How a Mortgage Broker’s License Can Get Suspended
Most people rely on mortgage brokers to buy houses. While most of those in the mortgage industry are trustworthy individuals, some violate the laws by charging unnecessary fees or engaging in fraud. This is against the law and can lead to license suspension and revocation and even legal consequences.
Therefore, if you are a mortgage broker, it is imperative that you do what you can to keep your license. By acting in an ethical manner at all times—even when you’re not at work—you can protect your license and your livelihood. Here are some actions that can lead to license suspension. Prevent these so you can stay in business for as long as you please.
Violating Rules and Regulations
The laws you must follow as a mortgage broker may vary from state to state. However, each state has common regulations that must be followed. For example, brokers must ensure that their fees are paid to the state on time. They must also meet continuing education requirements, which often involve online courses. In Florida, mortgage loan originators must take eight hours of continuing education per year.
There are other requirements, such as mortgage activity reports due to the state and written agreements that must be in place with clients. Mortgage brokers and loan originators must also disburse funds as required. Legal issues, such as being convicted of a misdemeanor or felony involving fraud or misrepresentation, can also lead to license loss.
Failure to Maintain a Surety Bond
Besides a license, mortgage brokers must also have a surety bond. This is one of the main licensing requirements, so it is very important to keep the bond active. A bond protects you and your clients. If there are ever any issues, your clients can file a bond claim and seek reimbursement for damages, so you won’t have to pay anything directly. When you renew your license, you may need to renew your bond as well. If it ever goes inactive, your license can be suspended.
Not Paying Obligations
Even if you’re ethical toward your clients, you can still lose your license based on personal issues. For example, if you owe child support, your license may be suspended until you’ve paid up. In some cases, driver’s license and registration issues can also affect a professional license. Therefore, it is important to stay current on all your debts and obligations. By paying them on time, you can avoid the risk of losing your license. When you do pay a bill, keep a receipt as proof, just in case.
Keep Your License With Help From a Tampa Mortgage Lenders Licensing Lawyer
As a mortgage broker, you need a valid license to perform transactions. If you get your license suspended or revoked altogether, earning a living can be extremely difficult.
Hang onto your professional license with help from Tampa mortgage lenders licensing lawyer David P. Rankin. He was chosen to represent the Greater Tampa Realtors for over 16 years. He can assist you with any administrative issues you may face. He has helped many people in your situation. To schedule a consultation, fill out the online form or call (813) 968-6633.