How to Open a Loan Modification Company in Miami, Florida
You won't have much trouble finding demand for loan modification services in Miami, Florida. Miami and its Dade County environs were among the hottest real estate markets in the country during the real estate boom of the 2000s and among the hardest hit by the bust. Real estate prices in the Miami area fell by more than 50 percent from their peak, leaving hundreds of thousands of property owners severely upside down on their mortgages, just as employment took a southward turn. The hard part won't be finding people who want their payments lowered -- the hard part will be in finding people who can qualify for the modification.
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Instructions
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Get a Florida mortgage broker license. To do so, contact the Florida Office of Financial Regulation, which regulates the finance and mortgage industry in the State of Florida. You will need to take a course, either in person or online, and take a test, as well as pay a fee for the license. You cannot solicit or make recommendations for mortgages or modifications without a license. You can get a license by filling out Form MU1 and returning the completed form to the Florida Office of Financial Regulation. For more information, contact the Department's licensing bureau at 850-410-9895.
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Obtain errors and omissions insurance. There is a lot of money at stake in the mortgage business. Errors and omissions coverage, or E&O insurance, helps defend you in the event you get sued as a result of your activities in the mortgage industr, and helps protect you against any findings of liability. You will need to speak to a licensed E&O agent in Florida about getting coverage for your firm and all your employees.
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Obtain a local business tax receipt from Miami-Dade County officials. Miami-Dade is the county that includes Miami and its immediate environs. This registers you with the county tax collector and is good for one year, from October 1 through September 30. You must renew your business tax receipt each year. If you are in the City of Miami proper, you will need to get another license from the City of Miami. Otherwise, you must get a tax receipt from the city in which you set up shop. If you are in an unincorporated area of Dade County, you need to file a Statement of Occupancy. You must present your state professional license, such as your mortgage brokers' license, when you apply.
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Obtain a solicitor's license. If you plan to solicit homeowners directly in their homes without a prior appointment, you must obtain a solicitor's license from the city. You can obtain one by visiting the City of Miami at Clerk of Courts, 111 NW 1 Street, Floor 17, Suite 202, or calling the city at 305-375-5126. Without a solicitor's license, you will have to cold call, or take out expensive advertisements, which requires significant capital. Other possible prospecting methods involve direct mail or networking through your friends and associates.
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Form a corporation or limited liability company. This means file articles of incorporation or organization with the Florida Office of the Secretary of State. There is a nominal fee to do this. You will need to register the name of your company. However, Florida regulations prohibit mortgage companies from including the word "federal" "United States" or "national" in their company names.
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Tips & Warnings
Be sure to get the right kind of mortgage license. There are several available from the Department of Financial Regulation. As of October 1, 2010, new businesses must obtain the license called "mortgage broker (company)." You need to get a license for each branch you open as well.
