SB62: Bill Text

SB62,250,20 8. A person solely involved in extensions of credit relating to time-share plans, as defined in 11 USC 101 (53D).

SB62, s. 584 Section 584. 224.71 (5) of the statutes is renumbered 224.71 (17) and amended to read:

SB62,251,2 224.71 (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.

SB62, s. 585 Section 585. 224.71 (6) (a) 1. and 2. and (b) of the statutes are created to read:

SB62,251,4 224.71 (6) (a) 1. Takes a residential mortgage loan application.

SB62,251,5 2. Offers or negotiates terms of a residential mortgage loan.

SB62,251,6 (b) "Mortgage loan originator" does not include any of the following:

SB62,251,11 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.

SB62,251,15 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.

SB62,251,17 3. An individual solely involved in extensions of credit relating to time-share plans, as defined in 11 USC 101 (53D).

SB62, s. 586 Section 586. 224.71 (7) of the statutes is created to read:

SB62,251,25 224.71 (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loan originators and mortgage loan originators exempt from licensing under s. 224.726 (1) or, if this system is no longer maintained, any system established by the secretary of the federal department of housing and urban development under P.L. 110-289, Title V, section 1509.

SB62, s. 587 Section 587. 224.71 (8) of the statutes is created to read:

SB62,252,6 224.71 (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.

SB62, s. 588 Section 588. 224.71 (10) of the statutes is created to read:

SB62,252,9 224.71 (10) "Nontraditional mortgage product" means any mortgage product other than a 30-year fixed rate mortgage.

SB62, s. 589 Section 589. 224.71 (11) of the statutes is created to read:

SB62,252,12 224.71 (11) "Originate," with respect to a residential mortgage loan, means to make an underwriting decision on the residential mortgage loan and close the loan.

SB62, s. 590 Section 590. 224.71 (12) of the statutes is created to read:

SB62,252,16 224.71 (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.

SB62, s. 591 Section 591. 224.71 (13) of the statutes is created to read:

SB62,252,20 224.71 (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:

SB62,252,22 (a) Acting as a real estate agent or real estate broker for a buyer, seller, lessor, or lessee of real property.

SB62,252,24 (b) Bringing together parties interested in the sale, purchase, lease, rental, or exchange of real property.

SB62,253,3 (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.

SB62,253,5 (d) Engaging in any activity for which a person engaged in the activity is required to be licensed under s. 452.03.

SB62,253,7 (e) Offering to engage in any activity, or act in any capacity, described in pars. (a) to (d).

SB62, s. 592 Section 592. 224.71 (15) of the statutes is created to read:

SB62,253,10 224.71 (15) "Residential real property" means real property on which a dwelling is constructed or intended to be constructed.

SB62, s. 593 Section 593. 224.71 (16) of the statutes is created to read:

SB62,253,14 224.71 (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.

SB62, s. 594 Section 594. 224.71 (18) of the statutes is created to read:

SB62,253,17 224.71 (18) "Unique identifier" means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry.

SB62, s. 595 Section 595. 224.72 (title) of the statutes is amended to read:

SB62,253,20 224.72 (title) Registration Licensing of mortgage bankers, loan originators and mortgage brokers.

SB62, s. 596 Section 596. 224.72 (1) (intro.) of the statutes is repealed.

SB62, s. 597 Section 597. 224.72 (1) (a) of the statutes is renumbered 224.71 (9) and amended to read:

SB62,254,2 224.71 (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.

SB62, s. 598 Section 598. 224.72 (1) (b) of the statutes is repealed.

SB62, s. 599 Section 599. 224.72 (1m) of the statutes is amended to read:

SB62,254,10 224.72 (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.

SB62, s. 600 Section 600. 224.72 (2) (title) of the statutes is repealed and recreated to read:

SB62,254,12 224.72 (2) (title) License applications.

