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676. 224.77 (1) (b) of the statutes is repealed and recreated to read: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.
SB62, s. 683
7Section
683. 224.77 (1) (m) of the statutes is amended to read:
SB62,286,108
224.77
(1) (m)
Engaged Engage in conduct, whether of the same or a different
9character than specified elsewhere in this section,
which that constitutes improper,
10fraudulent
, or dishonest dealing.
SB62, s. 684
11Section
684. 224.77 (1) (o) of the statutes is amended to read:
SB62,286,1712
224.77
(1) (o) In the course of practice as a mortgage banker,
mortgage loan
13originator
, or mortgage broker, except in relation to housing designed to meet the
14needs of elderly individuals,
treated treat a person unequally solely because of sex,
15race, color, handicap, sexual orientation, as defined in s. 111.32 (13m), religion,
16national origin, age
, or ancestry, the person's lawful source of income, or the sex or
17marital status of the person maintaining a household.
SB62, s. 685
18Section
685. 224.77 (1) (p) of the statutes is amended to read:
SB62,286,2019
224.77
(1) (p) Intentionally
encouraged or discouraged encourage or discourage 20any person from purchasing or renting real estate on the basis of race.
SB62, s. 686
21Section
686. 224.77 (1) (q) of the statutes is amended to read:
SB62,286,2422
224.77
(1) (q) Because of the age or location of the property or the race of the
23residential mortgage loan applicant, rather than because of the credit worthiness of
24the applicant and the condition of the property securing the loan:
SB62,287,3
11.
Refused Refuse to negotiate, to offer
, or to attempt to negotiate a
land
2contract, residential mortgage loan or commitment for a
residential mortgage loan,
3or
refused refuse to find a
residential mortgage loan.
SB62,287,54
2.
Found a Find a residential mortgage loan or
negotiated a negotiate a
5residential mortgage loan on terms less favorable than are usually offered.
SB62, s. 687
6Section
687. 224.77 (1) (r) of the statutes is repealed.
SB62, s. 688
7Section
688. 224.77 (1) (s), (t), (tm), (u), (um), (v), (w), (x) and (y) of the statutes
8are created to read:
SB62,287,99
224.77
(1) (s) Violate, or fail to comply with, any lawful order of the division.
SB62,287,1210
(t) Impede an investigation or examination of the division or deny the division
11access to any books, records, or other information which the division is authorized
12to obtain under s. 224.74 (2), 224.75 (6), or any other provision of this subchapter.
SB62,287,1613
(tm) Make a material misstatement, or knowingly omit a material fact, or
14knowingly mutilate, destroy, or secrete any books, records, or other information
15requested by the division, in connection with any investigation or examination
16conducted by the division or another governmental agency.
SB62,287,2017
(u) Solicit or enter into a contract with a borrower that provides in substance
18that the mortgage banker, mortgage broker, or mortgage loan originator may earn
19a fee or commission through "best efforts" to obtain a residential mortgage loan even
20though no residential mortgage loan is actually obtained for the borrower.
SB62,287,2321
(um) Solicit, advertise, or enter into a contract for specific interest rates, points,
22or other financing terms unless the terms are actually available at the time of
23soliciting, advertising, or contracting.
SB62,287,2524
(v) Assist, aid, or abet any person in unlawfully conducting business under this
25subchapter without a valid license.
SB62,288,2
1(w) Fail to make disclosures required under this subchapter or required under
2any other applicable state or federal law, rule, or regulation.
SB62,288,83
(x) Withhold any payment or make any payment, threat, or promise, directly
4or indirectly, to any person for the purpose of influencing the independent judgment
5of the person in connection with a residential mortgage loan, or withhold any
6payment or make any payment, threat, or promise, directly or indirectly, to any
7appraiser of a property for the purpose of influencing the independent judgment of
8the appraiser with respect to the value of the property.
SB62,288,119
(y) Cause or require a borrower to obtain property insurance coverage in an
10amount exceeding the replacement cost of improvements on the property, as
11determined by the property insurer.
SB62, s. 689
12Section
689. 224.77 (1m) (a) of the statutes is amended to read:
SB62,288,1613
224.77
(1m) (a) The division may assess against
a person who is registered
14under this chapter any person who violates this subchapter a forfeiture of not more
15than
$2,000 $25,000 for each violation
enumerated under sub. (1) (a) to (o) or (r) and
16may further order restitution to any person suffering loss as a result of the violation.
SB62, s. 690
17Section
690. 224.77 (1m) (b) of the statutes is amended to read:
SB62,289,618
224.77
(1m) (b) A person may contest an assessment of forfeiture
, or a
19restitution order, under par. (a) by sending, within 10 days after receipt of notice of
20the assessment
or order under par. (a), a written request for hearing under s. 227.44
21to the division of hearings and appeals created under s. 15.103 (1). The
22administrator of the division of hearings and appeals may designate a hearing
23examiner to preside over the case and recommend a decision to the administrator
24under s. 227.46. The decision of the administrator of the division of hearings and
25appeals shall be the final administrative decision. The division of hearings and
1appeals shall commence the hearing within 30 days after receipt of the request for
2hearing and shall issue a final decision within 15 days after the close of the hearing.
