SB62,273,8
232. Interviewing or examining under oath
any mortgage banker, mortgage loan
24originator, or mortgage broker, any of the members, officers, directors, agents,
25employees
, contractors, or customers of the mortgage banker,
mortgage loan
1originator
, or mortgage broker
. The division may require a mortgage banker, loan
2originator or mortgage broker who is examined under this paragraph to pay to the
3division a reasonable fee for the costs of conducting the examination.
, or any other
4person whose testimony the division deems to be relevant. The division may direct,
5subpoena, or order the attendance of a person to provide testimony under this
6subdivision and may direct, subpoena, or order the person to produce books,
7accounts, records, files, and any other document the division deems relevant to the
8inquiry, investigation, or examination.
SB62, s. 653
9Section
653. 224.74 (2) (ag) 3. and 4. of the statutes are created to read:
SB62,273,1410
224.74
(2) (ag) 3. Direct or order any licensee under this subchapter to make
11or compile reports or other information, in a format directed by the division, that the
12division considers necessary to carry out any investigation or examination under this
13subchapter, including any accounting compilation or other loan transaction data,
14list, or information.
SB62,273,1815
4. Examine, access, receive, and use any other records, documents, or other
16information that the division deems relevant to the inquiry, investigation, or
17examination, regardless of the location, possession, control, or custody of the records,
18documents, or information, including any of the following:
SB62,273,2019
a. Criminal, civil, and administrative history information, including conviction
20information and nonconviction information to the extent permitted by law.
SB62,273,2221
b. Personal history and experience information, including credit reports
22obtained from a consumer reporting agency, as defined in s. 100.54 (1) (c).
SB62, s. 654
23Section
654. 224.74 (2) (ar) of the statutes is created to read:
SB62,274,1024
224.74
(2) (ar) In making any investigation or examination authorized under
25this subchapter, the division may control access to any documents and records of the
1licensee or of any other person under investigation or examination. The division may
2take possession of the documents and records or place a person in exclusive charge
3of the documents and records in the place where they are usually kept. During the
4period of control, no person may remove or attempt to remove any of the documents
5and records except with the consent of the division or by court order. Unless the
6division has reasonable grounds to believe the documents and records have been or
7are at risk of being altered or destroyed for purposes of concealing a violation of this
8subchapter, the licensee or owner or custodian of the documents and records shall
9have access to the documents and records as necessary to conduct its ordinary
10business affairs.
SB62, s. 655
11Section
655. 224.74 (2) (b) of the statutes is amended to read:
SB62,274,2012
224.74
(2) (b)
Confidentiality. Examination The division shall prepare a report
13for each investigation or examination conducted under this subsection. These 14reports
, and correspondence regarding
the these reports
, are confidential, except
15that the division may release
examination these reports and correspondence in
16connection with a disciplinary proceeding conducted by the division, a liquidation
17proceeding
, or a criminal investigation or proceeding.
In addition, any information
18from these reports or correspondence may be provided to the nationwide mortgage
19licensing system and registry and is not confidential to the extent specified in s.
20224.728 (4) (b) and (c).
SB62, s. 656
21Section
656. 224.74 (2) (c) of the statutes is created to read:
SB62,275,222
224.74
(2) (c) The division may require a mortgage banker, mortgage loan
23originator, or mortgage broker who is investigated or examined under this subsection
24to pay to the division a reasonable fee for the costs of conducting the investigation
25or examination. A mortgage banker, mortgage loan originator, or mortgage broker
1shall pay these costs to the division within 30 days after the division demands
2payment of these costs.
SB62, s. 657
3Section
657. 224.74 (3) of the statutes is created to read:
SB62,275,54
224.74
(3) Additional division authority. To carry out the purposes of this
5section, the division may do any of the following:
SB62,275,86
(a) Retain attorneys, accountants, and other professionals and specialists as
7examiners, auditors, or investigators to conduct or assist in the conduct of
8investigations or examinations.
SB62,275,129
(b) Enter into agreements or relationships with other government officials or
10regulatory associations to improve efficiencies and reduce regulatory burden by
11sharing resources, standardized or uniform methods or procedures, and documents,
12records, or information obtained under this section.
SB62,275,1513
(c) Use, hire, contract, or employ public or privately available analytical
14systems, methods, or software to examine or investigate any licensee or other person
15subject to investigation or examination.
SB62,275,1716
(d) Accept and rely on investigation or examination reports made by other
17government officials, in this state or elsewhere.
SB62,275,2018
(e) Accept audit reports made by an independent certified public accountant for
19the licensee or another person relevant to the investigation or examination and
20incorporate any such audit report into any report of the division.
