SB668: Bill Text

SB668,,641 220.02 (2) (c) Sellers of checks Money transmitters under ch. 217.

SB668,134 Section 134. 220.02 (3) of the statutes is amended to read:

SB668,,643 220.02 (3) It is the intent of sub. (2) to give the division jurisdiction to enforce and carry out all laws relating to banks or banking in this state, including those relating to state banks, savings banks, savings and loan associations, and trust company banks, and also all laws relating to small loan companies or other loan companies or agencies, finance companies, insurance premium finance companies, motor vehicle dealers, adjustment service companies, community currency exchanges, mortgage bankers, mortgage loan originators, mortgage brokers, and collection agencies and those relating to sellers of checks money transmitters under ch. 217, whether doing business as corporations, individuals, or otherwise, but to exclude laws relating to credit unions.

SB668,135 Section 135. 220.06 (1m) of the statutes is amended to read:

SB668,,645 220.06 (1m) No division employee may examine a bank or licensee in which that person is interested as a stockholder, officer, or employee. No division employee may examine a bank or licensee located in the same village, city, or county with any bank or licensee in which that person is so interested. Employees in the division, and each member and employee of the banking institutions review board, shall keep secret all facts and information obtained in the course of examinations or from reports not under s. 221.1002 (1) filed by a bank or licensee with the division, except so far as the public duty of the person requires reporting upon or taking special action regarding the affairs of any bank or licensee, and except when called as a witness in any criminal proceeding or trial in a court of justice. The division may furnish to the federal deposit insurance corporation, to a federal home loan bank, or to any regulatory authority for state or federal financial institutions, insurance, or securities, or to any organization the membership of which is made up of regulatory authorities for state or federal financial institutions, insurance, or securities, a copy of any examination made of any such bank or licensee or of any report made by such bank or licensee and may give access to and disclose to the corporation or, to any regulatory authority for state or federal financial institutions, insurance, or securities, or to any organization the membership of which is made up of regulatory authorities for state or federal financial institutions, insurance, or securities, any information possessed by the division, or to a federal home loan bank any information created by the division, with reference to the conditions or affairs of any such insured bank or licensee if the regulatory authority agrees to treat all information received with the same degree of confidentiality as applies to reports of examination that are in the custody of the division.

SB668,136 Section 136. 224.35 (1g) of the statutes is created to read:

SB668,,647 224.35 (1g) Definitions. In this section:

SB668,,648 (a) “Division” means the division of banking.

SB668,,649 (b) “Nationwide multistate licensing system and registry” means the multistate system developed by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators and owned and operated by the State Regulatory Registry, LLC, or any successor or affiliate entity, for the licensing and registration of persons in financial services industries.

SB668,,650 (c) “Reinstatement period” means the period beginning on the first day of January and ending on the last day of February of the year following the expiration of a license, or such other period prescribed by the division.

SB668,,651 (d) “Renewal period” means the period beginning on November 1 and ending on December 31, or such other period prescribed by the division.

SB668,,652 (e) “Unique identifier” means a number or other identifier assigned by protocols established by the nationwide multistate licensing system and registry.

SB668,137 Section 137. 224.35 (1m) (bm) of the statutes is created to read:

SB668,,654 224.35 (1m) (bm) The division may require an applicant or licensee, or an individual with the power to direct the management or policies of the applicant or licensee, to submit an independent credit report from a consumer reporting agency, an investigative background report prepared by an independent search firm, fingerprints, or any other personal or professional history information deemed necessary by the division. The division may require fingerprints for the purposes of identifying the individual and to determine whether the individual has a record of warrants, arrests, or convictions in any jurisdiction. Fingerprints may be submitted, directly or as provided in s. 224.35 (2), to the federal bureau of investigation and any government agency or entity authorized to receive this information for a state and national criminal history record check.

SB668,138 Section 138. 224.35 (1r), (6), (7) and (8) of the statutes are created to read:

SB668,,656 224.35 (1r) Applicable licensed activities. The division shall utilize the nationwide multistate licensing system and registry, as provided in this section, with respect to applicants and licensees under ss. 138.09, 138.12, 138.14, 217.05, 218.0114 except for motor vehicle dealers within the meaning of s. 218.0101 (23), 218.02, 218.04, 218.05, 224.72, and 224.725 and with respect to applicants and registrants under s. 224.722.

