CODING: Words stricken are deletions; words underlined are additions.



                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

  6

  7

  8

  9

10  ______________________________________________________________

11  Representative(s) Bendross-Mindingall offered the following:

12

13         Amendment (with title amendment) 

14         Delete everything after the enacting clause

15

16  and insert:

17         Section 1.  Short title; purposes.--

18         (1)  This act shall be known as the "Florida Fair

19  Lending Act."

20         (2)(a)  The Legislature finds that abusive mortgage

21  lending has become a problem in this state even though most

22  high-cost home loans do not involve abusive mortgage

23  practices. One of the most common forms of abusive lending is

24  the making of loans that are equity-based rather than

25  income-based. The financing of points and fees in these loans

26  provides immediate income to the originator and encourages

27  creditors to repeatedly refinance home loans. As long as there

28  is sufficient equity in the home, an abusive creditor benefits

29  even if the borrower is unable to make the payments and is

30  forced to refinance. The financing of high points and fees

31  causes the loss of equity in each refinancing and often leads

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  to foreclosure.

  2         (b)  Abusive lending has threatened the viability of

  3  many communities and caused decreases in home ownership. While

  4  the marketplace appears to operate effectively for

  5  conventional mortgages, too many homeowners find themselves

  6  victims of overreaching creditors who provide loans with

  7  unnecessarily high costs and terms that are unnecessary to

  8  secure repayment of the loan. The Legislature finds that as

  9  competition and self-regulation have not eliminated the

10  abusive terms from home-secured loans, the consumer protection

11  provisions of this act are necessary to encourage fair

12  lending.

13         Section 2.  Definitions.--As used in this act:

14         (1)  "Affiliate" means any company that controls, is

15  controlled by, or is in common control with another company,

16  as set forth in 12 U.S.C. s. 1841, et seq., and the

17  regulations adopted thereunder.

18         (2)  "Annual percentage rate" means the annual

19  percentage rate for the loan calculated according to the

20  provisions of 15 U.S.C. s. 1606 and the regulations adopted

21  thereunder by the Federal Reserve Board.

22         (3)  "Borrower" means any natural person obligated to

23  repay a loan, including, but not limited to, a coborrower,

24  cosignor, or guarantor.

25         (4)  "Bridge loan" means a loan with a maturity of less

26  than 18 months that only requires the payment of interest

27  until such time as the entire unpaid balance is due and

28  payable.

29         (5)  "Department" means the Department of Banking and

30  Finance.

31         (6)  "High-cost home loan" means a home loan as defined

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  in 15 U.S.C. s. 1602(aa) and regulations adopted thereunder.

  2         (7)  "Lender" means any person who makes a high-cost

  3  home loan or acts as a mortgage broker or lender, finance

  4  company, or retail installment seller with respect to a

  5  high-cost home loan, but shall not include any entity

  6  chartered by the United States Congress when engaging in

  7  secondary market mortgage transactions as an assignee or

  8  otherwise.

  9         Section 3.  Prohibited acts.--

10         (1)  PREPAYMENT PENALTIES.--

11         (a)  A high-cost home loan may not contain terms that

12  require a borrower to pay a prepayment penalty for paying all

13  or part of the loan principal before the date on which the

14  payment is due.

15         (b)  Notwithstanding paragraph (a), a lender making a

16  high-cost home loan may include in the loan contract a

17  prepayment fee or penalty, for up to the first 36 months after

18  the date of consummation of the loan, if:

19         1.  The borrower has also been offered a choice of

20  another product without a prepayment penalty.

21         2.  The borrower has been given, at least 3 business

22  days prior to the loan consummation, a written disclosure of

23  the terms of the prepayment fee or penalty by the lender,

24  including the benefit the borrower will receive for accepting

25  the prepayment fee or penalty through either a reduced

26  interest rate on the loan or reduced points or fees.

27         (2)  DEFAULT INTEREST RATE.--A high-cost home loan may

28  not provide for a higher interest rate after default on the

29  loan. However, this prohibition does not apply to interest

30  rate changes in a variable rate loan otherwise consistent with

31  the provisions of the loan documents, provided the change in

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  interest rate is not triggered by a default or the

  2  acceleration of the interest rate.

