Florida Clarifies Underwriter Licensing Requirements
Mortgage Bankers Association, August 19, 2010
On Thursday, the Florida Office of Financial Regulation (OFR) issued a legal opinion (see attached) stating that underwriters who are W-2 employees of licensed mortgage lenders are not required to obtain loan originator licenses with the OFR. However, in-house underwriters who work for a licensed lender must be supervised by a licensed loan originator. In addition, the opinion clarifies that if underwriters intend to underwrite exclusively for one employer, they will not be subject to the existing requirement that "loan processors" file declarations with the department of intent to engage solely in loan processing in order to contract with multiple mortgage brokers or mortgage lenders. A copy of the opinion is attached.
Earlier this year, Florida enacted legislation requiring all loan processors and underwriters to be licensed as loan originators. On July 9, MBA submitted comments to the Florida Office of Financial Regulation (OFR) pointing out that processors and underwriters support the origination function and have limited contact with borrowers, and, moreover, many companies have erected firewalls between the origination and underwriting functions to preserve the integrity of the loan process and in response to the Home Valuation Code of Conduct. In the letter, MBA noted that processor and underwriter licensing goes beyond the spirit and intent of the SAFE Act.
For more information, please contact Meghan Sullivan (202) 557-2866 msullivan@mortgagebankers.org.