AAPL urges Florida legislators to consider the negative unintended consequences of the proposed legislation. We believe it may end up hurting the very constituents and economy they are trying to protect.
KANSAS CITY, Mo. February 03, 2018
The Florida legislature kicked off its legislative session by introducing Florida Senate Bill 894 and House Bill 935, legislation that could cover private mortgage lenders. The bills, introduced by Sen. Rene Garcia (R-Miami) and Rep. Jeanette Nunes (R-Miami), would eliminate a longstanding business purpose exemption for loans secured by a Dwelling.
On January 18, the bill passed the House Insurance and Banking Subcommittee with a 13-1 vote. On January 24, the House Commerce Committee passed the bill on a unanimous vote. The Senate similarly passed the bill on a unanimous vote in the Senate Banking and Insurance committee on January 23. The bills are expected to move through the Florida legislature and has strong bipartisan support.
American Association of Private Lendersâ€™ (AAPL) position is that the proposed regulation would harm Florida residents, business and the stateâ€™s economic growth by consolidating power to a few licensed parties. Private lenders provide much needed capital to a marketplace which is underserved by large financial institutions. Professional business parties need to be able to work with each other without significant regulatory intervention. The proposed regulation would result in less market competition, translating to higher interest rates, a higher cost of credit and would force business out of Florida and into neighboring states including Alabama, Georgia, Tennessee, North and South Carolina, all of which exempt business purpose loans from licensing requirements.
â€œAAPL urges Florida legislators to consider the negative unintended consequences of the proposed legislation. We believe it may end up hurting the very constituents and economy they are trying to protect,â€� said Linda Hyde, AAPLâ€™s executive director.
More information about AAPLâ€™s response to the proposed Florida legislation effecting the mortgage lending industry can be found at http://www.aaplonline.com.
American Association of Private Lenders (AAPL) is the national organization representing the private real estate and peer-to-peer lending industry. Its three core principles â€“ Excellence, Ethics & Education â€“ provide a foundation for the next generation of real estate capital: private lending. AAPL serves as a catalyst for industry growth by fostering awareness, promoting best practices and encouraging a standardized code of ethics for its membership. AAPL is a part of Affinity Worldwide, a constellation of companies created to empower and support investors in the residential real estate industry. More information can be found at http://www.aaplonline.com and http://www.affinityworldwide.com.
For additional comments or questions please call or email
Laura Chalk, PR Manager
816-398-4111 x 86172
Chrissey Breault, Director of Marketing and Member Services
American Association of Private Lenders