Gov. Doyle: Governor Signs Bill to Combat Predatory Lending
4/15/2004
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.
