SB62, s. 628 10Section 628. 224.72 (7m) (intro.) of the statutes is amended to read:
SB62,259,1311 224.72 (7m) Denial of application for issuance or renewal of registration
12certain reasons. (intro.) The division may not issue or renew a certificate of
13registration
license under this section if any of the following applies:
SB62, s. 629 14Section 629. 224.72 (7m) (am) of the statutes is repealed.
SB62, s. 630 15Section 630. 224.72 (7m) (b) of the statutes is amended to read:
SB62,259,2116 224.72 (7m) (b) The department of revenue has certified under s. 73.0301 that
17the applicant is liable for delinquent taxes. An applicant whose application for
18issuance or renewal of a certificate of registration license is denied under this
19paragraph for delinquent taxes is entitled to a notice under s. 73.0301 (2) (b) 1. b. and
20hearing under s. 73.0301 (5) (a) but is not entitled to any other notice or hearing
21under this section.
SB62, s. 631 22Section 631. 224.72 (7m) (c) of the statutes is amended to read:
SB62,260,723 224.72 (7m) (c) The applicant for the issuance or renewal is an individual who
24fails to comply, after appropriate notice, with a subpoena or warrant issued by the
25department of children and families or a county child support agency under s. 59.53

1(5) and related to paternity or child support proceedings or who is delinquent in
2making court-ordered payments of child or family support, maintenance, birth
3expenses, medical expenses or other expenses related to the support of a child or
4former spouse, as provided in a memorandum of understanding entered into under
5s. 49.857. An applicant whose registration license is not issued or renewed under this
6paragraph for delinquent payments is entitled to a notice and hearing under s.
749.857 but is not entitled to any other notice or hearing under this section.
SB62, s. 632 8Section 632. 224.72 (7p) of the statutes is repealed.
SB62, s. 633 9Section 633. 224.72 (8) of the statutes is amended to read:
SB62,260,1210 224.72 (8) Registration License period; fees. The division shall promulgate
11rules establishing the registration license period and the registration license fees for
12loan originators, mortgage bankers and mortgage brokers.
SB62, s. 634 13Section 634. 224.725 of the statutes is created to read:
SB62,260,21 14224.725 Licensing of mortgage loan originators. (1) License required.
15Except as provided in s. 224.726, an individual may not engage in the business of a
16mortgage loan originator with respect to a residential mortgage loan, or use the title
17"mortgage loan originator," advertise, or otherwise portray himself or herself as a
18mortgage loan originator in this state, unless the individual has been issued by the
19division, and thereafter maintains, a license under this section. Each licensed
20mortgage loan originator shall register with, and maintain a valid unique identifier
21issued by, the nationwide mortgage licensing system and registry.
SB62,261,4 22(2) License applications. (a) Applicants for a mortgage loan originator license
23shall apply to the division, on forms and in the manner prescribed by the division,
24and shall pay the fee specified in rules promulgated under sub. (8). The division shall
25require mortgage loan originators to be licensed and registered through the

1nationwide mortgage licensing system and registry. Forms prescribed by the
2division under this paragraph may contain any content or requirement that the
3division, in its discretion, determines necessary and these forms may be modified or
4updated as necessary by the division to carry out the purposes of this subchapter.
SB62,261,75 (b) 1. Except as provided in subd. 2., an application shall include the
6individual's social security number. The division may not disclose the individual's
7social security number to any person except as follows:
SB62,261,98 a. The division may disclose the social security number to the department of
9revenue for the sole purpose of requesting certifications under s. 73.0301.
SB62,261,1210 b. The division may disclose the social security number to the department of
11children and families in accordance with a memorandum of understanding under s.
1249.857.
SB62,261,1913 2. If an individual does not have a social security number, the individual, as a
14condition of applying for, or applying to renew, a license under this section, shall
15submit a statement made or subscribed under oath or affirmation to the division that
16the individual does not have a social security number. The form of the statement
17shall be prescribed by the department of children and families. Any license issued
18or renewed in reliance upon a false statement submitted by an applicant under this
19subdivision is invalid.
