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The Florida Senate

2004 Florida Statutes

Section 494.0062, Florida Statutes 2004

494.0062  Correspondent mortgage lender's license requirements.--

(1)  The office shall issue an initial correspondent mortgage lender license to any person who submits:

(a)  A completed application form;

(b)  A nonrefundable application fee of $500;

(c)  Audited financial statements, which document that the application has a bona fide and verifiable net worth pursuant to generally accepted accounting principles of $25,000 or more, which must be continuously maintained as a condition of licensure;

(d)  A surety bond in the amount of $10,000, payable to the State of Florida and conditioned upon compliance with ss. 494.001-494.0077, which inures to the office and which must be continuously maintained, thereafter, in full force;

(e)  Documentation that the applicant is duly 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; and

(f)  For applications filed after October 1, 2001, proof that the applicant's principal representative has completed 24 hours of classroom instruction in primary and subordinate financing transactions and in the provisions of this chapter and rules enacted under this chapter.

(2)  Notwithstanding the provisions of subsection (1), it is a ground for denial of licensure if the applicant, any principal officer or director of the applicant, or any natural person who is the ultimate equitable owner of a 10-percent or greater interest in the applicant has committed any violation specified in s. 494.0072, or has pending against her or him any criminal prosecution or administrative enforcement action, in any jurisdiction, which involves fraud, dishonest dealing, or any act of moral turpitude.

(3)  Each initial application for a correspondent mortgage lender's license must be in a form prescribed by the commission. The commission or office may require each applicant to provide any information reasonably necessary to make a determination of the applicant's eligibility for licensure. The commission or office may require that each officer, director, and ultimate equitable owner of a 10-percent or greater interest submit a complete set of fingerprints taken by an authorized law enforcement officer.

(4)  Each license is valid for the remainder of the biennium in which the license is issued.

(5)  A person licensed as a correspondent mortgage lender may make mortgage loans, but may not service a mortgage loan for more than 4 months after the date the mortgage loan was made or acquired by the correspondent mortgage lender.

(6)  A licensee under ss. 494.006-494.0077, or an agent or employee thereof, is deemed to have consented to the venue of courts of competent jurisdiction in this state regarding any matter within the authority of ss. 494.001-494.0077 regardless of where an act or violation was committed.

(7)  A correspondent mortgage lender is subject to the same requirements and restrictions as a licensed mortgage lender unless otherwise provided in this section.

(8)  A license issued under this section is not transferable or assignable.

(9)  A correspondent mortgage lender or branch office license may be canceled if it was issued through mistake or inadvertence of the office. A notice of cancellation must be issued by the office within 90 days after the issuance of the license. A notice of cancellation shall be effective upon receipt. The notice of cancellation shall provide the applicant with notification of the right to request a hearing within 21 days after the applicant's receipt of the notice of cancellation. A license shall be reinstated if the applicant can demonstrate that the requirements for obtaining the license pursuant to this chapter have been satisfied.

(10)  If an initial correspondent mortgage lender or branch office license has been issued but the check upon which the license is based is returned due to insufficient funds, the license shall be deemed canceled. A license deemed canceled pursuant to this subsection shall be reinstated if the office receives a certified check for the appropriate amount within 30 days after the date the check was returned due to insufficient funds.

(11)  Each correspondent lender shall designate a principal representative who exercises control over the business and shall maintain a form prescribed by the commission designating the principal representative. If the form is not accurately maintained, the business is considered to be operated by each officer, director, or equitable owner of a 10-percent or greater interest in the business.

(12)  After October 1, 2001, an applicant's principal representative must pass a written test prescribed by the commission which covers primary and subordinate mortgage financing transactions and the provisions of this chapter and rules adopted under this chapter.

(13)  A correspondent lender shall notify the office of the name and address of any new principal representative and shall document that such person has completed the educational and testing requirements of this section upon the lender's designation of a new principal representative.

History.--ss. 33, 50, ch. 91-245; s. 4, ch. 91-429; s. 16, ch. 95-313; s. 549, ch. 97-103; s. 25, ch. 99-155; s. 20, ch. 99-213; s. 7, ch. 2001-228; s. 538, ch. 2003-261.