Senate Bill sb1824
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Florida Senate - 2007 SB 1824
By Senator Fasano
11-1453-07 See HB
1 A bill to be entitled
2 An act relating to mortgage brokering and
3 lending; amending s. 494.001, F.S.; revising
4 definitions; amending s. 494.0014, F.S.;
5 authorizing the Office of Financial Regulation
6 to impose fines; amending s. 494.0029, F.S.;
7 authorizing the office to take certain adverse
8 actions on permits of certain mortgage business
9 schools; providing additional requirements for
10 such schools; amending s. 494.00295, F.S.;
11 providing an additional professional continuing
12 education requirement; authorizing the office
13 to offer professional continuing education
14 programs; specifying requirements for
15 electronically transmitted and distance
16 education courses; amending s. 494.0033, F.S.;
17 authorizing an additional fee for reviewing
18 mortgage broker's license tests; providing for
19 review of the testing process; amending s.
20 494.0038, F.S.; providing additional disclosure
21 requirements for mortgage brokerage businesses;
22 amending s. 494.004, F.S.; specifying an
23 additional notification requirement for
24 mortgage broker licensees; amending s.
25 494.0041, F.S.; specifying additional acts
26 constituting grounds for certain disciplinary
27 actions; providing for fines and penalties;
28 amending s. 494.0042, F.S.; limiting certain
29 brokerage fees; amending s. 494.0064, F.S.;
30 providing additional requirements for renewals
31 of mortgage lender's licenses; amending s.
1
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Florida Senate - 2007 SB 1824
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1 494.0067, F.S.; providing additional
2 requirements for mortgage lender licenses;
3 providing disclosure requirements; amending s.
4 494.0072, F.S.; specifying additional acts
5 constituting grounds for certain disciplinary
6 actions; providing fines and penalties;
7 amending s. 494.0073, F.S.; providing for
8 application of certain provisions to mortgage
9 brokerage businesses; providing for adoption of
10 rules by the Financial Services Commission;
11 providing an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Subsection (2) of section 494.001, Florida
16 Statutes, is amended, and subsection (32) is added to that
17 section, to read:
18 494.001 Definitions.--As used in ss. 494.001-494.0077,
19 the term:
20 (2) "Act as a loan originator" means being employed by
21 a mortgage lender or correspondent mortgage lender, for
22 compensation or gain or in the expectation of compensation or
23 gain, to negotiate, or offer to negotiate, or assist any
24 licensed or exempt entity in negotiating, the making of a
25 mortgage loan. A person whose activities are ministerial and
26 clerical, which may include quoting available interest rates
27 or loan terms and conditions, is not acting as a loan
28 originator.
29 (32) "Mortgage loan application" means a submission of
30 a borrower's financial information in anticipation of a credit
31 decision, whether written or computer-generated, relating to a
2
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Florida Senate - 2007 SB 1824
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1 mortgage loan. If the submission does not state or identify a
2 specific property, the submission is an application for a
3 prequalification and not an application for a mortgage loan
4 under this part. The subsequent addition of an identified
5 property to the submission converts the submission to an
6 application for a mortgage loan.
7 Section 2. Section 494.0014, Florida Statutes, is
8 amended to read:
9 494.0014 Cease and desist orders; administrative
10 fines; refund orders.--
11 (1) The office has the power to issue and serve upon
12 any person an order to cease and desist and to take corrective
13 action whenever it has reason to believe the person is
14 violating, has violated, or is about to violate any provision
15 of ss. 494.001-494.0077, any rule or order issued under ss.
16 494.001-494.0077, or any written agreement between the person
17 and the office. All procedural matters relating to issuance
18 and enforcement of such a cease and desist order are governed
19 by the Administrative Procedure Act.
20 (2) The office has the power to order the refund of
21 any fee directly or indirectly assessed and charged on a
22 mortgage loan transaction which is unauthorized or exceeds the
23 maximum fee specifically authorized in ss. 494.001-494.0077.