SB668,,657 (6) Changes to information. A licensee shall keep current and accurate all material information on file with the division and the nationwide multistate licensing system and registry. If the information changes in any material respect, the licensee must notify the division and the nationwide multistate licensing system of the change within 10 days after the change.

SB668,,658 (7) License renewal and reinstatement. (a) During the renewal period, a licensee may renew a license by submitting all of the following through the nationwide multistate licensing system and registry or in such other manner as directed by the division:

SB668,,659 1. A renewal application, in a form and manner acceptable to the division.

SB668,,660 2. The annual fee required to maintain the license, if applicable.

SB668,,661 3. The bond or insurance information required to maintain the license, if applicable.

SB668,,662 4. Certification of the completion of continuing education courses required to maintain the license, if applicable.

SB668,,663 (b) During the reinstatement period, a licensee may reinstate a license by submitting all the items in par. (a) 1. to 4., plus an additional nonrefundable fee of $100, through the nationwide multistate licensing system and registry or in such other manner as directed by the division.

SB668,,664 (c) After the reinstatement period, an expired license may not be reinstated.

SB668,,665 (d) The division may deny an application to renew a license if any fact or condition exists that would warrant revocation or suspension of the license.

SB668,,666 (e) The renewal term is for a period of one year, beginning January 1 of each year after the initial term.

SB668,,667 (8) Annual reports and financial statements. (a) Applicability. Paragraphs (b) and (c) apply to licensees under ss. 138.09, 138.12, 138.14, 218.02, 218.04, and 218.05. Licensees under s. 218.0114, except for motor vehicle dealers within the meaning of s. 218.0101 (23), must submit financial statements under par. (c), but they are not required to submit annual reports under par. (b).

SB668,,668 (b) Annual reports. Each licensee shall annually, on or before March 31, submit through the nationwide multistate licensing system and registry or in such other manner as directed by the division, a report giving such reasonable and relevant information as the division may require concerning the business transacted by the licensee. This report shall be made in the form and manner prescribed by the division.

SB668,,669 (c) Financial statements. Each licensee shall annually, no later than 90 days following the end of its most recently completed fiscal year, submit through the nationwide multistate licensing system and registry or in such other manner as directed by the division, a copy of the licensee’s financial statements for that fiscal year. The financial statements shall include a balance sheet and income statement and shall be prepared in accordance with generally accepted accounting principles.

SB668,139 Section 139. 224.71 (7) of the statutes is amended to read:

SB668,,671 224.71 (7) “Nationwide mortgage multistate licensing system and registry” means the licensing and registration system developed and maintained by the Conference of State Bank Supervisors and the American 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 has the meaning given in s. 224.35 (1g) (b).

SB668,140 Section 140. 224.71 (13g) (b) of the statutes is amended to read:

SB668,,673 224.71 (13g) (b) Registered with, and who maintains a unique identifier through, the nationwide mortgage multistate licensing system and registry.

SB668,141 Section 141. 224.71 (18) of the statutes is amended to read:

SB668,,675 224.71 (18) “Unique identifier” means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry has the meaning given in s. 224.35 (1g) (e).

SB668,142 Section 142. 224.72 (2) (am) of the statutes is amended to read:

SB668,,677 224.72 (2) (am) Applicants for a mortgage banker or mortgage broker 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 utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to mortgage bankers and mortgage brokers. Forms prescribed by the division under this paragraph may contain any content or requirement that the division, in its discretion, determines necessary and these forms may be modified or updated as necessary by the division to carry out the purposes of this subchapter.

SB668,143 Section 143. 224.72 (2) (c) 2. c. of the statutes is created to read:

SB668,,679 224.72 (2) (c) 2. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

SB668,144 Section 144. 224.72 (7) (title) of the statutes is amended to read:

SB668,,681 224.72 (7) (title) License renewal and reinstatement.

SB668,145 Section 145. 224.72 (7) (am) of the statutes is renumbered 224.72 (7) and amended to read:

SB668,,683 224.72 (7) A mortgage broker or mortgage banker may apply to renew or reinstate a license issued under this section by timely submitting, 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 the mortgage broker or mortgage banker continues to meet the minimum standards for license issuance under this section as provided in s. 224.35 (7).

