215.21 Mortgage loans.

447 words·~2 min read·/wi/chapter-215/215-21-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Basic security required. Subject to such additional limitations as the division may prescribe, associations may make loans on the security of any of the following:

(a)A mortgage on real estate owned by the borrower in fee simple if the aggregate value of the mortgage and any current balance of any mortgage, lien and encumbrances does not exceed the appraised value of the real estate.

(b)Leasehold interests extending or renewable automatically for a period of at least 15 years beyond the maturity of the debt.

(c)An assignment or transfer of stock certificates or other evidence of the borrower’s ownership interest in a corporation formed for the cooperative ownership of real estate. Sections 846.10 and 846.101 , as they apply to a foreclosure of a mortgage involving a one-family residence, apply to a proceeding to enforce the lender’s rights in security given for a loan under this paragraph. The division shall promulgate joint rules with the office of credit unions that establish procedures for enforcing a lender’s rights in security given for a loan under this paragraph.

(3)Mortgage and mortgage note. Every mortgage loan shall be secured by a mortgage upon the real estate security and evidenced by a mortgage note.

(4)Priority of association’s mortgages.

(a)All mortgages described in this section shall have priority over all liens, except tax and special assessment liens and liens under ss. 292.31

(i)and 292.81 , upon the mortgaged premises and the buildings and improvements thereon, which shall be filed subsequent to the recording of such mortgage.

(b)Any additional advance made to a borrower, where the mortgage and mortgage note provides for such additional advances, shall not exceed an amount specified in said mortgage.

(5)Maximum amount of loans to one borrower.

(a)The aggregate of loans that an association may make to any one borrower is subject to such limits as determined and prescribed by the division and review board, but not exceeding 10 percent of the aggregate savings accounts or the net worth of the association, whichever is less.

(b)The aggregate of loans to any one borrower shall consist of any loans made directly to the borrower and to any corporation of which the borrower is an officer, director or shareholder.

(6)Maximum periods of loan amortization.

(a)Direct reduction mortgage loans. The total monthly contractual payment on a direct reduction mortgage shall appear in the mortgage note. The division shall by regulation establish the maximum terms for the various types of direct reduction mortgages. The interest charges on loans of this type may be adjusted monthly or semiannually in accordance with the terms of the mortgage note.