During the regular 2008 legislative session, the Florida Legislature passed House Bill 5049. This bill amends Section 494.0033, F.S., to require the Office of Financial Regulation to make available an electronic version of the mortgage broker test ...

DEPARTMENT OF FINANCIAL SERVICES
Finance

RULE NO: RULE TITLE
69V-40.025: Mortgage Broker Examination
69V-40.031: Application Procedure for Mortgage Broker License
69V-40.100: Application Procedure for Transfer in Ownership or Control of Saving Clause Mortgage Lender
69V-40.200: Application Procedure for Mortgage Lender License
69V-40.220: Application Procedure for Correspondent Mortgage Lender License
69V-40.242: Principal Representative
PURPOSE AND EFFECT: During the regular 2008 legislative session, the Florida Legislature passed House Bill 5049. This bill amends Section 494.0033, F.S., to require the Office of Financial Regulation to make available an electronic version of the mortgage broker test by December 31, 2008. Persons required to take the mortgage broker test are required to bear the actual cost for the electronic version of the test; however, the fee may not exceed $75. House Bill 5049 was signed into law (Chapter 2008-135, Laws of Florida) by Governor Crist. The proposed rules implement these statutory requirements.
SUMMARY: The Office has contracted with a third party to administer the mortgage broker test. The third party will be delivering the test in an electronic format at testing centers located throughout the state at a cost to the Office of $43 per test. Any person required to take the mortgage broker test is responsible for paying for the actual cost of the test, which is $43. If a person fails the test and wishes to take the test again, the cost of the retake is $43.
SUMMARY: The Office has contracted with a third party to administer the mortgage broker test. The third party will be delivering the test in an electronic format at testing centers located throughout the state at a cost to the Office of $43 per test. Any person required to take the mortgage broker test is responsible for paying for the actual cost of the test, which is $43. If a person fails the test and wishes to take the test again, the cost of the retake is $43.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
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.
SPECIFIC AUTHORITY: 494.0011, 494.0033, 494.0016, 494.0061, 494.0062, 494.0065, 494.0067 FS.
LAW IMPLEMENTED: 120.60, 120.695, 494.0033, 494.0061, 494.0062, 494.0065, 494.0067 FS.
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Greg Oaks, Bureau Chief, Office of Financial Regulation, The Fletcher Building, 200 East Gaines Street, Tallahassee, Florida 32399, [phone], [e-mail]

THE FULL TEXT OF THE PROPOSED RULE IS:

69V-40.025 Mortgage Broker Examination.

(1)  No change.

(2) Upon receipt of filing an application filed through the REAL System, each test candidate will be responsible for scheduling his or her mortgage broker examination with the Office of Financial Regulation or its designee through the REAL system. In addition to any application fee as prescribed by Chapter 494, F.S., and any other fee required by administrative rule, the candidate shall pay $43 for the mortgage broker examination and every retake of the examination. The Office of Financial Regulation or its designee shall be responsible for the administration and grade notification of the Mortgage Broker Examination.

(3) No change.

(4) Cheating on an examination or violating test center or examination procedures published orally, in writing, or electronically at the test site by Office of Financial Regulation employees or its designees shall be grounds for denial of licensure by the Office of Financial Regulation. Admission after examination has commenced. Candidates arriving at the assigned examination location after the designated starting time shall be permitted to sit for the examination only after signing a statement clearly specifying the late arrival time and agreeing that they shall have only the time remaining in the examination period to complete the examination. Any candidate that refuses to sign such statement shall be disqualified from the examination and will be rescheduled for the next available examination date if that date is within the candidate’s ninety (90) day application period. However, no candidate shall be admitted to the examination if any other candidate has completed the examination and left the examination room.

(5) Conduct which is grounds for exclusion. The following behavior(s) by any candidate is grounds for exclusion, anyone of which shall result in immediate removal from the examination room:

(a) Unnecessary noise or other disturbance that interferes with the examination process.

(b) Cheating or attempting to cheat.

(c) Observing the examination questions or answers of those candidates being tested.

(d) Removal of any examination materials from the examination room.

Conduct from candidates resulting in the exclusion from an examination shall be grounds for denial of licensure by the Office of Financial Regulation.

