224.40(2)
(2) Financial record matching agreements. A financial institution is required to enter into an agreement with the department of workforce development in accordance with rules promulgated under
s. 49.853 (2).
224.40(3)
(3) Limited liability. A financial institution is not liable for any of the following:
224.40(3)(a)
(a) Disclosing a financial record of an individual to the county child support agency attempting to establish, modify or enforce a child support obligation of the individual.
224.40(3)(b)
(b) Disclosing information to the department of workforce development or a county child support agency pursuant to the financial record matching program under
s. 49.853.
224.40(3)(c)
(c) Encumbering or surrendering any assets held by the financial institution in response to instructions provided by the department of workforce development or a county child support agency for the purpose of enforcing a child support obligation.
224.40 History
History: 1997 a. 191.
MORTGAGE BANKERS, LOAN ORIGINATORS
AND MORTGAGE BROKERS
224.71
224.71
Definitions. In this subchapter:
224.71(1b)
(1b) "Bona fide office" of a mortgage banker or mortgage broker means an office that meets all of the following conditions:
224.71(1b)(d)
(d) Serves as an office for the transaction of business.
224.71(1b)(e)
(e) Is staffed by an individual registered under this subchapter who is an employee of the mortgage banker or mortgage broker and is not shared with another business.
224.71(1b)(f)
(f) Is separate from the offices of other entities.
224.71(1b)(g)
(g) Contains the books and records of the mortgage banker or mortgage broker, or copies of the books and records, unless the mortgage banker or mortgage broker has agreed to furnish copies of its books and records, as soon as practicable, upon the request of the division.
224.71(1c)
(1c) "Division" means the division of banking.
224.71(1g)
(1g) "Loan" means a loan secured by a lien or mortgage, or equivalent security interest, on real property.
224.71(1r)
(1r) "Loan originator" means a person who, on behalf of a mortgage banker or mortgage broker, finds a loan or negotiates a land contract, loan or commitment for a loan.
224.71(3)(a)(a) "Mortgage banker" means a person who is not excluded by
par. (b) and who does any of the following:
224.71(3)(a)1.
1. Originates loans for itself, as payee on the note evidencing the loan, or for another person.
224.71(3)(a)2.
2. Sells loans or interests in loans to another person.
224.71(3)(a)3.
3. Services loans or land contracts or provides escrow services.
224.71(3)(b)
(b) "Mortgage banker" does not include any of the following:
224.71(3)(b)1.
1. A bank, trust company, savings bank, savings and loan association, insurance company, or a land mortgage or farm loan association organized under the laws of this state or of the United States, when engaged in the transaction of business within the scope of its corporate powers as provided by law.
224.71(3)(b)2.
2. A credit union which negotiates loans or any licensee under
ch. 138 which negotiates loans or any licensed attorney who, incidental to the general practice of law, negotiates or offers or attempts to negotiate a loan.
224.71(3)(b)3.
3. Employees of persons described in
subds. 1. to
2. if the employee is performing his or her duties as an employee.
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 employee or agent of persons described in
subd. 4. if the employee or agent is performing his or her duties in making leasehold improvement loans in connection with leasing real property.
224.71(3)(b)6.
6. A person who originates, sells, or services loans only with the person's own funds for the person's own investment and the person has originated, sold or serviced no more than 4 loans during the previous 12 months.
224.71(4)(a)(a) "Mortgage broker" means a person who is not excluded by
par. (b) and who, on behalf of a loan applicant or an investor and for commission, money or other thing of value, finds a loan or negotiates a land contract, loan or commitment for a loan or engages in table funding.
224.71(4)(b)
(b) "Mortgage broker" does not include any of the following:
224.71(4)(b)1.
1. A bank, trust company, savings bank, savings and loan association, insurance company, or a land mortgage or farm loan association organized under the laws of this state or of the United States, when engaged in the transaction of business within the scope of its corporate powers as provided by law.
224.71(4)(b)2.
2. A credit union which negotiates loans or any licensee under
ch. 138 which negotiates loans or any licensed attorney who, incidental to the general practice of law, negotiates or offers or attempts to negotiate a loan.
224.71(4)(b)3.
3. Employees of persons described in
subds. 1. to
2. if the employee is performing his or her duties as an employee.
224.71(5)
(5) "Table funding" means a transaction in which a person conducts a loan closing in the person's name with funds provided by a 3rd party and the person assigns the loan to the 3rd party within 24 hours of the loan closing.
