45.72
45.72
Powers of the department. In respect to loans made by and mortgages and mortgage notes executed or properties mortgaged to the department or to authorized lenders under this subchapter or s.
45.352, 1971 stats., the department may:
45.72(1)
(1) Execute necessary instruments.
45.72(2)
(2) Collect interest and principal.
45.72(3)
(3) Compromise indebtedness due on mortgage notes.
45.72(5)
(5) Exercise the rights of a mortgagee generally including but not limited to, the right to:
45.72(5)(a)
(a) Acquire or take possession of such mortgaged property and in so doing the department may accept voluntary surrender and conveyance of title to such property in full satisfaction of a mortgage debt or may bid for and purchase such property at a sheriff's sale or replevin such property.
45.72(5)(b)
(b) Commit itself to execute and execute subordination agreements, partial releases and other necessary instruments.
45.72(5)(c)
(c) Set up and follow procedures to assure proper disbursement of the proceeds of insurance checks, share drafts or other drafts covering damages sustained on mortgaged properties.
45.72(5)(d)
(d) Pay the principal and interest on any obligations incurred in connection with such mortgages on such property including real estate taxes, insurance premiums, attorney fees and obligations created as a result of its exercise of powers vested in it under this subchapter.
45.72(5)(e)
(e) Exercise such other powers as may be necessary for the efficient administration of this subchapter.
45.72(6)
(6) In contracts entered into pursuant to
s. 45.79 (5) (a) 1., empower authorized lenders to exercise any of the powers vested in the department under this subchapter.
45.72(7)
(7) Manage, operate, lease, exchange, sell and otherwise convey real property.
45.72(8)
(8) Grant easements in any real property acquired by the department.
45.72(9)
(9) Upon application by the mortgagor and agreement in writing executed by the parties:
45.72(9)(a)
(a) Extend the time in which the obligation under a mortgage note or any part thereof must be paid.
45.72(9)(b)
(b) Reduce the amounts of monthly installments and provide such other terms and conditions relative to time and manner of repaying the obligation as it deems necessary or reasonable.
45.72 History
History: 1973 c. 208,
333;
1983 a. 368.
45.73
45.73
Rule-making responsibility. The department shall promulgate rules and devise forms necessary for the efficient administration of this subchapter.
45.73 Cross-reference
Cross Reference: See also ch.
VA 4, Wis. adm. code.
45.73 Annotation
In making housing loans, the department may rely on fixed standards as to applicants' needs. When applications on hand exceed available funds, loans should be made to the most needy applicants. 62 Atty. Gen. 66.
45.74
45.74
Eligible persons; disqualifying factors. Except as provided under
s. 45.745, no person may receive a loan under this subchapter if the department or authorized lender determines that any of the following applies:
45.74(2)
(2) Ability to pay. The person will be incurring an excessive indebtedness in view of the person's income.
45.74(6)
(6) Delinquent support payments. The person is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses, as evidenced by the appearance of the person's name on the statewide support lien docket under
s. 49.854 (2) (b), unless the person provides the department or authorized lender with one of the following:
45.74(6)(a)
(a) A repayment agreement that the person has entered into, that has been accepted by the county child support agency under
s. 59.53 (5) and that has been kept current for the 6-month period immediately preceding the date of the application.
45.74(6)(b)
(b) A statement that the person is not delinquent in child support or maintenance payments and does not owe past support, medical expenses or birth expenses, signed by the department of workforce development or its designee within 7 working days before the date of the application.
45.74(6m)
(6m) Previous loans. The person has a previous loan outstanding under this subchapter, unless any of the following apply:
45.74(6m)(b)
(b) The previous loan has been assumed by an eligible person with the department's approval upon the sale of the residence securing the previous loan.
45.74(7)
(7) Amount of loan limitation. The amount of the loan exceeds 2.5 times the median price of a home in this state. The department shall establish the median price of a home in this state for each fiscal year by using the most recent housing price index generated by the Wisconsin Realtors Association before July 1.
45.74 History
History: 1973 c. 208;
1975 c. 26,
224;
1977 c. 29,
381,
418,
446;
1979 c. 220,
221,
355;
1987 a. 9,
27,
319,
399;
1989 a. 31;
1991 a. 39;
1993 a. 16,
254;
1995 a. 255,
404;
1997 a. 27,
115,
121,
237;
1999 a. 9,
63.
45.74 Cross-reference
Cross Reference: See also s.
VA 1.12, Wis. adm. code.
45.745
45.745
Loans to disabled veterans; qualifying factors. A veteran who is receiving 100% disability compensation from the U.S. department of veterans affairs under
38 USC 301 to
315,
331 to
337 and
350 to
362 due to a permanent and total service-connected disability may receive a loan under this subchapter if the department or authorized lender determines that all of the following apply:
45.745(2)
(2) Ability to pay. The person will not be incurring an excessive indebtedness in view of the person's income.
45.745(6)
(6) Previous loans. If the person has a previous loan outstanding under this subchapter, any of the following apply:
45.745(6)(b)
(b) The previous loan has been assumed by an eligible person with the department's approval upon the sale of the residence securing the previous loan.