24 (3) The office may prohibit the association by a
25 mortgage broker business, or the employment by a mortgage
26 lender or correspondent mortgage lender, of any person who has
27 engaged in a pattern of misconduct while an associate of a
28 mortgage brokerage business or an employee of a mortgage
29 lender or correspondent mortgage lender. For the purpose of
30 this subsection, the term "pattern of misconduct" means the
31 commission of three or more violations of ss. 494.001-494.0077
3
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Florida Senate - 2007 SB 1824
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1 or the provisions of chapter 494 in effect prior to October 1,
2 1991, during any 1-year period or any criminal conviction for
3 violating ss. 494.001-494.0077 or the provisions of chapter
4 494 in effect prior to October 1, 1991.
5 (4) The office may impose upon any person who makes or
6 brokers a loan, or any mortgage business school, a fine for
7 violations of any provision of ss. 494.001-494.00295 or any
8 rule or order issued under ss. 494.001-494.00295 in an amount
9 not exceeding $5,000 for each separate count or offense. The
10 borrower may recover reasonable costs and attorney's fees.
11 Section 3. Paragraph (f) is added to subsection (1)
12 and paragraphs (g) and (h) are added to subsection (2) of
13 section 494.0029, Florida Statutes, to read:
14 494.0029 Mortgage business schools.--
15 (1)
16 (f) In addition to the remedies set forth in s.
17 494.0014, the office may revoke, suspend, or place on
18 probation the permit of any mortgage business school that
19 fails to meet the requirements of this section, subject to all
20 reasonable conditions that the office specifies.
21 (2)
22 (g) A school permitted under this section must conduct
23 classes on an hour-for-hour basis in accordance with the
24 requirements of this chapter.
25 (h) Each school permitted under this section is
26 responsible for developing procedures to confirm, and for
27 actually confirming, the identity of each student attending
28 any course offering.
29 Section 4. Section 494.00295, Florida Statutes, is
30 amended to read:
31 494.00295 Professional continuing education.--
4
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1 (1) Mortgage brokers, and the principal
2 representatives and loan originators of a mortgage lender,
3 correspondent mortgage lender, or mortgage lender pursuant to
4 s. 494.0065, must successfully complete at least 14 hours of
5 professional continuing education covering primary and
6 subordinate mortgage financing transactions and the provisions
7 of this chapter during the 2-year period immediately preceding
8 the renewal deadline for a mortgage broker, mortgage lender,
9 correspondent mortgage lender, or mortgage lender pursuant to
10 s. 494.0065. A minimum of 4 hours shall cover the provisions
11 of this chapter and the rules adopted under this chapter. At
12 the time of license renewal, a licensee must certify to the
13 office that the professional continuing education requirements
14 of this section have been met. Licensees shall maintain
15 records documenting compliance with this subsection for a
16 period of 4 years. The requirements for professional
17 continuing education are waived for the license renewal of a
18 mortgage broker for the biennial license period immediately
19 following the period in which the person became licensed as a
20 mortgage broker. The requirements for professional continuing
21 education for a principal representative are waived for the
22 license renewal of a mortgage lender, correspondent mortgage
23 lender, or mortgage lender pursuant to s. 494.0065 for the
24 biennial license period immediately following the period in
25 which the principal representative completed the 24 hours of
26 classroom education and passed a written test in order to
27 qualify to be a principal representative.
28 (2) Professional continuing education programs must
29 contribute directly to the professional competency of the
30 participants, may only be offered by permitted mortgage
31 business schools, the office, or entities specifically
5
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1 exempted from permitting as mortgage business schools, and may
2 include electronically transmitted or distance education
3 courses.
4 (3)(a) All electronically transmitted courses shall
5 require that the time spent attending electronically
6 transmitted professional education courses is equal to the
7 number of qualifying hours awarded to participants for course
8 attendance. Before allowing a course participant to complete a
9 course and receive a certificate of course completion, the
10 course provider shall ensure that the course participant has:
11 1. Logged the required number of hours for the
12 particular timed module.
