FLORIDA MORTGAGE BROKER LAWS
RULES REGULATION MORTGAGE BROKERS CHAPTER 69V-40, FAC

69V-40.001 Definitions.
69V-40.008 Fees and Commissions.
69V-40.011 Misleading Practice; Penalty.
69V-40.015 Payment of Guaranty Fund Claims.
69V-40.020 Changes of Address.
69V-40.021 Fictitious Name Registration.
69V-40.022 Quarterly Report Filing Requirements.
69V-40.025 Mortgage Broker Examination.
69V-40.026 Curriculum for Mortgage Broker Pre-licensing Classroom Education.
69V-40.027 Mortgage Broker Pre-licensing Education Requirement.
69V-40.0271 Continuing Education Requirements for Mortgage Brokers, Loan Originators, and Principal Representatives.
69V-40.028 Permit for Mortgage Business School.
69V-40.0281 Mortgage Business Schools Prohibited Practices and Advertising/Publicity.
69V-40.029 Mortgage Business School Permit Renewal.
69V-40.030 Accreditation Process for a Mortgage Business School.
69V-40.031 Application Procedure for Mortgage Broker License.
69V-40.033 Disciplinary Guidelines for Mortgage Business Schools.
69V-40.043 Mortgage Broker License Renewal and Reactivation.
69V-40.051 Application Procedure for Mortgage Brokerage Business License.
69V-40.053 Mortgage Brokerage Business License and Branch Office License Renewal and Reactivation.
69V-40.058 Application Procedure for Mortgage Brokerage Business Branch Office License.
69V-40.060 Fees Earned Upon Obtaining a Bona Fide Commitment.
69V-40.088 Referrals.
69V-40.099 Change of Name, Change of Entity and Change in Control or Ownership.
69V-40.100 Application Procedure for Change in Ownership or Control of Saving Clause Mortgage Lender.
69V-40.105 Branch Office License for Change in Ownership or Control of Saving Clause Mortgage Lender.
69V-40.111 Disciplinary Guidelines.
69V-40.150 Out of State Examination Costs.
69V-40.155 Lock-in Statement.
69V-40.156 Third-party Fee Accounts.
69V-40.160 Principal Brokers.
69V-40.165 Branch Brokers.
69V-40.170 Books and Records.
69V-40.175 Mortgage Brokerage Files.
69V-40.177 Mortgage Brokerage and Lending Transaction Journal.
69V-40.200 Application Procedure for Mortgage Lender License.
69V-40.205 Mortgage Lender License, Mortgage Lender License Pursuant to Saving Clause, and Branch Office License Renewal and Reactivation.
69V-40.220 Application Procedure for Correspondent Mortgage Lender License.
69V-40.225 Correspondent Mortgage Lender License and Branch Office License Renewal and Reactivation.
69V-40.240 Application Procedure for Mortgage Lender or Correspondent Mortgage Lender Branch Office License.
69V-40.242 Principal Representative.
69V-40.245 Independent Contractors.
69V-40.250 Documentation of Net Worth and Surety Bond.
69V-40.260 Mortgage Lender Files.
69V-40.265 Mortgage Brokerage and Lending Transaction Journal.
69V-40.270 Financial Guaranty in Lieu of Uniform Single Audit.
69V-40.285 Noninstitutional Investor Funds Account.
69V-40.290 Acts Requiring Licensure as a Mortgage Broker, Mortgage Brokerage Business, Mortgage Lender or Correspondent Mortgage Lender.

69V-40.001 Definitions.
The definitions provided in Section 494.001, F.S., and the following defined terms, shall apply to this rule chapter and shall serve as the Office of Financial Regulation's interpretation unless the language of the rule indicates to the contrary:
(1) “Audited Financial Statements” shall be defined as those financial statements prepared by an independent certified public accountant, and shall include at least the following information:
(a) Date of report, manual signature, city and state where issued, and identification without detailed enumeration of the financial statements and schedules covered by the report;
(b) Representations as to whether the audit was made in accordance with generally accepted auditing standards and designation of any auditing procedures deemed necessary by the accountant under the circumstances of the particular case which may have been omitted, and the reason for their omission; nothing in this Rule however shall be construed to imply authority for the omission of any procedure which independent accountants would ordinarily employ in the course of an audit for the purpose of expressing
the opinions required under this rule;
(c) Statement of the opinion of the accountant in respect to the financial statements and schedules covered by the report, and the accounting principles and practices reflected therein, and as to the consistency of the application of the accounting principles, or as to any changes in such principles which would have a material effect on the financial statements;
(d) Any matters to which the accountant takes exception shall be clearly identified, the exception thereto specifically and clearly stated, and to the extent practicable, the effect of each such exception on the related financial statements given.
(2) “Financial Statements and Reports” shall be defined as those reports, schedules and statements, which contain at least a Statement of Financial Condition or Balance Sheet.
(3) “Unaudited Financial Statements” shall be defined as those financial statements not accompanied by the statements and representations as set forth in paragraphs (1)(b), (c) and (d) of this rule.
(4) Net worth shall be defined as total assets minus total liabilities, except that total assets shall not include the following:
(a) Any amount in excess of the lower of the cost or market value of mortgages in foreclosure, construction loans, or foreclosed property acquired through foreclosures;
(b) Any leasehold improvements not being amortized over the lesser of the expected life of the asset or the remaining term of the lease;
(c) Commitment fees paid which are not recoverable through the closing or selling of loans; and
(d) The value of any servicing contracts not determined in accordance with Financial Accounting Standards Board, Statement of Accounting Standards No. 65, dated September 1982.
(5) For the purposes of subsection 494.001(26), F.S., “receive” means obtaining possession of money or a negotiable instrument prior to receipt by the lender or investor.
(6) For the purposes of subsection 494.0043(1)(a), F.S., when providing an opinion of value of security property for brokering or selling a mortgage loan to a noninstitutional investor, “appraiser” means any person who is licensed, registered or certified in the State of Florida pursuant to the provisions of Chapter 475, F.S.
(7) For purposes of licensing and enforcement actions under Chapter 494, F.S., the phrase “Having a license, or the equivalent, to practice any profession or occupation revoked, suspended, or otherwise acted against . . .” as utilized in subsections 494.0041(2)(i) and 494.0072(2)(i), F.S., is deemed to include state or federal enforcement actions for orders of prohibition or removal of an officer, director, or employee of a state or federal financial institution, or any orders of prohibition or orders of removal, or any combination thereof, entered against or stipulated to by officers, directors, and employees of state or federal financial institutions.
(8) For the purpose of subsection 494.006(2)(a), F.S., “employed” or “employee” means a natural person engaged in the service of another for a salary or wages. Such person is subject to withholding, FICA, and other lawful deductions by the employer as a condition of employment and is subjected to the right of the employer to direct and control the actions of the employee.
(9) “Independent contractor” means a person who contracts with another to perform a service where this person is not directed or controlled by the other person or is required to maintain separate records regarding his contract for services in respect to, but not limited to, accounting and taxes.
(10) “Notice of noncompliance” means a notification by the Office of Financial Regulation that a person has violated an
administrative rule which is classified as a minor offense as set forth in Section 120.695, F.S. The mandatory fine that is associated with the administrative rule is waived for the first offense.
(11) “Moral Turpitude” shall be defined as follows: “Moral turpitude involves duties owed by persons to society as well as acts contrary to justice, honesty, principle or good morals.” This includes, but is not limited to, theft, extortion, use of the mail to obtain property under false pretenses, tax evasion, and the sale of (or intent to sell) controlled substances.
(12) For purposes of Rules 69V-40.100, 69V-40.200, 69V-40.220, and 69V-40.242, F.A.C.:
(a) “Operate” shall mean to exercise power or influence over the business operations.
(b) “Exercise” shall mean the discharge of an official duty or function.
(c) “Control” shall mean to have the influence and power to make decisions for the business.
Specific Authority 494.0011(2) FS. Law Implemented 120.695, 494.001, 494.004(1), 494.0041(2)(a), (i), 494.0043, 494.0061(2), (8), 494.0062(2), (11), 494.0067(5), 494.0072(2)(i) FS. History–Revised 9-23-65, Renumbered from 3-3.01 to 3D-40.01 on 9-8-75, Formerly 3D-40.01, Amended 12-7-89, 6-23-91, 8-24-92, 2-11-93, 11-17-93, 4-14-94, 9-7-94, 5-14-95, 7-25-96, 12-12-99, 12-8-02, Formerly 3D-40.001.
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69V-40.008 Fees and Commissions.
(1) A mortgage brokerage business shall state in each contract for services the total fee to be received. The total fee shall not exceed the maximum as prescribed in subsection 494.0042(2), F.S.
(2)(a) In determining the total mortgage brokerage fee, all compensation for the following services, by whatever name called, shall be included:
1. Arranging for a conditional mortgage loan commitment between a borrower and a lender;
2. Taking an application, assembling information and preparing all paperwork and documentation necessary for a conditional mortgage loan commitment;
3. Reviewing, analyzing, and evaluating a borrower's financial statements, income, and credit history; and
4. Incidental services utilized in arranging for and procuring a conditional loan commitment, such as, courier services, express mailings, and long distance telephone charges, except as provided in subparagraph (3)(a)12., below.
5. Premiums and other charges for insurance written in connection with a loan, except as provided in paragraph (5) below.
(b) The total mortgage brokerage fee shall include all compensation for the services described in paragraph (2)(a), whether or not the compensation is to be received by the licensee, a co-broker, an affiliate, or an independent third party.
