The Florida Senate

494.0028  Arbitration.--

(1)  This section applies to any mortgage brokerage agreement, servicing agreement, loan application, or purchase agreement which provides for arbitration between:

(a)  A noninstitutional investor and a mortgage lender or correspondent mortgage lender to service a mortgage loan.

(b)  A borrower and a mortgage brokerage business, mortgage lender, or correspondent mortgage lender to obtain a mortgage loan.

(c)  A noninstitutional investor and a mortgage brokerage business, mortgage lender, or correspondent mortgage lender to fund or purchase a mortgage loan.

(2)  All agreements subject to this section shall provide that, at the voluntary election of the noninstitutional investor or borrower, disputes shall be handled by either a court of competent jurisdiction or by binding arbitration.

(3)  All agreements subject to this section shall provide the noninstitutional investor or borrower with the option to elect arbitration before the American Arbitration Association or other independent nonindustry arbitration forum. Any other nonindustry arbitration forum may apply to the office to allow such forum to provide arbitration services. The office shall grant the application if the applicant's fees, practices, and procedures do not materially differ from those of the American Arbitration Association.

(4)  At the election of the noninstitutional investor or borrower, venue shall be in the county in which the noninstitutional investor or borrower entered into the agreement or at a business location of the mortgage brokerage business, mortgage lender, or correspondent lender.

(5)  Any fees or charges shall be made as provided in the rules of the American Arbitration Association or other approved nonindustry arbitration forum and shall not be set in the agreement.

(6)  Any election made under this section shall be irrevocable.

(7)  This section shall not be construed to require an agreement which is subject to this section to contain an arbitration clause.

History.--s. 6, ch. 95-313; s. 524, ch. 2003-261.