Senate Bill sb0240
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Florida Senate - 2007 SB 240
By Senator Bullard
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1 A bill to be entitled
2 An act relating to offenses involving
3 residential mortgages; providing legislative
4 findings; describing the offense of residential
5 mortgage fraud and providing penalties therefor
6 and enhanced penalties when there is a pattern
7 of residential mortgage fraud; defining terms;
8 describing venue for such offenses; providing
9 an effective date.
10
11 Be It Enacted by the Legislature of the State of Florida:
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13 Section 1. Short title.--This act may be cited as the
14 "Florida Residential Mortgage Fraud Act."
15 Section 2. Legislative findings.--The Legislature
16 finds and declares that fraud involving residential mortgages
17 is at an all-time high in the United States and in this state.
18 Mortgage lending institutions and borrowers have suffered
19 hundreds of millions of dollars in losses due to residential
20 mortgage fraud. Fraudulently inflated property values have
21 resulted in substantial increases in property taxes and have
22 threatened the viability of many communities. The Legislature
23 therefore concludes that, for the protection of the public and
24 particularly for the protection of borrowers, homeowners,
25 lending institutions, and the integrity of the mortgage
26 lending process, the Florida Residential Mortgage Fraud Act
27 must be enacted.
28 Section 3. Residential mortgage fraud; prohibition,
29 definitions, and penalties.--
30 (1) DEFINITIONS.--As used in this section, the term:
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Florida Senate - 2007 SB 240
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1 (a) "Mortgage lending process" means the process
2 through which a person seeks or obtains a residential mortgage
3 loan, including, but not limited to: solicitation,
4 application, origination, negotiation of terms, third-party
5 provider services, underwriting, signing and closing, and
6 funding of the loan. Documents involved in the process
7 include, but are not limited to: uniform residential loan
8 applications or other loan applications; appraisal reports;
9 HUD-1 settlement statements as well as supporting personal
10 documentation for loan applications, such as W-2 forms,
11 verifications of income and employment, bank statements, tax
12 returns, credit reports, and payroll stubs; and any required
13 disclosures.
14 (b) "Pattern of residential mortgage fraud" means one
15 or more misstatements, misrepresentations, or omissions made
16 during the mortgage lending process which involve two or more
17 residential properties and which have the same or similar
18 intents, results, accomplices, victims, or methods of
19 commission or otherwise are interrelated by distinguishing
20 characteristics.
21 (c) "Person" has the same meaning as in s. 1.01,
22 Florida Statutes.
23 (d) "Residential mortgage loan" means a loan or
24 agreement to extend credit made to a person, which loan is
25 secured by a deed to secure debt, security deed, mortgage,
26 security interest, deed of trust, or other document
27 representing a security interest or lien upon any interest in
28 one-family to four-family residential property located in this
29 state. The term includes the renewal or refinancing of any
30 such loan.
31 (2) RESIDENTIAL MORTGAGE FRAUD.--
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Florida Senate - 2007 SB 240
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1 (a) The offense of residential mortgage fraud is
2 committed when a person:
3 1. Knowingly makes any deliberate misstatement,
4 misrepresentation, or omission during the mortgage lending
5 process with the intention that it be relied upon by a
6 mortgage lender, borrower, or any other party to that process;
7 2. Knowingly uses or facilitates the use of any
8 deliberate misstatement, misrepresentation, or omission during
9 the mortgage lending process with the intention that it be
10 relied upon by a mortgage lender, borrower, or any other party
11 to that process;
12 3. Receives any proceeds or any other funds in
13 connection with a residential mortgage closing which such
14 person knew resulted from a violation of subparagraph 1. or
15 subparagraph 2.;
16 4. Conspires to violate any provision of subparagraph
17 1., subparagraph 2., or subparagraph 3.; or
18 5. Files or causes to be filed with the clerk of court
19 as the official registrar of deeds of any county in this state
20 any document involved in the mortgage lending process which
21 that person knows to contain a deliberate misstatement,
22 misrepresentation, or omission.
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24 The offense of residential mortgage fraud may not be
25 predicated solely on information lawfully disclosed under
26 federal disclosure laws, regulations, and interpretations
27 related to the mortgage lending process.
28 (b) A violation of this section may be considered to
29 have been committed:
30 1. In the county in which the residential property for
31 which a mortgage loan is being sought is located;
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Florida Senate - 2007 SB 240
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1 2. In any county in which any act was performed in
2 furtherance of the violation;
3 3. In any county in which any person alleged to have
4 violated this section had control or possession of any
5 proceeds resulting from the violation;
6 4. If a closing occurred, in the county in which the
7 closing occurred; or
8 5. In any county in which a document involved in the
9 mortgage lending process containing a deliberate misstatement,
10 misrepresentation, or omission is filed with the clerk of
11 court as the official registrar of deeds.
12 (3) PENALTIES.--
13 (a) A person who violates this section commits a
14 felony of the third degree, punishable as provided in s.
15 775.082, s. 775.083, or s. 775.084, Florida Statutes.
16 (b) If a violation of this section involves engaging
17 or participating in a pattern of residential mortgage fraud or
18 a conspiracy or endeavor to engage or participate in a pattern
19 of residential mortgage fraud, any person so engaged or so
20 participating commits a felony of the second degree,
21 punishable as provided in s. 775.082, s. 775.083, or s.
22 775.084, Florida Statutes.
23 (c) Each residential property transaction subject to a
24 violation of this section constitutes a separate offense.
25 Section 4. This act shall take effect October 1, 2007.
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28 SENATE SUMMARY
29 Creates the offense of residential mortgage fraud, which
is a third-degree felony unless it is part of a pattern
30 of residential mortgage fraud, which is a second-degree
felony. Prescribes venue of the offense.
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