Loan Modification Licensure in Florida - an industry not without regulation
The days of simply opening up shop and start a loan modification business have come to an end in Florida. Individuals or companies that provide loan financing services amendment must now be licensed as a mortgage broker from the Florida Office of Financial Regulation (OFR), to conduct business.
The Florida legislature recently passed Senate Bill SB 2226th This law will have significant changes in Florida's mortgage broker law - Chapter 494,> Florida Statutes - from 1 January 2010. In particular, the new law includes in particular negotiations on existing loans as part of the responsibilities of a mortgage broker. As such, try persons or companies want to negotiate a loan modification mortgage in Florida require a license by OFR. In addition, there are new disclosures are required to complete a loan modification - block printing on letter contracts, and a three-day cooling-off period are some of theChanges.
The new law also calls for "loans" to obtain a license. Prior to the amended Act, there was a large gap allows that employee to act as a mortgage broker of loans together and still collecting a salary for a borrower and lender. Although this section of the Act on the phases in the 1 Be presented in October 2010, hundreds of people, the applications to conform to the OFR.
The new law was prompted by hundreds of complaints filedwith the Office of the Attorney General in Tallahassee. While only 59 complaints were filed in 2008, exploded the number at around 3750 this year to Florida Attorney General Bill McCollum, who recently appeared on the credit report with Bill Lewis on WWNN AM 1470 in Florida.
In an effort to combat the rampant rise in foreclosure rescue fraud within an industry previously unregulated General McCollum sued three Miami-Dade CountyForeclosure rescue companies - and the lawyers who worked for them - claim that they charge ahead "qualified payments" as high as $ 1299 to carry out modifications to loans in violation of state law. In Miami-Dade County Circuit Court on 17 Filed in December 2009, the suit makes, also contends that the company required customers setting up escrow accounts for additional charges and they cheated, it presupposes is that the money for legal representation.
After receiving numerous complaints - the majority originatingconsumers outside of Florida - the Attorney General investigations Kirkland Young LLC, began in July 2009. State regulatory authorities soon realized that the business with ABK Consultants Inc. and Attorney Help LLC, which were also named in the color has been connected. Although Miami-Dade, courted corporate customers nationwide. The legal action brought by the shutdown of the three companies a 10,000 dollar fine for each violation of state law as well as restitution for defrauded consumers in theProcess. While in bankruptcy, Kirkland Young was sued by the Federal Trade Commission.
By 30 November 2009 South Florida fourth in the nation for home loan modifications, with less than 34,860 making President Barack Obama's Affordable Home Program. Nationwide, 24 percent of the 3.3 million households have been modified with non-performing loans, according to a report, U.S. Department of the Treasury. While the new law will not eliminate loansUpdate fraud completely, it becomes increasingly difficult to make. In the first half of 2009, which is Miami-Dade County's Mortgage Fraud Task Force for more than 200 cases of loan modification fraud. In 2008, the Miami-Dade branch of the FBI had the second highest number of mortgage fraud reports in the country with 5155 reported cases.
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