Wisconsin Mortgage Regulations: Licensing, Prohibited Acts, Record-keeping, Study notes of History

Download Wisconsin Mortgage Regulations: Licensing, Prohibited Acts, Record-keeping and more Study notes History in PDF only on Docsity! MISCELLANEOUS BANKING PROVISIONS 224.061 Updated 19−20 Wis. Stats. Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) CHAPTER 224 MISCELLANEOUS BANKING AND FINANCIAL INSTITUTIONS PROVISIONS SUBCHAPTER I BANKING PROVISIONS 224.02 Banking, defined. 224.03 Banking, unlawful, without charter; penalty. 224.05 Municipality not preferred creditor. 224.06 Fidelity bonds for bank officers and employees. 224.07 Checks to clear at par. 224.075 Financially related services tie−ins. 224.10 Indian loan funds. SUBCHAPTER II FINANCIAL INSTITUTIONS 224.25 Customer access to appraisals. 224.26 Customer access to credit reports. 224.30 Powers and duties of the department. 224.40 Disclosure of financial records for child support enforcement. 224.42 Disclosure of financial records for Medical Assistance and food stamp pro- gram eligibility. 224.44 Disclosure of financial records for collection of unemployment insurance debt. 224.46 Independent data processing servicers. 224.48 College tuition and expenses program. 224.50 College savings program. 224.51 College savings program vendor. 224.52 Repayment to the general fund. SUBCHAPTER III MORTGAGE BANKERS, LOAN ORIGINATORS AND MORTGAGE BROKERS 224.71 Definitions. 224.72 Licensing of mortgage bankers and mortgage brokers. 224.722 Registered entities. 224.725 Licensing of mortgage loan originators. 224.728 Nationwide mortgage licensing system and registry and cooperative arrangements. 224.73 Relationship between mortgage loan originator and a mortgage banker, mortgage broker, or registered entity; branch offices. 224.74 Division’s review of the operations of a mortgage loan originator, mort- gage broker, mortgage banker, or registered entity. 224.75 Record−keeping requirements for licensees. 224.755 Education and testing requirements for mortgage loan originators. 224.76 Mortgage banker, mortgage loan originator, and mortgage broker trust accounts. 224.77 Prohibited acts and practices, and discipline, of mortgage bankers, mort- gage loan originators, mortgage brokers, and registered entities. 224.79 Mortgage brokerage agreements and disclosures; mortgage broker agency relationship and duties. 224.80 Penalties and private cause of action. 224.81 Limitation on actions for commissions and other compensation. 224.82 Compensation presumed. SUBCHAPTER IV NONDEPOSITORY SMALL BUSINESS LENDERS 224.90 Definitions. 224.92 License required. 224.923 License application. 224.927 Disclosure of certain application information. 224.93 License approval. 224.935 Expiration of license. 224.94 Renewal of license. 224.95 Denial of or disciplinary action relating to license. 224.96 Required loan loss reserve. 224.97 Division review of nondepository lender operations. 224.98 Powers of licensee. 224.985 Required records and reports. 224.99 Rule making. Cross−reference: See definitions in s. 220.01 SUBCHAPTER I BANKING PROVISIONS 224.02 Banking, defined. The soliciting, receiving, or accepting of money or its equivalent on deposit as a regular busi- ness by any person, partnership, association, or corporation, shall be deemed to be doing a banking business, whether such deposit is made subject to check or is evidenced by a certificate of deposit, a passbook, a note, a receipt, or other writing, provided that noth- ing herein shall apply to or include money left with an agent, pend- ing investment in real estate or securities for or on account of the agent’s principal. History: 991 a. 316; 1993 a. 490; 2005 a. 158. A “junior achievement” bank would be a banking business and violate s. 224.03. 62 Atty. Gen. 254. 224.03 Banking, unlawful, without charter; penalty. It shall be unlawful for any person, partnership, association, or cor- poration to do a banking business without having been regularly organized and chartered as a national bank, a state bank or a trust company bank. Any person or persons violating any of the provi- sions of this section, either individually or as an interested party in any partnership, association, or corporation shall be guilty of a misdemeanor and on conviction thereof shall be fined not less than $300 nor more than $1,000 or imprisoned in the county jail for not less than 60 days nor more than one year or both. History: 1991 a. 221; 1993 a. 490; 1995 a. 417. 224.05 Municipality not preferred creditor. If any bank, banking institution or trust company, being indebted to the state of Wisconsin, or indebted to any county, city, town or other munic- ipality therein, for deposits made or indebtedness incurred after April 23, 1899, becomes insolvent or bankrupt, except as pro- vided in s. 34.07, the state, county, city, town or other municipality shall not be a preferred creditor and shall have no preference or priority of claim whatever over any other creditor or creditors thereof; but a just and fair distribution of the property of such bank, banking institution or trust company, and of the proceeds thereof, shall be made among the creditors thereof proportionally, according to the amount of their respective claims. Nothing herein contained shall in any manner affect the provisions of law as they existed on said date providing for the payment of unpaid taxes and assessments, laborer’s claims, expenses of assignment and execution of the trust. History: 1979 c. 110 s. 60 (12); 1985 a. 257. 224.06 Fidelity bonds for bank officers and employ- ees. (1) As a condition precedent to qualification or entry upon the discharge of his or her duties, every person appointed or elected to any position requiring the receipt, payment or custody of money or other personal property owned by a bank or in its cus- tody or control as collateral or otherwise, shall give a bond from an insurer qualified under s. 610.11 to do business in this state, in such adequate sum as the directors shall require and approve. In lieu of individual bonds the division may accept a schedule or blanket bond which covers all of the officers and employees of any bank whose duties include the receipt, payment or custody of money or other personal property for or on behalf of the bank. All such bonds shall be in the form prescribed by the division. (2) No officer or employee who is required to give bond shall be deemed qualified nor shall be permitted to enter upon the dis- charge of duties until the bond is approved by a majority of the board of directors. The minute books of each bank shall contain a record of each bond executed and approved. (3) Such bond shall be sufficient in amount to protect the bank from loss by reason of acts of fraud or dishonesty including forg- ery, theft, embezzlement, wrongful abstraction or misapplication on the part of the person, directly or through connivance with oth- Updated 19−20 Wis. Stats. 2 224.06 MISCELLANEOUS BANKING PROVISIONS Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) ers. At any time the division may require additional bond or secu- rity, when in the division’s opinion, the bonds then executed and approved are insufficient. (4) Every such bond shall provide that no cancellation or other termination of the bond shall be effective unless the surety gives in advance at least 10 days’ written notice by registered mail to the division. If the bond is canceled or terminated at the request of the insured (employer), the surety shall give the written notice to the division within 10 days after the receipt of such request. (5) For reasons which the division deems valid and sufficient the division may waive as to the cancellation or termination of any such bond the 10−day written notice in advance required by sub. (4) and may give written consent to the termination or cancellation being made effective as of a date agreed upon and requested by the surety and the bank. (6) The provisions required by sub. (4) to be in every such bond shall not in any way modify, impair or otherwise affect or render invalid a provision therein to the effect that the bond shall terminate as to any person covered thereby upon the discovery by the bank of any dishonest act on the part of such person. (7) Any violation of the provisions contained in subs. (1) and (2) shall subject the bank to a fine of $100 per day for each consec- utive day of such violation and it shall be the duty of the attorney general to recover any such penalties by action for and in behalf of the state. History: 1983 a. 119, 538; 1987 a. 252; 1989 a. 359; 1991 a. 316; 1995 a. 27. 224.07 Checks to clear at par. Checks drawn on any bank or trust company, organized under the laws of this state, shall be cleared at par by the bank or trust company on which they are drawn. Any bank or trust company, or officer or employee thereof, who violates the provisions of this section shall be guilty of a misdemeanor and punished as provided in s. 939.61. 224.075 Financially related services tie−ins. In any transaction conducted by a bank, bank holding company or a sub- sidiary of either with a customer who is also a customer of any other subsidiary of any of them, the customer shall be given a notice in 12−point boldface type in substantially the following form: NOTICE OF RELATIONSHIP This company, .... (insert name and address of bank, bank hold- ing company or subsidiary), is related to .... (insert name and address of bank, bank holding company or subsidiary) of which you are also a customer. You may not be compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction. If you feel that you have been compelled to buy any product or service from either of the above companies or any other related company in order to participate in this transaction, you should contact the management of either of the above companies at either of the above addresses or the division of banking at .... (insert address). History: 1985 a. 325; 1995 a. 27. 