SB62: Bill Text

SB62, s. 612 Section 612. 224.72 (4) (a) 2. of the statutes is amended to read:

SB62,256,14 224.72 (4) (a) 2. `File a bond.' File with the division a commercial surety bond which is in the amount of $25,000 $300,000 for a mortgage banker or $120,000 for a mortgage broker, is issued by a surety company authorized to do business in this state, secures the applicant's faithful performance of all duties and obligations of a mortgage banker or mortgage broker, is payable to the division for the benefit of persons to whom the mortgage banker or mortgage broker provided services as a mortgage banker or mortgage broker, is issued on a form that is acceptable to the division and provides that the bond may not be terminated without at least 30 days' written notice to the division.

SB62, s. 613 Section 613. 224.72 (4) (a) 3. of the statutes is repealed.

SB62, s. 614 Section 614. 224.72 (4) (a) 4. of the statutes is amended to read:

SB62,256,24 224.72 (4) (a) 4. `Minimum net worth.' Submit evidence that establishes, to the division's satisfaction, a minimum net worth of $25,000 and a warehouse line of credit of not less than $250,000 or a minimum net worth of $100,000 $250,000 for a mortgage banker or $100,000 for a mortgage broker. Evidence of net worth shall include the submission of a balance sheet that is recent financial statements accompanied by a written statement by an independent certified public accountant attesting that he or she has reviewed the balance sheet financial statements in accordance with generally accepted accounting principles.

SB62, s. 615 Section 615. 224.72 (4) (d) of the statutes is repealed.

SB62, s. 616 Section 616. 224.72 (4m) of the statutes is repealed.

SB62, s. 617 Section 617. 224.72 (4n) (intro.) of the statutes is amended to read:

SB62,257,6 224.72 (4n) Security held by the division; release. (intro.) The division or its agent shall hold security filed under subs. (4) (a) 3. and (4m) (a) 2. s. 224.72 (4) (a) 3., 2007 stats., and s. 224.72 (4m) (a) 2., 2007 stats. The security shall remain in effect, and the division may not release it, until all of the following conditions are met:

SB62, s. 618 Section 618. 224.72 (4n) (a) 2. of the statutes is amended to read:

SB62,257,9 224.72 (4n) (a) 2. The date on which the mortgage banker's or mortgage broker's registration license expires or is revoked.

SB62, s. 619 Section 619. 224.72 (4r) of the statutes is repealed.

SB62, s. 620 Section 620. 224.72 (5) (title) of the statutes is renumbered 224.72 (5m) (title) and amended to read:

SB62,257,13 224.72 (5m) (title) Completion of registration licensing process.

SB62, s. 621 Section 621. 224.72 (5) (a) of the statutes is renumbered 224.725 (3) (intro.) and amended to read:

SB62,257,22 224.725 (3) Loan originator Issuance of license. (intro.) Except as provided in sub. (7m) (6), upon receiving a properly completed the filing of an application for registration as a mortgage loan originator and license and the payment of the fee specified in rules promulgated under sub. (8) and upon an applicant's compliance with sub. (3) (a) and, if required, sub. (3) (b), the division may issue to the applicant a certificate of registration as a mortgage loan originator. license if the division finds that all of the following apply:

SB62, s. 622 Section 622. 224.72 (5) (b) of the statutes is renumbered 224.72 (5m) and amended to read:

SB62,258,14 224.72 (5m) Mortgage banker and mortgage broker. Except as provided in sub. (7m), upon receiving a properly completed the filing of an application for registration as a mortgage banker or a mortgage broker, license and the payment of the fee specified in rules promulgated under sub. (8) and satisfactory evidence of compliance with subs. (4) and (4m), the division may shall make an investigation of the applicant including, if the applicant is a partnership, limited liability company, association, or corporation, the members or officers and directors, respectively, of the applicant. If the division finds that the character, general fitness, and financial responsibility of the applicant, including its members or officers and directors if the applicant is a partnership, limited liability company, association, or corporation, warrant the belief that the business will be operated in compliance with this subchapter, the division shall issue to the applicant a certificate of registration as a mortgage banker or mortgage broker license. A mortgage banker or mortgage broker license is not assignable or transferable.

SB62, s. 623 Section 623. 224.72 (7) (title) of the statutes is repealed and recreated to read:

SB62,258,16 224.72 (7) (title) License renewal.

