| 1 | A bill to be entitled |
| 2 | An act relating to real property fraud; creating s. |
| 3 | 193.133, F.S.; requiring law enforcement agencies to |
| 4 | notify property appraisers of incidents of mortgage fraud; |
| 5 | requiring property appraisers to reconsider property |
| 6 | assessments under certain circumstances; amending s. |
| 7 | 817.545, F.S.; increasing penalties for certain types of |
| 8 | mortgage fraud; creating a Statewide Mortgage Fraud |
| 9 | Council within the Department of Legal Affairs; providing |
| 10 | for membership; providing duties of the council; providing |
| 11 | for establishing regional mortgage fraud councils; |
| 12 | providing for membership; providing duties of regional |
| 13 | councils; providing for reimbursement of members' per diem |
| 14 | and travel expenses; providing an effective date. |
| 15 |
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| 16 | WHEREAS, mortgage fraud is a significant problem |
| 17 | throughout the United States and is having a particularly |
| 18 | damaging affect on mortgage investors and homeowners in this |
| 19 | state, and |
| 20 | WHEREAS, certain types of mortgage fraud result in an |
| 21 | artificial inflation in the value of residential property, which |
| 22 | is directly correlated with an increase in the number of |
| 23 | foreclosure filings, and |
| 24 | WHEREAS, this state is ranked number one in incidents of |
| 25 | mortgage fraud and also has one of the highest foreclosure rates |
| 26 | in the nation, and |
| 27 | WHEREAS, the escalation of property values also causes an |
| 28 | increase in property taxes further making homeownership less |
| 29 | affordable in this state, and |
| 30 | WHEREAS, providing enhanced penalties for multiple or more |
| 31 | egregious instances of mortgage fraud, providing a uniform form |
| 32 | for quitclaim deeds, establishing a statewide and regional |
| 33 | councils to coordinate investigations of and solutions to |
| 34 | mortgage fraud, and allowing county property appraisers to |
| 35 | disqualify fraudulent property appraisals when deriving just |
| 36 | valuation will help combat and reduce the effect of mortgage |
| 37 | fraud, NOW, THEREFORE, |
| 38 |
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| 39 | Be It Enacted by the Legislature of the State of Florida: |
| 40 |
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| 41 | Section 1. Section 193.133, Florida Statutes, is created |
| 42 | to read: |
| 43 | 193.133 Effect of mortgage fraud on property |
| 44 | assessments.-- |
| 45 | (1) Any state or local law enforcement agency shall |
| 46 | provide notification of an incident of mortgage fraud, as |
| 47 | defined in s. 817.545, or other fraud involving real property |
| 48 | which may artificially inflate the value of the property, to the |
| 49 | property appraiser of the county in which the property is |
| 50 | located within 7 business days after learning of such incident. |
| 51 | (2) Upon notification of an incident of mortgage fraud or |
| 52 | any other fraud involving real property which may artificially |
| 53 | inflate the value of the property, the property appraiser shall |
| 54 | revisit the property assessment and consider the effect of the |
| 55 | fraud on the just valuation of the property. |
| 56 | (3) The property appraiser may adjust his or her |
| 57 | assessment of the property retroactive to the initial date of |
| 58 | the occurrence of the mortgage fraud. |
| 59 | Section 2. Subsection (5) of section 817.545, Florida |
| 60 | Statutes, is amended to read: |
| 61 | 817.545 Residential mortgage fraud.-- |
| 62 | (5)(a) If only one parcel of real property is subject to |
| 63 | the mortgage lending process or the total value of the loan is |
| 64 | $100,000 or less, a any person who violates subsection (2) |
| 65 | commits a felony of the third degree, punishable as provided in |
| 66 | s. 775.082, s. 775.083, or s. 775.084. |
| 67 | (b) If two or more parcels of real property are subject to |
| 68 | the mortgage lending process or the total value of the loan is |
| 69 | greater than $100,000, a person who violates subsection (2) |
| 70 | commits a felony of the second degree, punishable as provided in |
| 71 | s. 775.082, s. 775.083, or s. 775.084. |
| 72 | Section 3. Statewide Mortgage Fraud Council.-- |
| 73 | (1) INTENT.--The Legislature finds that there is a need to |
| 74 | develop and implement a statewide strategy to address mortgage |
| 75 | fraud within or affecting this state. |
| 76 | (2) ESTABLISHMENT.--The Statewide Mortgage Fraud Council |
| 77 | is established within the Department of Law Enforcement for the |
| 78 | purpose of combating mortgage fraud throughout the state. |
| 79 | (a) The council shall have an executive director appointed |
| 80 | by the executive director of the department who shall carry out |
| 81 | the tasks of the council as directed by the council. The |
| 82 | department shall provide administrative support to the council. |
| 83 | (b) The council shall be composed of the following |
| 84 | members: |
| 85 | 1. The executive director of the Department of Law |
| 86 | Enforcement, who shall be the chair of the council. |
| 87 | 2. The statewide prosecutor. |
| 88 | 3. The Attorney General or a designee who is knowledgeable |
