| 1 | A bill to be entitled |
| 2 | An act relating to residential foreclosure |
| 3 | proceedings; providing a short title; creating s. |
| 4 | 501.1379, F.S.; defining terms; prohibiting certain |
| 5 | acts by mortgage collection firms; providing that |
| 6 | violations are deceptive and unfair trade practices; |
| 7 | providing penalties and remedies; providing for the |
| 8 | award of attorney's fees and costs under certain |
| 9 | circumstances; providing an effective date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. This act may be cited as the "Florida Mortgage |
| 14 | Collection Fairness Act." |
| 15 | Section 2. Section 501.1379, Florida Statutes, is created |
| 16 | to read: |
| 17 | 501.1379 Mortgage collection firms; prohibited practices; |
| 18 | penalties and remedies.- |
| 19 | (1) As used in this section, the term: |
| 20 | (a) "Mortgage collection firm" means: |
| 21 | 1. An attorney or law firm engaged to represent a party |
| 22 | filing a residential mortgage foreclosure action; or |
| 23 | 2. A person engaged in debt collection services for a |
| 24 | residential mortgage loan. |
| 25 | (b) "Mortgage modification agreement" means a written |
| 26 | agreement to modify the interest rate or other terms of a |
| 27 | residential mortgage to avoid default of the mortgage or |
| 28 | foreclosure proceedings. |
| 29 | (2) A mortgage collection firm may not: |
| 30 | (a) Offer evidence in a residential mortgage foreclosure |
| 31 | proceeding that the firm knows to be false. |
| 32 | (b) Knowingly breach a bona fide mortgage modification |
| 33 | agreement. |
| 34 | (c) Retake possession, without judicial process, of |
| 35 | residential real property for a party filing a mortgage |
| 36 | foreclosure action upon such property, unless such property is |
| 37 | abandoned for more than 30 days. |
| 38 | (3) A violation of subsection (2) is a deceptive and |
| 39 | unfair trade practice and constitutes a violation of the Florida |
| 40 | Deceptive and Unfair Trade Practices Act. A mortgage collection |
| 41 | firm that violates subsection (2) is subject to the penalties |
| 42 | and remedies provided in part II of this chapter, including the |
| 43 | award of reasonable attorney's fees and costs under s. 501.2105. |
| 44 | Section 3. This act shall take effect July 1, 2012. |