224.10 Indian loan funds. (1) ADMINISTRATION IN TRUST AS A LOAN FUND. The loan funds of any Indian tribe which are trans- ferred to the custody of such tribe by the United States, including any outstanding loan accounts, shall be administered as follows: (a) The funds shall be held in trust by the tribe or a legal entity thereof as an Indian loan fund, for the purpose of making loans to members of the tribe. (b) Management of an Indian loan fund shall be vested in a board of trustees, which may hire necessary personnel to adminis- ter the loan fund. The board of trustees shall consist of 5 members of the tribe and shall be appointed annually by the governing body of the tribe. (c) The Indian loan fund in custody of the Menominee Indian Tribe and administered by a board of trustees appointed by that tribe shall, at the termination of federal control, be administered, subject to this section, by a board of 5 trustees appointed annually by the stockholders of the corporation described in s. 710.05, 1973 stats., and shall be used for making loans to those who were enrolled tribal members as proclaimed by the secretary of the inte- rior as of June 17, 1954, and their spouses and descendants and to any additional classes recommended by the trustees. (3) RULES OF BOARD OF TRUSTEES. The board of trustees of an Indian loan fund may establish rules for the administration of the fund. History: 1975 c. 422 s. 163; 1987 a. 252. SUBCHAPTER II FINANCIAL INSTITUTIONS 224.25 Customer access to appraisals. If requested by an individual who is a customer, loan applicant or credit applicant, a financial institution, as defined in s. 705.01 (3), shall provide that individual with a copy of any written appraisal report which is held by the financial institution, which relates to residential real estate that the individual owns or has agreed to purchase and for which a fee is imposed. History: 1991 a. 78; 1997 a. 191 s. 236; Stats. 1997 s. 224.25. 224.26 Customer access to credit reports. If requested by an individual who is a customer, loan applicant or credit appli- cant, a financial institution, as defined in s. 705.01 (3), shall pro- vide that individual, at no additional charge, with a copy of any written credit report which is held by the financial institution, which relates to that individual and for which a fee is imposed. History: 1993 a. 425; 1997 a. 191 s. 237; Stats. 1997 s. 224.26. 224.30 Powers and duties of the department. (1) DEFI- NITION. In this section, “department” means the department of financial institutions. (3) COMPUTER DATABASES, NETWORKS AND SYSTEMS; ACCESS AND USE FEES. The department may establish fees to be paid by members of the public for accessing or using the department’s computer databases, computer networks or computer systems. Every fee established under this paragraph shall be based upon the reasonable cost of the service provided by the department, together with a reasonable share of the costs of developing and maintaining the department’s computer databases, computer net- works and computer systems. (4) RESTRICTIONS ON RECORDING INSTRUMENTS WITH SOCIAL SECURITY NUMBERS. (a) In this subsection, “system” means the department’s corporate registration information system. (b) The department may not record in the system any instru- ment offered for recording that contains the social security num- ber of an individual. If the department is presented with an instru- ment for recording in the system that contains an individual’s social security number, the department may, prior to recording the instrument, remove or obscure characters from the social security number such that the social security number is not discernable on the instrument. (c) If the department is presented with an instrument for recording in the system that contains an individual’s social secu- rity number, and if the department records the instrument but does not discover that the instrument contains the individual’s social security number until after the instrument is recorded, the depart- ment is not liable for the instrument drafter’s placement of the individual’s social security number on the instrument and the department may remove or obscure characters from the social security number such that the social security number is not dis- cernable on the instrument. (d) If the department records an instrument in the system that contains the complete social security number of an individual, the instrument drafter is liable to the individual whose social security number appears in the recorded instrument for any actual damages resulting from the instrument being recorded. MISCELLANEOUS BANKING PROVISIONS 224.505 Updated 19−20 Wis. Stats. Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) receive a refund under sub. (7) in a year other than the anticipated academic year of the beneficiary’s attendance, as specified in the contract. (b) The department may not increase the value of a tuition unit under par. (a) to an amount that exceeds the value of a tuition unit that was purchased at a similar time, held for a similar period and used or refunded in the anticipated academic year of the benefi- ciary’s attendance, as specified in the contract. (c) The department may promulgate rules imposing or increas- ing penalties for refunds under sub. (7) (a) if the department deter- mines that such rules are necessary to maintain the status of the program under this section as a qualified state tuition program under section 529 of the Internal Revenue Code, as defined in s. 71.01 (6). (8) EXEMPTION FROM GARNISHMENT, ATTACHMENT AND EXECU- TION. Moneys deposited in the tuition trust fund and a beneficia- ry’s right to the payment of tuition, fees and the costs described in sub. (5) (a) under this section are not subject to garnishment, attachment, execution or any other process of law. (9) CONTRACT WITH ACTUARY. The department shall contract with an actuary or actuarial firm to evaluate annually whether the assets in the tuition trust fund are sufficient to meet the obligations of the department under this section and to advise the department on setting the price of a tuition unit under sub. (2) (b). (10) REPORTS. (a) Annually, the department shall submit a report to the governor, and to the appropriate standing committees of the legislature under s. 13.172 (3), on the program under this section. The report shall include any recommendations for changes to the program that the department determines are neces- sary to ensure the sufficiency of the tuition trust fund to meet the department’s obligations under this section. (b) The department shall submit a quarterly report to the state investment board projecting the future cash flow needs of the tuition trust fund. The state investment board shall invest moneys held in the tuition trust fund in investments with maturities and liq- uidity that are appropriate for the needs of the fund as reported by the department in its quarterly reports. All income derived from such investments shall be credited to the fund. (11) CONSTRUCTION. (a) Nothing in this section guarantees an individual’s admission to, retention by or graduation from any institution of higher education. (b) The requirements to pay tuition, fees and the costs of room and board, books, supplies and equipment under sub. (5) and to make refunds under sub. (7) are subject to the availability of suffi- cient assets in the tuition trust fund. (11m) FINANCIAL AID CALCULATIONS. The value of tuition units shall not be included in the calculation of a beneficiary’s eli- gibility for state financial aid for higher education if the benefi- ciary notifies the higher educational aids board and the institution of higher education that the beneficiary is planning to attend that he or she is a beneficiary of a contract under this section and the contract owner agrees to release to the higher educational aids board and the institution of higher education information neces- sary for the calculation under this subsection. (12) ADDITIONAL DUTIES AND POWERS. (a) The department shall do all of the following: 1. Annually publish a list of the institutions of higher educa- tion located in this state and the number of tuition units necessary to pay for one year of full−time attendance as a resident under- graduate at each institution. 2. Actively promote the program under this section. 3. Promulgate rules to implement and administer this section. (b) The department may do any of the following: 1. Contract with any person for the management and opera- tion of the program or any part of the program under this section. 2. Keep personal and financial information pertaining to a purchaser of tuition units or a beneficiary of tuition units closed to the public. (13) PROGRAM TERMINATION. If the department determines that the program under this section is financially infeasible, the department shall discontinue entering into contracts under sub. (3) and discontinue selling tuition units under sub. (4). History: 1995 a. 403; 1997 a. 27, 158; 1999 a. 9 ss. 52 to 62; Stats. 1999 s. 14.63; 1999 a. 44; 2001 a. 7, 16; 2011 a. 32 s. 75; Stats. 2011 s. 16.64; 2017 a. 59 s. 148, 1704; Stats. 2017 s. 224.48. 