DFI-CU 54.03(3)
(3) The term of a mortgage loan may not exceed 30 years commencing the latter of:
DFI-CU 54.03(3)(e)
(e) The date of any interest rate increase under the terms of a note permitting or requiring changes in the interest rate.
DFI-CU 54.03(4)
(4) For good cause shown, the director may waive any limitations of this section.
DFI-CU 54.03 History
History:
Cr.
Register, June, 1990, No. 414, eff. 7-1-90; r. (1) renum. (2) to (4) to be (1) to (3) and am.,
Register, October, 1997, No. 502, eff. 11-1-97;
CR 20-052: cr. (4) Register June 2021 No. 786, eff. 7-1-21. DFI-CU 54.04
DFI-CU 54.04
Loan policies. The board of directors shall adopt written policies to direct the real estate lending activities. The loan policies shall be reviewed at least annually. The policies shall address, at a minimum, the following:
DFI-CU 54.04(1)
(1) Types of real estate mortgage loans that will be offered.
DFI-CU 54.04(2)
(2) Percentage of assets to be invested in real estate loans by category.
DFI-CU 54.04(5)
(5) Appropriate limits and standards of creditworthiness applicable to real estate loan approvals.
DFI-CU 54.04 History
History:
Cr.
Register, June, 1990, No. 414, eff. 7-1-90; am. (2) (4) (5) cr. (7) to (9),
Register, October, 1997, No. 502, eff. 11-1-97.
DFI-CU 54.05
DFI-CU 54.05
Required documentation. Each real estate loan shall be supported by the following documents and information:
DFI-CU 54.05(1)
(1) A note properly executed, together with the related mortgage properly executed and recorded.
DFI-CU 54.05(2)
(2) Documentation establishing the quality and validity of the credit union's lien position by one of the following:
DFI-CU 54.05(2)(a)1.
1. A title policy in favor of the credit union covering its interest as mortgagee in the property; or
DFI-CU 54.05(2)(a)2.
2. An abstract showing title in the borrower's name and the credit union's mortgage, together with an attorney's opinion indicating the credit union's lien position.
DFI-CU 54.05(2)(c)
(c) If the credit union has obtained the supporting documentation in accordance with par.
(a) or
(b), a subsequent extension of credit secured with the same real estate mortgage may be supported by a letter report from the title or abstract company, or a certified abstract showing the credit union's interest in the property as of the most recent extension of credit. No additional title documentation is required in connection with refinancing a loan on which no additional funds are advanced. Accrued interest debits, refinance charges and costs for insurance premiums are not considered additional advances.
DFI-CU 54.05(4)
(4) A copy of insurance policies, with a mortgage clause payable to the credit union, indicating all improvements on the real estate are insured against fire and casualty loss. The required insurance coverage shall be the lesser of the full replacement value of the improvements or the outstanding balance of the loan. Proof of insurance may be maintained through a third party contract.
DFI-CU 54.05(5)
(5) Evidence of the status of the payment of real estate taxes acceptable to the board of directors as defined by policy.
DFI-CU 54.05(6)
(6) Documentation of types of existing closed-end or open-end mortgages and balances or potential balances outstanding from all other lenders holding liens senior to the credit union mortgage.
DFI-CU 54.05(7)
(7) The credit union shall maintain a general ledger accounting system which clearly segregates real estate loans for reporting and statutory calculation purposes.
DFI-CU 54.05 History
History:
Cr.
Register, June, 1990, No. 414, eff. 7-1-90; am. (2) (intro.), (b), (3) to (5),
Register, October, 1997, No. 502, eff. 11-1-97;
2013 Wis. Act 277: am. (2) (b) 3.
Register May 2014 No. 701, eff. 6-1-14.
