SB62,249,1918 9. A subsidiary that is owned and controlled by a depository institution and
19regulated by a federal banking agency.
SB62,249,2020 10. An institution regulated by the farm credit administration.
SB62,249,2421 11. A person that only performs real estate brokerage activities and is licensed
22under s. 452.03, unless the person is compensated by a lender, mortgage broker, or
23mortgage loan originator or by any agent of a lender, mortgage broker, or mortgage
24loan originator.
SB62,250,2
112. A person solely involved in extensions of credit relating to time-share
2plans, as defined in 11 USC 101 (53D).
SB62, s. 581 3Section 581. 224.71 (4) (a) of the statutes is amended to read:
SB62,250,84 224.71 (4) (a) "Mortgage broker" means a person who is not excluded by par.
5(b) and who, on behalf of a residential mortgage loan applicant or an investor and for
6commission, money, or other thing of value, finds a residential mortgage loan or
7negotiates a land contract, residential mortgage loan or commitment for a
8residential mortgage loan or engages in table funding.
SB62, s. 582 9Section 582. 224.71 (4) (b) 1. to 3. of the statutes are repealed.
SB62, s. 583 10Section 583. 224.71 (4) (b) 4., 5., 6., 7. and 8. of the statutes are created to read:
SB62,250,1111 224.71 (4) (b) 4. A depository institution.
SB62,250,1312 5. A subsidiary that is owned and controlled by a depository institution and
13regulated by a federal banking agency.
SB62,250,1414 6. An institution regulated by the farm credit administration.
SB62,250,1815 7. A person that performs real estate brokerage activities only and is licensed
16under s. 452.03, unless the person is compensated by a lender, mortgage broker, or
17mortgage loan originator or by any agent of a lender, mortgage broker, or mortgage
18loan originator.
SB62,250,2019 8. A person solely involved in extensions of credit relating to time-share plans,
20as defined in 11 USC 101 (53D).
SB62, s. 584 21Section 584. 224.71 (5) of the statutes is renumbered 224.71 (17) and amended
22to read:
SB62,251,223 224.71 (17) "Table funding" means a transaction in which a person conducts
24a residential mortgage loan closing in the person's name with funds provided by a 3rd

1party and the person assigns the residential mortgage loan to the 3rd party within
224 hours of the residential mortgage loan closing.
SB62, s. 585 3Section 585. 224.71 (6) (a) 1. and 2. and (b) of the statutes are created to read:
SB62,251,44 224.71 (6) (a) 1. Takes a residential mortgage loan application.
SB62,251,55 2. Offers or negotiates terms of a residential mortgage loan.
SB62,251,66 (b) "Mortgage loan originator" does not include any of the following:
SB62,251,117 1. An individual engaged solely as a loan processor or underwriter, unless the
8individual represents to the public, through advertising or another means of
9communication such as the use of business cards, stationery, brochures, signs, rate
10lists, or other promotional items, that the individual can or will perform any of the
11activities of a mortgage loan originator.
SB62,251,1512 2. An individual who performs real estate brokerage activities only and is
13licensed under s. 452.03, unless the individual is compensated by a lender, mortgage
14broker, or another mortgage loan originator or by any agent of a lender, mortgage
15broker, or another mortgage loan originator.
SB62,251,1716 3. An individual solely involved in extensions of credit relating to time-share
17plans, as defined in 11 USC 101 (53D).
SB62, s. 586 18Section 586. 224.71 (7) of the statutes is created to read:
SB62,251,2519 224.71 (7) "Nationwide mortgage licensing system and registry" means the
20licensing and registration system developed and maintained by the Conference of
21State Bank Supervisors and the American Association of Residential Mortgage
22Regulators for licensed mortgage loan originators and mortgage loan originators
23exempt from licensing under s. 224.726 (1) or, if this system is no longer maintained,
24any system established by the secretary of the federal department of housing and
25urban development under P.L. 110-289, Title V, section 1509.
SB62, s. 587
1Section 587. 224.71 (8) of the statutes is created to read:
SB62,252,62 224.71 (8) "Negotiate," with respect to a residential mortgage loan, means to
3discuss, explain, or present the terms and conditions, including rates, fees, and other
4costs, of a residential mortgage loan with or to a residential mortgage loan applicant,
5but does not include making an underwriting decision on a residential mortgage loan
6or closing a residential mortgage loan.
SB62, s. 588 7Section 588. 224.71 (10) of the statutes is created to read:
SB62,252,98 224.71 (10) "Nontraditional mortgage product" means any mortgage product
9other than a 30-year fixed rate mortgage.
SB62, s. 589 10Section 589. 224.71 (11) of the statutes is created to read:
SB62,252,1211 224.71 (11) "Originate," with respect to a residential mortgage loan, means to
12make an underwriting decision on the residential mortgage loan and close the loan.
