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.
224.76 Cross-reference
Cross Reference: See also ch.
DFI-Bkg 42, Wis. adm. code.
224.77
224.77
Discipline of mortgage bankers, loan originators and mortgage brokers. 224.77(1)
(1)
Prohibited conduct. The division may deny an application submitted to it under
s. 224.72, or may revoke, suspend or limit the certificate of registration of a mortgage banker, loan originator or mortgage broker, or may reprimand a mortgage banker, loan originator or mortgage broker, if it finds that the mortgage banker, loan originator or mortgage broker 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 division.
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 mortgage broker 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 or mortgage broker 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 mortgage broker'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 mortgage broker 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 mortgage broker.
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 mortgage brokers.
224.77(1)(m)
(m) Engaged in conduct, whether of the same or a different character than specified elsewhere in this section, which constitutes improper, fraudulent or dishonest dealing.
224.77(1)(o)
(o) In the course of practice as a mortgage banker, loan originator or mortgage broker, except in relation to housing designed to meet the needs of elderly individuals, treated a person unequally solely because of sex, race, color, handicap, sexual orientation, as defined in
s. 111.32 (13m), religion, national origin, age or ancestry, the person's lawful source of income, or the sex or marital status of the person maintaining a household.
224.77(1)(p)
(p) Intentionally encouraged or discouraged any person from purchasing or renting real estate on the basis of race.
224.77(1)(q)
(q) Because of the age or location of the property or the race of the loan applicant, rather than because of the credit worthiness of the applicant and the condition of the property securing the loan:
224.77(1)(q)1.
1. Refused to negotiate, to offer or to attempt to negotiate a land contract, loan or commitment for a loan, or refused to find a loan.
224.77(1)(q)2.
2. Found a loan or negotiated a loan on terms less favorable than are usually offered.
224.77(1m)
(1m) Administrative forfeiture and hearing rights. 224.77(1m)(a)(a) The division may assess against a person who is registered under this chapter a forfeiture of not more than $2,000 for each violation enumerated under
sub. (1) (a) to
(o) or
(r).
224.77(1m)(b)
(b) A person may contest an assessment of forfeiture under
par. (a) by sending, within 10 days after receipt of notice of the assessment under
par. (a), a written request for hearing under
s. 227.44 to the division of hearings and appeals created under
s. 15.103 (1). The administrator of the division of hearings and appeals may designate a hearing examiner to preside over the case and recommend a decision to the administrator under
s. 227.46. The decision of the administrator of the division of hearings and appeals shall be the final administrative decision. The division of hearings and appeals shall commence the hearing within 30 days after receipt of the request for hearing and shall issue a final decision within 15 days after the close of the hearing. Proceedings before the division of hearings and appeals are governed by
ch. 227. In any petition for judicial review of a decision by the division of hearings and appeals, the party, other than the petitioner, who was in the proceeding before the division of hearings and appeals shall be the named respondent.
224.77(1m)(c)
(c) All forfeitures shall be paid to the division of banking within 10 days after receipt of notice of assessment or, if the forfeiture is contested under
par. (b), within 10 days after receipt of the final decision after exhaustion of administrative review. The division of banking shall remit all forfeitures paid to the secretary of administration for deposit in the school fund.
224.77(1m)(d)
(d) The attorney general may bring an action in the name of the state to collect any forfeiture imposed under this subsection if the forfeiture has not been paid following the exhaustion of all administrative and judicial reviews. The only issue to be contested in any such action shall be whether the forfeiture has been paid.
224.77(2)
(2) Conduct of officers, directors and others. The division may revoke, suspend or limit a certificate of registration issued under this subchapter or reprimand a mortgage banker or mortgage broker registered under this subchapter, if a director, officer, trustee, partner or member of the mortgage banker or mortgage broker or a person who has a financial interest in or is in any way connected with the operation of the mortgage banker's or mortgage broker's business is guilty of an act or omission which would be cause for refusing to issue a certificate of registration to that individual.
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.
