New Private Lending Bill Being Pushed In Florida

[John Thedford]

http://m.flsenate.gov/session/bill/2018/935/billte...

Looks like the special interests are at it again. The governor shot down the last bill stating it was the most restrictive in the county. This one appears to be so as well. 

[Jeff S.]

In spite of your governor's hyperbole, this bill is hardly the most restrictive in the country, @John Thedford . Have you ever seen what it takes to lend in Nevada?

I'm no fan of government intervention when public safety is not at risk, and especially when many of the protections in this bill are already covered by federal law (predatory lending, etc). It appears however, you could easily turn this into your interest by simply becoming licensed.

By my read of the requirements , these require filling out a simple 10-page form and $825. Certainly, you don't think that's onerous, do you?

Depending upon your point of view, one nice thing about licensing is that its a barrier to entry and will limit your competition. Once licensed you could then rail about unlicensed lenders in FL as you do here about wholesalers in your state.

"As I stated, if they did go through a LMO, the only thing that would change would be the associated costs."

It's not clear that you could "go through a LMO." Nowhere do I see that an LMO can originate loans for others in Florida. This is something you would have to discuss with a knowledgeable lending attorney.

We have a similar license in CA. It's called a California Finance Lenders license (CFL). It allows you to originate your own loans using your own money and only for yourself. You can sell your loans but only under limited circumstances and mainly to other CFL's. A CFL license allows you to advertise, which to me means being able to speak and present about lending at real estate clubs as well as calling ourselves lenders on our business cards and email signatures. Most importantly, CFL's enjoy the coveted exemption from California's usury rules.

No one like government intervention like this, except maybe the banks and other self-interest groups. This appears to be something you could easily turn to your advantage, however.