide support lien docket under s. 49.854 (2) (b). An eligible authorized lender may not make a loan to an applicant if it receives notification under this paragraph concerning the applicant, unless the applicant provides to the lender a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

2,773 Section 773. 234.592 of the statutes is created to read:

234.592 Qualified subprime loan refinancing. (1) Definitions. In this section:

(a) "Authorized lender" has the meaning given in s. 234.59 (1) (a).

(b) "Eligible property" has the meaning given in s. 234.59 (1) (d) 1.

(d) "Qualified subprime loan" means an adjustable rate single-family residential mortgage loan made after December 31, 2001, and before January 1, 2008.

(2) Powers and duties of the authority. The authority shall establish and administer a qualified subprime loan refinancing program to encourage homeownership and to facilitate the retention of eligible property by applicants. To implement the program, the authority:

(a) May finance the acquisition or replacement of a qualified subprime loan and may enter into contracts permitting an authorized lender to finance the acquisition or replacement of a qualified subprime loan or both.

(b) Shall maintain a current list of authorized lenders.

(c) May enter into agreements to insure or provide additional security for loans or bonds or notes issued under s. 234.60.

(3) Loan conditions. (a) Except as provided in par. (b), the authority may finance the acquisition or replacement of or enter into contracts permitting an authorized lender to finance the acquisition or replacement of an existing mortgage given by an applicant on an eligible property only if all of the following conditions are satisfied:

1. The eligible property is and will remain the principal residence of the applicant.

2. The existing mortgage was originally financed through a qualified subprime loan and has not subsequently been refinanced.

3. The authority makes a determination that the mortgage described in subd. 2. will be reasonably likely to cause financial hardship to the applicant if not refinanced.

4. The term of any refinancing agreement entered into under this paragraph does not exceed 30 years.

5. The monthly payments to be made by an applicant under an agreement entered into under this paragraph include principal, interest, property taxes, and insurance. In this subdivision, "insurance" includes mortgage insurance, homeowner's insurance, and, if applicable, flood insurance.

6. The authority complies with special rules for subprime refinancing established under 26 USC 143 (k) (12).

(b) The authority may not enter into an agreement under this subsection if the applicant's name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the applicant provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

2,774 Section 774. 234.60 (title) of the statutes is amended to read:

234.60 (title) Bonds for homeownership mortgage loans and qualified subprime loan refinancing.

2,775 Section 775. 234.60 (1) of the statutes is amended to read:

234.60 (1) The authority may issue its bonds or notes to fund homeownership mortgage loans or the refinancing of qualified subprime loans under s. 234.592.

2,776 Section 776. 234.60 (2) of the statutes is amended to read:

234.60 (2) The limitations in ss. 234.18, 234.40, 234.50, 234.61, 234.63, and 234.65 do not apply to bonds or notes issued under this section.

2,777 Section 777. 234.60 (5) (c) of the statutes is created to read:

234.60 (5) (c) The secretary of administration shall determine the date after which no bond or note may be issued under this section for the purpose of financing the acquisition or replacement of an existing mortgage under s. 234.592.

2,778 Section 778. 234.60 (9) of the statutes is amended to read:

234.60 (9) The executive director of the authority shall make every effort to encourage participation in the homeownership mortgage loan program and the qualified subprime loan refinancing program by women and minorities.

2,779 Section 779. 234.605 of the statutes is created to read:

234.605 Homeowner eviction and lien protection program. (1) In this section:

(a) "Eligible property" has the meaning given in s. 234.59 (1) (d) 1.

(b) "Lender" means any banking institution, savings bank, savings and loan association, or credit union organized under the laws of this or any other state or of the United States having an office in this state.

(2) Subject to the approval of all members of the authority, the authority may establish and administer a homeowner eviction and lien protection program to encourage the refinancing of mortgage loans by lenders in order to facilitate the retention of eligible property by persons and families.