(3)(a) In addition to stating the total mortgage brokerage fee, the licensee shall provide a good faith estimate of costs for services or products that may be incurred or expended on behalf of the borrower in arranging for the loan. Services or products for which costs shall be estimated, but which are not required to be included in the mortgage brokerage fee include the following:
1. Appraisal fee charged to obtain a statement of property value for the lender prior to closing. This subparagraph shall not be construed to prevent a licensee or lender from setting reasonable criteria for the selection of an appraiser;
2. Inspection fees required by the lender, its agents, or a governmental body or agency or quasi-governmental body or agency for the security property;
3. Loan assumption fee and a transfer fee charged to enable the buyer to assume existing loans;
4. Pest inspection fee charged to cover inspections for termites or other pest infestations;
5. Charges for title insurance as defined in Section 624.608, F.S., abstract of title, title search fee, and fees for an attorney's title opinion. A licensee may not receive or accept any monetary consideration or inducement in connection with the issuance of a title insurance policy in a transaction in which he was involved;
6. Survey or topography fees charged to determine the exact location of any structures and the lot line, as well as easements and rights of way;
7. Mortgage guaranty insurance as defined in Section 635.011, F.S.;
8. Credit report fee;
9. Photograph fees for photographs of the property offered as security, if required by the lender in writing and acceptable photographs of the property have not been otherwise provided to the lender;
10. Flood hazard determination fee charged by an entity to assist lenders in determining whether the security property is in a flood hazard area;
11. Real estate tax service fee charged by an entity engaged in the business of assisting lenders or their agents in assuring that real property taxes are paid on the security property;
12. Incidental fees, such as, courier services and express mailings if pre-authorized in writing by the borrower;
13. Settlement or closing fee charged by a settlement agent for distributing the proceeds of the mortgage loan;
14. Attorney's fees;
15. Charges imposed by federal, state, county or municipal governments or government agencies or quasi-governmental agencies including, but not necessarily limited to, the cost of recording the mortgage, cost of documentary stamps, and intangible taxes for the mortgage;
16. Environmental audit costs required by the lender, or by local ordinances or state or federal law; and
17. Costs incurred in curing title defects affecting the security property.
(b) The costs enumerated in paragraph (3)(a) may be charged and collected provided they are itemized and supported by an actual expenditure.
(4)(a) Premiums or other charges for life, credit life, accident, health, or loss-of-income insurance written in connection with a loan are not included in determining the mortgage broker fee if:
1. The licensee or registrant discloses to the borrower in writing that such insurance is not required to be purchased through the licensee; and
2. The licensee discloses to the borrower in writing the premiums for the initial term.
(b) Premiums or other charges for insurance that is written in connection with a mortgage loan and protects against loss or damage to property or liability arising out of the ownership or use of property are not included in determining the brokerage fee if the borrower may choose the insurance agent and the insurance provider.
(5) The mortgage brokerage fee does not include prepaid finance charges of the lender under the Federal Truth in Lending Act, as amended, and Federal Reserve Board Regulation Z that are disclosed on a Truth in Lending Disclosure form provided to the borrower.
(6) The maximum fees or commissions as provided in subsection 494.0042(2), F.S., must be based on the net proceeds of the loan.
(7) In determining the maximum fees or commissions on the gross proceeds of a loan, the following method may be used: On loans in excess of $1,000 and not over $5,650, add $1,500 to the gross proceeds of the loan and divide that sum by 11; and, on loans of $5,760 and over, divide the gross proceeds by 11 and add $227.27. On loans that are over $5,650 but less than $5,750, the maximum fee is the amount in excess of $5,000.
(8) If a mortgage brokerage business brokers an extension of the maturity date of the unpaid portion of an existing mortgage loan previously brokered by him, the total fees and commissions he may charge or receive on both the original transaction and the extension may not exceed in the aggregate the amount of costs and expenses permitted in subsection 494.0042(2), F.S.
(9) No person shall charge or exact, directly or indirectly, from the mortgagor or lender a fee or commission in excess of the maximum fees or commissions as set forth herein. All fees paid to or on behalf of the licensee including, but not limited to, bonus plans, advertisement allowances, incentive plans, kick-backs, premiums or discounts whether paid directly or indirectly or to an affiliate firm in which the licensee has an ownership interest, must be included in determining the maximum brokerage fees.
(10) All brokerage fees to other mortgage brokerage businesses disbursed from the loan proceeds shown on the closing statement shall reflect the name of each mortgage brokerage business or co-brokering mortgage brokerage business paid.
Specific Authority 494.0011(2) FS. Law Implemented 494.0025, 494.0038, 494.0041, 494.0042 FS. History–Revised 9-23-65, Amended 9-1-67, 5-8-68, Renumbered from 3-3.08 to 3D-40.08 on 9-8-75, Amended 9-29-75, 4-27-77, Joint Administrative Procedures Committee Objection Filed–See FAW Vol. 2, No. 19, May 7, 1976, Joint Administrative Procedures Committee Objection Withdrawn–See FAW Vol. 3, No. 30, July 29, 1977, Amended 7-6-78, 2-5-80, 8-17-83, Formerly 3D-40.08, Amended 1-5-87, 5-24-89, 8-24-92, Formerly 3D-40.008.
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69V-40.011 Misleading Practice; Penalty.
The taking and recording of a mortgage is tantamount to a commitment, and when funds are not available for immediate disbursement to the mortgagor, such procedure will be considered a misleading and deceptive practice, and to warrant suspension or revocation of the license of the licensee or registrant who does so, unless, prior to such recording, the licensee or registrant informs the mortgagor in writing of a definite date by which payment will be made, and secures the mortgagor's written permission for the delay thus entailed.
Specific Authority 494.0011(2) FS. Law Implemented 120.695, 494.0041 FS. History–Revised 9-23-65, Renumbered from 3-3.11 to 3D-40.11 on 9-8-75, Formerly 3D-40.11, Amended 1-5-87, 7-25-96, Formerly 3D-40.011.
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69V-40.015 Payment of Guaranty Fund Claims.
(1)(a) Subsequent to the expiration of two (2) years from the date the first complete and valid notice was received by the Office of Financial Regulation, the Office of Financial Regulation shall determine which claims have met the conditions prescribed in former subsection 494.042(2) and Section 494.043, F.S.
(b)1. The Office of Financial Regulation shall use the following formula for claims that have satisfied the requirements of former Sections 494.042 and 494.043, F.S., prior to the expiration of two years from the date the first complete and valid notice was received by certified mail by the Office of Financial Regulation:
2. The ratio of the Aggregate Amount to the Total Claim Amount shall never exceed one hundred (100) percent.
(2)(a) After taking into account claims that have satisfied the requirements of former subsection 494.042(2) and Section 494.043, F.S., prior to the expiration of two years from the date the first complete and valid notice was received by certified mail by the Office of Financial Regulation, the Office of Financial Regulation shall pay Individual Claim Amounts which have satisfied former subsection 494.042(2) and Section 494.043, F.S., in the order that certified mail notices required by former subsection 494.043(1)(e) or 494.043(2), F.S., were filed with the Office of Financial Regulation.
(b) The total amount of all claims paid shall not exceed the applicable Aggregate Amount.
(3) Claims filed by persons as tenants by the entirety shall be treated as the claim of one eligible claimant with respect to payment from the fund.
(4) Obtaining a lien pursuant to the Florida Enforcement of Foreign Judgments Act, Sections 55.501-.509, F.S., shall be
deemed to satisfy the requirements of obtaining a judgment from a Florida court of competent jurisdiction codified in former subsection 494.042(2), F.S., and former subsection 494.043(1)(a), F.S.
(5)(a) In the event that the licensee or registrant is subject to bankruptcy proceedings, in order to obtain payment from the fund, all claimants file with the Office of Financial Regulation a copy of such claimant's proof of claim by certified mail as required by former subsection 494.043(2), F.S.
(b) In the event that a claimant complies with former subsection 494.043(1)(e), F.S., and thereafter the licensee or registrant becomes subject to the provisions of the bankruptcy code, the former subsection 494.043(1)(e), F.S., notice shall be used to determine:

1. The date the two-year period referred in former subsection 494.044(1), F.S., expires; and

 

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2. The priority of payments with respect to such claimant should such claimant fail to satisfy the statutory requirements for payments prior to the expiration of the two-year period referred in former subsection 494.044(1), F.S.
(6) Any person who has met all requirements of former Section 494.042, F.S., and former Section 494.043, F.S., shall assign such right, title, and interest in the judgment, to the extent of their recovery from the fund to the Office of Financial Regulation using the Mortgage Brokerage Guaranty Fund Assignment, Form OFR-MBGF-002, effective 6-23-91, which is hereby incorporated by reference, available from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(7) Payment or disbursement from the fund shall be in accordance with Section 216.331, F.S., and shall be paid by warrant to any person who has been determined by a Florida court of competent jurisdiction to have suffered monetary damages as a result of any violation of this chapter by a licensee or registrant.
(8) In the event that sufficient funds are not available to pay claims which have been approved for payment, guaranty fund payments shall be made in the order that such claims were filed with the Office of Financial Regulation; provided that, claims approved by final order which have been appealed or are otherwise subject to further pending proceedings shall not be considered until such appeal or other proceedings have been completed.
Specific Authority 494.0011(2) FS. Law Implemented 494.0017 FS. History–New 6-23-91, Amended 11-17-93, 7-25-96, Formerly 3D-40.015.

69V-40.020 Changes of Address.
All licensees shall notify the Office of Financial Regulation of any change of address in writing to the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
Specific Authority 494.0011(2) FS. Law Implemented 494.0031, 494.0032, 494.0033, 494.0034, 494.0036, 494.0039, 494.0061, 494.0062, 494.0064, 494.0065, 494.0066, 494.0067 FS. History–New 10-1-91, Amended 8-24-93, 7-25-96, 12-12-99, Formerly 3D-40.020.
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69V-40.021 Fictitious Name Registration.