(5)(6) Candidates failing the examination will be notified of the review procedures and will be responsible for requesting a retake of the rescheduling mortgage broker examination through the REAL system. Candidates will not be permitted to request schedule an examination that will be conducted on a date beyond the candidate’s ninety (90) day application period. Candidates who fail the examination may request a review of their previous examination one time, for a $30 fee, and must do so through the REAL system at the time and place designated. Requests for a review of an examination and the examination review fee must be filed with the Office of financial Regulation through the REAL System. Candidates reviewing shall have the right to have access to the examination questions, their examination responses, and the correct answers. Rules of examinee conduct during the review are the same as those for the examination.

(6)(7) Examinations will be written and composed of 110 (100 scored and 10 pretest questions) 100 multiple choice questions. Examination scores will be computed based on the following criteria: Examinations will be written according to the weight content area as provided in the candidate Study Guide. The following conditions shall apply:

(a) Candidates must use a number 2 lead pencil to mark their choices on the answer sheet provided.

(a)(b) The examination will be scored on the basis of 100 points.

(b)(c) An applicant who receives a grade of 75 points or higher shall be passed. A passing score will be valid for a period of 2 years from the date of passing the examination.

(d) Candidates will be allowed 3 hours to complete the examination, provided the candidate was not admitted to the examination late in which case the candidate will be limited to the time remaining in the original 3 hour period.

(e) Candidates may use a non-programmable hand held or battery type calculator.

(c)(f) Test scores will be derived from the number of correct responses.

(g) Candidates will not be permitted to refer to any notes, books or memoranda.

(7)(8) Candidates will be allowed 3 hours to complete the examination, provided the candidate was not admitted to the examination late in which case the candidate will be limited to the time remaining in the original 3 hour period. Candidates will be permitted to use a non-programmable hand held or battery type calculator.

(8)(9) Notification of results. The applicant will be notified of the results of the examination by the Office of Financial Regulation or its designee.

Specific Authority 494.0011(2) FS. Law Implemented 494.0033(2)(b) FS. History–New 10-1-91, Amended 6-8-92, Formerly 3D-40.025, Amended 3-23-08, 10-1-08,________.

 

69V-40.031 Application Procedure for Mortgage Broker License.

(1) Each person desiring to obtain licensure as a mortgage broker shall apply to the Office of Financial Regulation by submitting the following:

(a) through (d) No change.

(e) A nonrefundable mortgage broker examination fee of $43;

(f)(e) Evidence that the applicant has completed the mortgage broker education requirements of subsection 494.0033(3), F.S.; and

(g)(f) Evidence that the applicant has passed the mortgage broker examination as defined in Rule 69V-40.025, F.A.C.

(2) through (9) No change.

Specific Authority 215.405, 494.0011(2) FS. Law Implemented 120.60(1), 494.0033 FS. History–New 10-30-86, Amended 1-30-89, 5-23-89, 11-28-89, 10-1-91, 6-8-92, 6-3-93, 6-6-93, 4-25-94, 5-14-95, 9-3-95, 11-24-97, 8-22-99, 12-12-99, 12-11-03, Formerly 3D-40.031, Amended 5-24-05, 3-23-08,________.

 

69V-40.100 Application Procedure for Transfer in Ownership or Control of Saving Clause Mortgage Lender.

(1) Each person who seeks to obtain a controlling ownership or voting interest in a mortgage lender licensed pursuant to the saving clause shall apply to the Office of Financial Regulation by submitting the following:

(a) through (b) No change.

(c) A nonrefundable mortgage broker examination fee of $43 for the designated principal representative if required to take the mortgage broker examination pursuant to Section 494.0065(4)(c)2., F.S.;

(d)(c) Audited financial statements documenting a minimum net worth of $25,000 as of the applicant’s most recent fiscal year end. If the application is submitted within three (3) months of the most recent fiscal year end and an audited statement from the most recent fiscal year is not available, then an audited statement from the previous fiscal year end is acceptable.

(e)(d) Designate a principal representative who shall operate and exercise control over the licensee’s business. Each mortgage lender applicant pursuant to the saving clause transfer shall include as part of the application a statement that the principal representative will operate and exercise control over the business as defined in subsection 69V-40.001(12), F.A.C.

(2) through (7) No change.

Specific Authority 494.0011(2), 494.0065(3) FS. Law Implemented 120.60, 494.001(30), 494.0061(1), (3), (8), 494.0065, 494.0067(3), (4) FS. History–New 8-24-93, Amended 9-3-95, 8-22-99, 12-12-99, 12-9-01, 12-8-02, 12-11-03, Formerly 3D-40.100, Amended 3-23-08,  ________.

 

69V-40.200 Application Procedure for Mortgage Lender License.

