Private Lenders, Licenses, and Servicing a Portfolio in Florida

Is this an issue? YES. Florida looks at servicing like this.

FLORIDA MORTGAGE LENDER SERVICER LICENSE  Who is required to have this license? This licensing endorsement is required for any mortgage lender licensee who services a loan. 

“Servicing a mortgage loan” means to receive, cause to be received, or transferred for another, installment payments of principal, interest, or other payments pursuant to a mortgage loan. A “servicing endorsement” means authorizing a mortgage lender to service a loan for more than 4 months.

Who does NOT need this license?

  1. A person acting in a fiduciary capacity conferred by the authority of a court. Probably NOT you.

  2. A person who, as a seller of his or her own real property, receives one or more mortgages in a purchase money transaction. So this refers to PERSONAL not held out as a business.

  3. A person who acts solely under contract and as an agent for federal, state, or municipal agencies for the purpose of servicing mortgage loans. Probably NOT you.

  4. A person who makes only non-residential mortgage loans and sells loans only to institutional investors. Here is the key – the legal definition of non-residential.

  5. An individual making or acquiring a mortgage loan using his or her own funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.  If you have a business card, and make more than two or three of these a year, this might be YOU.

  6. An individual selling a mortgage that was made or purchased with that individual’s funds for his or her own investment, and who does not hold himself or herself out to the public as being in the mortgage lending business.  Selling “notes”.  

So now, ask this – What is a non-residential loan?

  • Legally acceptable definition – A loan that is used to purchase nonresidential property such as an office building or a factory.

Now – what is a commercial property?

  • Legally acceptable definition – Property used for retail or trade and not zoned residential.


CONCLUSION – Just because you “call” a 1-4 family a commercial investment, and have affidavits signed regarding NOO and not second or vacation home – that may not be legally sufficient. The RESPA definition and the definitions used above will apply.

So, be warned. On the radar for enforcement this year. If in doubt about your situation, let us hear from you. 

(800) 656-4584 Ext 103.


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