The days of simply opening up shop and starting a loan modification business have come to an end in Florida. Individuals or businesses providing loan modification services must now be licensed as a mortgage broker by the Florida Office of Financial Regulation (OFR) in order to conduct business.
The Florida Legislature recently passed Senate Bill SB 2226. This law makes significant changes to Florida’s mortgage brokerage law — Chapter 494, Florida Statutes — effective Jan. 1, 2010. In particular, the new law specifically covers negotiation of existing loans as being part of the duties of a mortgage broker. Any individual or business attempting to negotiate a loan mortgage modification will now be required to obtain a license through OFR. Additionally, there are new disclosures required in order to perform a loan modification — large type print on contracts and a three day rescission period are among a few of the changes.
The new law also requires “loan originators” to obtain a license.
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