224.72(4m)(a)2.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(4m)(a)3.
3. `Minimum net worth.' Submit evidence that establishes, to the division's satisfaction, 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(4m)(b)
(b)
Without a bona fide office. In addition to the requirements of
sub. (2), an applicant for registration as a mortgage broker who does not maintain a bona fide office shall do all of the following:
224.72(4m)(b)1.
1. `File a bond.' File with the division a commercial surety bond that is in the amount of $120,000, 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)(b)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(4n)
(4n) Security held by the division; release. The division or its agent shall hold security filed under
subs. (4) (a) 3. and
(4m) (a) 2. The security shall remain in effect, and the division may not release it, until all of the following conditions are met:
224.72(4n)(a)
(a) A period of 180 days has elapsed since at least one of the following:
224.72(4n)(a)1.
1. The date on which the mortgage banker or mortgage broker gives notice to the division that the mortgage banker or mortgage broker is no longer acting as a mortgage banker or mortgage broker.
224.72(4n)(a)2.
2. The date on which the mortgage banker's or mortgage broker's registration expires or is revoked.
224.72(4n)(b)
(b) The division determines that the mortgage banker or mortgage broker is no longer in business.
224.72(4n)(c)
(c) The division determines that all claims of persons to whom the mortgage banker or mortgage broker provided services as a mortgage banker or mortgage broker have been satisfied.
224.72(4r)
(4r) Insufficient security; division order; suspension of registration. If the division finds that the surety bond, security or insurance policy filed by a mortgage banker or mortgage broker has been canceled without the required notice to the division, the division may summarily suspend the mortgage banker's or mortgage broker's registration.
224.72(5)(a)(a)
Loan originator. Except as provided in
sub. (7m), upon receiving a properly completed application for registration as a loan originator and the fee specified in rules promulgated under
sub. (8) and upon an applicant's compliance with
sub. (3) (a) and, if required,
sub. (3) (b), the division may issue to the applicant a certificate of registration as a loan originator.
224.72(5)(b)
(b)
Mortgage banker and mortgage broker. Except as provided in
sub. (7m), upon receiving a properly completed application for registration as a mortgage banker or a mortgage broker, the fee specified in rules promulgated under
sub. (8) and satisfactory evidence of compliance with
subs. (4) and
(4m), the division may issue to the applicant a certificate of registration as a mortgage banker or mortgage broker.
224.72(7)(a)(a) A loan originator, mortgage broker or mortgage banker shall renew a certificate of registration by submitting to the division a renewal application and the renewal fee specified in rules promulgated under
sub. (8) on or before the renewal date specified in rules promulgated under
sub. (8).
224.72(7)(b)
(b) An applicant for renewal of a certificate of registration as a mortgage banker shall, as part of the application, do the following:
224.72(7)(b)2.
2. For a mortgage banker who does not maintain a bona fide office, refile a bond that satisfies
sub. (4) (d) 1. and resubmit evidence that satisfies
sub. (4) (d) 2.
224.72(7)(c)
(c) An applicant for renewal of a certificate of registration as a mortgage broker shall, as part of the application, do the following:
224.72(7)(c)2.
2. For a mortgage broker who does not maintain a bona fide office, refile a bond that satisfies
sub. (4m) (b) 1. and resubmit evidence that satisfies
sub. (4m) (b) 2.
224.72(7)(d)1.1. Except as provided in
subd. 2., an applicant for renewal of a certificate of registration as a loan originator, other than an applicant employed by an affiliate of a credit union or of an entity described under
s. 224.71 (3) (b) 1., shall, as part of the application, submit evidence that is satisfactory to the division that, during the 2 years preceding the date of application, the applicant has successfully completed at least 16 hours, or, if the applicant is a loan solicitor, at least the minimum number of hours established by rule by the division, of education approved by the loan originator council covering primary and subordinate mortgage financing transactions and the provisions of this subchapter.
224.72(7)(d)2.