13 2. Completed a test that comprehensively covers the
14 course content for the particular timed module.
15 3. Correctly answered all test questions for the
16 particular timed module.
17 (b) All distance education course participants shall
18 successfully complete a test that comprehensively covers
19 course content in order to receive a certificate of course
20 completion. Distance education providers shall not provide
21 answers to test questions to course participants and shall not
22 issue a certificate of course completion to any course
23 participant who has failed to correctly answer at least 75
24 percent of the total test questions.
25 (4)(3) The commission shall adopt rules pursuant to
26 ss. 120.536(1) and 120.54 necessary to administer this
27 section, including rules governing qualifying hours for
28 professional continuing education programs and standards for
29 electronically transmitted or distance education courses,
30 including course completion requirements.
31
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1 Section 5. Paragraph (b) of subsection (2) of section
2 494.0033, Florida Statutes, is amended to read:
3 494.0033 Mortgage broker's license.--
4 (2) Each initial application for a mortgage broker's
5 license must be in the form prescribed by rule of the
6 commission. The commission may require each applicant to
7 provide any information reasonably necessary to make a
8 determination of the applicant's eligibility for licensure.
9 The office shall issue an initial license to any natural
10 person who:
11 (b) Has passed a written test adopted and administered
12 by the office, or has passed an electronic test adopted and
13 administered by the office or a third party approved by the
14 office, which is designed to determine competency in primary
15 and subordinate mortgage financing transactions as well as to
16 test knowledge of ss. 494.001-494.0077 and the rules adopted
17 pursuant thereto. The commission may prescribe by rule an
18 additional fee that may not exceed $100 for the electronic
19 version of the mortgage broker test. The commission may waive
20 by rule the examination requirement for any person who has
21 passed a test approved by the Conference of State Bank
22 Supervisors, the American Association of Residential Mortgage
23 Regulators, or the United States Department of Housing and
24 Urban Development if the test covers primary and subordinate
25 mortgage financing transactions. The commission may adopt
26 rules prescribing an additional fee that may not exceed $50
27 for an applicant to review his or her completed and graded
28 mortgage broker test. The commission may adopt rules regarding
29 the administration of the testing process, including, but not
30 limited to, procedures relating to test security, scoring,
31
7
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Florida Senate - 2007 SB 1824
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1 content, result notification, retest procedures and fees,
2 postexamination review, and challenge provisions.
3
4 The commission may require by rule information concerning any
5 such applicant or person, including, but not limited to, his
6 or her full name and any other names by which he or she may
7 have been known, age, social security number, qualifications
8 and educational and business history, and disciplinary and
9 criminal history.
10 Section 6. Section 494.0038, Florida Statutes, is
11 amended to read:
12 494.0038 Mortgage broker disclosures.--
13 (1)(a)1. A person may not receive a fee for acting as
14 a mortgage brokerage business except pursuant to a written
15 agreement between the mortgage brokerage business and the
16 borrower that is signed and dated by the business and the
17 borrower.
18 2. The written agreement must be executed within 3
19 days after accepting a mortgage loan application, describe the
20 services to be provided by the mortgage brokerage business,
21 and specify the amount and terms of the mortgage brokerage fee
22 that the mortgage brokerage business is to receive.
23 (b)1. If the mortgage brokerage business is to receive
24 any payment of any kind from the lender, such fact shall be
25 specifically disclosed to the borrower and the maximum total
26 dollar amount of the payment must be disclosed to the borrower
27 in the written agreement. The commission may prescribe by rule
28 an acceptable form for disclosure of brokerage fees received
29 from the lender. If any of the rates, points, fees, and other
30 terms quoted by or on behalf of the lender are to be received
31
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1 by the mortgage brokerage business, such fact shall be
2 specifically disclosed to the borrower.