SB62, s. 590 13Section 590. 224.71 (12) of the statutes is created to read:
SB62,252,1614 224.71 (12) "Principal office," with respect to a mortgage banker or mortgage
15broker, means the place of business designated by the mortgage banker or mortgage
16broker as its principal place of business, as identified in the records of the division.
SB62, s. 591 17Section 591. 224.71 (13) of the statutes is created to read:
SB62,252,2018 224.71 (13) "Real estate brokerage activity" means any activity that involves
19offering or providing to the public real estate brokerage services involving
20residential real property in this state, including all of the following:
SB62,252,2221 (a) Acting as a real estate agent or real estate broker for a buyer, seller, lessor,
22or lessee of real property.
SB62,252,2423 (b) Bringing together parties interested in the sale, purchase, lease, rental, or
24exchange of real property.
SB62,253,3
1(c) Negotiating, on behalf of any party, any portion of a contract relating to the
2sale, purchase, lease, rental, or exchange of real property, other than in connection
3with providing financing for the transaction.
SB62,253,54 (d) Engaging in any activity for which a person engaged in the activity is
5required to be licensed under s. 452.03.
SB62,253,76 (e) Offering to engage in any activity, or act in any capacity, described in pars.
7(a) to (d).
SB62, s. 592 8Section 592. 224.71 (15) of the statutes is created to read:
SB62,253,109 224.71 (15) "Residential real property" means real property on which a
10dwelling is constructed or intended to be constructed.
SB62, s. 593 11Section 593. 224.71 (16) of the statutes is created to read:
SB62,253,1412 224.71 (16) "Services," with respect to a residential mortgage loan, means to
13receive payments on a note from the borrower and distribute these payments in
14accordance with the terms of the note or servicing agreement.
SB62, s. 594 15Section 594. 224.71 (18) of the statutes is created to read:
SB62,253,1716 224.71 (18) "Unique identifier" means a number or other identifier assigned
17by protocols established by the nationwide mortgage licensing system and registry.
SB62, s. 595 18Section 595. 224.72 (title) of the statutes is amended to read:
SB62,253,20 19224.72 (title) Registration Licensing of mortgage bankers, loan
20originators
and mortgage brokers.
SB62, s. 596 21Section 596. 224.72 (1) (intro.) of the statutes is repealed.
SB62, s. 597 22Section 597. 224.72 (1) (a) of the statutes is renumbered 224.71 (9) and
23amended to read:
SB62,254,224 224.71 (9) "Net worth" means total tangible assets less total liabilities of a
25person, or, if the person is a natural person an individual, total tangible assets less

1total liabilities exclusive of the person's principal residence and its furnishings and
2personal use vehicles.
SB62, s. 598 3Section 598. 224.72 (1) (b) of the statutes is repealed.
SB62, s. 599 4Section 599. 224.72 (1m) of the statutes is amended to read:
SB62,254,105 224.72 (1m) Registration License required. A person may not conduct
6business or
act as a mortgage banker, loan originator or mortgage broker, use the title
7"mortgage banker", "loan originator" or "mortgage broker",," or advertise or
8otherwise portray himself or, herself , or itself as a mortgage banker, loan originator
9or mortgage broker, unless the person has been issued a certificate of registration
10from
mortgage banker or mortgage broker license by the division.
SB62, s. 600 11Section 600. 224.72 (2) (title) of the statutes is repealed and recreated to read:
SB62,254,1212 224.72 (2) (title) License applications.
SB62, s. 601 13Section 601. 224.72 (2) (intro.) of the statutes is renumbered 224.72 (2) (am)
14and amended to read:
SB62,254,2215 224.72 (2) (am) A person desiring to act as Applicants for a mortgage banker,
16loan originator
or mortgage broker license shall apply for a certificate of registration
17to the division, on forms and in the manner prescribed by the division, and shall pay
18the fee specified in rules promulgated under sub. (8). An application shall satisfy all
19of the following:
Forms prescribed by the division under this paragraph may contain
20any content or requirement that the division, in its discretion, determines necessary
21and these forms may be modified or updated as necessary by the division to carry out
22the purposes of this subchapter.
SB62, s. 602 23Section 602. 224.72 (2) (a) and (b) of the statutes are repealed.
SB62, s. 603 24Section 603. 224.72 (2) (c) (title) of the statutes is repealed.
SB62, s. 604 25Section 604. 224.72 (2) (d) of the statutes is amended to read:
SB62,255,6
1224.72 (2) (d) Social security number exceptions. 1. If an applicant who is an
2individual does not have a social security number, the applicant, as a condition of
3applying for or applying to renew a registration license under this section, shall
4submit a statement made or subscribed under oath or affirmation to the division that
5the applicant does not have a social security number. The form of the statement shall
6be prescribed by the department of children and families.
SB62,255,87 2. Any certificate of registration license issued or renewed in reliance upon a
8false statement submitted by an applicant under subd. 1. is invalid.
