224.77(3)(a)(a)
Orders to prevent or correct actions. The division may issue general and special orders necessary to prevent or correct actions by a mortgage banker, loan originator or mortgage broker that constitute cause under this section for revoking, suspending or limiting a certificate of registration.
224.77(3)(b)
(b)
Types of special orders. Special orders may direct a mortgage banker, loan originator or mortgage broker to cease and desist from engaging in a particular activity or may direct the mortgage banker, loan originator or mortgage broker to refund or remit to a loan applicant or borrower amounts that the mortgage banker, loan originator or mortgage broker got from actions which constitute cause under this section for revoking, suspending or limiting a certificate of registration.
224.77(3)(c)
(c)
Judicial review. Orders of the division are subject to review as provided in
ch. 227.
224.77(3m)
(3m) Hearing rights for registration denial, revocation or suspension. A person whose certificate of registration has been denied, revoked or suspended under this section may request a hearing under
s. 227.44 within 30 days after the date of denial, revocation or suspension of the certificate of registration. The division may appoint a hearing examiner under
s. 227.46 to conduct the hearing.
224.77(4)
(4) Period of disciplinary action; ineligibility for registration. 224.77(4)(a)(a)
Period. Except as provided in
par. (b), the division shall determine in each case the period that a revocation, suspension or limitation of a certificate of registration is effective.
224.77(4)(b)1.1. Except as provided in
subd. 2., if the division denies or revokes a certificate of registration under
sub. (1), the person is not eligible for a certificate of registration until the expiration of a period determined in each case by the division.
224.77(4)(b)2.
2. If the division revokes a certificate of registration under
sub. (1) (p) or
(q), the person is not eligible for a certificate of registration until 5 years after the effective date of the revocation.
224.77(5)
(5) Penalties for certain discriminatory conduct. 224.77(5)(a)(a) Mandatory revocation or suspension. Notwithstanding
sub. (1) (intro.) and
(4), if the division finds that a mortgage banker, loan originator or mortgage broker has violated
sub. (1) (p) or
(q), the division shall:
224.77(5)(a)1.
1. For the first offense, suspend the registration of the mortgage banker, loan originator or mortgage broker for not less than 90 days.
224.77(5)(a)2.
2. For the 2nd offense, revoke the registration of the mortgage banker, loan originator or mortgage broker.
224.77(6)
(6) Restriction or suspension of registration. The department shall restrict or suspend the registration of a mortgage banker, loan originator or mortgage broker if the registrant is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development 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. A registrant whose registration is restricted or suspended under this subsection is entitled to a notice and hearing only as provided in a memorandum of understanding entered into under
s. 49.857 and is not entitled to any other notice or hearing under this section.
224.77(7)
(7) Revocation for liability for delinquent taxes. The department shall revoke the certificate of registration of a mortgage banker, loan originator or mortgage broker if the department of revenue certifies under
s. 73.0301 that the registrant is liable for delinquent taxes. A registrant whose certificate of registration is revoked under this subsection for delinquent taxes is entitled to a notice under
s. 73.0301 (2) (b) 1. b. and a hearing under
s. 73.0301 (5) (a) but is not entitled to any other notice, hearing or review under this section.
224.77(8)
(8) Voluntary surrender. A mortgage banker, loan originator or mortgage broker may voluntarily surrender a registration to the division, but the division may refuse to accept the surrender if the division has received allegations of unprofessional conduct against the mortgage banker, loan originator or mortgage broker. The division may negotiate stipulations in consideration for accepting the surrender of registration.
224.77 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.77;
1993 a. 112;
1995 a. 27 ss.
6598 to
6600; Stats. 1995 s. 224.77;
1997 a. 145,
191,
237;
1999 a. 32,
82;
1999 a. 150 s.
672.
224.77 Cross-reference
Cross Reference: See also s.
DFI-Bkg 43.01, Wis. adm. code.
224.77 Annotation
Failure to comply with an administrative rule requiring agreements by loan solicitors to be in writing did not cause an otherwise valid agreement to be unenforceable under this section. Felland v. Sauey, 2001 WI App 257,
248 Wis. 2d 963,
637 N.W.2d 403.
224.78
224.78
Fee splitting. A mortgage banker, loan originator or mortgage broker may not pay a person who is not registered under this subchapter a commission, money or other thing of value for performing an act as a mortgage banker, loan originator or mortgage broker.
224.78 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.78;
1995 a. 27 s.
6601; Stats. 1995 s. 224.78;
1997 a. 145.
224.80
224.80
Penalties and private cause of action. 224.80(1)
(1)
Penalties. A person who violates
s. 224.72 (1m) may be fined not more than $1,000 or imprisoned for not more than 6 months or both. The district attorney of the county where the violation occurs shall enforce the penalty under this subsection on behalf of the state.
