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Wisconsin Licensing Requirements
Does the state require a physical location within the state?
No in-state office is required, however there are substantial additional requirements for mortgage brokers and mortgage bankers who do not maintain a "bona fide office" in Wisconsin (see the section on licensing).
Is there individual loan officer licensing?
Yes.
What are lenders, brokers and loan officers called?
Wisconsin uses the terms mortgage banker, supervised lender, mortgage broker and mortgage loan originator.
What is the cost of a license? Surety bond? Are there net worth requirements?
Mortgage banker or mortgage broker applicants must complete an application and pay a registration fee. The registration fee (and biannual renewal fee) for mortgage bankers is $1,000. The registration fee (and biannual renewal fee) for mortgage brokers is $750. Loan originator registration applicants must pay a fee of $250. The registration is effective for two years.
A mortgage banker registrant that has a bona fide in state office must do at least one of the following:
- Submit evidence that the entity is approved as a mortgagee by either the Department of Housing and Urban Development (HUD), Fannie Mae, Freddie Mac, or the Government National Mortgage Association (GNMA).
- Provide a personal bond or third-party guarantee in the amount of $25,000.
- Provide a surety bond in the amount of $25,000.
- Provide proof of a minimum net worth of $25,000 and a warehouse line of credit of at least $250,000, or a net worth of at least $100,000.
A mortgage banker applicant without a bona fide Wisconsin office must provide a surety bond of $300,000 and submit an audited financial statement reflecting a minimum net worth of $250,000.
A mortgage broker registrant that has a bona fide in state office must do at least one of the following:
- Provide a surety bond in the amount of $10,000.
- Provide a personal bond or third-party guarantee in the amount of $10,000.
- Provide proof of a net worth of at least $100,000.
A mortgage broker applicant without a bona fide Wisconsin office must provide a surety bond of $120,000 and submit an audited financial statement reflecting a minimum net worth of $250,000.
Is there a pre-licensing education requirement? Is there a test?
Originators must pass a test prior to applying for an originator’s license. The test is currently administered by Pearson VUE. The fee for the examination is $150.
Is there a CE requirement?
Loan originators must complete 16 hours of approved education in the two years prior to their license renewal, including at least 2 hours in the area of new developments in the law, practice, and procedure.
Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
Wisconsin issues separate mortgage banker and mortgage broker licenses.
Are there any state specific high cost loan provisions?
The Wisconsin Responsible High-Cost Mortgage Lending Act became effective January 1, 2005. The act defines “covered loans” and provides for additional disclosure requirements and restrictions on such loans.
Are there any state specific predatory lending laws?
See the high cost loan provisions.
Closing practices – attorney or title state? Wet or dry settlement?
Wisconsin has a wet settlement act, which provides statutory requirements with regard to how funds are disbursed. The statutes also outline penalties that may be assessed if the statutes are not followed. In most cases, there are severe penalties for noncompliance.
Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
The Wisconsin Consumer Act covers consumer transactions, including certain second mortgage loans and home equity lines of credit in an amount of $25,000 or less. Lenders that make second mortgage loans must register under the Mortgage Bankers, Loan Originators and Mortgage Brokers Act and should check as to the applicability of the registration requirement of the Wisconsin Consumer Act to their particular operations.
Who is the regulator and what is their contact information?
Department of Financial Institutions
P.O. Box 7876
345 W. Washington Avenue
4th Floor
Madison, WI 53707-7876
www.wdfi.org
Mortgage Banking Section (608) 261-7578
DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.
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