No person having a license or permit pursuant to Chapter 494, F.S., will be permitted to use a fictitious name unless they have provided evidence to the Office of Financial Regulation that such fictitious name is duly registered with the Florida Secretary of State, pursuant to Section 865.09, F.S.
Specific Authority 494.0011(2) FS. Law Implemented 494.00311(3)(e), 494.0041(2)(q), 494.0072(2)(q), 865.09 FS. History–New 8-7-97, Formerly 3D-40.021.
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69V-40.022 Quarterly Report Filing Requirements.
(1) Each mortgage brokerage business, correspondent mortgage lender, mortgage lender, and mortgage lender licensed pursuant to the savings clause, that was licensed with the Office of Financial Regulation on or before March 31, 2000, shall file an initial quarterly report on or before April 30, 2000 as required by subsections 494.004(6) and 494.0067(9), F.S. Thereafter, a quarterly report shall be filed as required by subsections 494.004(6) and 494.0067(9), F.S., within 30 days of the end of each calendar quarter.
(2) Each mortgage brokerage business, correspondent mortgage lender, mortgage lender and mortgage lender licensed pursuant to the savings clause, that becomes licensed with the Office of Financial Regulation after March 31, 2000, shall file an initial quarterly report within 30 days of the end of the calendar quarter in which the original license is issued, and thereafter shall file a quarterly report as required by subsections 494.004(6) and 494.0067(9), F.S.
(3) The report may be filed electronically on Form OFR-MX-QR-E by accessing the Office of Financial Regulation's website at www.dbf.state.fl.us, or the report may be filed on Form OFR-MX-QR in a typed format. Forms OFR-MX-QR and OFR-MX-QR-E are hereby incorporated by reference and are available from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(4) All reports, written or electronic, shall be received by the Office of Financial Regulation in Tallahassee within thirty (30) days after the last day of each calendar quarter. If the 30th day falls on a weekend or official holiday such reports will be considered timely received on the next business day.
(5) If a correct initial report or correct quarterly report thereafter is not timely received (incidental and isolated clerical errors or omissions shall not be considered a violation) as required by subsection 494.004(6), F.S., or subsection 494.0067(9), F.S., the penalty shall be the issuance of a “notice of noncompliance” for the first offense. Any subsequent finding of a violation of this rule shall be a fine of $500. The penalty for any intentional violations of this rule shall be a fine of $500 and suspension of the license.
Specific Authority 494.0011(2), 494.004(6), 494.0067(9) FS. Law Implemented 494.004(6), 494.0067(9) FS. History–New 11-7-00, Formerly 3D-40.022.
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69V-40.025 Mortgage Broker Examination.
(1) Form and Grading. The Office of Financial Regulation or its designee shall be responsible for the administration and grade notification of the Mortgage Broker Examination. The Office of Financial Regulation or its designee shall notify each applicant of the time, place and date of the examination(s) and shall provide the applicant with an official admission notice which shall be required for admission to sit for the examination. Information contained on the official admission notice shall supersede any other information at the assigned examination location.
(2) Examination Proctors. All examinations shall be administered and supervised by proctors who are Office of Financial Regulation employees or its designees. During the examination the examinees shall abide by the instructions of the proctors.
Specific instructions for completion of the examination shall be read by the proctor(s) and the examinees shall be permitted to ask reasonable questions relating to the instructions. Examinees shall not give or receive help from other examinees. There shall be no talking or communication between the examinees while the exam is in progress. Reference materials shall not be permitted in the examination room unless specifically authorized in the instructions.
(3) Admission after examination has commenced. Candidates arriving at the assigned examination location after the designated starting time shall be permitted to sit for the examination only after signing a statement clearly specifying the late arrival time and agreeing that they shall have only the time remaining in the examination period to complete the examination. Any candidate that refuses to sign such statement shall be disqualified from the examination and will be rescheduled for the next available examination date if that date is within the candidate's ninety (90) day application period. However, no candidate shall be admitted to the examination if any other candidate has completed the examination and left the examination room.
(4) Conduct which is grounds for exclusion. The following behavior(s) by any candidate is grounds for exclusion, anyone of which shall result in immediate removal from the examination room:
(a) Unnecessary noise or other disturbance that interferes with the examination process.
(b) Cheating or attempting to cheat.
(c) Observing the examination questions or answers of those candidates being tested.
(d) Removal of any examination materials from the examination room.
Conduct from candidates resulting in the exclusion from an examination may result in denial of licensure by the Office of Financial Regulation.
(5) Review procedures. Candidates failing the examination will be notified of the review procedures and will automatically be rescheduled for the next examination date provided that date is within their ninety (90) day application period. Candidates who fail the examination may review their examination one time, for a fee, and must do so at the time and place designated. Candidates reviewing shall have the right to have access to the examination booklet, a copy of their answer sheet and the grading key. Rules of examinee conduct during the review are the same as those for the examination.
(6) Examination content. Examinations will be written and composed of 100 multiple choice questions. Examinations will be written according to the weight content area as provided in the candidate Study Guide. The following conditions shall apply:
(a) Candidates must use a number 2 lead pencil to mark their choices on the answer sheet provided.
(b) The examination will be scored on the basis of 100 points for a perfect examination.
(c) An applicant who receives a grade of 75 points or higher shall be passed. A passing score will be valid for a period of 365 days from the date of passing the examination.
(d) Candidates will be allowed 3 hours to complete the examination, provided the candidate was not admitted to the examination late in which case the candidate will be limited to the time remaining in the original 3 hour period.
(e) Candidates may use a non-programmable hand held or battery type calculator.
(f) Only those answers indicated by the candidate on the answer sheet will be used in computing the examination score.
(g) Candidates will not be permitted to refer to any notes, books or memoranda.
(7) Notification of results. The applicant will be notified of the results of the examination by the Office of Financial Regulation or its designee. Said notification will be sent via U.S. mail within 10 business days of the examination date.
Specific Authority 494.0011(2) FS. Law Implemented 494.0033(2)(b) FS. History–New 10-1-91, Amended 6-8-92, Formerly 3D-40.025.
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69V-40.026 Curriculum for Mortgage Broker Pre-licensing Classroom Education.
Section 494.0033, F.S., requires any person applying for a mortgage brokerage license after July 1, 1992, to have completed twenty-four (24) hours of classroom education prior to becoming licensed. The curriculum for the education shall cover primary and subordinated financing transactions, the provisions of Chapter 494, F.S., and Chapter 69V-40, F.A.C., federal statutes which apply to the financing of real estate, current and accepted mortgage principles and technical information basic to the mortgage broker profession, and shall include the following:
(1) Demonstrate customer relationship skills as related to a mortgage broker. The student should be able to:
(a) Assist and advise customers in selecting loan programs, including interest rate, discount points and fees.
(b) Provide customer with required disclosures (good faith estimate, Reg Z, ARM rate, lock-in, etc.)
(c) Interpret and satisfy commitment contingencies with borrower.
(d) Explain the commitment of a lender.
(e) Demonstrate basic knowledge of the FAR/BAR real estate sale contract as it relates to financing real estate.
(f) Discuss types of real estate ownership with the consumer and determine how title shall be held.
(g) Explain closing documents and the procedure for determining that the borrower fully understands these documents. These
documents include the following:
1. The note.
2. Mortgage contract.
3. HUD-1 closing statement.
(h) Demonstrate the ability to explain the need and technical basis for the following:
1. Property inspection.
2. Survey.
3. Title insurance.
4. Restrictive covenants; deed restrictions; encroachments.
(i) Understand the pertinent provisions in a standard mortgage contract. Explain the purpose and use of a contract for deed.
(2) Demonstrate the ability to prepare, explain and execute written and oral communications. The student should be able to:
(a) Prepare, explain, execute and deliver brokerage agreement to the consumer.
(b) Demonstrate the ability to understand and explain FNMA application procedures including required disclosures; knowledge of credit report procedures; verifications of income, deposit and employment.
(c) Demonstrate basic knowledge of the appraisal process and identify FNMA appraisal procedures.
(d) Evaluate appraiser's conclusions for support by accurate, complete and consistent data.
(3) Explain and compute the mathematical skills necessary for success as a mortgage broker. The student should be able to:
(a) Calculate brokerage fees for gross loans and net loans.
(b) Prepare, explain, execute, and deliver a good faith estimate of maximum costs to the consumer.
(c) Calculate and analyze ratios of house payment-to-income and total obligations-to-income to determine acceptability according to FNMA standards.
(d) Calculate loan to value ratios, origination fees, and discounts.
(e) Understand and calculate documentary stamp tax on deed and mortgage, intangible tax on mortgage, calculation of daily interest and pro-rata of ad valorem tax.
(f) Calculate rate changes on ARMS (Adjustable Rate Mortgages).
(g) Convert hourly and weekly salaries to monthly income to compare income ratios.
(4) Identify and explain state laws and policies in regards to mortgage brokerage and lending procedures. The student should have a knowledge of the following:
(a) The “Definitions” and all subjects identified in the General Provisions, Part I, of Chapter 494, F.S.
(b) “Prohibited Practices” discussed in the General Provisions, Part I, of Chapter 494, F.S.
(c) Principles necessary to establish and operate a mortgage brokerage business.
(d) The authority of the various licensees in Chapter 494, F.S.
(e) The rules in Chapter 69V-40, F.A.C., which apply to a mortgage brokerage business, including, but not limited to: definition of moral turpitude, restoration of civil rights, and mortgage brokerage file requirements.
(f) The difference in licensing requirements for the two types of lenders; exemptions; lock-in procedures; fines and penalties for lenders; and ability to sell and service a loan for non-institutional investor.
(g) Penalties for failure to comply with Chapter 494, F.S., and the administrative rules in Chapter 69V-40, F.A.C.
(5) Explain federal laws which affect mortgage brokerage and lending transactions in the state of Florida. The student should understand the following federal statutes and/or procedures:
(a) Truth in Lending Act; Real Estate Settlement Procedures Act (RESPA); Fair Credit Reporting Act; Equal Credit Opportunity Act; and National Flood Insurance Act.
