428.207(1)(1)
A customer may prepay a covered loan at any time without penalty if the payment is made in the context of a refinancing of the covered loan and if the covered loan is held by the refinancing lender. This subsection does not prohibit the servicer of a covered loan from imposing a prepayment penalty, unless the servicer is also the lender and holds the loan at the time of the refinancing.
428.207(2)
(2) Any prepayment penalty under this section is subject to all of the following limitations:
428.207(2)(a)
(a) A prepayment penalty is permitted only during the 36 months immediately following the date of consummation of a covered loan.
428.207(2)(b)
(b) A lender may not include a prepayment penalty in a covered loan unless the lender offers the customer the option of choosing a loan product without a prepayment penalty. The terms of the offer shall be in writing and initialed by the customer. The offer shall be in a clear and conspicuous format and include the following disclosure:
LOAN PRODUCT CHOICE DISCLOSURE
I was provided with an offer to accept a product both with and without a prepayment penalty provision. I have chosen to accept the product with a prepayment penalty.
428.207(2)(c)
(c) A prepayment penalty may not exceed 60 days' interest at the contract rate on the amount prepaid on fixed-rate covered loans over $25,000 if the borrower prepays more than 20 percent of the original loan amount within 36 months immediately following the date of consummation of the covered loan.
428.207(2)(d)
(d) A prepayment penalty may not be collected on fixed-rate covered loans of $25,000 or less, on adjustable rate loans, or on those fixed-rate covered loans over $25,000 not specified in par.
(c).
428.207 History
History: 2003 a. 257.
428.208
428.208
Disclosure to customers. At least 3 business days before making a covered loan to a customer, a lender shall ensure that the customer has been given the following notice, in writing and in a clear and conspicuous format:
DISCLOSURE TO BORROWER
A. If you obtain this loan, the lender will have a mortgage on your home. You could lose your home and any money that you have put into it if you do not meet your obligations under this loan. Mortgage loan rates and closing costs and fees vary based on many factors, including your particular credit and financial circumstances, your earnings history, your employment status, the loan-to-value ratio of the requested loan, and the type of property that will secure your loan. The loan rate and fees could also vary based on which lender you select.
B. As a consumer you should shop around and compare loan rates and fees. You should also consider consulting a qualified independent credit counselor or other experienced financial adviser regarding the rate, fees, and provisions of this mortgage loan before you proceed.
C. You are not required to complete this loan agreement merely because you have received these disclosures or have signed a loan application. If you proceed with this mortgage loan, you should also remember that you may face serious financial risks if you use this loan to pay off credit card debts or other debts in connection with this transaction and then subsequently incur significant new debt. If you continue to accumulate debt after this loan is made and then experience financial difficulties, you could lose your home and any equity that you have in it if you do not meet your mortgage loan obligations.
D. Property taxes and homeowner's insurance are your responsibility. Some lenders may require you to escrow money for these payments. However, not all lenders provide escrow services for these payments. You should ask your lender about these services.
E. Your payments on existing debts contribute to your credit ratings. You should not accept any advice to ignore your regular payments to your existing creditors.
428.208 History
History: 2003 a. 257.
428.208 Cross-reference
Cross-reference: See also ch.
DFI-Bkg 46, Wis. adm. code.
428.209
428.209
Exclusive state regulation authority. The state shall have sole authority, except as provided under federal law, to regulate any matter governed by this subchapter or by a rule promulgated under this subchapter. No local governmental unit may attempt to regulate, directly or indirectly, any matter governed by this subchapter or by a rule promulgated under this subchapter, including enacting an ordinance or adopting a resolution or imposing reporting requirements.
428.209 History
History: 2003 a. 257.
428.2095
428.2095
Property exempt from debt collection. Except to the extent that the lender has a valid security interest permitted under this subchapter or has a lien under ch.
779 in the property, all of the following personal property of the customer is exempt from levy, execution, sale, and other similar process in satisfaction of a judgment for an obligation arising from a covered loan:
428.2095(1)
(1) Clothing of the customer or his or her dependents.
428.2095(2)
(2) Dining table and chairs, refrigerator, heating stove, cooking stove, radio, beds and bedding, couch and chairs, cooking utensils, and kitchenware.
