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A bill to be entitled

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An act relating to real property fraud; creating s.

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193.133, F.S.; requiring law enforcement agencies to

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notify the county property appraiser of incidents of

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mortgage fraud; requiring the property appraiser to

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reconsider property assessments under certain conditions;

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creating s. 689.043, F.S.; providing a quitclaim deed

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form; requiring that the parcel identification number be

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included on the form when recorded; limiting the

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circumstances under which a quitclaim deed may be used;

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amending s. 817.545, F.S.; increasing penalties for

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certain types of mortgage fraud; creating a Statewide

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Mortgage Fraud Council within the Department of Legal

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Affairs; providing for membership; providing duties of the

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council; providing for regional mortgage fraud councils;

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providing for duties of the regional councils; authorizing

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members of the state and regional councils to be

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reimbursed for expenses; providing an effective date.

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     WHEREAS, mortgage fraud is a significant problem throughout

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the United States and is having a particularly damaging affect on

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mortgage investors and homeowners in this state, and

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     WHEREAS, certain types of mortgage fraud result in an

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artificial inflation in the value of residential property, which

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is directly correlated with an increase in the number of

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foreclosure filings, and

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     WHEREAS, this state is ranked number one in incidents of

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mortgage fraud and also has one of the highest foreclosure rates

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in the nation, and

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     WHEREAS, the escalation of property values also causes an

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increase in property taxes further making homeownership less

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affordable in this state, and

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     WHEREAS, providing enhanced penalties for multiple or more

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egregious instances of mortgage fraud, providing a uniform form

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for quitclaim deeds, establishing a statewide and regional

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councils to coordinate investigations of and solutions to

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mortgage fraud, and allowing county property appraisers to

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disqualify fraudulent property appraisals when deriving just

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valuation will help combat and reduce the effect of mortgage

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fraud, NOW, THEREFORE,

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

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     Section 1.  Section 193.133, Florida Statutes, is created to

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read:

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     193.133 Effect of mortgage fraud on property assessments.--

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     (1) Any state or local law enforcement agency shall provide

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notification of an incident of mortgage fraud, as defined in s.

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817.545, or other fraud involving real property which may

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artificially inflate the value of the property, to the property

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appraiser of the county in which the property is located within 7

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business days after learning of such incident.

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     (2) Upon notification of an incident of mortgage fraud or

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any other fraud involving real property which may artificially

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inflate the value of the property, the property appraiser shall

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revisit the property assessment and consider the effect of the

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fraud on the just valuation of the property.

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     (3) The property appraiser may adjust his or her assessment

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of the property retroactive to the initial date of the occurrence

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of the mortgage fraud.

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     Section 2.  Section 689.043, Florida Statutes, is created to

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read:

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     689.043 Quitclaim deeds; form prescribed.--

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     (1) A relinquishment of any ownership interest in real

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property may be effectuated through the use of a quitclaim deed.

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     (2) A quitclaim deed executed in substantially the

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following form shall be held to be a quitclaim deed with full

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common-law covenants, and shall bind the grantor as if the

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covenants were expressly stated in the quitclaim deed.

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     THIS QUITCLAIM DEED, made on this date:___________________,

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between the GRANTOR:____________________________________________,

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of the County of___________________, State of __________________,

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     and

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the GRANTEE:____________________________________________________,

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of the County of___________________, State of __________________.

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     WITNESSETH, that the Grantor, on behalf of himself or

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herself, heirs, executors, administrators, successors,

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representatives, and assigns, for good consideration and for the

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sum of $10, paid by the Grantee, the receipt of which is

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acknowledged, does hereby remise, release, and quitclaim to the

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Grantee all of the right, title, interest, claim, or demand that

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the Grantor may have had in the following described real

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property, and improvements and appurtenances thereto, situated

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in:______________________________

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County, Florida:

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Legal Description of Real Property:

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     (2) The form of the quitclaim deed must also include a

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blank space for the property appraiser's parcel identification

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number describing the real property at issue which number, if

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available, shall be entered on the deed before it is presented

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for recording. The failure to include a blank space, or the

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parcel identification number, or the inclusion of an incorrect

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parcel identification number, does not affect the validity of the

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relinquishment of ownership interest or the recordability of the

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deed. The parcel identification number does not constitute a part

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of the legal description of the real property set forth in the

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deed and may not be used as a substitute for the legal

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description of the property interest being relinquished.