  3         (3)  BALLOON PAYMENTS.--A high-cost home loan having a

  4  term of less than 10 years may not contain terms under which

  5  the aggregate amount of the regular periodic payments would

  6  not fully amortize the outstanding principal balance. However,

  7  this prohibition does not apply when the payment schedule is

  8  adjusted to account for the seasonal or irregular income of

  9  the borrower or if the loan is a bridge loan.

10         (4)  NEGATIVE AMORTIZATION.--A high-cost home loan may

11  not contain terms under which the outstanding principal

12  balance will increase at any time over the course of the loan

13  because the regular periodic payments do not cover the full

14  amount of the interest due.

15         (5)  PREPAID PAYMENTS.--A high-cost home loan may not

16  include terms under which more than two periodic payments

17  required under the loan are consolidated and paid in advance

18  from the loan proceeds provided to the borrower.

19         (6)  EXTENDING CREDIT WITHOUT REGARD TO THE PAYMENT

20  ABILITY OF THE BORROWER.--A lender making a high-cost home

21  loan shall not engage in any pattern or practice of extending

22  high-cost home loans to borrowers based upon the borrowers'

23  collateral without regard to the borrowers' ability to repay

24  the loan, including the borrowers' current and expected

25  income, current obligations, and employment.

26         (7)  PAYMENTS TO A HOME CONTRACTOR.--A lender shall not

27  make any payments to a contractor under a home improvement

28  contract from amounts of a high-cost home loan other than:

29         (a)  In the form of an instrument that is payable to

30  the borrower or jointly to the borrower and the contractor; or

31         (b)  At the election of the borrower by a third-party

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  escrow agent in accordance with terms established in a written

  2  agreement signed by the borrower, the lender, and the

  3  contractor prior to the date of payment.

  4         (8)  DUE-ON-DEMAND CLAUSE.--A high-cost home loan may

  5  not contain a provision that permits the lender, in its sole

  6  discretion, to call or accelerate the indebtedness. This

  7  provision does not prohibit acceleration of the loan due to

  8  the borrower's failure to abide by the terms of the loan, or

  9  due to fraud or material misrepresentation by the consumer in

10  connection with the loan.

11         (9)  REFINANCING WITHIN AN 18-MONTH PERIOD.--

12         (a)  A lender, its affiliate, or an assignee shall not

13  refinance any high-cost home loan to the same borrower within

14  the first 18 months of the loan when the refinancing does not

15  have a reasonable benefit to the borrower considering all of

16  the circumstances, including, but not limited to, the terms of

17  both the new and refinanced loans, the cost of the new loan,

18  and the borrower's circumstances.

19         (b)  A lender or assignee shall not engage in acts or

20  practices to evade this requirement, including a pattern or

21  practice of arranging for the refinancing of the lender's or

22  assignee's own loans by affiliated or unaffiliated lenders or

23  modifying a loan agreement, whether or not the existing loan

24  is satisfied and replaced by the new loan, and charging a fee.

25         (10)  OPEN-ENDED LOANS.--A lender shall not make any

26  loan as an open-ended loan in order to evade the provisions of

27  this act unless such open-ended loans meet the definition in

28  12 C.F.R. s. 226.2(a)(20).

29         (11)  RECOMMENDATION OF DEFAULT.--A lender shall not

30  recommend or encourage default on an existing loan or other

31  debt prior to and in connection with the closing or planned

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  closing of a high-cost home loan that refinances all or any

  2  portion of such existing loan or debt.

  3         (12)  PROHIBITED DOOR-TO-DOOR LOANS.--A high-cost home

  4  loan may not be made as a direct result of a potential or

  5  future lender or its representative offering or selling a

  6  high-cost home loan at the residence of a potential borrower

  7  without a prearranged appointment with the potential borrower

  8  or the expressed invitation of the potential borrower. This

  9  subsection does not apply to mail solicitations that may be

10  received by the potential borrower.