3Proceedings before the division of hearings and appeals are governed by ch. 227. In
4any petition for judicial review of a decision by the division of hearings and appeals,
5the party, other than the petitioner, who was in the proceeding before the division of
6hearings and appeals shall be the named respondent.
SB62, s. 691
7Section
691. 224.77 (1m) (c) of the statutes is renumbered 224.77 (1m) (c) 1.
SB62, s. 692
8Section
692. 224.77 (1m) (c) 2. of the statutes is created to read:
SB62,289,129
224.77
(1m) (c) 2. All amounts ordered as restitution shall be paid to the person
10suffering loss within 10 days after receipt of notice of the order or, if the restitution
11order is contested under par. (b), within 10 days after receipt of the final decision
12after exhaustion of administrative review.
SB62, s. 693
13Section
693. 224.77 (1m) (d) of the statutes is amended to read:
SB62,289,1914
224.77
(1m) (d) The attorney general may bring an action in the name of the
15state to collect any forfeiture imposed
, or amount ordered as restitution, under this
16subsection if the forfeiture
or restitution amount has not been paid following the
17exhaustion of all administrative and judicial reviews. The only issue to be contested
18in any such action shall be whether the forfeiture
or restitution amount has been
19paid.
SB62, s. 694
20Section
694. 224.77 (2) (title) of the statutes is repealed.
SB62, s. 695
21Section
695. 224.77 (2) of the statutes is renumbered 224.77 (2m) (a) 2. and
22amended to read:
SB62,290,623
224.77
(2m) (a) 2. The division may
revoke, suspend or limit a certificate of
24registration issued under this subchapter or reprimand take any action specified in
25subd. 1. against a mortgage banker or mortgage broker
registered under this
1subchapter, if based upon any act or omission described in subd. 1. of a director,
2officer, trustee, partner
, or member of the mortgage banker or mortgage broker or a
3person who has a financial interest in or is in any way connected with the operation
4of the mortgage banker's or mortgage broker's business
is guilty of an act or omission
5which would be cause for refusing to issue a certificate of registration to that
6individual.
SB62, s. 696
7Section
696. 224.77 (2m) of the statutes is created to read:
SB62,290,128
224.77
(2m) Division action on license. (a) 1. In addition to any other
9authority provided to the division under this subchapter, if the division finds that a
10mortgage banker, mortgage loan originator, or mortgage broker has violated any
11provision of this subchapter or any rule promulgated by the division under this
12subchapter, the division may do any of the following:
SB62,290,1313
a. Deny any application for initial issuance or renewal of a license.
SB62,290,1514
b. Revoke, suspend, limit, or condition any license of the mortgage banker,
15mortgage loan originator, or mortgage broker.
SB62,290,1716
c. Reprimand the mortgage banker, mortgage loan originator, or mortgage
17broker.
SB62,290,2418
(b) In addition to any other authority provided to the division under this
19subchapter, if the division finds that an applicant for initial issuance or renewal of
20a license under this subchapter made any material misstatement in the application
21or withheld material information, or that the applicant no longer satisfies the
22requirements under s. 224.72 or 224.725 for issuance or renewal of the license, the
23division may deny the application or, if the license has already been issued, suspend
24or revoke the license.
SB62, s. 697
1Section
697. 224.77 (3) (a) and (b) of the statutes are consolidated,
2renumbered 224.77 (3) (a) (intro.) and amended to read:
SB62,291,103
224.77
(3) (a)
Orders to prevent or correct actions. (intro.) The division may
4issue general and special orders
necessary, including temporary orders that become
5immediately effective, to prevent or correct actions by a mortgage banker,
mortgage 6loan originator
, or mortgage broker that constitute
cause under this section for
7revoking, suspending or limiting a certificate of registration. (b)
Types of special
8orders. Special a violation of any provision of this subchapter or of any rule
9promulgated under this subchapter, including special orders
may direct that do any
10of the following:
SB62,291,14
111. Direct a mortgage banker,
mortgage loan originator
, or mortgage broker to
12cease and desist from engaging in a particular activity
or may direct the, from
13conducting business, or from otherwise violating any provision of this subchapter or
14any rule promulgated under this subchapter.
SB62,291,20
152. Direct a mortgage banker,
mortgage loan originator
, or mortgage broker to
16refund or remit to a
residential mortgage loan applicant or borrower amounts that
17the mortgage banker,
mortgage loan originator
, or mortgage broker got from actions
18which that constitute
cause under this section for revoking, suspending or limiting
19a certificate of registration a violation of any provision of this subchapter or of any
20rule promulgated under this subchapter.
SB62, s. 698
21Section
698. 224.77 (3) (a) 3. and 4. of the statutes are created to read:
SB62,292,222
224.77
(3) (a) 3. Direct a mortgage banker, mortgage loan originator, or
23mortgage broker to cease business under a license issued under this subchapter if
24the division determines that the license was erroneously issued or the licensee is
1currently in violation of any provision of this subchapter or of any rule promulgated
2under this subchapter.
