LRB-1893/1
MDK:jld:rs
2005 - 2006 LEGISLATURE
March 3, 2005 - Introduced by Representatives Jeskewitz, Hines, Gronemus,
Richards, Freese, Kestell, Vos, Ott and Molepske, cosponsored by Senators
Lassa, Kedzie, Darling and Stepp. Referred to Committee on Financial
Institutions.
AB160,1,1
1An Act relating to: examination required for registration as a loan originator.
Analysis by the Legislative Reference Bureau
Under current law, a person may not act as a loan originator unless he or she
is registered with the Division of Banking (division) and he or she complies with
requirements for renewing the registration that are specified in rules promulgated
by the division. The rules specify renewal dates for registrations that are based on
the month that a registration was originally issued to a person. Before the passage
of
2003 Wisconsin Act 260 (act), a person did not have to pass a competency
examination in order to register with the division. The act requires a person to pass
such an examination, but only if he or she is not employed by an affiliate of any of
the following: credit unions; banks; trust companies; savings banks; savings and
loan associations; insurance companies; and land mortgage or farm loan
associations. In addition, the act does not require a person to pass an examination
if he or she was registered as a loan originator before July 2, 2005.
This bill requires a person who was registered as loan originator before July 2,
2005, to pass the competency examination, but only if he or she is not employed by
an affiliate of any of the entities specified above. When the division renews the
registration of such a person for the first renewal date that occurs after the bill's
effective date, the division must notify the person that, if the person does not, within
90 days after the renewal date, provide evidence that he or she has passed the
examination, the division will revoke the registration. If the person does not provide
the evidence within the 90-day period, the division must revoke the registration.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB160,2,22
(1)
Definitions. In this
Section:
AB160,2,33
(a) "Certificate" means a certificate of registration as a loan originator.
AB160,2,44
(b) "Division" means the division of banking.
AB160,2,65
(c) "Renewal date" means the renewal date for a certificate that is specified in
6rules promulgated by the division.
AB160,2,77
(2)
Examination required.
AB160,2,138
(a) When the division renews, for the first renewal date occurring after the
9effective date of this paragraph, the certificate of a person who was issued the
10certificate before July 2, 2005, the division shall notify the person that, if the person
11does not, within 90 days after the renewal date, submit evidence satisfactory to the
12division that he or she has passed the examination specified in section 224.72 (3) (b)
13of the statutes, the division shall revoke the certificate.
AB160,2,1714
(b) Notwithstanding
2003 Wisconsin Act 260, section
21 (1), if a person notified
15under paragraph (a) does not provide the evidence specified in paragraph (a
) to the
16division within 90 days after the renewal date specified in paragraph (a), the division
17shall revoke the person's certificate.
AB160,2,2018
(3)
Applicability. Subsection (2) does not apply to a person employed by an
19affiliate of a credit union or of an entity described under section 224.71 (3) (b) 1. of
20the statutes.