| 89 | about economic crimes. |
| 90 | 4. The Commissioner of Financial Regulation or a designee |
| 91 | who is knowledgeable about mortgage lending and related |
| 92 | financial institutions. |
| 93 | 5. The executive director of the Department of Revenue or |
| 94 | a designee who is knowledgeable about ad valorem property |
| 95 | valuation. |
| 96 | 6. A member of the Florida Real Estate Appraisal Board. |
| 97 | (3) DUTIES.--The council may: |
| 98 | (a) Collect data about and serve as a resource and |
| 99 | clearinghouse for information relating to mortgage fraud, |
| 100 | including ongoing investigations and prosecutions around the |
| 101 | state which involve mortgage fraud. |
| 102 | (b) Coordinate and initiate statewide or regional mortgage |
| 103 | fraud investigations through the statewide prosecutor or local |
| 104 | state attorneys. |
| 105 | (c) Subject to appropriation, establish a statewide toll- |
| 106 | free hotline for reporting mortgage fraud, providing information |
| 107 | and resources to the public regarding mortgage fraud, and |
| 108 | routing reports of mortgage fraud to the appropriate law |
| 109 | enforcement and prosecutorial agencies and the regional |
| 110 | councils. |
| 111 | (d) In conjunction with state agencies responsible for |
| 112 | determining training needs and establishing training standards |
| 113 | for law enforcement officers, state attorneys, and regulatory |
| 114 | personnel, identify and make recommendations relating to |
| 115 | equipment and training, including continued training for state |
| 116 | licensure or certification, to ensure that the needs of this |
| 117 | state with regard to preparing, equipping, and training law |
| 118 | enforcement officers, state attorneys, and regulatory personnel |
| 119 | to combat mortgage fraud are identified and addressed. In making |
| 120 | such recommendations, the council shall identify all resources |
| 121 | and funding sources that may be available to support and fund |
| 122 | such efforts. |
| 123 | (e) Propose legislation to eliminate and prevent mortgage |
| 124 | fraud, including measures that close loopholes in procedures for |
| 125 | making mortgage loans and prevent practices by property |
| 126 | appraisers which provide opportunities for mortgage fraud. |
| 127 | (f) Establish regional mortgage fraud councils as provided |
| 128 | in subsection (4). |
| 129 | (4) REGIONAL COUNCILS.--A regional mortgage fraud council |
| 130 | shall be established in each of the seven operational regions of |
| 131 | the Department of Law Enforcement. The department shall provide |
| 132 | dedicated staff to support the functions and activities of the |
| 133 | regional councils. |
| 134 | (a) Each regional council shall be co-chaired by the |
| 135 | department's special agent in charge of the operational region |
| 136 | in which the council is located and by a local sheriff or chief |
| 137 | of police from within the operational region. |
| 138 | (b) Regional council membership may include |
| 139 | representatives of local law enforcement agencies, the state |
| 140 | attorney's office, the county property appraiser, industry |
| 141 | professionals, including property appraisers, mortgage brokers |
| 142 | and bankers, and other affected professions, and business |
| 143 | leaders. |
| 144 | (c) The co-chairs of a regional council may appoint |
| 145 | committees and committee chairs as necessary to address issues |
| 146 | related to the various disciplines represented on the council, |
| 147 | including a law enforcement, regulatory, business partnership, |
| 148 | education, or victims assistance committee. The committee chair |
| 149 | shall serve at the pleasure of the co-chairs. |
| 150 | (d) Each regional council, with oversight and direction |
| 151 | from the Statewide Mortgage Fraud Council, shall: |
| 152 | 1. Organize, with local law enforcement agencies, |
| 153 | sheriff's departments, and state attorneys, coordinated local |
| 154 | initiatives to address mortgage fraud. |
| 155 | 2. Coordinate efforts to enforce s. 817.545, Florida |
| 156 | Statutes, and other related state and federal laws to ensure |
| 157 | that such efforts are not fragmented or unnecessarily |
| 158 | duplicative. |
| 159 | 3. Coordinate training for local and state personnel |
| 160 | relating to ss. 193.133 and 817.545, Florida Statutes, and other |
| 161 | related state and federal laws. |
| 162 | 4. Coordinate the collection and dissemination of state |
| 163 | and local investigative information relating to mortgage fraud |
| 164 | within each region. |
| 165 | 5. Incorporate other objectives reasonably related to the |
| 166 | goal of enhancing the state's ability to detect, prevent, and |
| 167 | respond to mortgage fraud within or affecting this state. Each |
| 168 | regional council shall take into account the unique conditions |
| 169 | and resources within its region. |
| 170 | (5) MEMBER EXPENSES.--Members of the statewide and |
| 171 | regional councils shall serve without compensation, but, in |
| 172 | accordance with s. 112.061, Florida Statutes, are entitled to |
| 173 | reimbursement for per diem and travel expenses incurred in |
| 174 | carrying out the duties of the council. |
| 175 | Section 4. This act shall take effect July 1, 2008. |