224.728 History
History: 2009 a. 2.
224.73
224.73
Relationship between mortgage loan originator and either a mortgage banker or a mortgage broker. 224.73(1)(1)
Responsibility for mortgage loan originator. A mortgage banker or mortgage broker is responsible for, and shall supervise the acts of, a mortgage loan originator or any other person who otherwise acts on behalf of the mortgage banker or mortgage broker.
224.73(2)
(2) Restriction on mortgage loan originator. 224.73(2)(a)(a) If the division suspends or revokes a mortgage banker's or mortgage broker's license, a mortgage loan originator may not act on behalf of that mortgage banker or mortgage broker during the period of suspension or revocation.
224.73(2)(b)
(b) A mortgage loan originator may act on behalf of only the mortgage banker or mortgage broker with which that mortgage loan originator's license is associated in the records of the division, as designated under
s. 224.725 (2) (d). A mortgage loan originator's license may only be associated with one mortgage banker or mortgage broker at a time.
224.73(3)
(3) Transfer by mortgage loan originator. 224.73(3)(a)(a) A licensed mortgage loan originator may apply, on forms and in the manner prescribed by the division, to transfer association to another licensed mortgage banker or mortgage broker. The division shall promulgate rules establishing a fee for a transfer application under this subsection.
224.73(3)(b)
(b) A mortgage loan originator may not act on behalf of a mortgage banker or mortgage broker until the mortgage loan originator's license association has been transferred to that mortgage banker or mortgage broker in the records of the division.
224.73(4)
(4) Mortgage loan originator signatures and unique identifiers. 224.73(4)(a)(a) Every residential mortgage loan application shall be signed by a licensed mortgage loan originator or by a mortgage loan originator exempt from licensing under
s. 224.726 (1).
224.73(4)(b)
(b) Any person originating a residential mortgage loan shall clearly place the person's unique identifier on all residential mortgage loan application forms, solicitations, and advertisements, including business cards or Web sites, and on all other documents specified by rule of the division.
224.73 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.73;
1991 a. 39;
1995 a. 27 s.
6594; Stats. 1995 s. 224.73;
1997 a. 145;
2003 a. 260;
2009 a. 2.
224.73 Cross-reference
Cross-reference: See also ch.
DFI-Bkg 40, Wis. adm. code.
224.74
224.74
Division's review of the operations of a mortgage loan originator, mortgage broker, or mortgage banker. 224.74(1)(a)(a)
Annual call report. Each year, by the date and in the form required by the nationwide mortgage licensing system and registry, each mortgage banker, mortgage broker, and mortgage loan originator licensed under this subchapter shall submit to the nationwide mortgage licensing system and registry an annual report of condition, which shall contain such information as the nationwide mortgage licensing system and registry may require.
224.74(1)(b)
(b)
Audit requirement. Each year, no later than 6 months following the end of its most recently completed fiscal year, each mortgage banker or mortgage broker shall submit a copy of an audit of the mortgage banker's or mortgage broker's operations during that fiscal year. An audit under this paragraph shall be conducted by an independent certified public accountant in accordance with generally accepted auditing standards. The financial statements in the audit report shall be prepared in accordance with generally accepted accounting principles.
224.74(1)(c)
(c)
Audits requested by the division. The division may request that a mortgage banker or mortgage broker obtain an audit of the mortgage banker's or mortgage broker's operations if the division has reason to believe that the mortgage banker or mortgage broker may not have sufficient financial resources to meet its obligations to its clients or investors or to other persons directly affected by the activities conducted by the mortgage banker or mortgage broker under the license issued by the division. If the division requests an audit under this paragraph, the mortgage banker or mortgage broker shall have the audit completed no later than 90 days after the date of the division's request. The mortgage banker or mortgage broker shall submit the audit report to the division no later than 5 days after the date on which the audit is completed. An audit under this paragraph shall be conducted by an independent certified public accountant in accordance with generally accepted auditing standards. The financial statements in the audit report shall be prepared in accordance with generally accepted accounting principles.
224.74(2)(ag)(ag) The division may at any time, on its own motion or upon complaint, conduct inquiries, investigations, and examinations of licensees under this subchapter, or of persons required to be licensed under or otherwise subject to the provisions of this subchapter, including doing any of the following:
224.74(2)(ag)1.
1. Examining, accessing, receiving, or using any books, accounts, records, files, documents, or other information relating to the condition or affairs of a mortgage banker, mortgage loan originator, or mortgage broker.
224.74(2)(ag)2.
2. Interviewing or examining under oath any mortgage banker, mortgage loan originator, or mortgage broker, any of the members, officers, directors, agents, employees, contractors, or customers of the mortgage banker, mortgage loan originator, or mortgage broker, or any other person whose testimony the division deems to be relevant. The division may direct, subpoena, or order the attendance of a person to provide testimony under this subdivision and may direct, subpoena, or order the person to produce books, accounts, records, files, and any other document the division deems relevant to the inquiry, investigation, or examination.
