The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2023-130, Laws of Florida, which was signed into law on May 24, 2023 and went into effect on July 1, 2023. The law authorizes mortgage ....

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

RULE NO.:RULE TITLE:

69V-40.111:Disciplinary Guidelines

PURPOSE AND EFFECT: The purpose and effect is to amend existing rules to conform to and implement Chapter No. 2023-130, Laws of Florida, which was signed into law on May 24, 2023 and went into effect on July 1, 2023. The law authorizes mortgage lenders to transact business from branch offices & remote locations and provides requirements for operating from remote locations. In addition, the rule and incorporated material will be amended to revise penalty provisions.

SUMMARY: Once amended, the rule will provide administrative penalties for persons who fail to adhere to statutory provisions related to business transaction locations and the supervision of remote locations. In addition, the amendments will revise certain penalty provisions in the rule and incorporated material.

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: The Agency expressly relies on an analysis of potential impact conducted by persons with subject matter knowledge of this rule.

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)

LAW IMPLEMENTED: 494.0016, 494.00165, 494.0023, 494.0025, 494.00255, 494.0026, 494.00296, 494.00331, 494.0035, 494.0036, 494.0038, 494.0039, 494.004, 494.0042, 494.0043, 494.0063, 494.00665, 494.0067, 494.0069, 494.007, 494.0071, 494.00721, 494.0075, 494.0076

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

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Sheila Harley, Office of General Counsel, [phone], [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Sheila Harley, Office of General Counsel, [phone], [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

69V-40.111 Disciplinary Guidelines.

(1) Pursuant to Section 494.00255, F.S., Office of Financial Regulation, Division of Consumer Finance, Disciplinary Guidelines for Mortgage Loan Originators and Mortgage Entities, Form OFR-494-14, which is hereby incorporated by reference, effective XX/XXXX 11/30/2015, available on the Office’s website at www.flofr.gov and available at www.flrules.org/Gateway/reference.asp?No=Ref-XXXX www.flrules.org/Gateway/reference.asp?No=Ref-06055, are applicable to each ground for disciplinary action that may be imposed by the Office against a person for a violation of Chapter 494, F.S. For purposes of this rule, the order of penalties, ranging from lowest to highest is: notice of noncompliance, written agreement, reprimand, fine, suspension, and revocation. In determining an appropriate penalty within the range of penalties prescribed in this rule for each citation as based upon the violation, the Office shall consider the circumstances set forth in subsection (3). The third column of the guidelines provides a summary of the statutory violations solely for the purpose of ease of reference. Persons subject to the rule should review the full text of the Florida sStatute cited in the second column of the guidelines for the complete description of the violation. For the purposes of this rule and the disciplinary guidelines, the term “citation” means: a notice of non-compliance; written agreement; or any final order docketed by the agency that specifies a violation of Chapter 494, F.S., or any rule promulgated under that chapter.

(2) Consistent with the disciplinary guidelines contained in the Office of Financial Regulation, Division of Consumer Finance, Disciplinary Guidelines for Mortgage Loan Originators and Mortgage Entities, Form OFR-494-14, the Office may issue: a written agreement which includes an administrative fine, but not adopted by final order; orders to revoke or suspend a license; orders to impose an administrative fine; orders denying applications; notices of non-compliance; and/or bring an action for injunction. Also, consistent with the disciplinary guidelines, to determine penalties, the Office may consider the combined effect of violations.

(a) For first citations identified in the disciplinary guidelines as minor violations, the Office shall issue a notice of non-compliance except when the Office identifies aggravating circumstances that would warrant a more severe penalty.

(b) For second citations identified in the disciplinary guidelines as minor violations, the Office may issue a written agreement which is not adopted by final order imposing an administrative fine. Written agreements may be used only when the violations are limited to minor violations.

In accordance with this rule:

(a) (c) Depending on the severity and repetition of specific violations, the Office may impose an administrative fine, suspension of a person, or revocation of a person or any combination thereof;.

(b) (d) The Office may impose a cease and desist order, a suspension, or both in conjunction with and in addition to any of the designated sanctions set forth in this rule when appropriate under the circumstances; and,.

(c) The Office will consider the person’s disciplinary history for the past 5 years in determining an appropriate penalty and may impose a more severe penalty when the disciplinary history includes past violations.

(3) – (6) No change

 

Rulemaking Authority 494.0011(2) FS. Law Implemented 494.0016, 494.00165, 494.0023, 494.0025, 494.00255, 494.0026, 494.00296, 494.00331, 494.0035, 494.0036, 494.0038, 494.0039, 494.004, 494.0042, 494.0043, 494.0063, 494.00665, 494.0065, 494.0067, 494.0069, 494.007, 494.0071, 494.00721, 494.0075, 494.0076 FS. History–New 3-20-91, Amended 7-25-96, Formerly 3D-40.111, Amended 11-9-15, XX-XX-XX.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Gregory C. Oaks

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

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: December 19, 2023

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: August 9, 2023