SB62: Bill Text

SB62,285,6 224.77 (1) (g) As a mortgage loan originator, represented or attempted represent or attempt to represent a mortgage banker or mortgage broker other than the mortgage banker who is registered under s. 224.72 (3) as employing the loan originator or mortgage broker with whom the mortgage loan originator's license was associated, as identified in the records of the division at the time the representation or attempted representation occurs.

SB62, s. 681 Section 681. 224.77 (1) (gd), (gh) and (gp) of the statutes are created to read:

SB62,285,10 224.77 (1) (gd) As a mortgage banker or mortgage broker, permit a person who is not licensed under this subchapter to act as a mortgage loan originator on behalf of the mortgage banker or mortgage broker.

SB62,285,14 (gh) As a mortgage banker or mortgage broker, permit a person whose mortgage loan originator license is not associated in the records of the division with the mortgage banker or mortgage broker to act as a mortgage loan originator on behalf of the mortgage banker or mortgage broker.

SB62,285,16 (gp) As a mortgage banker or mortgage broker, conduct business at or from a principal office or branch office that is not licensed under this subchapter.

SB62, s. 682 Section 682. 224.77 (1) (h) to (L) of the statutes are amended to read:

SB62,285,20 224.77 (1) (h) Failed Fail, within a reasonable time, to account for or remit any moneys coming into the mortgage banker's, mortgage loan originator's, or mortgage broker's possession which that belong to another person.

SB62,285,23 (i) Demonstrated Demonstrate a lack of competency to act as a mortgage banker, mortgage loan originator, or mortgage broker in a way which that safeguards the interests of the public.

SB62,285,25 (j) Paid or offered Pay or offer to pay a commission, money, or other thing of value to any person for acts or services in violation of this subchapter.

SB62,286,3 (k) Violated Violate any provision of this subchapter, ch. 138, or any federal or state statute, rule, or regulation which that relates to practice as a mortgage banker, mortgage loan originator, or mortgage broker.

SB62,286,6 (L) Engaged Engage in conduct which that violates a standard of professional behavior which, through professional experience, has become established for mortgage bankers, mortgage loan originators, or mortgage brokers.

SB62, s. 683 Section 683. 224.77 (1) (m) of the statutes is amended to read:

SB62,286,10 224.77 (1) (m) Engaged Engage in conduct, whether of the same or a different character than specified elsewhere in this section, which that constitutes improper, fraudulent, or dishonest dealing.

SB62, s. 684 Section 684. 224.77 (1) (o) of the statutes is amended to read:

SB62,286,17 224.77 (1) (o) In the course of practice as a mortgage banker, mortgage loan originator, or mortgage broker, except in relation to housing designed to meet the needs of elderly individuals, treated treat a person unequally solely because of sex, race, color, handicap, sexual orientation, as defined in s. 111.32 (13m), religion, national origin, age, or ancestry, the person's lawful source of income, or the sex or marital status of the person maintaining a household.

SB62, s. 685 Section 685. 224.77 (1) (p) of the statutes is amended to read:

SB62,286,20 224.77 (1) (p) Intentionally encouraged or discouraged encourage or discourage any person from purchasing or renting real estate on the basis of race.

SB62, s. 686 Section 686. 224.77 (1) (q) of the statutes is amended to read:

SB62,286,24 224.77 (1) (q) Because of the age or location of the property or the race of the residential mortgage loan applicant, rather than because of the credit worthiness of the applicant and the condition of the property securing the loan:

SB62,287,3 1. Refused Refuse to negotiate, to offer, or to attempt to negotiate a land contract, residential mortgage loan or commitment for a residential mortgage loan, or refused refuse to find a residential mortgage loan.

SB62,287,5 2. Found a Find a residential mortgage loan or negotiated a negotiate a residential mortgage loan on terms less favorable than are usually offered.

SB62, s. 687 Section 687. 224.77 (1) (r) of the statutes is repealed.

SB62, s. 688 Section 688. 224.77 (1) (s), (t), (tm), (u), (um), (v), (w), (x) and (y) of the statutes are created to read:

SB62,287,9 224.77 (1) (s) Violate, or fail to comply with, any lawful order of the division.

SB62,287,12 (t) Impede an investigation or examination of the division or deny the division access to any books, records, or other information which the division is authorized to obtain under s. 224.74 (2), 224.75 (6), or any other provision of this subchapter.

SB62,287,16 (tm) Make a material misstatement, or knowingly omit a material fact, or knowingly mutilate, destroy, or secrete any books, records, or other information requested by the division, in connection with any investigation or examination conducted by the division or another governmental agency.