224.74(2)(ag)3.
3. Direct or order any licensee under this subchapter to make or compile reports or other information, in a format directed by the division, that the division considers necessary to carry out any investigation or examination under this subchapter, including any accounting compilation or other loan transaction data, list, or information.
224.74(2)(ag)4.
4. Examine, access, receive, and use any other records, documents, or other information that the division deems relevant to the inquiry, investigation, or examination, regardless of the location, possession, control, or custody of the records, documents, or information, including any of the following:
224.74(2)(ag)4.a.
a. Criminal, civil, and administrative history information, including conviction information and nonconviction information to the extent permitted by law.
224.74(2)(ag)4.b.
b. Personal history and experience information, including credit reports obtained from a consumer reporting agency, as defined in
s. 100.54 (1) (c).
224.74(2)(ar)
(ar) In making any investigation or examination authorized under this subchapter, the division may control access to any documents and records of the licensee or of any other person under investigation or examination. The division may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no person may remove or attempt to remove any of the documents and records except with the consent of the division or by court order. Unless the division has reasonable grounds to believe the documents and records have been or are at risk of being altered or destroyed for purposes of concealing a violation of this subchapter, the licensee or owner or custodian of the documents and records shall have access to the documents and records as necessary to conduct its ordinary business affairs.
224.74(2)(b)
(b) The division shall prepare a report for each investigation or examination conducted under this subsection. These reports, and correspondence regarding these reports, are confidential, except that the division may release these reports and correspondence in connection with a disciplinary proceeding conducted by the division, a liquidation proceeding, or a criminal investigation or proceeding. In addition, any information from these reports or correspondence may be provided to the nationwide mortgage licensing system and registry and is not confidential to the extent specified in
s. 224.728 (4) (b) and
(c).
224.74(2)(c)
(c) The division may require a mortgage banker, mortgage loan originator, or mortgage broker who is investigated or examined under this subsection to pay to the division a reasonable fee for the costs of conducting the investigation or examination. A mortgage banker, mortgage loan originator, or mortgage broker shall pay these costs to the division within 30 days after the division demands payment of these costs.
224.74(3)
(3) Additional division authority. To carry out the purposes of this section, the division may do any of the following:
224.74(3)(a)
(a) Retain attorneys, accountants, and other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of investigations or examinations.
224.74(3)(b)
(b) Enter into agreements or relationships with other government officials or regulatory associations to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, or information obtained under this section.
224.74(3)(c)
(c) Use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine or investigate any licensee or other person subject to investigation or examination.
224.74(3)(d)
(d) Accept and rely on investigation or examination reports made by other government officials, in this state or elsewhere.
224.74(3)(e)
(e) Accept audit reports made by an independent certified public accountant for the licensee or another person relevant to the investigation or examination and incorporate any such audit report into any report of the division.
224.74 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.74;
1991 a. 39;
1995 a. 27 s.
6595; Stats. 1995 s. 224.74;
1997 a. 145;
2009 a. 2.
224.75
224.75
Record-keeping requirements for licensees. 224.75(1)(1)
Required records; loan application or servicing documents. 224.75(1)(a)(a)
Fee record system. A mortgage banker or mortgage broker shall establish and maintain a record system which shows all fees which a mortgage banker or mortgage broker charged a residential mortgage loan applicant or a mortgagor in connection with a residential mortgage loan. The record shall show the application or disposition of those fees.
224.75(1)(b)
(b)
Loan application record system. A mortgage banker or mortgage broker shall establish and maintain a record system containing all of the following information for each residential mortgage loan application:
224.75(1)(b)4.
4. The disposition of the application and the reason for the particular disposition.
224.75(1)(c)
(c)
Loan application documents. A mortgage banker or mortgage broker shall maintain for each residential mortgage loan application all of the following documents, if used by the mortgage banker or mortgage broker in connection with the residential mortgage loan application file:
224.75(1)(c)9.
9. Any other documents, records or forms shown to or signed by a loan applicant.
224.75(1)(d)
(d)
Loan servicing records and documents. A mortgage banker shall maintain for each residential mortgage loan serviced by the mortgage banker a copy of or a record of all of the following:
224.75(1)(d)4.