224.50 College savings program. (1) DEFINITIONS. In this section: (a) “Account owner” means a person who establishes a college savings account under this section. (b) “Board” means the college savings program board. (c) “Department” means the department of financial institu- tions. (2) DUTIES OF THE BOARD. The board shall do all of the follow- ing: (a) Except as provided in s. 224.51, establish and administer a college savings program that allows an individual, trust, legal guardian, or entity described under 26 USC 529 (e) (1) (C) to establish a college savings account to cover tuition, fees, and the costs of room and board, books, supplies, and equipment required for the enrollment or attendance of a beneficiary at an eligible edu- cational institution, as defined under 26 USC 529, and to cover tuition expenses in connection with enrollment or attendance at an elementary or secondary public, private, or religious school, as described in section 11032 of P.L. 115−97, related to qualified tuition programs under 26 USC 529. (b) Ensure that the college savings program meets the require- ments of a qualified state tuition plan under 26 USC 529. (c) Establish investment guidelines for contributions to col- lege savings accounts and pay distributions to beneficiaries and eligible educational institutions. (d) Provide to each account owner, and to persons who are interested in establishing a college savings account, information about current and estimated future higher education costs, levels of participation in the college savings program that will help achieve educational funding objectives and availability of and access to financial aid. (e) Promulgate rules to implement and administer this section, including rules that determine whether a withdrawal from a col- lege savings account is a qualified or nonqualified withdrawal, as defined under 26 USC 529, and that impose more than a de mini- mis penalty, as defined under 26 USC 529, for nonqualified with- drawals. (f) Seek rulings and guidance from the U.S. department of the treasury, the internal revenue service and the securities and exchange commission to ensure the proper implementation and administration of the college savings program. (g) Ensure that if the department changes vendors, the bal- ances of college savings accounts are promptly transferred into investment instruments as similar to the original investment instruments as possible. (h) Keep personal and financial information pertaining to an account owner or a beneficiary closed to the public, except that the board may release to the appropriate state agency information necessary in determining a beneficiary’s eligibility for state finan- cial aid for higher education. (i) Before December 31 of each year, beginning in 2015, ensure that the account balance limitation under sub. (3) (bm) is increased for the subsequent year. The annual increase shall be equal to a percentage that is not less than the most recently pub- lished national average tuition and fees percentage increase at pri- vate, nonprofit 4−year institutions, as determined by the College Board, or such other nationally reputable entity, and shall be sub- ject to the requirements under 26 USC 529 that pertain to the pro- hibition on excess contributions. (3) ACCOUNT OWNERS; BENEFICIARIES; CONTRIBUTIONS; TER- MINATION OF SAVINGS ACCOUNTS. (a) An account owner may do all of the following: Updated 19−20 Wis. Stats. 6 224.50 MISCELLANEOUS BANKING PROVISIONS Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) 1. Contribute to a college savings account or authorize any other person to contribute to the account. 2. Select a beneficiary of a college savings account. 3. Change the beneficiary of a college savings account to a family member, as defined under 26 USC 529, of the previous beneficiary. 4. Transfer all or a portion of a college savings account to another college savings account whose beneficiary is a member of the family. 5. Designate a person other than the beneficiary as a person to whom funds may be paid from a college savings account. 6. Receive distributions from a college savings account if no other person is designated. (b) An individual may be the beneficiary of more than one col- lege savings account, and an account owner may be the benefi- ciary of a college savings account that the account owner has established. (bm) Beginning on August 1, 2015, no contribution may be made to an account if the contribution would cause the account balance of a beneficiary’s account, or the combined balance of all accounts of a beneficiary, to exceed $425,000. This contribution limitation applies to all accounts that are established on and after that date, and to all accounts that are in existence on that date that have not yet reached the balance limit specified in this paragraph, subject to the annual increase described in sub. (2) (i). (c) The board shall establish a minimum initial contribution to a college savings account that may be waived if the account owner agrees to contribute to a college savings account through a payroll deduction or automatic deposit plan. The board shall ensure that any such plan permits the adjustment of scheduled deposits because of a change in the account owner’s economic circum- stances or a beneficiary’s educational plans. (d) An account owner under this section may terminate his or her college savings account if any of the following occurs: 1. The beneficiary dies or is permanently disabled. 2. The beneficiary graduates from high school but is unable to gain admission to an institution of higher education after a good faith effort. 3. The beneficiary attended an institution of higher education but involuntarily failed to complete the program in which he or she was enrolled. 4. The beneficiary is at least 18 years old and one of the fol- lowing applies: a. The beneficiary has not graduated from high school. b. The beneficiary has decided not to attend an institution of higher education. c. The beneficiary attended an institution of higher education but voluntarily withdrew without completing the program in which he or she was enrolled. 5. Other circumstances determined by the board to be grounds for termination. (e) The board may terminate a college savings account if any portion of the college savings account balance remains unused 10 years after the anticipated academic year of the beneficiary’s ini- tial enrollment in an eligible educational institution. (4) CONTRACTS WITH PROFESSIONALS. The board may enter into a contract for the services of accountants, attorneys, consul- tants and other professionals to assist in the administration and evaluation of the college savings program. (5) REPORT. Annually, the board shall submit a report to the governor, and to the appropriate standing committees of the legis- lature under s. 13.172 (3), on the performance of the college sav- ings program, including any recommended changes to the pro- gram. (6) CONSTRUCTION. Nothing in this section guarantees an indi- vidual’s admission to, retention by or graduation from any institu- tion of higher education; a rate of interest or return on a college savings account; or the payment of principal, interest or return on a college savings account. (7) EXEMPTION FROM GARNISHMENT, LIEN, LEVY, ATTACHMENT AND EXECUTION; SECURITY FOR LOAN. (a) An account established under this section is not subject to garnishment, lien, levy, attach- ment, execution or other process of law. (b) No interest in a college savings account may be pledged as security for a loan. (8) FINANCIAL AID CALCULATIONS. The balance of a college savings account shall not be included in the calculation of a bene- ficiary’s eligibility for state financial aid for higher education if the beneficiary notifies the higher educational aids board and the eligible educational institution that the beneficiary is planning to attend that he or she is a beneficiary of a college savings account and if the account owner agrees to release to the higher educa- tional aids board and the eligible educational institution informa- tion necessary for the calculation under this subsection. History: 1999 a. 44; 2001 a. 7, 38; 2011 a. 32 s. 76; Stats. 2011 s. 16.641; 2013 a. 227; 2015 a. 55; 2017 a. 59 ss. 149, 1705; Stats. 2017 s. 224.50; 2017 a. 231. Cross−reference: See also ch. DFI−CSP 1, Wis. adm. code. 224.51 College savings program vendor. (1g) In this section, “department” means the department of financial institu- tions. (1m) The department shall determine the factors to be consid- ered in selecting a vendor of the program under s. 224.50, which shall include: (a) The person’s ability to satisfy record−keeping and report- ing requirements. (b) The fees, if any, that the person proposes to charge account owners. (c) The person’s plan for promoting the college savings pro- gram and the investment that the person is willing to make to pro- mote the program. (d) The minimum initial contribution or minimum contribu- tions that the person will require. (e) The ability and willingness of the person to accept elec- tronic contributions. (f) The ability of the person to augment the college savings program with additional, beneficial services related to the pro- gram. (2) The department shall solicit competitive sealed proposals under s. 16.75 (2m) from nongovernmental persons to serve as vendor of the college savings program. The department shall select the vendor based upon factors determined by the depart- ment under sub. (1m). (3) The contract between the department and the vendor shall ensure all of the following: (a) That the vendor reimburses the state for all administrative costs that the state incurs for the college savings program. (b) That a firm of certified public accountants selected by the vendor annually audits the college savings program and provides a copy of the audit to the college savings program board. (c) That each account owner receives a quarterly statement that identifies the contributions to the college savings account during the preceding quarter, the total contributions to and the value of the college savings account through the end of the preceding quar- ter and any distributions made during the preceding quarter. (d) That the vendor communicate to the beneficiary and account owner the requirements of s. 224.50 (8). History: 1999 a. 44; 2001 a. 38 s. 12; 2011 a. 32; 2017 a. 59 ss. 114 to 117, 1706; Stats. 2017 s. 224.51. 224.52 Repayment to the general fund. (1) The secre- tary of administration shall transfer from the tuition trust fund, the college savings program trust fund, the college savings program bank deposit trust fund, or the college savings program credit union deposit trust fund to the general fund an amount equal to the amount expended from the appropriations under s. 20.505 (9) (a), 1995 stats., s. 20.585 (2) (a), 2001 stats., and s. 20.585 (2) (am), MISCELLANEOUS BANKING PROVISIONS 224.717 Updated 19−20 Wis. Stats. Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) 2001 stats., when the secretary of administration determines, after consultation with the secretary of financial institutions, that funds in those trust funds are sufficient to make the transfer. The secre- tary of administration may make the transfer in installments. (2) Annually, by June 1, the secretary of financial institutions, after consultation with the secretary of administration, shall sub- mit a report to the joint committee on finance on the amount avail- able for repayment under sub. (1), the amount repaid under sub. (1), and the outstanding balance under sub. (1). History: 2001 a. 16; 2003 a. 33; 2005 a. 478; 2011 a. 32 s. 77; Stats. 2011 s. 16.642; 2017 a. 59 s. 150; Stats. 