SB62, s. 624 Section 624. 224.72 (7) (a) of the statutes is renumbered 224.72 (7) (am) and amended to read:

SB62,259,2 224.72 (7) (am) A loan originator, mortgage broker or mortgage banker shall may apply to renew a certificate of registration license issued under this section by timely submitting to, on forms and in the manner prescribed by the division, a completed renewal application and the all required renewal fee specified in rules promulgated under sub. (8) on or before the renewal date specified in rules promulgated under sub. (8) fees. The division may not renew a license issued under this section unless the division finds that the mortgage broker or mortgage banker continues to meet the minimum standards for license issuance under this section.

SB62, s. 625 Section 625. 224.72 (7) (b) of the statutes is repealed.

SB62, s. 626 Section 626. 224.72 (7) (bm) of the statutes is created to read:

SB62,259,8 224.72 (7) (bm) The license of a mortgage broker or mortgage banker who fails to satisfy the minimum standards for license renewal shall expire. The division may, by rule, provide for the reinstatement of expired licenses consistent with the standards established by the nationwide mortgage licensing system and registry.

SB62, s. 627 Section 627. 224.72 (7) (c), (d) and (e) of the statutes are repealed.

SB62, s. 628 Section 628. 224.72 (7m) (intro.) of the statutes is amended to read:

SB62,259,13 224.72 (7m) Denial of application for issuance or renewal of registration certain reasons. (intro.) The division may not issue or renew a certificate of registration license under this section if any of the following applies:

SB62, s. 629 Section 629. 224.72 (7m) (am) of the statutes is repealed.

SB62, s. 630 Section 630. 224.72 (7m) (b) of the statutes is amended to read:

SB62,259,21 224.72 (7m) (b) The department of revenue has certified under s. 73.0301 that the applicant is liable for delinquent taxes. An applicant whose application for issuance or renewal of a certificate of registration license is denied under this paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.

SB62, s. 631 Section 631. 224.72 (7m) (c) of the statutes is amended to read:

SB62,260,7 224.72 (7m) (c) The applicant for the issuance or renewal is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857. An applicant whose registration license is not issued or renewed under this paragraph for delinquent payments is entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice or hearing under this section.

SB62, s. 632 Section 632. 224.72 (7p) of the statutes is repealed.

SB62, s. 633 Section 633. 224.72 (8) of the statutes is amended to read:

SB62,260,12 224.72 (8) Registration License period; fees. The division shall promulgate rules establishing the registration license period and the registration license fees for loan originators, mortgage bankers and mortgage brokers.

SB62, s. 634 Section 634. 224.725 of the statutes is created to read:

SB62,260,21 224.725 Licensing of mortgage loan originators. (1) License required. Except as provided in s. 224.726, an individual may not engage in the business of a mortgage loan originator with respect to a residential mortgage loan, or use the title "mortgage loan originator," advertise, or otherwise portray himself or herself as a mortgage loan originator in this state, unless the individual has been issued by the division, and thereafter maintains, a license under this section. Each licensed mortgage loan originator shall register with, and maintain a valid unique identifier issued by, the nationwide mortgage licensing system and registry.

SB62,261,4 (2) License applications. (a) Applicants for a mortgage loan originator license shall apply to the division, on forms and in the manner prescribed by the division, and shall pay the fee specified in rules promulgated under sub. (8). The division shall require mortgage loan originators to be licensed and registered through the nationwide mortgage licensing system and registry. Forms prescribed by the division under this paragraph may contain any content or requirement that the division, in its discretion, determines necessary and these forms may be modified or updated as necessary by the division to carry out the purposes of this subchapter.

SB62,261,7 (b) 1. Except as provided in subd. 2., an application shall include the individual's social security number. The division may not disclose the individual's social security number to any person except as follows:

SB62,261,9 a. The division may disclose the social security number to the department of revenue for the sole purpose of requesting certifications under s. 73.0301.

SB62,261,12 b. The division may disclose the social security number to the department of children and families in accordance with a memorandum of understanding under s. 49.857.

SB62,261,19 2. If an individual does not have a social security number, the individual, as a condition of applying for, or applying to renew, a license under this section, shall submit a statement made or subscribed under oath or affirmation to the division that the individual does not have a social security number. The form of the statement shall be prescribed by the department of children and families. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this subdivision is invalid.

SB62,261,22 (c) Any applicant for a license under this section shall furnish to the nationwide mortgage licensing system and registry information concerning the applicant's identity, including all of the following:

SB62,261,25 1. Fingerprints for submission to the federal bureau of investigation and to any governmental agency or entity authorized to receive this information, for purposes of a state, national, and international criminal history background check.

