224.06(5) (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.
224.06(6) (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.
224.06(7) (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 consecutive 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.
224.07 224.07 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 employe thereof, who violates the provisions of this section shall be guilty of a misdemeanor and punished as provided in s. 939.61.
224.075 224.075 Financially related services tie-ins. In any transaction conducted by a bank, bank holding company or a subsidiary 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 holding 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).
224.075 History History: 1985 a. 325; 1995 a. 27.
224.092 224.092 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.
224.092 History History: 1991 a. 78.
224.093 224.093 Customer access to credit reports. 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, 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.
224.093 History History: 1993 a. 425.
224.10 224.10 Indian loan funds.
224.10(1)(1)Administration in trust as a loan fund. The loan funds of any Indian tribe which are transferred to the custody of such tribe by the United States, including any outstanding loan accounts, shall be administered as follows:
224.10(1)(a) (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.
224.10(1)(b) (b) Management of an Indian loan fund shall be vested in a board of trustees, which may hire necessary personnel to administer 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.
224.10(1)(c) (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 interior as of June 17, 1954, and their spouses and descendants and to any additional classes recommended by the trustees.
224.10(3) (3)Rules of board of trustees. The board of trustees of an Indian loan fund may establish rules for the administration of the fund.
224.10 History History: 1975 c. 422 s. 163; 1987 a. 252.
subch. II of ch. 224 SUBCHAPTER II
MORTGAGE BANKERS, LOAN ORIGINATORS AND LOAN SOLICITORS
224.70 224.70 Administration. This subchapter shall be administered by the department.
224.70 History History: 1995 a. 27.
224.71 224.71 Definitions. In this subchapter:
224.71(1g) (1g) "Loan" means a loan secured by a lien or mortgage, or equivalent security interest, on real property.
224.71(1r) (1r)
224.71(1r)(a)(a) "Loan originator" means a person who is not excluded by par. (b) and who, on behalf of a mortgage banker, finds a loan or negotiates a land contract, loan or commitment for a loan.
224.71(1r)(b) (b) "Loan originator" does not include any of the following:
224.71(1r)(b)1. 1. The Wisconsin housing and economic development authority, or a bank, trust company, savings bank, savings and loan association, insurance company, or a land mortgage or farm loan association organized under the laws of this state or of the United States, when engaged in the transaction of business within the scope of its corporate powers as provided by law.
224.71(1r)(b)2. 2. A credit union which negotiates loans or any licensee under ch. 138 which negotiates loans or any licensed attorney who, incidental to the general practice of law, negotiates or offers or attempts to negotiate a loan.
224.71(1r)(b)3. 3. Employes of persons described in subds. 1. and 2. if the employe is performing his or her duties as an employe.
224.71(1r)(b)4. 4. A landlord who, in connection with leasing real property, makes a loan to a tenant that is secured by leasehold improvements that are fixtures or improvements to real property.
224.71(1r)(b)5. 5. An employe or agent of persons described in subd. 4. if the employe or agent is performing his or her duties in making leasehold improvement loans in connection with leasing real property.
224.71(2) (2)
224.71(2)(a)(a) "Loan solicitor" means a person who is not excluded by par. (b) and who, on behalf of a loan applicant or an investor and for commission, money or other thing of value, finds a loan or negotiates a land contract, loan or commitment for a loan.
224.71(2)(b) (b) "Loan solicitor" does not include any of the following:
224.71(2)(b)1. 1. The Wisconsin housing and economic development authority, or a bank, trust company, savings bank, savings and loan association, insurance company, or a land mortgage or farm loan association organized under the laws of this state or of the United States, when engaged in the transaction of business within the scope of its corporate powers as provided by law.
224.71(2)(b)2. 2. A credit union which negotiates loans or any licensee under ch. 138 which negotiates loans or any licensed attorney who, incidental to the general practice of law, negotiates or offers or attempts to negotiate a loan.