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     (3) This form of relinquishment of ownership may be used

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only if title to the real property cannot be cured in any other

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manner or in a transaction that involves familial relationships.

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     (4) The quitclaim deed must be executed and acknowledged as

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is now or may hereafter be provided by the law regulating the

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transfer of realty by deed.

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     Section 3.  Section 817.545, Florida Statutes, is amended to

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read:

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     817.545 Residential mortgage fraud.--

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     (1)  For the purposes of the section, the term "mortgage

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lending process" means the process through which a person seeks

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or obtains a residential mortgage loan, including, but not

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limited to, the solicitation, application or origination,

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negotiation of terms, third-party provider services,

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underwriting, signing and closing, and funding of the loan.

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Documents involved in the mortgage lending process include, but

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are not limited to, mortgages, deeds, surveys, inspection

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reports, uniform residential loan applications, or other loan

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applications; appraisal reports; HUD-1 settlement statements;

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supporting personal documentation for loan applications such as

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W-2 forms, verifications of income and employment, credit

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reports, bank statements, tax returns, and payroll stubs; and any

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required disclosures.

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     (2)  A person commits the offense of mortgage fraud if, with

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the intent to defraud, the person knowingly:

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     (a)  Makes any material misstatement, misrepresentation, or

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omission during the mortgage lending process with the intention

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that the misstatement, misrepresentation, or omission will be

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relied on by a mortgage lender, borrower, or any other person or

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entity involved in the mortgage lending process; however,

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omissions on a loan application regarding employment, income, or

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assets for a loan which does not require this information are not

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considered a material omission for purposes of this subsection.

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     (b)  Uses or facilitates the use of any material

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misstatement, misrepresentation, or omission during the mortgage

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lending process with the intention that the material

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misstatement, misrepresentation, or omission will be relied on by

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a mortgage lender, borrower, or any other person or entity

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involved in the mortgage lending process; however, omissions on a

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loan application regarding employment, income, or assets for a

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loan which does not require this information are not considered a

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material omission for purposes of this subsection.

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     (c)  Receives any proceeds or any other funds in connection

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with the mortgage lending process that the person knew resulted

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from a violation of paragraph (a) or paragraph (b).

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     (d)  Files or causes to be filed with the clerk of the

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circuit court for any county of this state a document involved in

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the mortgage lending process which contains a material

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misstatement, misrepresentation, or omission.

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     (3)  An offense of mortgage fraud may not be predicated

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solely upon information lawfully disclosed under federal

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disclosure laws, regulations, or interpretations related to the

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mortgage lending process.

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     (4)  For the purpose of venue under this section, any

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violation of this section is considered to have been committed:

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     (a)  In the county in which the real property is located; or

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     (b)  In any county in which a material act was performed in

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furtherance of the violation.

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     (5)(a) If only one parcel of real property is subject to

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the mortgage lending process or the total value of the loan is

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$100,000 or less, a any person who violates subsection (2)

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commits a felony of the third degree, punishable as provided in

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s. 775.082, s. 775.083, or s. 775.084.

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     (b) If two or more parcels of real property are subject to

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the mortgage lending process or the total value of the loan is

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greater than $100,000, a person who violates subsection (2)

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commits a felony of the second degree, punishable as provided in

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s. 775.082, s. 775.083, or s. 775.084.

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     Section 4. Statewide Mortgage Fraud Council.--

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     (1) INTENT.--The Legislature finds that there is a need to

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develop and implement a statewide strategy to address mortgage

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fraud within or affecting this state.

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     (2) ESTABLISHMENT.--The Statewide Mortgage Fraud Council is

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established within the Department of Law Enforcement for the

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purpose of combating mortgage fraud throughout the state.

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     (a) The council shall have an executive director appointed

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by the executive director of the department who shall carry out

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the tasks of the council as directed by the council. The

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department shall provide administrative support to the council.

