The FAMB Focus

FAMB Government Affairs Update by Tom Morcom, Committee Chair

Florida Association of Mortgage Brokers has partnered with the National Federation of Mortgage Professionals (NFPM) to expand participation in the Federal Legislative and Regulatory process ...

Florida Mortgage Brokers urged to lobby key issues during the Congressional recess

Florida Mortgage Brokers are urged to talk to Federal lawmakers over the spring recess and let them know the important role Loan Originators play in America's economic recovery.

Florida Mortgage Brokers should also ask Federal lawmakers to use care when considering legislation such as HR 1728 which would restrict yield spread premium on all mortgage originations and could limit mortgage products available to credit worthy homebuyers.

FTC Red Flags' Web site to aid compliance

The Federal Trade Commission unveiled a Web site to help financial institutions and other creditors comply with the "red flags" rule issued under the 2003 Fair and Accurate Credit Transactions Act. This information can be found by going to the Federal Trade Commission web page, www.ftc.gov.

The rule is aimed at helping to reduce the incidence and impact of identity theft. It requires institutions to create procedures for identifying and guarding against potential ID theft that incorporates a set of red flags, or indicators of such activity.

The FTC red flags site is dubbed "Fighting Fraud with the Red Flags Rule: A How-to Guide for Business." It lists the kinds of organizations that are subject to the rule, and provides information for developing ID theft prevention programs and articles and guidance on specific elements of the rule.

The Florida Legislature Is Now In Session

Florida's legislature is in its 2009 session and there are many proposed laws affecting Mortgage Loan Originators and mortgage lending. The most significant of these is SB 2226, an almost complete rewrite of the current law outlining the duties and responsibilities of Loan Originators.

There are several controversial portions of SB 2226

1.       It gives Florida mortgage regulators the right the request a copy of each mortgage licensee's Credit Report and use it as a possible reason for denial of issuing or reissuing a Loan Originator license.

2.       It increases the amount of equity required for a Correspondent Lender to obtain or retain their correspondent lending license.

3.       It mandates state licensing and annual license renewal for all Loan Originators currently working for Mortgage Brokerage Businesses, Mortgage Lenders, and Correspondent Lenders.

4.       It mandates state licensing and annual license renewal for Loan Processors who currently work for Mortgage Brokerage Businesses, Mortgage Lenders and Correspondent Lenders.

Take some time and read other issues within SB 2226 now, before it becomes law so you will be prepared for changes to the law.

Join Florida Association of Mortgage Brokers - If you are not a member of the Florida Association of Mortgage Brokers shouldn't you join and make sure FAMB continues to work for you in Tallahassee and Washington?

Contribute to the Florida Association of Mortgage Brokers PAC - If you are already a member of the Florida Association of Mortgage Brokers shouldn't you contribute to the association's PAC and make sure FAMB continues to work for you in Tallahassee and Washington?