Florida Licensing Requirements for Brokers of Secondary Market Mortgages

In the State of Florida the new laws have made it clear whether a license is needed or not in the buying and selling of mortgages, and the clearest documentation seems to be found here, which is also set out below:

Who is required to have this license?
This license is required for an entity making a mortgage loan for compensation or gain, directly or indirectly, or selling or offering to sell a mortgage loan to a noninstitutional investor. [note that is does not include individuals or even accredited investors unless they are an institution!  We only surmise that if you are selling or offering to sell a mortgage loan to an individual or accredited investor, YOU MUST BE LICENSED!]

Making a mortgage loan means closing a mortgage loan in a person’s name, advancing funds, offering to
advance funds, or making a commitment to advance funds to an applicant for a mortgage loan.

Who does not need this license?

  • A person acting in a fiduciary capacity conferred by the authority of a court.
  • A person who, as a seller of his or her own real property, receives one or more mortgages in a purchase money transaction.
  • A person who acts solely under contract and as an agent for federal, state, or municipal agencies for the purpose of servicing mortgage loans.
  • A person who makes only nonresidential mortgage loans and sells loans only to institutional investors.
  • An individual making or acquiring a mortgage loan using his or her own funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.
  • An individual selling a mortgage that was made or purchased with that individual’s funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.

Pre-requisites for license applications?
Refer to the Florida Mortgage Lender New Application Checklist document located on the NMLS
Resource Center website

Mortgage Lender new application checklist

WHO TO CONTACT – Contact Bureau of Regulatory Review – Finance licensing staff by phone at 850-410-9895 or e-mail FLNMLS@flofr.com for additional assistance. For system questions, call the
NMLS Call Center at 240-386-4444.

THE APPLICANT/LICENSEE IS FULLY RESPONSIBLE FOR ALL OF THE REQUIREMENTS OF THE LICENSE FOR WHICH THEY ARE APPLYING. THE JURISDICTION SPECIFIC REQUIREMENTS CONTAINED HEREIN ARE FOR GUIDANCE ONLY TO FACILITATE APPLICATION THROUGH THE NMLS. SHOULD YOU HAVE QUESTIONS, PLEASE CONSULT LEGAL COUNSEL.

YOU ARE NOT AUTHORIZED TO ENGAGE IN FLORIDA REGULATED MORTGAGE ORIGINATION ACTIVITIES UNTIL YOU HAVE BEEN GRANTED A LICENSE ISSUED BY THE FLORIDA OFFICE OF FINANCIAL REGULATION.

After the new laws were past the exemptions to licensing were found at this link at the Florida Office of Financial Regulation.  The exemptions were to include only the following:

“General License: Exemptions:   I understand that there were significant changes to the exemptions from Chapter 494, F.S., in the last legislative session. What entities and individuals are going to be exempt under the new law?”

(1) The following are exempt from regulation under parts I, II, and III of this chapter:

(a) Any person operating exclusively as a registered loan originator in accordance with the S.A.F.E. Mortgage Licensing Act of 2008.
(b) A depository institution; subsidiaries that are owned and controlled by a depository institution and regulated by the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the National Credit Union Administration, or the Federal Deposit Insurance Corporation; or institutions regulated by the Farm Credit Administration.
(c) The Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; any agency of the Federal Government; any state, county, or municipal government; or any quasi-governmental agency that acts in such capacity under the specific authority of the laws of any state or the United States.
(d) An attorney licensed in this state who negotiates the terms of a mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client.
(e) A person involved solely in the extension of credit relating to the purchase of a timeshare plan, as that term is defined in 11 U.S.C. s. 101(53D)

(2) The following persons are exempt from regulation under part III of this chapter:

(a) A person acting in a fiduciary capacity conferred by the authority of a court.
(b) A person who, as a seller of his or her own real property, receives one or more mortgages in a purchase money transaction.
(c) A person who acts solely under contract and as an agent for federal, state, or municipal agencies for the purpose of servicing mortgage loans.
(d) A person who makes only nonresidential mortgage loans and sells loans only to institutional investors.
(e) An individual making or acquiring a mortgage loan using his or her own funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.
(f) An individual selling a mortgage that was made or purchased with that individual’s funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.

(3) It is not necessary to negate any of the exemptions provided in this section in any complaint, information, indictment, or other writ or proceeding brought under ss. 494.001-494.0077. The burden of establishing the right to an exemption is on the party claiming the benefit of the exemption.

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