III CRE Bridge Loan Fund L.P.; On 5/16/2018, the Florida Office of Financial Regulation (Consumer Finance) received a Petition for declaratory statement from III CRE Bridge Loan Fund L.P. The petition sought a declaratory statement from the Office ...

 

DEPARTMENT OF FINANCIAL SERVICES

Finance

NOTICE IS HEREBY GIVEN that the Florida Office of Financial Regulation has issued an order disposing of the petition for declaratory statement filed by III CRE Bridge Loan Fund L.P. on July 27, 2018. The following is a summary of the agency’s disposition of the petition:

On 5/16/2018, the Florida Office of Financial Regulation (Consumer Finance) received a Petition for declaratory statement from III CRE Bridge Loan Fund L.P. The petition sought a declaratory statement from the Office on whether its proposed business model (of originating loans that are made for commercial or business purposes, as evidenced by the fact that they would only be made to entities formed for the purpose of purchasing, developing or redeveloping property) requires licensure as a mortgage lender or mortgage broker under Chapter 494, Florida Statutes. On 7/27/2018, the Office issued a Final Order on the Petition for Declaratory Statement. The Office determined that under the circumstances described, the transactions described by Petitioner are outside of the defined parameters of a mortgage loan as that term is defined in subsection 494.001(24), Florida Statutes. The proposed commercial or business purpose loans will be made to entities, formed for the purpose of purchasing, developing, or redeveloping property consisting of one to four dwelling units with an eye to resale or rental. Further, the proposed loan transactions will not be made for personal, family or household use, since any borrower or any guarantor in the transaction will not occupy the loan property at any time before loan satisfaction. Therefore, the proposed transactions described by Petitioner would not be considered mortgage loans, as that term is currently defined in chapter 494, Florida Statutes. Under current law, Petitioner's proposed activities would not require licensure as a mortgage loan originator, mortgage broker, or mortgage lender, pursuant to chapter 494, Florida Statutes.

A copy of the Order Disposing of the Petition for Declaratory Statement may be obtained by contacting: Agency Clerk, Office of Financial Regulation, P.O. Box 8050, Tallahassee, Florida 32314-8050, [phone], [e-mail].

Please refer all comments to: Agency Clerk, Office of Financial Regulation, P.O. Box 8050, Tallahassee, Florida 32314-8050, [phone], [e-mail].