SB62, s. 601 Section 601. 224.72 (2) (intro.) of the statutes is renumbered 224.72 (2) (am) and amended to read:

SB62,254,22 224.72 (2) (am) A person desiring to act as Applicants for a mortgage banker, loan originator or mortgage broker license shall apply for a certificate of registration to the division, on forms and in the manner prescribed by the division, and shall pay the fee specified in rules promulgated under sub. (8). An application shall satisfy all of the following: Forms prescribed by the division under this paragraph may contain any content or requirement that the division, in its discretion, determines necessary and these forms may be modified or updated as necessary by the division to carry out the purposes of this subchapter.

SB62, s. 602 Section 602. 224.72 (2) (a) and (b) of the statutes are repealed.

SB62, s. 603 Section 603. 224.72 (2) (c) (title) of the statutes is repealed.

SB62, s. 604 Section 604. 224.72 (2) (d) of the statutes is amended to read:

SB62,255,6 224.72 (2) (d) Social security number exceptions. 1. If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a registration license under this section, shall submit a statement made or subscribed under oath or affirmation to the division that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of children and families.

SB62,255,8 2. Any certificate of registration license issued or renewed in reliance upon a false statement submitted by an applicant under subd. 1. is invalid.

SB62, s. 605 Section 605. 224.72 (2m) of the statutes is created to read:

SB62,255,12 224.72 (2m) Licensed offices. Each mortgage banker or mortgage broker shall obtain and maintain a license for its principal office and a separate license for each branch office.

SB62, s. 606 Section 606. 224.72 (3) (title) of the statutes is repealed.

SB62, s. 607 Section 607. 224.72 (3) (a) of the statutes is renumbered 224.725 (2) (d) and amended to read:

SB62,255,19 224.725 (2) (d) In addition to the requirements of sub. (2), an Any applicant for registration as a residential mortgage loan originator license shall include in the application the name of the mortgage banker or mortgage broker who will employ the residential mortgage loan originator.

SB62, s. 608 Section 608. 224.72 (3) (b) and (c) of the statutes are repealed.

SB62, s. 609 Section 609. 224.72 (4) (title) of the statutes is amended to read:

SB62,255,23 224.72 (4) (title) Additional requirement for mortgage banker applicant requirements.

SB62, s. 610 Section 610. 224.72 (4) (a) (intro.) of the statutes is amended to read:

SB62,256,3 224.72 (4) (a) With a bona fide office. (intro.) In addition to the requirements of sub. (2), an applicant for registration as a mortgage banker who maintains a bona fide office or mortgage broker license shall do at least one all of the following:

SB62, s. 611 Section 611. 224.72 (4) (a) 1. of the statutes is repealed.

SB62, s. 612 Section 612. 224.72 (4) (a) 2. of the statutes is amended to read:

SB62,256,14 224.72 (4) (a) 2. `File a bond.' File with the division a commercial surety bond which is in the amount of $25,000 $300,000 for a mortgage banker or $120,000 for a mortgage broker, is issued by a surety company authorized to do business in this state, secures the applicant's faithful performance of all duties and obligations of a mortgage banker or mortgage broker, is payable to the division for the benefit of persons to whom the mortgage banker or mortgage broker provided services as a mortgage banker or mortgage broker, is issued on a form that is acceptable to the division and provides that the bond may not be terminated without at least 30 days' written notice to the division.

SB62, s. 613 Section 613. 224.72 (4) (a) 3. of the statutes is repealed.

SB62, s. 614 Section 614. 224.72 (4) (a) 4. of the statutes is amended to read:

SB62,256,24 224.72 (4) (a) 4. `Minimum net worth.' Submit evidence that establishes, to the division's satisfaction, a minimum net worth of $25,000 and a warehouse line of credit of not less than $250,000 or a minimum net worth of $100,000 $250,000 for a mortgage banker or $100,000 for a mortgage broker. Evidence of net worth shall include the submission of a balance sheet that is recent financial statements accompanied by a written statement by an independent certified public accountant attesting that he or she has reviewed the balance sheet financial statements in accordance with generally accepted accounting principles.

SB62, s. 615 Section 615. 224.72 (4) (d) of the statutes is repealed.

SB62, s. 616 Section 616. 224.72 (4m) of the statutes is repealed.