2. No later than June 30 of each year, the technical college system board, a professional trade association whose members include loan originators, or any other person approved by the division shall administer an examination or series of examinations, approved by the loan originator council, on the educational subjects required under
subd. 1. Any applicant who, as part of the application, submits evidence that is satisfactory to the division that the applicant has passed the examination or series of examinations under this subdivision during the 2 years immediately preceding the date of application is not required to comply with
subd. 1.
224.72 Cross-reference
Cross Reference: See also ch.
DFI-Bkg 45, Wis. adm. code.
224.72(7)(e)
(e) If an applicant for renewal of a certificate of registration as a loan originator has changed employers since his or her criminal history was last searched under this paragraph or
sub. (3) (c), the applicant's current employer shall obtain a criminal history search relating to the applicant from the records maintained by the department of justice and submit the results of the search to the division.
224.72(7m)
(7m) Denial of application for issuance or renewal of registration. The division may not issue or renew a certificate of registration under this section if any of the following applies:
224.72(7m)(a)
(a) The applicant for the issuance or renewal has failed to provide any information required under
sub. (2) (c) 1.
224.72(7m)(am)
(am) The information provided to the division under
sub. (3) (c) or
(7) (e) indicates that the applicant has been convicted of a felony and, as a result of the conviction, the applicant represents an unreasonable risk of violating this subchapter, in the opinion of the division.
224.72(7m)(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 certificate of registration is denied under this paragraph for delinquent taxes is entitled to a notice under
s. 73.0301 (2) (b) 1. b. and hearing under
s. 73.0301 (5) (a) but is not entitled to any other notice or hearing under this section.
224.72(7m)(c)
(c) The applicant for the issuance or renewal is an individual who fails to comply, after appropriate notice, with a subpoena or warrant issued by the department of children and families 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 registration is not issued or renewed under this paragraph for delinquent payments is entitled to a notice and hearing under
s. 49.857 but is not entitled to any other notice or hearing under this section.
224.72(7p)
(7p) Rules relating to loan solicitors, competency examinations, and continuing education. The division shall promulgate rules that do all of the following:
224.72(7p)(a)
(a) Define loan solicitor, which definition shall reflect the limited scope of duties and activities performed by loan solicitors in comparison with loan originators who are not loan solicitors.
224.72(7p)(b)
(b) Establish standards for the approval by the loan originator council of examinations in the law of mortgage banking and mortgage brokering under
subs. (3) (b) and
(7) (d) 2. The rules shall require that a separate examination be available for loan solicitors, the standards for which reflect the limited scope of duties and activities performed by loan solicitors in comparison with loan originators who are not loan solicitors and reflect the reduction in hours of education required of loan solicitors under
par. (c) and
sub. (7) (d) 1.
224.72(7p)(c)
(c) Establish standards for the approval by the loan originator council of the curricula of education under
sub. (7) (d) 1. and the minimum number of hours, which shall be less than 16, of education required of loan solicitors under
sub. (7) (d) 1. The rules shall establish separate standards for curricula for loan solicitors that reflect the limited scope of duties and activities performed by loan solicitors in comparison with loan originators who are not loan solicitors and reflect the reduction in hours of education required of loan solicitors under this paragraph and
sub. (7) (d) 1.
224.72(8)
(8) Registration period; fees. The division shall promulgate rules establishing the registration period and the registration fees for loan originators, mortgage bankers and mortgage brokers.
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;
1997 a. 27,
35,
145,
191,
237,
252;
1999 a. 9,
32;
2003 a. 260;
2007 a. 20.
224.72 Cross-reference
Cross Reference: See also chs.
DFI-Bkg 40 and
41, Wis. adm. code.
224.73
224.73
Relationship between loan originator and either a mortgage banker or a mortgage broker. 224.73(1)(1)
Responsibility for 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 loan originator or any other person who otherwise acts on behalf of the mortgage banker or the mortgage broker.
224.73(2)
(2) Restriction on loan originator. If the division suspends or revokes a mortgage banker's or a mortgage broker's certificate of registration, a loan originator may not act on behalf of that mortgage banker or mortgage broker 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 division, to transfer employment to another registered mortgage banker or mortgage broker. The division shall promulgate rules establishing a fee for a transfer application under this subsection.
