Section I. Questions Regarding Florida Licenses for Individuals

Do I have to get re-licensed?

I am currently a licensed Florida Mortgage Broker, will I have to get a new license?

Yes. Per the SAFE Act of 2008, all mortgage loan originators must obtain a “Mortgage Loan Originator” (MLO) license and must be licensed through the National Mortgage Licensing System and Registry (NMLS).

What will happen to my current mortgage broker’s license?

When will my current Mortgage Broker license expire?

Due to a recent change in the Florida Mortgage Brokerage & Lending Act, current Mortgage Broker licenses will expire December 31, 2010 – unless application for a Florida MLO license is made between October 1, 2010 and December 31, 2010. If application for a Florida MLO license is made during this timeframe, the expiration date of the applicant’s existing Mortgage Broker license will be extended until the MLO application is either approved or denied. Note: Florida Mortgage Brokers who are certified should apply for the MLO license between October 1, 2010 and December 15, 2010 – to remain exempt from certain pre-licensing requirements (click here to find out what it means to be “certified”).

Prepare your NMLS license application now.

How do I obtain a Mortgage Loan Originator (MLO) license?

The new licensing process is a collaborative effort between state licensing divisions and the NMLS. Applicants apply for a state license through the NMLS website. The NMLS website will begin accepting applications for Florida MLOs beginning October 1, 2010. Although prospective applicants cannot apply for the Florida MLO license prior to October 1, 2010, they can complete the required pre-licensing education and sit for the federally required test (a.k.a. the “National Component”) – this can and is encouraged to be done prior to applying for a Florida MLO license.

Get help preparing for the test.

Is there a pre-licensing education requirement?

Yes – though there is also an exception for applicants who are certified (click here to find out what it means to be “certified”). All other Mortgage Loan Originator applicants are required to satisfy a 20-hour NMLS approved pre-licensing education requirement.

Get help preparing for the test.

Is there an exemption to the pre-licensing education requirement for actively licensed Florida Mortgage Brokers?

Yes, but only if they are certified (click here to find out what it means to be “certified”).

What does it mean to be “certified”? (clarified 3/22/10)

Florida Mortgage Loan Originator applicants that satisfy ALL of the following criteria are considered education “certified” and do NOT have to take the 20-hour pre-licensing education. Requirements:

1. Applicant is actively licensed as Florida Mortgage Broker as of September 30, 2010

2. Applicant applies for the new Loan Originator license between October 1, 2010 and December 15, 2010.

Florida Mortgage Loan Originator applicants that satisfy ALL of the following criteria are considered state test “certified” and do NOT have to take the pre-licensing state test component. Requirements:

1. Applicant has passed the Florida Mortgage Broker test since January 1, 2004

2. Applicant is actively licensed as Florida Mortgage Broker as of September 30, 2010

3. Applicant applies for the new Loan Originator license between October 1, 2010 and December 15, 2010.

Note, all applicants, certified or not, must pass a national test component – no exceptions.

Get help preparing for the test.

When should I apply for my Loan Originator license?

You cannot apply for a Florida Mortgage Loan Originator (MLO) license prior to October 1, 2010. However, you can satisfy certain pre-licensing requirements before you apply for the license. Specifically, you can satisfy the pre-licensing education requirement and take the national component of the Mortgage Loan Originator test. Additionally, you can create an NMLS account, obtain your NMLS unique individual ID and prepare necessary license application documents. If you are not a licensed Mortgage Broker today or your license is inactive, you may want to obtain an active Mortgage Broker license first (read about inactive licenses here). Note: a new Florida law requires Processors to be licensed as of October 1, 2010 and there is an important deadline effecting applications for licensure.

Prepare your NMLS license application now.

A license search on the Office of Financial Regulation’s website shows that my current Florida Mortgage Broker license won’t expire until August 31, 2011. Can I continue transacting mortgage business until then?

Though the OFR website implies Mortgage Broker licenses won’t expire until August 31, 2010, a recent amendment to the Florida Mortgage Brokerage & Lending Act changes the expiration date to December 31, 2010. However, an extension of the expiration date will be given to actively licensed Mortgage Brokers who apply for a Loan Originator license between October 1, 2010 and December 31, 2010. The Mortgage Broker license of these applicants will not expire until the OFR either approves or denies the MLO application. Those whose Mortgage Broker licenses are inactive (or expired) will not be given an extension (read about inactive licenses here). Note: Florida Mortgage Brokers who are certified should apply for the MLO license between October 1, 2010 and December 15, 2010 – to remain exempt from certain pre-licensing requirements (click here to find out what it means to be “certified”).

What activities require licensure as a Mortgage Loan Originator?

