224.72 AnnotationPersons who received an ad in the mail or a post card offering services from a mortgage banker were not “provided services” and the surety had no liability to them. All Cities Privacy Class v. Hartford Fire Insurance Company, 2011 WI App 71, 333 Wis. 2d 483, 798 N.W.2d 909, 10-1738. 224.722224.722 Registered entities. 224.722(1)(1) A depository institution may apply for registered entity status with the division. The application shall be on forms and in the manner prescribed by the division and the applicant shall pay the same fee as that established by rule under s. 224.72 (8) for mortgage bankers. The application shall be accompanied by a commercial surety bond in the amount of $300,000 that is issued by a surety company authorized to do business in this state and is written on a form that is acceptable to the division. 224.722(2)(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 register the applicant as a registered entity. 224.722(3)(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 originator. 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. 224.722(5)(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. 224.722(6)(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 registered entity continues to meet the minimum standards for registration under this section. 224.722(7)(7) If a registered entity fails to satisfy the minimum standards for renewal of its registration, its registration shall expire. If a registered 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. 224.722(8)(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. 224.722 HistoryHistory: 2013 a. 360. 224.725224.725 Licensing of mortgage loan originators. 224.725(1)(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 multistate licensing system and registry. Effective date noteNOTE: Sub. (1) is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text(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 licensing system and registry.
224.725(1m)(1m) License exemptions. The following individuals are not required to be licensed under this section: 224.725(1m)(b)(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. 224.725(1m)(c)(c) An individual engaged solely as a loan processor or underwriter, unless the individual is an independent contractor or represents to the public, through advertising or another means of communication 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. 224.725(1m)(d)(d) An individual who performs real estate brokerage activities only and is licensed under s. 452.03, unless the individual is compensated by a lender, mortgage broker, or another mortgage loan originator or by any agent of a lender, mortgage broker, or another mortgage loan originator. 224.725(1m)(e)(e) An individual solely involved in extensions of credit relating to time-share plans, as defined in 11 USC 101 (53D). 224.725(1m)(f)(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. 224.725(1m)(g)(g) A licensed attorney who undertakes activities described in s. 224.71 (6) if all of the following apply: 224.725(1m)(g)1.1. These activities are considered by the Wisconsin Supreme Court to be part of the authorized practice of law within Wisconsin. 224.725(1m)(g)2.2. These activities are carried out within an attorney-client relationship. 224.725(1m)(g)3.3. The attorney carries out the activities in compliance with all applicable laws, rules, and ethics standards. 224.725(1r)(1r) Employment transition; temporary authority. 224.725(1r)(a)(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 subchapter, for the period specified in par. (c), if all of the following apply: 224.725(1r)(a)1.1. The individual has not previously had an application for a mortgage loan originator license denied. 224.725(1r)(a)2.2. The individual has not previously had a mortgage loan originator license suspended or revoked in any governmental jurisdiction. 224.725(1r)(a)3.3. 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). 224.725(1r)(a)4.4. The individual has not been convicted of any crime that disqualifies the individual under sub. (3) (b) from issuance of a license. 224.725(1r)(a)5.5. The individual was registered with the nationwide 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). Effective date noteNOTE: Subd. 5. is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text5. The individual was registered with the nationwide mortgage 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).
224.725(1r)(b)(b) An individual who is licensed as a mortgage loan originator in another state, who is 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 subchapter, for the period specified in par. (c), if all of the following apply: 224.725(1r)(b)2.2. The individual was licensed in another state during the 30-day period immediately preceding the date on which the individual furnished the information required under sub. (2) (c). 224.725(1r)(c)1.1. 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 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. Effective date noteNOTE: Subd. 1. is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text1. 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 originator license under this subchapter.
