Gov. Doyle: Governor Signs Bill to Combat Predatory Lending

Contact:
Jessica Erickson, Governor’s Office, 608-261-2156

Measure Will Increase Restrictions on Lenders Who Make High Cost Mortgage
Loans

At a bill signing ceremony at the State Capitol today,
Governor Jim Doyle took action on 11 bills, including legislation that
combats predatory mortgage lending practices. The Governor signed Assembly
Bill 792, which increases restrictions on lenders who make high cost
mortgage loans.

“Predatory mortgage lending hurts our communities and strips
home equity away from areas that often need it the most,” Governor Doyle
said. “Homeownership is key to a strong economy, and through lending, the
dream of owning a home has become a reality for many Wisconsin families.
Unfortunately, there are some lenders who take advantage of our families and
harm our communities. AB 792 addresses predatory lenders’ actions without
harming the lending market.”

Governor Doyle thanked the bill’s lead authors –
Representative Phil Montgomery and Senator Dale Schultz – for their hard
work to get this bill to his desk.

Governor Doyle vetoed Assembly Bill 665, which makes changes
to regulations of the payday lending industry.

In 2003, Wisconsin’s payday consumers paid nearly $85
million in payday lending fees, and more than 90 percent of those fees went
directly to out-of-state companies.

“We must find a way to regulate the payday lending industry
so that it can provide a source of credit to individuals and prevent
vulnerable consumers from getting trapped in a long-term cycle of debt,”
Governor Doyle said. “Wisconsin is one of the last states to address the
problems associated with the ever-expanding payday lending industry. But
even with AB 665, we’d be miles behind most other states. The bill does not
go far enough.”

The Governor’s Veto Message can be found online at:
http://www.wisgov.state.wi.us/docs/041504_Veto_AB665.pdf

Governor Doyle also signed 9 other bills:

* Assembly Bill 600 and Assembly Bill 601, sponsored by the Assembly
Committee on Campaigns and Elections, implements the requirements of the
Help America Vote Act of 2002. One of the key provisions requires the
development of a statewide, computerized voter registration list in order to
protect the integrity of the electoral system.
*
* Assembly Bill 793, authored by Senator Dale Schultz and
Representative Phil Montgomery, exempts all intangible property, such as
bank accounts, of a nonresident decedent from Wisconsin’s estate tax.
*
* Assembly Bill 890, authored by Representative Phil Montgomery,
allows members of a nonprofit corporation to meet and decide issues by
electronic means, just as they meet now in person or by telephone
conference.
*
* Senate Bill 279, authored by Senators Dale Schultz and Bob Wirch and
Representatives Sue Jeskewitz and Jennifer Shilling, sets competency exam
and continuing education requirements for loan originators.
*
* Senate Bill 320, authored by Senator Dale Schultz and Representative
Bonnie Ladwig, provides safeguards in annuity transactions involving senior
citizens.
*
* Senate Bill 326, authored by Senators Dale Schultz and Mark Meyer
and Representatives Jon Richards and Phil Montgomery, prohibits any person
from deceptively or misleadingly using the name or logo of a state bank,
savings and loan, or credit union in marketing materials.
*
* Senate Bill 381, authored by Senator Dale Schultz and Representative
Phil Montgomery, allows state banking regulators to accept federal
regulatory examinations of state savings banks, as allowed now for other
state-chartered institutions.

* Senate Bill 492, authored by Senators Dale Schultz and Fred Risser
and Representatives Dave Cullen and Glenn Grothman, implements the “Uniform
Prudent Investor Act” in Wisconsin, giving personal representatives,
trustees, conservators, and guardians of estates more investment
flexibility.

In a private signing ceremony earlier in the day, Governor
Doyle signed Senate Bill 60. The bill permits school districts to increase
their revenue by allowing them to lease properties to other institutions for
an unlimited amount of time.

Governor Doyle also signed proclamations for five groups
that work to promote financial literacy in Wisconsin. The Governor
declared:

* April 22, 2004 National Teach A Child to Save Day in Wisconsin, on
behalf of the Wisconsin Bankers Association.
* The month of April Community Banking Month, on behalf of the
Community Bankers of Wisconsin.
* The week of April 18 to 24, 2004 National Credit Union Youth Week,
on behalf of the Wisconsin Credit Union League and Credit Union National
Association.
* April 19 to 24, 2004 National Credit Education Week, on behalf of
Bill Wilcox and the CBM Credit Education Foundation.
* The month of April Financial Literacy for Youth Month in Wisconsin,
on behalf of the Department of Financial Institutions.