45.76
45.76
Eligible uses for loan proceeds. 45.76(1)
(1)
Mortgage loan program. An authorized lender may, with the approval of the department, make loans under
s. 45.79 for:
45.76(1)(a)1.
1. A manufactured home or real property on which a manufactured home is to be situated, but only if the veteran has available and applies on the total cost of the property, an amount equivalent to at least 15% of the total cost. This 15% requirement does not apply to a person who qualifies under
s. 45.745.
45.76(1)(b)
(b)
Construction. Construction of a home, including housing accommodation and garage, and the acquisition of land therefor.
45.76(1)(c)
(c)
Home improvements. A loan of not more than $25,000 to improve a home, including the construction of a garage or the removal or other alteration of existing improvements that were made to improve the accessibility of a home for a disabled individual.
45.76(1)(d)1.1. Refinancing the balance due on an indebtedness which was incurred for a use designated in
pars. (a) to
(c) if the balance owing on the indebtedness does not exceed the amount requested in a prior loan application from the veteran and if the indebtedness was incurred by the veteran after a prior loan application from the veteran was denied by the department. Refinancing loans may be made under this paragraph only if the board reverses the department's denial after determining that the prior application met requirements in effect on the date of the denial and that the loan application should have been approved.
45.76(1)(d)2.
2. Refinancing the balance due on a construction period loan, bridge loan or other financing if the financing was used for a purpose designated in
par. (b) and has a term of 24 months or less.
45.76(3)(a)(a)
Cost and value of property. No loan may be made under this subchapter if the department or authorized lender determines that the total cost of the property exceeds its market value unless the amount by which the cost of the property exceeds its market value is paid by the borrower in addition to the downpayment required by
s. 45.77. This paragraph does not apply to a person who qualifies under
s. 45.745.
45.76(3)(b)
(b)
Certificate of use. The department or authorized lender may require any person applying for a loan under this subchapter to certify that:
45.76(3)(b)1.
1. The residence to be purchased, constructed, improved or refinanced with financial assistance under this subchapter will be used as the person's principal residence.
45.76(3)(b)2.
2. Unless other prepayment provisions are permitted under
s. 45.78 (2), the loan made under this subchapter will be repaid in full upon sale of the residence or any of the person's interest in it. A divorce judgment divesting the veteran's interest in the residence or a quitclaim deed executed under the judgment does not constitute a sale.
45.77
45.77
Veteran's contribution. No loan may be made under this subchapter unless, in addition to the closing costs that the veteran may be required to pay, the veteran has available, and applies on the total cost of the property for which the loan is made, an amount equivalent to at least 5% of the total cost. The amount may consist of money or other assets, including equity in real property. This section does not apply to a person who qualifies under
s. 45.745.
45.78
45.78
Manner of repayment. 45.78(1)(1)
Monthly payments; right to prepay. Each loan made under this subchapter shall be repaid in monthly installments with the option to pay additional sums on any installment paying day.
45.78(2)
(2) Acceleration provisions. All loans made under this subchapter shall be repaid in full upon sale of the residence securing the loan or any interest in such residence, unless:
45.78(2)(a)
(a) The sale is to another eligible person;
45.78(2)(b)
(b) The department or authorized lender servicing the loan determines that acceleration will jeopardize collection of the loan balance; or
45.78(2)(c)
(c) The loan is a guaranteed loan which is assumed or paid in regular monthly installments under
s. 45.79 (10) (a).
45.78 History
History: 1973 c. 208;
1979 c. 155.
45.79
45.79
Mortgage loan program. 45.79(1)
(1)
Loans authorized. An authorized lender or a county veterans' service officer may, as agent for and with the approval of the department, make loans to eligible persons for qualified purposes in the manner provided under this section.
45.79(2)(a)(a)
Application and content. Applications for loans under this section for a purpose specified in
s. 45.76 (1) (a),
(b) or
(d) shall be made to an authorized lender and applications for loans under this section for a purpose specified under
s. 45.76 (1) (c) shall be made to a county veterans' service officer on forms approved by the department and signed by the applicant. If the applicant is married and not separated or in the process of obtaining a divorce, the applicant's spouse also shall sign the application.
45.79(2)(b)
(b)
Certification by department. The applicant shall apply to the department through a county veterans' service officer for certification of eligibility as a veteran.
45.79(3)(a)(a)
Mortgage or guarantor required. Each loan made under this section, except a loan of $3,000 or less for a purpose specified under
s. 45.76 (1) (c), shall be evidenced by a promissory installment note and secured by a mortgage on the real estate in respect to which the loan is granted. A loan of $3,000 or less made for a purpose specified under
s. 45.76 (1) (c) shall be evidenced by a promissory installment note and shall be secured by a guarantor or by a mortgage on the real estate in respect to which the loan is granted. Any loan having as its source funds provided through
sub. (6) (a) and secured by a mortgage shall have the mortgage name the department as mortgagee and payee. Any loan having as its source funds provided through
sub. (6) (b) and secured by a mortgage shall have the mortgage name the authorized lender involved as mortgagee and payee, and such mortgage and note shall be assigned by the authorized lender to the authority immediately upon execution. A mortgage securing a loan made for a purpose specified in
s. 45.76 (1) (a),
(b) or
(d) must have priority over all liens against the mortgaged premises and the buildings and improvements thereon, except tax and special assessment liens filed after the recording of the mortgage. A mortgage securing a loan made for a purpose specified under
s. 45.76 (1) (c) is acceptable if the applicant can establish a minimum equity in the property as established by the department by rule.