11         (13)  LATE PAYMENT FEES.--A lender may not charge a

12  late payment fee for a high-cost home loan except as provided

13  in this subsection:

14         (a)  A late payment fee may not be in excess of 5

15  percent of the amount of the payment past due.

16         (b)  A late payment fee may only be assessed for a

17  payment past due for 15 days or more.

18         (c)  A late payment fee may not be charged more than

19  once with respect to a single late payment.  If a late payment

20  fee is deducted from a payment made on the loan and such

21  deduction causes a subsequent default on a subsequent payment,

22  no late payment fee may be imposed for such default. If a late

23  payment fee has been imposed once with respect to a particular

24  late payment, no such fee shall be imposed with respect to any

25  future payment which would have been timely and sufficient,

26  but for the previous default.

27         (14)  MODIFICATION OR DEFERRAL FEES.--A lender may not

28  charge a borrower any fees or other charges to modify, renew,

29  extend, or amend a high-cost home loan or to defer any payment

30  due under the terms of a high-cost home loan on a minimum of

31  one modification, renewal, extension, or deferral per each 12

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  months of the length of the loan.

  2         Section 4.  Required disclosures for high-cost home

  3  loans.--

  4         (1)  In addition to other disclosures required by law

  5  and in conspicuous type:

  6         (a)  NOTICE TO BORROWER.--A lender making a high-cost

  7  home loan shall provide a notice to a borrower in

  8  substantially the following form:

  9         If you obtain this high-cost home loan, the lender will

10  have a mortgage on your home.  You could lose your home and

11  any money you have put into it if you do not meet your

12  obligations under the loan.

13         Mortgage loan rates and closing costs and fees vary

14  based on many factors, including your particular credit and

15  financial circumstances, your employment history, the

16  loan-to-value requested, and the type of property that will

17  secure your loan.  The loan rate and fees could also vary

18  based upon which lender or broker you select.  As a borrower,

19  you should shop around and compare loan rates and fees.

20         You should also consider consulting a qualified

21  independent credit counselor or other experienced financial

22  advisor regarding the rates, fees, and provisions of this

23  mortgage loan before you proceed. You should contact the

24  United States Department of Housing and Urban Development for

25  a list of credit counselors available in your area.

26         You are not required to complete this agreement merely

27  because you have received these disclosures or have signed a

28  loan application.

29         Borrowing for the purpose of debt consolidation can be

30  an appropriate financial management tool.  However, if you

31  continue to incur significant new credit card charges or other

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  debts after this high-cost home loan is closed and then

  2  experience financial difficulties, you could lose your home

  3  and any equity you have in it if you do not meet your mortgage

  4  loan obligations.

  5         Remember that property taxes and homeowners' insurance

  6  are your responsibility.  Not all lenders provide escrow

  7  services for these payments.  You should ask your lender about

  8  these services.

  9         Also, your payments on existing debts contribute to

10  your credit rating.  You should not accept any advice to

11  ignore your regular payments to your existing creditors.

12         (b)  ANNUAL PERCENTAGE RATE.--A lender making a

13  high-cost home loan shall disclose:

14         1.  In the case of a fixed mortgage, the annual

15  percentage rate and the amount of the regular monthly payment.

16         2.  In the case of any other credit transaction, the

17  annual percentage rate, the amount of the regular monthly

18  payment and the amount of any balloon payment permitted under

19  this section, a statement that the interest rate and monthly

20  payment may increase, and the amount of the maximum monthly

21  payment based upon the maximum interest rate allowed pursuant

22  to law.

23         (c)  NOTICE TO PURCHASERS AND ASSIGNEES.--All high-cost

24  home loans shall contain the following notice:

25         Notice: This is a mortgage subject to the provisions of

26  the Florida Fair Lending Act. Purchasers and assignees of this

27  mortgage could be liable for all claims and defenses with

28  respect to the mortgage which the borrower could assert

29  against the creditor.

30         (2)  Timing of disclosure.--

31         (a)  The disclosure required by this subsection shall

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  be given not less than 3 business days prior to the

  2  consummation of the high-cost home loan.

