Senate Bill sb1924

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    Florida Senate - 2003                                  SB 1924

    By Senator Clary





    4-999-03                                            See HB 577

  1                      A bill to be entitled

  2         An act relating to financial services; revising

  3         provisions relating to mortgage brokerage and

  4         mortgage lending; amending s. 494.0029, F.S.;

  5         specifying nontransferability of certain

  6         permits; providing requirements for changes in

  7         certain ownerships or controlling interests;

  8         providing for cancellation and reinstatement of

  9         certain permits; amending s. 494.00295, F.S.;

10         clarifying certain professional education

11         provisions as continuing education; amending s.

12         494.003, F.S.; clarifying types of financial

13         institutions eligible for exemptions from

14         application of certain provisions; amending s.

15         494.0031, F.S.; authorizing the Department of

16         Financial Services to require information from

17         applicants for licensure; specifying

18         nontransferability of certain licenses;

19         providing requirements for changes in certain

20         ownerships or controlling interests; amending

21         s. 494.0032, F.S.; providing for electronic

22         filing of certain license renewal forms;

23         providing for cancellation and reinstatement of

24         certain licenses; amending s. 494.0033, F.S.;

25         revising mortgage broker licensure

26         requirements; providing for third-party

27         administration of certain tests; authorizing

28         the department to waive an examination

29         requirement for certain individuals under

30         certain circumstances; authorizing the

31         department to assess a fee; amending s.

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         494.0034, F.S.; providing for electronic filing

 2         of certain license renewal forms; providing for

 3         cancellation and reinstatement of certain

 4         licenses; amending s. 494.0036, F.S.;

 5         clarifying a provision for issuance of a

 6         mortgage brokerage business branch office

 7         license; amending s. 494.006, F.S.; clarifying

 8         types of financial institutions eligible for

 9         exemptions from application of certain

10         provisions; amending s. 494.0061, F.S.;

11         clarifying application of certain accounting

12         principles; providing requirements for changes

13         in certain ownerships or controlling interests;

14         providing for third-party administration of

15         certain tests; authorizing the department to

16         waive an examination requirement for certain

17         individuals under certain circumstances;

18         authorizing the department to assess a fee;

19         amending s. 494.0062, F.S.; authorizing the

20         department to require information from

21         applicants for licensure; clarifying

22         application of certain accounting principles;

23         providing requirements for changes in certain

24         ownerships or controlling interests; providing

25         for third-party administration of certain

26         tests; authorizing the department to waive an

27         examination requirement for certain individuals

28         under certain circumstances; authorizing the

29         department to assess a fee; amending s.

30         494.0064, F.S.; providing for electronic filing

31         of certain license renewal forms; clarifying

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         certain professional education provisions as

 2         continuing education; providing for

 3         cancellation and reinstatement of certain

 4         licenses; amending s. 494.0065, F.S.;

 5         clarifying application of certain accounting

 6         principles; providing education and testing

 7         requirements for principal representatives;

 8         authorizing the department to waive an

 9         examination requirement for certain individuals

10         under certain circumstances; authorizing the

11         department to assess a fee; requiring mortgage

12         lenders to designate a principal representative

13         for certain purposes; requiring department

14         notification of designation and education of

15         principal representatives; providing for

16         cancellation and reinstatement of certain

17         licenses; amending s. 494.0066, F.S.; providing

18         for cancellation and reinstatement of certain

19         licenses; amending s. 494.0067, F.S.;

20         clarifying certain professional education

21         provisions as continuing education; amending

22         ss. 494.0016, 516.12, 520.997, and 537.009,

23         F.S.; revising the department's authority to

24         regulate certain licensees; authorizing the

25         department to provide by rule requirements for

26         destruction of certain information; clarifying

27         department authority to prescribe by rule

28         certain minimum information to be shown in

29         certain documents; amending s. 517.12, F.S.;

30         specifying an additional depository for certain

31         fees and documents required for registration of

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         certain securities licensees; providing an

 2         effective date.

