AB792-ASA1,10,21 19428.208 Disclosure to customers. At least 3 business days before making
20a covered loan to a customer, a lender shall ensure that the customer has been given
21the following notice, in writing and in a clear and conspicuous format:
AB792-ASA1,10,2222 DISCLOSURE TO BORROWER
AB792-ASA1,11,423 A. If you obtain this loan, the lender will have a mortgage on your home. You
24could lose your home and any money that you have put into it if you do not meet your
25obligations under this loan. Mortgage loan rates and closing costs and fees vary

1based on many factors, including your particular credit and financial circumstances,
2your earnings history, your employment status, the loan-to-value ratio of the
3requested loan, and the type of property that will secure your loan. The loan rate and
4fees could also vary based on which lender you select.
AB792-ASA1,11,85 B. As a consumer you should shop around and compare loan rates and fees.
6You should also consider consulting a qualified independent credit counselor or other
7experienced financial adviser regarding the rate, fees, and provisions of this
8mortgage loan before you proceed.
AB792-ASA1,11,169 C. You are not required to complete this loan agreement merely because you
10have received these disclosures or have signed a loan application. If you proceed with
11this mortgage loan, you should also remember that you may face serious financial
12risks if you use this loan to pay off credit card debts or other debts in connection with
13this transaction and then subsequently incur significant new debt. If you continue
14to accumulate debt after this loan is made and then experience financial difficulties,
15you could lose your home and any equity that you have in it if you do not meet your
16mortgage loan obligations.
AB792-ASA1,11,2017 D. Property taxes and homeowner's insurance are your responsibility. Some
18lenders may require you to escrow money for these payments. However, not all
19lenders provide escrow services for these payments. You should ask your lender
20about these services.
AB792-ASA1,11,2321 E. Your payments on existing debts contribute to your credit ratings. You
22should not accept any advice to ignore your regular payments to your existing
23creditors.
AB792-ASA1,12,5 24428.209 Exclusive state regulation authority. The state shall have sole
25authority, except as provided under federal law, to regulate any matter governed by

1this subchapter or by a rule promulgated under this subchapter. No local
2governmental unit may attempt to regulate, directly or indirectly, any matter
3governed by this subchapter or by a rule promulgated under this subchapter,
4including enacting an ordinance or adopting a resolution or imposing reporting
5requirements.
AB792-ASA1,12,10 6428.2095 Property exempt from debt collection. Except to the extent that
7the lender has a valid security interest permitted under this subchapter or has a lien
8under ch. 779 in the property, all of the following personal property of the customer
9is exempt from levy, execution, sale, and other similar process in satisfaction of a
10judgment for an obligation arising from a covered loan:
AB792-ASA1,12,11 11(1) Clothing of the customer or his or her dependents.
AB792-ASA1,12,13 12(2) Dining table and chairs, refrigerator, heating stove, cooking stove, radio,
13beds and bedding, couch and chairs, cooking utensils, and kitchenware.
AB792-ASA1,12,19 14(3) Household goods, as defined in 12 CFR 227.13 (d), 12 CFR 535.1 (g), or 16
15CFR 444.1
(i), consisting of furniture, appliances, one television, linens, china,
16crockery, and personal effects including wedding rings, except works of art,
17electronic entertainment equipment, antiques, and jewelry, to the extent that a
18nonpossessory security interest in these household goods is prohibited under 12 CFR
19227.13
(d), 12 CFR 535.2 (a) (4), or 16 CFR 444.2 (a) (4).
AB792-ASA1,12,23 20428.210 Administration and penalties. (1) Rules. The department may
21promulgate rules for the administration of this subchapter. The rules shall include
22guidelines for determining a customer's ability to repay a covered loan based upon
23the customer's debt-to-income ratio.
AB792-ASA1,13,11 24(2) Investigations. (a) At any time that the department has reason to believe
25that a person has engaged in or is about to engage in an act that violates this