2017 s. 224.52. SUBCHAPTER III MORTGAGE BANKERS, LOAN ORIGINATORS AND MORTGAGE BROKERS 224.71 Definitions. In this subchapter: (1bm) “Another state” means any state of the United States other than Wisconsin; the District of Columbia; any territory of the United States; Puerto Rico; Guam; American Samoa; the Trust Territory of the Pacific Islands; the Virgin Islands; or the Northern Mariana Islands. (1br) “Bona fide nonprofit organization” means an organiza- tion that is described in section 501 (c) (3) of the Internal Revenue Code and exempt from federal income tax under section 501 (a) of the Internal Revenue Code, that is certified by the federal department of housing and urban development or the Wisconsin Housing and Economic Development Authority, and that does all of the following: (a) Promotes affordable housing or provides home ownership education or similar services. (b) Conducts its activities in a manner that serves public or charitable purposes. (c) Receives funding and revenue and charges fees in a manner that does not create an incentive for itself or its employees to act other than in the best interests of its clients. (d) Compensates its employees in a manner that does not cre- ate an incentive for its employees to act other than in the best inter- ests of its clients. (e) Provides to, or identifies for, the borrower residential mort- gage loans with terms favorable to the borrower and comparable to residential mortgage loans and housing assistance provided under government housing assistance programs. (1c) “Branch office” means an office or place of business, other than the principal office, located in this state or another state, where a mortgage loan originator, mortgage banker, or mortgage broker engages in the mortgage loan business subject to this sub- chapter. (1dm) “Depository institution” has the meaning given in 12 USC 1813 (c) (1), but also includes any state or federal credit union. (1e) “Division” means the division of banking. (1f) “Dwelling” has the meaning given in 15 USC 1602 (w). (1g) “Employee” means an individual whose manner and means of performance of work are subject to the right of control of, or are controlled by, a person, and whose compensation for fed- eral income tax purposes is reported, or required to be reported, on a W−2 form issued by the controlling person. (1gh) (a) Except as provided in par. (b), “expungement” means to have stricken or obliterated from a record of criminal conviction all references to the defendant’s name and identity. (b) For a criminal conviction entered in another state, “expungement” has the meaning given under the laws of the state where the criminal conviction is entered. (1h) “Federal banking agency” means the board of governors of the federal reserve system, the U.S. office of the comptroller of the currency, the national credit union administration, or the fed- eral deposit insurance corporation. (1m) “Finds,” with respect to a residential mortgage loan, means to assist a residential mortgage loan applicant in locating a lender for the purpose of obtaining a residential mortgage loan and to make arrangements for a residential mortgage loan appli- cant to obtain a residential mortgage loan, including collecting information on behalf of an applicant and preparing a loan pack- age. (1r) “Housing finance agency” means any authority that is all of the following: (a) Chartered by a state to help meet the affordable housing needs of the residents of the state. (b) Supervised directly or indirectly by the state government. (c) Subject to audit and review by the state in which it operates. (2) “Loan processor or underwriter” means an individual who, as an employee, performs clerical or support duties at the direction of and subject to the supervision and instruction of a mortgage loan originator licensed under s. 224.725 or exempt from licensing under s. 224.725 (1m), which clerical or support duties may include any of the following occurring subsequent to the receipt of a residential mortgage loan application: (a) The receipt, collection, distribution, and analysis of infor- mation common for the processing or underwriting of a residential mortgage loan. (b) Communicating with a residential mortgage loan applicant to obtain the information necessary for the processing or under- writing of a residential mortgage loan, to the extent that the com- munication does not include offering or negotiating loan rates or terms or providing counseling related to loan rates or terms. (3) “Mortgage banker” means a person who does any of the following: (c) Originates residential mortgage loans for itself, as payee on the note evidencing the residential mortgage loan, or for another person. (d) Sells residential mortgage loans or interests in residential mortgage loans to another person. (e) Services residential mortgage loans or provides escrow ser- vices. (4) “Mortgage broker” means a person who, for compensation or gain or in the expectation of compensation or gain, does any of the following but does not make an underwriting decision or close a residential mortgage loan: (a) Assists a person in obtaining or applying to obtain a resi- dential mortgage loan. (b) Holds himself, herself, or itself out as being able to assist a person in obtaining or applying to obtain a residential mortgage loan. (c) Engages in table funding. (6) “Mortgage loan originator” means an individual who, for compensation or gain or in the expectation of compensation or gain, does any of the following: (c) Takes a residential mortgage loan application. (d) Offers or negotiates terms of a residential mortgage loan. (7) “Nationwide mortgage licensing system and registry” means the licensing and registration system developed and main- tained by the Conference of State Bank Supervisors and the Amer- ican Association of Residential Mortgage Regulators for licensed mortgage loan originators and mortgage loan originators exempt from licensing under s. 224.725 (1m) or, if this system is no longer maintained, any system established by the secretary of the federal department of housing and urban development under P.L. 110−289, Title V, section 1509. (8) “Negotiate,” with respect to a residential mortgage loan, means to discuss, explain, or present the terms and conditions, including rates, fees, and other costs, of a residential mortgage loan with or to a residential mortgage loan applicant, but does not Updated 19−20 Wis. Stats. 10 224.722 MISCELLANEOUS BANKING PROVISIONS Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) business in this state and is written on a form that is acceptable to the division. (2) Upon the filing of an application for registered entity status and the payment of the required fee, the division shall make an investigation of the applicant. If the application is complete, and the division has no concerns regarding the applicant’s character, general fitness, or financial responsibility, the division shall regis- ter the applicant as a registered entity. (3) Each registered entity shall register with the division each branch office where a mortgage loan originator sponsored by the registered entity engages in business as a mortgage loan origina- tor. Applications for branch office registration shall be made on forms and in the manner prescribed by the division and shall be accompanied by the same fee as that established by rule for branch offices of mortgage bankers. (5) A depository institution’s registered entity status, and the registration of all of its registered branch offices, expires on December 31 of each year. (6) A registered entity may apply to renew its registered entity status, and the registration of all of its registered branch offices, by timely submitting, on forms and in the manner prescribed by the division, a completed renewal application for the registered entity and for each branch office, along with the applicable fee under sub. (1) or (3). The division may not renew registered entity status under this section unless the division finds that the regis- tered entity continues to meet the minimum standards for registra- tion under this section. (7) If a registered entity fails to satisfy the minimum standards for renewal of its registration, its registration shall expire. If a reg- istered entity fails to satisfy any requirement under sub. (6) for renewing its registration of a branch office, the registration for that branch office shall expire. (8) A registered entity shall cooperate with, and provide access to records and documents required by, the division to carry out examinations in accordance with s. 224.74 (2) of mortgage loan originators that are sponsored by the registered entity. History: 2013 a. 360. 224.725 Licensing of mortgage loan originators. (1) LICENSE REQUIRED. Except as provided in subs. (1m) and (1r), an individual may not regularly engage in the business of a mort- gage loan originator with respect to a residential mortgage loan, or use the title “mortgage loan originator,” advertise, or otherwise portray himself or herself as a mortgage loan originator in this state, unless the individual has been issued by the division, and thereafter maintains, a license under this section. Each licensed mortgage loan originator shall register with, and maintain a valid unique identifier issued by, the nationwide mortgage licensing system and registry. (1m) LICENSE EXEMPTIONS. The following individuals are not required to be licensed under this section: (a) A registered mortgage loan originator. (b) An employee of a federal, state, or local government agency or housing finance agency who acts as a mortgage loan originator only pursuant to his or her official duties as an employee of the federal, state, or local government agency or housing finance agency. (c) An individual engaged solely as a loan processor or under- writer, unless the individual is an independent contractor or repre- sents to the public, through advertising or another means of com- munication such as the use of business cards, stationery, brochures, signs, rate lists, or other promotional items, that the individual can or will perform any of the activities of a mortgage loan originator. (d) An individual who performs real estate brokerage activities only and is licensed under s. 452.03, unless the individual is com- pensated by a lender, mortgage broker, or another mortgage loan originator or by any agent of a lender, mortgage broker, or another mortgage loan originator. (e) An individual solely involved in extensions of credit relat- ing to time−share plans, as defined in 11 USC 101 (53D). (f) An employee of a bona fide nonprofit organization who acts as a mortgage loan originator only in connection with his or her work duties to the bona fide nonprofit organization and only with respect to residential mortgage loans with terms that are favorable to the borrower. (g) A licensed attorney who undertakes activities described in s. 224.71 (6) if all of the following apply: 1. These activities are considered by the Wisconsin Supreme Court to be part of the authorized practice of law within Wiscon- sin. 2. These activities are carried out within an attorney−client relationship. 