Wisconsin bill would raise minimum net worth for mortgage brokers

Governor Tony Evers vetoed Senate Bill 315 on March 20, 2026, preserving Wisconsin's requirement that licensed mortgage brokers maintain a minimum net worth of $100,000.[5][13] The Republican-sponsored bill sought to repeal this financial safeguard, arguing it was outdated, but Evers rejected it to protect consumers from potential broker insolvency.[1][3][5] Current law mandates this net worth for brokers, alongside a $120,000 surety bond, to ensure stability in the mortgage industry.[13]

The measure, introduced in June 2025 and referred to the Senate Committee on Financial Institutions and Sporting Heritage, aimed to ease entry for mortgage brokers amid evolving housing finance.[3][9] Proponents viewed the net worth rule as an unnecessary barrier originally intended to prevent fraud, while Evers emphasized its role in upholding broker accountability.[5][7] This veto aligns with his actions on dozens of bills that day, signing others on consumer protections and infrastructure.[2][4]

For Milwaukee residents navigating a tight housing market, this decision safeguards homebuyers from risky lenders, potentially averting financial fallout in neighborhoods like Bronzeville or Bay View where mortgage access is key.[13] It maintains trust in local brokers handling refinances or first-time purchases amid rising rates.

The veto stands unless the Legislature musters a two-thirds majority to override, though no such effort has emerged yet from the Wisconsin State Legislature.[10]