  3         (b)  New disclosures are required when, after

  4  disclosure is made, the lender making the high-cost home loan

  5  changes the terms of the extension of credit, including if

  6  such changes make the original disclosures inaccurate, unless

  7  new disclosures are provided that meet the requirements of

  8  this section.

  9         (c)  A lender may provide new disclosures pursuant to

10  paragraph (b) by telephone, if:

11         1.  The change is initiated by the borrower.

12         2.  At the consummation of the high-cost home loan:

13         a.  The lender provides the disclosures in writing to

14  the borrower.

15         b.  The lender and the borrower certify in writing that

16  the new disclosures were provided by telephone no later than 3

17  days prior to the consummation of the high-cost home loan.

18         (d)  A creditor must disclose to any high-cost home

19  loan borrower the rights of the borrower to rescind the

20  high-cost home loan within 3 business days pursuant to 15

21  U.S.C. s. 1635(a) and shall provide appropriate forms for the

22  borrower to exercise his or her right to rescission. The

23  notice, forms, and provisions thereof must be in accordance

24  with the requirements of 15 U.S.C. s. 1635(a).

25         Section 5.  Liability of purchasers and assignees.--Any

26  person who purchases or is otherwise assigned a high-cost home

27  loan shall be subject to all claims and defenses with respect

28  to that mortgage that the borrower could assert against the

29  creditor of the mortgage, to the same extent and subject to

30  the same limitations that a borrower of a high-cost home loan

31  may assert against an assignee or purchaser pursuant to 15

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  U.S.C. s. 1641.

  2         Section 6.  Right to cure high-cost home loans.--

  3         (1)  RIGHT TO REINSTATE.--For a high-cost home loan, if

  4  a lender asserts that grounds for acceleration exist and

  5  requires the payment in full of all sums secured by the

  6  security instrument, the borrower, or anyone authorized to act

  7  on the borrower's behalf, shall have the right, during the

  8  45-day period set forth in subsection (2), to cure the default

  9  and reinstate the home loan by tendering the amount or

10  performance as specified in this section. However, once a

11  lender has provided two such notices as required by this

12  section, for two separate incidents, a lender is not

13  thereafter required to provide the notice required by this

14  section, and the borrower is not entitled by this section to

15  cure the default, for a third or subsequent incident for which

16  the lender asserts that grounds exist for acceleration of the

17  loan and repayment in full. Cure of default as provided in

18  this section shall reinstate the borrower to the same position

19  as if the default had not occurred and shall nullify, as of

20  the date of the cure, any acceleration of any obligation under

21  the security instrument or note arising from the default.

22         (2)  GROUNDS FOR REINSTATEMENT.--Before any action

23  filed to foreclose upon the home or other action is taken to

24  seize or transfer ownership of the home, a notice of the right

25  to cure the default must be delivered to the borrower at the

26  address of the property upon which any security exists for the

27  home loan by postage prepaid certified United States mail,

28  return receipt requested, which notice is effective upon

29  deposit in the United States mail, and shall inform the

30  borrower:

31         (a)  Of the nature of default claimed on the home loan

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  and of the borrower's right to cure the default by paying the

  2  sum of money required to cure the default. If the amount

  3  necessary to cure the default will change during the 45-day

  4  period after the effective date of the notice due to the

  5  application of a daily interest rate or the addition of late

  6  payment fees, as allowed by this act, the notice shall give

  7  sufficient information to enable the borrower to calculate the

  8  amount at any point during the 45-day period.

  9         (b)  Of the date by which the borrower shall cure the

10  default to avoid acceleration and initiation of foreclosure or

11  other action to seize the home, which date shall not be less

12  than 45 days after the date the notice is effective, and the

13  name and address and telephone number of a person to whom the

14  payment or tender shall be made.

15         (c)  That if the borrower does not cure the default by

16  the date specified, the creditor may take steps to terminate

17  the borrower's ownership of the property by requiring payment

18  in full of the home loan and commencing a foreclosure

19  proceeding or other action to seize the home.