3 2. The exact amount of any payment of any kind by the
4 lender to the mortgage brokerage business must be disclosed in
5 writing no later than 10 days prior to the execution of the
6 closing or settlement statement if the execution of the
7 closing or settlement statement is scheduled more than 25 days
8 after the execution of the mortgage brokerage agreement and no
9 later than 3 days prior to the execution of the closing or
10 settlement statement if the execution of the closing or
11 settlement statement is scheduled 25 days or less after the
12 execution of the mortgage brokerage agreement. If the mortgage
13 brokerage fee is for brokering a loan for a particular program
14 under which the brokerage fee varies according to the terms of
15 the loan, the brokerage fee may be disclosed as a range of
16 fees at the time of application. The mortgage broker shall, in
17 such instance, disclose the nature of the fee arrangement to
18 the borrower, and the exact amount of the fee must be
19 disclosed at settlement or closing.
20 (c) The commission may prescribe by rule the form of
21 disclosure of brokerage fees.
22 (2) At the time a written agreement is executed by the
23 borrower or at the time the mortgage brokerage business
24 accepts an application fee, credit report fee, property
25 appraisal fee, or any other third-party fee, but not fewer
26 than 3 days prior to execution of the closing or settlement
27 statement, the mortgage brokerage business shall disclose in
28 writing to any applicant for a mortgage loan the following
29 information:
30 (a) That such mortgage brokerage business may not make
31 mortgage loans or commitments. The mortgage brokerage business
9
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1 may make a commitment and may furnish a lock-in of the rate
2 and program on behalf of the lender when the mortgage
3 brokerage business has obtained a written commitment or
4 lock-in for the loan from the lender on behalf of the borrower
5 for the loan. The commitment must be in the same form and
6 substance as issued by the lender.
7 (b) That such mortgage brokerage business cannot
8 guarantee acceptance into any particular loan program or
9 promise any specific loan terms or conditions.
10 (c) A good faith estimate, signed and dated by the
11 borrower, that discloses of the total amount of each of the
12 fees that the borrower may reasonably expect to pay if the
13 loan is closed, including, but not limited to, fees earned by
14 the mortgage brokerage business, lender fees, third-party
15 fees, and official fees, together with credit report fee,
16 property appraisal fee, or any other third-party fee and the
17 terms and conditions for obtaining a refund of such fees, if
18 any. Any amount collected in excess of the actual cost shall
19 be returned within 60 days after rejection, withdrawal, or
20 closing. This requirement does not supplant or is not a
21 substitute for the written agreement described in subsection
22 (1).
23 (3) The disclosures required by this subsection must
24 be made in writing at the time an adjustable rate mortgage
25 loan is offered to the borrower and whenever the terms of the
26 adjustable rate mortgage loan offered change prior to closing.
27 The commission may prescribe by rule the form for disclosures
28 required by this subsection.
29 (a) The highest possible payment that could be reached
30 based on the terms of the loan offered shall be disclosed to
31 the borrower.
10
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1 (b) The methodology used to determine how and when the
2 applicable interest rate is calculated shall be fully
3 explained to the borrower, including identification of what
4 index will be used to determine the applicable interest rate.
5 (4) The disclosures in this subsection shall be made
6 in writing at the time a mortgage loan is offered and whenever
7 the terms of the mortgage loan offered change prior to closing
8 if, at the time the loan is made, any scheduled payment over
9 the life of the mortgage loan is insufficient to pay the
10 interest due at the time the scheduled payment is due. The
11 commission may prescribe by rule the form for disclosures
12 required by this subsection.
13 (a) The borrower shall be provided a complete
14 amortization schedule. Each scheduled payment that is
15 insufficient to pay the interest due at the time of the
16 payment shall be specifically identified to the borrower.
17 (b) The borrower shall be provided an explanation of
18 the effect each insufficient payment will have on the
19 principal balance of the mortgage loan.
20 (5) The disclosures in this subsection shall be made
21 in writing at the time a mortgage loan is offered and whenever
22 the terms of the mortgage loan offered change prior to closing
23 if, at the time the loan is made, any scheduled payment over
24 the life of the mortgage loan is sufficient to pay only the
25 interest due at the time of the scheduled payment. The
26 commission may prescribe by rule the form for disclosures
27 required by this subsection.
