SB62: Bill Text

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.

SB62, s. 638 Section 638. 224.73 (1) of the statutes is amended to read:

SB62,269,4 224.73 (1) Responsibility for mortgage loan originator. A mortgage banker or a mortgage broker is responsible for, and shall supervise the acts of, a loan originator who registers under s. 224.72 (3) as an employee of the mortgage banker or mortgage broker. A mortgage banker or mortgage broker is also responsible for, and shall supervise the acts of, a mortgage loan originator or any other person who otherwise acts on behalf of the mortgage banker or the mortgage broker.

SB62, s. 639 Section 639. 224.73 (2) (title) of the statutes is amended to read:

SB62,269,6 224.73 (2) (title) Restriction on mortgage loan originator.

SB62, s. 640 Section 640. 224.73 (2) of the statutes is renumbered 224.73 (2) (a) and amended to read:

SB62,269,12 224.73 (2) (a) If the division suspends or revokes a mortgage banker's or a mortgage broker's certificate of registration license, a mortgage loan originator may not act on behalf of that mortgage banker or mortgage broker during the period of suspension or revocation.

SB62, s. 641 Section 641. 224.73 (2) (b) of the statutes is created to read:

SB62,269,18 224.73 (2) (b) A mortgage loan originator may act on behalf of only the mortgage banker or mortgage broker with which that mortgage loan originator's license is associated in the records of the division, as designated under s. 224.725 (2) (d). A mortgage loan originator's license may only be associated with one mortgage banker or mortgage broker at a time.

SB62, s. 642 Section 642. 224.73 (3) (title) of the statutes is amended to read:

SB62,269,20 224.73 (3) (title) Transfer by mortgage loan originator.

SB62, s. 643 Section 643. 224.73 (3) of the statutes is renumbered 224.73 (3) (a) and amended to read:

SB62,270,2 224.73 (3) (a) A registered licensed mortgage loan originator may at any time apply, on forms and in the manner prescribed and provided by the division, to transfer employment association to another registered licensed mortgage banker or mortgage broker. The division shall promulgate rules establishing a fee for a transfer application under this subsection.

SB62, s. 644 Section 644. 224.73 (3) (b) of the statutes is created to read:

SB62,270,7 224.73 (3) (b) A mortgage loan originator may not act on behalf of a mortgage banker or mortgage broker until the mortgage loan originator's license association has been transferred to that mortgage banker or mortgage broker in the records of the division.

SB62, s. 645 Section 645. 224.73 (4) (title) of the statutes is amended to read:

SB62,270,10 224.73 (4) (title) Signature by Mortgage loan originator signatures and unique identifiers.

SB62, s. 646 Section 646. 224.73 (4) of the statutes is renumbered 224.73 (4) (a) and amended to read:

SB62,270,15 224.73 (4) (a) Every residential mortgage loan application shall be signed by a registered licensed mortgage loan originator or by a mortgage loan originator exempt from licensing under s. 224.726 (1).

SB62, s. 647 Section 647. 224.73 (4) (b) of the statutes is created to read:

SB62,270,20 224.73 (4) (b) Any person originating a residential mortgage loan shall clearly place the person's unique identifier on all residential mortgage loan application forms, solicitations, and advertisements, including business cards or Web sites, and on all other documents specified by rule of the division.

SB62, s. 648 Section 648. 224.74 (title) of the statutes is amended to read:

SB62,270,23 224.74 (title) Division's review of the operations of a mortgage loan originator, mortgage broker, or mortgage banker.

SB62, s. 649 Section 649. 224.74 (1) of the statutes is amended to read:

SB62,271,9 224.74 (1) Annual call reports; audits. (a) Annual call report. Except as provided in par. (b), each Each year, on a by the date specified by the division and in a the form required by the division, a nationwide mortgage licensing system and registry, each mortgage banker or, mortgage broker, and mortgage loan originator licensed under this subchapter shall submit to the division nationwide mortgage licensing system and registry an annual report relating to the mortgage banker's or mortgage broker's operations during its most recently completed fiscal year of condition, which shall contain such information as the nationwide mortgage licensing system and registry may require.