SB62, s. 605 9Section 605. 224.72 (2m) of the statutes is created to read:
SB62,255,1210 224.72 (2m) Licensed offices. Each mortgage banker or mortgage broker shall
11obtain and maintain a license for its principal office and a separate license for each
12branch office.
SB62, s. 606 13Section 606. 224.72 (3) (title) of the statutes is repealed.
SB62, s. 607 14Section 607. 224.72 (3) (a) of the statutes is renumbered 224.725 (2) (d) and
15amended to read:
SB62,255,1916 224.725 (2) (d) In addition to the requirements of sub. (2), an Any applicant for
17registration as a residential mortgage loan originator license shall include in the
18application the name of the mortgage banker or mortgage broker who will employ
19the residential mortgage loan originator.
SB62, s. 608 20Section 608. 224.72 (3) (b) and (c) of the statutes are repealed.
SB62, s. 609 21Section 609. 224.72 (4) (title) of the statutes is amended to read:
SB62,255,2322 224.72 (4) (title) Additional requirement for mortgage banker applicant
23requirements.
SB62, s. 610 24Section 610. 224.72 (4) (a) (intro.) of the statutes is amended to read:
SB62,256,3
1224.72 (4) (a) With a bona fide office. (intro.) In addition to the requirements
2of sub. (2), an applicant for registration as a mortgage banker who maintains a bona
3fide office
or mortgage broker license shall do at least one all of the following:
SB62, s. 611 4Section 611. 224.72 (4) (a) 1. of the statutes is repealed.
SB62, s. 612 5Section 612. 224.72 (4) (a) 2. of the statutes is amended to read:
SB62,256,146 224.72 (4) (a) 2. `File a bond.' File with the division a commercial surety bond
7which is in the amount of $25,000 $300,000 for a mortgage banker or $120,000 for
8a mortgage broker
, is issued by a surety company authorized to do business in this
9state, secures the applicant's faithful performance of all duties and obligations of a
10mortgage banker or mortgage broker, is payable to the division for the benefit of
11persons to whom the mortgage banker or mortgage broker provided services as a
12mortgage banker or mortgage broker, is issued on a form that is acceptable to the
13division and provides that the bond may not be terminated without at least 30 days'
14written notice to the division.
SB62, s. 613 15Section 613. 224.72 (4) (a) 3. of the statutes is repealed.
SB62, s. 614 16Section 614. 224.72 (4) (a) 4. of the statutes is amended to read:
SB62,256,2417 224.72 (4) (a) 4. `Minimum net worth.' Submit evidence that establishes, to the
18division's satisfaction, a minimum net worth of $25,000 and a warehouse line of
19credit of not less than $250,000 or a minimum net worth of $100,000
$250,000 for a
20mortgage banker or $100,000 for a mortgage broker
. Evidence of net worth shall
21include the submission of a balance sheet that is recent financial statements
22accompanied by a written statement by an independent certified public accountant
23attesting that he or she has reviewed the balance sheet financial statements in
24accordance with generally accepted accounting principles.
SB62, s. 615 25Section 615. 224.72 (4) (d) of the statutes is repealed.
SB62, s. 616
1Section 616. 224.72 (4m) of the statutes is repealed.
SB62, s. 617 2Section 617. 224.72 (4n) (intro.) of the statutes is amended to read:
SB62,257,63 224.72 (4n) Security held by the division; release. (intro.) The division or its
4agent shall hold security filed under subs. (4) (a) 3. and (4m) (a) 2. s. 224.72 (4) (a)
53., 2007 stats., and s. 224.72 (4m) (a) 2., 2007 stats.
The security shall remain in
6effect, and the division may not release it, until all of the following conditions are met:
SB62, s. 618 7Section 618. 224.72 (4n) (a) 2. of the statutes is amended to read:
SB62,257,98 224.72 (4n) (a) 2. The date on which the mortgage banker's or mortgage
9broker's registration license expires or is revoked.
SB62, s. 619 10Section 619. 224.72 (4r) of the statutes is repealed.
SB62, s. 620 11Section 620. 224.72 (5) (title) of the statutes is renumbered 224.72 (5m) (title)
12and amended to read:
SB62,257,1313 224.72 (5m) (title) Completion of registration licensing process.
SB62, s. 621 14Section 621. 224.72 (5) (a) of the statutes is renumbered 224.725 (3) (intro.)
15and amended to read:
SB62,257,2216 224.725 (3) Loan originator Issuance of license. (intro.) Except as provided
17in sub. (7m) (6), upon receiving a properly completed the filing of an application for
18registration as a mortgage loan originator and license and the payment of the fee
19specified in rules promulgated under sub. (8) and upon an applicant's compliance
20with sub. (3) (a) and, if required, sub. (3) (b)
, the division may issue to the applicant
21a certificate of registration as a mortgage loan originator. license if the division finds
22that all of the following apply:
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