Activities that require licensure are typically performed by people whose title is: “Loan Originator”, “Loan Modification Specialist”, “Lender Account Executive”, “Loan Processor”. Specific activities that require licensure are found in the legal definition of a Loan Originator in the Florida Mortgage Brokerage & Lending Act, which you can view here: Chapter 494 FS. Recent amendments to the Act (not yet incorporated into the published edition of the Act as of 6/23/2010 as referenced in the previous link) can be found here.

Note 1: There are currently two definitions in the Act – current and future. We are referring to the second definition in 494.001(14) “Loan Originator” that goes into effect October 1, 2010.

Note 2: There is currently ambiguity in the Florida Mortgage Brokerage & Lending Act regarding the distinction in job functions between Loan Originators and Loan Processors though it looks as if Loan Processors will have to be licensed (refer to the question in this FAQ entitled: “Do Loan Processors have to be licensed?”).

Note 3: Florida law uses the term “Loan Originator” to refer to the same license type the SAFE Act refers to as “Mortgage Loan Originator”. Not a big deal, just clarifying for clarity’s sake.

Do loan processors have to be licensed?

Yes. Based on the new definition of “Loan Originator” (LO) in the Florida Mortgage Brokerage & Lending Act and the Florida Office of Financial Regulation’s stated interpretation of the new definition, processors of Florida properties working for licensed mortgage companies (whether in-house or by contract), have to be licensed as of October 1, 2010 (the new definition of an LO includes one who “processes a mortgage loan application”). On May 11, 2010, Florida Governor Charlie Crist signed into law a bill that lends support to this interpretation.

Do loan underwriters have to be licensed?

In-house underwriters working as W-2 employees of a licensed Florida lender are NOT required to be licensed as loan originators by the Florida Office of Financial Regulation (OFR). They must, however, be supervised by a licensed loan originator in order to comply with the SAFE Act and Chapter 494 of the Florida Statutes. This is a reversal of the OFR’s previous statements that suggested licensure was required of underwriters. On August 17, 2010, the OFR released an informal statement regarding this change in position, which can be found here.

I let my Florida Mortgage Broker license go inactive last year. Should I just wait and apply for a Loan Originator license in October or are there compelling reasons why I should renew my MB license now?

If, on or after October 1, 2010, you want to conduct activities that require licensure, you should reactivate your Mortgage Broker license today and then apply for a Mortgage Loan Originator (MLO) license in October. Why? If you do not have an active Mortgage Broker license as of October 1, 2010, you will not be able to conduct activities that require licensure until you are licensed as an MLO – a process that could take 6 months or longer (according to the Florida Office of Financial Regulation). However, if as of October 1, 2010 you hold an active Florida Mortgage Broker license and you apply for an MLO license between October 1, 2010 and December 31, 2010, you will be able conduct activities that require licensure until your MLO application is either approved or denied. So, if on or after October 1, 2010, you want to conduct activities that require licensure, you should reactivate your Mortgage Broker license today and then apply for a Mortgage Loan Originator (MLO) license between October 1 and December 31, 2010. Better yet, reactivate your FL Mortgage Broker license today and apply for a MLO license between October 1 and December 15, 2010 and enjoy the benefits of being certified (click here to find out what it means to be “certified”). If you choose to reactivate your license and you have NOT yet satisfied your 14-hour CE requirement for the previous licensing period (i.e. in 2008 or 2009), you can complete your 14-hour CE requirement here. This will be required to reactivate your license.

I am currently unlicensed, but want or need to get licensed. What do I need to do?

Because the Florida Office of Financial Regulation has shutdown the old licensing system (see Is there a deadline for applying for a current (pre-NMLS) Florida license?), you cannot apply for the new Mortgage Loan Originator license until October 1, 2010. However, there are several things you can do NOW to satisfy conditions for licensure. These will in essence, “speed-up” the licensing process for you. See When should I apply for my Loan Originator license?

Is there a deadline for applying for a current (pre-NMLS) Florida license?

Yes. On July 8, 2010 at 9:00 pm, the Florida Office of Financial Regulation will stop accepting applications for licensure under the current (i.e. “old”) licensing system. Applications for licensure under the new NMLS licensing system will not be accepted prior to October 1, 2010 (this has created a licensing crisis in Florida).

I am currently an unlicensed Loan Originator working as a W-2 employee for a Florida licensed lender. Will I have to get a license and when?

