HB 349

1
A bill to be entitled
2An act relating to residential mortgage fraud; creating s.
3817.545, F.S.; providing a short title; providing
4legislative findings and declarations; providing
5definitions; specifying criteria for committing the
6offense of residential mortgage fraud; providing an
7exception; providing for venue of the committed offense;
8providing penalties; authorizing certain investigative
9agencies to investigate and prosecute cases of residential
10mortgage fraud; providing for civil forfeiture of property
11under certain circumstances; reenacting s. 895.02(1)(a),
12F.S., relating to the definition of "racketeering
13activity," for purposes of incorporating the creation of
14s. 817.545, F.S., in a reference to ch. 817, F.S.;
15providing an effective date.
16
17Be It Enacted by the Legislature of the State of Florida:
18
19     Section 1.  Section 817.545, Florida Statutes, is created
20to read:
21     817.545  Residential mortgage fraud.--
22     (1)  This section may be cited as the "Florida Residential
23Mortgage Fraud Act."
24     (2)  The Legislature finds and declares that fraud
25involving residential mortgages is at an all-time high in the
26United States and in this state. Mortgage lending institutions
27and borrowers have suffered hundreds of millions of dollars in
28losses due to residential mortgage fraud. Fraudulently inflated
29property values in neighborhoods have resulted in substantial
30increases in property taxes and have threatened the viability of
31many communities. The Legislature therefore concludes that for
32the protection of the general public, and particularly for the
33protection of borrowers, homeowners, lending institutions, and
34the integrity of the mortgage lending process, residential
35mortgage fraud should be made unlawful and subject to the
36provisions of chapter 895.
37     (3)  For purposes of this section:
38     (a)  "Mortgage lending process" means the process through
39which a person seeks or obtains a residential mortgage loan,
40including, but not limited to, solicitation, application, or
41origination, negotiation of terms, third-party provider
42services, underwriting, signing and closing, and funding of the
43loan. Documents involved in the mortgage lending process
44include, but are not limited to, uniform residential loan
45applications or other loan applications; appraisal reports; HUD-
461 settlement statements; supporting personal documentation for
47loan applications such as W-2 forms, verifications of income and
48employment, bank statements, tax returns, and payroll stubs; and
49any required disclosures.
50     (b)  "Person" means a natural person, corporation, company,
51limited liability company, partnership, trustee, association, or
52any other entity.
53     (c)  "Residential mortgage fraud" means one or more
54misstatements, misrepresentations, or omissions made during a
55mortgage lending process that involves residential property.
56     (d)  "Residential mortgage loan" means a loan or agreement
57to extend credit made to a person, which loan is secured by a
58deed to secure debt, security deed, mortgage, security interest,
59deed of trust, or other document representing a security
60interest or lien upon any interest in one-family to four-family
61residential property located in this state, including the
62renewal or refinancing of any such loan.
63     (4)  A person commits the offense of residential mortgage
64fraud if, with the intent to defraud, the person:
65     (a)  Knowingly makes any deliberate misstatement,
66misrepresentation, or omission during the mortgage lending
67process with the intention that the misstatement,
68misrepresentation, or omission will be relied on by a mortgage
69lender, borrower, or any other party to the mortgage lending
70process;
71     (b)  Knowingly uses or facilitates the use of any
72deliberate misstatement, misrepresentation, or omission, knowing
73the misstatement, misrepresentation, or omission contains a
74misstatement, misrepresentation, or omission, during the
75mortgage lending process with the intention that the
76misstatement, misrepresentation, or omission will be relied on
77by a mortgage lender, borrower, or any other party to the
78mortgage lending process;
79     (c)  Receives any proceeds or any other funds in connection
80with a residential mortgage closing that the person knew
81resulted from a violation of paragraph (a) or paragraph (b);
82     (d)  Conspires to violate any of the provisions of
83paragraph (a), paragraph (b), or paragraph (c); or
84     (e)  Files or causes to be filed with the clerk of the
85circuit court for any county of this state any document the
86person knows to contain a deliberate misstatement,
87misrepresentation, or omission.
88
89An offense of residential mortgage fraud shall not be predicated
90solely upon information lawfully disclosed under federal
91disclosure laws, regulations, and interpretations related to the
92mortgage lending process.
93     (5)  For the purpose of venue under this section, any
94violation of this section shall be considered to have been
95committed:
96     (a)  In the county in which the residential property for
97which a mortgage loan is being sought is located;
98     (b)  In any county in which any act was performed in
99furtherance of the violation;
100     (c)  In any county in which any person alleged to have
101violated this section had control or possession of any proceeds
102of the violation;
103     (d)  If a closing occurred, in any county in which the
104closing occurred; or
105     (e)  In any county in which a document containing a
106deliberate misstatement, misrepresentation, or omission is filed
107with the clerk of the circuit court for such county.
108     (6)(a)  Any person who violates this section commits a
109felony of the third degree, punishable as provided in s.
110775.082, s. 775.083, or s. 775.084.
111     (b)  Any person who engages in a pattern of residential
112mortgage fraud or a conspiracy or endeavor to engage or
113participate in a pattern of residential mortgage fraud in
114violation of this section commits a felony of the second degree,
115punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
116For purposes of this paragraph, the term "pattern of residential
117mortgage fraud" means one or more misstatements,
118misrepresentations, or omissions made during the mortgage
119lending process that involve two or more residential properties,
120which have the same or similar intents, results, accomplices,
121victims, or methods of commission or otherwise are interrelated
122by distinguishing characteristics.
