Convictions disqualifying a person from holding a mortgage loan originator license

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

In 2009 Wisconsin Act 2 , provisions of the federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 were adopted into state law, including provisions establishing standards for the licensing of mortgage loan originators. A mortgage loan originator is, with specified exceptions, an individual who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain. Beginning on January 1, 2010, the Division of Banking in the Department of Financial Institutions (division) may issue a mortgage loan originator license to an applicant only if the applicant satisfies certain criteria. The applicant must provide: fingerprints for submission to the Federal Bureau of Investigation for a state, national, and international criminal history background check; personal history information; and authorization for the release of information related to any administrative, civil, or criminal findings against the applicant. The division may not issue a mortgage loan originator license to an applicant if the applicant has previously had a mortgage loan originator license revoked. The division also may not issue a mortgage loan originator license to an applicant if the applicant has been convicted of a felony in a domestic, foreign, or military court as follows: 1) if the felony involved an act of fraud, dishonesty, breach of trust, or money laundering, the felony disqualifies the applicant from holding a mortgage loan originator's license regardless of when the felony conviction occurred; or 2) if the felony is not one described in item 1), above, the felony disqualifies the applicant from holding a mortgage loan originator's license only if the felony conviction occurred within seven years prior to the license application. The division may only renew a mortgage loan originator license if the mortgage loan originator continues to meet the minimum standards for license issuance.

This bill specifies that an applicant convicted of a felony involving an act of theft, embezzlement, forgery, perjury, deceit, extortion, or manufacturing, distribution, or delivery of a controlled substance or controlled substance analog is disqualified from holding a mortgage loan originator license regardless of when the felony conviction occurred.

Who's behind it

8 lawmakers are its authors⁠. 6 are Democrats and 2 are Republicans.

4 more lawmakers signed on in support⁠.