Florida Regulations 69V-40.111: Disciplinary Guidelines
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(1) Pursuant to Florida Statutes § 494.00255, Disciplinary Guidelines for Mortgage Loan Originators and Mortgage Entities, Form OFR-494-14, effective 11/30/2015, available on the Office’s website at www.flofr.gov and available at www.flrules.org/Gateway/reference.asp?No=Ref-06055, are applicable to each ground for disciplinary action that may be imposed by the Office against a person for a violation of Florida Statutes Chapter 494 For purposes of this rule, the order of penalties, ranging from lowest to highest is: notice of noncompliance, reprimand, fine, suspension, and revocation. In determining an appropriate penalty within the range of penalties prescribed in this rule for each citation as based upon the violation, the Office shall consider the circumstances set forth in subsection (3). The third column of the guidelines provides a summary of the statutory violations solely for the purpose of ease of reference. Persons subject to the rule should review the full text of the Florida Statute cited in the second column of the guidelines for the complete description of the violation. For purposes of this rule, the term “”citation”” means any final order docketed by the agency that specifies a violation of Florida Statutes Chapter 494, or any rule promulgated under that chapter.
(2) In accordance with this rule:
(a) Depending on the severity and repetition of specific violations, the Office may impose an administrative fine, suspension of a person, or revocation of a person or any combination thereof;
(b) The Office may impose a cease and desist order, a suspension, or both in conjunction with and in addition to any of the designated sanctions set forth in this rule when appropriate under the circumstances; and,
(c) The Office will consider the person’s disciplinary history for the past 5 years in determining an appropriate penalty and may impose a more severe penalty when the disciplinary history includes past violations.
(3) In accordance with Florida Statutes § 494.00255, the Office shall consider the following circumstances in determining an appropriate penalty within the range of penalties prescribed in this rule for each violation. The Office also shall consider these circumstances when determining whether a deviation from the range of sanctions prescribed in the disciplinary guidelines is warranted:
(a) The following circumstances are considered mitigating factors:
1. If the violation rate is less than 5% when compared to the overall sample size reviewed;
2. No prior administrative actions by the Office against the licensee or control person within the past 10 years;
3. If the licensee detected and voluntarily instituted corrective responses or measures to avoid the recurrence of a violation prior to detection and intervention by the Office;
4. If the violation is attributable to a single control person or employee, and if the licensee removed or otherwise disciplined the individual prior to detection or intervention by the Office;
5. If the licensee is responsive to the Office’s requests or inquiries or made no attempt to impede or delay the Office in its examination or investigation of the underlying misconduct; or
6. Other control, case-specific circumstances.
(b) The following circumstances are considered aggravating factors:
1. If the violation rate is more than 95% when compared to the overall sample size reviewed (sample size must be equal to or greater than 25 transactions and cover a date range of at least 6 months);
2. The potential for harm to the customers or the public is significant;
3. Prior administrative action by the Office against the licensee or an affiliated party of the licensee within the past 5 years;
4. If the licensee’s violation was the result of willful misconduct or recklessness;
5. The licensee attempted to conceal the violation or mislead or deceive the Office; or
6. Other control relevant, case-specific circumstances.
(4) The list of violations cited in this rule is intended to be comprehensive, but the omission of a violation from the list does not preclude the Office from taking any action authorized by Florida Statutes § 494.00255
(5) The ranges for administrative fines imposed by this rule are $1,000 to $3,500 for an “”A”” level fine; $3,500 to $7,500 for a “”B”” level fine; and $7,500 to $10,000 for a “”C”” level fine.
(6) The ranges for suspensions imposed by this rule are 3 to 10 days for an “”A”” level suspension; 10 to 20 days for a “”B”” level suspension; 20 to 30 days for a “”C”” level suspension; and up to 90 days for a “”D”” level suspension. A “”D”” level suspension may be terminated early if licensee cures the violation.
Rulemaking Authority Florida Statutes § 494.0011(2). Law Implemented 494.0016, 494.0025, 494.00255, 494.0026, 494.00331, 494.0035, 494.0036, 494.0038, 494.0039, 494.004, 494.0042, 494.0043, 494.0065, 494.0067, 494.0069, 494.007, 494.0071, 494.00721, 494.0075, 494.0076 FS. History-New 3-20-91, Amended 7-25-96, Formerly 3D-40.111, Amended 11-9-15.
Terms Used In Florida Regulations 69V-40.111
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Statute: A law passed by a legislature.
(a) Depending on the severity and repetition of specific violations, the Office may impose an administrative fine, suspension of a person, or revocation of a person or any combination thereof;
(b) The Office may impose a cease and desist order, a suspension, or both in conjunction with and in addition to any of the designated sanctions set forth in this rule when appropriate under the circumstances; and,
(c) The Office will consider the person’s disciplinary history for the past 5 years in determining an appropriate penalty and may impose a more severe penalty when the disciplinary history includes past violations.
(3) In accordance with Florida Statutes § 494.00255, the Office shall consider the following circumstances in determining an appropriate penalty within the range of penalties prescribed in this rule for each violation. The Office also shall consider these circumstances when determining whether a deviation from the range of sanctions prescribed in the disciplinary guidelines is warranted:
(a) The following circumstances are considered mitigating factors:
1. If the violation rate is less than 5% when compared to the overall sample size reviewed;
2. No prior administrative actions by the Office against the licensee or control person within the past 10 years;
3. If the licensee detected and voluntarily instituted corrective responses or measures to avoid the recurrence of a violation prior to detection and intervention by the Office;
4. If the violation is attributable to a single control person or employee, and if the licensee removed or otherwise disciplined the individual prior to detection or intervention by the Office;
5. If the licensee is responsive to the Office’s requests or inquiries or made no attempt to impede or delay the Office in its examination or investigation of the underlying misconduct; or
6. Other control, case-specific circumstances.
(b) The following circumstances are considered aggravating factors:
1. If the violation rate is more than 95% when compared to the overall sample size reviewed (sample size must be equal to or greater than 25 transactions and cover a date range of at least 6 months);
2. The potential for harm to the customers or the public is significant;
3. Prior administrative action by the Office against the licensee or an affiliated party of the licensee within the past 5 years;
4. If the licensee’s violation was the result of willful misconduct or recklessness;
5. The licensee attempted to conceal the violation or mislead or deceive the Office; or
6. Other control relevant, case-specific circumstances.
(4) The list of violations cited in this rule is intended to be comprehensive, but the omission of a violation from the list does not preclude the Office from taking any action authorized by Florida Statutes § 494.00255
(5) The ranges for administrative fines imposed by this rule are $1,000 to $3,500 for an “”A”” level fine; $3,500 to $7,500 for a “”B”” level fine; and $7,500 to $10,000 for a “”C”” level fine.
(6) The ranges for suspensions imposed by this rule are 3 to 10 days for an “”A”” level suspension; 10 to 20 days for a “”B”” level suspension; 20 to 30 days for a “”C”” level suspension; and up to 90 days for a “”D”” level suspension. A “”D”” level suspension may be terminated early if licensee cures the violation.
Rulemaking Authority Florida Statutes § 494.0011(2). Law Implemented 494.0016, 494.0025, 494.00255, 494.0026, 494.00331, 494.0035, 494.0036, 494.0038, 494.0039, 494.004, 494.0042, 494.0043, 494.0065, 494.0067, 494.0069, 494.007, 494.0071, 494.00721, 494.0075, 494.0076 FS. History-New 3-20-91, Amended 7-25-96, Formerly 3D-40.111, Amended 11-9-15.