The purpose and effect of the new rules are to define common terms used throughout Chapter 494, F.S., and Rule Chapter 69V-40, F.A.C., to implement the renewal and reactivation requirements for mortgage lender branch offices as found in section 494....

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

RULE NOS.:RULE TITLES:

69V-40.00111Determination of common terms used throughout Chapter 494, F.S., and Rule Chapter 69V-40

69V-40.00661Mortgage Lender Branch Office Renewal and Reactivation

69V-40.0361Mortgage Broker Branch Office Renewal and Reactivation

69V-40.176Reports of Condition

PURPOSE AND EFFECT: The purpose and effect of the new rules are to define common terms used throughout Chapter 494, F.S., and Rule Chapter 69V-40, F.A.C., to implement the renewal and reactivation requirements for mortgage lender branch offices as found in section 494.0066, to implement the renewal and reactivation requirements for mortgage broker branch offices as found in section 494.0036, to add a reports of condition provision specifying requirements for reports of condition, and to provide the current rulemaking authority for the rules.

SUMMARY: The new rules will define the term “material benefit” as used in Chapter 494, F.S. and Rule Chapter 69V-40, F.A.C., will specify the license renewal and license reactivation processes for mortgage broker branch office and mortgage lender branch office licensees as found in Chapter 494, and will establish provisions for reports of condition to be submitted by mortgage lenders and mortgage brokers.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: 1) No requirement for a SERC was triggered under Section 120.541(1), F.S.; and 2) The new rules will not exceed any one of the economic analysis criteria in a SERC, as set forth in Section 120.541(2)(a), F.S.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 494.0011(2), 494.00296(1)(c), 494.0036, 494.004, 494.0066, 494.0067 FS.

LAW IMPLEMENTED: 494.0011(2), 494.00296(1)(c), 494.0036 , 494.004, 494.0066, 494.0067 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Sheila Harley, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69V-40.00111 Determination of common terms used throughout Chapter 494, F.S., and Rule Chapter 69V-40, F.A.C.

(1) “Material Benefit” as used in s. 494.00296, FS, is a beneficial change in the current mortgage rates or terms where one or more of the following occurred:

(a) Reduction in Principal Amount of the loan by 10% or more;

(b) Permanent reduction in the annual interest rate of at least 1% on an annual basis; or

(c) Conversion of an Adjustable Interest Rate loan to a Fixed Rate loan and the annual interest rate is equal to or less than the current adjustable interest rate.

Rulemaking Authority 494.00296(1)(c) FS. Law implimented 494.00296(1)(c) FS. History–New_______.

 

69V-40.0361 Mortgage Broker Branch Office Renewal and Reactivation.

(1) In order to renew an active mortgage broker branch office license a licensee must submit the following to the Office no later than December 31 of each calendar year in which the licensee wishes to renew the license:

(a) A completed renewal submission as required by the Registry submitted through the Registry.

(b) Submit a total payment of $225 paid through the Registry.

(2) A mortgage broker office branch license that is not renewed as required in subsection (1) before January 1 of the renewal year shall revert from active to inactive status. In order to reactivate a mortgage broker branch office license, a licensee must submit the following to the Office before March 1 of each calendar year in which the licensee wishes to reactivate the license:

(a) A completed renewal submission as required by the Registry submitted through the Registry.

(b) Submit a total payment of $450 paid through the Registry which includes the following:

1. $225 nonrefundable renewal fee; and

2. $225 nonrefundable reactivation fee.

(3) A mortgage broker branch office license that is not reactivated before March 1 after becoming inactive shall expire.

(4) Request for Additional Information. The Office shall review each branch office renewal request and inform the licensee of any request for additional information required to complete its review. The additional information must be received by the Office within 30 days from the date of the request. Failure by the licensee to respond within 30 days from the date of the request shall be construed by the Office of Financial Regulation as grounds for denial of the renewal request for failure to provide the requested information.

