224.74 (1) (b) Audit requirement for mortgage bankers. 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.
360,56
Section
56. 224.74 (1) (bm) of the statutes is created to read:
224.74 (1) (bm) Reviewed financial statements for mortgage brokers. Each year, no later than 6 months following the end of its most recently completed fiscal year, each mortgage broker shall submit a copy of the mortgage broker's reviewed financial statements for the mortgage broker's operations during that fiscal year. The reviewed financial statements shall include a balance sheet, an income statement, and a written statement by an independent certified public accountant attesting that he or she has conducted his or her review in accordance with generally accepted accounting principles and professional standards of the American Institute of CPAs.
360,57
Section
57. 224.75 (2) of the statutes is amended to read:
224.75 (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 but one that is not located in a residence unless the residence is authorized as a principal office under s. 224.72 (2m) (b) 2., 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.
360,58
Section
58. 224.755 (4) (d) of the statutes is amended to read:
224.755 (4) (d) An individual may retake take a test 3 consecutive times, with each test retaken no less than retest occurring at least 30 days after the preceding test. If the individual fails 3 consecutive tests, the individual may not retake a test again for at least 6 months.
360,59
Section
59. 224.755 (4) (e) of the statutes is amended to read:
224.755 (4) (e) If an individual previously licensed as a mortgage loan originator fails to maintain a valid license for a period of 5 years or longer, not taking into account any time during which the individual is a registered loan originator, the individual shall retake the test under par. (a). For purposes of determining the 5-year period, the division shall not consider any period during which the individual is exempt from licensing under s. 224.726 (1).
360,60
Section
60. 224.77 (title) of the statutes is amended to read:
224.77 (title) Prohibited acts and practices, and discipline, of mortgage bankers, mortgage loan originators, and mortgage brokers, and registered entities.
360,61
Section
61. 224.77 (1) (intro.) of the statutes is amended to read:
224.77 (1) Prohibited acts and practices. (intro.) No mortgage banker, mortgage loan originator, or mortgage broker, or, with respect to pars. (f), (fg), (g), (gd), and (gh), registered entity, and no member, officer, director, principal, partner, trustee, or other agent of a mortgage banker or, mortgage broker, or registered entity may do any of the following:
360,62
Section
62. 224.77 (1) (f) of the statutes is amended to read:
224.77 (1) (f) Accept a commission, money, or other thing of value for performing an act as a mortgage loan originator unless the payment is from a the mortgage banker or, mortgage broker, or registered entity with whom the mortgage loan originator's license is associated, as identified in the records of the division at the time the act is performed.
360,63
Section
63. 224.77 (1) (fg) of the statutes is amended to read:
224.77 (1) (fg) As a mortgage banker or
, mortgage broker, or registered entity, pay a commission, money, or other thing of value to any person for performing an act as a mortgage loan originator unless the mortgage loan originator's license is associated with the mortgage banker or, mortgage broker, or registered entity in the records of the division at the time the act is performed.
360,64
Section
64. 224.77 (1) (g) of the statutes is amended to read:
224.77 (1) (g) As a mortgage loan originator, represent or attempt to represent a mortgage banker or, mortgage broker, or registered entity other than the mortgage banker or, mortgage broker, or registered entity 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.
360,65
Section
65. 224.77 (1) (gd) of the statutes is amended to read:
224.77 (1) (gd) As a mortgage banker or
, mortgage broker, or registered entity, 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, or registered entity.
360,66
Section
66. 224.77 (1) (gh) of the statutes is amended to read:
224.77 (1) (gh) As a mortgage banker or
, mortgage broker, or registered entity, permit a person whose mortgage loan originator license is not associated in the records of the division with the mortgage banker or, mortgage broker, or registered entity to act as a mortgage loan originator on behalf of the mortgage banker or, mortgage broker, or registered entity.
360,67
Section
67. 224.77 (1) (sm) and (sq) of the statutes are created to read:
224.77 (1) (sm) As a mortgage loan originator, fail to identify his or her name and sign the mortgage loan application for a loan originated by him or her.
(sq) As a mortgage banker, mortgage broker, or mortgage loan originator, use any solicitation or advertisement to which any of the following applies:
1. The solicitation or advertisement misrepresents that the provider is, or is affiliated with, any governmental entity or other organization.
2. The solicitation or advertisement misrepresents that the product is or relates to a government benefit, or is endorsed, sponsored by, or affiliated with any government or government-related program, including through the use of formats, symbols, or logos that resemble those of such entity, organization, or program.
3. The solicitation or advertisement does not clearly and conspicuously identify the name of the mortgage broker or mortgage banker or, if a mortgage loan originator is sponsored by a registered entity, the registered entity.
360,68
Section
68. 224.77 (2m) (a) 1. (intro.), a. and b. of the statutes are amended to read:
224.77 (2m) (a) 1. (intro.) 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, or a registered entity has violated any applicable provision of this subchapter, the division may do any of the following:
a. Deny any application for initial issuance or renewal of a license or registration.
b. Revoke, suspend, limit, or condition any license of the mortgage banker, mortgage loan originator, or mortgage broker or registration of the registered entity.
360,69
Section
69. 224.83 of the statutes is repealed.
360,70
Section
70. 943.80 (2) of the statutes is amended to read:
943.80 (2) "Financial institution" means a bank, as defined in s. 214.01 (1) (c), a savings bank, as defined in s. 214.01 (1) (t), a savings and loan association, a trust company, a credit union, as defined in s. 186.01 (2), a mortgage banker, as defined in s. 224.71 (3) (a), or a mortgage broker, as defined in s. 224.71 (4) (a), whether chartered under the laws of this state, another state or territory, or under the laws of the United States; a company that controls, is controlled by, or is under common control with a bank, a savings bank, a savings and loan association, a trust company, a credit union, a mortgage banker, or a mortgage broker; or a person licensed under s. 138.09, other than a person who agrees for a fee to hold a check for a period of time before negotiating or presenting the check for payment and other than a pawnbroker, as defined in s. 138.10 (1) (a).