SB62,261,2220 (c) Any applicant for a license under this section shall furnish to the nationwide
21mortgage licensing system and registry information concerning the applicant's
22identity, including all of the following:
SB62,261,2523 1. Fingerprints for submission to the federal bureau of investigation and to any
24governmental agency or entity authorized to receive this information, for purposes
25of a state, national, and international criminal history background check.
SB62,262,4
12. Personal history and experience in a form prescribed by the nationwide
2mortgage licensing system and registry, including the submission of authorization
3for the nationwide mortgage licensing system and registry and the division to obtain
4all of the following:
SB62,262,65 a. An independent credit report from a consumer reporting agency, as defined
6in s. 100.54 (1) (c).
SB62,262,87 b. Any information related to any administrative, civil, or criminal findings by
8any governmental jurisdiction.
SB62,262,11 9(3) (a) The applicant has never had a mortgage loan originator license revoked
10in any governmental jurisdiction, unless the revocation was subsequently and
11formally vacated.
SB62,262,1712 (b) The applicant has not been convicted of, or pled guilty or no contest to, a
13felony in a domestic, foreign, or military court during the 7-year period preceding the
14date of the application or, for a felony involving an act of fraud, dishonesty, breach
15of trust, or money laundering, at any time preceding the date of the application. This
16paragraph does not apply with respect to any conviction for which the applicant has
17received a pardon.
SB62,263,218 (c) The applicant has demonstrated financial responsibility, character, and
19general fitness such as to command the confidence of the community and to warrant
20a determination that the mortgage loan originator will operate honestly, fairly, and
21efficiently within the purposes of this subchapter. For purposes of this paragraph,
22an individual has shown that he or she is not financially responsible if he or she has
23shown a disregard in the management of his or her own financial condition, including
24having current outstanding judgments other than those resulting from medical
25expenses, having current outstanding tax liens or other government liens and

1filings, or having, within the past 3 years, foreclosures or any pattern of seriously
2delinquent accounts.
SB62,263,33 (d) The applicant has satisfied the education requirements under s. 224.755 (1).
SB62,263,54 (e) The applicant has passed a written test that meets the requirements under
5s. 224.755 (4).
SB62,263,66 (f) The applicant has met the surety bond requirement under sub. (4).
SB62,263,12 7(4) Surety bond. (a) Each mortgage loan originator shall be covered by a surety
8bond in accordance with this subsection. A surety bond of a mortgage banker or
9mortgage broker meeting the requirements of par. (b) and s. 224.72 (4) (a) 2. may
10satisfy the requirement under this paragraph for a mortgage loan originator who,
11under sub. (2) (d), identifies himself or herself as employed by the mortgage banker
12or mortgage broker.
SB62,263,1513 (b) The penal sum of the surety bond shall provide coverage for each mortgage
14loan originator in an amount that reflects the dollar amount of residential mortgage
15loans originated by the mortgage loan originator, as determined by the division.
SB62,263,1716 (c) The surety bond shall be in a form prescribed, and satisfy all requirements
17established, by rule of the division.
SB62,263,2118 (d) When an action is commenced on a mortgage loan originator's surety bond,
19the division may require the filing of a new surety bond. If an action results in
20recovery on a mortgage loan originator's surety bond, the mortgage loan originator
21shall immediately file a new surety bond.
SB62,264,2 22(5) License renewal. (a) A mortgage loan originator may apply to renew a
23license issued under this section by timely submitting, on forms and in the manner
24prescribed by the division, a completed renewal application and all required renewal

1fees. The division may not renew a license issued under this section unless the
2division finds that all of the following apply:
SB62,264,43 1. The mortgage loan originator continues to meet the minimum standards for
4license issuance under sub. (3).
SB62,264,65 2. The mortgage loan originator has satisfied the annual continuing education
6requirements under s. 224.755 (2).
SB62,264,107 (b) The license of a mortgage loan originator who fails to satisfy the minimum
8standards for license renewal shall expire. The division may, by rule, provide for the
9reinstatement of expired licenses consistent with the standards established by the
10nationwide mortgage licensing system and registry.
SB62,264,12 11(6) Denial of application for certain reasons. The division may not issue or
12renew a license under this section if any of the following applies:
SB62,264,1413 (a) The applicant for the issuance or renewal has failed to provide the
14information required under sub. (2) (b).
