224.71(3)(b)4.
4. A landlord who, in connection with leasing real property, makes a loan to a tenant that is secured by leasehold improvements that are fixtures or improvements to real property.
224.71(3)(b)5.
5. An employe or agent of persons described in
subd. 4. if the employe or agent is performing his or her duties in making leasehold improvement loans in connection with leasing real property.
224.71 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.71;
1989 a. 45;
1995 a. 27 s.
6590; Stats. 1995 s. 224.71.
224.71 Annotation
Wisconsin's new mortgage banking law. Thompson. Wis. Law. March 1989.
224.72
224.72
Registration of mortgage bankers, loan originators and loan solicitors. 224.72(1)(a)
(a) "Net worth" means total tangible assets less total liabilities of a person, or, if the person is a natural person, total tangible assets less total liabilities exclusive of the person's principal residence and its furnishings and personal use vehicles.
224.72(1)(b)
(b) "Warehouse line of credit" means a line of credit to fund loans held for sale to other persons.
224.72(1m)
(1m) Registration required. A person may not act as a mortgage banker, loan originator or loan solicitor, use the title "mortgage banker", "loan originator" or "loan solicitor", or advertise or otherwise portray himself or herself as a mortgage banker, loan originator or loan solicitor, unless the person has been issued a certificate of registration from the department.
224.72(2)
(2) Applying for registration. A person desiring to act as a mortgage banker, loan originator or loan solicitor shall apply for a certificate of registration to the department on forms prescribed by the department and shall pay the fee specified under
sub. (8) (a). An application shall satisfy all of the following:
224.72(2)(a)
(a)
Verified. The applicant shall verify the application, and if the applicant is a partnership, limited liability company or corporation, the application shall be verified as follows:
224.72(2)(a)2.
2. By at least 2 officers of the corporation who have authority to verify the application.
224.72(2)(a)3.
3. By at least 2 members of the limited liability company.
224.72(2)(b)
(b)
Identity of partner, member or officer. If the applicant is a partnership, limited liability company or corporation, the application shall identify each partner, member or officer who will use the title "mortgage banker", "loan originator" or "loan solicitor".
224.72(3)
(3) Additional requirement for loan originator applicant. In addition to the requirements of
sub. (2), an applicant for registration as a loan originator shall include in the application the name of the mortgage banker who will employ the loan originator.
224.72(4)
(4) Additional requirement for mortgage banker applicant. In addition to the requirements of
sub. (2), an applicant for registration as a mortgage banker shall do one of the following:
224.72(4)(a)
(a)
Approval by federal agency. Submit evidence which shows, to the department's satisfaction, that the federal department of housing and urban development has approved the applicant as a mortgagee.
224.72(4)(b)
(b)
File a bond. File with the department a bond which is in the amount of $25,000, is furnished by a company authorized to do business in this state and is approved by the department.
224.72(4)(c)
(c)
Minimum net worth. Submit evidence that establishes, to the department'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.
224.72(5)(a)(a)
Loan originator and loan solicitor. Upon receiving a properly completed application for registration as a loan originator or loan solicitor and the fee specified in
sub. (8) (a), the department shall issue to the applicant a certificate of registration as a loan originator or loan solicitor.
224.72(5)(b)1.1. Upon receiving a properly completed application for registration as a mortgage banker, the fee specified [in]
sub. (8) (b) and, except as provided in
s. 224.85 (2), satisfactory evidence of compliance with
sub. (4), the department shall issue to the applicant a temporary certificate of registration as a mortgage banker. A temporary certificate of registration is valid for 6 months after the date of issuance.
224.72 Note
NOTE: The bracketed language was deleted by
1995 Wis. Act 465 without being shown as stricken. No change was intended. Corrective legislation is pending.
224.72(5)(b)2.
2. If within 6 months after the date of issuance of a temporary certificate of registration under
subd. 1. the holder of the temporary certificate of registration notifies the department that he or she is acting as a mortgage banker and pays to the department the fee specified in
sub. (8) (a), the department shall issue to the person a certificate of registration as a mortgage banker.
224.72(7)
(7) Renewal of registration. A loan originator, loan solicitor or mortgage banker shall renew a certificate of registration by submitting to the department a renewal application and the applicable renewal fee specified under
sub. (8) (c) on or before the applicable renewal date specified under
sub. (8) (c). Except as provided in
s. 224.85 (2), an applicant for renewal of a certificate of registration as a mortgage banker shall, as part of the application, refile a bond that satisfies
sub. (4) (b) or resubmit evidence that satisfies
sub. (4) (a) or
(c).