224.73(4)
(4) Signature by loan originator. Every loan application shall be signed by a registered loan originator.
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;
1997 a. 145;
2003 a. 260.
224.73 Cross-reference
Cross Reference: See also ch.
DFI-Bkg 40, Wis. adm. code.
224.74
224.74
Division's review of the operations of a loan originator, mortgage broker or mortgage banker. 224.74(1)(a)(a)
Annual report. Except as provided in
par. (b), each year, on a date specified by the division and in a form required by the division, a mortgage banker or mortgage broker shall submit to the division an annual report relating to the mortgage banker's or mortgage broker's operations during its most recently completed fiscal year.
224.74(1)(b)
(b)
Audit requirement. Each year, no later than 6 months following the end of its most recently completed fiscal year, a 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.
224.74(1)(c)
(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 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.
224.74(2)(a)(a)
Conduct of examination and preparation of report. The division 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 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 under oath any of the members, officers, directors, agents, employees or customers of the mortgage banker, 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.
224.74(2)(b)
(b)
Confidentiality. Examination reports and correspondence regarding the reports are confidential, except that the division may release examination reports and correspondence in connection with a disciplinary proceeding conducted by the division, 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;
1997 a. 145.
224.74 Cross-reference
Cross Reference: See also chs.
DFI-Bkg 42 and
43, Wis. adm. code.
224.75
224.75
Record-keeping requirements for mortgage bankers and mortgage brokers. 224.75(1)
(1)
Required records; loan application or servicing documents. 224.75(1)(a)(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 mortgage loan applicant or a mortgagor. The record shall show the application or disposition of those fees.
224.75(1)(b)
(b)
Loan application record system. A mortgage banker or mortgage broker 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 mortgage broker shall maintain for each mortgage loan application all of the following documents, if used by the mortgage banker or mortgage broker 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(1)(d)
(d)
Loan servicing records and documents. A mortgage banker shall maintain for each mortgage loan serviced by the mortgage banker a copy of or a record of all correspondence relating to the loan.
224.75(2)
(2) Period of record retention. A mortgage banker or mortgage broker shall keep for at least 25 months copies of all deposit receipts, canceled checks, trust account records, the records which a mortgage banker or mortgage broker maintains under
sub. (1) (c) or
(d) and other relevant documents or correspondence received or prepared by the mortgage banker or mortgage broker 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. If the loan is serviced by a mortgage banker, the retention period commences on the date that the loan is paid in full. The mortgage banker or mortgage broker shall make the records available for inspection and copying by the division. If the records are not kept within this state, the mortgage banker or mortgage broker shall, upon request of the division, promptly send exact and complete copies of requested records to the division.
224.75(3)
(3) Contents of credit and appraisal reports. 224.75(3)(a)(a)
Credit report. If a mortgage banker or mortgage broker 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 mortgage broker 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. If requested by a loan applicant, a mortgage banker or mortgage broker shall provide the loan applicant with a copy of any written appraisal report held by the mortgage banker or mortgage broker, if the loan applicant paid a fee for the report.
224.75(4)
(4) Responsibility for forms. A mortgage banker or mortgage broker is responsible for the preparation and correctness of all entries on forms, documents and records which are under the mortgage banker's or mortgage broker'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 mortgage broker 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;
1997 a. 145;
2007 a. 211.
224.75 Cross-reference
Cross Reference: See also chs.
DFI-Bkg 42 and
43, Wis. adm. code.
224.755
224.755
Continuing education and examination records. A loan originator shall keep records documenting compliance with
s. 224.72 (7) (d) for at least 4 years. The technical college system board and any professional trade association or other person that administers examinations or provides education under
s. 224.72 (7) (d) shall maintain records documenting attendance and examination performance for at least 4 years.
224.755 History
History: 2003 a. 260.
224.76
224.76
Mortgage banker, loan originator and mortgage broker trust accounts. A mortgage banker, loan originator or mortgage broker 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 mortgage broker shall 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 whose accounts are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. The mortgage banker or mortgage broker shall notify the division of the location of its trust accounts.
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;
1997 a. 145.
