Wisconsin Administrative Code › Department of Financial Institutions › DFI-SB 1-22 - Department of Financial Institutions-Savings Banks › Chapter DFI-SB 13 - Loans › Section DFI-SB 13.02 - Mortgage loans

Current through June 24, 2024
(1) AUTHORITY. A savings bank may make,
				invest in, sell, purchase, participate or otherwise deal in mortgage loans or
				interests in mortgage loans without geographic restriction, including loans
				made on the security of residential, commercial or cooperative units.
(2) APPRAISAL. New mortgage loans originated
				shall be supported by a reasonably current appraisal or other documentation
				approved by the division containing a level of information commensurate to the
				size and nature of the real estate appraised.
(3) MAXIMUM LOAN TO VALUE RATIOS.
(a)
Definition.
In this
				subsection, "first lien" includes any mortgage which has priority over all
				other liens or encumbrances.
(b)
Limitations.
1. `First lien
				mortgages.' Except as provided in par. (d), a savings bank may not make a loan
				secured by a first lien mortgage in an amount in excess of 90% of the value of
				the real estate security.
2.
				`Junior liens.' A savings bank may not make a loan secured by a mortgage other
				than a first lien mortgage in an amount in excess of:
a. The maximum amount the savings bank is
				authorized to lend on the security of a first lien on the mortgaged property;
				minus
b. The face amount of all
				other outstanding loans secured by the mortgaged property and any other
				unsatisfied liens against that property.
(c)
Calculation.
In
				calculating the loan to value ratio under this subsection, the value of the
				real estate security is limited to that attributable to the real estate if used
				in a manner consistent with its current or intended use.
(d)
Exceptions: Loans to 100% of
				value.
A savings bank may make a loan in an amount up to 100% of the
				value of the real estate security if:
1. The
				part of the loan that exceeds 90% of the value of the property is insured or
				guaranteed by a mortgage insurance company that the federal home loan mortgage
				corporation has determined to be a "qualified private insurer";
2. The loan or the part of the loan that
				exceeds 90% of the value of the property is insured or guaranteed by an agency
				or instrumentality of a state or the federal government whose full faith and
				credit is pledged to support the insurance or guarantee;
3. Made in conjunction with a governmental
				subsidy, insurance or guarantee program approved by the division;
4. The loan is fully secured by the cash
				surrender value of an insurance policy on the life of any person responsible
				for the loans payment; negotiable securities, the principal and interest of
				which is guaranteed by the U.S. government; bonds, notes or other evidences of
				indebtedness, constituting the general obligation of a municipality; or deposit
				accounts in an insured institution;
5. The loan is to facilitate the sale of a
				savings bank's real estate owned or real estate in judgment; or
6. The loan is to meet the objectives of the
				federal community reinvestment act of 1977 (
				12 USC
				2901 ff.) with the prior written approval of
				the division.