224.72(8)(a)(a) Each applicant shall pay an initial registration fee of $39 to the department. If an examination is required, the applicant shall pay an examination fee, in an amount set by the department, in addition to the initial registration fee.
224.72(8)(b)
(b) An applicant for registration as a mortgage banker shall pay a temporary registration fee of $10 to the department.
224.72(8)(c)
(c) The renewal dates and renewal fees for registrations are as follows:
224.72(8)(c)1.
1. Loan originator: January 1 of each odd-numbered year; $94.
224.72(8)(c)2.
2. Loan solicitor: January 1 of each odd-numbered year; $105.
224.72(8)(c)3.
3. Mortgage banker: January 1 of each odd-numbered year; $486.
224.72(8)(d)
(d) The fee for a transfer of a loan originator registration is $5.
224.72 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.72;
1989 a. 45;
1991 a. 39;
1993 a. 112;
1995 a. 27 ss.
6210,
6527m,
6528m,
6535m,
6591 to
6593; Stats. 1995 s. 224.72;
1995 a. 465.
224.73
224.73
Relationship between loan originator and mortgage banker. 224.73(1)(1)
Responsibility for loan originator. A mortgage banker is responsible for, and shall supervise the acts of, a loan originator who registers under
s. 224.72 (3) as an employe of the mortgage banker or a loan originator or any other person who otherwise acts on behalf of the mortgage banker.
224.73(2)
(2) Restriction on loan originator. If the department suspends or revokes a mortgage banker's certificate of registration, a loan originator may not act on behalf of that mortgage banker during the period of suspension or revocation.
224.73(3)
(3) Transfer by loan originator. A registered loan originator may at any time apply, on forms prescribed and provided by the department, to transfer employment to another registered mortgage banker. The fee for transfer is specified under
s. 224.72 (8) (d) and is payable when the loan originator files the application.
224.73 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.73;
1991 a. 39;
1995 a. 27 s.
6594; Stats. 1995 s. 224.73.
224.74
224.74
Department's review of the operations of a loan solicitor, loan originator or mortgage banker. 224.74(1)
(1)
Audit of mortgage banker's or loan solicitor's operations. A mortgage banker or loan solicitor shall submit a copy of an annual audit of the mortgage banker's or loan solicitor's operations to the department within 20 days after the audit is completed.
224.74(2)(a)(a)
Conduct of examination and preparation of report. The department may at any time, on its own motion or upon complaint, examine the books of account, records, condition and affairs of a mortgage banker, loan originator or loan solicitor registered under this subchapter. The department shall prepare a report of each examination conducted under this section. As part of the examination or preparation of the report, the department may examine under oath any of the members, officers, directors, agents, employes or customers of the mortgage banker, loan originator or loan solicitor. The department may require a mortgage banker, loan originator or loan solicitor who is examined under this paragraph to pay to the department a fee for the costs of conducting the examination. If the department requires a fee under this paragraph, the department shall establish the amount of the fee by rule.
224.74(2)(b)
(b)
Confidentiality. Examination reports and correspondence regarding the reports are confidential, except that the secretary may release examination reports and correspondence in connection with a disciplinary proceeding conducted by the department, a liquidation proceeding or a criminal investigation or proceeding.
224.74 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.74;
1991 a. 39;
1995 a. 27 s.
6595; Stats. 1995 s. 224.74.
224.75
224.75
Record-keeping requirements for mortgage bankers and loan solicitors. 224.75(1)
(1)
Required records; loan documents. 224.75(1)(a)(a)
Fee record system. A mortgage banker or loan solicitor shall establish and maintain a record system which shows all fees which a mortgage banker charged a mortgage loan applicant and the application or disposition of those fees.
224.75(1)(b)
(b)
Loan application record system. A mortgage banker or loan solicitor shall establish and maintain a record system containing all of the following information for each mortgage loan application:
224.75(1)(b)4.
4. The disposition of the application and the reason for the particular disposition.
224.75(1)(c)
(c)
Loan application documents. A mortgage banker or loan solicitor shall maintain for each mortgage loan application all of the following documents, if used by the mortgage banker or loan solicitor in connection with the mortgage loan application file:
224.75(1)(c)9.
