Florida Regulations 69V-40.0113: Demonstrating Character, General Fitness, and Financial Responsibility
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(1) Definitions. As used in this rule, the term:
(a) “”Adverse credit history information”” means the following:
1. Personal bankruptcy within the previous year.
2. Bankruptcy within the previous year of any organization based on events that occurred while the relevant person was a control person.
3. Outstanding tax lien or other governmental lien.
4. Outstanding judgment based upon grounds of fraud, embezzlement, misrepresentation, or deceit.
5. Open collection account or charged-off account that remains unpaid, except accounts related solely to unpaid medical expenses.
6. Foreclosure on personally owned property within the last 5 years.
(b) “”Charged-off”” means an account that has been identified by the creditor as an uncollectable debt.
(c) “”Relevant person”” means each loan originator applicant and each control person of a mortgage broker and mortgage lender license applicant. If the mortgage broker or mortgage lender license applicant is a natural person, he or she is a relevant person under this rule.
(2) Adverse Credit History Information. If a relevant person’s credit report or responses to the license application contains adverse credit history information, the Office will notify the applicant in writing of the specific items constituting adverse credit history information. The notification will also inform the applicant of the:
(a) Opportunity to explain the circumstances surrounding the specific items and provide any other relevant information that the applicant wishes the Office to consider surrounding the specific items;
(b) Documents that the Office requires in order to complete its review of the specific items. The requested documents provided by the applicant must be legible. Documents that are typically requested by the Office include, but are not limited to:
1. Copies of satisfaction of judgment.
2. Copies of satisfaction of outstanding tax liens or other governmental liens.
3. Copies of court documents that reflect the substance of the matter and how the matter was resolved or adjudicated.
4. Copies of account statements or letters from the creditors explaining the current status of accounts. For security purposes, the relevant person may redact all but the last four (4) digits of the account number prior to submitting the document to the Office.
5. Copies of tax returns, pay stubs, or other documentation of income.
If the documents requested above cannot be obtained, the relevant person shall submit evidence of that fact in order for the license application to be deemed complete. Evidence that documents cannot be obtained shall consist of a written statement from the agency’s or creditor’s records custodian that is written on the agency’s or creditor’s letterhead; indicates that the agency or the creditor does not have any record of such matter or that the record was lost, damaged, or destroyed, or cannot otherwise be produced and provide a statement as to why the record cannot be produced; and is signed by the agency’s or creditor’s records custodian.
(3) Procedure for Reviewing Adverse Credit History Information.
(a) When deciding whether to approve an application for licensure as a loan originator, mortgage broker, or mortgage lender, the Office must make a determination regarding whether the relevant person has demonstrated that he or she possesses the character, general fitness, and financial responsibility to warrant the Office’s determination that the relevant person will operate honestly, fairly, and efficiently. In making this determination, the Office will consider the following information:
1. The relevant person’s entire credit history as reflected in the credit report.
2. The information provided by the relevant person under subsection (2).
3. The responses contained in the license application.
4. The previous licensing history with the Office including whether the relevant person was named in any regulatory action by the Office.
5. Other information that reflects upon an applicant’s character, general fitness, or financial responsibility.
6. The time and context of the information available and any pattern of behavior the information may demonstrate.
(b) Based on the totality of the circumstances as developed under paragraph (a), the Office will make a determination as to whether the relevant person has demonstrated that he or she possesses the character, general fitness, and financial responsibility to warrant the Office’s determination that the relevant person will operate honestly, fairly, and efficiently. In considering the totality of the circumstances, the fact that an applicant has been a debtor in a bankruptcy or been the control person of a bankrupt organization shall not be the sole basis of the Office’s determination to deny the issuance of a license.
Rulemaking Authority 494.0011(2)(b) FS. Law Implemented 494.00312, 494.00313, 494.00321, 494.00322, 494.00611, 494.00612 FS. History-New 10-1-10.
Terms Used In Florida Regulations 69V-40.0113
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
1. Personal bankruptcy within the previous year.
2. Bankruptcy within the previous year of any organization based on events that occurred while the relevant person was a control person.
3. Outstanding tax lien or other governmental lien.
4. Outstanding judgment based upon grounds of fraud, embezzlement, misrepresentation, or deceit.
5. Open collection account or charged-off account that remains unpaid, except accounts related solely to unpaid medical expenses.
6. Foreclosure on personally owned property within the last 5 years.
(b) “”Charged-off”” means an account that has been identified by the creditor as an uncollectable debt.
(c) “”Relevant person”” means each loan originator applicant and each control person of a mortgage broker and mortgage lender license applicant. If the mortgage broker or mortgage lender license applicant is a natural person, he or she is a relevant person under this rule.
(2) Adverse Credit History Information. If a relevant person’s credit report or responses to the license application contains adverse credit history information, the Office will notify the applicant in writing of the specific items constituting adverse credit history information. The notification will also inform the applicant of the:
(a) Opportunity to explain the circumstances surrounding the specific items and provide any other relevant information that the applicant wishes the Office to consider surrounding the specific items;
(b) Documents that the Office requires in order to complete its review of the specific items. The requested documents provided by the applicant must be legible. Documents that are typically requested by the Office include, but are not limited to:
1. Copies of satisfaction of judgment.
2. Copies of satisfaction of outstanding tax liens or other governmental liens.
3. Copies of court documents that reflect the substance of the matter and how the matter was resolved or adjudicated.
4. Copies of account statements or letters from the creditors explaining the current status of accounts. For security purposes, the relevant person may redact all but the last four (4) digits of the account number prior to submitting the document to the Office.
5. Copies of tax returns, pay stubs, or other documentation of income.
If the documents requested above cannot be obtained, the relevant person shall submit evidence of that fact in order for the license application to be deemed complete. Evidence that documents cannot be obtained shall consist of a written statement from the agency’s or creditor’s records custodian that is written on the agency’s or creditor’s letterhead; indicates that the agency or the creditor does not have any record of such matter or that the record was lost, damaged, or destroyed, or cannot otherwise be produced and provide a statement as to why the record cannot be produced; and is signed by the agency’s or creditor’s records custodian.
(3) Procedure for Reviewing Adverse Credit History Information.
(a) When deciding whether to approve an application for licensure as a loan originator, mortgage broker, or mortgage lender, the Office must make a determination regarding whether the relevant person has demonstrated that he or she possesses the character, general fitness, and financial responsibility to warrant the Office’s determination that the relevant person will operate honestly, fairly, and efficiently. In making this determination, the Office will consider the following information:
1. The relevant person’s entire credit history as reflected in the credit report.
2. The information provided by the relevant person under subsection (2).
3. The responses contained in the license application.
4. The previous licensing history with the Office including whether the relevant person was named in any regulatory action by the Office.
5. Other information that reflects upon an applicant’s character, general fitness, or financial responsibility.
6. The time and context of the information available and any pattern of behavior the information may demonstrate.
(b) Based on the totality of the circumstances as developed under paragraph (a), the Office will make a determination as to whether the relevant person has demonstrated that he or she possesses the character, general fitness, and financial responsibility to warrant the Office’s determination that the relevant person will operate honestly, fairly, and efficiently. In considering the totality of the circumstances, the fact that an applicant has been a debtor in a bankruptcy or been the control person of a bankrupt organization shall not be the sole basis of the Office’s determination to deny the issuance of a license.
Rulemaking Authority 494.0011(2)(b) FS. Law Implemented 494.00312, 494.00313, 494.00321, 494.00322, 494.00611, 494.00612 FS. History-New 10-1-10.