1subchapter, the department may investigate. In performing an investigation under
2this paragraph, the department may administer oaths or affirmations, subpoena
3witnesses, compel their attendance, adduce evidence, and require the production of
4any matter, including the existence, description, nature, custody, condition, and
5location of any books, documents, or other tangible things, and the identity and
6location of persons having knowledge of relevant facts, or any other matter
7reasonably calculated to lead to the discovery of admissible evidence. The
8department may access and examine such books, documents, or other tangible
9things. In any civil action brought on behalf of the department based on evidence
10obtained in such an investigation, the department may recover the costs of
11performing the investigation if the department prevails in the action.
AB792-ASA1,13,1412 (b) If 5 or more persons file a verified complaint with the department alleging
13that a person has violated this subchapter, the department shall immediately
14commence an investigation pursuant to par. (a).
AB792-ASA1,13,2115 (c) If the records of a person who is subject to an investigation pursuant to par.
16(a) are located outside of this state, the person at the person's option shall either
17make them available to the department at a convenient location within this state or
18pay the reasonable and necessary expenses for the department to examine them at
19the place where they are located. The department may designate representatives,
20including comparable officials of the state in which the records are located, to inspect
21them on the department's behalf.
AB792-ASA1,13,2522 (d) At the request of the department of financial institutions and upon
23reasonable notice to all affected persons, the department of justice may apply to any
24court of record for an order compelling compliance if a person fails to obey a subpoena
25or to give testimony pursuant to par. (a).
AB792-ASA1,14,10
1(3) Enforcement and penalties. (a) The department may serve a notice of a
2hearing that complies with s. 227.44 (1) and (2) on a person if the department
3reasonably suspects that the person has violated this subchapter. The department
4may receive complaints alleging violations of this subchapter. A hearing conducted
5pursuant to a notice under this paragraph shall be conducted in the manner specified
6for a contested case, as defined in s. 227.01 (3), under ss. 227.44 to 227.50. Except as
7provided in sub. (4), if the person fails to appear at the hearing or if upon the record
8made at the hearing the department finds that a violation has been established, the
9department may issue and serve on the person an order specifying any of the
10following:
AB792-ASA1,14,1211 1. That the person must cease and desist from the violation or practice and
12make restitution for any actual damages suffered by a customer.
AB792-ASA1,14,1513 2. That the person must forfeit not more than $1,000 per violation or, if the
14person willfully or knowingly violated this subchapter, not less than $1,000 nor more
15than $10,000 per violation.
AB792-ASA1,14,1616 3. That the person must pay to the department the costs of its investigation.
AB792-ASA1,14,1817 4. That a license, registration, or certification issued by the department to the
18person is suspended or revoked or will not be renewed.
AB792-ASA1,14,2119 5. That any individual who is responsible for the violation must be removed
20from working in any capacity related to the violation or related to activities regulated
21by the department.
AB792-ASA1,14,2222 6. Any additional conditions that the department considers reasonable.
AB792-ASA1,14,2423 (b) An order under par. (a) is effective upon service on the person and may be
24appealed under s. 220.035.
AB792-ASA1,15,2
1(c) The department of justice, at the request of the department of financial
2institutions, may bring an action to enforce an order issued under par. (a).
AB792-ASA1,15,4 3(4) Safe harbor. It is a defense to any alleged violation of this subchapter if
4the person alleged to have committed the violation establishes all of the following:
AB792-ASA1,15,55 (a) That the person acted in good faith while committing the violation.
AB792-ASA1,15,116 (b) That, no later than 60 days after the discovery of the violation and before
7any investigation or other enforcement action by the department under this section,
8the person notified the affected customer of the violation and either made
9appropriate adjustments to the loan to bring the loan into compliance with this
10subchapter or changed the terms of the loan in a manner beneficial to the customer
11so that the loan is no longer a covered loan.
AB792-ASA1,15,18 12428.211 Parity for federally insured depository institutions. This
13subchapter does not apply to any state chartered bank, trust company, savings and
14loan association, savings bank, or credit union, or to any subsidiary of a state
15chartered bank, trust company, savings and loan association, savings bank, or credit
16union, to the extent that federal law preempts or prohibits the application of the
17provisions of this subchapter to a federally chartered bank, trust company, savings
18and loan association, savings bank, or credit union of the same type.
AB792-ASA1, s. 13 19Section 13. Initial applicability.
AB792-ASA1,15,2220 (1) This act first applies to loans for which applications are received by a lender,
21as defined in section 428.202 (5) of the statutes, as created by this act, on the effective
22date of this subsection.
AB792-ASA1, s. 14 23Section 14. Effective date.
AB792-ASA1,16,2
1(1) This act takes effect on the first day of the 10th month beginning after
2publication.
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