Finance Compliance Tips
Enforcement
Tip
Licensed money transmitters and payment instrument sellers must at all times maintain an acceptable collateral device (i.e., surety bond, letter of credit, or pledge of deposit) of no less than $50,000 or up to a maximum of $2 million. Pursuant to section 560.209(6), Florida Statutes, a licensee who ceases operations in this state must maintain the collateral device for five (5) years. The same is true of an entity that surrenders its license.
Tip
Licensees should provide a toll-free number, or number to the OFR, for contact purposes.
Tip
House Bill 1185 contains new limits on cashing corporate payment instruments (corporate checks) based on the payee’s workers’ compensation policy payroll amount.
Beginning July 1, 2023, a licensed check casher is prohibited from cashing corporate checks where the aggregate face amount of all corporate checks cashed for each payee exceeds 200 percent of the payee’s workers’ compensation policy payroll amount during the same dates as the workers’ compensation policy coverage period.
For example, if a corporate payee “Example Construction” has a current workers’ compensation policy with a payroll coverage amount of $100,000, that covers the period January 1, 2023, through December 31, 2023, no check casher in this state may cash corporate checks that exceed 200 percent ($200,000) throughout the state, during the coverage period January 1, 2023, through December 31, 2023.
NOTE: Section 560.103(11), Florida Statutes, defines a “Corporate payment instrument” as a payment instrument on which the payee named on the instrument’s face is other than a natural person.
Tip
The maximum fees for cashing checks, exclusive of verification costs not to exceed $5.00, is ten percent for personal checks, three percent for state assistance or federal social security benefits and five percent for all other checks.
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Check cashing fees should be posted in conspicuous place.
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Money transmitters shall provide a receipt with a confirmation number for any transaction.
Tip
Tip: Rule 69V-560.704(4)(d), F.A.C., requires a licensed check casher to create and maintain a customer file for each entity listed as the payee on corporate payments instruments. In addition to other requirements in this rule, if the entity (payee) has an active workers’ compensation policy, the licensee must also maintain a copy of the policy declaration page or other document provided by the insurer indicating the amount of coverage.
Tip
Money transmitters shall, in the normal course of business, ensure that money transmitted is available to the designated recipient within 10 business days after receipt.
Industry
Mortgage Loan Originators/Chapter 494
Tip
Only licensed loan originators, mortgage brokers, or mortgage lenders may offer or provide loan modification services. A licensee may not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for loan modification services before completing or performing all services included in the agreement for loan modification services.
Industry
Mortgage Loan Originators, Mortgage Brokers and Mortgage Lenders/Chapter 494
Tip
All licensed loan originators, mortgage brokers, and mortgage lenders must maintain record of samples of each of its advertisements, including commercial scripts of each radio or television broadcast for two years after publication or broadcast.
Tip
An individual may not act as a loan originator unless he or she is an employee of, or an independent contractor for, a mortgage broker or mortgage lender and may not be employed by or contract with more than one mortgage broker or mortgage lender, or either, simultaneously.
Tip
Licensees should provide a toll-free number, or number to the OFR, for contact purposes.
Tip
A licensed consumer finance company shall deliver to the borrower at the time a loan is made, a statement showing in clear and distinct terms the amount, date of the loan and maturity, any security, the name and address of both borrower and licensee, and the interest charged.
Tip
Upon repayment of the loan in full, the consumer finance licensee shall mark indelibly every paper signed by the borrower with Paid or Cancelled and release any security.
Tip
A licensed consumer finance company shall give to the borrower a plain and complete receipt for each payment, on any account of any loan.
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A buyer is entitled to an exact copy of the Retail Installment Contract from the seller.
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A buyer is entitled to a receipt for any payment made in cash.
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A satisfaction of lien shall be provided when a Retail Installment Contract is paid in full.
Tip
A licensed title loan lender, or any agent or employee of a title loan lender, shall not enter into a title loan agreement with a person under the age of 18 years.
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A licensed title loan lender, or any agent or employee of a title loan lender, shall not engage in the business of selling new or used motor vehicles, or parts for motor vehicles.
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A licensed title loan lender, or any agent or employee of a title loan lender, shall not act as a title loan lender without an active license issued under this act.
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A licensed title loan lender, or any agent or employee of a title loan lender, shall not charge a prepayment penalty.
Tip
No person shall simulate in any manner a law enforcement officer or a representative of any governmental agency.
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No person shall use or threaten force or violence.
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No person shall Communicate with the debtor between the hours of 9 p.m. and 8 a.m. in the debtor’s time zone without the prior consent of the debtor.
Tip
No person shall mail any communication to a debtor in an envelope or postcard with words typed, written, or printed on the outside of the envelope or postcard calculated to embarrass the debtor. An example of this would be an envelope addressed to "Deadbeat, Jane Doe" or "Deadbeat, John Doe."
Registration
Tip
The Office of Financial Regulation reminds companies licensed as a Mortgage Lender or a Mortgage Lender Servicer to select the correct branch application type in NMLS when applying for a branch license. For example, a company licensed as a Mortgage Lender Servicer should apply for a Mortgage Lender Servicer branch license; a Mortgage Lender should apply for a Mortgage Lender branch license. Companies applying for the wrong branch license type will have to reapply to obtain the correct branch license.
Avoid delays in obtaining your branch license. Use this information to assist in the branch application process:
https://mortgage.nationwidelicensingsystem.org/slr/Pages/DynamicLicenses.aspx?StateID=FL& PF=1
Tip
The Office of Financial Regulation reminds applicants applying for a Mortgage Loan Originator license to upload information related to their High School Education. A copy of your diploma is not required. Simply upload your high school information via a PDF document to the Verification of Experience section via the Document Uploads section of the MU4. Provide the following on the document: your name, your NMLS ID number, name of school, and the date the high school diploma, or its equivalent, was received. Providing this information upon submission of your application will prevent delays in having your license processed.
Use this checklist to make sure you don’t miss any important requirements!
Tip
The Office of Financial Regulation offers military fee waivers for individuals that are currently serving, or have formerly served, as an active duty member of the United States Armed Forces, including National Guard and Coast Guard units, or a spouse of such member who was married to the member during a period of active duty, or surviving spouse of such member who was serving on active duty at the time of death. Please review the document below to determine eligibility and documentation requirements.
https://www.flofr.gov/sitePages/documents/OFR-MIL-001.pdf
Individuals who qualify can receive a refund of $195 for mortgage loan originator initial applications and/or receive a refund of $150 for mortgage loan originator renewal applications received on or after September 25, 2018.
The applicable fees must be paid during the application and/or renewal process. The Office will refund the appropriate fee upon receipt and approval of the Military Fee Waiver Form.
Email the Military Fee Waiver Form to OFR@FLOFR.GOV in lieu of mailing the form.
Tip
Minimalize delays in renewing Mortgage Business licenses by reviewing this notice! The Office of Financial Regulation sometimes receives business renewal filings that do not meet the necessary requirements for new or existing owners and officers. Please review this notice to help reduce processing time of your renewal.
If your renewal filing has been submitted with the required information, please allow time for review. Florida is a state that requires a manual review of all mortgage licensees prior to approving their renewal. Fortunately, according to Florida Statutes, if a mortgage licensee holding an active license has applied to renew the license on or before December 31, the licensee remains active until the renewal application is approved or denied and can continue to operate while the renewal filing is being processed.
https://www.flofr.gov/sitePages/documents/RR98-Mortgage-Business-Renewal-Letter.pdf
Tip
An individual may not act as a loan originator unless he or she is an employee of, or an independent contractor for, a mortgage broker or mortgage lender and may not be employed by or contract with more than one mortgage broker or mortgage lender, or either, simultaneously.
Tip
The Office of Financial Regulation reminds companies applying for a Mortgage Broker, Mortgage Lender, or Mortgage Lender Servicer license of the requirement to designate a Principal Loan Originator.
Mortgage Brokers
Pursuant to Chapter 494.0035, each mortgage broker must be operated by a principal loan originator who shall have full charge, control, and supervision of the mortgage broker. The principal loan originator must have been licensed as a loan originator for at least 1 year before being designated as the principal loan originator or must demonstrate to the satisfaction of the office that he or she has been actively engaged in a mortgage-related business for at least 1 year before being designated as a principal loan originator.
Mortgage Lenders and Mortgage Lender Servicers
Pursuant to Chapter 494.00665, each mortgage lender business must be operated by a principal loan originator who shall have full charge, control, and supervision of the mortgage lender business. The principal loan originator must be licensed as a loan originator pursuant to s.494.00312.
Industry:
Mortgage Lenders and Mortgage Lender Servicers
Tip
What are the requirements of a remote location?
"Remote location" means a location, other than a principal place of business or a branch office, at which a loan originator of a licensee may conduct business. A licensee may allow loan originators to work from remote locations if:
- The licensee has written policies and procedures for supervision of loan originators working from remote locations.
- Access to company platforms and customer information is in accordance with the licensee's comprehensive written information security plan.
- An in-person customer interaction does not occur at a loan originator's residence unless such residence is a licensed location.
- Physical records are not maintained at a remote location.
- Customer interactions and conversations about consumers will be in compliance with federal and state information security requirements, including applicable provisions under the Gramm-Leach-Bliley Act and the Safeguards Rule established by the Federal Trade Commission, set forth at 16 C.F.R. part 314, as such requirements may be amended from time to time.
- A loan originator working at a remote location accesses the company's secure systems or documents, including a cloud-based system, directly from any out-of-office device such as a laptop, phone, desktop computer, or tablet, through a virtual private network or system that ensures secure connectivity and that requires passwords or other forms of authentication to access.
- The licensee ensures that appropriate security updates, patches, or other alterations to the security of all devices used at remote locations are installed and maintained.
- The licensee is able to remotely lock or erase company-related contents of any device or otherwise remotely limit all access to a company's secure systems.
- The registry's record of a loan originator who works from a remote location designates the principal place of business as the loan originator's registered location, or the loan originator has elected a licensed branch office as a registered location.
Tip
Can a Loan Originator of a licensed Mortgage Lender work from a remote location as defined in Chapter 494.001(35)?
Yes. A licensed loan originator that is an employee of, or an independent contractor for a licensed mortgage lender may work from a remote location if the requirements of a “remote location” are met, as defined in Chapter 494.001(35).
Industry:
Mortgage Brokers
Tip
Can a Loan Originator of a licensed Mortgage Broker work from a remote location as defined in 494.001(35)?
No. "Remote location" only applies to a licensed loan originator that is an employee of, or an independent contractor for a licensed mortgage lender. Refer to Chapter 494.0039 and Chapter 494.0067(1).
Tip
The Florida Office of Financial Regulation reminds mortgage licensees that an individual may not be employed by or contract with more than one mortgage broker or mortgage lender, or either simultaneously. Sponsorship requests that have multiple Florida-licensed mortgage companies listed in your Active Company Relationships will cause a delay in the approval of your sponsorship.
For information regarding sponsorships visit the NMLS website.
Tip
The Office of Financial Regulation reminds applicants applying for a Mortgage Loan Originator license to complete the state-specific criminal background check during the application process. This causes significant delays for the applicant, as the Office is unable to start review of the application until the results of the state-specific criminal background check are received by the Office.
Use this checklist to make sure you don’t miss any important requirements!
https://mortgage.nationwidelicensingsystem.org/slr/PublishedStateDocuments/FL-MLO-New- App-Checklist.pdf
Tip
Money Service Business/Chapter 560, Consumer Finance Lenders/Chapter 516
Tip
Consumer Finance Lenders Consumer Finance Lenders subject to the requirements outlined in Chapter 516, Florida Statutes must, at the time of application for a license or a license renewal, attest, under the penalty of perjury to the requirements of the bill. Download OFR-516-05 – Consumer Finance Company Attestation Form here.
Money Services Businesses Money Services Businesses subject to the requirements outlined in Chapter 560, Florida Statutes, must, at the time of application for a license or a license renewal, attest, under the penalty of perjury to the requirements of the bill. Download OFR-560-10 – Money Services Businesses Attestation Form here.
Learn more here.
Tip
The Office of Financial Regulation reminds companies registered as a Consumer Collection Agency of the annual requirement to renew your registration. All Consumer Collection Agency registration expire annually on December 31st. There is not a late renewal period. Consumer Collection Agencies that fail to renew their registration by December 31st will have to reapply for a completely new registration and resubmit all the requirements. The Office will be sending a series of emails beginning on or about November 1st reminding you to renew the registration.