SB62,264,1915 (b) The department of revenue has certified under s. 73.0301 that the applicant
16is liable for delinquent taxes. An applicant whose application for issuance or renewal
17of a license is denied under this paragraph for delinquent taxes is entitled to a notice
18under s. 73.0301 (2) (b) 1. b. and hearing under s. 73.0301 (5) (a) but is not entitled
19to any other notice or hearing under this section.
SB62,265,420 (c) The applicant for the issuance or renewal has failed to comply, after
21appropriate notice, with a subpoena or warrant issued by the department of children
22and families or a county child support agency under s. 59.53 (5) and related to
23paternity or child support proceedings or who is delinquent in making court-ordered
24payments of child or family support, maintenance, birth expenses, medical expenses
25or other expenses related to the support of a child or former spouse, as provided in

1a memorandum of understanding entered into under s. 49.857. An applicant whose
2license is not issued or renewed under this paragraph for delinquent payments is
3entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice
4or hearing under this section.
SB62,265,7 5(8) License period; fees. The division shall promulgate rules establishing the
6license period and the license fees for mortgage loan originators. The fees shall be
7no less than $250 annually.
SB62, s. 635 8Section 635. 224.726 of the statutes is created to read:
SB62,265,11 9224.726 Persons exempt from mortgage loan originator provisions.
10The provisions of this subchapter relating to mortgage loan originators do not apply
11to any of the following:
SB62,265,13 12(1) Any individual who meets the definition of mortgage loan originator and
13who is all of the following:
SB62,265,1614 (a) An employee of, and acting for, a depository institution, a subsidiary owned
15and controlled by a depository institution and regulated by a federal banking agency,
16or an institution regulated by the farm credit administration.
SB62,265,1817 (b) Registered with, and who maintains a unique identifier through, the
18nationwide mortgage licensing system and registry.
SB62,265,22 19(2) Any individual who offers or negotiates terms of a residential mortgage loan
20with or on behalf of the individual's spouse, child, sibling, parent, grandparent, or
21grandchild, including any stepparent, stepchild, stepsibling, or adoptive
22relationship.
SB62,265,24 23(3) Any person who offers or negotiates terms of a residential mortgage loan
24secured by a dwelling that served as the individual's residence.
SB62,266,5
1(4) A licensed attorney who negotiates the terms of a residential mortgage loan
2on behalf of a client as an ancillary matter to the attorney's representation of the
3client, unless the attorney is compensated by a lender, mortgage broker, or mortgage
4loan originator or by any agent of a lender, mortgage broker, or mortgage loan
5originator.
SB62, s. 636 6Section 636. 224.728 of the statutes is created to read:
SB62,266,19 7224.728 Nationwide mortgage licensing system and registry and
8cooperative arrangements.
(1) Participation. (a) The division shall participate
9in the nationwide mortgage licensing system and registry. The division may
10establish relationships or contracts with the nationwide mortgage licensing system
11and registry or other entities designated by the nationwide mortgage licensing
12system and registry to collect and maintain records and process transaction fees or
13other fees related to licensees under this subchapter. With respect to any form, fee,
14or other information related to the initial issuance or renewal of a mortgage loan
15originator license under this subchapter, the division may require that any applicant
16submit such form, fee, or other information directly to the nationwide mortgage
17licensing system and registry and may authorize the nationwide mortgage licensing
18system and registry to perform any function under this subchapter related to the
19licensing of mortgage loan originators in this state.
SB62,266,2520 (b) The division may provide to the nationwide mortgage licensing system and
21registry any information relating to an applicant for initial issuance or renewal of a
22mortgage loan originator license that the division and the nationwide mortgage
23licensing system and registry determine to be relevant to the application or to any
24mortgage loan originator responsibility administered or conducted through the
25nationwide mortgage licensing system and registry.
SB62,267,7
1(c) The division may rely on the nationwide mortgage licensing system and
2registry to establish any dates relating to application or reporting deadlines for
3mortgage loan originators, to establish requirements for amending or surrendering
4mortgage loan originator licenses, or to establish any other requirements applicable
5to mortgage loan originators licensed under this subchapter to the extent the
6requirements are a condition of the state's participation in the nationwide mortgage
7licensing system and registry.
