Wisconsin Administrative Code
Department of Financial Institutions
DFI-Bkg 1-78 - Department of Financial Institutions-Banking
Chapter DFI-Bkg 42 - Trust accounts
Section DFI-Bkg 42.01 - General requirements for trust accounts

Universal Citation: WI Admin Code ยง DFI-Bkg 42.01

Current through February 26, 2024

(1) TYPE OF ACCOUNT. A licensee shall deposit all trust funds received by the licensee or the licensee's employees in a trust account in a depository institution. The account shall be identified as a trust account. The division may prohibit a licensee from establishing or maintaining a trust account in a financial institution if the division believes that the financial institution is operating in an unsafe or unsound manner.

(2) TIME OF DEPOSIT. A licensee shall deposit all trust funds received by the licensee or the licensee's employees in a trust account within 48 hours of receipt of such trust funds. If funds are received on a day prior to a holiday or other day when the depository institution is closed, the licensee shall deposit the funds on the next business day of the depository institution. A licensee may satisfy this requirement by mailing trust funds to the depository institution within 48 hours after receipt of the trust funds.

(3) DEPOSIT OF LOAN APPLICATION FEE BY MORTGAGE BROKER. A licensed mortgage broker who receives a loan application fee from an applicant for a residential mortgage loan shall make a good faith estimate of that portion of the loan application fee which will be needed to pay for services rendered by a third party incident to the processing of the residential mortgage loan application, such as a fee or a charge for a credit report or a real estate appraisal. The mortgage broker shall follow either one of the following 2 procedures relating to that portion of the loan application fee which is needed to pay for the services rendered by a third party or which is imposed on behalf of any other person:

(a) Deposit that portion of the loan application fee in a trust account and disburse it from the trust account to pay for the services rendered by a third party.

(b) Direct the applicant to make payment directly to the third party.

(4) STATEMENT OF ACCOUNT. Upon reasonable notice, a licensee shall promptly provide a statement of account to any party to a mortgage transaction.

(5) COMMINGLING OF FUNDS. A licensee shall deposit only trust funds in the license's trust account and shall not commingle personal funds in a trust account, except that a licensee may deposit and keep in an account an amount of personal funds which is necessary to cover customary advances or service charges relating to the account.

(6) RESPONSIBILITY OF EMPLOYEES. An employee of a licensee who receives trust funds shall promptly submit the funds to the licensee.

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