SB668,146 Section 146. 224.72 (7) (bm) of the statutes is repealed.

SB668,147 Section 147. 224.725 (1) of the statutes is amended to read:

SB668,,686 224.725 (1) License required. Except as provided in subs. (1m) and (1r), an individual may not regularly engage in the business of a mortgage 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 multistate licensing system and registry.

SB668,148 Section 148. 224.725 (1r) (a) 5. of the statutes is amended to read:

SB668,,688 224.725 (1r) (a) 5. The individual was registered with the nationwide mortgage multistate 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).

SB668,149 Section 149. 224.725 (1r) (c) 1. of the statutes is amended to read:

SB668,,690 224.725 (1r) (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 multistate licensing system and registry the information required under sub. (2) (c) in connection with the application for a mortgage loan originator license under this subchapter.

SB668,150 Section 150. 224.725 (1r) (c) 2. d. of the statutes is amended to read:

SB668,,692 224.725 (1r) (c) 2. d. If the individual’s application is listed on the nationwide mortgage multistate 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.

SB668,151 Section 151. 224.725 (2) (a) of the statutes is amended to read:

SB668,,694 224.725 (2) (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 utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to 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, determines necessary and these forms may be modified or updated as necessary by the division to carry out the purposes of this subchapter.

SB668,152 Section 152. 224.725 (2) (b) 1. c. of the statutes is created to read:

SB668,,696 224.725 (2) (b) 1. c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35.

SB668,153 Section 153. 224.725 (2) (c) (intro.) and 2. (intro.) of the statutes are amended to read:

SB668,,698 224.725 (2) (c) (intro.) Any applicant for a license under this section shall furnish to the nationwide mortgage multistate licensing system and registry information concerning the applicant’s identity, including all of the following:

SB668,,699 2. (intro.) Personal history and experience in a form prescribed by the nationwide mortgage multistate licensing system and registry, including the submission of authorization for the nationwide mortgage multistate licensing system and registry and the division to obtain all of the following:

SB668,154 Section 154. 224.725 (5) (title) of the statutes is amended to read:

SB668,,701 224.725 (5) (title) License renewal and reinstatement.

SB668,155 Section 155. 224.725 (5) (a) (intro.) of the statutes is renumbered 224.725 (5) and amended to read:

SB668,,703 224.725 (5) A mortgage loan originator may apply to renew or reinstate a license issued under this section by timely submitting, 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: as provided in s. 224.35 (7).

SB668,156 Section 156. 224.725 (5) (a) 1. and 2. of the statutes are repealed.

SB668,157 Section 157. 224.725 (5) (b) of the statutes is repealed.

SB668,158 Section 158. 224.728 (title) of the statutes is renumbered 224.35 (title) and amended to read:

SB668,,707 224.35 (title) Nationwide mortgage multistate licensing system and registry and cooperative arrangements.

SB668,159 Section 159. 224.728 (1) of the statutes is renumbered 224.35 (1m) and amended to read:

SB668,,709 224.35 (1m) Participation. (a) The division shall participate in the nationwide mortgage multistate licensing system and registry. The division may establish relationships or contracts with the nationwide mortgage multistate licensing system and registry or other entities designated by the nationwide mortgage multistate licensing system and registry to collect and maintain records and process transaction fees or other fees related to licensees under this subchapter persons holding licenses identified in sub. (1r). With respect to any form, fee, or other information related to the initial issuance, transition, or renewal of a mortgage loan originator license under this subchapter license identified in sub. (1r), the division may require that any applicant submit such form, fee, or other information directly to the nationwide mortgage multistate licensing system and registry and may authorize the nationwide mortgage multistate licensing system and registry to perform any function under this subchapter subch. III or s. 138.09, 138.12, 138.14, 218.0101 to 218.0163, 218.02, 218.04, 218.05, or ch. 217 related to the licensing of mortgage loan originators in this state any person with respect to a license identified in sub. (1r).

SB668,,710 (b) The division may require an applicant or licensee to provide, and may provide to the nationwide mortgage multistate licensing system and registry, any information relating to an applicant for initial issuance or renewal of a mortgage loan originator license identified in sub. (1r) that the division and the nationwide mortgage multistate 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 multistate licensing system and registry related to the licensed activity.