SB62, s. 658
21Section
658. 224.75 (title) of the statutes is amended to read:
SB62,275,23
22224.75 (title)
Record-keeping requirements for mortgage bankers and
23mortgage brokers licensees.
SB62, s. 659
24Section
659. 224.75 (1) (a) of the statutes is amended to read:
SB62,276,5
1224.75
(1) (a)
Fee record system. A mortgage banker or mortgage broker shall
2establish and maintain a record system which shows all fees which a mortgage
3banker or mortgage broker charged a
residential mortgage loan applicant or a
4mortgagor
in connection with a residential mortgage loan. The record shall show the
5application or disposition of those fees.
SB62, s. 660
6Section
660. 224.75 (1) (b) (intro.) of the statutes is amended to read:
SB62,276,97
224.75
(1) (b)
Loan application record system. (intro.) A mortgage banker or
8mortgage broker shall establish and maintain a record system containing all of the
9following information for each
residential mortgage loan application:
SB62, s. 661
10Section
661. 224.75 (1) (b) 6. and 7. of the statutes are created to read:
SB62,276,1111
224.75
(1) (b) 6. The name of the mortgage loan originator.
SB62,276,1212
7. The loan amount.
SB62, s. 662
13Section
662. 224.75 (1) (c) (intro.) of the statutes is amended to read:
SB62,276,1714
224.75
(1) (c)
Loan application documents. (intro.) A mortgage banker or
15mortgage broker shall maintain for each
residential mortgage loan application all of
16the following documents, if used by the mortgage banker or mortgage broker in
17connection with the
residential mortgage loan application file:
SB62, s. 663
18Section
663. 224.75 (1) (d) of the statutes is renumbered 224.75 (1) (d) (intro.)
19and amended to read:
SB62,276,2220
224.75
(1) (d)
Loan servicing records and documents. (intro.) A mortgage
21banker shall maintain for each
residential mortgage loan serviced by the mortgage
22banker a copy of or a record of all
of the following:
SB62,276,23
231. All correspondence relating to the loan.
SB62, s. 664
24Section
664. 224.75 (1) (d) 2., 3., 4. and 5. of the statutes are created to read:
SB62,276,2525
224.75
(1) (d) 2. All payments received from the borrower.
SB62,277,1
13. All charges assessed to the borrower's account.
SB62,277,22
4. All payments made by the mortgage banker on behalf of the borrower.
SB62,277,33
5. The unpaid balance on the borrower's account.
SB62, s. 665
4Section
665. 224.75 (2) of the statutes is amended to read:
SB62,277,215
224.75
(2) Period of record retention. A mortgage banker or mortgage broker
6shall keep for at least
25 36 months
, in an office of the mortgage banker or mortgage
7broker licensed under this subchapter, all books and records that, in the opinion of
8the division, will enable the division to determine whether the mortgage banker or
9mortgage broker is in compliance with the provisions of this subchapter. These books
10and records include copies of all deposit receipts, canceled checks, trust account
11records, the records which a mortgage banker or mortgage broker maintains under
12sub. (1) (c) or (d)
, and other relevant documents or correspondence received or
13prepared by the mortgage banker or mortgage broker in connection with a
14residential mortgage loan or
residential mortgage loan application. The retention
15period begins on the date the
residential mortgage loan is closed or, if the loan is not
16closed, the date of loan application. If the
residential mortgage loan is serviced by
17a mortgage banker, the retention period commences on the date that the loan is paid
18in full.
The mortgage banker or mortgage broker shall make the records available
19for inspection and copying by the division. If the records are not kept within this
20state, the mortgage banker or mortgage broker shall, upon request of the division,
21promptly send exact and complete copies of requested records to the division.
SB62, s. 666
22Section
666. 224.75 (3) of the statutes is amended to read:
SB62,278,223
224.75
(3) Contents of credit and appraisal reports. (a)
Credit report. If a
24mortgage banker or mortgage broker charges a
residential mortgage loan applicant
25a separate fee for a credit report, the credit report shall consist, at a minimum, of a
1written statement indicating the name of the credit reporting agency which
2investigated the credit history of the applicant.
SB62,278,113
(b)
Appraisal report. If a mortgage banker or mortgage broker charges a
4residential mortgage loan applicant a separate fee for an appraisal report, the
5appraisal report shall consist, at a minimum, of a written statement indicating the
6appraiser's opinion of the value of the property appraised for
residential mortgage
7loan purposes, the basis for that opinion and the name of the person who conducted
8the appraisal. If requested by a
residential mortgage loan applicant, a mortgage
9banker or mortgage broker shall provide the loan applicant with a copy of any written
10appraisal report held by the mortgage banker or mortgage broker, if the loan
11applicant paid a fee for the report.