224.71(2)(b)3. 3. Employes of persons described in subds. 1. and 2. if the employe is performing his or her duties as an employe.
224.71(3) (3)
224.71(3)(a)(a) "Mortgage banker" means a person who is not excluded by par. (b) and who does any of the following:
224.71(3)(a)1. 1. Originates loans for itself, as payee on the note evidencing the loan, or for another person.
224.71(3)(a)2. 2. Sells loans or interests in loans to another person.
224.71(3)(a)3. 3. Services loans or land contracts or provides escrow services, for another person and for commission, money or other thing of value.
224.71(3)(b) (b) "Mortgage banker" does not include any of the following:
224.71(3)(b)1. 1. The Wisconsin housing and economic development authority, or a bank, trust company, savings bank, savings and loan association, insurance company, or a land mortgage or farm loan association organized under the laws of this state or of the United States, when engaged in the transaction of business within the scope of its corporate powers as provided by law.
224.71(3)(b)2. 2. A credit union which negotiates loans or any licensee under ch. 138 which negotiates loans or any licensed attorney who, incidental to the general practice of law, negotiates or offers or attempts to negotiate a loan.
224.71(3)(b)3. 3. Employes of persons described in subds. 1. and 2. if the employe is performing his or her duties as an employe.
224.71(3)(b)4. 4. A landlord who, in connection with leasing real property, makes a loan to a tenant that is secured by leasehold improvements that are fixtures or improvements to real property.
224.71(3)(b)5. 5. An employe or agent of persons described in subd. 4. if the employe or agent is performing his or her duties in making leasehold improvement loans in connection with leasing real property.
224.71 History History: 1987 a. 359; 1987 a. 403 s. 182; Stats. 1987 s. 440.71; 1989 a. 45; 1995 a. 27 s. 6590; Stats. 1995 s. 224.71.
224.71 Annotation Wisconsin's new mortgage banking law. Thompson. Wis. Law. March 1989.
224.72 224.72 Registration of mortgage bankers, loan originators and loan solicitors.
224.72(1) (1)Definitions. In this section:
224.72(1)(a) (a) "Net worth" means total tangible assets less total liabilities of a person, or, if the person is a natural person, total tangible assets less total liabilities exclusive of the person's principal residence and its furnishings and personal use vehicles.
224.72(1)(b) (b) "Warehouse line of credit" means a line of credit to fund loans held for sale to other persons.
224.72(1m) (1m)Registration required. A person may not act as a mortgage banker, loan originator or loan solicitor, use the title "mortgage banker", "loan originator" or "loan solicitor", or advertise or otherwise portray himself or herself as a mortgage banker, loan originator or loan solicitor, unless the person has been issued a certificate of registration from the department.
224.72(2) (2)Applying for registration. A person desiring to act as a mortgage banker, loan originator or loan solicitor shall apply for a certificate of registration to the department on forms prescribed by the department and shall pay the fee specified under sub. (8) (a). An application shall satisfy all of the following:
224.72(2)(a) (a) Verified. The applicant shall verify the application, and if the applicant is a partnership, limited liability company or corporation, the application shall be verified as follows:
224.72(2)(a)1. 1. By at least 2 partners of the partnership.
224.72(2)(a)2. 2. By at least 2 officers of the corporation who have authority to verify the application.
224.72(2)(a)3. 3. By at least 2 members of the limited liability company.
224.72(2)(b) (b) Identity of partner, member or officer. If the applicant is a partnership, limited liability company or corporation, the application shall identify each partner, member or officer who will use the title "mortgage banker", "loan originator" or "loan solicitor".
224.72(3) (3)Additional requirement for loan originator applicant. In addition to the requirements of sub. (2), an applicant for registration as a loan originator shall include in the application the name of the mortgage banker who will employ the loan originator.
224.72(4) (4)Additional requirement for mortgage banker applicant. In addition to the requirements of sub. (2), an applicant for registration as a mortgage banker shall do one of the following:
224.72(4)(a) (a) Approval by federal agency. Submit evidence which shows, to the department's satisfaction, that the federal department of housing and urban development has approved the applicant as a mortgagee.