SB62,287,20 (u) Solicit or enter into a contract with a borrower that provides in substance that the mortgage banker, mortgage broker, or mortgage loan originator may earn a fee or commission through "best efforts" to obtain a residential mortgage loan even though no residential mortgage loan is actually obtained for the borrower.

SB62,287,23 (um) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contracting.

SB62,287,25 (v) Assist, aid, or abet any person in unlawfully conducting business under this subchapter without a valid license.

SB62,288,2 (w) Fail to make disclosures required under this subchapter or required under any other applicable state or federal law, rule, or regulation.

SB62,288,8 (x) Withhold any payment or make any payment, threat, or promise, directly or indirectly, to any person for the purpose of influencing the independent judgment of the person in connection with a residential mortgage loan, or withhold any payment or make any payment, threat, or promise, directly or indirectly, to any appraiser of a property for the purpose of influencing the independent judgment of the appraiser with respect to the value of the property.

SB62,288,11 (y) Cause or require a borrower to obtain property insurance coverage in an amount exceeding the replacement cost of improvements on the property, as determined by the property insurer.

SB62, s. 689 Section 689. 224.77 (1m) (a) of the statutes is amended to read:

SB62,288,16 224.77 (1m) (a) The division may assess against a person who is registered under this chapter any person who violates this subchapter a forfeiture of not more than $2,000 $25,000 for each violation enumerated under sub. (1) (a) to (o) or (r) and may further order restitution to any person suffering loss as a result of the violation.

SB62, s. 690 Section 690. 224.77 (1m) (b) of the statutes is amended to read:

SB62,289,6 224.77 (1m) (b) A person may contest an assessment of forfeiture, or a restitution order, under par. (a) by sending, within 10 days after receipt of notice of the assessment or order under par. (a), a written request for hearing under s. 227.44 to the division of hearings and appeals created under s. 15.103 (1). The administrator of the division of hearings and appeals may designate a hearing examiner to preside over the case and recommend a decision to the administrator under s. 227.46. The decision of the administrator of the division of hearings and appeals shall be the final administrative decision. The division of hearings and appeals shall commence the hearing within 30 days after receipt of the request for hearing and shall issue a final decision within 15 days after the close of the hearing. Proceedings before the division of hearings and appeals are governed by ch. 227. In any petition for judicial review of a decision by the division of hearings and appeals, the party, other than the petitioner, who was in the proceeding before the division of hearings and appeals shall be the named respondent.

SB62, s. 691 Section 691. 224.77 (1m) (c) of the statutes is renumbered 224.77 (1m) (c) 1.

SB62, s. 692 Section 692. 224.77 (1m) (c) 2. of the statutes is created to read:

SB62,289,12 224.77 (1m) (c) 2. All amounts ordered as restitution shall be paid to the person suffering loss within 10 days after receipt of notice of the order or, if the restitution order is contested under par. (b), within 10 days after receipt of the final decision after exhaustion of administrative review.

SB62, s. 693 Section 693. 224.77 (1m) (d) of the statutes is amended to read:

SB62,289,19 224.77 (1m) (d) The attorney general may bring an action in the name of the state to collect any forfeiture imposed, or amount ordered as restitution, under this subsection if the forfeiture or restitution amount has not been paid following the exhaustion of all administrative and judicial reviews. The only issue to be contested in any such action shall be whether the forfeiture or restitution amount has been paid.

SB62, s. 694 Section 694. 224.77 (2) (title) of the statutes is repealed.

SB62, s. 695 Section 695. 224.77 (2) of the statutes is renumbered 224.77 (2m) (a) 2. and amended to read:

SB62,290,6 224.77 (2m) (a) 2. The division may revoke, suspend or limit a certificate of registration issued under this subchapter or reprimand take any action specified in subd. 1. against a mortgage banker or mortgage broker registered under this subchapter, if based upon any act or omission described in subd. 1. of a director, officer, trustee, partner, or member of the mortgage banker or mortgage broker or a person who has a financial interest in or is in any way connected with the operation of the mortgage banker's or mortgage broker's business is guilty of an act or omission which would be cause for refusing to issue a certificate of registration to that individual.

SB62, s. 696 Section 696. 224.77 (2m) of the statutes is created to read:

SB62,290,12 224.77 (2m) Division action on license. (a) 1. In addition to any other authority provided to the division under this subchapter, if the division finds that a mortgage banker, mortgage loan originator, or mortgage broker has violated any provision of this subchapter or any rule promulgated by the division under this subchapter, the division may do any of the following:

SB62,290,13 a. Deny any application for initial issuance or renewal of a license.

SB62,290,15 b. Revoke, suspend, limit, or condition any license of the mortgage banker, mortgage loan originator, or mortgage broker.

SB62,290,17 c. Reprimand the mortgage banker, mortgage loan originator, or mortgage broker.