SB62, s. 667
12Section
667. 224.75 (4) of the statutes is amended to read:
SB62,278,1713
224.75
(4) Responsibility for forms. A mortgage banker or mortgage broker
14is responsible for the preparation and correctness of all entries on forms, documents
15and records which are under the mortgage banker's or mortgage broker's control and
16which are not dependent on information provided by the
residential mortgage loan
17applicant or a 3rd party.
SB62, s. 668
18Section
668. 224.75 (6) of the statutes is created to read:
SB62,278,2519
224.75
(6) Furnishing books and records. Upon request by the division, any
20licensee under this subchapter, and any other person whom the division has
21authority to investigate and examine under s. 224.74 (2), shall make any books and
22records requested by the division available for inspection and copying by the division.
23If any records are kept at a licensed office not located within this state, the mortgage
24banker or mortgage broker shall, upon request of the division, promptly deliver such
25documents to any location within this state specified by the division.
SB62, s. 669
1Section
669. 224.755 (title) of the statutes is repealed and recreated to read:
SB62,279,3
2224.755 (title)
Education and testing requirements for mortgage loan
3originators.
SB62, s. 670
4Section
670. 224.755 of the statutes is renumbered 224.755 (5) and amended
5to read:
SB62,279,116
224.755
(5) Compliance records. A
mortgage loan originator shall keep
7records documenting compliance with
s. 224.72 (7) (d)
this section for at least 4 years.
8The technical college system board and any professional trade association or other
9person that administers examinations or provides education under s. 224.72 (7) (d)
10shall maintain records documenting attendance and examination performance for
11at least 4 years.
SB62, s. 671
12Section
671. 224.755 (1), (2), (3) and (4) of the statutes are created to read:
SB62,279,1613
224.755
(1) Education requirements applicable prior to license issuance.
14Subject to sub. (3) (a) and (c), an applicant for a license under s. 224.725 (1), prior to
15the division's issuance of the license, shall complete at least 20 hours of education,
16including a minimum of all of the following:
SB62,279,1717
(a) Three hours of federal law and regulations.
SB62,279,1918
(b) Three hours of ethics, including instruction on fraud, consumer protection,
19and fair lending issues.
SB62,279,2120
(c) Two hours of training related to lending standards for the nontraditional
21mortgage product marketplace.
SB62,279,25
22(2) Continuing education requirements. Subject to subs. (3) (a), (c), (d), and
23(f), an applicant for renewal of a license under s. 224.725 (5), prior to the division's
24renewal of the license, shall annually complete at least 8 hours of education,
25including a minimum of all of the following:
SB62,280,1
1(a) Three hours of federal law and regulations.
SB62,280,32
(b) Two hours of ethics, including instruction on fraud, consumer protection,
3and fair lending issues.
SB62,280,54
(c) Two hours of training related to lending standards for the nontraditional
5mortgage product marketplace.
SB62,280,9
6(3) Education approval. (a) No education course may count toward the
7requirement under sub. (1) or (2) unless the course has been reviewed and approved
8by the nationwide mortgage licensing system and registry based upon reasonable
9standards, including review and approval of the course provider.
SB62,280,1110
(b) An education course meeting the standard under par. (a) may count toward
11the requirements under subs. (1) and (2) even if the course is any of the following:
SB62,280,1412
1. Provided by the applicant's or licensee's employer, by an entity affiliated with
13the applicant or licensee by an agency contract, or by any subsidiary or affiliate of
14such an employer or affiliated entity.
SB62,280,1515
2. Offered through the Internet or another online or electronic medium.
SB62,280,1616
3. Taken in another state.
SB62,280,2417
(c) Subject to any rule promulgated under s. 224.72 (7) (bm) or 224.725 (5) (b),
18if an individual was previously registered as a loan originator under s. 224.72, 2007
19stats., or previously licensed as a mortgage loan originator under s. 224.725, the
20division may not issue or renew a mortgage loan originator license for the individual
21under s. 224.725 unless the individual satisfies the requirements under sub. (1) or
22(2) or demonstrates to the division's satisfaction that the individual has completed
23all education requirements applicable to the individual in the last year in which the
24individual's license or registration was valid.
SB62,281,5
1(d) Except as provided in any rule promulgated under s. 224.72 (7) (bm), a
2licensed mortgage loan originator may receive credit for a continuing education
3course only in the year in which the course is taken and may not take the same
4approved course in the same or successive years to meet the requirements under sub.
5(2).
SB62,281,96
(e) A licensed mortgage loan originator who is an approved instructor of an
7approved continuing education course may receive credit for the licensed mortgage
8loan originator's own annual continuing education requirement at the rate of 2 hours
9of credit for every one hour taught.
