Wisconsin Administrative Code › Department of Financial Institutions › DFI-SL 1-22 - Department of Financial Institutions-Savings & Loan › Chapter DFI-SL 13 - Loans › Section DFI-SL 13.03 - Mortgage loans

Current through June 24, 2024
(1) AUTHORITY. An association may 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 cooperative units.
(2) APPRAISAL. New mortgage loans originated
				shall be supported by a reasonably current appraisal 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 the priority of which is
				insured over any other lien or encumbrance by a title insurance policy issued
				to the mortgage lender.
(b)
Limitations.
1. 'First lien
				mortgages'. Except as provided in par. (d), an association 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'. An association 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 association would
				be 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
				qualifying 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.
An association 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; or
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 savings accounts or certificates of deposit in an insured
				institution.
5. The loan is to
				facilitate the sale of real estate owned or real estate in judgment.
6. The loan is to meet the objectives of
				12 USC
				2901 with the prior written approval of the
				division.
Note:
12 USC
				  2109ff. is the citation to the federal
				  community reinvestment act of 1977.