224.72(4)(b) (b) File a bond. File with the department a bond which is in the amount of $25,000, is furnished by a company authorized to do business in this state and is approved by the department.
224.72(4)(c) (c) Minimum net worth. Submit evidence that establishes, to the department's satisfaction, a minimum net worth of $25,000 and a warehouse line of credit of not less than $250,000 or a minimum net worth of $100,000.
224.72(5) (5)Completion of registration.
224.72(5)(a)(a) Loan originator and loan solicitor. Upon receiving a properly completed application for registration as a loan originator or loan solicitor and the fee specified in sub. (8) (a), the department shall issue to the applicant a certificate of registration as a loan originator or loan solicitor.
224.72(5)(b) (b) Mortgage banker.
224.72(5)(b)1.1. Upon receiving a properly completed application for registration as a mortgage banker, the fee specified [in] sub. (8) (b) and, except as provided in s. 224.85 (2), satisfactory evidence of compliance with sub. (4), the department shall issue to the applicant a temporary certificate of registration as a mortgage banker. A temporary certificate of registration is valid for 6 months after the date of issuance.
224.72 Note NOTE: The bracketed language was deleted by 1995 Wis. Act 465 without being shown as stricken. No change was intended. Corrective legislation is pending.
224.72(5)(b)2. 2. If within 6 months after the date of issuance of a temporary certificate of registration under subd. 1. the holder of the temporary certificate of registration notifies the department that he or she is acting as a mortgage banker and pays to the department the fee specified in sub. (8) (a), the department shall issue to the person a certificate of registration as a mortgage banker.
224.72(7) (7)Renewal of registration. A loan originator, loan solicitor or mortgage banker shall renew a certificate of registration by submitting to the department a renewal application and the applicable renewal fee specified under sub. (8) (c) on or before the applicable renewal date specified under sub. (8) (c). Except as provided in s. 224.85 (2), an applicant for renewal of a certificate of registration as a mortgage banker shall, as part of the application, refile a bond that satisfies sub. (4) (b) or resubmit evidence that satisfies sub. (4) (a) or (c).
224.72(8) (8)Fees.
224.72(8)(a)(a) Each applicant shall pay an initial registration fee of $39 to the department. If an examination is required, the applicant shall pay an examination fee, in an amount set by the department, in addition to the initial registration fee.
224.72(8)(b) (b) An applicant for registration as a mortgage banker shall pay a temporary registration fee of $10 to the department.
224.72(8)(c) (c) The renewal dates and renewal fees for registrations are as follows:
224.72(8)(c)1. 1. Loan originator: January 1 of each odd-numbered year; $94.
224.72(8)(c)2. 2. Loan solicitor: January 1 of each odd-numbered year; $105.
224.72(8)(c)3. 3. Mortgage banker: January 1 of each odd-numbered year; $486.
224.72(8)(d) (d) The fee for a transfer of a loan originator registration is $5.
224.72 History History: 1987 a. 359; 1987 a. 403 ss. 182, 256; Stats. 1987 s. 440.72; 1989 a. 45; 1991 a. 39; 1993 a. 112; 1995 a. 27 ss. 6210, 6527m, 6528m, 6535m, 6591 to 6593; Stats. 1995 s. 224.72; 1995 a. 465.
224.73 224.73 Relationship between loan originator and mortgage banker.
224.73(1)(1)Responsibility for loan originator. A mortgage banker is responsible for, and shall supervise the acts of, a loan originator who registers under s. 224.72 (3) as an employe of the mortgage banker or a loan originator or any other person who otherwise acts on behalf of the mortgage banker.
224.73(2) (2)Restriction on loan originator. If the department suspends or revokes a mortgage banker's certificate of registration, a loan originator may not act on behalf of that mortgage banker during the period of suspension or revocation.
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