(b) Various government agencies which administer the federal statutes named in paragraph (a) above.
(6) Demonstrate knowledge of FNMA underwriting procedures. The student should be able to perform the following based on FNMA Guidelines:
(a) Demonstrate the ability to verify that the property is adequate security for the loan. Assess value of property, area markets and adverse conditions.
(b) Explain the requirements for determining if property meets investor's guidelines. Assess physical aspects such as age, location, drainage and utilities.
(c) Analyze stability of employment and probability of continued employment at verified income level.
(d) Analyze acceptability of credit history. Understand how to read a credit report.
(e) Calculate and analyze status of house payments-to-income and total obligations-to-income to determine acceptability.
(f) Analyze income tax returns of self-employed borrowers to confirm monthly average income.
(g) Determine that funds for closing and sources of those funds are acceptable.
(h) Determine and collect necessary exhibits to clear all underwriting contingencies.
(i) Understand the procedures for issuing adverse action notices.
(j) Assemble for submission an entire loan package for underwriting.
(7) Demonstrate basic business operations applicable to mortgage brokerage and banking. The student should be able to:
(a) Arrange rate lock-in. Identify and satisfy any outstanding commitment contingencies.
(b) Investigate and confirm application data including, but not limited to, credit report and property appraisal.
(c) Determine that survey of property has been arranged and guidelines have been met. Ascertain that no encroachments exist.
(d) Arrange for property inspection.
(e) Evaluate and review title insurance policy. Understand owners vs. mortgagee's policy. Define acceptable exceptions on an ALTA policy according to FNMA guidelines.
(f) Demonstrate the ability to arrange for funds in the amount of loan proceeds and disburse to proper parties. Understand the various methods of funding a loan.
(g) Discuss and identify principles and practices of mortgage brokerage and banking.
(h) Understand and explain the function and operation of Private Mortgage Insurance (PMI) and know when it is required.
(i) Explain to the customer the meaning of the terms: novation, assumption of mortgage, subject to the mortgage, and release of liability.
(8) Demonstrate knowledge and understanding of the secondary mortgage market by explaining the following principles:
(a) Terms of a loan commitment.
(b) FNMA eligibility requirements to purchase a single family residential conventional mortgage loan.
(c) Primary and secondary mortgage markets.
(d) Function and method of operation of FNMA, GNMA, and FHLMC.
(e) Method and marketing aspect of a GNMA mortgage backed pass through security consisting of FHA-VA mortgage loans.
(9) Demonstrate an understanding of the basic concepts of mortgage financing. The student should have an understanding of the following:
(a) Fixed and adjustable rate mortgages.
(b) Negative and positive amortization and when they occur.
(c) Various loan products available in the marketplace such as Graduated Payment Mortgages, Reverse Mortgages, and
Growing Equity Mortgages.
(d) Buy-down of an interest rate and its benefit to the borrower.
(e) Wraparound Mortgage.
(10) Demonstrate the ability to explain to the borrower the following basic functions of mortgage servicing:
(a) Collection and remittance of monthly payments.
(b) Escrow accounts (taxes and insurance).
(c) Foreclosure and/or deed in lieu of foreclosure.
(d) Payoffs and/or assumptions.
(e) Transfer of servicing rights from one servicer to another and effect on borrower.
(11) Intended Outcome: After successfully completing the program, the student should be able to:
(a) Demonstrate customer relationship skills as related to a mortgage broker.
(b) Demonstrate the ability to prepare, explain and execute written and oral communications which relate to the mortgage origination process.
(c) Explain and compute the mathematical skills necessary for success as a mortgage broker.
(d) Identify and explain federal and state laws and policies in regards to mortgage brokerage and lending procedures.
(e) Utilize effective selling techniques and procedures by explaining to the consumer the various loan products available in the marketplace and advising the consumer of the advantages and disadvantages of each.
(f) Demonstrate knowledge of FNMA application and underwriting procedures.
(g) Demonstrate the ability to explain the loan closing process; various funding methods; secondary market procedures; and FNMA purchase requirements.
(h) Demonstrate basic business operations applicable to mortgage brokerage and banking.
(i) Demonstrate the ability to satisfy consumer needs by explaining the basic concepts of mortgage financing and mortgage servicing.
Specific Authority 494.0011(2), 494.0033(3) FS. Law Implemented 494.0033 FS. History–New 7-2-92, Amended 5-19-96, 12-9-01, Formerly 3D-40.026.
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69V-40.027 Mortgage Broker Pre-licensing Education Requirement.
(1) Effective July 5, 1992, persons desiring to become licensed as a mortgage broker pursuant to Section 494.0033, F.S., shall
satisfactorily complete twenty-four (24) hours of classroom study on primary and subordinated financing transactions and the provisions of Chapter 494, F.S., and Chapter 69V-40, F.A.C. The course of study shall include the curriculum for mortgage broker classroom education in Rule 69V-40.026, F.A.C.
(2) Qualifying hours may be obtained by attendance at a duly permitted and accredited Mortgage Business School or an accredited college, university, community college, or area vocational-technical school in this State which offers the twenty-four
(24) hour mortgage brokerage training course. Any school offering qualifying hours must include the curriculum for mortgage broker classroom education, Rule 69V-40.026, F.A.C., and the provisions of Chapter 494, F.S., and Chapter 69V-40, F.A.C., as the basis for course study.
(3) For the purpose of this rule “School” means any duly permitted and accredited Mortgage Business School and any accredited college, university, community college or area vocational-technical school in this State, which offers the twenty-four (24) hour mortgage brokerage training course as a condition precedent to licensure as a mortgage broker. Such course shall include the curriculum described in Rule 69V-40.026, F.A.C.
(4) Within five (5) days of completion of each twenty-four (24) hour mortgage broker course, the school shall submit to the Office of Financial Regulation a typed list of all students who successfully completed the course. In lieu of the typed list, the school may submit the list on a 3.5'' diskette, by e-mail, or by accessing the Office of Financial Regulation's website at www.dbf.state.fl.us. The list shall include the full name of the student, the social security number of each student, the school's name, the school's license number, and the completion date. Each mortgage business school shall maintain student completion records for at least three (3) years from the completion dates.
(5) An instructor of a school who teaches a pre-licensing course that teaches the 24 hours of pre-licensing education may use the course toward the satisfactory completion of the pre-licensing education requirement.
Specific Authority 494.0011(2), 494.0016 FS. Law Implemented 494.0016, 494.00295, 494.0033 FS. History–New 7-5-92, Amended 11-5-95, 11-24-97, 8-22-99, 12-9-01, Formerly 3D-40.027.
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69V-40.0271 Continuing Education Requirements for Mortgage Brokers, Loan Originators, and Principal Representatives.
(1) Effective October 1, 2001, all persons licensed as a mortgage broker shall satisfactorily complete fourteen (14) hours of professional education (“continuing education”) covering primary and subordinate financing transactions and appropriate laws and regulations governing such transactions. The course of study shall include at least four (4) hours on the laws in Chapter 494, F.S., and the rules in Chapter 69V-40, F.A.C.
(2) Effective October 1, 2002, the principal representative, loan originators, and associates of a mortgage lender, correspondent mortgage lender, or mortgage lender pursuant to the savings clause shall satisfactorily complete fourteen (14) hours of professional continuing education covering primary and subordinate financing transactions and appropriate laws and regulations governing such transactions. The course of study shall include at least four (4) hours on the laws in Chapter 494, F.S., and the rules in Chapter 69V-40, F.A.C.
(3) Qualifying hours may be obtained by attendance at a duly permitted and accredited Mortgage Business School or an accredited college, university, community college, or area vocational-technical school in this State which offers the fourteen (14) hour continuing education course(s). Qualifying hours of at least 4 hours may be obtained by attending training courses covering the provisions of Chapter 494, F.S., and Chapter 69V-40, F.A.C., that are conducted by the Office of Financial Regulation or its Regional Offices.
(4) For the purpose of this rule, the following definitions will apply:
(a) “Hour” shall mean 60 minutes of class time, of which 50 minutes shall be instruction, with a maximum of 10 minutes of break per hour.
(b) “School” shall mean any duly permitted and accredited Mortgage Business School and any accredited college, university, community college, or area vocational-technical school in this State, which offers the fourteen (14) hour continuing education course.
(c) “Student” shall mean all persons licensed as a mortgage broker, the principal representative, and loan originators of a mortgage lender, correspondent mortgage lender, or mortgage lender pursuant to the savings clause.
(d) “Good Cause” means an incident or occurrence which is beyond the control of the student and which prevents attendance.
Examples of good cause include, but are not limited to, disabling accident, illness, call to military duty, or declared national emergency.
(5) The fourteen (14) hours of continuing education can be taken in one or more courses at one or more schools.
(6) Schools shall not issue certificates of completion to students who do not attend or complete the scheduled hours for any continuing education course.
(a) Schools shall be responsible for determining that the student attending or completing the continuing education course is the actual person scheduled to complete the class or session.
(b) At the discretion of the school, students may miss a class or session and attend a make-up class or session to complete the attendance requirements upon showing good cause.
(c) The school may hold makeup classes or sessions to accommodate the student.
(7) An instructor of a school who teaches a continuing education course may use the course toward the satisfactory completion of the continuing education requirement.
(8) Neither students nor instructors may earn continuing education credit for attending or instructing at any subsequent offering of the same continuing education course during any two (2) year period.
(9) The continuing education requirements are waived for the license renewal of the mortgage broker, for the biennial license period in which the individual became licensed as a mortgage broker.