28 (a) The borrower shall be provided a complete
29 amortization schedule. Each scheduled payment that is
30 sufficient to pay only the interest due at the time of the
31 payment shall be specifically identified to the borrower.
11
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1 (b) The borrower shall be provided an explanation of
2 the effect each payment that is sufficient to pay only the
3 interest due at the time the payment is due will have on the
4 principal balance of the mortgage loan.
5 (6)(3) If the mortgage brokerage agreement includes a
6 nonrefundable application fee, the following requirements are
7 applicable:
8 (a) The amount of the application fee, which must be
9 clearly denominated as such, shall be clearly disclosed.
10 (b) The specific services that will be performed in
11 consideration for the application fee shall be disclosed.
12 (c) The application fee must be reasonably related to
13 the services to be performed and may not be based upon a
14 percentage of the principal amount of the loan or the amount
15 financed.
16 (7)(4) A mortgage brokerage business may not accept
17 any fee in connection with a mortgage loan other than an
18 application fee, credit report fee, property appraisal fee, or
19 other third-party fee prior to obtaining a written commitment
20 from a qualified lender.
21 (8)(5) Any third-party fee entrusted to a mortgage
22 brokerage business shall immediately, upon receipt, be placed
23 into a segregated account with a financial institution located
24 in the state the accounts of which are insured by the Federal
25 Government. Such funds shall be held in trust for the payor
26 and shall be kept in the account until disbursement. Such
27 funds may be placed in one account if adequate accounting
28 measures are taken to identify the source of the funds.
29 (9)(6) All mortgage brokerage fees shall be paid to a
30 mortgage brokerage business licensee.
31
12
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1 (10)(7) This section does not prohibit a mortgage
2 brokerage business from offering products and services, in
3 addition to those offered in conjunction with the loan
4 origination process, for a fee or commission.
5 Section 7. Subsections (8) and (9) are added to
6 section 494.004, Florida Statutes, to read:
7 494.004 Requirements of licensees.--
8 (8) Each licensee under ss. 494.003-494.0043 has a
9 duty to act in good faith and with fair dealing in any
10 transaction, practice, or course of business in connection
11 with the brokering or originating of any mortgage loan and
12 shall make reasonable efforts to secure a mortgage loan from
13 lenders with whom the licensee regularly does business. The
14 commission may adopt rules providing guidance regarding what
15 acting in good faith and with fair dealing means.
16 (9) In every mortgage loan transaction, each licensee
17 under ss. 494.003-494.0043 shall notify a borrower of any
18 changes in the terms of a mortgage loan previously offered to
19 the borrower within 24 hours after being made aware of such
20 changes by the lender but not less than 3 business days before
21 the signing of the settlement or closing statement. The
22 licensee bears the burden of proving such notification was
23 provided and accepted by the borrower.
24 Section 8. Paragraph (v) is added to subsection (2) of
25 section 494.0041, Florida Statutes, to read:
26 494.0041 Administrative penalties and fines; license
27 violations.--
28 (1) Whenever the office finds a person in violation of
29 an act specified in subsection (2), it may enter an order
30 imposing one or more of the following penalties against the
31 person:
13
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1 (a) Revocation of a license or registration.
2 (b) Suspension of a license or registration subject to
3 reinstatement upon satisfying all reasonable conditions that
4 the office specifies.
5 (c) Placement of the licensee, registrant, or
6 applicant on probation for a period of time and subject to all
7 reasonable conditions that the office specifies.
8 (d) Issuance of a reprimand.
9 (e) Imposition of a fine in an amount not exceeding
10 $5,000 for each count or separate offense.
11 (f) Denial of a license or registration.
12 (2) Each of the following acts constitutes a ground
13 for which the disciplinary actions specified in subsection (1)
14 may be taken:
15 (v) In any mortgage transaction, violating any
16 provision of the federal Real Estate Settlement Procedure Act,
17 as amended, 12 U.S.C. s. 2601 et seq., the federal Truth In
18 Lending Act, 15 U.S.C. s. 1601 et seq., or any regulations
19 adopted under such acts.
