Mortgage brokerage agreements and disclosures; mortgage broker agency relationship and duties
Wis. Stat. § 224.79
in effect(1) Form and content of mortgage brokerage agreements. Every contract between a mortgage broker and an individual under which the mortgage broker agrees to provide brokerage services to the individual relating to a residential mortgage loan shall be in writing, in the form prescribed by rule of the division, and shall contain all information required by rule of the division. The division shall promulgate rules to administer this subsection and shall design these rules to facilitate the comparison of similar charges and total charges assessed by different mortgage brokers.
(2) Disclosure statement. Before entering into a contract with an individual to provide brokerage services relating to a residential mortgage loan, a mortgage broker shall give the individual a copy of a disclosure statement, explain the content of the statement, and ensure that the individual initials or signs the statement, acknowledging that the individual has read and understands the statement. The disclosure statement shall contain a brief explanation of the relationship between the individual and the mortgage broker under the proposed contract, a brief explanation of the manner in which the mortgage broker may be compensated under the proposed contract, and any additional information required by rule of the division. The division shall promulgate rules to administer this subsection and, by rule, shall specify the form and content of the disclosure statement required under this subsection.
(3) Mortgage broker agency relationship and duties.
(a) In this subsection, “borrower” means the residential mortgage loan applicant or investor on whose behalf a mortgage broker provides, or contracts to provide, mortgage brokerage services.
(b) A mortgage broker, at all times when acting in the capacity of a mortgage broker, has an agency relationship with the borrower.
(c) A mortgage broker owes all of the following duties to the borrower:
1. The mortgage broker shall act in the borrower’s best interest and in the utmost good faith toward the borrower, and may not compromise the borrower’s rights or interests in favor of another’s rights or interests, including those of the mortgage broker.
2. The mortgage broker may not accept, give, or charge any undisclosed compensation or realize any undisclosed remuneration, through direct or indirect means, that inures to the benefit of the mortgage broker on an expenditure made for the borrower.
3. The mortgage broker shall carry out all lawful instructions given by the borrower.
4. The mortgage broker shall disclose to the borrower all material facts of which the mortgage broker has knowledge that might reasonably affect the borrower’s rights or interests or ability to receive the borrower’s intended benefit from the residential mortgage loan, but not facts that are reasonably susceptible to the knowledge of the borrower.
4m. The mortgage broker shall present loan options in an objective and unbiased manner and disclose the advantages and disadvantages of each loan option.
5. The mortgage broker shall use reasonable care in performing the mortgage broker’s duties.
6. The mortgage broker shall account to the borrower for all money and property received by the mortgage broker as the borrower’s agent.
(d) Nothing in this subsection prohibits a mortgage broker from contracting or collecting a fee for services provided, if the services were disclosed to the borrower before they were provided.
(e) Nothing in this subsection requires a mortgage broker to obtain a residential mortgage loan containing terms or conditions not available to the mortgage broker in the mortgage broker’s usual course of business or to obtain a residential mortgage loan for the borrower from a mortgage lender with whom the mortgage broker does not have a business relationship.
(f) The duties imposed under par. (c) may not be waived.
(g) Every contract under sub. (1), and every disclosure statement under sub. (2), shall identify the agency relationship described in par. (b) and the mortgage broker’s duties imposed under par. (c).
Source: WI Statutes (Official Site)URL: https://docs.legis.wisconsin.gov/document/statutes/224.79Fetched: 10/7/2026