(10) The continuing education requirements for the principal representative are waived for the license renewal of the mortgage lender, correspondent mortgage lender, or mortgage lender pursuant to the savings clause, for the biennial license period in which the principal representative completes the 24 hours of classroom education in accordance with Rule 69V-40.027, F.A.C., and also passed a written test in accordance with Rule 69V-40.025, F.A.C., in order to qualify to be designated as a principal representative.
(11) The continuing education courses may be offered through classroom instruction, electronic transmission (“Internet”), or distance education (“correspondence course”).
(12) The continuing education courses taught by using the Internet and correspondence courses shall have:
(a) Course subject matter, assignment work, scholastic standards and other related requirements substantially similar to the course offered by classroom instruction, having due regard however, to the different methods of presentation.
(b) Shall provide students with instructions on how to contact an instructor to answer inquiries. The school shall also disclose to the student when the instructor will be available, however the instructor shall respond within 2 business days to the student's inquiries.
(c) When the course is in the form of a video tape or CD-Rom, the presentation must be of a quality that permits the student to view and listen to the presentation without interfering with the learning process.
(13) Within five (5) days of completion of each continuing education course, the school shall submit to the student a certificate of completion indicating successful completion of the course, and the number of hours that course consisted of. The schools are not to submit copies of the continuing education requirement certificates to the Office of Financial Regulation. Each mortgage business school shall maintain all student course completion records for at least three (3) years from the completion dates.
Specific Authority 494.0011(2), 494.00295(3) FS. Law Implemented 494.0016, 494.0029, 494.00295, 494.0034, 494.0064, 494.0067 FS. History– New 12-9-01, Formerly 3D-40.0271.
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69V-40.028 Permit for Mortgage Business School.
(1) Application Process. Each person, school, or institution desiring to obtain a permit for a Mortgage Business School shall apply to the Office of Financial Regulation by submitting the following:
(a) A completed Application for Mortgage Business School Permit, Form OFR-MBS-101, revised 10/01, which is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(b) A nonrefundable application fee of $500 which shall be the permit fee for the annual period beginning October 1 of each year or any part thereof.
(c) A $400 nonrefundable accreditation fee which shall be for the annual period beginning October 1 of each year or any part thereof.
(2) Request for Additional Information. Any request for additional information will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application by the Office of Financial Regulation. The additional information must be received by the Office of Financial Regulation within thirty (30) days from the date of the request. Failure to respond to the request shall be construed by the Office of Financial Regulation as grounds for denial for failure to complete the application, and the application shall be denied pursuant to subsection 120.60(1), F.S.
(3) Refunds. If the application is withdrawn or denied, the application fee is nonrefundable. The accreditation fee shall be refunded when the application is withdrawn prior to a decision being rendered by the Office of Financial Regulation.
(4) Withdrawal of Application. An application may be withdrawn if the applicant submits a written request for same that is
approved by the Office of Financial Regulation before the application is approved or denied.
(5) Valid Period of Permit. Upon approval of an application, a permit will be issued for the remainder of the annual license
period, which ends each September 30th. The permit will be valid for this period unless the Office of Financial Regulation takes administrative action against it or unless the permit is terminated by the holder.
Specific Authority 494.0011(2), 494.0029(1), (3)(b) FS. Law Implemented 120.60(1), 494.0029 FS. History–New 11-5-95, Amended 8-22-99, 12-9-01, Formerly 3D-40.028.
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69V-40.0281 Mortgage Business Schools Prohibited Practices and Advertising/Publicity.
(1) The following practices are prohibited from being used in any publicity or advertising done by mortgage business schools
and will be considered a violation of subsections 494.0029(3)(c) and (d), F.S.:
(a) Making any reference or comparison to another school (named or unnamed).
(b) Any type of guarantee of non-measurable outcomes, such as, but not limited to, “satisfaction guaranteed.”
(c) Any claim to being the only, largest, best, less expensive, or other such comparison.
(d) Any claim or reference as to a school's knowledge of the State of Florida Mortgage Broker Test questions and answers.
(2) For the purpose of this rule, any publicity or advertising shall include:
(a) Any written material, including but not limited to, study guides, business cards, flyers, pamphlets, and correspondence.
(b) Any electronic media, including but not limited to, video and audio tapes, cassettes, or disks.
(c) Any oral presentation, including but not limited to, speeches and telephone conversations.
(3) Pass/Fail Ratio as used in subsection 494.0029(3)(f), F.S., shall be defined as any reference to how a student or any group of students performed on the State Mortgage Broker Examination. No reference shall be made to any comparative superlatives such as, but not limited to, “excellent passing ratio” or “better than average results.”
(4) The following additional practices of mortgage business schools are prohibited:
(a) Misrepresenting any material fact furnished to the Office of Financial Regulation.
(b) Failing to conduct classes or sessions for the total required hours.
(c) Allowing a proxy to complete the pre-licensing or continuing education course(s).
(d) Falsifying any pre-licensing or continuing education course completion record or other document related to the course.
(e) Offering to teach a pre-licensing or continuing education course without first being permitted as a mortgage business
school.
Specific Authority 494.0011(2) FS. Law Implemented 494.0025, 494.0029, 494.00295 FS. History–New 8-14-97, Amended 12-9-01, Formerly 3D-40.0281.
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69V-40.029 Mortgage Business School Permit Renewal.
(1) Each active Mortgage Business School permit shall be renewed for the annual period beginning October 1 of each year upon submission of the following:
(a) A permit renewal fee of $500 and a completed renewal form, Form OFR-MBS-202, Mortgage Business School Renewal Form, revised 10/01, which is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375; and
(b) A recertification accreditation fee of $400 for the school.
(2) Failure to submit the fees and renewal form required in subsection (1) prior to October 1 or each renewal year shall
automatically result in the permit becoming expired. After the license has expired, there is no provision for reinstatement. A new application for a permit must be submitted as described in Rule 69V-40.028, F.A.C.
Specific Authority 494.0011(2), 494.0029(1), (3)(b) FS. Law Implemented 494.0029 FS. History–New 11-5-95, Amended 8-22-99, 12-9-01, Formerly 3D-40.029.
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69V-40.030 Accreditation Process for a Mortgage Business School.
(1) Section 494.0029, F.S., authorizes the Office of Financial Regulation to evaluate each school by an accreditation process to determine compliance and competency of mortgage business schools and to recertify each school on an annual basis.
(2) The basis for accreditation of mortgage business schools that offer the 24-hour mortgage broker pre-licensing course and the professional education (“continuing education”) will consist of the following evaluation criteria:
(a) Minimum adherence to the required curriculum.
(b) Quality and substance of course outline, workbooks and study guide available to student from school.
(c) Reference material, library and training manuals available for non-classroom study.
(d) Training and visual aids equipment utilized in classroom.
(e) Instructor's ability to convey subject matter.
(f) Classroom and review procedures.
(g) Student interviews (post-course).
(h) Compliance with American Disabilities Act.
(i) Physical classroom facilities.
(j) Compliance with Florida Statutes and Administrative Rules.
(3) The basis for accreditation of mortgage business schools that only offer the 14-hour professional education (“continuing
education”) will consist of the following evaluation criteria:
(a) Compliance with Florida Statutes and Administrative Rules.
(b) Compliance with American Disabilities Act.
(4) The accreditation process will be conducted by the Office of Financial Regulation or its designee during the license year by one or more of the following methods:
(a) Pre-arranged on-site interview with owners and/or management;
(b) Visitation with no prior notice to observe instructor during classroom session;
(c) Questionnaires and/or personal interviews with current and former students;
(d) Questionnaires completed by owners and/or management;
(e) Written correspondence from prior students/student complaints;
(f) Compliance with Florida Statutes and Administrative Rules.
Specific Authority 494.0011(2) FS. Law Implemented 494.0029 FS. History–New 11-5-95, Amended 8-22-99, 12-9-01, Formerly 3D-40.030.
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69V-40.031 Application Procedure for Mortgage Broker License.
(1) Each person desiring to obtain licensure as a mortgage broker shall apply to the Office of Financial Regulation by
submitting the following:
(a) A completed Application for Licensure as a Mortgage Broker, Form OFR-MB-101, revised 10/99, which is hereby
incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375. The application must be completed and signed within thirty (30) days prior to receipt by the Office;
(b) The statutory nonrefundable application fee required by Section 494.0033, F.S., which shall be the fee for the biennial period beginning September 1 of each odd-numbered year or any part thereof;
(c) A completed fingerprint card accompanied by a $23 nonrefundable processing fee; and
(d) Evidence that the applicant has completed the mortgage broker education requirements of subsection 494.0033(3), F.S.
(2) Request for Additional Information. Any request for additional information, including a passing score on the Mortgage Broker Examination, will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application by the Office of Financial Regulation. The additional information must be received by the Office of Financial Regulation within ninety (90) days from the date of the request. Failure to respond within ninety (90) days from the date of request shall be construed by the Office of Financial Regulation as grounds for denial for failure to complete the application and the application shall be denied pursuant to Section 120.60(1), F.S.
(3) Amendment of Application. If the information contained in an Application for Licensure as a Mortgage Broker becomes inaccurate for any reason before the applicant becomes licensed, the applicant shall be responsible for correcting the inaccurate information within ten (10) days of the change occurring by following the procedures set forth in this subsection. An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within thirty (30) days from its receipt for filing. Otherwise, the application may be amended only with prior written permission from the Office of Financial Regulation. Requests to make changes which are material to the application or to the Office of Financial Regulation's evaluation of the application filed at any time after the application has been received may be deemed by the Office of Financial Regulation to be grounds for denial, and a new application, accompanied by the appropriate filing fee, may be required.
(4) Withdrawal of Application. An applicant may request withdrawal of an application prior to a determination of the
application being made by the Office of Financial Regulation by submitting a written request that the application be withdrawn.
(5) Refunds. If the application is withdrawn or denied, the application fee and fingerprint processing fee are nonrefundable.
