Kat's Blog

Tougher requirements for mortgage brokers might help Florida rid itself of unscrupulous loan originators.

License renewals have dropped more than 60 percent from the year before as stricter requirements take effect. The new requirements in place since fall include state and federal criminal checks, a national test and submitting a credit report for regulator review.

Of the nearly 43,000 mortgage brokers licensed in Florida at the end of last year, only 15,219 had applied for renewal with the state Office of Financial Regulation by early February. No applications have been denied yet in Florida.

The state attributed the drop in renewals to the bad economy and the new licensing requirements. The tougher standards could strengthen an industry criticized nationally in recent years for fueling the housing crisis by awarding loans to unqualified buyers, mortgage professionals said.

Read more at the St. Petersburg Times.