3. The attorney carries out the activities in compliance with all applicable laws, rules, and ethics standards. (1r) EMPLOYMENT TRANSITION; TEMPORARY AUTHORITY. (a) An individual who was a registered mortgage loan originator immediately prior to becoming employed by, and who remains employed by, a mortgage banker or mortgage broker licensed under this subchapter and who has applied to the division for a mortgage loan originator license is considered to have temporary authority to act as a mortgage loan originator under this sub- chapter, for the period specified in par. (c), if all of the following apply: 1. The individual has not previously had an application for a mortgage loan originator license denied. 2. The individual has not previously had a mortgage loan originator license suspended or revoked in any governmental jurisdiction. 3. The individual has not been subject to, or served with, a cease and desist order in any governmental jurisdiction or by the director of the federal bureau of consumer financial protection under 12 USC 5113 (c). 4. The individual has not been convicted of any crime that dis- qualifies the individual under sub. (3) (b) from issuance of a license. 5. The individual was registered with the nationwide mort- gage licensing system and registry as a loan originator during the one−year period immediately preceding the date on which the individual furnished the information required under sub. (2) (c). (b) An individual who is licensed as a mortgage loan originator in another state, who is employed by a mortgage banker or mort- gage broker licensed under this subchapter, and who has applied to the division for a mortgage loan originator license is considered to have temporary authority to act as a mortgage loan originator under this subchapter, for the period specified in par. (c), if all of the following apply: 1. The individual meets the requirements of par. (a) 1. to 4. 2. The individual was licensed in another state during the 30−day period immediately preceding the date on which the indi- vidual furnished the information required under sub. (2) (c). (c) 1. The period during which an individual described in par. (a) or (b) is considered to have temporary authority to act as a mortgage loan originator under this subchapter shall begin on the date on which the individual furnishes to the nationwide mortgage licensing system and registry the information required under sub. (2) (c) in connection with the application for a mortgage loan orig- inator license under this subchapter. 2. The period that begins under subd. 1. shall end on the earli- est of the following: a. The date on which the individual withdraws the application for a mortgage loan originator license. b. The date on which the division denies, or issues a notice of intent to deny, the application for a mortgage loan originator license. c. The date on which the division grants to the individual a mortgage loan originator license. MISCELLANEOUS BANKING PROVISIONS 224.72511 Updated 19−20 Wis. Stats. Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) d. If the individual’s application is listed on the nationwide mortgage licensing system and registry as incomplete, the date that is 120 days after the date on which the individual applied for a mortgage loan originator license. (d) 1. Any person employing an individual who is considered to have temporary authority to act as a mortgage loan originator under this subsection shall be subject to the requirements of this subchapter to the same extent as if that individual were a licensed mortgage loan originator. 2. Any individual who is considered to have temporary authority to act as a mortgage loan originator under this subsection and who engages in any activity described in s. 224.71 (6) (c) and (d) shall be subject to the requirements of this subchapter to the same extent as if the individual were a licensed mortgage loan originator. (2) LICENSE APPLICATIONS. (a) Applicants for a mortgage loan originator license shall apply to the division, on forms and in the manner prescribed by the division, and shall pay the fee specified in rules promulgated under sub. (8). The division shall require mortgage loan originators to be licensed and registered through the nationwide mortgage licensing system and registry. Forms prescribed by the division under this paragraph may contain any content or requirement that the division, in its discretion, deter- mines necessary and these forms may be modified or updated as necessary by the division to carry out the purposes of this sub- chapter. (b) 1. Except as provided in subd. 2., an application shall include the individual’s social security number. The division may not disclose the individual’s social security number to any person except as follows: a. The division may disclose the social security number to the department of revenue for the sole purpose of requesting certifica- tions under s. 73.0301 and to the department of workforce devel- opment for the sole purpose of requesting certifications under s. 108.227. b. The division may disclose the social security number to the department of children and families in accordance with a memo- randum of understanding under s. 49.857. 2. If an individual does not have a social security number, the individual, as a condition of applying for, or applying to renew, a license under this section, shall submit a statement made or sub- scribed under oath or affirmation to the division that the individual does not have a social security number. The form of the statement shall be prescribed by the department of children and families. Any license issued or renewed in reliance upon a false statement submitted by an applicant under this subdivision is invalid. (c) Any applicant for a license under this section shall furnish to the nationwide mortgage licensing system and registry infor- mation concerning the applicant’s identity, including all of the fol- lowing: 1. Fingerprints for submission to the federal bureau of inves- tigation and to any governmental agency or entity authorized to receive this information, for purposes of a state, national, and international criminal history background check. 2. Personal history and experience in a form prescribed by the nationwide mortgage licensing system and registry, including the submission of authorization for the nationwide mortgage licens- ing system and registry and the division to obtain all of the follow- ing: a. An independent credit report from a consumer reporting agency, as defined in s. 100.54 (1) (c). b. Any information related to any administrative, civil, or criminal findings by any governmental jurisdiction. (3) ISSUANCE OF LICENSE. Except as provided in sub. (6), upon the filing of an application for a mortgage loan originator license and the payment of the fee specified in rules promulgated under sub. (8), the division may issue to the applicant a mortgage loan originator license if the division finds that all of the following apply: (a) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, unless the revo- cation was subsequently and formally vacated. (b) The applicant has not been convicted of, or pled guilty or no contest to, a felony in a domestic, foreign, or military court dur- ing the 7−year period preceding the date of the application or, for a felony involving an act of fraud, dishonesty, breach of trust, or money laundering, at any time preceding the date of the applica- tion. With respect to any conviction for which the applicant has received a pardon or expungement of the conviction, the pardoned or expunged conviction shall not result in an automatic denial or revocation of a mortgage loan originator license. The division may consider the underlying crime, facts, or circumstances of a pardoned or expunged felony conviction when determining the eligibility of an applicant for licensure under this paragraph and par. (c). (c) The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a determination that the mort- gage loan originator will operate honestly, fairly, and efficiently within the purposes of this subchapter. For purposes of this para- graph, an individual has shown that he or she is not financially responsible if he or she has shown a disregard in the management of his or her own financial condition. In making a finding related to an applicant’s financial responsibility for purposes of this para- graph, the division may consider whether the applicant has current outstanding judgments other than those resulting from medical expenses, has current outstanding tax liens or other government liens and filings, or has, within the past 3 years, any pattern of seri- ously delinquent accounts. (d) The applicant has satisfied the education requirements under s. 224.755 (1). (e) The applicant has passed a written test that meets the requirements under s. 224.755 (4). (f) The applicant has met the surety bond requirement under sub. (4). (4) SURETY BOND. (a) Each mortgage loan originator shall be covered by a surety bond in accordance with this subsection. A surety bond of a mortgage banker, mortgage broker, or registered entity meeting the requirements of par. (b) and s. 224.72 (4) (am) or 224.722 (1) may satisfy the requirement under this paragraph for a mortgage loan originator who is sponsored by the mortgage banker, mortgage broker, or registered entity. (b) The penal sum of the surety bond shall provide coverage for each mortgage loan originator in an amount that reflects the dollar amount of residential mortgage loans originated by the mortgage loan originator, as determined by the division. (c) The surety bond shall be in a form prescribed, and satisfy all requirements established, by rule of the division. (d) When an action is commenced on a mortgage loan origina- tor’s surety bond, the division may require the filing of a new surety bond. If an action results in recovery on a mortgage loan originator’s surety bond, the mortgage loan originator shall imme- diately file a new surety bond. (5) LICENSE RENEWAL. (a) A mortgage loan originator may apply to renew a license issued under this section by timely sub- mitting, on forms and in the manner prescribed by the division, a completed renewal application and all required renewal fees. The division may not renew a license issued under this section unless the division finds that all of the following apply: 1. The mortgage loan originator continues to meet the mini- mum standards for license issuance under sub. (3). 