(6) Upon approval of an application, a license will be issued for the remainder of the biennial licensure period.
(7) Restoration of Civil Rights.
(a) If one's civil rights have been restored and the conviction did not directly relate to the mortgage industry, the applicant shall provide evidence of restoration of civil rights.
(b) If one's civil rights have been restored and the conviction is directly related to the mortgage industry, the applicant shall provide evidence of restoration of civil rights and rehabilitation. Evidence of rehabilitation should include, but is not limited to, employment history and letters from probation officers and employers.
Specific Authority 215.405, 494.0011(2) FS. Law Implemented 120.60(1), 494.0033 FS. History–New 10-30-86, Amended 1-30-89, 5-23-89, 11-28-89, 10-1-91, 6-8-92, 6-3-93, 6-6-93, 4-25-94, 5-14-95, 9-3-95, 11-24-97, 8-22-99, 12-12-99, 12-11-03, Formerly 3D-40.031.
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69V-40.033 Disciplinary Guidelines for Mortgage Business Schools.
Each permitted and accredited mortgage business school which violates any provision of Chapter 494, F.S., or which fails to achieve minimum standards in the accreditation process described in Rule 69V-40.030, F.A.C., shall be subject to the following disciplinary guidelines:
(1) Failure to achieve minimum standards of accreditation shall result in any of the following penalties:
(a) Reprimand,
(b) Suspension,
(c) Revocation, and/or
(d) Probation.
(2) The probation shall be for such period of time and subject to such conditions as the Office of Financial Regulation may specify.
Specific Authority 494.0011(2), 494.0029 FS. Law Implemented 494.0029, 492.0041 FS. History–New 11-5-95, Amended 12-9-01, Formerly 3D-40.033.
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69V-40.043 Mortgage Broker License Renewal and Reactivation.
(1) Each active mortgage broker license shall be renewed for the biennial period beginning September 1 of each odd-numbered year upon submission of the statutory renewal fee required by Section 494.0034, F.S., certification of compliance with the continuing education requirements of Section 494.00295, F.S., and a completed renewal form. Form OFR-MB-103, Mortgage Broker License Renewal and Reactivation Form, revised 10/01, is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(2) A mortgage broker license that is not renewed as required in subsection (1) prior to September 1 of the renewal year shall
revert from active to inactive status. An inactive license may be reactivated within two (2) years after becoming inactive upon payment of the statutory renewal and reactivation fees required by Section 494.0034, F.S., certification of compliance with the continuing education requirements of Section 494.00295, F.S., and submission of a completed reactivation form. If August 31 of the year is on a Saturday, Sunday, or legal holiday pursuant to Section 110.117, F.S., then the renewals received on the next business day will be considered timely received.
(3) A mortgage broker license that is not renewed within two (2) years after becoming inactive shall expire.
(4) The Office of Financial Regulation shall not renew or reactivate a mortgage broker license if the minimum continuing education requirements are not satisfied prior to the renewal or reactivation.
(5) The licensee is responsible for maintaining copies of the certificate of completion for all continuing education courses completed and shall supply them to the Office of Financial Regulation upon request.
Specific Authority 494.0011(2), 494.0034(2) FS. Law Implemented 494.00295, 494.0034 FS. History–New 11-2-86, Amended 6-23-91, 11-12-91, 9-3-95, 12-12-99, 2-5-01, 12-9-01, Formerly 3D-40.043.
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69V-40.051 Application Procedure for Mortgage Brokerage Business License.
(1) Each person desiring to obtain licensure as a mortgage brokerage business shall apply to the Office of Financial Regulation by submitting the following:
(a) A completed Application for Licensure as a Mortgage Brokerage Business, Form OFR-MB-201, revised 10/01, which is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375;
(b) The statutory, nonrefundable application fee required by Section 494.0031, F.S., which shall be the fee for the biennial period beginning September 1 of each even-numbered year or any part thereof.
(c) Evidence that the applicant's designated principal broker has been actively licensed as a mortgage broker pursuant to Section 494.0033, F.S., for at least one year, or has demonstrated to the satisfaction of the Office of Financial Regulation that the designated principal broker has been actively engaged in a mortgage-related business for at least one year.
(d) For the purpose of this rule, examples of “actively engaged in a mortgage-related business” shall include, but are not limited to, the following positions that are engaged in the origination, underwriting, closing, and servicing of mortgage loans: loan originator, loan underwriter, officer, or director of a mortgage lender or correspondent mortgage lender; mortgage loan officer of a financial institution; mortgage broker in another state; loan closer for a title insurance company or agency; loan representative, loan underwriter, officer, or director of a private mortgage insurance company; and regulator that is directly responsible for the examination, investigation, or regulation of mortgage companies from this state, another state, or a federal government agency.
(2) Each ultimate equitable owner of 10% or greater interest, the chief executive officer and each director of an entity applying for licensure as a mortgage brokerage business, shall submit a completed fingerprint card and Biographical Summary, Form OFR-MBB-BIO-1 (revised 10/99), to the Office of Financial Regulation along with a $23 nonrefundable processing fee. Form OFR-MBB-BIO-1 is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(a) Any entity that is a wholly-owned subsidiary of a state or federally approved financial institution is exempt from the provisions of subsection (2).
(b) For purposes of this rule, “chief executive officer” means the person primarily responsible for the operation of the business, and a “financial institution” means a state or federal association, bank, trust company, international bank agency, or credit union.
(c) If the individual owner, director, or chief executive officer holds an active mortgage broker's license with the Office of Financial Regulation, they are exempt from the provisions of subsection (2).
(d) If an entity holds an active license under Chapter 494, F.S., with the Office of Financial Regulation, it is exempt from the provisions of subsection (2) when it applies for a different type of license, unless there has been a change of control of 50% or more of the ownership interest since the time its initial license was approved by the Office of Financial Regulation.
(e) Any claim to any of the above exemptions shall be supported by attaching evidence of the exemption with the application for license.
(3) Request for Additional Information. Any request for additional information will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application by the Office of Financial Regulation. The additional information must be received by the Office of Financial Regulation within forty-five (45) days from the date of the request. Failure to respond to the request within forty-five (45) days from the date of request shall be construed by the Office of Financial Regulation as grounds for denial for failure to complete the application and the application shall be denied pursuant to Section 120.60(1), F.S.
(4) Amendment of Application. If the information contained in an Application for Licensure as a Mortgage Brokerage Business becomes inaccurate for any reason before the applicant becomes licensed, the applicant shall be responsible for correcting the inaccurate information within ten (10) days of the change occurring by following the procedures set forth in this subsection. An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within thirty (30) days from its receipt for filing. Otherwise, the application may be amended only with prior written permission from the Office of Financial Regulation. Requests to make changes which are material to the application or to the Office of Financial Regulation's evaluation of the application filed at any time after the application has been received may be deemed by the Office of Financial Regulation to be grounds for denial, and a new application, accompanied by the appropriate filing fee, may be required.
(5) Withdrawal of Application. An applicant may request withdrawal of an application prior to a determination of the
application being made by the Office of Financial Regulation by submitting a written request that the application be withdrawn.
(6) Refunds. If the application is withdrawn or denied, the application fee is nonrefundable.
(7) Upon approval of an application, a license will be issued for the remainder of the biennial licensure period.
(8) Restoration of Civil Rights.
(a) If one's civil rights have been restored and the conviction did not directly relate to the mortgage industry, the applicant shall provide evidence of restoration of civil rights.
(b) If one's civil rights have been restored and the conviction is directly related to the mortgage industry, the applicant shall provide evidence of restoration of civil rights and rehabilitation. Evidence of rehabilitation should include, but is not limited to, employment history and letters from probation officers and employers.
Specific Authority 215.405, 494.0011(2) FS. Law Implemented 494.0031, 494.0035 FS. History–New 10-30-86, Amended 1-30-89, 11-28-89, 10-1-91, 6-6-93, 5-14-95, 7-14-96, 11-24-97, 8-22-99, 12-12-99, 12-9-01, 12-11-03, Formerly 3D-40.051.
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69V-40.053 Mortgage Brokerage Business License and Branch Office License Renewal and Reactivation.
(1) Each active mortgage brokerage business license shall be renewed for the biennial period beginning September 1 of each even-numbered year upon submission of the statutory renewal fee required by Section 494.0032, F.S., and a completed renewal form. Form OFR-MB-707, Mortgage Brokerage Business License Renewal and Reactivation Form, revised 10/99, is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(2) A mortgage brokerage business license that is not renewed as required in subsection (1) prior to September 1 of the renewal year shall revert from active to inactive status. An inactive license may be renewed within six (6) months after becoming inactive upon payment of the statutory renewal and reactivation fees required by Section 494.0032, F.S., and submission of a completed reactivation form. If August 31 of the year is on a Saturday, Sunday, or legal holiday pursuant to Section 110.117, F.S., then the renewals received on the next business day will be considered timely received.
(3) Each active mortgage brokerage business branch office license shall be renewed in conjunction with the mortgage
brokerage business license renewal upon submission of the statutory renewal fee required by Section 494.0032, F.S., and a completed renewal form. Form OFR-MB-708, Mortgage Brokerage Business Branch Office License Renewal and Reactivation Form, revised 10/99, is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(4) A mortgage brokerage business branch office license that is not renewed as required in subsection (3) prior to September 1 of the renewal year shall revert from active to inactive status. An inactive branch office license may be renewed within six (6) months after becoming inactive upon payment of the statutory renewal and reactivation fees required by Section 494.0032, F.S., and submission of a completed reactivation form. If August 31 of the year is on a Saturday, Sunday, or legal holiday pursuant to Section 110.117, F.S., then the renewals received on the next business day will be considered timely received.
(5) A mortgage brokerage business license and branch office license that is not renewed within six months after the end of the biennial period automatically expires.
