Senate Bill sb1496

    Florida Senate - 2007                                  SB 1496

    By Senator Crist





    12-353-07

  1                      A bill to be entitled

  2         An act relating to mortgage lending; creating

  3         s. 494.00675, F.S.; requiring lenders to place

  4         certain funds for homeowner's insurance premium

  5         and property tax payment into escrow when

  6         requested by the borrower; amending s.

  7         494.00792, F.S., relating to disclosures for

  8         high-cost home loans, to conform; providing an

  9         effective date.

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11  Be It Enacted by the Legislature of the State of Florida:

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13         Section 1.  Section 494.00675, Florida Statutes, is

14  created to read:

15         494.00675  Escrow of insurance premium, property

16  tax.--Each licensee under ss. 494.006-494.0077 which makes

17  mortgage loans on real estate must, when requested by the

18  borrower, hold moneys for the payment of property tax in

19  escrow. Each such licensee that requires a borrower to

20  maintain homeowner's insurance must, when requested by the

21  borrower, hold the premium for such insurance in escrow.

22         Section 2.  Paragraph (a) of subsection (1) of section

23  494.00792, Florida Statutes, is amended to read:

24         494.00792  Required disclosures for high-cost home

25  loans.--

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

27  and in conspicuous type:

28         (a)  Notice to borrower.--A lender making a high-cost

29  home loan shall provide a notice to a borrower in

30  substantially the following form:

31  

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    Florida Senate - 2007                                  SB 1496
    12-353-07




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

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

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

 4  obligations under the loan.

 5         Mortgage loan rates and closing costs and fees vary

 6  based on many factors, including your particular credit and

 7  financial circumstances, your employment history, the

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

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

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

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

12         You should also consider consulting a qualified

13  independent credit counselor or other experienced financial

14  adviser regarding the rates, fees, and provisions of this

15  mortgage loan before you proceed. You should contact the

16  United States Department of Housing and Urban Development for

17  a list of credit counselors available in your area.

18         You are not required to complete this agreement merely

19  because you have received these disclosures or have signed a

20  loan application.

21         Borrowing for the purpose of debt consolidation can be

22  an appropriate financial management tool.  However, if you

23  continue to incur significant new credit card charges or other

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

25  experience financial difficulties, you could lose your home

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

27  loan obligations.

28         Remember that property taxes and homeowners' insurance

29  are your responsibility.  Not all lenders provide escrow

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

31  escrow these services for these payments.

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    Florida Senate - 2007                                  SB 1496
    12-353-07




 1         Also, your payments on existing debts contribute to

 2  your credit rating. You should not accept any advice to ignore

 3  your regular payments to your existing creditors.

 4         Section 3.  This act shall take effect July 1, 2007.

 5  

 6            *****************************************

 7                          SENATE SUMMARY

 8    Requires a licensee under ss. 494.006-494.0077, F.S.,
      which makes a mortgage loan on real estate and requires
 9    the borrower to maintain homeowner's insurance to place
      moneys for the premium thereon into escrow when requested
10    by the borrower. Requires such a licensee to place moneys
      for payment of property taxes into escrow when requested
11    by the borrower.

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