Senate Bill sb0352c1
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Florida Senate - 2007 CS for SB's 352 & 240
By the Committee on Banking and Insurance; and Senators
Margolis and Bullard
597-2042-07
1 A bill to be entitled
2 An act relating to real property fraud;
3 creating s. 817.545, F.S.; providing a short
4 title; providing legislative findings and
5 declarations; specifying criteria for
6 committing the offense of real property fraud;
7 providing that such offense is a third-degree
8 felony; providing for venue with respect to the
9 committed offense; providing penalties;
10 providing an effective date.
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12 Be It Enacted by the Legislature of the State of Florida:
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14 Section 1. Section 817.545, Florida Statutes, is
15 created to read:
16 817.545 Real property fraud.--
17 (1) This section may be cited as the "Florida Real
18 Property Fraud Act."
19 (2) The Legislature finds and declares that fraud
20 involving real property is at an all-time high in the United
21 States and in this state. Mortgage lending institutions and
22 borrowers have suffered hundreds of millions of dollars in
23 losses due to real property fraud. The Legislature therefore
24 concludes that for the protection of the public, and
25 particularly for the protection of borrowers, homeowners,
26 lending institutions, and the integrity of the mortgage
27 lending process, real property fraud should be made unlawful
28 and subject to the provisions of chapter 895.
29 (3) A person commits the offense of real property
30 fraud if, with the intent to defraud, the person knowingly:
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Florida Senate - 2007 CS for SB's 352 & 240
597-2042-07
1 (a) Makes any material misstatement,
2 misrepresentation, or omission during the mortgage lending
3 process with the intention that the misstatement,
4 misrepresentation, or omission will be relied on by a mortgage
5 lender, borrower, or any other party to the real property
6 transaction process; however, a material omission does not
7 occur when such omission is made as part of a lending program
8 in which income, assets, or employment determination are not
9 factors for qualification for the loan program.
10 (b) Uses or facilitates the use of any material
11 misstatement, misrepresentation, or omission, knowing the
12 misstatement, misrepresentation, or omission contains a
13 misstatement, misrepresentation, or omission, during the
14 mortgage lending process with the intention that the material
15 misstatement, misrepresentation, or omission will be relied on
16 by a mortgage lender, borrower, or any other party to the real
17 property transaction process; however, a material omission
18 does not occur when such omission is made as part of a lending
19 program in which income, assets, or employment determination
20 are not factors for qualification for the loan program.
21 (c) Receives any proceeds or any other funds in
22 connection with a real property transaction that the person
23 knew resulted from a violation of paragraph (a) or paragraph
24 (b).
25 (d) Files or causes to be filed with the clerk of the
26 circuit court for any county of this state a document
27 materially relating to a real property transaction which
28 contains a material misstatement, misrepresentation, or
29 omission.
30 (4) An offense of real property fraud shall not be
31 predicated solely upon information lawfully disclosed under
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Florida Senate - 2007 CS for SB's 352 & 240
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1 federal disclosure laws, regulations, or interpretations
2 related to the mortgage lending process.
3 (5) For the purpose of venue under this section, any
4 violation of this section shall be considered to have been
5 committed:
6 (a) In the county in which the real property is
7 located; or
8 (b) In any county in which a material act was
9 performed in furtherance of the violation.
10 (6) Any person who violates subsection (3) commits a
11 felony of the third degree, punishable as provided in s.
12 775.082, s. 775.083, or s. 775.084.
13 Section 2. This act shall take effect October 1, 2007.
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Florida Senate - 2007 CS for SB's 352 & 240
597-2042-07
1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 352 and Senate Bill 240
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4 The committee substitute provides the following changes to the
bill:
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1. Broadens the types of fraudulent real estate transactions
6 that would be addressed by the bill by establishing
criminal penalties for offenses that constitute "real
7 property fraud" rather than "residential mortgage fraud."
8 2. Provides that certain offenses constitute real property
fraud, a felony of the third degree, and provides
9 exceptions for material omissions relating to loans that
do not require credit underwriting.
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3. Provides than an offense of real property fraud cannot be
11 predicted solely on information lawfully disclosed under
laws and regulations related to the mortgage lending
12 process.
13 4. Narrows venue by providing that any real property fraud
violation is considered to have been committed in the
14 county in which the real estate property is located or in
any county in which a material act was performed in
15 furtherance of the violation.
16 5. Deletes the provision of the bill related to civil
forfeitures.
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6. Deletes the provision of the bill that provided a second
18 degree felony penalty for a person who engages in a
pattern of mortgage fraud of a conspiracy to engage in a
19 pattern of mortgage fraud.
20 7. Provides technical and clarifying changes.
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