45.79(3)(b)
(b)
Casualty insurance coverage. Mortgages given to secure loans under this section shall provide for adequate fire and extended coverage insurance. Policies providing such insurance coverage shall name the authorized lender or the department as an insured.
45.79(4)(a)(a) The board shall determine the interest rate on loans made under this section. Except as provided in
sub. (10), the interest rate so determined may not be increased during the term of the loan. Except as provided in
sub. (10), the interest rate shall be as low as possible but shall be sufficient to fully pay all expenses and to provide reserves which are reasonably expected to be required in the judgment of the board in accordance with
par. (b) and
sub. (7) (a) 3.
45.79(4)(b)1.1. The board shall select and implement the methods of insuring against losses arising from delinquency and default in the repayment of loans under
sub. (6) (a) and shall select and implement the methods of managing and selling any property securing loans funded under
sub. (6) (a).
45.79(4)(b)2.
2. The board shall charge or cause to be charged to borrowers all costs for insuring the program under
subd. 1.
45.79(4)(b)3.
3. Moneys collected under
subd. 2. and that are held by the state shall be deposited, reserved and expended as provided in
sub. (7) (a) 3.
45.79(5)(a)(a)
Additional authorized activities of the department. The department may:
45.79(5)(a)1.
1. Enter into contracts with authorized lenders throughout this state authorizing such lenders to process applications and close and service loans made under this section. The contracts shall include the responsibilities of the authorized lender with respect to credit evaluations, financial eligibility determinations, valuation of the home for which the loan is to be made, collection procedures in the event of delinquent loan repayments and other functions which the department may require. Such contracts shall authorize the lender to retain an amount from the monthly payments for servicing loans made by this section. The rate of the service fee shall not exceed a maximum rate established by the department with the lender in accordance with current practices under similar programs, and shall be stated in the contracts. A maximum length of time between receipt of monthly mortgage payments by the lender and transmittal of such payments to the state or the authority shall be established by the department and specified in the contracts.
45.79(5)(a)2.
2. Commit to advance and advance funds in the full amount of any mortgage securing a purchase loan to be made by an authorized lender in accordance with the terms of this section.
45.79(5)(a)3.
3. Commit to advance and advance in installments up to the full amount of any mortgage securing a construction loan made by an authorized lender, to provide for the purchase and improvement of a lot and the completion of the construction for which the loan is to be made, under the terms of this section.
45.79(5)(a)4.
4. Mail checks, share drafts or other drafts or otherwise transfer or arrange for transfer of funds, to authorized lenders not sooner than 7 days prior to proposed closing or disbursement dates.
45.79(5)(a)5.
5. Designate and maintain a current list of lenders authorized to make or service loans under this section. The department shall promulgate rules establishing standards for and governing the performance of authorized lenders in making and servicing loans under this section and shall periodically monitor such performance. The department shall promulgate rules to provide for the removal from its list of authorized lenders of any lender that makes an excessive number of errors on loan applications processed under
subd. 1. The department may summarily remove from its list of authorized lenders any lender that indicates it does not wish to participate in the program and after hearing on notice remove from its list of authorized lenders any lender that fails to conform with the rules of the department governing such performance, and may refuse to permit a lender so removed to make or service any loan under this section until such time as the department is satisfied that the lender will conform with such rules.
45.79(5)(a)6.
6. Require borrowers to make monthly escrow payments to be held by the authorized lender or the department for real estate taxes and casualty insurance premiums. The authorized lender or, if the department holds the payments in escrow, the department shall pay all of the amounts due for real estate taxes and casualty insurance premiums, even if the amount held in escrow is insufficient to cover the amounts due. If the amount held in escrow is insufficient to cover the amounts due, the authorized lender or, if the department holds the payments in escrow, the department shall recover from the borrower, after paying the amounts due under this subdivision, an amount equal to the difference between the amounts paid and the amount held in escrow. If the amount held in escrow is more than the amounts due, the authorized lender or, if the department holds the payments in escrow, the department shall refund to the borrower, after paying the amounts due under this subdivision, an amount equal to the difference between the amount held in escrow and the amounts paid by the authorized lender or the department.
45.79(5)(a)8.
8. The department may exercise all of the powers vested in it under this subchapter in respect to any applications for loans and loans approved under this section and in respect to any mortgages and mortgage notes executed to authorized lenders and assigned to and purchased by the authority under this section and the properties securing such mortgages. The department is specifically authorized in its discretion to exercise or authorize such powers to be exercised in its own name.