 3  

 4  Be It Enacted by the Legislature of the State of Florida:

 5  

 6         Section 1.  Subsection (1) of section 494.0029, Florida

 7  Statutes, is amended, and subsections (4) and (5) are added to

 8  that section, to read:

 9         494.0029  Mortgage business schools.--

10         (1)  Each person, school, or institution, except

11  accredited colleges, universities, community colleges, and

12  area technical centers in this state, which offers or conducts

13  mortgage business training as a condition precedent to

14  licensure as a mortgage broker, mortgage or lender, or a

15  correspondent mortgage lender shall obtain a permit from the

16  department and abide by the regulations imposed upon such

17  person, school, or institution by this chapter and rules

18  adopted pursuant to this chapter. The department shall, by

19  rule, recertify the permits annually with initial and renewal

20  permit fees that do not exceed $500 plus the cost of

21  accreditation.

22         (4)  A permit issued under this section is not

23  transferable or assignable. Any person who, directly or

24  indirectly, seeks to own, control, or hold with power to vote,

25  or holds proxies representing 50 percent or greater of any

26  class of equity securities or ultimate equitable ownership of

27  a mortgage business school, shall file a new application for

28  and be approved for licensure prior to the effective date of

29  the change in ownership or controlling interest.

30         (5)  If an initial mortgage business school permit or

31  renewal permit has been issued but the check upon which the

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  license is based is returned for any reason, the permit shall

 2  be deemed canceled. A permit deemed canceled pursuant to this

 3  subsection shall be reinstated if the department receives a

 4  certified check for the appropriate amount within 30 days

 5  after the date the check was returned.

 6         Section 2.  Section 494.00295, Florida Statutes, is

 7  amended to read:

 8         494.00295  Professional continuing education.--

 9         (1)  Each mortgage broker, mortgage lender, and

10  correspondent mortgage lender must certify to the department

11  at the time of renewal that during the 2 years prior to an

12  application for license renewal, all mortgage brokers and the

13  principal representative and, loan originators, and associates

14  of a mortgage lender or correspondent mortgage lender have

15  successfully completed at least 14 hours of professional

16  continuing education programs covering primary and subordinate

17  mortgage financing transactions and the provisions of this

18  chapter. Licensees shall maintain records documenting

19  compliance with this subsection for a period of 4 years.

20         (2)  Professional continuing education programs must

21  contribute directly to the professional competency of the

22  participants, may only be offered by permitted mortgage

23  business schools or entities specifically exempted from

24  permitting as mortgage business schools, and may include

25  electronically transmitted or distance education courses.

26         (3)  The department shall adopt rules necessary to

27  administer this section, including rules governing qualifying

28  hours for professional continuing education programs and

29  standards for electronically transmitted or distance education

30  courses, including course completion requirements.

31  

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         Section 3.  Paragraphs (b) and (c) of subsection (1)

 2  and paragraph (e) of subsection (2) of section 494.003,

 3  Florida Statutes, are amended to read:

 4         494.003  Exemptions.--

 5         (1)  None of the following persons is subject to the

 6  requirements of ss. 494.003-494.0043:

 7         (b)  A state or federal chartered bank, registered bank

 8  holding company, trust company, savings and loan association,

 9  savings bank, credit union, or consumer finance company

10  licensed pursuant to chapter 516.

11         (c)  A wholly owned registered bank holding company

12  subsidiary or a wholly owned registered savings and loan

13  association holding company subsidiary that is approved or

14  certified by the Department of Housing and Urban Development,

15  the Veterans Administration, the Government National Mortgage

16  Association, the Federal National Mortgage Association, or the

17  Federal Home Loan Mortgage Corporation.

18         (2)  None of the following persons is required to be

19  licensed under ss. 494.003-494.0043:

20         (e)  A wholly owned subsidiary of a state or federal

21  chartered bank or savings and loan association the sole

22  activity of which is to distribute the lending programs of

23  such state or federal chartered bank or savings and loan

24  association to persons who arrange loans for, or make loans

25  to, borrowers.

26         Section 4.  Subsections (1), (3), and (5) of section

27  494.0031, Florida Statutes, are amended, and subsection (6) is

28  added to that section, to read:

29         494.0031  Licensure as a mortgage brokerage business.--

30         (1)  The department may require each applicant for a

31  mortgage lender license to provide any information reasonably

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  necessary to make a determination of the applicant's

 2  eligibility for licensure. The department shall issue a

 3  mortgage brokerage business license to each person who:

 4         (a)  Has submitted a completed application form and a

 5  nonrefundable application fee of $425; and

 6         (b)  Has a qualified principal broker pursuant to s.

 7  494.0035.

 8         (3)  Notwithstanding the provisions of subsection (1),

 9  it is a ground for denial of licensure if the designated

10  principal mortgage broker; any officer, director, partner, or

11  joint venturer; any natural person owning a 10-percent or

12  greater interest in the mortgage brokerage business; or any

13  natural person who is the ultimate equitable owner of a

14  10-percent or greater interest in the mortgage brokerage

15  business has committed any violation specified in ss.

16  494.001-494.0077 or has pending against him or her any

17  criminal prosecution or administrative enforcement action, in

18  any jurisdiction, which involves fraud, dishonest dealing, or

19  any other act of moral turpitude.

20         (5)  If an initial mortgage brokerage business or

21  branch office license has been issued but the check upon which

22  the license is based is returned for any reason due to

23  insufficient funds, the license shall be deemed canceled. A

24  license deemed canceled pursuant to this subsection shall be

25  reinstated if the department receives a certified check for

26  the appropriate amount within 30 days after the date the check

27  was returned due to insufficient funds.

28         (6)  A license issued under ss. 494.003-494.0043 is not

29  transferable or assignable. Any person or persons who,

30  directly or indirectly, seeks to own, control, or hold with

31  power to vote, or holds proxies representing 50 percent or

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  greater of any class of equity securities or ultimate

 2  equitable ownership of a mortgage brokerage business, shall

 3  file a new application for and be approved for licensure prior

 4  to the effective date of the change in ownership or

 5  controlling interest.

 6         Section 5.  Subsections (1) and (2) of section

 7  494.0032, Florida Statutes, are amended, and subsection (4) is

 8  added to that section, to read:

 9         494.0032  Renewal of mortgage brokerage business

10  license or branch office license.--

11         (1)  The department shall renew a mortgage brokerage

12  business license upon receipt of an electronically filed a

13  completed renewal form and payment of a nonrefundable renewal

14  fee of $375. Each licensee shall pay at the time of renewal a

15  nonrefundable renewal fee of $225 for the renewal of each

16  branch office license.

17         (2)  The department shall adopt rules establishing a

18  procedure for the biennial renewal of mortgage brokerage

19  business licenses and branch office licenses. The department

20  may prescribe the electronic format form for renewal and may

21  require an update of all information provided in the

22  licensee's initial application.

23         (4)  If the renewal of a mortgage brokerage business or

24  branch office license has been issued but the check upon which

25  the license is based is returned for any reason, the license

26  shall be deemed canceled. A license deemed canceled pursuant

27  to this subsection shall be reinstated if the department

28  receives a certified check for the appropriate amount within

29  30 days after the date the check was returned.

30  

31  

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         Section 6.  Subsection (1), paragraphs (b) and (c) of

 2  subsection (2), and subsection (7) of section 494.0033,

 3  Florida Statutes, are amended to read:

 4         494.0033  Mortgage broker's license.--

 5         (1)  Each natural person who acts as a mortgage broker

 6  for a mortgage brokerage business or acts as an associate for

 7  a mortgage lender or correspondent mortgage lender must be

 8  licensed pursuant to this section. To act as a mortgage

 9  broker, an individual must be an associate of a mortgage

10  brokerage business, mortgage lender, or correspondent mortgage

11  lender. A mortgage broker is prohibited from being an

12  associate of more than one mortgage brokerage business,

13  mortgage lender, or correspondent mortgage lender.

14         (2)  Each initial application for a mortgage broker's

15  license must be in the form prescribed by rule of the

16  department. The department may require each applicant to

17  provide any information reasonably necessary to make a

18  determination of the applicant's eligibility for licensure.

19  The department shall issue an initial license to any natural

20  person who:

21         (b)  Has passed a written test, adopted by the

22  department and administered by a third party approved by the

23  department, which is designed to determine competency in

24  primary and subordinate mortgage financing transactions as

25  well as to test knowledge of ss. 494.001-494.0077 and the

26  rules adopted pursuant thereto. The department may waive by

27  rule the examination requirement for any individual who has

28  passed a comparable test offered by a national group of state

29  mortgage regulators or a federal governmental agency that

30  covers primary and subordinate mortgage financing

31  transactions;

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         (c)  Has submitted a completed application and a

 2  nonrefundable application fee of $200. The department may set

 3  by rule an additional fee for taking a retake of the

 4  examination and any retakes required; and

 5         (7)  If an initial mortgage broker license has been

 6  issued but the check upon which the license is based is

 7  returned for any reason due to insufficient funds, the license

 8  shall be deemed canceled. A license deemed canceled pursuant

 9  to this subsection shall be reinstated if the department

10  receives a certified check for the appropriate amount within

11  30 days after the date the check was returned due to

12  insufficient funds.

13         Section 7.  Subsections (1) and (2) of section

14  494.0034, Florida Statutes, are amended, and subsection (4) is

15  added to that section, to read:

16         494.0034  Renewal of mortgage broker's license.--

17         (1)  The department shall renew a mortgage broker

18  license upon receipt of an electronically filed the completed

19  renewal form, certification of compliance with continuing

20  education requirements of s. 494.00295, and payment of a

21  nonrefundable renewal fee of $150.

22         (2)  The department shall adopt rules establishing a

23  procedure for the biennial renewal of mortgage broker's

24  licenses. The department may prescribe the electronic format

25  form of the renewal application and may require an update of

26  information since the licensee's last renewal.

27         (4)  If the renewal of a mortgage broker license has

28  been issued but the check upon which the license is based is

29  returned for any reason, the license shall be deemed canceled.

30  A license deemed canceled pursuant to this subsection shall be

31  reinstated if the department receives a certified check for

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  the appropriate amount within 30 days after the date the check

 2  was returned.

 3         Section 8.  Subsection (2) of section 494.0036, Florida

 4  Statutes, is amended to read:

 5         494.0036  Mortgage brokerage business branch offices.--

 6         (2)  The department shall issue a mortgage brokerage

 7  business branch office license to any licensee, once the

 8  department determines the licensee has submitted upon receipt

 9  of a completed application in a form as prescribed by

10  department rule and payment of an initial nonrefundable branch

11  office license fee of $225. Branch office licenses must be

12  renewed in conjunction with the renewal of the mortgage

13  brokerage business license. The branch office license shall be

14  issued in the name of the mortgage brokerage business that

15  maintains the branch office.

16         Section 9.  Paragraphs (a) and (c) of subsection (1)

17  and paragraph (a) of subsection (2) of section 494.006,

18  Florida Statutes, are amended to read:

19         494.006  Exemptions.--

20         (1)  None of the following persons are subject to the

21  requirements of ss. 494.006-494.0077 in order to act as a

22  mortgage lender or correspondent mortgage lender:

23         (a)  A state or federal chartered bank, registered bank

24  holding company, trust company, savings and loan association,

25  savings bank, credit union, or insurance company if the

26  insurance company is duly licensed in this state.

27         (c)  A wholly owned registered bank holding company

28  subsidiary or a wholly owned registered savings and loan

29  association holding company subsidiary that is approved or

30  certified by the Department of Housing and Urban Development,

31  the Veterans Administration, the Government National Mortgage

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  Association, the Federal National Mortgage Association, or the

 2  Federal Home Loan Mortgage Corporation.

 3         (2)(a)  A natural person employed by a mortgage lender

 4  or correspondent mortgage lender licensed under ss.

 5  494.001-494.0077 is exempt from the licensure requirements of

 6  ss. 494.001-494.0077 when acting within the scope of

 7  employment with the licensee.

 8         Section 10.  Paragraph (c) of subsection (1) and

 9  subsections, (5), (7), (9), and (10) of section 494.0061,

10  Florida Statutes, are amended to read:

11         494.0061  Mortgage lender's license requirements.--

12         (1)  The department may require each applicant for a

13  mortgage lender license to provide any information reasonably

14  necessary to make a determination of the applicant's

15  eligibility for licensure. The department shall issue an

16  initial mortgage lender license to any person that submits:

17         (c)  Audited financial statements, which documents

18  disclose that the applicant has a bona fide and verifiable net

19  worth, pursuant to accounting principles generally accepted in

20  the United States accounting principles, of at least $250,000,

21  which must be continuously maintained as a condition of

22  licensure;

23         (5)  A license issued in accordance with ss.

24  494.006-494.0077 is not transferable or assignable. Any person

25  or persons who, directly or indirectly, seek to own, control,

26  or hold with power to vote, or hold proxies representing 50

27  percent or greater of any class of equity securities or

28  ultimate equitable ownership of a mortgage lender, shall file

29  a new application for and be approved for licensure prior to

30  the effective date of the change in ownership or controlling

31  interest.

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         (7)  If an initial mortgage lender or branch office

 2  license has been issued but the check upon which the license

 3  is based is returned for any reason due to insufficient funds,

 4  the license shall be deemed canceled. A license deemed

 5  canceled pursuant to this subsection shall be reinstated if

 6  the department receives a certified check for the appropriate

 7  amount within 30 days after the date the check was returned

 8  due to insufficient funds.

 9         (9)  After October 1, 2001, an applicant's principal

10  representative must pass a written test, prescribed by the

11  department and administered by a third party approved by the

12  department, which covers primary and subordinate mortgage

13  financing transactions and the provisions of this chapter and

14  rules adopted under this chapter. The department may waive the

15  examination requirement for any individual who has passed a

16  comparable test offered by a national group of state mortgage

17  regulators or a federal governmental agency that covers

18  primary and subordinate mortgage financing transactions. The

19  department may set by rule a fee for taking the examination

20  and any retakes required.

21         (10)  A lender shall notify the department of the name

22  and address of any new principal representative and shall

23  document that the person has completed the educational and

24  testing requirements of this section within 90 days after upon

25  the designation of a new principal representative.

26         Section 11.  Subsections (1), (3), (8), (10), (12), and

27  (13) of section 494.0062, Florida Statutes, are amended to

28  read:

29         494.0062  Correspondent mortgage lender's license

30  requirements.--

31  

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1         (1)  The department may require each applicant for a

 2  correspondent mortgage lender license to provide any

 3  information reasonably necessary to make a determination of

 4  the applicant's eligibility for licensure. The department

 5  shall issue an initial correspondent mortgage lender license

 6  to any person who submits:

 7         (a)  A completed application form;

 8         (b)  A nonrefundable application fee of $500;

 9         (c)  Audited financial statements, which document that

10  the application has a bona fide and verifiable net worth,

11  pursuant to accounting principles generally accepted in the

12  United States, accounting principles of $25,000 or more, which

13  must be continuously maintained as a condition of licensure;

14         (d)  A surety bond in the amount of $10,000, payable to

15  the State of Florida and conditioned upon compliance with ss.

16  494.001-494.0077, which inures to the department and which

17  must be continuously maintained, thereafter, in full force;

18         (e)  Documentation that the applicant is duly

19  incorporated, registered, or otherwise formed as a general

20  partnership, limited partnership, limited liability company,

21  or other lawful entity under the laws of this state or another

22  state of the United States; and

23         (f)  For applications filed after October 1, 2001,

24  proof that the applicant's principal representative has

25  completed 24 hours of classroom instruction in primary and

26  subordinate financing transactions and in the provisions of

27  this chapter and rules enacted under this chapter.

28         (3)  Each initial application for a correspondent

29  mortgage lender's license must be in a form prescribed by the

30  department. The department may require each applicant to

31  provide any information reasonably necessary to make a

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  determination of the applicant's eligibility for licensure.

 2  The department may require that each officer, director, and

 3  ultimate equitable owner of a 10-percent or greater interest

 4  submit a complete set of fingerprints taken by an authorized

 5  law enforcement officer.

 6         (8)  A license issued under this section is not

 7  transferable or assignable. Any person or persons who,

 8  directly or indirectly, seek to own, control, or hold with

 9  power to vote, or hold proxies representing 50 percent or

10  greater of any class of equity securities or ultimate

11  equitable ownership of a correspondent mortgage lender, shall

12  file a new application for and be approved for licensure prior

13  to the effective date of the change in ownership or

14  controlling interest.

15         (10)  If an initial correspondent mortgage lender or

16  branch office license has been issued but the check upon which

17  the license is based is returned for any reason due to

18  insufficient funds, the license shall be deemed canceled. A

19  license deemed canceled pursuant to this subsection shall be

20  reinstated if the department receives a certified check for

21  the appropriate amount within 30 days after the date the check

22  was returned due to insufficient funds.

23         (12)  After October 1, 2001, an applicant's principal

24  representative must pass a written test, prescribed by the

25  department and administered by a third party approved by the

26  department, which covers primary and subordinate mortgage

27  financing transactions and the provisions of this chapter and

28  rules adopted under this chapter. The department may waive the

29  examination requirement for any individual who has passed a

30  comparable test offered by a national group of state mortgage

31  regulators or a federal governmental agency that covers

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  primary and subordinate mortgage financing transactions. The

 2  department may set by rule a fee for taking the examination

 3  and any retakes required.

 4         (13)  A correspondent lender shall notify the

 5  department of the name and address of any new principal

 6  representative and shall document that such person has

 7  completed the educational and testing requirements of this

 8  section within 90 days after upon the lender's designation of

 9  a new principal representative.

10         Section 12.  Subsections (1) and (2) of section

11  494.0064, Florida Statutes, are amended, and subsection (5) is

12  added to that section, to read:

13         494.0064  Renewal of mortgage lender's license; branch

14  office license renewal.--

15         (1)(a)  The department shall renew a mortgage lender

16  license upon receipt of an electronically filed a completed

17  renewal form and the nonrefundable renewal fee of $575. The

18  department shall renew a correspondent lender license upon

19  receipt of an electronically filed a completed renewal form

20  and a nonrefundable renewal fee of $475. Each licensee shall

21  pay at the time of renewal a nonrefundable fee of $325 for the

22  renewal of each branch office license.

23         (b)  A licensee shall also submit, as part of the

24  renewal form, certification that during the preceding 2 years

25  the licensee's principal representative and, loan originators,

26  and associates have completed the professional continuing

27  education requirements of s. 494.00295.

28         (2)  The department shall adopt rules establishing a

29  procedure for the biennial renewal of mortgage lender's

30  licenses, correspondent lender's licenses, and branch office

31  permits. The department may prescribe the electronic format

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  form for renewal and may require an update of all information

 2  provided in the licensee's initial application.

 3         (5)  If the renewal of a mortgage lender, correspondent

 4  mortgage lender, or branch office license has been issued but

 5  the check upon which the license is based is returned for any

 6  reason, the license shall be deemed canceled. A license deemed

 7  canceled pursuant to this subsection shall be reinstated if

 8  the department receives a certified check for the appropriate

 9  amount within 30 days after the date the check was returned.

10         Section 13.  Subsections (2) and (5) of section

11  494.0065, Florida Statutes, are amended, paragraphs (c) and

12  (d) are added to subsection (4) of that section, and

13  subsections (9), (10), and (11) are added to that section, to

14  read:

15         494.0065  Saving clause.--

16         (2)  A licensee issued a license pursuant to subsection

17  (1) may renew its mortgage lending license if it documents a

18  minimum net worth of $25,000, according to accounting

19  principles generally accepted in the United States accounting

20  principles, which must be continuously maintained as a

21  condition to licensure. The department shall require an

22  audited financial statement which documents such net worth.

23         (4)

24         (c)  For any transfer applications filed after October

25  1, 2001, proof shall be required that the applicant's

26  principal representative has completed 24 hours of classroom

27  instruction in primary and subordinate financing transactions

28  and in the provisions of this chapter and rules adopted under

29  this chapter.

30         (d)  For any transfer applications filed after October

31  1, 2001, an applicant's principal representative must pass a

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  written test, prescribed by the department and administered by

 2  a third party approved by the department, which covers primary

 3  and subordinate mortgage financing transactions and the

 4  provisions of this chapter and rules adopted under this

 5  chapter. The department may waive the examination requirement

 6  for any individual who has passed a comparable test offered by

 7  a national group of state mortgage regulators or a federal

 8  governmental agency that covers primary and subordinate

 9  mortgage financing transactions. The department may set by

10  rule a fee for taking the examination and any retakes

11  required.

12         (5)  The department may require each applicant for any

13  transfer to provide any information reasonably necessary to

14  make a determination of the applicant's eligibility for

15  licensure. The department shall issue the transfer of

16  licensure to any person who submits the following

17  documentation at least 90 days prior to the anticipated

18  transfer:

19         (a)  A completed application form.

20         (b)  A nonrefundable fee set by rule of the department

21  in the amount of $575 $500.

22         (c)  Audited financial statements that substantiate

23  that the applicant has a bona fide and verifiable net worth,

24  according to accounting principles generally accepted in the

25  United States accounting principles, of at least $25,000,

26  which must be continuously maintained as a condition of

27  licensure.

28         (d)  Documentation that the applicant is incorporated,

29  registered, or otherwise formed as a general partnership,

30  limited partnership, limited liability company, or other

31  

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  lawful entity under the laws of this state or another state of

 2  the United States.

 3         (e)  For applications filed after October 1, 2001,

 4  proof that the applicant's principal representative has

 5  completed 24 hours of classroom instruction in primary and

 6  subordinate financing transactions and in the provisions of

 7  this chapter and rules adopted under this chapter.

 8         (f)  For applications filed after October 1, 2001,

 9  proof that the applicant's principal representative has passed

10  a written test, prescribed by the department and administered

11  by a third party approved by the department, which covers

12  primary and subordinate mortgage financing transactions and

13  the provisions of this chapter and rules adopted under this

14  chapter. The department may waive the examination requirement

15  for any individual who has passed a comparable test offered by

16  a national group of state mortgage regulators or a federal

17  governmental agency that covers primary and subordinate

18  mortgage financing transactions. The department may set by

19  rule a fee for taking the examination and any retakes

20  required.

21  

22  The department may require that each officer, director, and

23  ultimate equitable owner of a 10-percent or greater interest

24  in the applicant submit a complete set of fingerprints taken

25  by an authorized law enforcement officer.

26         (9)  Each mortgage lender shall designate a principal

27  representative who exercises control over the business and

28  shall maintain a form prescribed by the department designating

29  the principal representative. If the form is not accurately

30  maintained, the business is considered to be operated by each

31  

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  officer, director, or equitable owner of a 10-percent or

 2  greater interest in the business.

 3         (10)  A lender shall notify the department of the name

 4  and address of any new principal representative and shall

 5  document that the person has completed the educational and

 6  testing requirements of this section within 90 days after the

 7  designation of a new principal representative.

 8         (11)  If a change of control license, branch office

 9  license, or lender or branch office renewal license has been

10  issued but the check upon which the license is based is

11  returned for any reason, the license shall be deemed canceled.

12  A license deemed canceled pursuant to this subsection shall be

13  reinstated if the department receives a certified check for

14  the appropriate amount within 30 days after the date the check

15  was returned.

16         Section 14.  Section 494.0066, Florida Statutes, is

17  amended to read:

18         494.0066  Branch offices.--

19         (1)  A branch office license is required for each

20  branch office maintained by a licensee under ss.

21  494.006-494.0077.

22         (2)  The department shall issue a branch office license

23  to any licensee, once the department determines the licensee

24  has submitted upon receipt of a completed application form as

25  prescribed by rule by the department and an initial

26  nonrefundable branch office license fee of $325. The branch

27  office application must include the name and license number of

28  the licensee under ss. 494.006-494.0077, the name of the

29  licensee's employee in charge of the branch office, and the

30  address of the branch office. The branch office license shall

31  be issued in the name of the licensee under ss.

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  494.006-494.0077 and must be renewed in conjunction with the

 2  license renewal.