224.80(2)
(2) Private cause of action. A person who is aggrieved by an act which is committed by a mortgage banker, loan originator or mortgage broker and which is described in
s. 224.77 (1) may recover all of the following in a private action:
224.80(2)(a)
(a) An amount equal to the greater of the following:
224.80(2)(a)1.
1. Twice the amount of the cost of loan origination connected with the transaction, except that the liability under this subdivision may not be less than $100 nor greater than $1,000 for each violation.
224.80(2)(a)2.
2. The actual damages, including any incidental and consequential damages, which the person sustained because of the violation.
224.80(2)(b)
(b) The aggregate amount of costs and expenses which the court determines were reasonably incurred by the person in connection with the action, together with reasonable attorney fees, notwithstanding
s. 814.04 (1).
224.80 History
History: 1987 a. 359;
1987 a. 403 ss.
182,
256; Stats. 1987 s. 440.80;
1989 a. 45;
1995 a. 27 s.
6602; Stats. 1995 s. 224.80;
1997 a. 145.
224.81
224.81
Limitation on actions for commissions and other compensation. A person who is engaged in the business or acting in the capacity of a mortgage banker, loan originator or mortgage broker in this state may not bring or maintain an action in this state to collect a commission, money or other thing of value for performing an act as a mortgage banker, loan originator or mortgage broker without alleging and proving that the person was registered under this subchapter as a mortgage banker, loan originator or mortgage broker when the alleged cause of action arose.
224.81 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.81;
1995 a. 27 s.
6603; Stats. 1995 s. 224.81;
1997 a. 145.
224.82
224.82
Compensation presumed. In a prosecution arising from a violation of this subchapter, proof that a person acted as a mortgage banker, loan originator or mortgage broker is sufficient, unless rebutted, to establish that compensation was received by, or promised to, that person.
224.82 History
History: 1987 a. 359;
1987 a. 403 s.
182; Stats. 1987 s. 440.82;
1995 a. 27 s.
6604; Stats. 1995 s. 224.82;
1997 a. 145.
NONDEPOSITORY SMALL BUSINESS LENDERS
224.90
224.90 Definitions. In this subchapter:
224.90(1)
(1) "Division" means the division of banking.
224.90(2)
(2) "In control" means any of the following:
224.90(2)(a)
(a) Owning 10% or more of the outstanding voting stock of a nondepository lender.
224.90(2)(b)
(b) Possessing, directly or indirectly, alone or in concert with others, the power to control or vote 10% or more of the outstanding voting stock of a nondepository lender or to elect or control the election of a majority of the board of directors of a nondepository lender.
224.90(3)
(3) "Licensee" means a lender licensed under this subchapter.
224.90(4)
(4) "Nondepository lender" means a commercial small business lender that participates in the loan guarantee program of the U.S. small business administration described in
13 CFR 120.2 (a) and that provides financial assistance to small businesses that qualify for financial assistance pursuant to
15 USC 636 (a). "Nondepository lender" does not include a bank, credit union, savings and loan association or savings bank.
224.90 History
History: 1999 a. 9.
224.92
224.92
License required. No person may engage in business as a nondepository lender in this state without a license issued under this subchapter.
224.92 History
History: 1999 a. 9.
224.923
224.923
License application. An application for a license under this subchapter shall be made to the division in writing on a form to be prescribed by the division. An application for a license under this subchapter shall state the full name and business address of the applicant and each officer, director and person in control of the applicant. The application also shall contain the applicant's federal employer identification number. In addition, the application shall contain the applicant's business plan, 3 years of detailed financial projections and other relevant information, all as prescribed by the division.
224.923 History
History: 1999 a. 9.
224.927
224.927
Disclosure of certain application information. The division may not disclose an applicant's federal employer identification number received under
s. 224.923, except as follows:
224.927(1)
(1) The division may disclose the information to the department of revenue for the sole purpose of requesting certification under
s. 73.0301.
224.927(2)
(2) The division may disclose the information to the department of workforce development in accordance with a memorandum of understanding under
s. 49.857.
224.927 History
History: 1999 a. 9.
224.93
224.93
License approval. After a review of information regarding the directors, officers and controlling persons of the applicant for a license, a review of the applicant's business plan, including at least three years of detailed financial projections and other information considered relevant by the division, the division may approve an application for a license if the division determines that all of the following conditions are met:
224.93(1)
(1) The applicant has at least $500,000 in capital and the amount of capital is adequate for the applicant to transact business as a nondepository lender.
224.93(2)
(2) Each director, officer and person in control of the applicant is of good character and sound financial standing; the directors and officers of the applicant are competent to perform their functions with respect to the applicant and the directors and officers of the applicant are collectively adequate to manage the business of the applicant as a nondepository lender.