224.725(1r)(c)2.2. The period that begins under subd. 1. shall end on the earliest of the following: 224.725(1r)(c)2.a.a. The date on which the individual withdraws the application for a mortgage loan originator license. 224.725(1r)(c)2.b.b. The date on which the division denies, or issues a notice of intent to deny, the application for a mortgage loan originator license. 224.725(1r)(c)2.c.c. The date on which the division grants to the individual a mortgage loan originator license. 224.725(1r)(c)2.d.d. If the individual’s application is listed on the nationwide 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. Effective date noteNOTE: Subd. 2. d. is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date textd. 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.
224.725(1r)(d)1.1. 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. 224.725(1r)(d)2.2. 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. 224.725(2)(a)(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 utilize the nationwide multistate licensing system and registry, and the provisions of s. 224.35 shall apply, with respect to mortgage loan originators. 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. Effective date noteNOTE: Par. (a) is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text(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, determines necessary and these forms may be modified or updated as necessary by the division to carry out the purposes of this subchapter.
224.725(2)(b)1.1. 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: 224.725(2)(b)1.a.a. The division may disclose the social security number to the department of revenue for the sole purpose of requesting certifications under s. 73.0301 and to the department of workforce development for the sole purpose of requesting certifications under s. 108.227. 224.725(2)(b)1.b.b. The division may disclose the social security number to the department of children and families in accordance with a memorandum of understanding under s. 49.857. 224.725(2)(b)1.c.c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35. 224.725(2)(b)2.2. 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 subscribed 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. 224.725(2)(c)(c) Any applicant for a license under this section shall furnish to the nationwide multistate licensing system and registry information concerning the applicant’s identity, including all of the following: Effective date noteNOTE: Par. (c) (intro.) is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text(c) Any applicant for a license under this section shall furnish to the nationwide mortgage licensing system and registry information concerning the applicant’s identity, including all of the following:
224.725(2)(c)1.1. Fingerprints for submission to the federal bureau of investigation and to any governmental agency or entity authorized to receive this information, for purposes of a state, national, and international criminal history background check. 224.725(2)(c)2.2. Personal history and experience in a form prescribed by the nationwide multistate licensing system and registry, including the submission of authorization for the nationwide multistate licensing system and registry and the division to obtain all of the following: Effective date noteNOTE: Subd. 2. (intro.) is shown as amended eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text2. 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 licensing system and registry and the division to obtain all of the following:
224.725(2)(c)2.b.b. Any information related to any administrative, civil, or criminal findings by any governmental jurisdiction. 224.725(3)(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: 224.725(3)(a)(a) The applicant has never had a mortgage loan originator license revoked in any governmental jurisdiction, unless the revocation was subsequently and formally vacated. 224.725(3)(b)(b) The applicant has not been convicted of, or pled guilty or no contest to, a felony in a domestic, foreign, or military court during 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 application. 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). 224.725(3)(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 mortgage loan originator will operate honestly, fairly, and efficiently within the purposes of this subchapter. For purposes of this paragraph, 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 paragraph, 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 seriously delinquent accounts. 224.725(3)(f)(f) The applicant has met the surety bond requirement under sub. (4). 224.725(4)(a)(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. 224.725(4)(b)(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. 224.725(4)(c)(c) The surety bond shall be in a form prescribed, and satisfy all requirements established, by rule of the division. 224.725(4)(d)(d) When an action is commenced on a mortgage loan originator’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 immediately file a new surety bond. 224.725(5)(5) License renewal and reinstatement. A mortgage loan originator may apply to renew or reinstate a license issued under this section as provided in s. 224.35 (7). Effective date noteNOTE: Sub. (5) is shown as affected eff. 1-1-25 by 2023 Wis. Act 267. Prior to 1-1-25 it reads: Effective date text(5) License renewal. (a) A mortgage loan originator may apply to renew 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:
Effective date text1. The mortgage loan originator continues to meet the minimum standards for license issuance under sub. (3).
Effective date text2. The mortgage loan originator has satisfied the annual continuing education requirements under s. 224.755 (2).
Effective date text(b) The license of a mortgage loan originator who fails to satisfy 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 nationwide mortgage licensing system and registry.
