Florida Enacts Bill Permitting Loan Originators to Work from Remote Locations

Florida recently enacted House Bill 1185, which authorizes licensees under the Florida Mortgage Lenders, Mortgage Brokers, and Loan Originators Act to allow loan originators to work from remote locations if certain conditions are met, and specifies that mortgage lenders generally may transact business from branch offices and remote locations.  The addition of remote location to the statute codifies the practice of the Florida Office of Financial Regulations practice to allow work from a location other than a licensed location and clarifies the requirements when doing so. The provisions in the bill are effective on varying dates between July 1, 2023, and January 1, 2024.

The bill defines a remote location as a “location, other than a principal place of business or a branch office, at which a loan originator of a licensee may conduct business.”  A licensee may allow loan originators to work from remote locations if the following requirements are met: (i) the licensee has written policies and procedures for supervision of loan originators working from remote locations; (ii) access to company platforms and customer information is in accordance with the licensee’s comprehensive written information security plan; (iii) an in-person customer interaction does not occur at a loan originator’s residence unless such residence is a licensed location; (iv) physical records are not maintained at a remote location; (v) customer interactions and conversations about customers comply with applicable federal and state information security requirements such as GLBA; (vi) a loan originator working at a remote location accesses the company’s secure systems or documents through a virtual private network or system that ensures secure connectivity and meets other requirements; (vii) the licensee ensures that appropriate security updates, patches, or other alterations to the security of all devices used at remote locations are installed and maintained; (viii) the licensee is able to remotely lock or erase company-related contents of any device or otherwise remotely limit access to a company’s secure systems; and (ix) the registry’s record of a loan originator who works from a remote location designates the principal place of business as the loan originator’s registered location, or the loan originator has elected a licensed branch office as a registered location. The definition of “branch office” was also revised under the bill to mean “a location, other than a mortgage broker’s or mortgage lender’s principal place of business or remote location.”

Remote work legislation has been passed or introduced in several states recently, including Virginia, Montana, and California.