Wis. Stat. § 224.725 — WI Code / Chapter 224 / Section 224.725
Section 224.725
Status: in_force

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 .

c. The division may disclose information to the nationwide multistate licensing system and registry as provided in s. 224.35 .

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.

(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:

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.

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:

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 revocation 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 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) .

(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.

(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 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.

(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) .

(6) Denial of application for certain reasons. The division 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 provide 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 unemployment insurance contributions. An applicant whose application for issuance or renewal of a license is denied under this paragraph 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 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 applicant whose license is not issued or renewed under this paragraph for delinquent payments 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 ; 2023 a. 267 .