A mortgage professional is a resource for borrowers looking to find the right mortgage to meet their needs and their budget. However, as the housing market continues to recover and thrive, this career can carry some positive benefits.
Recent changes to the legislation covering private mortgage lenders could impact what types of loans require a Florida mortgage license. Let’s look at what the new laws cover and then what the current requirements are for getting your license.
What Does Florida Senate Bill 894 and House Bill 935 Mean?
In January, two bills made their way through the legislative process with a focus on private mortgage lenders. The bills would eliminate a longstanding business purpose exemption for loans secured by a dwelling, which meant that these loans were exempt from licensing requirements. Additionally, the law redefines what qualifies as a mortgage loan. The American Association of Private Lenders’ (AAPL) argued that this change could result in less market competition, translating into higher interest rates and that it would force businesses out of Florida.
“AAPL urges Florida legislators to consider the negative unintended consequences of the proposed legislation. We believe it may end up hurting the very constituents and economy they are trying to protect,” said Linda Hyde, AAPL’s executive director.
In light of these changes, it is important to recognize that the new definition of a mortgage loan could require you to get a mortgage license to do business in Florida even if you have not held one previously. Here is what you need to know about how to get your mortgage license in Florida.
Receiving Your License
You need to fill out an MU1 form and submit it through NMLS. There is a required application fee, along with a guarantee fund fee. Then you need to submit an audited financial statement for the most recent year of doing business showing that you have a network higher than $63,000.
Additionally, you will need to prove that you have a reliable control person for your MU1. If there were any prior criminal legal issues, your control person will need to show documentation regarding these incidents. These are just a few of the requirements, with testing and education classes to take as well.
Get Help with Your Florida Mortgage License
Obtaining a Florida mortgage license is a huge undertaking, especially after all the hurdles and costs outlined above. There is studying to do, tests to take, and fees to pay. While these legislative changes may impact your need for a license, there are still ways to make sure that you have everything necessary to get your mortgage license in Florida.
If at any point you need help during this process, do not hesitate to come to the Mortgage Licensing Group for help. Since 2006, we have been helping our clients in all 50 states meet these licensing requirements. We would love to assist as you start your new career in the mortgage industry.
The Mortgage Licensing Group, Inc. is a full-service mortgage licensing firm headquartered in Southern California that is recognized throughout the industry as an experienced and reliable service provider. Established in 2006, our company has been on the forefront of the ever-changing rules and regulations, helping alleviate the often daunting task of meeting the diverse state licensing requirements for our clientele.