(1) Each corporation, general partnership, limited partnership, limited liability company, or other lawful entity desiring to obtain licensure as a mortgage lender shall apply to the Office of Financial Regulation by submitting the following:

(a) and (b) No change.

(c) A nonrefundable mortgage broker examination fee of $43 for the designated principal representative if required to take the mortgage broker examination pursuant to Section 494.0061(8), F.S.;

(d)(c) Audited financial statements documenting a minimum net worth of $250,000 as of the applicant’s most recent fiscal year end. If the application is submitted within three (3) months of the most recent fiscal year end and an audited statement from the most recent fiscal year is not available, an audited statement from the previous fiscal year end is acceptable;

(e)(d) A surety bond, issued by a bonding company or insurance company authorized to do business in this State, in the amount of $10,000; and submitted on Form OFR-494-05, Mortgage Brokerage and Mortgage Lending Act Surety Bond.

(f)(e) Designate a principal representative who shall operate and exercise control over the licensee’s business. Each mortgage lender applicant shall include as part of the application a statement that the principal representative will operate and exercise control over the business as defined in subsection 69V-40.001(11), F.A.C.

(2) through (8) No change.

Specific Authority 215.405, 494.0011(2), 494.0061(3) FS. Law Implemented 494.0061, 494.0067(4) FS. History–New 10-1-91, Amended 6-6-93, 5-14-95, 9-3-95, 11-5-95, 7-14-96, 11-24-97, 8-22-99, 12-12-99, 12-9-01, 12-8-02, 12-11-03, Formerly 3D-40.200, Amended 3-23-08,__________.

 

69V-40.220 Application Procedure for Correspondent Mortgage Lender License.

(1) Each corporation, general partnership, limited partnership, limited liability company, or other lawful entity desiring to obtain licensure as a correspondent mortgage lender shall apply to the Office of Financial Regulation by submitting the following:

(a) through (b) No change.

(c) A nonrefundable mortgage broker examination fee of $43 for the designated principal representative if required to take the mortgage broker examination pursuant to Section 494.0062(11), F.S.;

(d)(c) Audited financial statements documenting a minimum net worth of $25,000 as of the applicant’s most recent fiscal year end. If the application is submitted within three (3) months of the most recent fiscal year end and an audited statement from the most recent fiscal year is not available, an audited statement from the previous fiscal year end is acceptable;

(e)(d) A surety bond, issued by a bonding company or insurance company authorized to do business in this State, in the amount of $10,000; and submitted on Form OFR-494-05, Mortgage Brokerage and Mortgage Lending Act Surety Bond.

(f)(e) Designate a principal representative who shall operate and exercise control over the licensee’s business. Each correspondent mortgage lender applicant shall include as part of the application a statement that the principal representative will operate and exercise control over the business as defined in subsection 69V-40.001(12), F.A.C.

(2) through (8) No change.

Specific Authority 215.405, 494.0011(2), 494.0062(3), (8). (11), (13) FS. Law Implemented 494.0062, 494.0067(4) FS. History–New 10-1-91, Amended 6-6-93, 5-14-95, 9-3-95, 11-5-95, 7-14-96, 11-24-97, 8-22-99, 12-12-99, 12-9-01, 12-8-02, 12-11-03, Formerly 3D-40.220, Amended 3-23-08, _________.

 

69V-40.242 Principal Representative.

(1) through (6) No change.

(7) At the time of filing an amendment to designate a new principal representative, the licensee shall file a nonrefundable mortgage broker examination fee of $43 for the designated principal representative if required to take the mortgage broker examination pursuant to Sections 494.0061(8), 494.0062(11) and 494.0065(4)(c)2., F.S.

Specific Authority 494.0011(2), 494.0016(4), 494.0061(1), (3), (8), 494.0062(3), (11) FS. Law Implemented 120.60, 120.695, 494.001(31), 494.0016(1), 494.0061, 494.0062, 494.0067, 494.0072 FS. History–New 1-27-02, Amended 12-8-02, Formerly 3D-40.242, Amended 3-23-08,__________.

NAME OF PERSON ORIGINATING PROPOSED RULE: Greg Oaks, Bureau Chief, Office of Financial Regulation, The Fletcher Building, 200 East Gaines Street, Tallahassee, Florida 32399, [phone], [e-mail]
NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Financial Services Commission
DATE PROPOSED RULE APPROVED BY AGENCY HEAD: October 28, 2008
DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAW: October 3, 2008