State Licensing Authority & Requirements Flashcards
The Florida Office of Financial Regulations (FL-OFR) is the…
entity that provides regulatory oversight for Florida’s financial services providers.
The Florida Office of Financial Regulation’s (FL-OFR) mission is:
To protect the citizens of Florida, promote a safe and sound financial marketplace, and contribute to the growth of Florida’s economy with smart, efficient, and effective regulation of the financial services industry.
The FL-OFR reports to the Financial Services Commission, which is comprised of:
Florida’s cabinet. Note: The Office is headed by a commissioner appointed by the Commission
Which are the three divisions and one bureau housed within the FL-OFR?
Division of Consumer Finance
Division of Financial Institutions
Division of Securities
Bureau of Financial Investigations
The three divisions of the FL-OFR oversee and regulate a wide range of…
financial enterprises and individuals, such as state-chartered banks, credit unions, consumer finance companies, and mortgage loan originators.
The Division of Consumer Finance licenses and regulates the nondepository financial services industry and conducts examinations and investigations. The scope of the Division of Consumer Finance’s authority includes:
Collection Agencies Consumer Finance Companies Money Services Businesses Retail Installment Sellers Title Loan Companies Loan Originator, Brokers, and Lenders
The Bureau of Financial Investigations (Bureau) is a _____ _____ _____ _____ _____ _____ located in Tallahassee, Orlando, Tampa, West Palm Beach, and Miami.
criminal justice agency with investigative teams
The regulatory and enforcement authority granted to the FL-OFR are set forth in:
Florida Statutes Chapter 494
Rule 69V-40, Florida Administrative Code-Mortgage Brokerage
The regulatory and enforcement authority granted to the FL-OFR specific to mortgage lenders are set forth in _____ of the Florida Statutes, Title XXXIII, Chapter 494 - Loan Originators and Mortgage Brokers.
Part III - Mortgage Lenders
Define Mortgage Lender
A person making a mortgage loan or servicing a mortgage loan for others or for compensation or gain, directly or indirectly, selling or offering to sell a mortgage loan to a noninstitutional investor.
Define Mortgage Broker
A person conducting loan originator activities through one or more licensed loan originators employed by the mortgage broker or as independent contractors to the mortgage broker.
Define Loan Originator
An individual who, directly or indirectly, solicits or offers to solicit a mortgage loan, accepts or offers to accept an application for a mortgage loan, negotiates or offers to negotiate the terms of conditions of a new or existing mortgage loan on behalf of a borrower or lender, or negotiates or offers to negotiate the sale of an existing mortgage loan to a non-institutional investor for compensation or gain.
The Florida Statutes Chapter 494 - Loan Originators and Mortgage Brokers (Chapter 494, FS) and Rule 69V-40, Florida Administrative Code - Mortgage Brokerage (Chapter 69V-40, FAC) set forth the…
requirements to obtain an initial license and maintain an existing license.
The following are exempt from regulation under parts II and III of this chapter:
- Any person operating exclusively as a registered loan originator
- A depository institution
- The Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; any agency of the Federal Government; any state, county, or municipal government; or any quasi-government agency that acts in such capacity under the specific authority of the laws of any state or the United States.
- An attorney licensed in this state who negotiates the terms of a mortgage loan on behalf of a client as an ancillary matter to the attorney’s representation of the client
- A person involved solely in the extension of credit relating to the purchase of a timeshare plan
- A person who performs only real estate brokerage activities
The following persons are exempt from regulation under part III of this chapter:
- A person acting in a fiduciary capacity conferred by the authority of a court
- A person who, as a seller of his or her own property, receives one or more mortgages in a purchase money transaction
- A person who acts solely under contract and as an agent for Federal, state, or municipal agencies for the purpose of servicing mortgage loans
- A person who makes only nonresidential mortgage loans and sells loans only to institutional investors
- An individual making or acquiring a mortgage loan using his own funds for his own investment, and who does not hold himself out to the public as being in the mortgage loan business
- An individual selling a mortgage that was made or purchased with that individual’s funds for his own investment, and who does not hold himself out to the public as being in the mortgage lending business