20         (d)  Of the name and address of the creditor and the

21  telephone number of a representative of the creditor whom the

22  borrower may contact if the borrower disagrees with the

23  creditor's assertion that a default has occurred or the

24  correctness of the creditor's calculation of the amount

25  required to cure the default.

26         (3)  FEES.--To cure a default under this section, a

27  borrower shall not be required to pay any charge, fee, or

28  penalty attributable to the exercise of the right to cure a

29  default as provided for in this section, other than the fees

30  specifically allowed by this act. The borrower shall not be

31  liable for any attorney's fees or costs relating to the

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  borrower's default that are incurred by the creditor prior to

  2  or during the 45-day period set forth in paragraph (2)(b).

  3         Section 7.  Powers and duties of the Department of

  4  Banking and Finance; investigations; examinations;

  5  injunctions; orders.--

  6         (1)(a)  The department shall be responsible for the

  7  administration and enforcement of this act.

  8         (b)  The department may adopt rules pursuant to

  9  sections 120.536(1) and 120.54, Florida Statutes, to implement

10  this act. The department may adopt rules to allow electronic

11  submission of any forms, documents, or fees required by this

12  act.

13         (2)(a)  The department may conduct an investigation of

14  any person whenever the department has reason to believe, upon

15  complaint or otherwise, that any violation of the act has

16  occurred.

17         (b)  Any person having reason to believe that a

18  provision of this act has been violated may file a written

19  complaint with the department setting forth the details of the

20  alleged violation.

21         (c)  The department may conduct examinations of any

22  person to determine compliance with this act.

23         (3)(a)  The department may bring action, through its

24  own counsel in the name and on behalf of the state, against

25  any person who has violated or is about to violate any

26  provision of this act, or any rule or order of the department

27  issued under the act, to enjoin the person from continuing in

28  or engaging in any act in furtherance of the violation.

29         (b)  In any injunctive proceeding, the court may, on

30  due showing by the department, issue a subpoena or subpoena

31  duces tecum requiring the attendance of any witness and

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  requiring the production of any books, accounts, records, or

  2  other documents and materials that appear necessary to the

  3  expeditious resolution of the application for injunction.

  4         (4)  The department may issue and serve upon any person

  5  an order to cease and desist and to take corrective action

  6  whenever the department has reason to believe the person is

  7  violating, has violated, or is about to violate any provision

  8  of this act, any rule or order of the department issued under

  9  this act, or any written agreement between the person and the

10  department. All procedural matters relating to issuance and

11  enforcement of cease and desist orders are governed by the

12  Administrative Procedure Act.

13         (5)  Whenever the department finds a person in

14  violation of this act, it may enter an order imposing a fine

15  in an amount not exceeding $5,000 for each count or separate

16  offense, provided that the aggregate fine for all violations

17  of this act that could have been asserted at the time of the

18  order imposing the fine shall not exceed $500,000.

19         (6)  Any violation of this act shall also be deemed to

20  be a violation of chapter 494, chapter 516, chapter 520,

21  chapter 655, chapter 657, chapter 658, chapter 660, chapter

22  663, chapter 665, or chapter 667, Florida Statutes. The

23  department may adopt rules to enforce this subsection.

24         Section 8.  Enforcement.--

25         (1)  Any person or the agent, officer, or other

26  representative of any person committing a material violation

27  of the provisions of this act shall forfeit the entire

28  interest charged in the high-cost home loan or contracted to

29  be charged or received, and only the principal sum of such

30  high-cost home loan can be enforced in any court in this

31  state, either at law or in equity.

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         (2)  A creditor in a home loan who, when acting in good

  2  faith, fails to comply with the provisions of this act shall

  3  not be deemed to have violated this act if the creditor

  4  establishes that within 60 days after receiving any notice

  5  from the borrower of the compliance failure, which compliance

  6  failure was not intentional and resulted from a bona fide

  7  error notwithstanding the maintenance of procedures reasonably

  8  adapted to avoid such errors, the borrower has been notified

  9  of the compliance failure, appropriate restitution has been

10  made to the borrower, and appropriate adjustments are made to

11  the loan. Bona fide errors shall include, but not be limited

12  to, clerical, calculation, computer malfunction and

13  programming, and printing errors. An error of legal judgment

14  with respect to a person's obligations under this section is

15  not a bona fide error.

