Section 2.05. Division's authority.

  The division may:

(1)   Limit investment or activity. Restrict or prohibit any investment or activity of an association upon determining that an investment or activity violates or may violate s. DFI-SL 2.02 .

(2)   Require corrective action. Require an association to correct any violation by it or a subsidiary if the association or subsidiary is found to violate any statute, rule or directive of the division. The division may require corrective action when it determines an association's lending practices or procedures are imprudent, even though individual loans may comply with applicable statutes and rules.

(3)   Require higher liquidity. Require an association to maintain a higher level of liquidity than the requirement of an applicable federal insuring agency for any association.

(4)   Require reappraisals. Require reappraisals of property securing an association's loan. Such appraisals shall be conducted at the association's expense.

(5)   Require action with regard to undersecured real estate loans.

(a) If the division determines that the current market value of the real estate collateral and any other collateral that is acceptable security for a mortgage loan is less than the outstanding balance of the loan, require the association to:

1. Obtain additional collateral acceptable to the division;

2. Reduce the book value of the loan to the current market value of the acceptable collateral; or

3. Establish a valuation reserve reflecting the difference between the outstanding balance of the mortgage loan and the current market value of the acceptable collateral.

(b) For purposes of this section the division shall accept collateral of the kind specified in s. DFI-SL 13.03 (3) (d) 4. and may accept such other collateral as it deems appropriate.

(6)   Subsidiary examinations and reports. Examine subsidiaries and require them to file reports of their financial condition when requested.

(7)   Other action. Take or direct such other action with regard to the affairs of an association as is consistent with the authority of the division under ch. 215 , Stats.

History: Cr. Register, June, 1989, No. 402 , eff. 7-1-89.

Note

This section interprets or implements ss. 215.03 (1) , 215.13 (42) , Stats. Microsoft Windows NT 6.1.7601 Service Pack 1