SB62,290,24 (b) In addition to any other authority provided to the division under this subchapter, if the division finds that an applicant for initial issuance or renewal of a license under this subchapter made any material misstatement in the application or withheld material information, or that the applicant no longer satisfies the requirements under s. 224.72 or 224.725 for issuance or renewal of the license, the division may deny the application or, if the license has already been issued, suspend or revoke the license.

SB62, s. 697 Section 697. 224.77 (3) (a) and (b) of the statutes are consolidated, renumbered 224.77 (3) (a) (intro.) and amended to read:

SB62,291,10 224.77 (3) (a) Orders to prevent or correct actions. (intro.) The division may issue general and special orders necessary, including temporary orders that become immediately effective, to prevent or correct actions by a mortgage banker, mortgage loan originator, or mortgage broker that constitute cause under this section for revoking, suspending or limiting a certificate of registration. (b) Types of special orders. Special a violation of any provision of this subchapter or of any rule promulgated under this subchapter, including special orders may direct that do any of the following:

SB62,291,14 1. Direct a mortgage banker, mortgage loan originator, or mortgage broker to cease and desist from engaging in a particular activity or may direct the, from conducting business, or from otherwise violating any provision of this subchapter or any rule promulgated under this subchapter.

SB62,291,20 2. Direct a mortgage banker, mortgage loan originator, or mortgage broker to refund or remit to a residential mortgage loan applicant or borrower amounts that the mortgage banker, mortgage loan originator, or mortgage broker got from actions which that constitute cause under this section for revoking, suspending or limiting a certificate of registration a violation of any provision of this subchapter or of any rule promulgated under this subchapter.

SB62, s. 698 Section 698. 224.77 (3) (a) 3. and 4. of the statutes are created to read:

SB62,292,2 224.77 (3) (a) 3. Direct a mortgage banker, mortgage loan originator, or mortgage broker to cease business under a license issued under this subchapter if the division determines that the license was erroneously issued or the licensee is currently in violation of any provision of this subchapter or of any rule promulgated under this subchapter.

SB62,292,5 4. Direct a mortgage banker, mortgage loan originator, or mortgage broker to undertake any affirmative action, consistent with the provisions of this subchapter, that the division deems necessary.

SB62, s. 699 Section 699. 224.77 (3m) of the statutes is amended to read:

SB62,292,12 224.77 (3m) Hearing rights for registration license denial, revocation, or suspension. A person whose certificate of registration license has been denied, revoked or, suspended, limited, or conditioned under this section may request a hearing under s. 227.44 within 30 days after the date of denial, revocation or, suspension, limitation, or conditioning of the certificate of registration license. The division may appoint a hearing examiner under s. 227.46 to conduct the hearing.

SB62, s. 700 Section 700. 224.77 (4) of the statutes is amended to read:

SB62,292,17 224.77 (4) Period of disciplinary action; license ineligibility for registration. (a) Period. Except as provided in par. (b), the division shall determine in each case the period that a revocation, suspension or , limitation, or condition of a certificate of registration license is effective.

SB62,292,21 (b) Ineligibility. 1. Except as provided in subd. 2., if the division denies or revokes a certificate of registration license under sub. (1) (2m) (a), the person is not eligible for a certificate of registration license until the expiration of a period determined in each case by the division.

SB62,292,24 2. If the division revokes a certificate of registration license under sub. (1) (p) or (q), the person is not eligible for a certificate of registration license until 5 years after the effective date of the revocation.

SB62, s. 701 Section 701. 224.77 (5) (a) of the statutes is amended to read:

SB62,293,3 224.77 (5) (a) Mandatory revocation or suspension. Notwithstanding sub. (1) (intro.) subs. (2m) (a) and (4), if the division finds that a mortgage banker, mortgage loan originator, or mortgage broker has violated sub. (1) (p) or (q), the division shall:

SB62,293,5 1. For the first offense, suspend the registration license of the mortgage banker, mortgage loan originator, or mortgage broker for not less than 90 days.

SB62,293,7 2. For the 2nd offense, revoke the registration license of the mortgage banker, mortgage loan originator, or mortgage broker.

SB62, s. 702 Section 702. 224.77 (6) (title) of the statutes is repealed.

SB62, s. 703 Section 703. 224.77 (6) of the statutes is renumbered 224.77 (2m) (c) and amended to read:

SB62,293,23 224.77 (2m) (c) The department division shall restrict or suspend the registration license of a mortgage banker, mortgage loan originator, or mortgage broker if the registrant licensee is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses, or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857. A registrant An individual whose registration license is restricted or suspended under this subsection is entitled to a notice and hearing only as provided in a memorandum of understanding entered into under s. 49.857 and is not entitled to any other notice or hearing under this section.

