The State of Florida Financial Services Commission and the Office of Financial Regulation have recently implemented Emergency Rules with respect to the processing of license applications for persons who have been found guilty of, or who have pled guilty or nolo contendre to, certain crimes.
   The policies address applications for licensure as mortgage brokers, mortgage lenders, correspondent lenders and mortgage brokerage businesses. The rules provide that a person who has been found guilty of, or who has pled guilty or nolo contendre to, a felony involving fraud, dishonesty, breach of trust or money laundering (Class "A" crimes) is not eliginle for licensure as a mortgage broker.  
    A person who has been found guilty of, or who has pled guilty or nolo contendre to, certain other felonies constituting moral turpitude, including but not limited to specified serious violent crimes (Class "B" crimes) is not eligible for licensure as a mortgage broker until 15 yeasr have passed.  A person who has been found guilty of, or who has pled guilty or nolo contendre to, a felony constituting an act of moral turpitude that is not addressed under Class "A" or "B" crimes (Class "C" crimes) is not eligible for licensure as a mortgage broker until seven years have elapsed.  A person who has been found guilty of, or who has pled guilty or nolo contendre to, a misdemeanor involving fraud, dishonest dealing or moral turpitude (Class "D" crimes), is not eligible for licensure as a mortgage broker until five years have elapsed.
    For information regarding the Emergency Rule, please contact Terry Straub, Director, Division of Finance, Office of Financial Regulation, The Fletcher Building, 200 East Gaines Street, Tallahassee, Florida 32399, (850) 410-9805, terry.straub@flofr.com

We should all be very happy about this bill because this will force all of those individuals and companies that operate without integrity to get out of the business or comply with the law. The Bill prohibits taking money up front before services are performed. This is referring to forbearances, workout agreements, loan mods, etc.    
    You don’t know how many homeowners I have talked to that say that they gave an someone a $1000 or a payment equal to 1 month mortgage payment to negotiate with their lender for them and they never hear from that investor again.  Homeowners don’t deserve to be treated like this and I’m so happy they included this in the bill.     
    Click here to view onlineor for a copy of the bill please click below.

On Monday, November 10, 2008, Fannie Mae and Freddie Mac announced they are going to work with
homeowners that are in default of their mortgages. Where TARP and Hope For Homeowners have sorely disappointed to date, Fannie and Freddie are taking a real first step at trying to address the number of foreclosures. Fannie and Freddie will be modifying loans by temporarily or permanently reducing the
interest rate and / or extending the loan, and deferring a portion of principle interest free to bring the debt to income ratio to 38%.

The homeowner must meet the following criteria to qualify:
1) The loan must be owned by Fannie Mae or Freddie Mac
2) It must be the borrower's primary residence. (They must still live in the property)
3) The loan to value must be greater than 90%
4) The homeowner must be at least 3 months behind on their mortgage loan
5) The borrower has NOT filed for bankruptcy
6) The borrower must have income reliable and verifiable income

Citigroup has issued a moratorium on foreclosures for owner occupied properties where borrowers have verifiable incomes who have a good chance at making the lower payments. Unlike Hope for Homeowners, which is voluntary for lenders, but typically requires a write down in exchange of a shared appreciation
mortgage, the Fannie and Freddie plan simply adjusts the rate and the repayment term, but does not force a write down.