SB62,271,17 (b) Audit requirement. Each year, no later than 6 months following the end of its most recently completed fiscal year, a each mortgage banker or mortgage broker that qualified for registration under s. 224.72 (4) (a) 4. or (d) or (4m) (a) 3. or (b), shall submit a copy of an audit of the mortgage banker's or mortgage broker's operations during that fiscal year. An audit under this paragraph shall be conducted by an independent certified public accountant in accordance with generally accepted auditing standards. The financial statements in the audit report shall be prepared in accordance with generally accepted accounting principles.

SB62,272,6 (c) Audits requested by the division. The division may request that a mortgage banker or mortgage broker obtain an audit of the mortgage banker's or mortgage broker's operations if the division has reason to believe that the mortgage banker or mortgage broker may not have sufficient financial resources to meet its obligations to its clients or investors or to other persons directly affected by the activities conducted by the mortgage banker or mortgage broker under the certificate of registration granted license issued by the division. If the division requests an audit under this paragraph, the mortgage banker or mortgage broker shall have the audit completed no later than 90 days after the date of the division's request. The mortgage banker or mortgage broker shall submit the audit report to the division no later than 5 days after the date on which the audit is completed. An audit under this paragraph shall be conducted by an independent certified public accountant in accordance with generally accepted auditing standards. The financial statements in the audit report shall be prepared in accordance with generally accepted accounting principles.

SB62, s. 650 Section 650. 224.74 (2) (title) of the statutes is amended to read:

SB62,272,8 224.74 (2) (title) Examination and investigation.

SB62, s. 651 Section 651. 224.74 (2) (a) (title) of the statutes is repealed.

SB62, s. 652 Section 652. 224.74 (2) (a) of the statutes is renumbered 224.74 (2) (ag) (intro.) and amended to read:

SB62,272,16 224.74 (2) (ag) (intro.) The division may at any time, on its own motion or upon complaint, examine the conduct inquiries, investigations, and examinations of licensees under this subchapter, or of persons required to be licensed under or otherwise subject to the provisions of this subchapter, including doing any of the following:

SB62,272,22 1. Examining, accessing, receiving, or using any books of account, accounts, records, files, documents, or other information relating to the condition and or affairs of a mortgage banker, mortgage loan originator, or mortgage broker registered under this subchapter. The division shall prepare a report of each examination conducted under this section. As part of the examination or preparation of the report, the division may examine.

SB62,273,8 2. Interviewing or examining under oath any mortgage banker, mortgage loan originator, or mortgage broker, any of the members, officers, directors, agents, employees, contractors, or customers of the mortgage banker, mortgage loan originator, or mortgage broker. The division may require a mortgage banker, loan originator or mortgage broker who is examined under this paragraph to pay to the division a reasonable fee for the costs of conducting the examination. , or any other person whose testimony the division deems to be relevant. The division may direct, subpoena, or order the attendance of a person to provide testimony under this subdivision and may direct, subpoena, or order the person to produce books, accounts, records, files, and any other document the division deems relevant to the inquiry, investigation, or examination.

SB62, s. 653 Section 653. 224.74 (2) (ag) 3. and 4. of the statutes are created to read:

SB62,273,14 224.74 (2) (ag) 3. Direct or order any licensee under this subchapter to make or compile reports or other information, in a format directed by the division, that the division considers necessary to carry out any investigation or examination under this subchapter, including any accounting compilation or other loan transaction data, list, or information.

SB62,273,18 4. Examine, access, receive, and use any other records, documents, or other information that the division deems relevant to the inquiry, investigation, or examination, regardless of the location, possession, control, or custody of the records, documents, or information, including any of the following:

SB62,273,20 a. Criminal, civil, and administrative history information, including conviction information and nonconviction information to the extent permitted by law.

SB62,273,22 b. Personal history and experience information, including credit reports obtained from a consumer reporting agency, as defined in s. 100.54 (1) (c).

SB62, s. 654 Section 654. 224.74 (2) (ar) of the statutes is created to read:

SB62,274,10 224.74 (2) (ar) In making any investigation or examination authorized under this subchapter, the division may control access to any documents and records of the licensee or of any other person under investigation or examination. The division may take possession of the documents and records or place a person in exclusive charge of the documents and records in the place where they are usually kept. During the period of control, no person may remove or attempt to remove any of the documents and records except with the consent of the division or by court order. Unless the division has reasonable grounds to believe the documents and records have been or are at risk of being altered or destroyed for purposes of concealing a violation of this subchapter, the licensee or owner or custodian of the documents and records shall have access to the documents and records as necessary to conduct its ordinary business affairs.