SB62,267,14 8(2) Channeling information. To reduce the points of contact that the division
9may have to maintain, and to facilitate compliance with the requirements under s.
10224.725 (2) (c), the division may use the nationwide mortgage licensing system and
11registry as a channeling agent for requesting and distributing information to and
12from any source so directed by the division, including the federal bureau of
13investigation, any state or federal department of justice, or any other governmental
14agency.
SB62,267,17 15(3) Challenge process. The division shall establish a process whereby
16mortgage loan originators may challenge information maintained by the nationwide
17mortgage licensing system and registry on behalf of the division.
SB62,267,25 18(4) Confidential information. (a) If any information or material is considered
19confidential or privileged under federal or state law before it is provided or disclosed
20to the nationwide mortgage licensing system and registry, it shall continue to be
21confidential or privileged after it is provided or disclosed to, and while maintained
22by, the nationwide mortgage licensing system and registry, except to the extent
23federal or state law expressly provides otherwise and except as provided in par. (c).
24Confidential or privileged information or material under this paragraph is not
25subject to any of the following:
SB62,268,2
11. Disclosure under any federal or state law governing the disclosure to the
2public of information held by an officer or an agency of federal or state government.
SB62,268,63 2. Subpoena or discovery, or admission into evidence, in any private civil action
4or administrative proceeding, unless the person to whom the information or material
5pertains waives any right or protection of confidentiality or privilege in the
6information or material.
SB62,268,107 (b) Confidential or privileged information or material under par. (a) may be
8shared with any state or federal regulatory agency having supervisory authority
9over mortgage lending without losing any right or protection of confidentiality or
10privilege under federal or state law.
SB62,268,1411 (c) This subsection does not prohibit the nationwide mortgage licensing system
12and registry from providing public access to information or material relating to the
13employment history of, and publicly adjudicated disciplinary and enforcement
14actions against, mortgage loan originators.
SB62,268,19 15(5) Cooperative arrangements. The division may enter into cooperative,
16coordinating, or information-sharing arrangements or agreements with other
17governmental agencies or with associations representing other governmental
18agencies, including the Conference of State Bank Supervisors and the American
19Association of Residential Mortgage Regulators.
SB62, s. 637 20Section 637. 224.73 (title) of the statutes is amended to read:
SB62,268,22 21224.73 (title) Relationship between mortgage loan originator and
22either a mortgage banker or a mortgage broker.
SB62, s. 638 23Section 638. 224.73 (1) of the statutes is amended to read:
SB62,269,424 224.73 (1) Responsibility for mortgage loan originator. A mortgage banker
25or a mortgage broker is responsible for, and shall supervise the acts of, a loan

1originator who registers under s. 224.72 (3) as an employee of the mortgage banker
2or mortgage broker.
A mortgage banker or mortgage broker is also responsible for,
3and shall supervise the acts of, a mortgage loan originator or any other person who
4otherwise acts on behalf of the mortgage banker or the mortgage broker.
SB62, s. 639 5Section 639. 224.73 (2) (title) of the statutes is amended to read:
SB62,269,66 224.73 (2) (title) Restriction on mortgage loan originator.
SB62, s. 640 7Section 640. 224.73 (2) of the statutes is renumbered 224.73 (2) (a) and
8amended to read:
SB62,269,129 224.73 (2) (a) If the division suspends or revokes a mortgage banker's or a
10mortgage broker's certificate of registration license, a mortgage loan originator may
11not act on behalf of that mortgage banker or mortgage broker during the period of
12suspension or revocation.
SB62, s. 641 13Section 641. 224.73 (2) (b) of the statutes is created to read:
SB62,269,1814 224.73 (2) (b) A mortgage loan originator may act on behalf of only the
15mortgage banker or mortgage broker with which that mortgage loan originator's
16license is associated in the records of the division, as designated under s. 224.725 (2)
17(d). A mortgage loan originator's license may only be associated with one mortgage
18banker or mortgage broker at a time.
SB62, s. 642 19Section 642. 224.73 (3) (title) of the statutes is amended to read:
SB62,269,2020 224.73 (3) (title) Transfer by mortgage loan originator.
