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:
SB62,281,2424 a. Ethics.
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:
SB62,284,64 224.77 (1) (c) Made Make a false, deceptive, or misleading promise relating to
5the services being offered or
that influences, persuades, or induces a client to act to
6his or her injury or damage detriment.
SB62,284,87 (d) Pursued Pursue a continued and flagrant course of misrepresentation, or
8made make false promises, whether directly or through agents or advertising.
SB62, s. 678 9Section 678. 224.77 (1) (e) and (f) of the statutes are amended to read:
SB62,284,1210 224.77 (1) (e) Acted Act for more than one party in a transaction without the
11knowledge and consent of all parties on whose behalf the mortgage banker, mortgage
12loan originator, or mortgage broker is acting.
SB62,284,1713 (f) Accepted Accept a commission, money, or other thing of value for performing
14an act as a mortgage loan originator unless the payment is from a mortgage banker
15or mortgage broker who is registered under s. 224.72 (3) as employing the loan
16originator
with whom the mortgage loan originator's license is associated, as
17identified in the records of the division at the time the act is performed
.
SB62, s. 679 18Section 679. 224.77 (1) (fg) of the statutes is created to read:
SB62,284,2319 224.77 (1) (fg) As a mortgage banker or mortgage broker, pay a commission,
20money, or other thing of value to any person for performing an act as a mortgage loan
21originator unless the mortgage loan originator's license is associated with the
22mortgage banker or mortgage broker in the records of the division at the time the act
23is performed.
SB62, s. 680 24Section 680. 224.77 (1) (g) of the statutes is amended to read:
SB62,285,6
1224.77 (1) (g) As a mortgage loan originator, represented or attempted
2represent or attempt to represent a mortgage banker or mortgage broker other than
3the mortgage banker who is registered under s. 224.72 (3) as employing the loan
4originator
or mortgage broker with whom the mortgage loan originator's license was
5associated, as identified in the records of the division at the time the representation
6or attempted representation occurs
.
SB62, s. 681 7Section 681. 224.77 (1) (gd), (gh) and (gp) of the statutes are created to read:
SB62,285,108 224.77 (1) (gd) As a mortgage banker or mortgage broker, permit a person who
9is not licensed under this subchapter to act as a mortgage loan originator on behalf
10of the mortgage banker or mortgage broker.
SB62,285,1411 (gh) As a mortgage banker or mortgage broker, permit a person whose
12mortgage loan originator license is not associated in the records of the division with
13the mortgage banker or mortgage broker to act as a mortgage loan originator on
14behalf of the mortgage banker or mortgage broker.
SB62,285,1615 (gp) As a mortgage banker or mortgage broker, conduct business at or from a
16principal office or branch office that is not licensed under this subchapter.
SB62, s. 682 17Section 682. 224.77 (1) (h) to (L) of the statutes are amended to read:
SB62,285,2018 224.77 (1) (h) Failed Fail, within a reasonable time, to account for or remit any
19moneys coming into the mortgage banker's, mortgage loan originator's, or mortgage
20broker's possession which that belong to another person.
SB62,285,2321 (i) Demonstrated Demonstrate a lack of competency to act as a mortgage
22banker, mortgage loan originator, or mortgage broker in a way which that safeguards
23the interests of the public.
SB62,285,2524 (j) Paid or offered Pay or offer to pay a commission, money, or other thing of
25value to any person for acts or services in violation of this subchapter.
SB62,286,3
1(k) Violated Violate any provision of this subchapter, ch. 138, or any federal or
2state statute, rule, or regulation which that relates to practice as a mortgage banker,
3mortgage loan originator, or mortgage broker.
SB62,286,64 (L) Engaged Engage in conduct which that violates a standard of professional
5behavior which, through professional experience, has become established for
6mortgage bankers, mortgage loan originators, or mortgage brokers.
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