I wrote all 14 hours of this CE course.

1. Welcome to Bert Rodgers Schools!
Florida statutes and department rules require all Mortgage Brokers, Loan Originators, and Principal Representatives
to complete 14 hours of professional continuing education every 2 years. Mortgage Brokers and
Associates deadline is August 31, 2009. Loan Originators and Principal Representatives deadline is
August 31, 2010.
Take full advantage of the benefits of distance education! Bert Rodgers Schools is permitted and accredited by the
Florida Office of Financial Regulation. You can study on your own schedule, at home or work. There is no need to
travel to attend class or seminars. This book contains everything you need!
You will appreciate the affordability of the Bert Rodgers course. At $34.99 for 14 hours, it is a true value. Optional
Module Review Exercises are provided to ensure your comprehension of the course material and the newly-required
final examination is included!
We have been providing high quality education to Florida professionals since 1958. Rely on our fast, friendly, profes-
sional service representatives to help with any questions you may have! We look forward to helping you meet your
education needs.
It’s Easy to Meet Your Requirement with Bert Rodgers Schools!
Let the ease of distance learning work for you. With this book, everything you need is at your fingertips.
Step 1 Read the material in this book. There are Module Review Exercises at the end of each Module to help reinforce your
knowledge of the material.
Step 2 Take the required Final Examination at the end of this book.*
Step 3 Submit your Registration Form/Answer Sheet by mail or fax.
*A 100-question final examination is now required per Chapter 494.00295(3)(b), F.S. and Florida Office of Financial Regulation
Rule 69V-40.0271 for correspondence courses.
How Do I Receive My Certificate of Completion?
Mail: Use the enclosed envelope to send us your Registration Form/Answer Sheet and payment. We will grade your
exam and mail your certificate of completion the following business day.
Fax or For even faster results, choose one of our convenient Priority Grading Services and receive
Email: your certificate of completion the same day or the next day.
Important Note: Do not send your certificate of completion to the Office of Financial Regulation unless otherwise requested.
Retain your certificate of completion for at least 4 years following the end of the renewal period.
Need Help?
Call us toll-free at 800-432-0320 and talk to a representative who will answer all your administrative questions quickly and
professionally. For instructional questions, please leave a message for Instructor/Author Janine Spiegelman at ext. 368 and
she will respond within one business day.
Florida Mortgage Brokering/Lending 14-Hour Continuing Education Course i

2. Frequently Asked Questions
Is Continuing Education required before I can renew my Mortgage
Broker license?
YES. However, Section 494.00295, Florida Statutes, provides for one exception. Requirement: At the time of
renewal, you will be required to certify that you have taken at least 14 hours of professional continuing education
by August 31, 2009.
Exception: Section 494.00295(1), Florida Statutes, states: . . . The requirements for professional continuing edu-
cation are waived for the license renewal of a mortgage broker who has completed the 24-hour pre-licensing
classroom education requirement of s. 494.0033(3), F.S., within 90 days of the biennial license period immediately
following the period in which the person became licensed as a mortgage broker.
My mortgage broker license is currently INACTIVE. Is Continuing Education required before I
can reactivate my inactive individual Mortgage Broker license?
YES. You will need to reactivate your license online via the Office’s REAL system at www.flofr.com/REAL/index.
htm upon which you will be required to certify that you have satisfied the continuing education requirement.
Completion of this process will only reactivate your license through the end of the current licensing period.
Do I submit my certificate to the Office of Financial Regulation?
NO. DO NOT send your certificate of continuing education to the Office. You will be required to certify at the time
of renewal that you have satisfied the continuing education requirement. In accordance with Rule 69V-40.043(5),
F.A.C., a mortgage broker is responsible for maintaining copies of the certificate of completion for all continuing
education courses completed and supply them to the Office upon request. Chapter 494.00295(1), F.S., requires
that licensees maintain records documenting compliance with this requirement for a period of four (4) years.
How do I pay my renewal fee?
You can renew your license online via the Office’s REAL system. You must have an authorization code provided
by the OFR to enter the system. For more information on the REAL System, see the services guide at www.flofr.
com/REAL/Guides.htm
ii Bert Rodgers Schools of Real Estate, Inc.

3. Florida Mortgage Brokering/Lending
14-Hour Continuing Education Course
2009 Edition

4. Acknowledgements
Bert Rodgers Schools of Real Estate, Inc. expresses our gratitude and appreciation to the thousands
of Mortgage Professionals who have completed our 14-hour course to fulfill their continuing education
requirements.
We would like to thank the author of the laws and rules module in this edition, Janine Spiegelman. We
recognize her expertise and appreciate her participation.
We also want the Student Services Department—both the customer contact employees and those “behind
the scenes” processing all the paperwork—to know how much we appreciate their hard work, day after day,
making sure our valued students are satisfied customers.
And we certainly are grateful to our Publications Department staff. No matter what obstacles you encounter
in putting together these editions, you always create a product that, year after year, our customers say is by
far the best in the industry.
Finally, Bert Rodgers Schools would like to thank Mark Mazzuki of Digital Ink Design Group for his cover
design of this edition and his design of all our marketing materials.
Lori J. Rodgers, President
iv Bert Rodgers Schools of Real Estate, Inc.

5. Table of Contents
2009 FLORIDA MORTGAGE BROKERING/LENDING 14-Hour
PROFESSIONAL Continuing Education Course
w CURRENT EVENTS
2008-2009 Mortgage Industry
Current Events | vii
w MODULE 1
Florida Mortgage Brokerage and
Lending Act Laws and Rules | 1
w MODULE 2
Back to Basics: Finance | 33
w MODULE 3
Back to Basics: Types of Mortgages and
Sources of Financing | 43
w MODULE 4
Back to Basics: Real Estate Closings | 69
Index | 89
Final Examination | 92
Instructions | 102
Registration Form
Answer Sheet
Florida Mortgage Brokering/Lending 14-Hour Continuing Education Course v

6. Directory
Bert Rodgers Schools of Real Estate
1855 Porter Lake Drive, Sarasota, Florida 34240-7893
Tel. (941) 378-2900 • Fax (941) 378-3883
Toll Free (800) 432-0320
Instructor and Administrative Support
Telephone Hours: M-F 8:30 a.m. - 5:15 p.m.
Email: MBinfo@bertrodgers.com
www.bertrodgers.com
Florida Office of Financial Regulation
Division of Finance
200 East Gaines Street
Tallahassee, FL 32399-0376
(850) 410-9895 • Fax: (850) 410-9882
(Initial license or license renewal questions)
Telephone Hours: M-F 8:00 a.m. – 5:00 p.m.
For additional information, visit the Florida Office of Financial Regulation, Division of Finance website:
www.flofr.com/Finance/index.htm
Bert Rodgers Schools of Real Estate, Inc. ©2009
All rights reserved, including the right to reproduce this manual or any portion of this manual in any form, or to use it for teaching purposes without
the express written consent of the copyright holder.
This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is provided with the understand-
ing that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required,
the services of a competent professional person should be sought.
Bert Rodgers Schools of Real Estate, Inc. shall not be liable in any way for failure to receive and/or process your Registration/Affidavit Form within
any specific time period. It is your responsibility to ensure that you have complied with your license renewal requirements in a timely manner.
Bert Rodgers Schools of Real Estate, Inc. recognizes and respects its students’ privacy. Course records are confidential, and the School does not
sell or rent students’ names or other information to any company or organization.
Cover design: Digital Ink Design Group
ISBN: 1-891753-53-3
Printed in the United States of America
vi Bert Rodgers Schools of Real Estate, Inc.

7. FROM LORI RODGERS
In March we printed and mailed the 2009 edition of Bert Rodgers Schools Florida Mortgage Brokering/Lending
14 Hour Professional Continuing Education Course. In May the Florida Legislature passed CS/CS/SB 2226. The
bill’s effective date is July 1, 2009. This new legislation will significantly impact the Florida mortgage profession.
Among the many changes, education and licensing requirements will change.
Nothing has changed for the August 31, 2009 renewal deadline for mortgage broker licensees. Beginning with
your NEXT renewal, you will need to comply with the new statutory requirements.
A copy of the engrossed bill can be reached through this web link:
http://www.myfloridahouse.gov/Sections/Documents/loaddoc.aspx?FileName=_s2226er.DOCX&Document
Type=Bill&BillNumber=2226&Session=2009
We recognize the 2008 and 2009 changes to federal laws have significantly affected your profession. It is likely
that more changes will come as our nation navigates through the challenge of a seriously weakened economy
and housing market. Below is a summary of the most recent federal law changes.
2008‐2009 MORTGAGE INDUSTRY CURRENT EVENTS
FEDERAL LAWS/LOAN LIMITS
The Federal Housing Finance Agency (FHFA) became the new agency with oversight over Fannie Mae, Freddie
Mac, and the 12 Federal Reserve banks with the passage of the Housing and Economic Recovery Act of 2008
(HERA), signed by former President Bush on July 30, 2008. The FHFA was formed when HERA merged the Office
of Federal Housing Enterprise Oversight, the Federal Housing Finance Board, and the U.S. Department of
Housing and Urban Development government‐sponsored enterprise mission team.
The Economic Stimulus Act of 2008 (ESA), signed by former President Bush on February 13, 2008, increased the
conventional conforming loan limit for one‐unit properties from $417,000 to $729,750 in certain high‐cost
areas in the continental United States. This applied retroactively to loans that were originated between July 1,
2007, and then expired December 31, 2008.
On February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act of 2009
(ARRA). Loan limits for mortgages originated in 2009 are set under the provisions of ARRA. For one‐ unit
properties in Florida, the conventional maximum mortgage is $417,000 except for the following counties:
Monroe ‐ $729,750; Broward, Miami‐Dade, and Palm Beach ‐ $423,750; Collier ‐ $531,250; and Manatee and
Sarasota ‐ $442,500.
The Federal Housing Administration’s (FHA’s) floor and ceiling loan limits for 2009 under ARRA rely on the
higher of HERA or ESA. Under HERA, ESA, and ARRA, the FHA national floor limits remain set at 65% of the
Freddie Mac national conforming limit. The floor is $271,050 ($417,000 x 65%) for a one‐unit property. Any
area where the limits exceed the floor is known as a high cost area. The ESA national ceiling is binding under
ARRA for 2009. The formula to compute the maximum mortgage for a one‐unit property is 175% of the Freddie
Mac national conforming limit, or $729,750 ($417,000 x 175%). For areas where the higher of the ESA‐
determined loan limits for 2008 and the HERA‐determined loan limits for 2009 is in between the national floor
and ceiling, the limit is the higher of those two limits for any loan for which credit is approved in the calendar
year 2009 and will remain in effect until December 31, 2009. For example, in Sarasota county, the new FHA
maximum mortgage limit for one‐unit is $442,500; the limit is $423,750 for Palm Beach county. Under ARRA,
Florida Mortgage Brokering/Lending 14-Hour Continuing Education Course vii

8. the FHA Home Equity Conversion Mortgage (reverse mortgage) will increase the maximum mortgage limit for a
one‐unit property from $417,000 to $625,500. FHA Mortgagee Letter 2009‐07 explains this increase in loan
limits.
The Department of Veterans Affairs (VA) loan limit is unaffected by ARRA legislation. Therefore, the maximum
loan amount for a veteran without a down payment on a one‐unit property remains at $417,000.
ARRA includes a tax credit of up to $8,000 for qualified first‐time home buyers purchasing a principal residence
on or after January 1, 2009, and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit
does not have to be repaid as long as the home remains the buyer’s main residence for 36 months after the
purchase date. For the purpose of this credit, a first‐time home buyer is someone who has not owned a home
in the past 3 years.
The Homeowner Affordability and Stability Plan (HASP), signed by President Obama on February 17, 2009, is
designed to help borrowers in 2 ways. Borrowers with high debt‐to‐income ratios or who are at risk of
foreclosure can restructure their current loan through a loan modification process. Borrowers with an Agency‐
secured loan (Fannie Mae or Freddie Mac loan) who are current on their monthly mortgage payments will be
eligible to refinance into a new Agency‐secured loan. This is true even for borrowers whose home value has
declined to the point they may be ineligible to refinance into a standard refinance program and take advantage
of today’s lower interest rates. On March 4, 2009, Fannie Mae issued Announcements 09‐04 and 09‐05 to
provide guidance to lenders on their Home Affordable Refinance and Modification Programs. These programs:
• significantly relax mortgage insurance coverage requirements to a assist borrowers who have
experienced home price declines
• offer loan‐to values (LTVs) up to 105%
• provide other underwriting flexibilities
On March 4, 2009, Freddie Mac came out with their Relief Refinance Mortgage program that is intended to
help borrowers who are making timely mortgage payments, but have been unable to refinance due to declining
property values and tightening credit terms by offering:
• expanded LTV/TLTV/HTLTV (total loan‐to‐value and home equity total loan‐to‐value) ratios
• no post settlement delivery fees, except for the Market Condition delivery fee
• relief from standard mortgage insurance requirements
• simplified appraisal and borrower eligibility requirements
To participate in the program, the borrower’s first‐lien conventional mortgage must be currently owned or
securitized by Freddie Mac. In addition, borrowers must be current on their monthly mortgage payments with
no 30‐day or more late payments in the most recent 12 months.
APPRAISALS
On Dec. 23, 2008, the FHFA announced the details of the Home Valuation Code of Conduct (HVCC) that will go
into effect on May 1, 2009. The Code establishes a uniform set of appraisal guidelines to govern all loans sold to
Fannie Mae and Freddie Mac. The lender or any third party specifically authorized by the lender including, but
not limited to, appraisal companies and appraisal management companies (AMCs), shall be responsible for
selecting, retaining, and providing for payment of all compensation to the appraiser. The lender will not accept
any appraisal report completed by an appraiser selected, retained, or compensated in any manner by any other
third party including mortgage brokers and real estate agents. The lender may accept an appraisal prepared by
an appraiser for a different lender, including where a mortgage broker has facilitated the mortgage application
(but not ordered the appraisal), provided the lender obtains written assurances that such other lender follows
this Code of Conduct in connection with the loan being originated; and determines that such appraisal
conforms to its requirements for appraisals and is otherwise acceptable.
viii Bert Rodgers Schools of Real Estate, Inc.

9.
FLORIDA MORTGAGE BROKERAGE AND LENDING ACT
LAWS AND RULES
LEARNING OBJECTIVES
After completing this module, you should be able to:
1. Summarize the changes made to Chapter 494 F.S. since October 1, 2006.
2. List the changes to Chapter 69V‐40 Florida Administrative Code effective in 2008.
3. Summarize the organizational structure of the Florida Department of Financial Services, including
the Financial Services Commission and the Office of Financial Regulation.
4. Explain the powers and duties of the Financial Services Commission and the Office of Financial
Regulation.
5. Explain the penalties, which could be imposed for violations of Chapter 494, F.S. and Chapter
817.545, F.S.
6. Identify the prohibited practices pursuant to Chapter 494.
7. Explain the purpose for the enactment of the Florida Fair Lending Act.
8. Identify the types of transactions covered by the Florida Fair Lending Act.
9. Define a high‐cost home loan.
10. Identify the acts prohibited by the Florida Fair Lending Act.
11. Identify the disclosure requirements of the Florida Fair Lending Act.
12. Explain the enforcement and penalties of any violation of the Florida Fair Lending Act.
INTRODUCTION
The Department of Financial Services regulates mortgage broker individuals (MB), mortgage brokerage
businesses (MBB), mortgage lenders (ML), and correspondent mortgage lenders (CL) by the use of Florida
Statutes (F.S.) and the Florida Administrative Code (F.A.C.). Chapter 494, F.S., is known as the Florida
Mortgage Brokerage and Mortgage Lending Act Rules and Regulations. Chapter 494 originally became
effective in October 1991, and several significant amendments have been made since 1991. Chapter 69V‐
40 of the Florida Administrative Code (formerly Chapter 3D‐40 F.A.C.) is called Rules Regulation Mortgage
Brokers. Certain minor changes to Chapter 69V‐40 were made effective on August 2, 2002, and a few
minor amendments were made between 2003 and 2004. The purpose of this module is to review Florida
mortgage brokerage rules and regulations including major changes effective since October 1, 2006.
In 2002, legislation placed the regulation of banking, securities, and insurance under two appointed
officials who are selected by the Financial Services Commission. The Financial Services Commission serves
as agency head for the Office of Financial Regulation (OFR or Office) and the Office of Insurance
Regulation (OIR). The commission is composed of the governor and Cabinet. The commission appoints the
commissioner of the OFR and the commissioner of the OIR.
Although both offices are administratively housed within the Department of Financial Services, they
report directly to the Financial Services Commission, headed by Chief Financial Officer, Alex Sink. The
Office of Financial Regulation has offices located in Miami, Fort Lauderdale, West Palm Beach, Tampa,
1

10. 2 Module 1
Orlando, Jacksonville, Pensacola, and Fort Myers. The regional offices are primarily responsible for
conducting examinations to ensure regulatory compliance by financial institutions and financial service
companies.
The Office is dedicated to safeguarding the private financial interests of the public by licensing, chartering,
examining, and regulating financial institutions and financial service companies in the State of Florida. The
Office strives to protect consumers from financial fraud while preserving the integrity of Florida’s markets
and financial service industries. This is the Office’s mission statement found at
www.flofr.com/Director/abouttheoffice.htm
Within the Office are 2 Divisions. The first is the Division of Financial Institutions. This division licenses,
examines, and regulates all state‐authorized or state‐chartered financial institutions to ensure they
operate in a safe and sound manner and in compliance with applicable statutes and rules. Those
institutions include commercial banks, credit card banks, credit unions, non‐deposit trust companies,
savings banks, savings and loans, and international bank offices.
The second division within the Office is the Division of Securities and Finance. Within this division are
three Bureaus—the Bureau of Financial Regulation; the Bureau of Securities Regulation; and the Bureau
of Regulatory Review. The Bureau of Finance Regulation regulates retail installment sales businesses,
consumer finance companies, mortgage brokers and lenders, collection agencies, and money
transmitters. The bureau provides consumer protection from illegal or improper activities performed by
these companies. The Bureau of Securities Regulation protects the public from investment and securities
fraud. The Bureau of Regulatory Review reviews all applications for a financial services firm or a securities
firm, reviews individual applications, and either approves, places licensing restrictions, or denies licensure
based upon its findings (See Figure 1.1).
Office of Financial Regulation Flow Chart
Figure 1.1 Source: www.flofr.com/Director/OFRorgchart.pdf

11. Florida Mortgage Brokerage and Lending Act Laws and Rules 3
RECENT CHANGES IN FLORIDA STATUTES REGULATING MORTGAGE
BROKERAGE AND MORTGAGE LENDING
NEW FOR 2008 0 0 8
NEW FOR 2
Mortgage Broker’s License Under Chapter 494.0033
Effective July 1, 2008, the mortgage broker license test must be available electronically no later than
December 31, 2008. Reduced the maximum exam fee from $100 to $75. Reduced the maximum fee to
review the graded exam from $50 to $35. Reduced the nonrefundable application fee from $200 to $195
(Chapter 494.0033(2)(b)(c), F.S.).
Mortgages Offered By Land Developers; Requirements; Prohibitions
Revised the heading and content of Chapter 494.008 by deleting the reference to the Florida Uniform
Land Sales Practices Law and Chapter 498.
Mortgage Fraud
Effective July 1, 2008, any person who violates s. 817.545(2) and the loan value stated on documents used
in the mortgage lending process exceeds $100,000, commits a felony of the second degree, punishable as
provided in s. 775.082, s. 775.083, or s. 775.084. That increases the maximum amount of imprisonment
from 5 years to 15 years and the maximum fine from $5,000 to $10,000.
House bill 743 created Section 193.133 F.S. to protect Florida citizens. Upon the finding of probable cause
of any person for the crime of mortgage fraud, as defined in s. 817.545, or any other fraud involving real
property that may have artificially inflated or could artificially inflate the value of property affected by
such fraud, the arresting agency shall promptly notify the property appraiser of the county in which such
property or properties are located of the nature of the alleged fraud and the property or properties
affected. The property appraiser must reassess properties that are found to have artificially inflated
values (http://laws.flrules.org/files/Ch_2008‐080.pdf).
New Foreclosure Rescue Law
Chapter 501.1377 F.S. became effective October 1, 2008. Entitled “Violations involving homeowners
during the course of residential foreclosure proceedings”, it is known as the new foreclosure rescue law.
It seeks to protect homeowners who face the threat of foreclosure from individuals who would prey on
them by requiring a homeowner to receive information necessary to make an informed decision regarding
the sale or transfer of his or her home to an equity purchaser. Chapter 501.1377(2)(b)6 defines a
foreclosure rescue consultant as a person who directly or indirectly makes a solicitation, representation,
or offer to a homeowner to provide or perform, in return for payment of money or other valuable
consideration, foreclosure‐related rescue services. The term does not apply to a licensed mortgage
broker, mortgage lender, or correspondent mortgage lender that provides mortgage counseling or advice
regarding residential real property in foreclosure, which counseling or advice is within the scope of
services set forth in Chapter 494 and is provided without payment of money or other consideration other
than a mortgage brokerage fee as defined in s. 494.001.
A foreclosure‐rescue consultant may not solicit, charge, receive, or attempt to collect or secure payment,
directly or indirectly, for foreclosure‐related rescue services before completing or performing all services
contained in the agreement for foreclosure‐related rescue services.
Now foreclosure‐related rescue services agreements must be expressed in writing at least 1 business day

12. 4 Module 1
prior to entering into a contract in order to safeguard homeowners against deceit and financial hardship;
to ensure, foster, and encourage fair dealing in the sale and purchase of homes in foreclosure or default;
to prohibit representations that tend to mislead; to prohibit or restrict unfair contract terms; to provide a
cooling‐off period of 3 business days for homeowners who enter into written contracts for services
related to saving their homes from foreclosure or preserving their rights to possession of their homes; to
afford homeowners a reasonable and meaningful opportunity to rescind sales to equity purchasers; and
to preserve and protect home equity for the homeowners of Florida.
A person who violates any provision of this section commits an unfair and deceptive trade practice as
defined in Part II of Chapter 501. Violators are subject to the penalties and remedies including a monetary
penalty not to exceed $15,000 per violation. Contact the Florida Attorney General for more information
or visit the Consumer Protection section at http://myfloridalegal.com.
C H 0 7 G HS N R O S 2 0 0 7
20 AN CE A FGE M
CHANGES FROM 2007
The revisions, amendments, and additions that became effective October 1, 2007.
Definitions
Expands the definition of loan originator to include account executives/wholesale representatives. There‐
fore, these individuals are required to be included in the licensee’s Quarterly Reports and these loan
originators must complete 14 hours of professional continuing education biennially (Chapter 494.001(2),
F.S.).
A mortgage loan application is a submission of the borrower’s financial information in anticipation of a
credit decision regarding a specific property. If the submission does not identify a specific property, then
the application is for a prequalification and not an application for a mortgage loan. Once a property has
been identified, this converts it to an application for a mortgage loan (Chapter 494.001(32), F.S.).
Clarifies that the mortgage brokerage fee includes the total compensation to be received by a mortgage
brokerage business for acting as a mortgage broker (Chapter 494.001(33), F.S.).
Business day means any calendar day except for Sunday or a legal holiday (Chapter 494.001(34), F.S.).
Cease and Desist Orders; Administrative Fines; Refund Orders
Authorizing the Office to take administrative action against mortgage business schools similar to other
license types. The maximum fine for a violation is $5,000 for each separate count or offense. The Office
may suspend, revoke, or place on probation the permit of the mortgage business school. (Chapters
494.0014(4) and 494.0029(1)(f), F.S.).
Mortgage Business Schools
Mortgage business schools must conduct classes on the basis of a 50‐minute classroom hour (Chapter
494.0029(2)(g), F.S.).
Each mortgage business school is responsible for developing procedures to confirm and for actually
confirming the identity of each student attending any course offering (Chapter 494.0029(2)(h), F.S.).
Professional Continuing Education
Of the 14 hours of required professional continuing education, a minimum of 4 hours shall cover the
provisions of Chapter 494, F.S. and the rules in Chapter 69V‐40, F.A.C. The professional continuing
education requirements are waived for the license renewal of a mortgage broker who completed the 24‐

13. Florida Mortgage Brokerage and Lending Act Laws and Rules 5
hour pre‐licensing classroom education requirements within 90 days of the biennial license period
immediately following the period in which the person became licensed as a mortgage broker. Previously,
the mortgage broker was exempt from professional continuing education for the biennial period in which
they became licensed. Now, the time is reduced to 90 days prior to the expiration of the license.
Licensees shall maintain records documenting compliance with this subsection for a period of 4 years
(Chapter 494.00295(1), F.S.).
Now the Office can offer professional continuing education programs (Chapter 494.00295(2), F.S.).
Electronically transmitted professional continuing education courses shall require that the course
participant has logged the required number of hours for the particular timed module; has completed a
test that comprehensively covers the course content for the particular timed module; and has correctly
answered all test questions for the particular timed module (Chapter 494.00295(3)(a)1.2.3, F.S.).
All distance education course participants shall successfully complete a 100‐question test with a score of
at least 75% in order to receive a certificate of course completion. The test shall comprehensively cover
the course content (Chapter 494.00295(3), F.S.).
The commission shall adopt rules pursuant to ss.120.536(1) and 120.54 necessary to administer (Chapters
494.00295 and 494.00295(4), F.S.).
Mortgage Broker’s License
Added the requirement that an applicant for licensure as a mortgage broker needs to have a high school
diploma or its equivalent (Chapter 494.0033(2)(a), F.S.).
Added that the commission may adopt rules prescribing an additional fee not to exceed $50.00 for an
applicant to review their completed and graded mortgage broker test. Also added that the commission
may adopt rules regarding the administration of the testing process, including, but not limited to,
procedures relating to the pretest registration, test security, scoring, content, result notification, retest
procedures and fees, post examination review, and challenge provisions (Chapter 494.0033(2)(b), F.S.).
Mortgage Broker Disclosures
The mortgage brokerage business and the borrower must sign and date a written mortgage brokerage
agreement in order for the mortgage brokerage business to receive a mortgage brokerage fee (Chapter
494.0038(1)(a)1., F.S.).
In face‐to‐face interviews, the written mortgage brokerage agreement must be completed, signed, and
dated within 3 business days of receipt of an application. For mail‐away applications, the licensee bears
the burden of proving that the borrower received and approved the written mortgage brokerage
agreement and the written mortgage brokerage agreement was sent within 3 business days of the
licensee’s acceptance of the application (Chapter 494.0038(1)(a)2., F.S.).
If the mortgage brokerage business is to receive any payment of any kind from the lender, then the
maximum total dollar amount of the payment must be disclosed to the borrower in the written mortgage
brokerage agreement as described in 494.0038(1)(a)1.2. Previously, it was disclosed as a percentage
range and not a dollar amount. The mortgage brokerage agreement must state the nature of the
relationship with the lender, describe how compensation is paid by the lender, and describe how the
mortgage interest rate affects the compensation paid to the mortgage brokerage business (Chapter
494.0038(1)(b)1, F.S.).
The exact amount of any payment of any kind by the lender to the mortgage brokerage business must be

14. 6 Module 1
disclosed in writing to the borrower within 3 business days after the mortgage brokerage business is
made aware of the exact amount of the payment from the lender but not less than 3 business days before
the execution of the closing or settlement statement. The licensee bears the burden of proving such
notification was provided to the borrower (Chapter 494.0038(1)(b)2., F.S.).
Mortgage Broker Disclosures and Requirements of Licensees Under Chapters 494.006‐494.0077
A good faith estimate signed and dated by the borrower, which discloses the total amount of each of the
fees which the borrower may reasonably expect to pay if the loan is closed, must be given within 3
business days of receipt of the application by the mortgage brokerage business or within a reasonable
time for a correspondent or mortgage lender. The good faith estimate must identify the recipient of all
payments charged the borrower and, except for all fees to be received by the mortgage brokerage
business and the mortgage lender or the correspondent lender, may be disclosed in generic terms, such
as but not limited to, paid to lender, appraiser, officials, title company, or any other third‐party service
provider. The licensee bears the burden of proving such disclosures were provided to the borrower
(Chapters 494.0038(2)(c) and 494.0067(8), F.S.).
Within 3 business days of receipt of the application by the broker or lender, complete, written, signed and
dated by the borrower, adjustable rate mortgage loan disclosures must be provided in a format
prescribed by ss. 226.18 and 226.19 of Regulation Z of the Board of Governors of the Federal Reserve
together with the Consumer Handbook on Adjustable Rate Mortgages (CHARM Booklet). The licensee
bears the burden of proving such disclosures were provided to the borrower (Chapters 494.0038(3) and
494.0067(11), F.S.).
In every mortgage loan transaction, each licensee under ss. 494.003‐494.0043 or ss. 494.006‐0077, shall
notify a borrower of any material changes in the terms of a mortgage loan previously offered to the
borrower within 3 business days after being made aware of such changes by the lender but not less than 3
business days before the signing of the settlement or closing statement. The licensee bears the burden of
proving such notification was provided and accepted by the borrower. A waiver of this requirement can
be granted by the borrower to meet a bona fide personal financial emergency. The imminent sale of the
borrower’s home at foreclosure during the 3‐day period before the signing of the settlement or closing
statement constitutes an example of a bona fide personal financial emergency. The borrower must
provide the licensee with a dated written statement that describes the personal financial emergency,
waives the right to receive the notice, bears the borrower’s signature, and is not on a printed form
prepared by the licensee for the purpose of such a waiver (Chapters 494.004(8)(a)(b) and
494.0067(12)(a)(b), F.S.).
Renewal of Mortgage Lender’s License; Branch Office License Renewal and Requirements of Licensees
under Chapters 494.006‐494.0077
Lenders must certify that they currently meet the minimum net worth requirements and that their
principal representative and all of their loan originators who are not currently licensed as mortgage
brokers have completed the 14 hours of professional continuing education requirements in order to
renew their license (Chapters 494.0064(1) and 494.0067(10)(a), F.S.).
Administrative Penalties, Fines and License Violations
Any violation of the federal Real Estate Settlement Procedures Act or the federal Truth in Lending Act will
also be a violation of Chapter 494, F. S. (Chapters 494.0041(2)(v) and 494.0072(2)(v), F.S.).
Now a principal representative of a mortgage lender or correspondent mortgage lender is subject to
disciplinary action for violations by associates or employees in the course of an association or
employment with the correspondent mortgage lender or the mortgage lender. The principal

15. Florida Mortgage Brokerage and Lending Act Laws and Rules 7
representative is only subject to suspension or revocation for associate or employee actions if there is a
pattern of repeated violations by associates or employees or if the principal broker or principal
representative had knowledge of the violations (Chapter 494.0072(5), F.S.).
Mortgage Lender or Correspondent Mortgage Lender When Acting As a Mortgage Brokerage Business
Added that when a mortgage lender or correspondent lender acts as a mortgage brokerage business, the
provisions of ss. 494.004(8) apply (Chapter 494.0073, F.S.).
Created Florida Statute 817.545, Mortgage Fraud
Defined the term “mortgage lending process” to mean the process through which a person seeks or
obtains a residential mortgage loan, including, but not limited to, the solicitation, application or
origination, negotiation or terms, third‐party provider services, underwriting, signing and closing, and
funding of the loan. Documents involved in the mortgage lending process include, but are not limited to,
mortgages, deeds, surveys, inspection reports, uniform residential loan applications, or other loan
applications; appraisal reports; HUD‐1 settlement statements; supporting personal documentation for
loan applications such as W‐2 forms, verifications of income and employment, credit reports, bank
statements, tax returns, and payroll stubs; and any required disclosures.
A person commits the offense of mortgage fraud if, with the intent to defraud, the person knowingly:
• makes any material misstatement, misrepresentation, or omission during the mortgage lending
process with the intention that the misstatement, misrepresentation, or omission will be relied on
by a mortgage lender, borrower, or any other person or entity involved in the mortgage lending
process; however, omission on a loan application regarding employment, income, or assets for a
loan which does not require this information are not considered a material omission for purposes
of this subsection.
• uses or facilitates the use of any material misstatement, misrepresentation, or omission during
the mortgage lending process with the intention that the material misstatement,
misrepresentation, or omission will be relied on by a mortgage lender, borrower, or any other
person or entity involved in the mortgage lending process; however, omissions on a loan
application regarding employment, income, or assets for a loan which does not require this
information are not considered a material omission for purposes of this subsection.
• receives any proceeds or any other funds in connection with the mortgage lending process that
the person knew resulted from a violation of 817.545(2)(a) or 817.545(2)(b).
• files or causes to be filed with the clerk of the circuit court for any county of this state a document
involved in the mortgage lending process which contains a material misstatement,
misrepresentation, or omission.
An offense of mortgage fraud may not be predicated solely upon information lawfully disclosed under
federal disclosure laws, regulations, or interpretations related to the mortgage lending process.
For the purpose of venue under 817.545 F.S., any violation of this section is considered to have been
committed in the county in which the real property is located or in any county in which a material act was
performed in furtherance of the violation.
Any person who violates 817.545(2) F.S. commits a felony of the third degree, punishable as provided in s.
775.082, s. 775.083, or s. 775.084.
NGES FROM 2006
2006 CHANGES
Revisions, amendments, and additions that became effective October 1, 2006.

16. 8 Module 1
Definition
Control person means an individual, partnership, corporation, trust, or other organization that possesses
the power, directly or indirectly, to direct the management or policies of a company, whether through
ownership of securities, by contract, or otherwise. A person is presumed to control a company if, with
respect to a particular company, that person:
(a) Is a director, general partner, or officer exercising executive responsibility or having similar status or
functions;
(b) Directly or indirectly may vote 10 percent or more of a class of voting securities or sell or direct the
sale of 10 percent or more of a class of voting securities; or
(c) In the case of a partnership, may receive upon dissolution or has contributed 10 percent or more of
the capital (Chapter 494.001(9)(a‐c), F.S.).
Powers and Duties of the Commission and Office
Allows the Office to require the electronic filing of applications, renewals, and fees, unless granted a
waiver by OFR due to a hardship. Prior to this change, the only license type that could file an application
online was a mortgage broker (Chapter 494.0011(2)(6), F.S.).
Books, Accounts, and Records; Maintenance; Examinations by the Office
Authorizes the commission to adopt rules for the requirements for the destruction of records maintained
by licensees after the retention period has expired. The retention period is 3 years after the date of
original entry (Chapter 494.0016(3)(4), F.S.).
Mortgage Business Schools
Requires permitted mortgage business schools to electronically report to the Office the names of pupils
who have successfully completed required training courses (Chapter 494.0029(4), F.S.).
Licensure as a Mortgage Brokerage Business; Mortgage Broker’s License
Provides that applications are not deemed received until all required fees are received (Chapters
494.0031(2)(a); 494.0033(2)(c), F.S.).
Renewal of Mortgage Brokerage Business License or Branch Office License
The license for a branch office must be renewed in conjunction with the renewal of the mortgage
brokerage business license (Chapter 494.0032(1)).
Mortgage Broker’s License
Allows the Office to contract with a third party vendor to administer the mortgage broker test. This will
allow the test to be conducted electronically at multiple locations several times a week versus the old
once a month process at limited locations (Chapter 494.0033(2)(b), F.S.).
Mortgage Brokerage Business Branch Offices; Principal Place of Business Requirements
Deleted Chapter 494.0036(3), F.S. and Chapter 494.0039(3), F.S. Eliminated from the statute the
requirement to display main office, branch office, and individual licenses.
Requirements of Licensees
Provides that each licensee shall report any change in the principal broker, principal representative,
officers, partners, members, joint venturers, directors, control persons or any individual who is the
ultimate equitable owner of 10% or greater interest (Chapter 494.004(6). F.S.).
Provides that a change of control whether through the power to direct management, ownership or
otherwise shall require an application to be submitted to the OFR unless a waiver has been

17. Florida Mortgage Brokerage and Lending Act Laws and Rules 9
granted (Chapter 494.004(6)(a‐d), F.S.).
Administrative Penalties and Fines; License Violations
Authorizes disciplinary action if fees are paid with a bad check (Chapters 494.0041(2)(s) and
494.0072(2)(s), F.S.).
Provides grounds for disciplinary action when a final judgment is entered against an applicant or licensee
in a civil action upon grounds of fraud, embezzlement, misrepresentation, or deceit (Chapters
494.0041(2)(t) and 494.0072(2)(t), F.S.).
Provides grounds for disciplinary action when action is taken by other federal and state regulatory
organizations located in or outside the State of Florida involving securities, insurance, real estate,
mortgage brokers and lenders, or other related or similar industries (Chapters 494.0041(2)(u)1.2. and
494.0072(2)(u)1.2.,F.S.).
Mortgage Lender’s License Requirements; Correspondent Mortgage Lender’s License Requirements;
Savings Clause; Branch Offices
Provides that applications are not deemed received until all required fees are received (Chapters
494.0061(2)(b), 494.0062(2)(b), 494.0065(3)(5)(b) and 494.0066(2), F.S.).
Audited financial statements of all licensed lenders have to be in accordance with United States generally
accepted accounting principles (Chapters 494.0061(2)(c), 494.0062(2)(c) and 494.0065(2)(5)(c), F.S.).
Provides under certain conditions that existing principal representatives can be grandfathered in without
class or testing requirements (Chapters 494.0061(2)(f)(8‐9) and 494.0062(2)(f)(11‐12) and
494.0065(4)(c)1.2.(10), F.S.).
Renewal of Mortgage Lender’s License; Branch Office License Renewal
Chapter 494.0064(1)(b), F.S. deleted. Eliminated the requirement to report the continuing education of
loan associates when renewing a lender’s license.
Requirements of Licensees Under Chapters 494.006‐.0077
Chapter 494.0067(1), F.S. deleted. Eliminated from the statute the requirement to display main and
branch office licenses.
Provides that each licensee shall report any change in the officers, partners, members, joint venturers,
directors, or control persons (Chapter 494.0067(4), F.S).
Provides that a change of control whether through the power to direct management, ownership or
otherwise shall require an application to be submitted to the OFR unless a waiver has been granted
(Chapter 494.0067(4)(a‐d),F.S).
CHANGES BETWEEN 2002 AND 2004 TO THE RULES OF THE FLORIDA ADMINISTRATIVE CODE
The most significant changes were that the Rules Regulation Mortgage Brokers were moved from 3D‐40
F.A.C. to a new Chapter 69V‐40 F.A.C. and all references to the Department of Banking and Finance were
replaced with the Financial Services Commission and the Office of Financial Regulation, depending upon
the specific division of responsibility between the departments.
Table 1.1 summarizes the significant changes to the rules effective in 2008 and Table 1.2 summarizes the
forms that have been renamed and readopted since March 23, 2008.

18. 10 Module 1
Table 1.1 Changes Effective in 2008 to the Rules of the Florida Administrative Code
Definitions 69V-40.001 Deleted the definition of Moral Turpitude (11) and renumbered remaining portion of
rule. Effective March 23, 2008.
Adoption of Forms 69V-40.002 All the forms were readopted by the Office of Financial Regulation (OFR) and are
available by mail from the OFR or on their website at www.flofr.com See Table 1.2
All forms were updated on March 23, 2008, and effective December 25, 2008,
Form OFR-494-01 Application for Mortgage Brokerage Business and Lender License,
Form OFR-494-03 Application for Licensure as a Mortgage Broker again updated .
Electronic Filing of Forms and Fees 69V-40.003 Effective October 21, 2008, this ruled was added to define “REAL System” to mean
the Office of Financial Regulation’s Regulatory Enforcement and Licensing System,
accessible at www.flofr.com
Application for Mortgage Brokerage Business and Lender License, Form OFR-
494-01; Application for Branch Office License, Form OFR-494-02; Application for
Licensure as a Mortgage Broker, Form OFR-494-03; Application for a Mortgage
Business School Permit, Form OFR-494-04; Mortgage Lender License Renewal and
Reactivation Form, Form OFR-494-06; and Quarterly Report Form, Form OFR-494-
08 required to be filed with the Office of Financial Regulation through the REAL
System. Required all fees to be filed with the Office of Financial Regulation through
the REAL System. Any person may petition for a waiver of the electronic filing
requirements by filing a petition under Rule 28-106.301, F.A.C. by demonstrating a
technical or financial hardship that would require a paper format.
Fees and Commissions 69V-40.008 Added that a good faith estimate does not supplant or substitute for the agreement
required by Section 494.0038(1) F.S. Effective March 23, 2008.
Payment of Guaranty Fund Claims 69V-40.015 Repealed. Effective March 23, 2008.
Change of Address 69V-40.020 Repealed. Effective March 23, 2008.
Fictitious Name Registration 69V-40.021 Added that a mortgage business school, mortgage brokerage business, or mortgage
lender will not be permitted to use a fictitious name unless they provide evidence to
the OFR that such fictitious name is duly registered with the Florida Secretary of State
pursuant to Section 865.09, F.S. Effective March 23, 2008.
Quarterly Report Filing Requirements 69V-40.022 Required the quarterly report to be filed electronically on Form OFR-494-08 at the
OFR’s website at www.flofr.com.
Added that any person may petition for a waiver of this requirement by filing a
petition pursuant to Rule 28-106.301, Florida Administrative Code (F.A.C.). The
petition shall demonstrate a technological or financial hardship that entitles the person
to file the quarterly report in a paper format. All reports must be filed with the OFR
within 30 days after the last day of each calendar quarter. Previously, the rule stated
that it must be received within 30 days. If the 30th day is a weekend or official
holiday, then the next business day is considered timely filing.
Any updates to the Quarterly Report for the quarter ending March 31, 2008, must
be filed through the Regulatory Enforcement and Licensing (REAL) System by the
filing deadline date of April 30, 2008.
Mortgage Broker Examination 69V-40.025 Deleted that an applicant will be provided an official admission notice to sit for the
examination. Applicants will be responsible for scheduling their own test and re-test,
if necessary, through REAL. Added that specific instructions to complete the
examination will be communicated prior to the examination. Added that the OFR or
its designee shall be responsible for determining that the student taking the
examination is the actual person authorized to take the examination. Added that
cheating on an examination or violating test center or examination procedures shall
be grounds for denial of licensure by the OFR.
Added that candidates who fail the exam shall have right to access the
examination questions, their examination responses, and the correct answers. Added
that a passing score will be valid for a period of 2 years from the date of passing the
examination. Previously it was 365 days.
Deleted that only those answers indicated by the candidate on the answer sheet
will be used in computing the examination score and added that test scores will be
derived from the number of correct responses.
Deleted that the notification of examination results will be sent via U.S. Mail within10
business days of the examination date. Effective March 23, 2008.
Effective October 21, 2008, “REAL” System means the Office of Financial
Regulation Enforcement and Licensing System accessible through the Office of
Financial Regulation at www.flofr.com

19. Florida Mortgage Brokerage and Lending Act Laws and Rules 11
Mortgage Broker Pre-licensing 69V-40.027 The full name and social security number of each student who completes the 24
Education Requirement hour mortgage broker course along with the school’s license number and the
completion date was added to the requirements and also added that this information
shall be submitted electronically to the OFR at their website www.flofr.com Effective
March 23, 2008.
Deleted the wording of 24 hour pre-licensing. Added that an instructor who
teaches a pre-licensing course may use it towards the satisfactory completion of the
pre-licensing education requirement. Effective March 23, 2008.
Professional Continuing Education 69V-40.0271 Added the word “professional” to continuing education requirements. Added the
Requirements for Mortgage Brokers, requirement that each loan originator of a mortgage lender, correspondent mortgage
Loan Originators, and Principal lender, or mortgage lender pursuant to the savings clause shall satisfactorily
Representatives complete 14 hours of professional continuing education.
Deleted that the continuing education requirements are waived for the initial license
renewal for mortgage brokers and principal representatives.
Added the requirement that each permitted school shall submit within 5 days of
completion of each professional continuing education course to the OFR at their
website www.flofr.com the full name and mortgage broker license number or social
security number of each student, the school’s name and license number, the number
of hours completed by the student, and the completion date for individuals licensed as
mortgage brokers.
Increased the retention period of student course completion records from 3 years
to 4 years from the date of completion. Effective March 23, 2008.
Permit for Mortgage Business School 69V-40.028 Renamed the application for Mortgage Business School Permit to
OFR-494-04.
Added that an applicant shall file an amendment to a pending application for a
Mortgage Business School if the information in the application becomes inaccurate
for any reason. The applicant has 30 days from the receipt of the application by the
OFR to file the amendment on Form OFR-494-04. Otherwise, prior written
permission from the OFR is required. Material changes to the application may be
deemed grounds for denial by the OFR and a new application accompanied by the
appropriate filing fees may be required.
Added that a withdrawal of application will be deemed effective upon receipt by
the OFR and that all fees are non-refundable if withdrawn. Also, all fees are non-
refundable if the application is denied.
Added that Form OFR-494-04 is incorporated by reference in subsection 69V-
40.002(1), F.A.C. Effective March 23, 2008.
Mortgage Business Schools 69V-40.0281 Because 494.0029 was renumbered, prohibited practices are now a violation of
Prohibited Practices and 494.0029(2)(c) and (d) and (f) Effective March 23, 2008.
Advertising/Publicity
Mortgage Business School Permit 69V-40.029 Because the Mortgage Business School Permit Renewal form was repealed, the
Renewal requirement to submit it with a renewal was deleted. Added that schools teaching the
24-hour pre-licensing course submit all training materials that the applicant plans to
distribute to course participants including a copy of all teaching aids, such as flash
cards, hand-outs, audio/video materials, computer disks/cd’s, and any computer
based training. Added the the OFR shall deem a renewal received upon receipt of
the requisite fees and training materials at such time as it has been dated stamped by
the Cashier’s Office of the Department of Financial Services or the date the renewal
process has been completed on the OFR’s website. All renewal fees and training
materials must be received by September 30th of the year in which the permit
expires. If September 30th falls on a Saturday, Sunday, or legal holiday pursuant to
Section 110.117, F.S., the renewals received on the next business day will be
considered timely received. Effective March 23, 2008.
Application Procedure for Mortgage 69V-40.031 Renamed the Application for Licensure as a Mortgage Broker, Form OFR-494-03.
Broker License Gave the Fingerprint card a name, FL921050Z, and increased the fingerprint card
processing fee in 2008 to $43.25. It had been increased on March 23, 2008.
Added the requirement that the applicant has passed the mortgage broker
examination as defined in Rule 69V-40.025 to be included with the Application for
Licensure as a Mortgage Broker.
If the information in the Application for Licensure as a Mortgage Broker or any
amendment thereto becomes inaccurate, the applicant shall file an amendment

20. 12 Module 1
correcting such information within 30 days of the change on Form OFR-494-03.
Previously, it was 10 days. An applicant may amend the application at any time
within 30 days from the receipt of the application by the Office.
Prior to a determination of the application, an applicant may withdraw their
application by written request and is deemed effective upon receipt by the Office of
the written request.
Except for the fingerprint card, all applications, fees, data, and forms required
under this rule shall be filed electronically at www.flofr.com. The Office will issue a
confirmation of receipt of submission and payment upon successful submission by
the applicant on the website. Any person may petition for waiver of the electronic
submission of applications, fees, data and forms by filing a petition pursuant to Rule
28-106.301, F.A.C. Such petition shall demonstrate a technological or financial
hardship that entitles the person to file the application, fees, data or form in a paper
format.
Added that Form OFR-494-03 and Form FL921050Z are incorporated by reference in
subsection 69V-40.002(1), F.A.C.
Effect of Law Enforcement Records 69V-40.0311 Effective December 2, 2008, this rule was added. It applies to applications for
on Applications for Mortgage Broker licensure as a Mortgage Broker for persons who have been found guilty of, or who
Licensure have pled guilty or nolo contendere to, certain crimes. At the time of submitting a
mortgage broker application, an applicant for a mortgage broker license shall disclose
on the application form any pending criminal charges and all criminal matters in which
the applicant has pled guilty or nolo contendere to, or has been convicted or found
guilty, regardless of whether adjudication was withheld, of any crime. In addition, the
applicant shall supply the Office with required documentation, as specified in this rule,
relating to all criminal matters in which the applicant has pled guilty or nolo
contendere to, or has been convicted or found guilty, regardless of whether
adjudication was withheld, of a class “A”, “B”, “C”, or “D” crime as described in this
rule; any pending criminal charges relating to a class “A”, “B”, “C”, or “D” crime as
described in this rule; or shall supply evidence that such documentation cannot be
obtained. The applicant is not eligible for licensure with a Class "A" crime in their law
enforcement record. Class "A" crimes include any type of fraud, including but not
limited to fraud, postal fraud, wire fraud, securities fraud, Welfare fraud, defrauding
the Government, credit card fraud, defrauding an Innkeeper, passing worthless
check(s) with intent to defraud; perjury; armed robbery; robbery; extortion; bribery;
embezzlement; grand theft; larceny; burglary; breaking and entering; identity theft;
any type of forgery or uttering a forged instrument; misuse of public office;
racketeering; buying, receiving, concealing, possessing or otherwise dealing in stolen
property; treason against the United States, or a state, district, or territory thereof;
altering public documents; witness tampering; tax evasion; impersonating or
attempting to impersonate a law enforcement officer; and/or money laundering.
A person who has been found guilty of, or who has pled guilty or nolo contendere
to, certain other felonies constituting moral turpitude, including but not limited to
specified serious violent crimes including murder in all degrees; arson; sale,
importation, or distribution of controlled substances (drugs) or possession for sale,
importation or distribution; aggravated assault (e.g., as with a deadly weapon);
aggravated battery (e.g., as with a deadly weapon); rape; sexually molesting any
minor; sexual battery; battery of or threatening a law enforcement officer or public
official in the performance of his/her duties; and/or kidnapping is not eligible for
licensure as a mortgage broker until 15 years have passed since the trigger date of a
single crime. These crimes are classified as Class “B” crimes. Trigger date is
defined as the date on which the applicant was found guilty, or pled guilty or pled nolo
contendere to a crime.
A person who has been found guilty of, or who has pled guilty or nolo contendere
to, a felony constituting an act of moral turpitude that is not addressed under Class
“A” or “B” crimes is not eligible for licensure as mortgage broker until 7 years have
elapsed from the trigger date of a single crime. These crimes are classified as Class
“C” crimes.
A person who has been found guilty of, or who has pled guilty or nolo contendere
to, a misdemeanor involving fraud, dishonest dealing or moral turpitude, is not eligible
for licensure as a mortgage broker until 5 years have elapsed since the trigger date of
a single crime. These crimes are classified as Class “D” crimes.
The omission of any part of a law enforcement record required to be disclosed is
a material misrepresentation or material misstatement on the application and the
application shall be denied pursuant to Section 494.0041(2)(c), F.S. The Office shall

21. Florida Mortgage Brokerage and Lending Act Laws and Rules 13
not deny an application for failure to provide documentation when the crime is not a
Class “A-D” crime and the applicant has disclosed the crime on the application form.
If the Office discovers the applicant’s failure to disclose after a license has been
granted, the Office will suspend or revoke each license currently held by the applicant
as follows- suspension for 12 months if, had the license application been accurate,
the application would have been granted, based on the statutes and licensing rules
applicable to the application at the time the Office issued the license, and the
documentation in the applicant's file at the time the Office issued the license; or
revocation if, had the license application been accurate, the application would have
been denied, based on the statutes and licensing rules applicable to the application at
the time the Office issued the license.
The rule provides for mitigating and aggravating factors that may lengthen or
shorten the time periods for mortgage broker license applicants. Two or more
offenses are considered a single crime if they are triable in the same court and are
based on the same act or transaction or on two or more connected acts or
transactions.
Mortgage Broker License Renewal 69V-40.043 Renamed the Mortgage Broker License Renewal and Reactivation Form to
and Reactivation OFR-494-07.
All applications, fees, data and forms required to be filed under this rule shall be filed
electronically at www.flofr.com
Any person may petition for waiver of the electronic submission of applications,
fees, data and forms by filing a petition pursuant to Rule 28-106.301, F.A.C. Such
petition shall demonstrate a technological or financial hardship that entitles the person
to file the application, fees, data or form in a paper format.
The Office will issue a confirmation of receipt of submission of renewal payment
upon successful submission by the applicant on the website.
Added that Form OFR-494-07 is incorporated by reference in subsection 69V-
40.002(1), F.A.C. Effective March 23, 2008.
Application Procedure for Mortgage 69V-40.051 Renamed form to Application for Mortgage Brokerage Business and Lender License,
Brokerage Business License Form OFR-494-01. Added the requirement for each chief executive officer, each
chief financial officer, chief operations officer, chief legal officer, chief compliance
officer, control person, member, partner, and/or joint venturer shall submit completed
fingerprint card FL921050Z and form OFR-494-01 to the OFR along with the
nonrefundable fee unless they already hold an active mortgage broker’s license with
the OFR. The fee was $42.25 effective March 23, 2008 and on December 25, 2008,
the fee was increased to $43.25.
If an entity holds an active license under Chapter 494, F.S. it is exempt from these
provisions when it applies for a different type of license under Chapter 494 F.S.
unless there has been a change of control of 25% or more of the ownership interest
or in the controlling interest since the initial license was approved by the OFR.
Previously the change in control was 50%.
If any information contained in the Application for Licensure or any amendment
thereto becomes inaccurate for any reason, then the applicant shall file an
amendment correcting such information within 30 days of the change on Form OFR-
494-01. Previously, it was 10 days. An applicant may amend the application at any
time within 30 days from the receipt of the application by the Office.
Prior to a determination of the application, an applicant may withdraw their
application by written request and is deemed effective upon receipt by the Office of
the written request.
Deleted Restoration of Civil Rights.
Added that Form OFR-494-01 and Form FL921050Z are incorporated by
reference in subsection 69V-40.002(1), F.A.C.
Effect of Law Enforcement Records 69V-40.0511 Effective December 2, 2008, this rule was added. It applies to applications for
on Applications for Mortgage licensure for Mortgage Brokerage Business Licensure. For purposes of this rule each
Brokerage Business Licensure officer, director, control person, member, partner, or joint venturer of a Mortgage
Brokerage Business License applicant, and each ultimate equitable owner with a 10%
or greater interest in the applicant shall be referred to collectively as “relevant
persons.” If the applicant is a natural person, he or she is a relevant person under this
rule. At the time of submitting a Mortgage Brokerage Business Application, the
applicant shall disclose on the application form any pending criminal charges and all
criminal matters in which a relevant person has pled guilty or nolo contendere to, or
has been convicted or found guilty, regardless of whether adjudication was withheld,
of any crime. The omission of any part of a law enforcement record required to be

22. 14 Module 1
disclosed is a material misrepresentation or material misstatement on the application
and the application shall be denied pursuant to Section 494.0041(2)(c), F.S.
The Office shall not deny applications for failure to provide documentation when
the crime is not a Class "A-C" crime and the applicant has disclosed the crime on the
application form. Class “A” crimes include the following felonies which involve fraud,
dishonest dealing, or moral turpitude any type of fraud, including but not limited to
fraud, postal fraud, wire fraud, securities fraud, welfare fraud, defrauding the
Government, credit Card fraud, defrauding an Innkeeper, passing worthless check(s)
with intent to defraud; perjury; armed robbery; robbery; extortion; bribery;
embezzlement; grand theft; larceny; burglary; breaking and entering; identity theft;
any type of forgery or uttering a forged instrument; misuse of public office;
racketeering; buying, receiving, concealing, possessing or otherwise dealing in stolen
property; treason against the United States, or a state, district, or territory thereof;
altering public documents; witness tampering; tax evasion; impersonating or
attempting to impersonate a law enforcement officer; money laundering; murder in all
degrees; arson; sale, importation, or distribution of controlled substances (drugs); or
possession for sale, importation or distribution; aggravated assault (e.g., as with a
deadly weapon); aggravated battery (e.g., as with a deadly weapon); rape; sexually
molesting any minor; sexual battery; battery of or threatening a law enforcement
officer or public official in the performance of his/her duties; kidnapping. This list is
representative only and shall not be construed to constitute a complete or exclusive
list all of crimes that are Class “A” crimes. No inference should be drawn from the
absence of any crime from this list. The applicant will not be granted a license until
15 years have passed since the trigger date.
Class "B" crimes include all felonies that involve any other act of moral turpitude
and are not Class “A” crimes. The applicant will not be granted a license until 7 years
have passed since the trigger date a single crime and longer for multiple crimes.
Class "C" crimes include any misdemeanor that involves fraud, dishonest dealing
or any other act of moral turpitude. The applicant will not be granted licensure until 5
years have passed since the trigger date for a single crime and longer for multiple
crimes.
The rule provides for mitigating and aggravating factors that may lengthen or
shorten the time periods for mortgage broker license applicants. The Office finds it
necessary that a longer disqualifying period be utilized in such instances, before
licensure can safely be granted. Where the relevant person has been found guilty or
pled guilty or pled nolo contendere to more than one crime, the Office shall add 5
years to the disqualifying period for each additional crime when the relevant persons
whose law enforcement record includes multiple Class B or Class C crimes, or any
combination thereof. Two or more offenses are considered a single crime if they are
triable in the same court and are based on the same act or transaction or on two or
more connected acts or transactions.
Mortgage Brokerage Business 69V-40.053 Effective March 23, 2008. Deleted the requirement to submit a completed renewal
License and Branch Office License and reactivation form.
Renewal and Reactivation A renewal fee filed electronically on the Office’s website shall be considered
received on the date the Office issues a confirmation of payment to the licensee via
the Office’s website. A confirmation is issued by the Office upon successful
submission of the renewal payment.
All applications, fees, data and forms required to be filed under this rule shall be
filed electronically at www.flofr.com
Any person may petition for waiver of the electronic submission of applications,
fees, data and forms by filing a petition pursuant to Rule 28-106.301, F.A.C. Such
petition shall demonstrate a technological or financial hardship that entitles the person
to file the application, fees, data or form in a paper format. If the renewal payment is
received in a paper format, then the received date shall be the date stamped on the
payment when received by the Department of Financial Services’ Cashier’s Office in
Tallahassee, Florida.
Application Procedure for Mortgage 69V-40.058 Added to operate a branch, the applicant must complete Form OFR-494-02,
Brokerage Business Branch Office Application for Branch Office License. Added that amendments to pending
License applications shall be filed within 30 days of the change and within 30 days from
receipt of the application by the Office on Form OFR-494-02. Previously, it was 10
days to notify the Office of an amendment.
Prior to a determination of the application, an applicant may withdraw their
application by written request and is deemed effective upon receipt by the Office of
the written request.