Section DFI-CU 54.03 - Limitations on real estate mortgage loans A credit union may grant purchase money and equity mortgage loans to members secured with real estate, subject to the following limitations:
(1) Purchase money loans, excluding amounts financed for accident, health and credit life insurance premiums, may not exceed 90% of the market value of the subject real estate except if:(a) The part of the loan that exceeds the 90% limitation is insured or guaranteed by a qualified private mortgage insurer;(b) The loan or the part of the loan that exceeds the 90% limitation is insured or guaranteed by an agency or instrumentality of a local, state or federal government;(c) The loan is to facilitate the sale of real estate owned by the credit union or real estate in foreclosure; or(d) The loan, excluding accident, health and credit life insurance premiums, does not exceed $30,000.(2) Equity loans, excluding amounts financed for accident, health and credit life insurance premiums, may not exceed the borrower's equity in the subject real estate, except to the extent the excess is secured by other collateral, the value of which can be supported by authoritative evidence.(3) The term of a mortgage loan may not exceed 30 years commencing the latter of:(b) The date of the first contractual principal and interest payment;(c) The date of any additional advance;(d) The date of any properly executed loan modification agreement; or(e) The date of any interest rate increase under the terms of a note permitting or requiring changes in the interest rate.(4) For good cause shown, the director may waive any limitations of this section.Wis. Admin. Code Department of Financial Institutions DFI-CU 54.03
CR Register, June, 1990, No. 414, eff. 7-1-90; r. (1) renum (2) to (4) to be (1) to (3) and am., Register, October, 1997, No. 502, eff. 11-1-97.Amended by, CR 20-052: cr. (4) Register June 2021 No. 786, eff. 7/1/2021