SB62,262,4 2. Personal history and experience in a form prescribed by the nationwide mortgage licensing system and registry, including the submission of authorization for the nationwide mortgage licensing system and registry and the division to obtain all of the following:

SB62,262,6 a. An independent credit report from a consumer reporting agency, as defined in s. 100.54 (1) (c).

SB62,262,8 b. Any information related to any administrative, civil, or criminal findings by any governmental jurisdiction.

SB62,262,11 (3) (a) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, unless the revocation was subsequently and formally vacated.

SB62,262,17 (b) The applicant has not been convicted of, or pled guilty or no contest to, a felony in a domestic, foreign, or military court during the 7-year period preceding the date of the application or, for a felony involving an act of fraud, dishonesty, breach of trust, or money laundering, at any time preceding the date of the application. This paragraph does not apply with respect to any conviction for which the applicant has received a pardon.

SB62,263,2 (c) The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this subchapter. For purposes of this paragraph, an individual has shown that he or she is not financially responsible if he or she has shown a disregard in the management of his or her own financial condition, including having current outstanding judgments other than those resulting from medical expenses, having current outstanding tax liens or other government liens and filings, or having, within the past 3 years, foreclosures or any pattern of seriously delinquent accounts.

SB62,263,3 (d) The applicant has satisfied the education requirements under s. 224.755 (1).

SB62,263,5 (e) The applicant has passed a written test that meets the requirements under s. 224.755 (4).

SB62,263,6 (f) The applicant has met the surety bond requirement under sub. (4).

SB62,263,12 (4) Surety bond. (a) Each mortgage loan originator shall be covered by a surety bond in accordance with this subsection. A surety bond of a mortgage banker or mortgage broker meeting the requirements of par. (b) and s. 224.72 (4) (a) 2. may satisfy the requirement under this paragraph for a mortgage loan originator who, under sub. (2) (d), identifies himself or herself as employed by the mortgage banker or mortgage broker.

SB62,263,15 (b) The penal sum of the surety bond shall provide coverage for each mortgage loan originator in an amount that reflects the dollar amount of residential mortgage loans originated by the mortgage loan originator, as determined by the division.

SB62,263,17 (c) The surety bond shall be in a form prescribed, and satisfy all requirements established, by rule of the division.

SB62,263,21 (d) When an action is commenced on a mortgage loan originator's surety bond, the division may require the filing of a new surety bond. If an action results in recovery on a mortgage loan originator's surety bond, the mortgage loan originator shall immediately file a new surety bond.

SB62,264,2 (5) License renewal. (a) A mortgage loan originator may apply to renew a license issued under this section by timely submitting, on forms and in the manner prescribed by the division, a completed renewal application and all required renewal fees. The division may not renew a license issued under this section unless the division finds that all of the following apply:

SB62,264,4 1. The mortgage loan originator continues to meet the minimum standards for license issuance under sub. (3).

SB62,264,6 2. The mortgage loan originator has satisfied the annual continuing education requirements under s. 224.755 (2).

SB62,264,10 (b) The license of a mortgage loan originator who fails to satisfy the minimum standards for license renewal shall expire. The division may, by rule, provide for the reinstatement of expired licenses consistent with the standards established by the nationwide mortgage licensing system and registry.

SB62,264,12 (6) Denial of application for certain reasons. The division may not issue or renew a license under this section if any of the following applies:

SB62,264,14 (a) The applicant for the issuance or renewal has failed to provide the information required under sub. (2) (b).

SB62,264,19 (b) The department of revenue has certified under s. 73.0301 that the applicant is liable for delinquent taxes. An applicant whose application for issuance or renewal of a license is denied under this paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.

SB62,265,4 (c) The applicant for the issuance or renewal has failed to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families or a county child support agency under s. 59.53 (5) and related to paternity or child support proceedings or who is delinquent in making court-ordered payments of child or family support, maintenance, birth expenses, medical expenses or other expenses related to the support of a child or former spouse, as provided in a memorandum of understanding entered into under s. 49.857. An applicant whose license is not issued or renewed under this paragraph for delinquent payments is entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice or hearing under this section.

SB62,265,7 (8) License period; fees. The division shall promulgate rules establishing the license period and the license fees for mortgage loan originators. The fees shall be no less than $250 annually.