4. All payments made by the mortgage banker on behalf of the borrower.
224.75(2)
(2) Period of record retention. A mortgage banker or mortgage broker shall keep for at least 36 months, in an office of the mortgage banker or mortgage broker licensed under this subchapter, all books and records that, in the opinion of the division, will enable the division to determine whether the mortgage banker or mortgage broker is in compliance with the provisions of this subchapter. These books and records include copies of all deposit receipts, canceled checks, trust account records, the records which a mortgage banker or mortgage broker maintains under
sub. (1) (c) or
(d), and other relevant documents or correspondence received or prepared by the mortgage banker or mortgage broker in connection with a residential mortgage loan or residential mortgage loan application. The retention period begins on the date the residential mortgage loan is closed or, if the loan is not closed, the date of loan application. If the residential mortgage loan is serviced by a mortgage banker, the retention period commences on the date that the loan is paid in full.
224.75(3)
(3) Contents of credit and appraisal reports. 224.75(3)(a)(a)
Credit report. If a mortgage banker or mortgage broker charges a residential mortgage loan applicant a separate fee for a credit report, the credit report shall consist, at a minimum, of a written statement indicating the name of the credit reporting agency which investigated the credit history of the applicant.
224.75(3)(b)
(b)
Appraisal report. If a mortgage banker or mortgage broker charges a residential mortgage loan applicant a separate fee for an appraisal report, the appraisal report shall consist, at a minimum, of a written statement indicating the appraiser's opinion of the value of the property appraised for residential mortgage loan purposes, the basis for that opinion and the name of the person who conducted the appraisal. If requested by a residential mortgage loan applicant, a mortgage banker or mortgage broker shall provide the loan applicant with a copy of any written appraisal report held by the mortgage banker or mortgage broker, if the loan applicant paid a fee for the report.
224.75(4)
(4) Responsibility for forms. A mortgage banker or mortgage broker is responsible for the preparation and correctness of all entries on forms, documents and records which are under the mortgage banker's or mortgage broker's control and which are not dependent on information provided by the residential mortgage loan applicant or a 3rd party.
224.75(5)
(5) Accounting practices. A mortgage banker or mortgage broker shall maintain its books and records in accordance with generally accepted accounting principles.
224.75(6)
(6) Furnishing books and records. Upon request by the division, any licensee under this subchapter, and any other person whom the division has authority to investigate and examine under
s. 224.74 (2), shall make any books and records requested by the division available for inspection and copying by the division. If any records are kept at a licensed office not located within this state, the mortgage banker or mortgage broker shall, upon request of the division, promptly deliver such documents to any location within this state specified by the division.
224.75 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.75;
1995 a. 27 s.
6596; Stats. 1995 s. 224.75;
1997 a. 145;
2007 a. 211;
2009 a. 2.
224.75 Cross-reference
Cross-reference: See also ch.
DFI-Bkg 42, Wis. adm. code.
224.755
224.755
Education and testing requirements for mortgage loan originators. 224.755(1)
(1)
Education requirements applicable prior to license issuance. Subject to
sub. (3) (a) and
(c), an applicant for a license under
s. 224.725 (1), prior to the division's issuance of the license, shall complete at least 20 hours of education, including a minimum of all of the following:
224.755(1)(b)
(b) Three hours of ethics, including instruction on fraud, consumer protection, and fair lending issues.
224.755(1)(c)
(c) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
224.755(2)
(2) Continuing education requirements. Subject to
subs. (3) (a),
(c),
(d), and
(f), an applicant for renewal of a license under
s. 224.725 (5), prior to the division's renewal of the license, shall annually complete at least 8 hours of education, including a minimum of all of the following:
224.755(2)(b)
(b) Two hours of ethics, including instruction on fraud, consumer protection, and fair lending issues.
224.755(2)(c)
(c) Two hours of training related to lending standards for the nontraditional mortgage product marketplace.
224.755(3)(a)(a) No education course may count toward the requirement under
sub. (1) or
(2) unless the course has been reviewed and approved by the nationwide mortgage licensing system and registry based upon reasonable standards, including review and approval of the course provider.
224.755(3)(b)
(b) An education course meeting the standard under
par. (a) may count toward the requirements under
subs. (1) and
(2) even if the course is any of the following:
224.755(3)(b)1.
1. Provided by the applicant's or licensee's employer, by an entity affiliated with the applicant or licensee by an agency contract, or by any subsidiary or affiliate of such an employer or affiliated entity.
224.755(3)(b)2.
2. Offered through the Internet or another online or electronic medium.
224.755(3)(c)
(c) Subject to any rule promulgated under
s. 224.72 (7) (bm) or
224.725 (5) (b), if an individual was previously registered as a loan originator under s.
224.72, 2007 stats., or previously licensed as a mortgage loan originator under
s. 224.725, the division may not issue or renew a mortgage loan originator license for the individual under
s. 224.725 unless the individual satisfies the requirements under
sub. (1) or
(2) or demonstrates to the division's satisfaction that the individual has completed all education requirements applicable to the individual in the last year in which the individual's license or registration was valid.
