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CS/CS/SB 2226--Mortgage brokering and mortgage lending.

The federal Housing and Economic Recovery Act of 2008 was enacted on July 30, 2008. Title V of this act is titled the "Secure and Fair Enforcement for Mortgage Licensing Act of 2008" or "SAFE Mortgage Licensing Act of 2008" (SAFE). It requires all states have a system of licensure meeting national definitions and minimum standards for mortgage loan originators. SAFE was enacted to provide greater accountability and regulation of loan originators and enhance consumer protections. It establishes regulatory requirements for individuals, rather than businesses, licensed or registered as mortgage brokers and lenders. These individuals are collectively known as loan originators. The legislation requires that states participate in a national licensing registry, the National Mortgage Licensing System and Registry (Registry) which will contain employment history, as well as disciplinary and enforcement actions against loan originators. There are a number of significant differences between the minimum licensing requirements under SAFE and current Florida requirements. In addition to satisfying other minimum requirements, the bill: requires state licensure and annual renewal of individual loan originators, including employees of mortgage broker and mortgage lender businesses; requires submission of fingerprints to the Office of Financial regulation (OFR) and the Registry; requires authorization for an independent annual credit report to be reviewed by the OFR; requires license renewal annually; requires a background check, and credit check as part of the annual license renewal; modifies education requirements; restructures fees; and provides for a recovery fund paid into by the loan originators. Further, the bill provides for a transition from the current licensure system and categories of licensees to a system meeting minimum federal requirements. Subject to the Governor's veto powers, the effective date of this bill is October 1, 2010 except as otherwise provided.
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Title Annotation:Business Law
Publication:Florida Bar News
Date:Jul 1, 2009
Previous Article:CS/HB 1065--Airline safety.
Next Article:SB 2330--Corporations.

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