2. The mortgage loan originator has satisfied the annual con- tinuing education requirements under s. 224.755 (2). (b) The license of a mortgage loan originator who fails to sat- isfy the minimum standards for license renewal shall expire. The division may, by rule, provide for the reinstatement of expired licenses consistent with the standards established by the nation- wide mortgage licensing system and registry. Updated 19−20 Wis. Stats. 12 224.725 MISCELLANEOUS BANKING PROVISIONS Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) (6) DENIAL OF APPLICATION FOR CERTAIN REASONS. The divi- sion may not issue or renew a license under this section if any of the following applies: (a) The applicant for the issuance or renewal has failed to pro- vide the information required under sub. (2) (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 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. (bm) The department of workforce development has certified under s. 108.227 that the applicant is liable for delinquent unem- ployment insurance contributions. An applicant whose applica- tion for issuance or renewal of a license is denied under this para- graph for delinquent unemployment insurance contributions is entitled to a notice under s. 108.227 (2) (b) 1. b. and hearing under s. 108.227 (5) (a) but is not entitled to any other notice or hearing under this section. (c) The applicant for the issuance or renewal has failed to com- ply, 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 pay- ments 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 under- standing entered into under s. 49.857. An applicant whose license is not issued or renewed under this paragraph for delinquent pay- ments is entitled to a notice and hearing under s. 49.857 but is not entitled to any other notice or hearing under this section. (8) LICENSE PERIOD; FEES. The division shall promulgate rules establishing the license period and the license fees for mortgage loan originators. The fees shall be no less than $250 annually. The rules may not require a license fee for an individual who is eligible for the veterans fee waiver program under s. 45.44. History: 2009 a. 2 ss. 607, 621, 634; 2009 a. 386; 2011 a. 209; 2013 a. 36; 2013 a. 360 ss. 19 to 21, 37 to 41, 44; 2019 a. 65; 2021 a. 239 s. 73. Cross−reference: See also chs. DFI−Bkg 40 and 41, Wis. adm. code. 224.728 Nationwide mortgage licensing system and registry and cooperative arrangements. (1) PARTICIPA- TION. (a) The division shall participate in the nationwide mort- gage licensing system and registry. The division may establish relationships or contracts with the nationwide mortgage licensing system and registry or other entities designated by the nationwide mortgage licensing system and registry to collect and maintain records and process transaction fees or other fees related to licen- sees under this subchapter. With respect to any form, fee, or other information related to the initial issuance or renewal of a mortgage loan originator license under this subchapter, the division may require that any applicant submit such form, fee, or other informa- tion directly to the nationwide mortgage licensing system and reg- istry and may authorize the nationwide mortgage licensing system and registry to perform any function under this subchapter related to the licensing of mortgage loan originators in this state. (b) The division may provide to the nationwide mortgage licensing system and registry any information relating to an appli- cant for initial issuance or renewal of a mortgage loan originator license that the division and the nationwide mortgage licensing system and registry determine to be relevant to the application or to any mortgage loan originator responsibility administered or conducted through the nationwide mortgage licensing system and registry. (c) The division may rely on the nationwide mortgage licens- ing system and registry to establish any dates relating to applica- tion or reporting deadlines for mortgage loan originators, to estab- lish requirements for amending or surrendering mortgage loan originator licenses, or to establish any other requirements applica- ble to mortgage loan originators licensed under this subchapter to the extent the requirements are a condition of the state’s participa- tion in the nationwide mortgage licensing system and registry. (2) CHANNELING INFORMATION. To reduce the points of contact that the division may have to maintain, and to facilitate com- pliance with the requirements under s. 224.725 (2) (c), the division may use the nationwide mortgage licensing system and registry as a channeling agent for requesting and distributing information to and from any source so directed by the division, including the fed- eral bureau of investigation, any state or federal department of jus- tice, or any other governmental agency. (3) CHALLENGE PROCESS. The division shall establish a pro- cess whereby mortgage loan originators may challenge informa- tion maintained by the nationwide mortgage licensing system and registry on behalf of the division. (4) CONFIDENTIAL INFORMATION. (a) If any information or material is considered confidential or privileged under federal or state law before it is provided or disclosed to the nationwide mort- gage licensing system and registry, it shall continue to be confi- dential or privileged after it is provided or disclosed to, and while maintained by, the nationwide mortgage licensing system and reg- istry, except to the extent federal or state law expressly provides otherwise and except as provided in par. (c). Confidential or privi- leged information or material under this paragraph is not subject to any of the following: 1. Disclosure under any federal or state law governing the dis- closure to the public of information held by an officer or an agency of federal or state government. 2. Subpoena or discovery, or admission into evidence, in any private civil action or administrative proceeding, unless the per- son to whom the information or material pertains waives any right or protection of confidentiality or privilege in the information or material. (b) Confidential or privileged information or material under par. (a) may be shared with any state or federal regulatory agency having supervisory authority over mortgage lending without los- ing any right or protection of confidentiality or privilege under federal or state law. (c) This subsection does not prohibit the nationwide mortgage licensing system and registry from providing public access to information or material relating to the employment history of, and publicly adjudicated disciplinary and enforcement actions against, mortgage loan originators. (5) COOPERATIVE ARRANGEMENTS. The division may enter into cooperative, coordinating, or information−sharing arrangements or agreements with other governmental agencies or with associa- tions representing other governmental agencies, including the Conference of State Bank Supervisors and the American Associa- tion of Residential Mortgage Regulators. History: 2009 a. 2. 224.73 Relationship between mortgage loan origina- tor and a mortgage banker, mortgage broker, or regis- tered entity; branch offices. (1) RESPONSIBILITY FOR MORT- GAGE LOAN ORIGINATOR. A mortgage banker, mortgage broker, or registered entity is responsible for, and shall supervise the acts of, a mortgage loan originator or any other person who otherwise acts on behalf of the mortgage banker, mortgage broker, or registered entity. (2) RESTRICTION ON MORTGAGE LOAN ORIGINATOR. (a) If the division suspends or revokes a mortgage banker’s or mortgage broker’s license or a registered entity’s registration, a mortgage loan originator may not act on behalf of that mortgage banker, mortgage broker, or registered entity during the period of suspen- sion or revocation. (b) A mortgage loan originator may act on behalf of only the mortgage banker, mortgage broker, or registered entity with which that mortgage loan originator’s license is associated in the records of the division. A mortgage loan originator’s license may MISCELLANEOUS BANKING PROVISIONS 224.7715 Updated 19−20 Wis. Stats. Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) of the division, promptly deliver such documents to any location within this state specified by the division. 