Florida legislators have introduced the same mortgage licensing language from Senate Bill 1632 into an affordable housing bill, SB 1730. Senator Taddeo, SB 1632’s bill sponsor, requested a temporary postponement of SB 1632 due the presence of the same language in SB 1730.
Senator Taddeo made the postponement request during the Senate Committee on Banking and Insurance’s Monday review of SB 1632, after Nema Daghbandan’s speech opposing the bill on behalf of the American Association of Private Lenders (AAPL). Nema is a Partner at Geraci Law Firm and AAPL’s General Counsel.
“The committee was very sympathetic to our arguments,” said Daghbandan. “We were able to make them understand the anti-competitive nature of the bill and the effects it would have on capital deployment to non-consumer borrowers and distressed Florida properties. The postponement request was made when it became clear we were swinging the committee’s opinion on the bill back to the status quo.”
While SB 1632’s postponement is a win, private lenders now need to turn their opposition toward the amendment to SB 1730. The amendment to the bill – which our sources say was made at Senator Taddeo’s request – removes the same mortgage lender licensing exemption for business-purpose mortgage loans. This exemption allows private lenders to originate loans secured by residential property without a mortgage lender license, so long as the loan is not primarily for personal, family or household use. Full SB 1730 amendment text here, see line 423.
What you can do about SB 1730
Your action on SB 1632 was crucial to its postponement. For SB 1730,
1. Call and email the Senators on the Committee on Infrastructure and Security before 10 a.m. Tuesday, April 9, when the committee votes on SB 1730.
SB 1730 is a broad bill which primarily addresses affordable housing in the state of Florida. AAPL does not have any comment to the bill other than the amendment requiring business purpose lenders to obtain a mortgage lender license.
Tell them the effect this bill will have on your business and your business-purpose borrowers.
- Will you have to stop or curtail lending in Florida?
- How much money do you lend, and what kinds of projects are you financing?
During AAPL’s opposition of SB 1632, Florida Senators were very concerned when they learned about the impacts the bill would have on private lenders’ businesses, their business-purpose borrowers and the distressed properties they were helping get back on the market for traditional purchase. AAPL hopes to affect the same influence on the SB 1730 amendment.
Committee on Infrastructure and Security:
Chair and SB 1730’s Sponsor: Senator Tom Lee (R)
Vice Chair: Senator Keith Perry (R)
Senator Aaron Bean (R)
Senator Janet Cruz (D)
Senator Ed Hooper (R)
Senator Travis Hutson (R)
Senator Linda Stewart (D)
Senator Annette Taddeo (D)
For emailed letters, choose “Jobs and the Economy” as the topic. Although non-form, personalized letters are better, you may copy and paste the following language into the “Your Comment or Question” box and fill in the blanks.
Dear Senator __________,
Thank you for your contributions and political leadership in our community and the state of Florida. My name is _____, and I transact business in Florida as _____. It has come to my attention that an amendment to proposed legislation, Florida Senate Bill 1730, poses great risks to the people, businesses, and economy of Florida. I strongly urge you to vote against Senate Bill 1730.
Specifically, this bill would devastate Florida’s private lending industry. Senate Bill 1730 would eliminate the long-standing “business-purpose” licensing exception, an exception many private lenders transact business under. Around 40 states recognize this useful exception. To change the norm in Florida would make the state unduly restrictive and encourage borrowers and lenders to make transactions elsewhere. This bill will personally affect myself and my business, as a member of the private lending community. To date, I have made around ______ loans in the state of Florida. This totaled to approximately _____ dollars. Should this legislation pass, I will be unable to operate in your state.
Senate Bill 1730 has potential grievous effects on the economy, as it would drive out lenders who have made loans in the state for many years. Further, borrowers will have less options for capital, hurting Florida property owners seeking a competitive mortgage loan market. For the reasons stated above, I urge you to vote against Senate Bill 1730
Thank you for your consideration.
2. Attend the Committee on Infrastructure and Security’s meeting at 10 a.m., April 9.
Location: Toni Jennings Committee Room, 110 Senate Building
Address: 404 S. Monroe, Tallahassee, FL 32399
- Fill and bring an Appearance Record (the Committee also has them available as you walk in).
- Arrive at the meeting shortly before 10 a.m.
- Give the Appearance Record to Committee Staff.
- The Committee Chair may call the bill for review at any time during the meeting.
- You will be called to speak for 1-3 minutes during the bill’s review period. (You may also show your opposition to the bill WITHOUT speaking by filling in the “Waive Speaking: Against” section of the Appearance Record Form).
- If you wish, you may leave after the bill is reviewed.