SB62,292,53
4. Direct a mortgage banker, mortgage loan originator, or mortgage broker to
4undertake any affirmative action, consistent with the provisions of this subchapter,
5that the division deems necessary.
SB62, s. 699
6Section
699. 224.77 (3m) of the statutes is amended to read:
SB62,292,127
224.77
(3m) Hearing rights for registration license denial, revocation, or
8suspension. A person whose
certificate of registration license has been denied,
9revoked
or, suspended
, limited, or conditioned under this section may request a
10hearing under s. 227.44 within 30 days after the date of denial, revocation
or, 11suspension
, limitation, or conditioning of the
certificate of registration license. The
12division may appoint a hearing examiner under s. 227.46 to conduct the hearing.
SB62, s. 700
13Section
700. 224.77 (4) of the statutes is amended to read:
SB62,292,1714
224.77
(4) Period of disciplinary action;
license ineligibility for
15registration. (a)
Period. Except as provided in par. (b), the division shall determine
16in each case the period that a revocation, suspension
or
, limitation
, or condition of
17a
certificate of registration license is effective.
SB62,292,2118
(b)
Ineligibility. 1. Except as provided in subd. 2., if the division denies or
19revokes a
certificate of registration license under sub.
(1) (2m) (a), the person is not
20eligible for a
certificate of registration license until the expiration of a period
21determined in each case by the division.
SB62,292,2422
2. If the division revokes a
certificate of registration license under sub. (1) (p)
23or (q), the person is not eligible for a
certificate of registration license until 5 years
24after the effective date of the revocation.
SB62, s. 701
25Section
701. 224.77 (5) (a) of the statutes is amended to read:
SB62,293,3
1224.77
(5) (a)
Mandatory revocation or suspension. Notwithstanding
sub. (1)
2(intro.) subs. (2m) (a) and (4), if the division finds that a mortgage banker,
mortgage 3loan originator
, or mortgage broker has violated sub. (1) (p) or (q), the division shall:
SB62,293,54
1. For the first offense, suspend the
registration
license of the mortgage banker,
5mortgage loan originator
, or mortgage broker for not less than 90 days.
SB62,293,76
2. For the 2nd offense, revoke the
registration
license of the mortgage banker,
7mortgage loan originator
, or mortgage broker.
SB62, s. 702
8Section
702. 224.77 (6) (title) of the statutes is repealed.
SB62, s. 703
9Section
703. 224.77 (6) of the statutes is renumbered 224.77 (2m) (c) and
10amended to read:
SB62,293,2311
224.77
(2m) (c) The
department division shall restrict or suspend the
12registration license of a mortgage banker,
mortgage loan originator
, or mortgage
13broker if the
registrant licensee is an individual who fails to comply, after
14appropriate notice, with a subpoena or warrant issued by the department of children
15and families or a county child support agency under s. 59.53 (5) and related to
16paternity or child support proceedings or who is delinquent in making court-ordered
17payments of child or family support, maintenance, birth expenses, medical expenses
, 18or other expenses related to the support of a child or former spouse, as provided in
19a memorandum of understanding entered into under s. 49.857.
A registrant An
20individual whose
registration license is restricted or suspended under this
21subsection is entitled to a notice and hearing only as provided in a memorandum of
22understanding entered into under s. 49.857 and is not entitled to any other notice or
23hearing under this section.
SB62, s. 704
24Section
704. 224.77 (7) (title) of the statutes is repealed.
SB62, s. 705
1Section
705. 224.77 (7) of the statutes is renumbered 224.77 (2m) (d) and
2amended to read:
SB62,294,93
224.77
(2m) (d) The
department division shall revoke the
certificate of
4registration license of a mortgage banker,
mortgage loan originator
, or mortgage
5broker if the department of revenue certifies under s. 73.0301 that the
registrant 6licensee is liable for delinquent taxes. A
registrant licensee whose
certificate of
7registration license is revoked under this subsection for delinquent taxes is entitled
8to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is
9not entitled to any other notice, hearing or review under this section.
SB62, s. 706
10Section
706. 224.77 (8) of the statutes is amended to read:
SB62,294,1711
224.77
(8) Voluntary surrender. A mortgage banker,
mortgage loan
12originator
, or mortgage broker may voluntarily surrender a
registration license to
13the division, but the division may refuse to accept the surrender if the division has
14an open investigation or examination or received allegations of unprofessional
15conduct against the mortgage banker,
mortgage loan originator
, or mortgage broker.
16The division may negotiate stipulations in consideration for accepting the surrender
17of
registration the license.
SB62, s. 707
18Section
707. 224.77 (9) of the statutes is created to read:
SB62,294,2319
224.77
(9) Reporting violations. The division shall report regularly violations
20of this subchapter or of rules promulgated under this subchapter, as well as
21enforcement actions and other relevant information, to the nationwide mortgage
22licensing system and registry. Except as provided in s. 224.728 (4) (b) and (c), these
23reports shall be confidential.