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; 2009 a. 2; 2013 a. 360. Cross−reference: See also ch. DFI−Bkg 42, Wis. adm. code. 224.755 Education and testing requirements for mort- gage loan originators. (1) EDUCATION REQUIREMENTS APPLI- CABLE PRIOR TO LICENSE ISSUANCE. Subject to sub. (3) (a) and (c), an applicant for a license under s. 224.725 (1), prior to the divi- sion’s issuance of the license, shall complete at least 20 hours of education, including a minimum of all of the following: (a) Three hours of federal law and regulations. (b) Three hours of ethics, including instruction on fraud, con- sumer protection, and fair lending issues. (c) Two hours of training related to lending standards for the nontraditional mortgage product marketplace. (2) CONTINUING EDUCATION REQUIREMENTS. Subject to subs. (3) (a), (c), (d), and (f), an applicant for renewal of a license under s. 224.725 (5), prior to the division’s renewal of the license, shall annually complete at least 8 hours of education, including a mini- mum of all of the following: (a) Three hours of federal law and regulations. (b) Two hours of ethics, including instruction on fraud, con- sumer protection, and fair lending issues. (c) Two hours of training related to lending standards for the nontraditional mortgage product marketplace. (3) EDUCATION APPROVAL. (a) No education course may count toward the requirement under sub. (1) or (2) unless the course has been reviewed and approved by the nationwide mortgage licens- ing system and registry based upon reasonable standards, includ- ing review and approval of the course provider. (b) An education course meeting the standard under par. (a) may count toward the requirements under subs. (1) and (2) even if the course is any of the following: 1. Provided by the applicant’s or licensee’s employer, by an entity affiliated with the applicant or licensee by an agency con- tract, or by any subsidiary or affiliate of such an employer or affili- ated entity. 2. Offered through the Internet or another online or electronic medium. 3. Taken in another state. (c) Subject to any rule promulgated under s. 224.72 (7) (bm) or 224.725 (5) (b), if an individual was previously registered as a loan originator under s. 224.72, 2007 stats., or previously licensed as a mortgage loan originator under s. 224.725, the division may not issue or renew a mortgage loan originator license for the indi- vidual under s. 224.725 unless the individual satisfies the require- ments under sub. (1) or (2) or demonstrates to the division’s satis- faction that the individual has completed all education requirements applicable to the individual in the last year in which the individual’s license or registration was valid. (d) Except as provided in any rule promulgated under s. 224.72 (7) (bm), a licensed mortgage loan originator may receive credit for a continuing education course only in the year in which the course is taken and may not take the same approved course in the same or successive years to meet the requirements under sub. (2). (e) A licensed mortgage loan originator who is an approved instructor of an approved continuing education course may receive credit for the licensed mortgage loan originator’s own annual continuing education requirement at the rate of 2 hours of credit for every one hour taught. (f) The division may, by rule, allow an applicant for renewal of a license under s. 224.725 (5) to make up any deficiency in meeting the requirements specified in sub. (2). (4) TESTING REQUIREMENTS. (a) An applicant for a license under s. 224.725 (1), prior to the division’s issuance of the license, shall pass a written test meeting the standards under par. (b). An individual shall answer at least 75 percent of the test questions cor- rectly to achieve a passing test score. (b) 1. No test may satisfy the requirement under par. (a) unless the test is developed by the nationwide mortgage licensing system and registry and administered by a test provider approved by the nationwide mortgage licensing system and registry based upon reasonable standards. 2. A test does not meet the standard under subd. 1. unless the test adequately measures the applicant’s knowledge and compre- hension in appropriate subject areas, including all of the follow- ing: a. Ethics. b. Federal and state law, regulations, and rules pertaining to mortgage origination. c. Federal and state law, regulations, and rules relating to resi- dential mortgage transactions, including instruction on fraud, consumer protection, the nontraditional mortgage product mar- ketplace, and fair lending issues. (c) A written test meeting the standards under par. (b) may sat- isfy the requirement under par. (a) even if the test is provided at the location of the applicant’s employer, any subsidiary or affiliate of the applicant’s employer, or any entity with which the applicant holds an exclusive arrangement to conduct the business of a mort- gage loan originator. (d) An individual may take a test 3 consecutive times, with each retest occurring at least 30 days after the preceding test. If the individual fails 3 consecutive tests, the individual may not retake a test again for at least 6 months. (e) If an individual previously licensed as a mortgage loan originator fails to maintain a valid license for a period of 5 years or longer, not taking into account any time during which the indi- vidual is a registered loan originator, the individual shall retake the test under par. (a). (5) COMPLIANCE RECORDS. A mortgage loan originator shall keep records documenting compliance with this section for at least 4 years. History: 2003 a. 260; 2009 a. 2; 2013 a. 360. 224.76 Mortgage banker, mortgage loan originator, and mortgage broker trust accounts. A mortgage banker, mortgage 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 mort- gage broker shall maintain trust accounts in a depository institu- tion. The mortgage banker or mortgage broker shall notify the division of the location of its trust accounts. 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; 2009 a. 2. Cross−reference: See also ch. DFI−Bkg 42, Wis. adm. code. 224.77 Prohibited acts and practices, and discipline, of mortgage bankers, mortgage loan originators, mort- gage brokers, and registered entities. (1) PROHIBITED ACTS AND PRACTICES. No mortgage banker, mortgage loan origi- nator, mortgage broker, or, with respect to pars. (f), (fg), (g), (gd), and (gh), registered entity, and no member, officer, director, prin- cipal, partner, trustee, or other agent of a mortgage banker, mort- gage broker, or registered entity may do any of the following: (a) Make a material misstatement, or knowingly omit a mate- rial fact, in a license application or in other information or reports furnished to the division, to the nationwide mortgage licensing system and registry, or to any other governmental agency, includ- ing failing to disclose a criminal conviction or any disciplinary action taken by a state or federal regulatory agency. (b) Make, in any manner, any materially false or deceptive statement or representation, including engaging in bait and switch Updated 19−20 Wis. Stats. 16 224.77 MISCELLANEOUS BANKING PROVISIONS Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) advertising or falsely representing residential mortgage loan rates, points, or other financing terms or conditions. (c) Make a false, deceptive, or misleading promise relating to the services being offered or that influences, persuades, or induces a client to act to his or her detriment. (d) Pursue a continued and flagrant course of misrepresenta- tion, or make false promises, whether directly or through agents or advertising. (e) Act for more than one party in a transaction without the knowledge and consent of all parties on whose behalf the mort- gage banker, mortgage loan originator, or mortgage broker is act- ing. (f) Accept a commission, money, or other thing of value for performing an act as a mortgage loan originator unless the pay- ment is from the mortgage banker, mortgage broker, or registered entity with whom the mortgage loan originator’s license is associ- ated, as identified in the records of the division at the time the act is performed. (fg) As a mortgage banker, mortgage broker, or registered entity, pay a commission, money, or other thing of value to any person for performing an act as a mortgage loan originator unless the mortgage loan originator’s license is associated with the mort- gage banker, mortgage broker, or registered entity in the records of the division at the time the act is performed. (g) As a mortgage loan originator, represent or attempt to rep- resent a mortgage banker, mortgage broker, or registered entity other than the mortgage banker, mortgage broker, or registered entity with whom the mortgage loan originator’s license was asso- ciated, as identified in the records of the division at the time the representation or attempted representation occurs. (gd) As a mortgage banker, mortgage broker, or registered entity, permit a person who is not licensed under this subchapter to act as a mortgage loan originator on behalf of the mortgage banker, mortgage broker, or registered entity. (gh) As a mortgage banker, mortgage broker, or registered entity, permit a person whose mortgage loan originator license is not associated in the records of the division with the mortgage banker, mortgage broker, or registered entity to act as a mortgage loan originator on behalf of the mortgage banker, mortgage bro- ker, or registered entity. (gp) As a mortgage banker or mortgage broker, conduct busi- ness at or from a principal office or branch office that is not licensed under this subchapter. (h) Fail, within a reasonable time, to account for or remit any moneys coming into the mortgage banker’s, mortgage loan origi- nator’s, or mortgage broker’s possession that belong to another person. (i) Demonstrate a lack of competency to act as a mortgage banker, mortgage loan originator, or mortgage broker in a way that safeguards the interests of the public. (j) Pay or offer to pay a commission, money, or other thing of value to any person for acts or services in violation of this sub- chapter. (jm) Pay a person who is not licensed under this subchapter a commission, money, or other thing of value for performing an act as a mortgage banker, mortgage loan originator, or mortgage bro- ker. (k) Violate any provision of this subchapter, ch. 138, or any federal or state statute, rule, or regulation that relates to practice as a mortgage banker, mortgage loan originator, or mortgage bro- ker. (L) Engage in conduct that violates a standard of professional behavior which, through professional experience, has become established for mortgage bankers, mortgage loan originators, or mortgage brokers. (m) Engage in conduct, whether of the same or a different char- acter than specified elsewhere in this section, that constitutes improper, fraudulent, or dishonest dealing. (o) In the course of practice as a mortgage banker, mortgage loan originator, or mortgage broker, except in relation to