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;
1997 a. 27,
145.
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 mortgage brokers. 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 mortgage broker, use the title "mortgage banker", "loan originator" or "mortgage broker", or advertise or otherwise portray himself or herself as a mortgage banker, loan originator or mortgage broker, unless the person has been issued a certificate of registration from the division.
224.72(2)
(2) Applying for registration. A person desiring to act as a mortgage banker, loan originator or mortgage broker shall apply for a certificate of registration to the division on forms prescribed by the division and shall pay the fee specified in rules promulgated under
sub. (8). 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 "mortgage broker".
224.72(2)(c)
(c)
Social security and federal employer identification numbers. 224.72(2)(c)1.1. Except as provided in
par. (d), an application shall include the following:
224.72(2)(c)1.a.
a. In the case of an individual, the individual's social security number.
224.72(2)(c)1.b.
b. In the case of a person that is not an individual, the person's federal employer identification number.
224.72(2)(c)2.
2. The department may not disclose any information received under
subd. 1. to any person except as follows:
224.72(2)(c)2.a.
a. The department may disclose information under
subd. 1. to the department of revenue for the sole purpose of requesting certifications under
s. 73.0301.
224.72(2)(c)2.b.
b. The department may disclose information under
subd. 1. a. to the department of workforce development in accordance with a memorandum of understanding under
s. 49.857.
224.72(2)(d)1.1. If an applicant who is an individual does not have a social security number, the applicant, as a condition of applying for or applying to renew a registration under this section, shall submit a statement made or subscribed under oath or affirmation to the division that the applicant does not have a social security number. The form of the statement shall be prescribed by the department of workforce development.
224.72(2)(d)2.
2. Any certificate of registration issued or renewed in reliance upon a false statement submitted by an applicant under
subd. 1. is invalid.
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 or mortgage broker who will employ the loan originator.
224.72(4)
(4) Additional requirement for mortgage banker applicant. 224.72(4)(a)(a)
With a bona fide office. In addition to the requirements of
sub. (2), an applicant for registration as a mortgage banker who maintains a bona fide office shall do at least one of the following:
224.72(4)(a)1.
1. `Approval by federal agency.' Submit evidence which shows, to the division's satisfaction, that one or more of the following have approved the applicant as a mortgagee:
224.72(4)(a)2.
2. `File a bond.' File with the division a commercial surety bond which is in the amount of $25,000, 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, is payable to the division for the benefit of persons to whom the mortgage banker provided services as a mortgage banker, 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.
224.72(4)(a)3.
3. `Other bond or guarantee.' File a personal bond or 3rd-party guarantee in the amount of $25,000 in a form acceptable to the division and secured by one of the following forms of security:
224.72(4)(a)3.c.
c. An irrevocable bank letter of credit issued by a financial institution that is authorized to do business in this state or that is federally chartered.
224.72(4)(a)4.
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. Evidence of net worth shall include the submission of a balance sheet that is accompanied by a written statement by an independent certified public accountant attesting that he or she has reviewed the balance sheet in accordance with generally accepted accounting principles.
224.72(4)(d)
(d)
Without a bona fide office. In addition to the requirements of
sub. (2), an applicant for registration as a mortgage banker who does not maintain a bona fide office shall do all of the following:
224.72(4)(d)1.
1. `File a bond.' File with the division a commercial surety bond that is in the amount of $300,000, 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, is payable to the division for the benefit of persons to whom the mortgage banker provided services as a mortgage banker, 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.
224.72(4)(d)2.
2. `Minimum net worth.' Submit evidence that establishes, to the division's satisfaction, a minimum net worth of $250,000. Evidence of net worth shall include the submission of a balance sheet that is accompanied by a written statement by an independent certified public accountant attesting that he or she has reviewed the balance sheet in accordance with generally accepted accounting principles.
224.72(4m)
(4m) Additional requirement for mortgage broker applicant. 224.72(4m)(a)(a)
With a bona fide office. In addition to the requirements of
sub. (2), an applicant for registration as a mortgage broker who maintains a bona fide office shall do at least one of the following:
224.72(4m)(a)1.
1. `File a bond.' File with the division a commercial surety bond that is in the amount of $10,000, 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 broker, is payable to the division for the benefit of persons to whom the mortgage broker provided services as a 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.
224.72(4m)(a)2.
2. `Other bond or guarantee.' File a personal bond or 3rd-party guarantee in the amount of $10,000 in a form acceptable to the division and secured by one of the following forms of security:
