| 1 | A bill to be entitled |
| 2 | An act relating to mortgage broker and lender license |
| 3 | exemptions; amending s. 494.006, F.S.; exempting from |
| 4 | mortgage broker and mortgage lender licensure requirements |
| 5 | natural persons under exclusive contract with certain |
| 6 | licensees; specifying licensee requirements; requiring a |
| 7 | surety bond; providing bond requirements; requiring a |
| 8 | business plan and a national background check; providing |
| 9 | an effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Paragraph (c) is added to subsection (2) of |
| 14 | section 494.006, Florida Statutes, to read: |
| 15 | 494.006 Exemptions.-- |
| 16 | (2) |
| 17 | (c) A natural person under exclusive contract with a |
| 18 | licensee under ss. 494.006-494.0077 to perform services that |
| 19 | would otherwise require licensure pursuant to this chapter is |
| 20 | exempt from the licensure requirements of ss. 494.001-494.0077 |
| 21 | when acting within such contract, provided the licensee: |
| 22 | 1. Originates or brokers mortgage loans only with mortgage |
| 23 | lenders affiliated with the licensee by way of ultimate common |
| 24 | ownership. |
| 25 | 2. Has provided the office with evidence of an undertaking |
| 26 | of accountability, in substantially the following form: |
| 27 |
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| 28 | The undersigned entity hereby undertakes full and direct |
| 29 | financial responsibility for all acts as a loan originator or |
| 30 | acts as a mortgage broker regulated pursuant to ss. 494.001- |
| 31 | 494.0077, Florida Statutes, and any rules adopted under such |
| 32 | provisions by its representatives under exclusive contract. It |
| 33 | is fully understood and agreed that the Office of Financial |
| 34 | Regulation of the Department of Financial Services may take |
| 35 | regulatory action against the undersigned corporate licensee for |
| 36 | the unlawful acts as a loan originator or acts as a mortgage |
| 37 | broker of such representatives, which acts are not in |
| 38 | conformance with ss. 494.001-494.0077, Florida Statutes, and any |
| 39 | rules adopted under such provisions. |
| 40 |
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| 41 | [Corporate Name] |
| 42 |
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| 43 | By: _______________________________ |
| 44 | [Name and title of person signing on |
| 45 | behalf of corporation] |
| 46 |
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| 47 | Date: ______________________________ |
| 48 |
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| 49 |
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| 50 | 3. Has provided a surety bond in the amount of $5 million |
| 51 | to guarantee the obligations under subparagraph 2. This |
| 52 | subparagraph shall not be deemed a limitation on the recovery |
| 53 | that may be had against the licensee based upon the mortgage |
| 54 | brokerage or lending activities conducted by any natural person |
| 55 | exempt under this paragraph. |
| 56 | a. The surety bond shall be in a form satisfactory to the |
| 57 | office and payable to the state for the benefit of any claimants |
| 58 | in this state against the licensee or any natural person exempt |
| 59 | under this paragraph. Such claimants may themselves bring suit |
| 60 | directly on the surety bond or the office may bring suit on |
| 61 | behalf of the claimants, in one action or in successive actions, |
| 62 | after the claimants have secured a judgment against the licensee |
| 63 | and the licensee has not paid the judgment. |
| 64 | b. A corporate surety bond filed with the office for |
| 65 | purposes of compliance with this subparagraph may not be |
| 66 | canceled by the licensee or the corporate surety except upon |
| 67 | written notice to the office by registered or certified mail |
| 68 | with return receipt requested. A cancellation shall not take |
| 69 | effect less than 30 days after receipt by the office of such |
| 70 | written notice. |
| 71 | c. The corporate surety shall, within 10 days after the |
| 72 | surety pays any claim to any claimant, give written notice to |
| 73 | the office by registered or certified mail, with return receipt |
| 74 | requested, of such payment with details sufficient to identify |
| 75 | the claimant and the claim or judgment paid. |
| 76 | d. Whenever the principal sum of such bond is reduced by |
| 77 | one or more recoveries or payments, the licensee shall furnish a |
| 78 | new or additional bond so that the total or aggregate principal |
| 79 | sum of such bond equals the sum required by this subparagraph. |
| 80 | Alternatively, a licensee may furnish an endorsement executed by |
| 81 | the corporate surety reinstating the bond to the required |
| 82 | principal sum. |
| 83 | e. A licensee shall at all times have and maintain the |
| 84 | bond in the amount prescribed by this subparagraph. If the |
| 85 | office at any time reasonably determines that the bond is |
| 86 | deficient in amount, or exhausted in whole or in part, the |
| 87 | office may, by written order, require the filing of a new or |
| 88 | supplemental bond. |
| 89 | f. The bond shall remain in place for 5 years after the |
| 90 | licensee ceases operations in this state. |
| 91 | 4. Has implemented a business plan providing for the |
| 92 | education of the natural persons exempted by this paragraph that |
| 93 | is commensurate with their duties and responsibilities, the |
| 94 | handling of consumer complaints related to the natural persons |
| 95 | exempted by this paragraph, and the supervision of the mortgage- |
| 96 | related activities of the natural persons exempted by this |
| 97 | paragraph. The business plan shall be reasonably designed to |
| 98 | prevent and detect violations of this chapter. |
| 99 | 5. Has conducted a national background check for each |
| 100 | proposed natural person exempted by this paragraph and, based on |
| 101 | such background check, the licensee commits to not contracting |
| 102 | with, without the prior written consent of the office, any |
| 103 | natural person to act as an exclusive agent who has been subject |
| 104 | to any action specified in s. 494.0041(2)(a), (t), or (u). |
| 105 | Section 2. This act shall take effect July 1, 2007. |