9. Any other documents, records or forms shown to or signed by a loan applicant.
224.75(2)
(2) Period of record retention. A mortgage banker or loan solicitor shall keep for at least 25 months copies of all deposit receipts, canceled checks, trust account records, the records which a mortgage banker or loan solicitor maintains under
sub. (1) (c) and other relevant documents or correspondence received or prepared by the mortgage banker or loan solicitor in connection with a loan or loan application. The retention period begins on the date the loan is closed or, if the loan is not closed, the date of loan application. The mortgage banker or loan solicitor shall make the records available for inspection and copying by the department. If the records are not kept within this state, the mortgage banker or loan solicitor shall, upon request of the department, promptly send exact and complete copies of requested records to the department.
224.75(3)
(3) Contents of credit and appraisal reports. 224.75(3)(a)(a)
Credit report. If a mortgage banker or loan solicitor charges a loan applicant a separate fee for a credit report, the credit report shall consist, at a minimum, of a written statement indicating the name of the credit reporting agency which investigated the credit history of the applicant.
224.75(3)(b)
(b)
Appraisal report. If a mortgage banker or loan solicitor charges a loan applicant a separate fee for an appraisal report, the appraisal report shall consist, at a minimum, of a written statement indicating the appraiser's opinion of the value of the property appraised for mortgage loan purposes, the basis for that opinion and the name of the person who conducted the appraisal.
224.75(4)
(4) Responsibility for forms. A mortgage banker or loan solicitor is responsible for the preparation and correctness of all entries on forms, documents and records which are under the mortgage banker's or loan solicitor's control and which are not dependent on information provided by the loan applicant or a 3rd party.
224.75(5)
(5) Accounting practices. A mortgage banker or loan solicitor shall maintain its books and records in accordance with generally accepted accounting principles.
224.75 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.75;
1995 a. 27 s.
6596; Stats. 1995 s. 224.75.
224.76
224.76
Mortgage banker, loan originator and loan solicitor trust accounts. A mortgage banker, loan originator or loan solicitor shall deposit in one or more trust accounts all funds other than nonrefundable fees which it receives on behalf of any person, pending disbursement of the funds in accordance with instructions from the person on whose behalf the funds are deposited. A mortgage banker or loan solicitor may maintain trust accounts in a bank, savings bank, savings and loan association or credit union which is authorized to do business in this state or which is federally chartered. The mortgage banker or loan solicitor shall notify the department of the location of its trust accounts and shall authorize the department to examine and audit any trust account as the department considers it necessary.
224.76 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.76;
1995 a. 27 s.
6597; Stats. 1995 s. 224.76.
224.77
224.77
Discipline of mortgage bankers, loan originators and loan solicitors. 224.77(1)
(1)
Prohibited conduct. The department may revoke, suspend or limit the certificate of registration of a mortgage banker, loan originator or loan solicitor, or reprimand a mortgage banker, loan originator or loan solicitor, if it finds that the mortgage banker, loan originator or loan solicitor did any of the following:
224.77(1)(a)
(a) Made a material misstatement in an application for registration, or in information furnished to the department.
224.77(1)(b)
(b) Made a substantial misrepresentation in the course of practice injurious to one or more of the parties to a transaction.
224.77(1)(c)
(c) Made a false promise that influences, persuades or induces a client to act to his or her injury or damage.
224.77(1)(d)
(d) Pursued a continued and flagrant course of misrepresentation, or made false promises, whether directly or through agents or advertising.
224.77(1)(e)
(e) Acted for more than one party in a transaction without the knowledge and consent of all parties on whose behalf the mortgage banker, loan originator or loan solicitor is acting.
224.77(1)(f)
(f) Accepted a commission, money or other thing of value for performing an act as a loan originator unless the payment is from a mortgage banker who is registered under
s. 224.72 (3) as employing the loan originator.
224.77(1)(g)
(g) As a loan originator, represented or attempted to represent a mortgage banker other than the mortgage banker who is registered under
s. 224.72 (3) as employing the loan originator.
224.77(1)(h)
(h) Failed, within a reasonable time, to account for or remit any moneys coming into the mortgage banker's, loan originator's or loan solicitor's possession which belong to another person.
224.77(1)(i)
(i) Demonstrated a lack of competency to act as a mortgage banker, loan originator or loan solicitor in a way which safeguards the interests of the public.
224.77(1)(j)
(j) Paid or offered to pay a commission, money or other thing of value to any person for acts or services in violation of this subchapter.
224.77(1)(k)
(k) Violated any provision of this subchapter,
ch. 138 or any federal or state statute, rule or regulation which relates to practice as a mortgage banker, loan originator or loan solicitor.
224.77(1)(L)
(L) Engaged in conduct which violates a standard of professional behavior which, through professional experience, has become established for mortgage bankers, loan originators or loan solicitors.