224.93(3)
(3) The business plan of the applicant will be honestly and efficiently conducted in accordance with the intent and purpose of this subchapter.
224.93(4)
(4) The proposed activity of the applicant possesses a reasonable prospect for success.
224.93(5)
(5) The applicant has paid to the division the application fee prescribed by the division, together with the actual cost incurred by the division in investigating the application.
224.93 History
History: 1999 a. 9.
224.935
224.935
Expiration of license. 224.935(1)
(1)
Generally. Except as provided under
sub. (2), a license issued under this subchapter expires on the June 30 following the date on which the license was issued.
224.935(2)
(2) Change in control of licensee. A change in the identity or number of individuals that are in control of a licensee terminates the licensee's license under this subchapter, unless the licensee applies to the division for and receives a renewal of the license no later than 15 days after the change in control.
224.935 History
History: 1999 a. 9.
224.94
224.94
Renewal of license. Except as provided under
s. 224.935 (2), a licensee shall renew its license by submitting to the division a renewal application and the renewal fee as prescribed by the division not less than 60 days before the date on which the license expires. A renewal application is subject to the same criteria as the criteria for approval of an original license.
224.94 History
History: 1999 a. 9.
224.95
224.95
Denial of or disciplinary action relating to license. 224.95(1)(1)
Mandatory denial. The division shall deny an application for issuance or renewal of a license under this subchapter if any of the following applies:
224.95(1)(a)
(a) The applicant has failed to provide its federal employer identification number under
s. 224.923.
224.95(1)(b)
(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 is entitled to a notice under
s. 73.0301 (2) (b) 1. b. and a hearing under
s. 73.0301 (5) (a) but is not entitled to a notice or hearing under
sub. (4).
224.95(1)(c)
(c) The applicant is an individual who has failed to comply, after appropriate notice, with a subpoena or warrant issued by the department of workforce development 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 application for issuance or renewal of a license is denied under this paragraph is entitled to a notice and a hearing under
s. 49.857 but is not entitled to a notice or hearing under
sub. (4).
224.95(2)
(2) Discretionary denial or disciplinary action. The division may deny an application for issuance or renewal of a license under this subchapter or may revoke, suspend or limit a license issued under this subchapter if the division finds that the applicant or nondepository lender did any of the following:
224.95(2)(a)
(a) Made a material misstatement in an application for issuance or renewal of a license issued under this subchapter or in information provided to the division.
224.95(2)(b)
(b) Demonstrated a lack of competency to act as a nondepository lender.
224.95(2)(c)
(c) Violated any provision of this subchapter or any rule of the division.
224.95(3)
(3) Disciplinary orders. The division may issue general or special orders necessary to prevent or correct actions by a nondepository lender that constitute cause under this section for revoking, suspending or limiting a license.
224.95(4)
(4) Appeal of denial or disciplinary action. A person whose application for issuance or renewal of a license under this subchapter has been denied or whose license has been revoked, suspended or limited under this section may request a hearing under
s. 227.42 within 30 days after the date of denial, revocation, suspension or limitation. Failure of a person to request a hearing within the time provided under this subsection is a waiver of the person's right to a hearing on the denial, revocation, suspension or limitation.
224.95 History
History: 1999 a. 9.
224.96
224.96
Required loan loss reserve. Each licensee shall provide for a loan loss reserve sufficient to cover projected loan losses that are not guaranteed by the U.S. government or any agency of the U.S. government.
224.96 History
History: 1999 a. 9.
224.97
224.97
Division review of nondepository lender operations. The division may, at any reasonable time, examine the books of account, records, condition and affairs of a nondepository lender licensed under this subchapter. The division shall examine the books of account, records, condition and affairs of every nondepository lender licensed under this subchapter at least once during every 12 month period. The division shall prepare a report of each examination conducted under this section. As part of an examination under this section or as part of the preparation of an examination report, the division may examine under oath any person in control, officer, director, agent, employee or customer of the nondepository lender. The division may require a nondepository lender that is examined under this section to pay to the division a reasonable fee for the costs of conducting the examination.
224.97 History
History: 1999 a. 9.
224.98
224.98
Powers of licensee. A licensee may do any of the following:
224.98(2)
(2) Participate in any other government program for which the licensee is eligible and which has as its function the provision or facilitation of financing or management assistance to business firms.
224.98 History
History: 1999 a. 9.
224.985
224.985
Required records and reports. 224.985(1)
(1)
Record keeping. A licensee shall keep books, accounts, and other records in such a form and manner as required by rule of the division. These records shall be kept at a location and shall be preserved for a length of time as prescribed by rule of the division.
224.985(2)
(2) Annual report. Not more than 90 days after the close of a licensee's fiscal year or upon request of the division, every licensee shall file with the division a report containing all of the following:
