A high-level overview of residential lending in Florida

Lenders in Florida, like most states, typically follow national lending standards when underwriting residential mortgage loans. These standards are set by entities such as Fannie Mae and Freddie Mac, which are government-sponsored enterprises (GSEs) that purchase mortgages from lenders and package them into securities that are sold to investors. The GSEs have specific guidelines that lenders must follow when underwriting mortgages, including guidelines related to income, credit history, and debt-to-income ratios. These guidelines are designed to ensure that borrowers are able to repay their loans and that the mortgages purchased by the GSEs are of high quality. Lenders that plan to keep loans in their portfolio often develop their underwriting and loan policies using the national standards as a guide map. 

However, there are also state-specific regulations that lenders must follow when underwriting mortgages in Florida. For example, the Florida Office of Financial Regulation (OFR) has specific licensing requirements for mortgage lenders and servicers operating in the state. In addition, the OFR has the authority to enforce state and federal laws related to mortgage lending, including laws related to predatory lending practices.

In addition to state-specific regulations, lenders operating in Florida must also comply with federal laws and regulations related to mortgage lending. These include laws and regulations related to the Truth in Lending Act (TILA), the Real Estate Settlement Procedures Act (RESPA), and the Fair Housing Act (FHA). These laws and regulations are designed to protect borrowers from deceptive or discriminatory lending practices and to ensure that they are provided with accurate and complete information about the terms and costs of their loans.

There are also additional guidelines to follow, such as the Basel III agreement which is an international regulatory standard on bank capital adequacy, stress testing and market liquidity risk. Basel III agreement is the most recent set of guidelines, and it was developed to strengthen the regulation, supervision and risk management of the banking sector.

Despite the fact that lenders in Florida follow national lending standards, there may be some differences in the way loans are underwritten in the state due to the unique characteristics of the Florida housing market. For example, Florida has a large number of properties that are used as second homes or vacation homes. As a result, lenders may place greater emphasis on the rental income potential of these properties when underwriting loans.

Another unique aspect of the Florida housing market is the large number of properties that are located in flood-prone areas. Lenders are required to obtain flood insurance for properties located in these areas, and they may also take into account the potential for flood damage when underwriting loans.

In addition, Florida has a large number of condos and HOA's. Lenders should review the condos/HOA's financial condition, budget, reserves and insurance coverage before approving a loan.
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In conclusion, lenders in Florida underwrite residential mortgage loans to both Florida standards and national lending standards. The national standards are set by entities such as Fannie Mae and Freddie Mac, while the state-specific regulations are set by the Florida Office of Financial Regulation. Lenders must also comply with federal laws and regulations related to mortgage lending, including the Truth in Lending Act, the Real Estate Settlement Procedures Act and the Fair Housing Act. Despite these requirements, there may be some differences in the way loans are underwritten in Florida because of the unique characteristics of the Florida housing market.