Wis. Admin. Code Department of Financial Institutions DFI-SB 2.04 - Division's authority

The division may do all of the following:

(1) LIMIT INVESTMENT OR ACTIVITY. Restrict or prohibit any investment or activity of a savings bank upon determining that an investment or activity violates or may violate s. DFI-SB 2.02.

(2) REQUIRE CORRECTIVE ACTION. Require a savings bank to correct any violation by it, its holding company or a subsidiary, service corporation or affiliate if any of these entities are found to violate any applicable state or federal statute, state rule, federal regulation or a directive of the division. The division may require corrective action when it determines a savings bank's lending practices or procedures are imprudent, even though individual loans may comply with any applicable state or federal statute, state rule, federal regulation or a directive of the division.

(3) REQUIRE HIGHER LIQUIDITY. Under ch. DFI-SB 3, require a savings bank to maintain a higher level of liquidity than the requirement of an applicable federal insuring agency.

(4) REQUIRE REAPPRAISALS. Require reappraisals of property securing a savings bank's loan at the savings bank's expense.

(5) REQUIRE ACTION ON UNDERSECURED REAL ESTATE LOANS.

(a) If the division determines that the current market value of the real estate collateral and any other collateral which is acceptable security for a mortgage loan is less than the outstanding balance of the loan, require the savings bank 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-SB 13.02 (3) (d) 4. and may accept such other collateral as it deems appropriate.

(6) EXAMINATIONS AND REPORTS. Examine holding companies, subsidiaries, service corporations or affiliates 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 safety and soundness of a savings bank as is consistent with the authority of the division under ch. 214, Stats.

Notes

Wis. Admin. Code Department of Financial Institutions DFI-SB 2.04

CR Register, February, 1994, No. 458, eff. 3-1-94. Amended by, CR 23-039: am. (2), (5) (b) Register February 2024 No. 819, eff. 4/1/2024

This section interprets or implements ss. 214.715 (1) (a) and (c) and 214.74, and 214.765, Stats.