FAMB Government Affairs Update
March 16, 2007

 

The 2007 Regular Session of the Florida Legislature began and the Florida Association of Mortgage Brokers is at the center of negotiations on key issues for residential and commercial brokers and lenders in Florida.  Reducing the tax burden we are facing on our properties is the central issue of the legislative session.  House Republicans are proposing a radical shift that would repeal the property tax on all homestead property and replace it with an increase in the state sales tax. The governor has called for doubling the homestead exemption to $50,000, capping commercial property-tax increases at 3 percent a year, and allowing people to take their tax savings from one home to another one in Florida. We will be on the sidelines of this fight and will keep you posted as the issue evolves.  We are convinced that you will see meaningful property tax relief on both your home and your business this year!

Legislative Review
 
The Government Affairs Committee continues to follow other issues in the state legislature which affect the mortgage brokerage community.  Some of the issues are:

* Real Estate Fraud - SB 352 Margolis, SB 240 Bullard, HB 349 Gelber.
The Florida Association of Mortgage Brokers supports all anti-fraud legislation; however the current version of these bills contains ambiguous language, which if passed as written will likely cause providers of credit to cease offering certain types of loan programs within Florida.  These loan programs are vital to maintaining the local housing market and provide the consumer with options. We encourage redrafting the legislation to include provisions which protect existing loan programs.

* A Revision of FS 494 - SB 1824 Fasano, HB 1125 Richter.
The Florida Association of Mortgage Brokers has worked closely with the Office of Financial Regulation to draft revisions to FS 494 to provide additional protections to the consumer as well as require more stringent requirements regarding initial licensure and continuing education. The Florida Association of Mortgage Brokers is reviewing these proposed bills as they continue to be revised.

* Mortgage Broker and Lender License Exemptions – HB1355 & SB2526
The Florida Association of Mortgage Brokers supports licensure of all mortgage brokers, originators, or any individual by whatever title that provides loan information to the public. The proposed legislation will set a dangerous precedent. If passed, this legislation will allow an individual or entity to become exempt from FL Statute 494 simply by posting a 5 million dollar bond. We see this as simply buying an exemption and feel it is contradictory to the objectives set forth in Chapter 494 and the regulatory objectives of the Office of Financial Regulation and the Florida Association of Mortgage Brokers. Other products offered, such as insurance, securities, and real estate sales to name a few, require a license from the State of Florida in order to sell them. We feel originating mortgages should also require licensure and buying an exemption is NOT acceptable.

FAMB's website -www.famb.org - will continue to be the place for constant updates throughout the 60-day session.  We encourage you and your colleagues to watch for updates including potential calls-to-action throughout this legislative period.  When we call, we'll need you to respond ASAP.  A short session means our issues change at a lightning speed and our greatest strength is your ability to flood the legislature with your opinion when needed.