OMBA Members Doing Business in FLORIDA - Action Required by July 8th!
Florida Office of Financial Regulation - July 2, 2010
Mortgage License Applicants: Don’t Get Caught in the Rush!
Let’s admit it! We all do it; procrastinate and leave things to the very last minute. But this is one time you can’t afford to wait to the last minute.
On July 8, 2010, the Office of Financial Regulation will stop accepting applications for certain mortgage license types due to changes in federal and state laws. Although we will continue to process applications filed by July 8, we can’t guarantee that applications will get processed before October 1. Applications which are filed immediately, are complete, correct and contain full disclosure have the best chance of being timely processed. If your application has not been approved by October 1 of this year, we won’t be able to approve it because we’ll no longer have the authority to issue these licenses. Bottom line: you need to have a license by October 1 to keep working when the new application process starts.
On October 1, 2010, Florida will begin participation in the Nationwide Mortgage Licensing System. All licensed mortgage brokers, mortgage brokerage businesses and lenders must reapply for licensure under the new requirements. This includes anyone granted a license prior to October 1. Although the reapplication period runs from October 1 through December 31, we encourage you to file early. Based on current numbers, more than 39,000 mortgage brokers and 7,000 businesses and lenders could be reapplying for licensure. Due to the sheer volume of expected licensees, applications will take longer to process than the average two to four months. It could take up to twelve months if filed incomplete, incorrect or lacking full disclosure. However, if you have a pre-existing license, approved prior to the October 1 deadline, you can continue working while your new license is being processed. Starting in 2011, all licenses must be renewed annually by December 31.
Don’t procrastinate and get caught in a hurry-up-and-wait scenario! Or worse, get caught in a situation where you can’t do business.
More information on the new mortgage licensing requirements, process and fees is available on our website at http://www.flofr.com/Finance/index.htm or call the Office’s Licensing Department at 850-410-9805.
New Mortgage Industry Licensing Requirements - BACKGROUNDER, June 9, 2010
New Mortgage License Requirements - FACT SHEET, June 9, 2010
Press Release - OFR Shuts Down Mortgage Industry Licensing Application System on July 8
Bureau of Finance Regulation
6/18/2010
Loan processors and underwriters required to be licensed as loan originators
Are loan processors and underwriters required to be licensed as a loan originator beginning October 1, 2010?
Answer: Yes. In order for an individual to perform these tasks relating to loan processing and underwriting, a loan originator license is required, beginning October 1, 2010:
Receiving, collecting, distributing, and analyzing information common for the processing or underwriting of a residential mortgage loan, or
Communicating with consumers to obtain the information necessary for the processing or underwriting of a loan, to the extent that such communication does not include offering or negotiating loan rates or does not include counseling residential mortgage loan rates or terms.
Also effective October 1, 2010, an individual wishing to engage solely in these processing or underwriting activities will be able to contract with more than one mortgage broker (company), mortgage lender, or both simultaneously, so long as they are licensed as loan originators and file a declaration of intent to engage solely in loan processing with the Office.
Statutory reference: Laws of Florida 2010-67, to be codified at Section 494.00331, Fla. Stat.
Bureau of Finance Regulation
6/18/2010
Loan processors and underwriters also need mortgage broker license
Does a loan processor or underwriter that is required to be licensed as a loan originator beginning October 1, 2010 need to apply for the current mortgage broker license before July 8, 2010?
Answer: Yes. An individual that holds a mortgage broker license on September 30, 2010 and applies for a loan originator license through the Nationwide Mortgage Licensing System between October 1, 2010 and December 31, 2010 can continue to work under the mortgage broker license while the Office of Financial Regulation processes the loan originator application. An individual that does not hold an active mortgage broker license on September 30, 2010 cannot conduct business on or after October 1, 2010 until the person holds an active loan originator license.