(6) Renewal via the Internet. In lieu of filing the paper version of any of the foregoing renewal forms, a licensee may renew its license electronically by following the applicable instructions on the Office of Financial Regulation's website (www.dbf.state.fl.us) on the internet.
Specific Authority 494.0011(2), 494.0032(2),(3), 494.0036(2) FS. Law Implemented 494.0011(2), 494.0032, 494.0036 FS. History–New 11-2-86, Amended 2-8-90, 10-1-91, 12-12-99, 11-1-00, 2-5-01, Formerly 3D-40.053.
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69V-40.058 Application Procedure for Mortgage Brokerage Business Branch Office License.
(1) Every mortgage brokerage business which conducts mortgage brokerage business in this state from a branch office shall apply to the Office of Financial Regulation for a license to operate a branch office by submitting the following:
(a) A completed Application for Mortgage Brokerage Business Branch Office License, Form OFR-MB-301, revised 10/99, which is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375;
(b) The statutory, nonrefundable license fee required by Section 494.0036, F.S., which shall be the fee for the biennial period beginning September 1 of each even-numbered year of any part thereof.
(2) Any office or location shall be deemed to be a branch office if it meets the definition in subsection 494.001(7), F.S.
(3) Request for Additional Information. Any request for additional information will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application by the Office of Financial Regulation. The additional information must be received by the Office of Financial Regulation within forty-five (45) days from the date of the request. Failure to respond to the request within forty-five (45) days from the date of request shall be construed by the Office of Financial Regulation as grounds for denial for failure to complete the application and the application shall be denied pursuant to Section 120.60(1), F.S.
(4) Amendment of Application. If the information contained in an Application for Mortgage Brokerage Business Branch Office License becomes inaccurate for any reason before the applicant becomes licensed, the applicant shall be responsible for correcting the inaccurate information within ten (10) days of the change occurring by following the procedures set forth in this subsection. An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within thirty (30) days from its receipt for filing. Otherwise, the application may be amended only with prior written permission from the Office of Financial Regulation. Requests to make changes which are material to the application or to the Office of Financial Regulation's evaluation of the application filed at any time after the application has been received may be deemed by the Office of Financial Regulation to be grounds for denial, and a new application, accompanied by the appropriate filing fee, may be required.
(5) Withdrawal of Application. An applicant may request withdrawal of an application prior to a determination of the
application being made by the Office of Financial Regulation by submitting a written request that the application be withdrawn.
(6) Refunds. If the application is withdrawn or denied, the license fee is nonrefundable.
(7) Upon approval of an application, a license will be issued for the remainder of the biennial licensure period.
Specific Authority 494.0011(2), 494.0036(2) FS. Law Implemented 494.0036 FS. History–New 10-1-91, Amended 6-6-93, 5-14-95, 8-22-99, 12-12-99, Formerly 3D-40.058.
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69V-40.060 Fees Earned Upon Obtaining a Bona Fide Commitment.
Any consumer that would like to file a complaint with the Office of Financial Regulation as a result of any provision of Section 494.00421, F.S., not being met, may contact the Office of Financial Regulation by calling (800)848-3792 or any of the Office of Financial Regulation's regional offices.
Specific Authority 494.0011(2), 494.00421(7) FS. Law Implemented 120.695, 494.0031, 494.00421, 494.0073 FS. History–New 7-25-96, Formerly 3D-40.060.
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69V-40.088 Referrals.
(1) Any person who, for compensation or gain or in the expectation of compensation or gain, refers a borrower to a mortgage brokerage business, mortgage lender or correspondent mortgage lender is deemed to be acting as a mortgage broker requiring
licensure pursuant to Chapter 494, Florida Statutes. The referring person shall enter into a written mortgage brokerage business agreement with the borrower as required by Section 494.0038, F.S. If the fee to be paid to the referring person is solely for making the referral, the mortgage brokerage business agreement shall clearly and explicitly state that the fee is being earned solely for making the referral.
(2)(a) A person acting as a mortgage brokerage business shall not assign a written mortgage brokerage business agreement to another person acting as a mortgage brokerage business, mortgage lender acting as a mortgage brokerage business or correspondent mortgage lender acting as a mortgage brokerage business unless the assignment is agreed to in writing by the borrower. The agreement to accept the assignment shall be segregated from other provisions of the written mortgage brokerage business agreement and shall include the name of the assignee. This agreement shall require the signature of the borrower apart from the borrower's original signature for entering into the mortgage brokerage business agreement.
(b) As an alternative to paragraph (2)(a) herein, the borrower may enter into a separate mortgage brokerage business agreement with the successor mortgage brokerage business, mortgage lender or correspondent mortgage lender. The separate mortgage brokerage business agreement shall identify the amount of fees to be earned by each mortgage brokerage business as compensation for acting as a mortgage broker in the mortgage brokerage transaction involved.
Specific Authority 494.0011(2) FS. Law Implemented 494.001(2), 494.0038, 494.0041(2)(b) FS. History–New 1-10-93, Formerly 3D-40.088.
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69V-40.099 Change of Name, Change of Entity and Change in Control or Ownership.
(1) Each person licensed as a mortgage broker, mortgage brokerage business, mortgage lender, or correspondent mortgage lender which changes her or his name of record, as filed with the initial application for licensure, or any subsequent change on file and acknowledged by the Office of Financial Regulation thereafter, shall notify the Office of Financial Regulation, in writing, of the name change and shall provide documentation authorizing such name change within thirty (30) days of the date effecting such change. Any licensee pursuant to Sections 494.0061 or 494.0062, F.S., shall additionally provide a completed surety bond, on Form OFR-ML-444, Mortgage Brokerage and Mortgage Lending Act Surety Bond, which is hereby incorporated by reference (effective 10/91), executed in the new name of the licensee as documented by the requirements of this subsection. The form is available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(2) Each licensed mortgage brokerage business, mortgage lender, or correspondent mortgage lender which proposes to change the entity licensed with the Office of Financial Regulation shall file a new application for licensure pursuant to Section 494.0031, 494.0061, or 494.0062, F.S. Application forms are available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(3) Any person or persons, who directly or indirectly, seeks to own, control, or hold with power to vote, or holds proxies representing 50 percent or greater of any class of equity securities or ultimate equitable ownership of a mortgage brokerage business, mortgage lender or correspondent mortgage lender shall file a new application for licensure pursuant to Section 494.0031, 494.0061, or 494.0062, F.S., prior to the effective date of the change in ownership or control interest.
(4) Any person who is subjected to the requirements of subsection (2) or (3) herein, and who seeks to own, control, or hold power to vote of a mortgage lender licensed pursuant to the Saving Clause, Section 494.0065, F.S., is subjected to the net worth requirements as specified in subsection 494.0065(1)(a)2., F.S., when reapplying for licensure as required in subsections (2) and (3) above. An application for licensure under this subsection shall be submitted in accordance with Rule 69V-40.100, F.A.C.
(5) Restoration of Civil Rights.
(a) If one's civil rights have been restored and the conviction did not directly relate to the mortgage industry, the applicant shall provide evidence of restoration of civil rights.
(b) If one's civil rights have been restored and the conviction is directly related to the mortgage industry, the applicant shall provide evidence of restoration of civil rights and rehabilitation. Evidence of rehabilitation should include, but is not limited to, employment history and letters from probation officers and employers.
(6) Upon approval of an application, a letter informing the applicant of the Office of Financial Regulation's intent to approve the application will be sent to the applicant's mailing address as indicated on the application. Upon the Office of Financial Regulation's receipt of the original license issued to the former owners, notification that the change in ownership or control has been finalized and the effective date of closing, a license will be issued, effective the later of the date of closing or the date of notice of intent to approve, for the remainder of the biennial licensure period. Failure to respond to the Office of Financial Regulation's notice of intent to approve within thirty (30) days of the date of that letter will result in the application being withdrawn.
Specific Authority 494.0011(2) FS. Law Implemented 494.0031, 494.0061, 494.0062, 494.0065 FS. History–New 1-10-93, Amended 5-14-95, 9-3-95, 12-12-99, 11-1-00, Formerly 3D-40.099.
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69V-40.100 Application Procedure for Change in Ownership or Control of Saving Clause Mortgage Lender.
(1) Each person who seeks to obtain a controlling ownership or voting interest in a mortgage lender licensed pursuant to the saving clause shall apply to the Office of Financial Regulation by submitting the following:
(a) A completed application for Change in Ownership or Control of Saving Clause Mortgage Lender, Form OFR-MLST, revised 9/02, which is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375;
(b) A nonrefundable application fee of $500, which shall be the fee for the biennial period beginning September 1 of each even-numbered year or any part thereof;
(c) Audited financial statements documenting a minimum net worth of $25,000 as of the applicant's most recent fiscal year end. If the application is submitted within three (3) months of the most recent fiscal year end and an audited statement from the most recent fiscal year is not available, then an audited statement from the previous fiscal year end is acceptable.
(d) Designate a principal representative who shall operate and exercise control over the licensee's business. Beginning October 1, 2001, the principal representative must have completed 24 hours of classroom education in accordance with Rule 69V-40.027, F.A.C., and must also have passed a written test in accordance with Rule 69V-40.025, F.A.C., prior to the application being approved. If the designated principal representative holds an active mortgage broker license with the Office of Financial Regulation and was licensed as a mortgage broker on or after July 1, 1992, he or she will have satisfied the 24-hour classroom education and testing requirements of this section. Each mortgage lender applicant pursuant to the saving clause transfer shall include as part of the application a statement that the principal representative will operate and exercise control over the business as defined in subsection 69V-40.001(12), F.A.C.