20 Section 9. Subsection (4) is added to section
21 494.0042, Florida Statutes, to read:
22 494.0042 Brokerage fees.--
23 (4) A person may charge a borrower and receive only
24 one fee from the borrower for acting as a mortgage broker
25 business.
26 Section 10. Subsection (1) of section 494.0064,
27 Florida Statutes, is amended to read:
28 494.0064 Renewal of mortgage lender's license; branch
29 office license renewal.--
30 (1)(a) The office shall renew a mortgage lender
31 license upon receipt of a completed renewal form,
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1 certification from the licensee that the licensee currently
2 meets the minimum net worth requirements of s. 494.0061 or s.
3 494.0065, certification from the licensee that during the
4 preceding 2 years the licensee's principal representative and
5 loan originators have completed the professional continuing
6 education requirements of s. 494.00295, and the nonrefundable
7 renewal fee of $575. The office shall renew a correspondent
8 lender license upon receipt of a completed renewal form,
9 certification from the licensee that the licensee currently
10 meets the minimum net worth requirements of s. 494.0062,
11 certification from the licensee that during the preceding 2
12 years the licensee's principal representative and loan
13 originators have completed the professional continuing
14 education requirements of s. 494.00295, and a nonrefundable
15 renewal fee of $475. Each licensee shall pay at the time of
16 renewal a nonrefundable fee of $325 for the renewal of each
17 branch office license.
18 (b) A licensee shall also submit, as part of the
19 renewal form, certification that during the preceding 2 years
20 the licensee's principal representative and loan originators
21 have completed the professional continuing education
22 requirements of s. 494.00295.
23 Section 11. Paragraph (a) of subsection (10) of
24 section 494.0067, Florida Statutes, is amended, and
25 subsections (11), (12), (13), and (14) are added to that
26 section, to read:
27 494.0067 Requirements of licensees under ss.
28 494.006-494.0077.--
29 (10)(a) Each mortgage lender or correspondent mortgage
30 lender licensee shall require the principal representative and
31 all loan originators, not currently licensed as mortgage
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1 brokers pursuant to s. 494.0033, who perform services for the
2 licensee to complete 14 hours of professional continuing
3 education during each biennial license period. The education
4 shall cover primary and subordinate mortgage financing
5 transactions and the provisions of this chapter and the rules
6 adopted under this chapter.
7 (11) The disclosures in this subsection must be made
8 in writing at the time an adjustable rate mortgage loan is
9 offered to the borrower and whenever the terms of the
10 adjustable rate mortgage loan offered change prior to closing.
11 The commission may prescribe by rule the form for disclosures
12 required by this subsection.
13 (a) The highest possible payment that could be reached
14 based on the terms of the loan offered shall be disclosed to
15 the borrower.
16 (b) The methodology used to determine how and when the
17 applicable interest rate is calculated shall be fully
18 explained to the borrower, including identification of what
19 index will be used to determine the applicable interest rate.
20 (12) The disclosures in this subsection shall be made
21 in writing at the time a mortgage loan is offered and whenever
22 the terms of the mortgage loan offered change prior to closing
23 if, at the time the loan is made, any scheduled payment over
24 the life of the mortgage loan is insufficient to pay the
25 interest due at the time the scheduled payment is due. The
26 commission may prescribe by rule the form for disclosures
27 required by this subsection.
28 (a) The borrower shall be provided a complete
29 amortization schedule. Each scheduled payment that is
30 insufficient to pay the interest due at the time of the
31 payment shall be specifically identified to the borrower.
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1 (b) The borrower shall be provided an explanation of
2 the effect each insufficient payment will have on the
3 principal balance of the mortgage loan.