SB62,281,1210
(f) The division may, by rule, allow an applicant for renewal of a license under
11s. 224.725 (5) to make up any deficiency in meeting the requirements specified in sub.
12(2).
SB62,281,16
13(4) Testing requirements. (a) An applicant for a license under s. 224.725 (1),
14prior to the division's issuance of the license, shall pass a written test meeting the
15standards under par. (b). An individual shall answer at least 75 percent of the test
16questions correctly to achieve a passing test score.
SB62,281,2017
(b) 1. No test may satisfy the requirement under par. (a) unless the test is
18developed by the nationwide mortgage licensing system and registry and
19administered by a test provider approved by the nationwide mortgage licensing
20system and registry based upon reasonable standards.
SB62,281,2321
2. A test does not meet the standard under subd. 1. unless the test adequately
22measures the applicant's knowledge and comprehension in appropriate subject
23areas, including all of the following:
SB62,282,2
1b. Federal and state law, regulations, and rules pertaining to mortgage
2origination.
SB62,282,53
c. Federal and state law, regulations, and rules relating to residential mortgage
4transactions, including instruction on fraud, consumer protection, the
5nontraditional mortgage product marketplace, and fair lending issues.
SB62,282,106
(c) A written test meeting the standards under par. (b) may satisfy the
7requirement under par. (a) even if the test is provided at the location of the
8applicant's employer, any subsidiary or affiliate of the applicant's employer, or any
9entity with which the applicant holds an exclusive arrangement to conduct the
10business of a mortgage loan originator.
SB62,282,1311
(d) An individual may retake a test 3 consecutive times, with each test retaken
12no less than 30 days after the preceding test. If the individual fails 3 consecutive
13tests, the individual may not retake a test again for at least 6 months.
SB62,282,1814
(e) If an individual previously licensed as a mortgage loan originator fails to
15maintain a valid license for a period of 5 years or longer, the individual shall retake
16the test under par. (a). For purposes of determining the 5-year period, the division
17shall not consider any period during which the individual is exempt from licensing
18under s. 224.726 (1).
SB62, s. 672
19Section
672. 224.76 of the statutes is amended to read:
SB62,283,5
20224.76 Mortgage banker, mortgage loan originator, and mortgage
21broker trust accounts. A mortgage banker,
mortgage loan originator
, or mortgage
22broker shall deposit in one or more trust accounts all funds other than nonrefundable
23fees which it receives on behalf of any person, pending disbursement of the funds in
24accordance with instructions from the person on whose behalf the funds are
25deposited. A mortgage banker or mortgage broker shall maintain trust accounts in
1a
bank, savings bank, savings and loan association or credit union which is
2authorized to do business in this state or whose accounts are insured by the Federal
3Deposit Insurance Corporation or the National Credit Union Administration 4depository institution. The mortgage banker or mortgage broker shall notify the
5division of the location of its trust accounts.
SB62, s. 673
6Section
673. 224.77 (title) of the statutes is amended to read:
SB62,283,8
7224.77 (title)
Discipline
Prohibited acts and practices, and discipline,
8of mortgage bankers, mortgage loan originators
, and mortgage brokers.
SB62, s. 674
9Section
674. 224.77 (1) (intro.) of the statutes is amended to read:
SB62,283,1610
224.77
(1) Prohibited conduct acts and practices. (intro.)
The division may
11deny an application submitted to it under s. 224.72, or may revoke, suspend or limit
12the certificate of registration of a mortgage banker, loan originator or mortgage
13broker, or may reprimand a mortgage banker, loan originator or mortgage broker, if
14it finds that the No mortgage banker,
mortgage loan originator
, or mortgage broker
15did, and no member, officer, director, principal, partner, trustee, or other agent of a
16mortgage banker or mortgage broker, may do any of the following:
SB62, s. 675
17Section
675. 224.77 (1) (a) of the statutes is amended to read:
SB62,283,2218
224.77
(1) (a)
Made Make a material misstatement
, or knowingly omit a
19material fact, in
an a license application
for registration, or in
other information
or
20reports furnished to the division
, to the nationwide mortgage licensing system and
21registry, or to any other governmental agency, including failing to disclose a criminal
22conviction or any disciplinary action taken by a state or federal regulatory agency.
SB62, s. 676
23Section
676. 224.77 (1) (b) of the statutes is repealed and recreated to read:
SB62,284,224
224.77
(1) (b) Make, in any manner, any materially false or deceptive
25statement or representation, including engaging in bait and switch advertising or
1falsely representing residential mortgage loan rates, points, or other financing terms
2or conditions.
SB62, s. 677
3Section
677. 224.77 (1) (c) and (d) of the statutes are amended to read: