The Florida Senate

494.0065  Saving clause.--

(1)(a)  Any person in good standing who holds an active registration pursuant to former s. 494.039 or license pursuant to former s. 521.205, or any person who acted solely as a mortgage servicer on September 30, 1991, is eligible to apply to the office for a mortgage lender's license and is eligible for licensure if the applicant:

1.  For at least 12 months during the period of October 1, 1989, through September 30, 1991, has engaged in the business of either acting as a seller or assignor of mortgage loans or as a servicer of mortgage loans, or both;

2.  Has documented a minimum net worth of $25,000 in audited financial statements; and

3.  Has applied for licensure pursuant to this section by January 1, 1992, and paid an application fee of $100.

(b)  A licensee pursuant to paragraph (a) may operate a wholly owned subsidiary or affiliate for the purpose of servicing accounts if the subsidiary or affiliate is operational as of September 30, 1991. Such subsidiary or affiliate is not required to obtain a separate license, but is subject to all the requirements of a licensee under ss. 494.006-494.0077.

(2)  A licensee issued a license pursuant to subsection (1) may renew its mortgage lending license if it documents a minimum net worth of $25,000, according to United States generally accepted accounting principles, which must be continuously maintained as a condition to licensure. The office shall require an audited financial statement which documents such net worth.

(3)  The commission may prescribe by rule forms and procedures for application for licensure, and amendment and withdrawal of application for licensure, or transfer, including any existing branch offices, in accordance with subsections (4) and (5), and for renewal of licensure of licensees under this section. The office may require each applicant to provide any information reasonably necessary to determine the applicant's eligibility for licensure. An application is considered received for purposes of s. 120.60 upon receipt of a completed application form as prescribed by commission rule, a nonrefundable application fee of $500, and any other fee prescribed by law.

(4)(a)  Notwithstanding ss. 494.0061(5) and 494.0067(2), the ultimate equitable owner, as of the effective date of this act, of a mortgage lender licensed under this section may transfer, one time, at least 50 percent of the ownership, control, or power to vote any class of equity securities of such mortgage lender, except as provided in paragraph (b). For purposes of this subsection, satisfaction of the amount of the ownership transferred may be met in multiple transactions or in a single transaction.

(b)  A person who is an ultimate equitable owner on the effective date of this act may transfer, at any time, at least 50 percent of the ownership, control, or power to vote any class of equity securities of such person to the person's spouse or child, and any such transferee may transfer, at any time, such ownership, control, or power to vote to a spouse or child of such transferee, in perpetuity.

(c)  For any transfer application filed on or after October 1, 2006:

1.  An applicant must provide proof that the applicant's principal representative has completed 24 hours of instruction in primary and subordinate financing transactions and in the provisions of this chapter and rules adopted under this chapter. This requirement is satisfied if the principal representative has continuously served in the capacity of a principal representative for a licensed entity under this chapter for at least 1 year and has not had a lapse in designation as a principal representative of more than 2 years before the date of the submission of the application or amendment in the case of a change in the principal representative. This requirement is also satisfied if the principal representative holds an active license as a mortgage broker in this state.

2.  An applicant's principal representative must pass a written test prescribed by the commission and administered by the office, or must pass an electronic test prescribed by the commission and administered by the office or a third party approved by the office, which covers primary and subordinate mortgage financing transactions and the provisions of this chapter and rules adopted under this chapter. The commission may set by rule a fee not to exceed $100 for the electronic version of the mortgage broker test. The commission may waive by rule the examination requirement for any person who has passed a test approved by the Conference of State Bank Supervisors, the American Association of Residential Mortgage Regulators, or the United States Department of Housing and Urban Development if the test covers primary and subordinate mortgage financing transactions. This requirement is satisfied if the principal representative has continuously served in the capacity of a principal representative for a licensed entity under this chapter for at least 1 year and has not had a lapse in designation as a principal representative of more than 2 years before the date of the submission of the application or amendment in the case of a change in the principal representative. This requirement is also satisfied if the principal representative holds an active license as a mortgage broker in this state.

(5)  Each initial application for a transfer must be in the form prescribed by rule of the commission. The commission or office may require each applicant for any transfer to provide any information reasonably necessary to make a determination of the applicant's eligibility for licensure. The office shall issue the transfer of licensure to any person who submits the following documentation at least 90 days prior to the anticipated transfer:

(a)  A completed application form.

(b)  A nonrefundable fee set by rule of the commission in the amount of $500. An application is considered received for purposes of s. 120.60 upon receipt of a completed application form as prescribed by commission rule, a nonrefundable application fee of $500, and any other fee prescribed by law.

(c)  Audited financial statements that substantiate that the applicant has a bona fide and verifiable net worth, according to United States generally accepted accounting principles, of at least $25,000, which must be continuously maintained as a condition of licensure.

(d)  Documentation that the applicant is incorporated, registered, or otherwise formed as a general partnership, limited partnership, limited liability company, or other lawful entity under the laws of this state or another state of the United States.

(e)  A complete set of fingerprints as the commission requires by rule for each designated principal representative, officer, director, control person, member, partner, or joint venturer of the applicant and the ultimate equitable owner of a 10-percent or greater interest in the applicant. A fingerprint card submitted to the office must be taken by an authorized law enforcement agency. The office shall submit the fingerprints to the Department of Law Enforcement for state processing, and the Department of Law Enforcement shall forward the fingerprints to the Federal Bureau of Investigation for federal processing. The cost of the fingerprint processing may be borne by the office, the employer, or the person subject to the background check. The Department of Law Enforcement shall submit an invoice to the office for the fingerprints received each month. The office shall screen the background results to determine if the applicant meets licensure requirements.

(f)  Information that the commission requires by rule concerning any designated principal representative; any officer, director, control person, member, partner, or joint venturer of the applicant or any person having the same or substantially similar status or performing substantially similar functions; or any individual who is the ultimate equitable owner of a 10-percent or greater interest in the mortgage lender. The commission may require information concerning such applicant or person, including, but not limited to, his or her full name and any other names by which he or she may have been known, age, social security number, qualifications and educational and business history, and disciplinary and criminal history.

(6)  Notwithstanding subsection (5), a transfer under subsection (4) may be denied if the applicant; designated principal representative; any principal officer, director, control person, member, partner, or joint venturer of the applicant; or any natural person owning a 10-percent or greater interest in the applicant has committed any violation specified in s. 494.0072, or has entered a plea of nolo contendere, regardless of adjudication, or has an action pending against the applicant in any criminal prosecution or administrative enforcement action, in any jurisdiction, which involves fraud, dishonest dealing, or any act of moral turpitude.

(7)  A license issued in accordance with this section is not transferable or assignable except as provided in subsection (4).

(8)  Each person applying for a transfer of any branch office pursuant to subsection (4) must comply with the requirements of s. 494.0066

(9)  Each mortgage lender shall designate a principal representative who exercises control over the business and shall keep the designation current on a form prescribed by commission rule designating the principal representative. If the information on the form is not kept current, the business is considered to be operated by each officer, director, or equitable owner of a 10-percent or greater interest in the business.

(10)  A lender shall notify the office of any change in the designation of its principal representative within 30 days after the change is effective. A new principal representative must satisfy the educational and testing requirements of this section within 90 days after being designated as the new principal representative. This requirement is satisfied if the principal representative has continuously served in the capacity of a principal representative for a licensed entity under this chapter for at least 1 year and has not had a lapse in designation as a principal representative of more than 2 years before the date of the submission of the application or amendment in the case of a change in the principal representative. This requirement is also satisfied if the principal representative currently holds an active license as a mortgage broker in this state.

History.--ss. 36, 50, ch. 91-245; s. 4, ch. 91-429; s. 17, ch. 95-313; s. 1, ch. 98-45; s. 540, ch. 2003-261; s. 18, ch. 2006-213.