SB62, s. 655 Section 655. 224.74 (2) (b) of the statutes is amended to read:

SB62,274,20 224.74 (2) (b) Confidentiality. Examination The division shall prepare a report for each investigation or examination conducted under this subsection. These reports, and correspondence regarding the these reports, are confidential, except that the division may release examination these reports and correspondence in connection with a disciplinary proceeding conducted by the division, a liquidation proceeding, or a criminal investigation or proceeding. In addition, any information from these reports or correspondence may be provided to the nationwide mortgage licensing system and registry and is not confidential to the extent specified in s. 224.728 (4) (b) and (c).

SB62, s. 656 Section 656. 224.74 (2) (c) of the statutes is created to read:

SB62,275,2 224.74 (2) (c) The division may require a mortgage banker, mortgage loan originator, or mortgage broker who is investigated or examined under this subsection to pay to the division a reasonable fee for the costs of conducting the investigation or examination. A mortgage banker, mortgage loan originator, or mortgage broker shall pay these costs to the division within 30 days after the division demands payment of these costs.

SB62, s. 657 Section 657. 224.74 (3) of the statutes is created to read:

SB62,275,5 224.74 (3) Additional division authority. To carry out the purposes of this section, the division may do any of the following:

SB62,275,8 (a) Retain attorneys, accountants, and other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of investigations or examinations.

SB62,275,12 (b) Enter into agreements or relationships with other government officials or regulatory associations to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, or information obtained under this section.

SB62,275,15 (c) Use, hire, contract, or employ public or privately available analytical systems, methods, or software to examine or investigate any licensee or other person subject to investigation or examination.

SB62,275,17 (d) Accept and rely on investigation or examination reports made by other government officials, in this state or elsewhere.

SB62,275,20 (e) Accept audit reports made by an independent certified public accountant for the licensee or another person relevant to the investigation or examination and incorporate any such audit report into any report of the division.

SB62, s. 658 Section 658. 224.75 (title) of the statutes is amended to read:

SB62,275,23 224.75 (title) Record-keeping requirements for mortgage bankers and mortgage brokers licensees.

SB62, s. 659 Section 659. 224.75 (1) (a) of the statutes is amended to read:

SB62,276,5 224.75 (1) (a) Fee record system. A mortgage banker or mortgage broker shall establish and maintain a record system which shows all fees which a mortgage banker or mortgage broker charged a residential mortgage loan applicant or a mortgagor in connection with a residential mortgage loan. The record shall show the application or disposition of those fees.

SB62, s. 660 Section 660. 224.75 (1) (b) (intro.) of the statutes is amended to read:

SB62,276,9 224.75 (1) (b) Loan application record system. (intro.) A mortgage banker or mortgage broker shall establish and maintain a record system containing all of the following information for each residential mortgage loan application:

SB62, s. 661 Section 661. 224.75 (1) (b) 6. and 7. of the statutes are created to read:

SB62,276,11 224.75 (1) (b) 6. The name of the mortgage loan originator.

SB62,276,12 7. The loan amount.

SB62, s. 662 Section 662. 224.75 (1) (c) (intro.) of the statutes is amended to read:

SB62,276,17 224.75 (1) (c) Loan application documents. (intro.) A mortgage banker or mortgage broker shall maintain for each residential mortgage loan application all of the following documents, if used by the mortgage banker or mortgage broker in connection with the residential mortgage loan application file:

SB62, s. 663 Section 663. 224.75 (1) (d) of the statutes is renumbered 224.75 (1) (d) (intro.) and amended to read:

SB62,276,22 224.75 (1) (d) Loan servicing records and documents. (intro.) A mortgage banker shall maintain for each residential mortgage loan serviced by the mortgage banker a copy of or a record of all of the following:

SB62,276,23 1. All correspondence relating to the loan.

SB62, s. 664 Section 664. 224.75 (1) (d) 2., 3., 4. and 5. of the statutes are created to read:

SB62,276,25 224.75 (1) (d) 2. All payments received from the borrower.

SB62,277,1 3. All charges assessed to the borrower's account.

SB62,277,2 4. All payments made by the mortgage banker on behalf of the borrower.

SB62,277,3 5. The unpaid balance on the borrower's account.

SB62, s. 665 Section 665. 224.75 (2) of the statutes is amended to read: