Operations of state-chartered savings and loan associations.
Impact
With the proposed changes, AB1031 could vastly expand the operational scope of savings and loan associations in Wisconsin. It aims to streamline the process for these institutions and promote more accessible mortgage lending to a broader audience. The increased lending capacity and the ability to operate branch offices without stringent geographic limitations may enhance competition in the mortgage market, ultimately benefiting consumers with better access to financial services. However, these changes could raise concerns about the risks associated with lending practices and the financial health of these institutions if not well-regulated.
Summary
Assembly Bill 1031 proposes multiple changes to the operations of state-chartered savings and loan associations in Wisconsin. The bill aims to eliminate several restrictions that currently govern the lending practices of these associations, potentially allowing them to operate more freely across greater distances. Notably, the bill removes the existing 100-mile lending area restriction, enabling associations to establish branch offices beyond this limit. Furthermore, it modifies the regulations on the aggregate mortgage loans to a single borrower, changing the limit from 10% of an association's aggregate savings accounts or net worth to 10% of its total assets.
Contention
The discussion around AB1031 reveals points of contention regarding the balance between regulation and the autonomy of financial institutions. Proponents argue that the deregulation aspects of the bill will lead to economic growth and improved access to lending services. Conversely, opponents express concerns about the potential for increased risk in the financial system, particularly given the removal of annual audit requirements. The elimination of such oversight may lead to less transparency in the operations of savings and loan associations, prompting fears about the safeguarding of consumers' interests.
Authorized activities and operations of credit unions; the lending area of savings and loan associations; automated teller machines; residential mortgage loans and variable rate loans; payments for public deposit losses in failed financial institutions; promissory notes of certain public bodies; repealing rules promulgated by the Department of Financial Institutions; providing an exemption from rule-making procedures; and providing a penalty. (FE)
Authorized activities and operations of credit unions; the lending area of savings and loan associations; automated teller machines; residential mortgage loans and variable rate loans; payments for public deposit losses in failed financial institutions; promissory notes of certain public bodies; repealing rules promulgated by the Department of Financial Institutions; providing an exemption from rule-making procedures; and providing a penalty. (FE)
Relating to savings and loan associations, savings banks, residential mortgage loan originators and servicers, and other persons or entities under the regulatory jurisdiction of the Department of Savings and Mortgage Lending and the savings and mortgage lending commissioner; creating an offense.
Relating to savings and loan associations, savings banks, residential mortgage loan originators and servicers, and other persons or entities under the regulatory jurisdiction of the Department of Savings and Mortgage Lending and the savings and mortgage lending commissioner; creating an offense; imposing an administrative penalty.
Authorizing governmental units to utilize a public moneys pooled method of securities to secure the deposit of public moneys in excess of the amount insured or guaranteed by the federal deposit insurance corporation and requiring the state treasurer to establish procedures therefor and banks, savings and loan associations and savings banks to make certain reports upon the request of a governmental unit.
Permit banks the discretion to choose whether to receive deposits from other banks, savings banks, or savings and loan associations when arranging for the re-deposits of county, municipal, and state funds
Relating to the formation of decentralized unincorporated nonprofit associations and the use of distributed ledger or blockchain technology for certain business purposes; authorizing fees.
Relating to the formation of decentralized unincorporated associations and the use of distributed ledger or blockchain technology for certain business purposes; authorizing a fee.
Relating to the establishment of the department of consumer affairs services for property owners and property owners' associations within the office of the attorney general.