428.2095(3)
(3) Household goods, as defined in
12 CFR 227.13 (d),
12 CFR 535.1 (g), or
16 CFR 444.1 (i), consisting of furniture, appliances, one television, linens, china, crockery, and personal effects including wedding rings, except works of art, electronic entertainment equipment, antiques, and jewelry, to the extent that a nonpossessory security interest in these household goods is prohibited under
12 CFR 227.13 (d),
12 CFR 535.2 (a) (4), or
16 CFR 444.2 (a) (4).
428.2095 History
History: 2003 a. 257.
428.210
428.210
Administration and penalties. 428.210(1)(1)
Rules. The department may promulgate rules for the administration of this subchapter. The rules shall include guidelines for determining a customer's ability to repay a covered loan based upon the customer's debt-to-income ratio.
428.210(2)(a)
(a) At any time that the department has reason to believe that a person has engaged in or is about to engage in an act that violates this subchapter, the department may investigate. In performing an investigation under this paragraph, the department may administer oaths or affirmations, subpoena witnesses, compel their attendance, adduce evidence, and require the production of any matter, including the existence, description, nature, custody, condition, and location of any books, documents, or other tangible things, and the identity and location of persons having knowledge of relevant facts, or any other matter reasonably calculated to lead to the discovery of admissible evidence. The department may access and examine such books, documents, or other tangible things. In any civil action brought on behalf of the department based on evidence obtained in such an investigation, the department may recover the costs of performing the investigation if the department prevails in the action.
428.210(2)(b)
(b) If 5 or more persons file a verified complaint with the department alleging that a person has violated this subchapter, the department shall immediately commence an investigation pursuant to par.
(a).
428.210(2)(c)
(c) If the records of a person who is subject to an investigation pursuant to par.
(a) are located outside of this state, the person at the person's option shall either make them available to the department at a convenient location within this state or pay the reasonable and necessary expenses for the department to examine them at the place where they are located. The department may designate representatives, including comparable officials of the state in which the records are located, to inspect them on the department's behalf.
428.210(2)(d)
(d) At the request of the department of financial institutions and upon reasonable notice to all affected persons, the department of justice may apply to any court of record for an order compelling compliance if a person fails to obey a subpoena or to give testimony pursuant to par.
(a).
428.210(3)(a)
(a) The department may serve a notice of a hearing that complies with s.
227.44 (1) and
(2) on a person if the department reasonably suspects that the person has violated this subchapter. The department may receive complaints alleging violations of this subchapter. A hearing conducted pursuant to a notice under this paragraph shall be conducted in the manner specified for a contested case, as defined in s.
227.01 (3), under ss.
227.44 to
227.50. Except as provided in sub.
(4), if the person fails to appear at the hearing or if upon the record made at the hearing the department finds that a violation has been established, the department may issue and serve on the person an order specifying any of the following:
428.210(3)(a)1.
1. That the person must cease and desist from the violation or practice and make restitution for any actual damages suffered by a customer.
428.210(3)(a)2.
2. That the person must forfeit not more than $1,000 per violation or, if the person willfully or knowingly violated this subchapter, not less than $1,000 nor more than $10,000 per violation.
428.210(3)(a)3.
3. That the person must pay to the department the costs of its investigation.
428.210(3)(a)4.
4. That a license, registration, or certification issued by the department to the person is suspended or revoked or will not be renewed.
428.210(3)(a)5.
5. That any individual who is responsible for the violation must be removed from working in any capacity related to the violation or related to activities regulated by the department.
428.210(3)(a)6.
6. Any additional conditions that the department considers reasonable.
428.210(3)(b)
(b) An order under par.
(a) is effective upon service on the person and may be appealed under s.
220.035.
428.210(3)(c)
(c) The department of justice, at the request of the department of financial institutions, may bring an action to enforce an order issued under par.
(a).
428.210(4)
(4) Safe harbor. It is a defense to any alleged violation of this subchapter if the person alleged to have committed the violation establishes all of the following:
428.210(4)(a)
(a) That the person acted in good faith while committing the violation.
428.210(4)(b)
(b) That, no later than 60 days after the discovery of the violation and before any investigation or other enforcement action by the department under this section, the person notified the affected customer of the violation and either made appropriate adjustments to the loan to bring the loan into compliance with this subchapter or changed the terms of the loan in a manner beneficial to the customer so that the loan is no longer a covered loan.
428.210 History
History: 2003 a. 257.
428.211
428.211
Exemption for depository institutions. This subchapter does not apply to any state chartered or federally chartered bank, trust company, savings and loan association, savings bank, or credit union, or to any subsidiary of such a bank, trust company, savings and loan association, savings bank, or credit union.
428.211 History
History: 2003 a. 257;
2011 a. 32.