SB668,,711 (c) The division may rely on the nationwide mortgage multistate licensing system and registry to establish any dates relating to application or reporting deadlines for mortgage loan originators persons holding or applying for licenses identified in sub. (1r), to establish requirements for amending or surrendering mortgage loan originator licenses identified in sub. (1r), or to establish any other requirements applicable to mortgage loan originators licensed under this subchapter persons holding licenses identified in sub. (1r) to the extent the requirements are a condition of the state’s participation in the nationwide mortgage multistate licensing system and registry.

SB668,160 Section 160. 224.728 (2) of the statutes is renumbered 224.35 (2) and amended to read:

SB668,,713 224.35 (2) Channeling information. To reduce the points of contact that the division may have to maintain, and to facilitate compliance with the requirements under s. 224.725 (2) (c) any requirement that an applicant provide identity information, including a social security number or federal employer identification number, fingerprints, credit reports, or other personal history, the division may use the nationwide mortgage multistate 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 federal bureau of investigation, any state or federal department of justice, or any other governmental agency.

SB668,161 Section 161. 224.728 (3) of the statutes is renumbered 224.35 (3) and amended to read:

SB668,,715 224.35 (3) Challenge process. The division shall establish a process whereby mortgage loan originators persons holding licenses identified in sub. (1r) may challenge information maintained by the nationwide mortgage multistate licensing system and registry on behalf of the division.

SB668,162 Section 162. 224.728 (4) of the statutes is renumbered 224.35 (4), and 224.35 (4) (a) (intro.), (b) and (c), as renumbered, are amended to read:

SB668,,717 224.35 (4) (a) (intro.) If any information or material is considered confidential or privileged under federal or state law before it is provided or disclosed to the nationwide mortgage multistate licensing system and registry, it shall continue to be confidential or privileged after it is provided or disclosed to, and while maintained by, the nationwide mortgage multistate licensing system and registry, except to the extent federal or state law expressly provides otherwise and except as provided in par. (c). Confidential or privileged information or material under this paragraph is not subject to any of the following:

SB668,,718 (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 activities to which licenses identified in sub. (1r) apply without losing any right or protection of confidentiality or privilege under federal or state law.

SB668,,719 (c) This subsection does not prohibit the nationwide mortgage multistate 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 persons holding licenses identified in sub. (1r).

SB668,163 Section 163. 224.728 (5) of the statutes is renumbered 224.35 (5) and amended to read:

SB668,,721 224.35 (5) Cooperative arrangements. The division may enter into cooperative, coordinating, or information-sharing arrangements or agreements with other governmental agencies or with associations representing other governmental agencies, including the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators.

SB668,164 Section 164. 224.74 (1) (a) of the statutes is amended to read:

SB668,,723 224.74 (1) (a) Mortgage call report. Each mortgage banker, mortgage broker, and mortgage loan originator licensed under this subchapter, and each registered entity, shall submit to the nationwide mortgage multistate licensing system and registry reports of condition, which shall be in such form and contain such information as the nationwide mortgage multistate licensing system and registry may require.

SB668,165 Section 165. 224.74 (2) (b) of the statutes is amended to read:

SB668,,725 224.74 (2) (b) The division shall prepare a report for each investigation or examination conducted under this subsection. These reports, and correspondence regarding these reports, are confidential, except that the division may release these reports and correspondence in connection with a disciplinary proceeding conducted by the division, a liquidation proceeding, or a criminal investigation or proceeding. In addition, any information from these reports or correspondence may be provided to the nationwide mortgage multistate licensing system and registry and is not confidential to the extent specified in s. 224.728 224.35 (4) (b) and (c).

SB668,166 Section 166. 224.755 (3) (a), (c) and (d) of the statutes are amended to read:

SB668,,727 224.755 (3) (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 multistate licensing system and registry based upon reasonable standards, including review and approval of the course provider.

SB668,,728 (c) Subject to any rule promulgated under s. 224.72 (7) (bm) or 224.725 (5) (b), if 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 individual under s. 224.725 unless the individual satisfies the requirements under sub. (1) or (2) or demonstrates to the division’s satisfaction 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.

SB668,,729 (d) Except as provided in any rule promulgated under s. 224.72 (7) (bm) Unless expressly authorized by the division, 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).