Archive for June, 2010

 
Jun
24
Attention Loan Processors and Underwriters - Bureau of Finance Regulation Updates 6/18/10
Posted (mctgroup) in Mortgage, School on June-24-2010

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. 

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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. 

Source: Florida Office of Financial Regulation
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Jun
10
OFR SHUTS DOWN MORTGAGE INDUSTRY LICENSING APPLICATION SYSTEM ON JULY 8
Posted (mctgroup) in Miscellaneous, Mortgage, School on June-10-2010

INDUSTRY NEWS

PROCRASTINATORS COULD BE LEFT WITHOUT A LICENSE TO DO BUSINESS

 

~ The Florida Office of Financial Regulation Announces
New Process for Mortgage Industry Licensing Beginning October 1, 2010~

TALLAHASSEE, Fla. (June 9, 2010) – On July 8, 2010, the Florida Office of Financial Regulation (OFR) will stop accepting applications for mortgage broker, mortgage brokerage business, mortgage lender and correspondent mortgage lender licenses, so that current applications can be processed before October 1. Beginning October 1, 2010, Florida will begin participation in the NationwideMortgage Licensing System, and all existing loan originators, brokers and lenders and mortgage business owners will be required to reapply for licensure. December 31, 2010, is the last day to apply for licensure.
“We encourage applicants to apply now so that they have a better chance of being approved before October 1. If unlicensed by this date, individuals will not be able to work in the industry until the new application is approved,” said Tom Cardwell, Commissioner of the Florida Office of Financial Regulation. “Applicants should submit information that is complete, correct and containing full-disclosure to minimize delays to processing their application.”
Over the last two years, OFR has developed and implemented tougher licensing requirements for the mortgage industry to better protect Florida’s consumers. As authorized by federal and state law, the Office will now raise the bar even higher for anyone wanting to stay or enter the mortgage industry.
The new licensing process includes having state and federal criminal backgrounds checked and a credit report pulled. For the first time, the Office will be able to evaluate credit reports, giving regulators a larger set of criteria to determine that a person can demonstrate character, general fitness and financial responsibility before granting a license. The Office will look at items on the credit report such as bankruptcies, outstanding tax liens or other governmental liens, outstanding judgments, foreclosures and charged off accounts.
Additionally, licensees will now be required to renew their licenses on a yearly basis to include resubmitting to state and federal criminal backgrounds checks and a credit report. The Officewill not renew a license if the applicant does not continue to meet the same standards required at initial licensure. Prior to this, mortgage brokers, businesses and lenders were only required to submit to a state criminal background check during initial licensure and were allowed to renew every two years without a subsequent background check.
More information on the new mortgage licensing requirements, process and fees is available on The Florida Office of Financial Regulation website.  Additional questions can be answered through the Office’s Licensing Department at 850-410-9805.

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