(2) Each ultimate equitable owner of 10% or greater interest, the chief executive officer and each director of an entity applying for licensure as a mortgage lender licensed pursuant to the savings clause, shall submit a completed fingerprint card and Biographical Summary, Form OFR-ML-BIO-1 (revised 10/99), to the Office of Financial Regulation along with a $23 nonrefundable processing fee. Form ML-BIO-1 is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(a) Any entity that is a wholly-owned subsidiary of a state or federally approved financial institution is exempt from the provisions of subsection (2).
(b) For purposes of this rule, “chief executive officer” means the person primarily responsible for the overall activities of the business, and a “financial institution” means a state or federal association, bank, trust company, international bank agency, or credit union.
(c) If the individual owner, director, or chief executive officer holds an active mortgage broker's license with the Office of Financial Regulation, he or she is exempt from the provisions of subsection (2).
(d) If an entity holds an active license under Chapter 494, F.S., with the Office of Financial Regulation, it is exempt from the provisions of subsection (2) when it applies for a different type of license, unless there has been a change of control of 50% or more of the ownership since the time its initial license was approved by the Office of Financial Regulation.
(e) Any claim to any of the above exemptions shall be supported by attaching evidence of the exemption with the application for license.
(3) Request for Additional Information. Any request for additional information will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application by the Office of Financial Regulation. The additional information must be received by the Office of Financial Regulation within ninety (90) days from the date of the request. Failure to respond to the request within ninety (90) days from the date of request shall be construed by the Office of Financial Regulation as grounds for denial for failure to complete the application and the application shall be denied pursuant to subsection 120.60(1), F.S.
(4) Amendment of Application.
(a) An applicant shall notify the Office of Financial Regulation within ten (10) days of the occurrence of any change in the information reported on the application.
(b) An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within (30) days from its receipt for filing. Otherwise the application may be amended only with prior written permission from the Office of Financial Regulation. Requests to make changes which are material to the application or to the Office of Financial Regulation's evaluation of the application filed at any time after the application has been received may be deemed by the Office of Financial Regulation to be grounds for denial, and a new application, accompanied by the appropriate filing fee, may be required.
(5) Withdrawal of Application. An applicant may request withdrawal of an application prior to a determination of the
application being made by the Office of Financial Regulation by submitting a written request that the application be withdrawn.
(6) Refunds. If the application is withdrawn or denied, the application fee is nonrefundable.
(7) Upon approval of an application, a letter informing the applicant of the Office of Financial Regulation's intent to approve the application will be sent to the applicant's mailing address as indicated on the application. Upon the Office of Financial Regulation's receipt of the original MLS license issued to the former owners, notification that the change in ownership or control has been finalized and the effective date of closing, a license will be issued effective, the later of the date of closing or the date of notice of intent to approve, for the remainder of the biennial licensure period. Failure to respond to the Office of Financial Regulation's notice of intent to approve within thirty (30) days of the date of that letter will result in the application being withdrawn.
Specific Authority 494.0011(2), 494.0061(3), (8), (10) FS. Law Implemented 120.60, 494.001(29), 494.0061(1), (3), (8), 494.0065 FS. History– New 8-24-93, Amended 9-3-95, 8-22-99, 12-12-99, 12-9-01, 12-8-02, 12-11-03, Formerly 3D-40.100.
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69V-40.105 Branch Office License for Change in Ownership or Control of Saving Clause Mortgage Lender.
(1) Each person applying for a change in ownership or control of a saving clause mortgage lender, who also wishes to operate branch offices of that saving clause mortgage lender shall apply to the Office of Financial Regulation for a license to operate each branch office by submitting the following:
(a) A completed Application for Mortgage Lender Branch Office or Correspondent Mortgage Lender Branch Office License. Form OFR-ML-222B, revised 10/99, which is hereby incorporated by reference and available by mail from the Office of Financial Regulation, 200 East Gaines Street, Tallahassee, Florida 32399-0375.
(b) The statutory, nonrefundable license fee required by Section 494.0066, F.S., which shall be the fee for the biennial period beginning September 1 of each even-numbered year or any part thereof.
(2) Any office or location shall be deemed to be a branch office if it meets the definition in subsection 494.001(7), F.S.
(3) Request for Additional Information. Any request for additional information will be made by the Office of Financial Regulation within thirty (30) days after receipt of the application by the Office of Financial Regulation. The additional information must be received by the Office of Financial Regulation within forty-five (45) days from the date of the request. Failure to respond to the request within forty-five (45) days from the date of request shall be construed by the Office of Financial Regulation as grounds for denial for failure to complete the application and the application shall be denied pursuant to Section 120.60(1), F.S.
(4) Amendment of Application. An applicant may amend the application as to those factors generally within the control or selection of the applicant once, as a matter of course, at any time within (30) days from its receipt for filing. Otherwise the application may be amended only with prior written permission from the Office of Financial Regulation. Requests to make changes which are material to the application or to the Office of Financial Regulation's evaluation of the application filed at any time after the application has been received may be deemed by the Office of Financial Regulation to be grounds for denial, and a new application, accompanied by the appropriate filing fee, may be required.
(5) Withdrawal of Application. An applicant may request withdrawal of an application prior to a determination of the
application being made by the Office of Financial Regulation by submitting a written request that the application be withdrawn.
(6) Refunds. If the application is withdrawn or denied, the application fee is nonrefundable.
(7) Upon approval of an application, a license will be issued for the remainder of the biennial period.
Specific Authority 494.0011(2) FS. Law Implemented 494.0065, 494.0066 FS. History–New 8-24-93, Amended 9-3-95, 8-22-99, 12-12-99, Formerly 3D-40.105.
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69V-40.111 Disciplinary Guidelines.
(1) Pursuant to Sections 494.0041 and 494.0072, F.S., listed below is a range of disciplinary guidelines from which
disciplinary penalties will be imposed upon any person guilty of violating Chapter 494, F.S. The disciplinary guidelines are based upon a single-act violation of each provision listed. Multiple acts of the violated provisions or a combination of violations may result in a higher penalty than that for a single, isolated violation. For purposes of this rule, the order of penalties, ranging from lowest to highest is: notice of noncompliance, reprimand, fine, probation, suspension, and revocation. Nothing in this rule shall preclude any discipline imposed upon a person pursuant to a stipulation or settlement agreement, nor shall the range of penalties set forth in this rule preclude the Office of Financial Regulation from issuing a letter of guidance when appropriate.
(2) As provided in Sections 494.0041 and 494.0072, F.S., the Office of Financial Regulation may, in addition to other
disciplinary penalties, place a licensee, registrant, or applicant on probation. The placement of the licensee, registrant, or applicant on probation shall be for such a period of time and subject to such conditions as the Office of Financial Regulation may specify.
(3) The maximum penalties are a fine of up to $5,000.00 and/or as listed below for each count or separate offense:

(a) 494.0016(1) Revocation
(b) 494.0016(2) Probation
(c) 494.0016(3) Revocation
(d) 494.0016(4) Revocation
(e) 494.0023(1)(a)-(c) Probation
(f) 494.0024 Revocation
(g) 494.0025(1) Revocation
(h) 494.0025(2) Revocation
(i) 494.0025(3) Revocation
(j) 494.0025(4)(a)-(c) Revocation
(k) 494.0025(5) Revocation
(l) 494.0025(6) Revocation
(m) 494.0025(7) Revocation
(n) 494.0025(8) Revocation
(o) 494.0025(9) Revocation
(p) 494.0025(10) Revocation
(q) 494.0025(11) Revocation
(r) 494.0025(12) Revocation
(s) 494.0026(1) Revocation
(t) 494.0026(2) Revocation
(u) 494.0026(3) Revocation
(v) 494.0026(4) Revocation
(w) 494.0028(2) Probation
(x) 494.0028(3) Probation
(y) 494.0033(1) Revocation
(z) 494.00331 Probation
(aa) 494.0035(1) Probation
(bb) 494.0035(2) Probation
(cc) 494.0036(1) Probation
(dd) 494.0037(1) Revocation
(ee) 494.0037(2) Probation
(ff) 494.0037(3) Revocation
(gg) 494.0038(1)(a)-(b) Probation
(hh) 494.0038(2)(a)-(c) Probation
(ii) 494.0038(3)(a)-(c) Probation
(jj) 494.0038(4) Revocation
(kk) 494.0038(5) Revocation
(ll) 494.0038(6) Revocation
(mm) 494.0039(1)(a) Revocation
(nn) 494.0039(1)(b) Probation
(oo) 494.0039(2) Probation
(pp) 494.0039(3) Reprimand
(qq) 494.004(1) Revocation
(rr) 494.004(2) Probation
(ss) 494.004(3) Probation
(tt) 494.004(4) Revocation
(uu) 494.0041(2)(a)-(q) Revocation
(vv) 494.0042(2) Revocation
(ww) 494.0042(3) Revocation
(xx) 494.00421 Revocation
(yy) 494.0043(1)(a)-(d) Revocation
(zz) 494.0043(2) Revocation
(aaa) 494.0043(3) Revocation
(bbb) 494.0043(4) Revocation
(ccc) 494.0061(1)(c) Revocation
(ddd) 494.0062(1)(c) Revocation
(eee) 494.0063 Revocation
(fff) 494.0065(2) Revocation
(ggg) 494.0067(1) Probation
(hhh) 494.0067(2) Probation
(iii) 494.0067(3) Revocation
(jjj) 494.0067(4) Probation
(kkk) 494.0067(5) Revocation
(lll) 494.0067(6) Probation
(mmm) 494.0067(7) Reprimand
(nnn) 494.0067(8) Probation
(ooo) 494.0067(9) Probation
(ppp) 494.0068(1)(a)-(d) Probation
(qqq) 494.0068(2) Probation
(rrr) 494.0068(3) Revocation
(sss) 494.0068(4) Probation
(ttt) 494.0069(1) Probation
(uuu) 494.0069(2) Revocation
(vvv) 494.0069(3) Revo