SB62, s. 704 Section 704. 224.77 (7) (title) of the statutes is repealed.

SB62, s. 705 Section 705. 224.77 (7) of the statutes is renumbered 224.77 (2m) (d) and amended to read:

SB62,294,9 224.77 (2m) (d) The department division shall revoke the certificate of registration license of a mortgage banker, mortgage loan originator, or mortgage broker if the department of revenue certifies under s. 73.0301 that the registrant licensee is liable for delinquent taxes. A registrant licensee whose certificate of registration license is revoked under this subsection for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and a hearing under s. 73.0301 (5) (a) but is not entitled to any other notice, hearing or review under this section.

SB62, s. 706 Section 706. 224.77 (8) of the statutes is amended to read:

SB62,294,17 224.77 (8) Voluntary surrender. A mortgage banker, mortgage loan originator, or mortgage broker may voluntarily surrender a registration license to the division, but the division may refuse to accept the surrender if the division has an open investigation or examination or received allegations of unprofessional conduct against the mortgage banker, mortgage loan originator, or mortgage broker. The division may negotiate stipulations in consideration for accepting the surrender of registration the license.

SB62, s. 707 Section 707. 224.77 (9) of the statutes is created to read:

SB62,294,23 224.77 (9) Reporting violations. The division shall report regularly violations of this subchapter or of rules promulgated under this subchapter, as well as enforcement actions and other relevant information, to the nationwide mortgage licensing system and registry. Except as provided in s. 224.728 (4) (b) and (c), these reports shall be confidential.

SB62, s. 708 Section 708. 224.78 (title) of the statutes is repealed.

SB62, s. 709 Section 709. 224.78 of the statutes is renumbered 224.77 (1) (jm) and amended to read:

SB62,295,6 224.77 (1) (jm) A mortgage banker, loan originator, or mortgage broker may not pay Pay a person who is not registered licensed under this subchapter a commission, money, or other thing of value for performing an act as a mortgage banker, mortgage loan originator, or mortgage broker.

SB62, s. 710 Section 710. 224.79 of the statutes is amended to read:

SB62,295,17 224.79 Consumer mortgage Mortgage brokerage agreements and consumer disclosures. (1) Form and content of consumer mortgage brokerage agreements. Every contract between a mortgage broker and a consumer an individual under which the mortgage broker agrees to provide brokerage services to the consumer individual relating to a residential mortgage loan shall be in writing, in the form prescribed by rule of the division, and shall contain all information required by rule of the division. The division shall promulgate rules to administer this subsection in consultation with the mortgage loan originator council under s. 15.187 (1). The division shall design these rules to facilitate the comparison of similar charges and total charges assessed by different mortgage brokers.

SB62,296,6 (2) Consumer disclosure Disclosure statement. Before entering into a contract with a consumer an individual to provide brokerage services relating to a residential mortgage loan, a mortgage broker shall give the consumer individual a copy of a consumer disclosure statement, explain the content of the statement, and ensure that the consumer individual initials or signs the statement, acknowledging that the consumer individual has read and understands the statement. The consumer disclosure statement shall contain a brief explanation of the relationship between the consumer individual and the mortgage broker under the proposed contract, a brief explanation of the manner in which the mortgage broker may be compensated under the proposed contract, and any additional information required by rule of the division. The division shall promulgate rules to administer this subsection in consultation with the mortgage loan originator council under s. 15.187 (1) and, by rule, shall specify the form and content of the consumer disclosure statement required under this subsection.

SB62, s. 711 Section 711. 224.80 (1) of the statutes is amended to read:

SB62,296,12 224.80 (1) Penalties. A person who violates s. 224.72 (1m) any provision of this subchapter or any rule promulgated under this subchapter may be fined not more than $2,000 $25,000 or imprisoned for not more than 9 months or both. The district attorney of the county where the violation occurs shall enforce the penalty under this subsection on behalf of the state.

SB62, s. 712 Section 712. 224.80 (2) (intro.) of the statutes is amended to read:

SB62,296,18 224.80 (2) Private cause of action. (intro.) A person who is aggrieved by an act which is committed by a mortgage banker, mortgage loan originator, or mortgage broker and which is described in s. 224.77 (1) in violation of any provision of this subchapter or of any rule promulgated under this subchapter may recover all of the following in a private action:

SB62, s. 713 Section 713. 224.80 (2) (a) 1. of the statutes is amended to read:

SB62,296,22 224.80 (2) (a) 1. Twice the amount of the cost of loan origination connected with the transaction, except that the liability under this subdivision may not be less than $100 nor greater than $2,000 $25,000 for each violation.