SB62, s. 635 Section 635. 224.726 of the statutes is created to read:

SB62,265,11 224.726 Persons exempt from mortgage loan originator provisions. The provisions of this subchapter relating to mortgage loan originators do not apply to any of the following:

SB62,265,13 (1) Any individual who meets the definition of mortgage loan originator and who is all of the following:

SB62,265,16 (a) An employee of, and acting for, a depository institution, a subsidiary owned and controlled by a depository institution and regulated by a federal banking agency, or an institution regulated by the farm credit administration.

SB62,265,18 (b) Registered with, and who maintains a unique identifier through, the nationwide mortgage licensing system and registry.

SB62,265,22 (2) Any individual who offers or negotiates terms of a residential mortgage loan with or on behalf of the individual's spouse, child, sibling, parent, grandparent, or grandchild, including any stepparent, stepchild, stepsibling, or adoptive relationship.

SB62,265,24 (3) Any person who offers or negotiates terms of a residential mortgage loan secured by a dwelling that served as the individual's residence.

SB62,266,5 (4) A licensed attorney who negotiates the terms of a residential mortgage loan on behalf of a client as an ancillary matter to the attorney's representation of the client, unless the attorney is compensated by a lender, mortgage broker, or mortgage loan originator or by any agent of a lender, mortgage broker, or mortgage loan originator.

SB62, s. 636 Section 636. 224.728 of the statutes is created to read:

SB62,266,19 224.728 Nationwide mortgage licensing system and registry and cooperative arrangements. (1) Participation. (a) The division shall participate in the nationwide mortgage licensing system and registry. The division may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to licensees under this subchapter. With respect to any form, fee, or other information related to the initial issuance or renewal of a mortgage loan originator license under this subchapter, the division may require that any applicant submit such form, fee, or other information directly to the nationwide mortgage licensing system and registry and may authorize the nationwide mortgage licensing system and registry to perform any function under this subchapter related to the licensing of mortgage loan originators in this state.

SB62,266,25 (b) The division may provide to the nationwide mortgage licensing system and registry any information relating to an applicant for initial issuance or renewal of a mortgage loan originator license that the division and the nationwide mortgage licensing system and registry determine to be relevant to the application or to any mortgage loan originator responsibility administered or conducted through the nationwide mortgage licensing system and registry.

SB62,267,7 (c) The division may rely on the nationwide mortgage licensing system and registry to establish any dates relating to application or reporting deadlines for mortgage loan originators, to establish requirements for amending or surrendering mortgage loan originator licenses, or to establish any other requirements applicable to mortgage loan originators licensed under this subchapter to the extent the requirements are a condition of the state's participation in the nationwide mortgage licensing system and registry.

SB62,267,14 (2) Channeling information. To reduce the points of contact that the division may have to maintain, and to facilitate compliance with the requirements under s. 224.725 (2) (c), the division may use the nationwide mortgage licensing system and registry as a channeling agent for requesting and distributing information to and from any source so directed by the division, including the federal bureau of investigation, any state or federal department of justice, or any other governmental agency.

SB62,267,17 (3) Challenge process. The division shall establish a process whereby mortgage loan originators may challenge information maintained by the nationwide mortgage licensing system and registry on behalf of the division.

SB62,267,25 (4) Confidential information. (a) If any information or material is considered confidential or privileged under federal or state law before it is provided or disclosed to the nationwide mortgage licensing system and registry, it shall continue to be confidential or privileged after it is provided or disclosed to, and while maintained by, the nationwide mortgage licensing system and registry, except to the extent federal or state law expressly provides otherwise and except as provided in par. (c). Confidential or privileged information or material under this paragraph is not subject to any of the following:

SB62,268,2 1. Disclosure under any federal or state law governing the disclosure to the public of information held by an officer or an agency of federal or state government.

SB62,268,6 2. Subpoena or discovery, or admission into evidence, in any private civil action or administrative proceeding, unless the person to whom the information or material pertains waives any right or protection of confidentiality or privilege in the information or material.

SB62,268,10 (b) Confidential or privileged information or material under par. (a) may be shared with any state or federal regulatory agency having supervisory authority over mortgage lending without losing any right or protection of confidentiality or privilege under federal or state law.

SB62,268,14 (c) This subsection does not prohibit the nationwide mortgage licensing system and registry from providing public access to information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators.

SB62,268,19 (5) Cooperative arrangements. The division may enter into cooperative, coordinating, or information-sharing arrangements or agreements with other governmental agencies or with associations representing other governmental agencies, including the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

SB62, s. 637 Section 637. 224.73 (title) of the statutes is amended to read:

SB62,268,22 224.73 (title) Relationship between mortgage loan originator and either a mortgage banker or a mortgage broker.