(3) (a) Except as provided in par. (b), to implement the program, the authority may enter into agreements with lenders regarding the refinancing of a mortgage loan and may make or participate in the making and enter into commitments for the making of loans to refinance a mortgage loan if the authority first determines all of the following:

1. The applicant has made a reasonable effort to refinance the mortgage loan with the existing lender or loan servicer or with an organization approved by the authority, but the applicant has been unsuccessful in his or her effort. The authority shall designate and maintain a current list of organizations approved under this subdivision.

2. The lender will not refinance the mortgage loan in the absence of an agreement with the authority.

(b) The authority may not enter into an agreement with a lender under this section if the applicant's name appears on the statewide support lien docket under s. 49.854 (2) (b), unless the applicant provides to the authority a payment agreement that has been approved by the county child support agency under s. 59.53 (5) and that is consistent with rules promulgated under s. 49.858 (2) (a).

(4) The authority shall submit a quarterly report to the joint committee on finance. The report shall summarize the progress and performance of the program established under this section. The cochairpersons of the joint committee on finance may convene a meeting of the committee at any time to review or dissolve the program established under this section.

2,780 Section 780. 234.61 (1) of the statutes is amended to read:

234.61 (1) Upon the authorization of the department of health services, the authority may issue bonds or notes and make loans for the financing of housing projects which are residential facilities as defined in s. 46.28 (1) (d) and the development costs of those housing projects, if the department of health services has approved the residential facilities for financing under s. 46.28 (2). The limitations in ss. 234.18, 234.40, 234.50, 234.60, 234.63, and 234.65 do not apply to bonds or notes issued under this section. The definition of "nonprofit corporation" in s. 234.01 (9) does not apply to this section.

2,781 Section 781. 234.63 of the statutes is repealed.

2,782 Section 782. 321.60 (1) (a) 12. of the statutes is amended to read:

321.60 (1) (a) 12. A license or certificate of registration issued by the department of financial institutions, or a division of it, under ss. 138.09, 138.12, 217.06, 218.0101 to 218.0163, 218.02, 218.04, 218.05, 224.72, 224.725, or 224.93 or subch. IV of ch. 551.

2,783 Section 783. 422.501 (2) (b) 8. of the statutes is amended to read:

422.501 (2) (b) 8. A person registered licensed as a mortgage banker, mortgage loan originator, or mortgage broker under s. 224.72 or 224.725 if the person is acting within the course and scope of that registration the license.

2,784 Section 784. 428.202 (6) of the statutes is renumbered 428.202 (9) and amended to read:

428.202 (9) "Loan Mortgage loan originator" has the meaning given in s. 224.71 (1r) (6).

2,785 Section 785. 428.203 (9) (title) of the statutes is amended to read:

428.203 (9) (title) Unregistered Unlicensed mortgage bankers and brokers.

2,786 Section 786. 428.204 of the statutes is amended to read:

428.204 False statements. No lender, licensed lender, mortgage loan originator, mortgage banker, or mortgage broker may knowingly make, propose, or solicit fraudulent, false, or misleading statements on any document relating to a covered loan.

2,787 Section 787. 428.206 of the statutes is amended to read:

428.206 Recommending default. No lender, licensed lender, mortgage loan originator, mortgage banker, or mortgage broker may recommend or encourage an individual to default on an existing loan or other obligation before and in connection with the making of a covered loan that refinances all or any portion of that existing loan or obligation.

2,788 Section 788. 452.01 (3) (g) of the statutes is amended to read:

452.01 (3) (g) A person registered licensed as a mortgage banker under s. 224.72 who does not engage in activities described under sub. (2).

2,789 Section 789. 560.205 (1) (intro.) of the statutes is amended to read:

560.205 (1) Angel investment tax credits. (intro.) The department shall implement a program to certify businesses for purposes of s. 71.07 (5d). A business desiring certification shall submit an application to the department in each taxable year for which the business desires certification. The business shall specify in its application the investment amount it wishes to raise and the department may certify the business and determine the amount that qualifies for purposes of s. 71.07 (5d). Unless otherwise provided under the rules of the department, a business may be certified under this subsection, and may maintain such certification, only if the business satisfies all of the following conditions:

2,790 Section 790. 560.205 (1) (f) of the statutes is repealed and recreated to read: