Florida Law Requires Loan Mod Companies to Obtain License

On December 7, the Florida Office of Financial Regulations issued a reminder that, as of January 1, 2010, individuals and companies providing loan modification services to Florida borrowers must maintain an active Florida mortgage lender, mortgage broker or correspondent mortgage lender license. The requirement is part of a law signed by Florida Governor Charlie Crist on June 29, 2009 that also provided for the licensing of mortgage loan originators under the Nationwide Mortgage Licensing System, as required under the federal Secure and Fair Enforcement for Mortgage Licensing Act (reported in InfoBytes, July 3, 2009). Under the new law, loan modification service providers remain prohibited from charging up-front fees for loan modification services. The law also subjects unlicensed persons or entities that provide loan modification services to Florida borrowers to criminal penalties.