LRB-2419/1
ARG:jld:ph
2009 - 2010 LEGISLATURE
August 18, 2009 - Introduced by Representatives Richards, Berceau, Ballweg,
Petersen, Staskunas, Clark, A. Williams and Barca, cosponsored by Senators
Kreitlow, Lehman, Lassa and Hansen. Referred to Committee on Consumer
Protection.
AB383,1,2
1An Act to amend 224.725 (3) (b) of the statutes;
relating to: convictions
2disqualifying a person from holding a mortgage loan originator license.
Analysis by the Legislative Reference Bureau
In
2009 Wisconsin Act 2, provisions of the federal Secure and Fair Enforcement
for Mortgage Licensing Act of 2008 were adopted into state law, including provisions
establishing standards for the licensing of mortgage loan originators. A mortgage
loan originator is, with specified exceptions, an individual who takes a residential
mortgage loan application or offers or negotiates terms of a residential mortgage loan
for compensation or gain. Beginning on January 1, 2010, the Division of Banking in
the Department of Financial Institutions (division) may issue a mortgage loan
originator license to an applicant only if the applicant satisfies certain criteria. The
applicant must provide: fingerprints for submission to the Federal Bureau of
Investigation for a state, national, and international criminal history background
check; personal history information; and authorization for the release of information
related to any administrative, civil, or criminal findings against the applicant. The
division may not issue a mortgage loan originator license to an applicant if the
applicant has previously had a mortgage loan originator license revoked. The
division also may not issue a mortgage loan originator license to an applicant if the
applicant has been convicted of a felony in a domestic, foreign, or military court as
follows: 1) if the felony involved an act of fraud, dishonesty, breach of trust, or money
laundering, the felony disqualifies the applicant from holding a mortgage loan
originator's license regardless of when the felony conviction occurred; or 2) if the
felony is not one described in item 1), above, the felony disqualifies the applicant from
holding a mortgage loan originator's license only if the felony conviction occurred
within seven years prior to the license application. The division may only renew a
mortgage loan originator license if the mortgage loan originator continues to meet
the minimum standards for license issuance.
This bill specifies that an applicant convicted of a felony involving an act of
theft, embezzlement, forgery, perjury, deceit, extortion, or manufacturing,
distribution, or delivery of a controlled substance or controlled substance analog is
disqualified from holding a mortgage loan originator license regardless of when the
felony conviction occurred.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB383,2,103
224.725
(3) (b) The applicant has not been convicted of, or pled guilty or no
4contest to, a felony in a domestic, foreign, or military court during the 7-year period
5preceding the date of the application or, for a felony involving an act of fraud
or deceit,
6dishonesty, breach of trust,
theft, embezzlement, forgery, perjury, extortion, or
7manufacturing, distribution, or delivery of a controlled substance or controlled
8substance analog, or money laundering, at any time preceding the date of the
9application. This paragraph does not apply with respect to any conviction for which
10the applicant has received a pardon.
AB383,2,1312
(1) This act takes effect on January 1, 2010, or on the day after publication,
13whichever is later.