SB62, s. 643 21Section 643. 224.73 (3) of the statutes is renumbered 224.73 (3) (a) and
22amended to read:
SB62,270,223 224.73 (3) (a) A registered licensed mortgage loan originator may at any time
24apply, on forms and in the manner prescribed and provided by the division, to
25transfer employment association to another registered licensed mortgage banker or

1mortgage broker. The division shall promulgate rules establishing a fee for a
2transfer application under this subsection.
SB62, s. 644 3Section 644. 224.73 (3) (b) of the statutes is created to read:
SB62,270,74 224.73 (3) (b) A mortgage loan originator may not act on behalf of a mortgage
5banker or mortgage broker until the mortgage loan originator's license association
6has been transferred to that mortgage banker or mortgage broker in the records of
7the division.
SB62, s. 645 8Section 645. 224.73 (4) (title) of the statutes is amended to read:
SB62,270,109 224.73 (4) (title) Signature by Mortgage loan originator signatures and
10unique identifiers
.
SB62, s. 646 11Section 646. 224.73 (4) of the statutes is renumbered 224.73 (4) (a) and
12amended to read:
SB62,270,1513 224.73 (4) (a) Every residential mortgage loan application shall be signed by
14a registered licensed mortgage loan originator or by a mortgage loan originator
15exempt from licensing under s. 224.726 (1)
.
SB62, s. 647 16Section 647. 224.73 (4) (b) of the statutes is created to read:
SB62,270,2017 224.73 (4) (b) Any person originating a residential mortgage loan shall clearly
18place the person's unique identifier on all residential mortgage loan application
19forms, solicitations, and advertisements, including business cards or Web sites, and
20on all other documents specified by rule of the division.
SB62, s. 648 21Section 648. 224.74 (title) of the statutes is amended to read:
SB62,270,23 22224.74 (title) Division's review of the operations of a mortgage loan
23originator, mortgage broker
, or mortgage banker.
SB62, s. 649 24Section 649. 224.74 (1) of the statutes is amended to read:
SB62,271,9
1224.74 (1) Annual call reports; audits. (a) Annual call report. Except as
2provided in par. (b), each
Each year, on a by the date specified by the division and in
3 a the form required by the division, a nationwide mortgage licensing system and
4registry, each
mortgage banker or, mortgage broker, and mortgage loan originator
5licensed under this subchapter
shall submit to the division nationwide mortgage
6licensing system and registry
an annual report relating to the mortgage banker's or
7mortgage broker's operations during its most recently completed fiscal year
of
8condition, which shall contain such information as the nationwide mortgage
9licensing system and registry may require
.
SB62,271,1710 (b) Audit requirement. Each year, no later than 6 months following the end of
11its most recently completed fiscal year, a each mortgage banker or mortgage broker
12that qualified for registration under s. 224.72 (4) (a) 4. or (d) or (4m) (a) 3. or (b), shall
13submit a copy of an audit of the mortgage banker's or mortgage broker's operations
14during that fiscal year. An audit under this paragraph shall be conducted by an
15independent certified public accountant in accordance with generally accepted
16auditing standards. The financial statements in the audit report shall be prepared
17in accordance with generally accepted accounting principles.
SB62,272,618 (c) Audits requested by the division. The division may request that a mortgage
19banker or mortgage broker obtain an audit of the mortgage banker's or mortgage
20broker's operations if the division has reason to believe that the mortgage banker or
21mortgage broker may not have sufficient financial resources to meet its obligations
22to its clients or investors or to other persons directly affected by the activities
23conducted by the mortgage banker or mortgage broker under the certificate of
24registration granted
license issued by the division. If the division requests an audit
25under this paragraph, the mortgage banker or mortgage broker shall have the audit

1completed no later than 90 days after the date of the division's request. The mortgage
2banker or mortgage broker shall submit the audit report to the division no later than
35 days after the date on which the audit is completed. An audit under this paragraph
4shall be conducted by an independent certified public accountant in accordance with
5generally accepted auditing standards. The financial statements in the audit report
6shall be prepared in accordance with generally accepted accounting principles.
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