housing designed to meet the needs of elderly individuals, treat a person unequally solely because of sex, race, color, handicap, sexual ori- entation, as defined in s. 111.32 (13m), religion, national origin, age, or ancestry, the person’s lawful source of income, or the sex, marital status, or status as a victim of domestic abuse, sexual assault, or stalking, as defined in s. 106.50 (1m) (u), of the person maintaining a household. (p) Intentionally encourage or discourage any person from purchasing or renting real estate on the basis of race. (q) Because of the age or location of the property or the race of the residential mortgage loan applicant, rather than because of the credit worthiness of the applicant and the condition of the property securing the loan: 1. Refuse to negotiate, to offer, or to attempt to negotiate a res- idential mortgage loan or commitment for a residential mortgage loan, or refuse to find a residential mortgage loan. 2. Find a residential mortgage loan or negotiate a residential mortgage loan on terms less favorable than are usually offered. (s) Violate, or fail to comply with, any lawful order of the divi- sion. (sm) As a mortgage loan originator, fail to identify his or her name and sign the mortgage loan application for a loan originated by him or her. (sn) As a mortgage banker, mortgage broker, or mortgage loan originator, fail to clearly place his, her, or its unique identifier on all residential mortgage loan application forms, solicitations, and advertisements, including business cards, Internet sites, email sig- nature blocks, and on all other documents specified by rule of the division. (sq) As a mortgage banker, mortgage broker, or mortgage loan originator, use any solicitation or advertisement to which any of the following applies: 1. The solicitation or advertisement misrepresents that the provider is, or is affiliated with, any governmental entity or other organization. 2. The solicitation or advertisement misrepresents that the product is or relates to a government benefit, or is endorsed, spon- sored by, or affiliated with any government or government− related program, including through the use of formats, symbols, or logos that resemble those of such entity, organization, or pro- gram. 3. The solicitation or advertisement does not clearly and con- spicuously identify the name of the mortgage broker or mortgage banker or, if a mortgage loan originator is sponsored by a regis- tered entity, the registered entity. (t) Impede an investigation or examination of the division or deny the division access to any books, records, or other informa- tion which the division is authorized to obtain under s. 224.74 (2), 224.75 (6), or any other provision of this subchapter. (tm) Make a material misstatement, or knowingly omit a mate- rial fact, or knowingly mutilate, destroy, or secrete any books, records, or other information requested by the division, in connec- tion with any investigation or examination conducted by the divi- sion or another governmental agency. (u) Solicit or enter into a contract with a borrower that provides in substance that the mortgage banker, mortgage broker, or mort- gage loan originator may earn a fee or commission through “best efforts” to obtain a residential mortgage loan even though no resi- dential mortgage loan is actually obtained for the borrower. MISCELLANEOUS BANKING PROVISIONS 224.7717 Updated 19−20 Wis. Stats. Updated 2019−20 Wis. Stats. Published and certified under s. 35.18. June 4, 2022. 2019−20 Wisconsin Statutes updated through 2021 Wis. Act 267, except 2021 Wis. Act 258, and through all Supreme Court and Controlled Substances Board Orders filed before and in effect on June 4, 2022. Published and certified under s. 35.18. Changes effective after June 4, 2022, are designated by NOTES. (Published 6−4−22) (um) Solicit, advertise, or enter into a contract for specific interest rates, points, or other financing terms unless the terms are actually available at the time of soliciting, advertising, or contract- ing. (v) Assist, aid, or abet any person in unlawfully conducting business under this subchapter without a valid license. (w) Fail to make disclosures required under this subchapter or required under any other applicable state or federal law, rule, or regulation. (x) Withhold any payment or make any payment, threat, or promise, directly or indirectly, to any person for the purpose of influencing the independent judgment of the person in connection with a residential mortgage loan, or withhold any payment or make any payment, threat, or promise, directly or indirectly, to any appraiser of a property for the purpose of influencing the inde- pendent judgment of the appraiser with respect to the value of the property. (y) Cause or require a borrower to obtain property insurance coverage in an amount exceeding the replacement cost of improvements on the property, as determined by the property insurer. (1m) ADMINISTRATIVE FORFEITURE AND HEARING RIGHTS. (a) The division may assess against any person who violates this sub- chapter a forfeiture of not more than $25,000 for each violation and may further order restitution to any person suffering loss as a result of the violation. (b) A person may contest an assessment of forfeiture, or a res- titution order, under par. (a) by sending, within 10 days after receipt of notice of the assessment or order 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 divi- sion of hearings and appeals may designate a hearing examiner to preside over the case and recommend a decision to the administra- tor under s. 227.46. The decision of the administrator of the divi- sion of hearings and appeals shall be the final administrative deci- sion. 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. (c) 1. All forfeitures shall be paid to the division of banking within 10 days after receipt of notice of assessment or, if the forfei- ture is contested under par. (b), within 10 days after receipt of the final decision after exhaustion of administrative review. The divi- sion of banking shall remit all forfeitures paid to the secretary of administration for deposit in the school fund. 2. All amounts ordered as restitution shall be paid to the per- son suffering loss within 10 days after receipt of notice of the order or, if the restitution order is contested under par. (b), within 10 days after receipt of the final decision after exhaustion of adminis- trative review. (d) The attorney general may bring an action in the name of the state to collect any forfeiture imposed, or amount ordered as resti- tution, under this subsection if the forfeiture or restitution amount 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 or restitution amount has been paid. (2m) DIVISION ACTION ON LICENSE. (a) 1. In addition to any other authority provided to the division under this subchapter, if the division finds that a mortgage banker, mortgage loan origina- tor, or mortgage broker has violated any provision of this sub- chapter or any rule promulgated by the division under this sub- chapter, or a registered entity has violated any applicable provision of this subchapter, the division may do any of the fol- lowing: a. Deny any application for initial issuance or renewal of a license or registration. b. Revoke, suspend, limit, or condition any license of the mortgage banker, mortgage loan originator, or mortgage broker or registration of the registered entity. c. Reprimand the mortgage banker, mortgage loan originator, or mortgage broker. 2. The division may take any action specified in subd. 1. against a mortgage banker or mortgage broker based upon any act or omission described in subd. 1. of 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. (b) In addition to any other authority provided to the division under this subchapter, if the division finds that an applicant for ini- tial issuance or renewal of a license under this subchapter made any material misstatement in the application or withheld material information, or that the applicant no longer satisfies the require- ments under s. 224.72 or 224.725 for issuance or renewal of the license, the division may deny the application or, if the license has already been issued, suspend or revoke the license. (c) The division shall restrict or suspend the license of a mort- gage banker, mortgage loan originator, or mortgage broker if the licensee 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 individual whose license 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. (d) The division shall revoke the license of a mortgage banker, mortgage loan originator, or mortgage broker if the department of revenue certifies under s. 73.0301 that the licensee is liable for delinquent taxes. A licensee whose license 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 sec- tion. (e) The division shall revoke the license of a mortgage banker, mortgage loan originator, or mortgage broker if the department of workforce development certifies under s. 108.227 that the licensee is liable for delinquent unemployment insurance contri- butions. A licensee whose license is revoked under this subsec- tion for delinquent unemployment insurance contributions is enti- tled to a notice under s. 108.227 (2) (b) 1. b. and a hearing under s. 108.227 (5) (a) but is not entitled to any other notice, hearing or review under this section. (3) ORDERS OF THE DIVISION. (a) Orders to prevent or correct actions. The division may issue general and special orders, including temporary orders that become immediately effective, to prevent or correct actions by a mortgage banker, mortgage loan originator, or mortgage broker that constitute a violation of any provision of this subchapter or of any rule promulgated under this subchapter, including special orders that do any of the following: 1. Direct a mortgage banker, mortgage loan originator, or mortgage broker to cease and desist from engaging in a particular activity, from conducting business, or from otherwise violating any provision of this subchapter or any rule promulgated under this subchapter. 2. Direct a mortgage banker, mortgage loan originator, or mortgage broker to refund or remit to a residential mortgage loan applicant or borrower amounts that the mortgage banker, mort-