(5) Upon the Office determining that a renewal request has been completed the Office shall determine if the licensee continues to meet the minimum standards for licensure as set forth in Section 494.0036, F.S. If a licensee continues to meet the minimum standards for licensure the Office shall renew the branch office license which shall be valid until December 31 of the year following the expiration date of the branch office license. If a licensee does not continue to meet the minimum standards for licensure the Office shall deny the renewal request pursuant to Section 494.0036, F.S.

Rulemaking Authority 494.0011(2), 494.0036 FS. Law Implemented 494.0011(2), 494.0036 FS. History–New______.

 

69V-40.00661- Mortgage Lender Branch Office Renewal and Reactivation.

(1) In order to renew an active mortgage lender branch office license a licensee must submit the following to the Office no later than December 31 of each calendar year in which the licensee wishes to renew the license:

(a) A completed renewal submission as required by the Registry submitted through the Registry; and

(b) Submit a total payment of $225 paid through the Registry.

(2) A mortgage lender branch office license that is not renewed as required in subsection (1) before January 1 of the renewal year shall revert from active to inactive status. In order to reactivate a mortgage lender branch office license, a licensee must submit the following to the Office before March 1 of each calendar year in which the licensee wishes to reactivate the license:

(a) A completed renewal submission as required by the Registry submitted through the Registry.

(b) Submit a total payment of $450 paid through the Registry which includes the following:

1. $225 nonrefundable renewal fee; and

2. $225 nonrefundable reactivation fee.

(3) A mortgage lender branch office license that is not reactivated before March 1 after becoming inactive shall permanently expire.

(4) Request for Additional Information. The Office shall review each branch office renewal request and inform the licensee of any request for additional information required to complete its review. The additional information must be received by the Office within 30 days from the date of the request. Failure by the licensee to respond within 30 days from the date of the request shall be construed by the Office of Financial Regulation as grounds for denial of the renewal request for failure to provide the requested information.

(5) Upon the Office determining that a renewal request has been completed the Office shall determine if the licensee continues to meet the minimum standards for licensure as set forth in Section 494.0066, F.S. If a licensee continues to meet the minimum standards for licensure the Office shall renew the branch office license which shall be valid until December 31 of the year following the expiration date of the branch office license. If a licensee does not continue to meet the minimum standards for licensure the Office shall deny the renewal request pursuant to Section 494.0066, F.S.

Rulemaking Authority 494.0011(2), 494.0066 FS. Law Implemented 494.0011(2), 494.0066 FS. History–New________.

 

69V-40.176 Reports of Condition.

The Standard Mortgage Call Report and the Expanded Mortgage Call Report, as required by the NMLS, each contain Residential Mortgage Loan Activity (RMLA) and Financial Condition (FC) components.

(1) Mortgage lenders that are an approved Fannie Mae, Freddie Mac Seller/Servicers, or Ginnie Mae Issuer must submit the complete Expanded Mortgage Call Report through NMLS within 45 days of the end of each calendar quarter.

(2) Mortgage lenders that are not an approved Fannie Mae, Freddie Mac Seller/Servicers, or Ginnie Mae Issuer must submit:

(a) The Residential Mortgage Loan Activity component of the standard mortgage call report within 45 days of the end of each calendar quarter, and;

(b) The Financial Condition component of the Standard Mortgage Call Report within 90 days of their fiscal year end.

(3) Mortgage brokers that are not an approved Fannie Mae, Freddie Mac Seller/Servicers, or Ginnie Mae Issuer must submit:

(a) The Residential Mortgage Loan Activity component of the standard mortgage call report within 45 days of the end of each calendar quarter, and;

(b) The Financial Condition component of the Standard Mortgage Call Report within 90 days of their fiscal year end.

Rulemaking Authority 494.0011(2), 494.004, 494.0067 FS. Law Implemented 494.004, 494.0067 FS. History–New________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Gregory Oaks

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Service Commission

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 5, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: July 28, 2015