Yes. Per the Florida Mortgage Brokerage & Lending Act, beginning October 1, 2010 all mortgage loan originators must be licensed through the National Mortgage Licensing System and Registry (NMLS) in order to continue (or begin) originating loans. Because the licensing process is expected to take up to 6 months (or longer), unlicensed people are urged to apply for a mortgage broker license prior to July 8, 2010 (this is the deadline for submitting applications for pre-NMLS licenses). Licensed mortgage brokers who apply for the new Mortgage Loan Originator (MLO) license between October 1, 2010 and December 31, 2010, will be able to continue originating loans until the MLO license is either approved or denied (which may be well into the year 2011).

My credit has been adversely affected in recent months. Will I be able to get a license?

During the license application process, you must grant the licensing authority permission to pull your credit. Whether they will, or what criteria they will use to determine license-ability has not been published. However, the Florida Mortgage Brokerage & Lending Act does say:

494.00312(b)2. For purposes of evaluating adverse information found in an applicant's credit report, the information must be considered within the totality of the circumstances. Information provided by the applicant under subparagraph 1., or information obtained by the office by other means, may be used to provide a context for the adverse items. For example, the adverse items may have resulted from factors that do not necessarily reflect negatively upon the applicant's character, general fitness, or financial responsibility.

494.00312(b) 3. The office may not use a credit score or the absence or insufficiency of credit history information to determine character, general fitness, or financial responsibility.

494.00312(b) 4. If information contained in a credit report is used as the basis for denying a license, the office shall, in accordance with s. 120.60(3), provide with particularity the grounds or basis for denial. The use of the terms "poor credit history," "poor credit rating," or similar language does not meet the requirements of this paragraph.

Section II. Questions About the Tests

Will I have to take a test?

Will I have to take a state test?

Will I have to take a national test?

All Mortgage Loan Originator (MLO) applicants must take and pass a national test with a score of 75% or better – no exceptions. Additionally, Florida will require MLO applicants who are not certified to pass a state test. Applicants who are state certified will NOT have to take the state test (click here to find out what it means to be “certified”). Click this link for a content outline of the national test. A content outline for the Florida state test component has ~~not yet~~ now been published. Click this link for a content outline of the NMLS Florida state test component.

Get help preparing for the test.

Can I take the state test now?

The NMLS Florida state test component is scheduled to be available on October 1, 2010. You will not be able to take the NMLS Florida state test component until that time. However, you can find a content outline of the Florida state NMLS test component has now been published. Click this link to see the content outline of the NMLS Florida state test component.

Get help preparing for the test.

Are the tests easy?

What is the pass/fail ratio of the national test?

The national component of the Mortgage Loan Originator test is not an easy test to pass as reflected by the current pass/fail ratio of ~67/33%. It is unknown what the Florida state test pass/fail ratio will be.

Get help preparing for the test.

How can I prepare for the national test?

Here are a few ways you can prepare for the national test:

1. Attend a live test prep class

2. Purchase a national test prep book

3. Attend a 20-hour NMLS approved pre-licensing education class.

If you anticipate obtaining a Mortgage Loan Originator (MLO) license in another state (either now or in the future), it makes sense to take the 20-hour pre-licensing course now. Not only will this help prepare you for the national test today, it will satisfy the education requirements of most of the other states in which you may apply for an MLO license in the future.

Get help preparing for the test.

Can I take the national test now?

How do I register for the national test?

You can take the national component of the NMLS Mortgage Loan Originator test today. Call Compliance Consulting Corporation for more details. We’ll help you create an NMLS account, prepare your Mortgage Loan Originator application, help you choose the right test prep material for your learning style and help get you scheduled for the national test. You can reach us at (561) 586-3645.

Get help creating an account on the NMLS.

Section III. Questions About Business Licenses

Is the Mortgage Brokerage Business license type going away?

Yes. The license type “Mortgage Brokerage Business” will not be issued after September 30, 2010. Instead, a new business license type will be issued called “Mortgage Broker” (this will no longer be a license for an individual, rather it will be a business license type). All Mortgage Brokerage Business licenses will expire on December 31, 2010 unless the licensee applies for a Florida Mortgage Broker license through the NMLS between October 1, 2010 and December 31, 2010. If application for a Mortgage Broker license is made during this timeframe, the expiration date of the applicant’s existing Mortgage Broker Business license will be extended until the Mortgage Broker application is either approved or denied. Ref. Ch. 494.32 FS Note (B).

Is the Florida Correspondent Lender license type going away?

Yes. The license type “Correspondent Lender” will not be issued after September 30, 2010. Businesses currently licensed as a Correspondent Lender should apply for either of the two business license types: “Mortgage Broker” or “Mortgage Lender”. All Correspondent Lender licenses will expire on December 31, 2010 unless the licensee applies for either a Florida Mortgage Broker license or a Florida Mortgage Lender license through the NMLS between October 1, 2010 and December 31, 2010. If application for either of these license types is made during this timeframe, the expiration date of the applicant’s existing Correspondent Lender license will be extended until the license application is either approved or denied. Ref. Ch. 494.0062 FS Note (B).

Is the Florida Mortgage Lender license type going away?

No. However, current Lender licensees will have to apply for a new Lender license beginning October 1, 2010. Note: due to a change in the Florida Mortgage Brokerage & Lending Act, all Florida Mortgage Lender licensees will expire on December 31, 2010 unless the licensee applies for either a Florida Mortgage Broker license or a Florida Mortgage Lender license through the NMLS between October 1, 2010 and December 31, 2010. If application for either of these license types is made during this timeframe, the expiration date of the applicant’s existing Mortgage Lender license will be extended until the license application is either approved or denied. Ref. Ch. 494.0061 FS Note (B).

What license types will the Office of Financial Regulation issue beginning October 1, 2010?

The following business license types will be issued:

Mortgage Broker (MB)

Mortgage Lender (ML) with optional Servicing Endorsement

There will be one individual license type, the:

Mortgage Loan Originator (MLO)

Section IV. Miscellaneous Questions

What is the SAFE Act?

Simply put, the SAFE Act is a federal law that requires the licensure of mortgage loan originators according to uniform national standards and the participation of state agencies on the Nationwide Mortgage Licensing System and Registry (NMLS). States were required to have laws in place to comply with the SAFE Act by August 1, 2009. Florida met this requirement, with enforcement of the new laws to begin October 1, 2010.

What do I have to do to comply with the SAFE Act?

The SAFE Act requires state-licensed MLOs to pass a written qualified test, to complete pre-licensure education courses, and to take annual continuing education courses. The SAFE Act also requires all MLOs to submit fingerprints to the Nationwide Mortgage Licensing System (NMLS) for submission to the FBI for a criminal background check; and state-licensed MLOs to provide authorization for NMLS to obtain an independent credit report. The first step in the process is to create an account on the NMLS website.

What is the NMLS?

The National Mortgage Licensing System and Registry (NMLS) is essentially a nationwide database of mortgage professionals that serves many purposes. Among other things, the NMLS:

1.Assigns a unique ID to every mortgage professional (you will see educators requiring this so they can report education credits through the NMLS)

2.Provides public access to licensing information of every mortgage professional (www.NMLSConsumerAccess.org)

3.Provides a single source for regulatory/licensing agencies to check for previously reported misconduct by a licensee. This gives regulators the ammunition to deny future applications for licensure, even across state lines.

Who needs a Unique Individual ID and what is it?

Every mortgage professional is assigned a unique individual identification number when creating an account within the NMLS database. This unique ID will be used throughout the mortgage professional’s career. For example, NMLS approved education providers will use a mortgage professional’s unique ID to report the completion of pre-licensing or continuing education hours to the NMLS.

Do I have to get a federal license and a state license?

No. Federal licenses will not be issued - only states will issue licenses. States will issue both business licenses and individual licenses. While there is not a “federal” license, MLO applicants are required to pass a federally prescribed test (one time, not once for each state in which the applicant applies). Each state has the option of requiring applicants to take an additional state test prior to issuing an MLO license in that state (Florida has not prescribed any additional state specific education ~~or testing~~ as of this writing). [revised 4/6/10 a Florida state test component is being developed for applicants who are not certified (click here to find out what it means to be “certified”).]

Revision History

3/22/10

§ Further clarified the definition of “certified”

4/6/10

§ Noted that a Florida state test component is being developed for MLO applicants who are not certified

§ Added “How can I prepare for the national test?”.

§ Added “How do I register for the national test?”

5/10/10

§ Added clarification to the question about inactive Florida Mortgage Broker licenses.

§ Added questions regarding the availability of both the national and state components of the Mortgage Loan Originator test

6/23/10

§ Added to activities that require licensure under question: “What activities require licensure as a Mortgage Loan Originator”

§ Updated to reflect the Office of Financial Regulation’s interpretation of the Florida Mortgage Brokerage & Lending Act that requires processors and underwriters to be licensed

§ Added information about current Florida licensing system shutdown as of 9:00 pm on July 8, 2010

8/17/10

§ No longer urging unlicensed people to apply for licensure prior to July 8, 2010.

8/24/10

§ Updated to reflect the reversal of opinion by the OFR regarding licensing requirements of underwriters.

8/30/10

§ Rephrased question regarding licensing requirements of underwriters to better reflect OFR’s informal opinion on the subject.

8/31/10

§ Added links to the NMLS Florida test component.

12/06/10

§ Revised expiration date of OFR/NMLS certification expiration for individually licensed Florida Mortgage Brokers (pre-NMLS)