123     (c)  Each residential property transaction subject to a
124violation of this section shall constitute a separate offense
125and shall not be combined with any other offense.
126     (7)  An investigative agency as defined in s. 895.02 may
127conduct the criminal investigation and prosecution of all cases
128of residential mortgage fraud under this section.
129     (8)  All real and personal property of every kind used or
130intended for use in the course of, derived from, or realized
131through a violation of this section is subject to civil
132forfeiture to the state, as provided in s. 895.05. An
133investigative agency as defined in s. 895.02 may commence
134forfeiture proceedings under this section pursuant to s. 895.05.
135     Section 2.  To incorporate the provisions of section
136817.545, Florida Statutes, as created by this act, paragraph (a)
137of subsection (1) of section 895.02, Florida Statutes, is
138reenacted to read:
139     895.02  Definitions.--As used in ss. 895.01-895.08, the
140term:
141     (1)  "Racketeering activity" means to commit, to attempt to
142commit, to conspire to commit, or to solicit, coerce, or
143intimidate another person to commit:
144     (a)  Any crime that is chargeable by indictment or
145information under the following provisions of the Florida
146Statutes:
147     1.  Section 210.18, relating to evasion of payment of
148cigarette taxes.
149     2.  Section 403.727(3)(b), relating to environmental
150control.
151     3.  Section 409.920 or s. 409.9201, relating to Medicaid
152fraud.
153     4.  Section 414.39, relating to public assistance fraud.
154     5.  Section 440.105 or s. 440.106, relating to workers'
155compensation.
156     6.  Section 443.071(4), relating to creation of a
157fictitious employer scheme to commit unemployment compensation
158fraud.
159     7.  Section 465.0161, relating to distribution of medicinal
160drugs without a permit as an Internet pharmacy.
161     8.  Sections 499.0051, 499.0052, 499.00535, 499.00545, and
162499.0691, relating to crimes involving contraband and
163adulterated drugs.
164     9.  Part IV of chapter 501, relating to telemarketing.
165     10.  Chapter 517, relating to sale of securities and
166investor protection.
167     11.  Section 550.235, s. 550.3551, or s. 550.3605, relating
168to dogracing and horseracing.
169     12.  Chapter 550, relating to jai alai frontons.
170     13.  Section 551.109, relating to slot machine gaming.
171     14.  Chapter 552, relating to the manufacture,
172distribution, and use of explosives.
173     15.  Chapter 560, relating to money transmitters, if the
174violation is punishable as a felony.
175     16.  Chapter 562, relating to beverage law enforcement.
176     17.  Section 624.401, relating to transacting insurance
177without a certificate of authority, s. 624.437(4)(c)1., relating
178to operating an unauthorized multiple-employer welfare
179arrangement, or s. 626.902(1)(b), relating to representing or
180aiding an unauthorized insurer.
181     18.  Section 655.50, relating to reports of currency
182transactions, when such violation is punishable as a felony.
183     19.  Chapter 687, relating to interest and usurious
184practices.
185     20.  Section 721.08, s. 721.09, or s. 721.13, relating to
186real estate timeshare plans.
187     21.  Chapter 782, relating to homicide.
188     22.  Chapter 784, relating to assault and battery.
189     23.  Chapter 787, relating to kidnapping or human
190trafficking.
191     24.  Chapter 790, relating to weapons and firearms.
192     25.  Section 796.03, s. 796.035, s. 796.04, s. 796.045, s.
193796.05, or s. 796.07, relating to prostitution and sex
194trafficking.
195     26.  Chapter 806, relating to arson.
196     27.  Section 810.02(2)(c), relating to specified burglary
197of a dwelling or structure.
198     28.  Chapter 812, relating to theft, robbery, and related
199crimes.
200     29.  Chapter 815, relating to computer-related crimes.
201     30.  Chapter 817, relating to fraudulent practices, false
202pretenses, fraud generally, and credit card crimes.
203     31.  Chapter 825, relating to abuse, neglect, or
204exploitation of an elderly person or disabled adult.
205     32.  Section 827.071, relating to commercial sexual
206exploitation of children.
207     33.  Chapter 831, relating to forgery and counterfeiting.
208     34.  Chapter 832, relating to issuance of worthless checks
209and drafts.
210     35.  Section 836.05, relating to extortion.
211     36.  Chapter 837, relating to perjury.
212     37.  Chapter 838, relating to bribery and misuse of public
213office.
214     38.  Chapter 843, relating to obstruction of justice.
215     39.  Section 847.011, s. 847.012, s. 847.013, s. 847.06, or
216s. 847.07, relating to obscene literature and profanity.
217     40.  Section 849.09, s. 849.14, s. 849.15, s. 849.23, or s.
218849.25, relating to gambling.
219     41.  Chapter 874, relating to criminal street gangs.
220     42.  Chapter 893, relating to drug abuse prevention and
221control.
222     43.  Chapter 896, relating to offenses related to financial
223transactions.
224     44.  Sections 914.22 and 914.23, relating to tampering with
225a witness, victim, or informant, and retaliation against a
226witness, victim, or informant.
227     45.  Sections 918.12 and 918.13, relating to tampering with
228jurors and evidence.
229     Section 3.  This act shall take effect October 1, 2007.


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