 3         (3)  If an initial branch office license has been

 4  issued but the check upon which the license is based is

 5  returned for any reason, the license shall be deemed canceled.

 6  A license deemed canceled pursuant to this subsection shall be

 7  reinstated if the department receives a certified check for

 8  the appropriate amount within 30 days after the date the check

 9  was returned.

10         Section 15.  Paragraph (a) of subsection (10) of

11  section 494.0067, Florida Statutes, is amended to read:

12         494.0067  Requirements of licensees under ss.

13  494.006-494.0077.--

14         (10)(a)  Each licensee shall require the principal

15  representative and all loan originators or associates who

16  perform services for the licensee to complete 14 hours of

17  professional continuing education during each biennial license

18  period. The education shall cover primary and subordinate

19  mortgage financing transactions and the provisions of this

20  chapter and the rules adopted under this chapter.

21         Section 16.  Subsection (4) of section 494.0016,

22  Florida Statutes, is amended to read:

23         494.0016  Books, accounts, and records; maintenance;

24  examinations by the department.--

25         (4)  The department may prescribe by rule the minimum

26  information to be shown in the books, accounts, records, and

27  documents of licensees so that such records will enable the

28  department to determine the licensee's compliance with ss.

29  494.001-494.0077. In addition, the department may prescribe by

30  rule the requirements for destruction of books, accounts,

31  

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  records, and documents retained by the licensee after

 2  completion of the time period indicated in subsection (3).

 3         Section 17.  Subsection (3) is added to section 516.12,

 4  Florida Statutes, to read:

 5         516.12  Records to be kept by licensee.--

 6         (3)  The department may prescribe by rule the minimum

 7  information to be shown in the books, accounts, records, and

 8  documents of licensees for purposes of enabling the department

 9  to determine the licensee's compliance with ss.

10  516.001-516.36. In addition, the department may prescribe by

11  rule the requirements for destruction of books, accounts,

12  records, and documents retained by the licensee after

13  completion of the time period indicated in subsection (1).

14         Section 18.  Subsection (4) of section 520.997, Florida

15  Statutes, is amended to read:

16         520.997  Books, accounts, and records.--

17         (4)  The department is hereby authorized and empowered

18  to prescribe by rule the minimum information to be shown in

19  the books, accounts, and records, and documents of licensees

20  so that such records will enable the department to determine

21  compliance with the provisions of this chapter. In addition,

22  the department may prescribe by rule the requirements for

23  destruction of books, accounts, records, and documents

24  retained by the licensee after completion of the time period

25  indicated in subsection (3).

26         Section 19.  Subsection (5) of section 537.009, Florida

27  Statutes, is amended to read:

28         537.009  Recordkeeping; reporting; safekeeping of

29  property.--

30         (5)  The department may prescribe by rule the books,

31  accounts, and records, and documents, and the minimum

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    Florida Senate - 2003                                  SB 1924
    4-999-03                                            See HB 577




 1  information to be shown in the books, accounts, and records,

 2  and documents, of licensees so that such records will enable

 3  the department to determine compliance with the provisions of

 4  this act. In addition, the department may prescribe by rule

 5  the requirements for destruction of books, accounts, records,

 6  and documents retained by the licensee after completion of the

 7  time period indicated in subsection (3).

 8         Section 20.  Subsection (15) of section 517.12, Florida

 9  Statutes, is amended to read:

10         517.12  Registration of dealers, associated persons,

11  investment advisers, and branch offices.--

12         (15)  In lieu of filing with the department the

13  applications specified in subsection (6), the fees required by

14  subsection (10), and the termination notices required by

15  subsection (12), the department may by rule establish

16  procedures for the deposit of such fees and documents with the

17  Central Registration Depository or the Investment Adviser

18  Registration Depository of the National Association of

19  Securities Dealers, Inc., as developed under contract with the

20  North American Securities Administrators Association, Inc.;

21  provided, however, that such procedures must shall provide the

22  department with the information and data as required by this

23  section.

24         Section 21.  This act shall take effect upon becoming a

25  law.

26  

27  

28  

29  

30  

31  

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