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     (b) The council shall be composed of the following members:

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     1. The executive director of the Department of Law

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Enforcement, who shall be the chair of the council.

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     2. The statewide prosecutor.

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     3. The Attorney General or a designee who is knowledgeable

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about economic crimes.

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     4. The Commissioner of Financial Regulation or a designee

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who is knowledgeable about mortgage lending and related financial

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institutions.

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     5. The executive director of the Department of Revenue or a

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designee who is knowledgeable about ad valorem property

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valuation.

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     6. A member of the Florida Real Estate Appraisal Board.

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     (3) DUTIES.--The council may:

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     (a) Collect data about and serve as a resource and

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clearinghouse for information relating to mortgage fraud,

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including ongoing investigations and prosecutions around the

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state which involve mortgage fraud.

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     (b) Coordinate and initiate statewide or regional mortgage

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fraud investigations through the statewide prosecutor or local

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state attorneys.

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     (c) Subject to appropriation, establish a statewide toll-

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free hotline for reporting mortgage fraud, providing information

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and resources to the public regarding mortgage fraud, and routing

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reports of mortgage fraud to the appropriate law enforcement and

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prosecutorial agencies and the regional councils.

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     (d) In conjunction with state agencies responsible for

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determining training needs and establishing training standards

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for law enforcement officers, state attorneys, and regulatory

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personnel, identify and make recommendations relating to

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equipment and training, including continued training for state

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licensure or certification, to ensure that the needs of this

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state with regard to preparing, equipping, and training law

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enforcement officers, state attorneys, and regulatory personnel

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to combat mortgage fraud are identified and addressed. In making

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such recommendations, the council shall identify all resources

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and funding sources that may be available to support and fund

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such efforts.

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     (e) Propose legislation to eliminate and prevent mortgage

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fraud, including measures that close loopholes in procedures for

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making mortgage loans and prevent practices by property

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appraisers which provide opportunities for mortgage fraud.

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     (f) Establish regional mortgage fraud councils as provided

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in subsection (4).

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     (4) REGIONAL COUNCILS.--A regional mortgage fraud council

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shall be established in each of the seven operational regions of

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the Department of Law Enforcement. The department shall provide

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dedicated staff to support the functions and activities of the

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regional councils.

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     (a) Each regional council shall be co-chaired by the

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department's special agent in charge of the operational region in

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which the council is located and by a local sheriff or chief of

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police from within the operational region.

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     (b) Regional council membership may include representatives

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of local law enforcement agencies, the state attorney's office,

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the county property appraiser, industry professionals, including

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property appraisers, mortgage brokers and bankers, and other

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affected professions, and business leaders.

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     (c) The co-chairs of a regional council may appoint

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committees and committee chairs as necessary to address issues

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related to the various disciplines represented on the council,

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including a law enforcement, regulatory, business partnership,

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education, or victims assistance committee. The committee chair

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shall serve at the pleasure of the co-chairs.

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     (d) Each regional council, with oversight and direction

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from the Statewide Mortgage Fraud Council, shall:

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     1. Organize, with local law enforcement agencies, sheriff's

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departments, and state attorneys, coordinated local initiatives

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to address mortgage fraud.

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     2. Coordinate efforts to enforce s. 817.545, Florida

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Statutes, and other related state and federal laws to ensure that

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such efforts are not fragmented or unnecessarily duplicative.

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     3. Coordinate training for local and state personnel

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relating to ss. 193.133 and 817.545, Florida Statutes, and other

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related state and federal laws.

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     4. Coordinate the collection and dissemination of state and

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local investigative information relating to mortgage fraud within

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each region.

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     5. Incorporate other objectives reasonably related to the

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goal of enhancing the state's ability to detect, prevent, and

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respond to mortgage fraud within or affecting this state. Each

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regional council shall take into account the unique conditions

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and resources within its region.

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     (5) MEMBER EXPENSES.--Members of the statewide and regional

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councils shall serve without compensation, but, in accordance

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with s. 112.061, Florida Statutes, are entitled to reimbursement

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for per diem and travel expenses incurred in carrying out the

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duties of the council.

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     Section 5.  This act shall take effect July 1, 2008.