16         (3)  The remedies provided in this section are

17  cumulative.

18         Section 9.  General rule.--All counties and

19  municipalities of this state are prohibited from enacting and

20  enforcing ordinances, resolutions, and rules regulating

21  financial or lending activities, including ordinances,

22  resolutions, and rules disqualifying persons from doing

23  business with a city, county, or municipality based upon

24  lending interest rates or imposing reporting requirements or

25  any other obligations upon persons regarding financial

26  services or lending practices of persons or entities, and any

27  subsidiaries or affiliates thereof, who:

28         (1)  Are subject to the jurisdiction of the department,

29  including for activities subject to this chapter;

30         (2)  Are subject to the jurisdiction of the Office of

31  Thrift Supervision, the Office of the Comptroller of the

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  Currency, the National Credit Union Administration, the

  2  Federal Deposit Insurance Corporation, the Federal Trade

  3  Commission, or the United States Department of Housing and

  4  Urban Development;

  5         (3)  Originate, purchase, sell, assign, secure, or

  6  service property interests or obligations created by financial

  7  transactions or loans made, executed, or originated by persons

  8  referred to in subsection (1) or subsection (2) to assist or

  9  facilitate such transactions;

10         (4)  Are chartered by the United States Congress to

11  engage in secondary market mortgage transactions; or

12         (5)  Are created by the Florida Housing Finance

13  Corporation.

14

15  Proof of noncompliance with this act can be used by a city,

16  county, or municipality of this state to disqualify a vendor

17  or contractor from doing business with a city, county, or

18  municipality of this state.

19         Section 10.  Severability.--The provisions of this act

20  are severable, and if any phrase, clause, sentence, or

21  provision is declared invalid or is preempted by federal law

22  or regulation, the validity of the remainder of the act shall

23  not be affected.  If any provision of this act is declared to

24  be inapplicable to any specific category, type, or kind of

25  loan or points and fees, the provisions of this act shall

26  nonetheless continue to apply with respect to all other loans

27  and points and fees.

28         Section 11.  This act shall take effect October 2,

29  2002.

30

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    hbd0001                     12:30 pm         01471-0109-802741




                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  ================ T I T L E   A M E N D M E N T ===============

  2  And the title is amended as follows:

  3         Delete everything before the enacting clause

  4

  5  and insert:

  6                      A bill to be entitled

  7         An act relating to the Florida Fair Lending

  8         Act; providing a short title; providing

  9         legislative findings; providing definitions;

10         specifying prohibited acts relating to

11         high-cost home loans; specifying required

12         disclosures for high-cost home loans;

13         specifying liability of purchasers and

14         assignees; requiring lenders of high-cost home

15         loans to provide notice to borrowers prior to

16         taking foreclosure actions; allowing the

17         borrower to cure the default; providing

18         administration and enforcement powers and

19         duties of the Department of Banking and

20         Finance; authorizing the department to conduct

21         investigations and examinations; providing for

22         complaints; authorizing the department to bring

23         actions for injunctions; providing for issuance

24         of subpoenas; authorizing the department to

25         issue and serve cease and desist orders for

26         certain purposes; authorizing the department to

27         impose certain fines under certain

28         circumstances; specifying effect; authorizing

29         the department to adopt rules; providing that a

30         lender who violates this act forfeits the

31         interest in the high-cost home loan; providing

                                  16

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                                                   HOUSE AMENDMENT

                                     Bill No. CS/HB 1471, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         that certain unintentional good-faith errors

  2         are not deemed violations of th act; preempting

  3         regulation of high-cost home loans to the

  4         state; providing severability; providing an

  5         effective date.

  6

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                                  17

    File original & 9 copies    03/19/02
    hbd0001                     12:30 pm         01471-0109-802741