4 (13) The disclosures in this subsection shall be made
5 in writing at the time a mortgage loan is offered and whenever
6 the terms of the mortgage loan offered change prior to closing
7 if, at the time the loan is made, any scheduled payment over
8 the life of the mortgage loan is sufficient to pay only the
9 interest due at the time the scheduled payment is due. The
10 commission may prescribe by rule the form of disclosure
11 required by this subsection.
12 (a) The borrower shall be provided a complete
13 amortization schedule and each scheduled payment that is
14 sufficient to pay only the interest due at the time of the
15 payment shall be specifically identified to the borrower.
16 (b) The borrower shall be provided an explanation of
17 the effect each payment that is sufficient to pay only the
18 interest due at the time the payment is due will have on the
19 principal balance of the mortgage loan.
20 (14) In every mortgage loan transaction, each licensee
21 under ss. 494.003-494.0043 shall notify a borrower of any
22 changes in the terms of a mortgage loan previously offered to
23 the borrower within 24 hours after being made aware of such
24 changes by the lender but not less than 3 business days before
25 the signing of the settlement or closing statement. The
26 licensee bears the burden of proving such notification was
27 provided and accepted by the borrower.
28 Section 12. Paragraph (v) is added to subsection (2)
29 of section 494.0072, Florida Statutes, subsection (3) of that
30 section is amended, and subsection (5) is added to that
31 section, to read:
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1 494.0072 Administrative penalties and fines; license
2 violations.--
3 (1) Whenever the office finds a person in violation of
4 an act specified in subsection (2), it may enter an order
5 imposing one or more of the following penalties against that
6 person:
7 (a) Revocation of a license or registration.
8 (b) Suspension of a license or registration, subject
9 to reinstatement upon satisfying all reasonable conditions
10 that the office specifies.
11 (c) Placement of the licensee or applicant on
12 probation for a period of time and subject to all reasonable
13 conditions that the office specifies.
14 (d) Issuance of a reprimand.
15 (e) Imposition of a fine in an amount not exceeding
16 $5,000 for each count or separate offense.
17 (f) Denial of a license or registration.
18 (2) Each of the following acts constitutes a ground
19 for which the disciplinary actions specified in subsection (1)
20 may be taken:
21 (v) In any mortgage transaction, violating any
22 provision of the federal Real Estate Settlement Procedure Act,
23 as amended, 12 U.S.C. s. 2601 et seq., the federal Truth In
24 Lending Act, 15 U.S.C. s. 1601 et seq., or any regulations
25 adopted under such acts.
26 (3) A mortgage lender or correspondent mortgage lender
27 is subject to the disciplinary actions specified in subsection
28 (1) if any officer, member, director, control person, joint
29 venturer, or ultimate equitable owner of a 10-percent or
30 greater interest in the mortgage lender or correspondent
31 mortgage lender, associate, or employee of the mortgage lender
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1 or correspondent mortgage lender violates or has violated any
2 provision of subsection (2).
3 (5) A principal representative of a mortgage lender or
4 correspondent mortgage lender is subject to the disciplinary
5 actions specified in subsection (1) for violations of
6 subsection (2) by associates or employees in the course of an
7 association or employment with the correspondent mortgage
8 lender or the mortgage lender. The principal representative is
9 only subject to suspension or revocation for associate or
10 employee actions if there is a pattern of repeated violations
11 by associates or employees or if the principal broker or
12 principal representative had knowledge of the violations.
13 Section 13. Section 494.0073, Florida Statutes, is
14 amended to read:
15 494.0073 Mortgage lender or correspondent mortgage
16 lender when acting as a mortgage brokerage business.--Sections
17 494.006-494.0077 do not prohibit a mortgage lender or
18 correspondent mortgage lender from acting as a mortgage
19 brokerage business. However, in mortgage transactions in which
20 a mortgage lender or correspondent mortgage lender acts as a
21 mortgage brokerage business, the provisions of ss. 494.0038,
22 494.0042, 494.004(8) and (9), and 494.0043(1), (2), and (3)
23 apply.
24 Section 14. This act shall take effect July 1, 2007.
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CODING: Words stricken are deletions; words underlined are additions.