Legislative Updates

The Florida legislature recently amended its laws regarding licensing exemptions, effective July 1, 2019, while the New Hampshire legislature amended provisions affecting non-depository mortgage bankers, brokers, and servicers, effective May 15, 2019.

FLORIDA HOUSE BILL 935

An individual who does not hold himself or herself out to the public as being in the mortgage lending business is exempt from regulation as a loan originator.  The term “hold himself or herself out to the public as being in the mortgage lending business” includes any of the following:

• Representing to the public, through advertising
  or other means of communicating or providing information, including the use of
  business cards, stationery, brochures, signs, rate lists, or promotional items,
  by any method, that such individual can or will perform the activities of a
  loan originator;
• Soliciting in a manner that would lead the
  intended audience to reasonably believe that such individual is in the business
  of performing the activities of a loan originator;
• Maintaining a commercial business establishment
  at which, or premises from which, such individual regularly performs the
  activities of a loan originator or regularly meets with current or prospective
  mortgage borrowers; or
• Advertising, soliciting, or conducting business
  through the use of a name, trademark, service mark, trade name, Internet
  address, or logo that indicates or reasonably implies that the business is the
  type of business transacted or conducted by a licensed mortgage lender.

It is unlawful for any person to misrepresent a residential mortgage loan as a business purpose loan.

NEW HAMPSHIRE HOUSE BILL 649

Each mortgage banker, mortgage broker, or mortgage servicer applicant is required to submit to the Banking Department detailed financial information sufficient for the commissioner to determine the applicant's ability to conduct the business of a mortgage banker, a mortgage broker, or a mortgage servicer with financial integrity.  An applicant or licensee must demonstrate and maintain a minimum positive net worth in the amount of at least $25,000.

No person subject to the New Hampshire laws related to licensing of non-depository mortgage bankers, brokers, and servicers may:

• Instruct, solicit, propose, or cause a person to
  sign another’s signature on any document without legal authority; or
• Solicit, accept, or execute any contract or
  other document related to any transaction that contains any blanks to be filled
  in after signing or initialing the contract or other document, except for forms
  authorizing the verification of application information or as otherwise
  expressly provided.