OFR Commissioner implores Floridians to only use licensed brokers
and to never pay an up-front fee
CONTACT: Holly Hinson
PHONE NUMBER: (850) 410-9709
TALLAHASSEE, FL – As of midnight, December 31, 2009, any individual or company who provides loan modification services (such as refinancing, adjusting interest rates or any other such services) must have an active license from the Florida Office of Financial Regulation (OFR).
“These new laws will help consumers who are in need of loan modifications, and protect them from financial fraud during these difficult economic times,” said OFR Commissioner Tom Cardwell. “Our goal, along with the many other fine organizations who helped pass this legislation, is to ensure Floridians only pay for loan modification services that are a true benefit; not an unrealistic promise to solve their financial problems” added Cardwell.
Cardwell specifically cautioned citizens against paying any up-front fees whatsoever for loan modifications, as that is completely illegal. “If your broker asks for any money up front, simply turn and walk away,” Cardwell said.
During the 2009 legislative session, the state legislature modified the Florida Mortgage Brokerage and Lending Act. This change, signed into law by Governor Crist on June 29, 2009 states that after December 31, 2009, individuals and companies may not provide loan modification services without an active license. The new law further enhances the Foreclosure Rescue Fraud Prevention Act, which prohibits individuals and businesses from collecting up-front fees for loan modification services related to foreclosures. The law was one of the Financial Services Commission's priorities to protect Florida’s consumers, and as a result, Attorney General McCollum's office has filed 17 civil lawsuits on behalf of Florida homeowners.
“The Florida Association of Mortgage Brokers is pleased that the state of Florida has passed measures to ensure additional consumer protection specifically with regards to loan modifications. An individual's home is their greatest asset and the implementation of appropriate loan modification guidelines in our state's lending laws is a step in the right direction,” said Valerie J. Saunders, President of Florida Association of Mortgage Brokers (FAMB).
Any person or entity that continues to engage in loan modifications in this state without an active license is guilty of a felony of the third degree. This is punishable by a prison term of up to five years and a fine not to exceed $5000.
To apply for a license, visit OFR’s web site at
http://www.flofr.com/real/. Should you have any questions regarding the application process, please call the Regulatory Review Section at (850) 410-9895.
As always, OFR stands ready to assist companies and individuals with compliance under this new statute.
The Office of Financial Regulation reminds consumers to verify that they are working with a licensed loan modifier by calling our consumer helpline 1-800-848-3792.
About the Florida Office of Financial Regulation
The Office of Financial Regulation (Office) is dedicated to safeguarding the private financial interests of the public by licensing, chartering, examining and regulating depository and non-depository financial institutions and financial service companies in the State of Florida. The Office strives to protect consumers from financial fraud, while preserving the integrity of Florida’s markets and financial service industries. Please visit our website at www.flofr.com or call us toll free at 800-848-3792 or directly at 850-410-9898.
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