SB62, s. 617 Section 617. 224.72 (4n) (intro.) of the statutes is amended to read:

SB62,257,6 224.72 (4n) Security held by the division; release. (intro.) The division or its agent shall hold security filed under subs. (4) (a) 3. and (4m) (a) 2. s. 224.72 (4) (a) 3., 2007 stats., and s. 224.72 (4m) (a) 2., 2007 stats. The security shall remain in effect, and the division may not release it, until all of the following conditions are met:

SB62, s. 618 Section 618. 224.72 (4n) (a) 2. of the statutes is amended to read:

SB62,257,9 224.72 (4n) (a) 2. The date on which the mortgage banker's or mortgage broker's registration license expires or is revoked.

SB62, s. 619 Section 619. 224.72 (4r) of the statutes is repealed.

SB62, s. 620 Section 620. 224.72 (5) (title) of the statutes is renumbered 224.72 (5m) (title) and amended to read:

SB62,257,13 224.72 (5m) (title) Completion of registration licensing process.

SB62, s. 621 Section 621. 224.72 (5) (a) of the statutes is renumbered 224.725 (3) (intro.) and amended to read:

SB62,257,22 224.725 (3) Loan originator Issuance of license. (intro.) Except as provided in sub. (7m) (6), upon receiving a properly completed the filing of an application for registration as a mortgage loan originator and license and the payment of the fee specified in rules promulgated under sub. (8) and upon an applicant's compliance with sub. (3) (a) and, if required, sub. (3) (b), the division may issue to the applicant a certificate of registration as a mortgage loan originator. license if the division finds that all of the following apply:

SB62, s. 622 Section 622. 224.72 (5) (b) of the statutes is renumbered 224.72 (5m) and amended to read:

SB62,258,14 224.72 (5m) Mortgage banker and mortgage broker. Except as provided in sub. (7m), upon receiving a properly completed the filing of an application for registration as a mortgage banker or a mortgage broker, license and the payment of the fee specified in rules promulgated under sub. (8) and satisfactory evidence of compliance with subs. (4) and (4m), the division may shall make an investigation of the applicant including, if the applicant is a partnership, limited liability company, association, or corporation, the members or officers and directors, respectively, of the applicant. If the division finds that the character, general fitness, and financial responsibility of the applicant, including its members or officers and directors if the applicant is a partnership, limited liability company, association, or corporation, warrant the belief that the business will be operated in compliance with this subchapter, the division shall issue to the applicant a certificate of registration as a mortgage banker or mortgage broker license. A mortgage banker or mortgage broker license is not assignable or transferable.

SB62, s. 623 Section 623. 224.72 (7) (title) of the statutes is repealed and recreated to read:

SB62,258,16 224.72 (7) (title) License renewal.

SB62, s. 624 Section 624. 224.72 (7) (a) of the statutes is renumbered 224.72 (7) (am) and amended to read:

SB62,259,2 224.72 (7) (am) A loan originator, mortgage broker or mortgage banker shall may apply to renew a certificate of registration license issued under this section by timely submitting to, on forms and in the manner prescribed by the division, a completed renewal application and the all required renewal fee specified in rules promulgated under sub. (8) on or before the renewal date specified in rules promulgated under sub. (8) fees. The division may not renew a license issued under this section unless the division finds that the mortgage broker or mortgage banker continues to meet the minimum standards for license issuance under this section.

SB62, s. 625 Section 625. 224.72 (7) (b) of the statutes is repealed.

SB62, s. 626 Section 626. 224.72 (7) (bm) of the statutes is created to read:

SB62,259,8 224.72 (7) (bm) The license of a mortgage broker or mortgage banker who fails to satisfy the minimum standards for license renewal shall expire. The division may, by rule, provide for the reinstatement of expired licenses consistent with the standards established by the nationwide mortgage licensing system and registry.

SB62, s. 627 Section 627. 224.72 (7) (c), (d) and (e) of the statutes are repealed.

SB62, s. 628 Section 628. 224.72 (7m) (intro.) of the statutes is amended to read:

SB62,259,13 224.72 (7m) Denial of application for issuance or renewal of registration certain reasons. (intro.) The division may not issue or renew a certificate of registration license under this section if any of the following applies: