| 1 | A bill to be entitled |
| 2 | An act relating to mortgage fraud; creating s. 193.133, |
| 3 | F.S.; requiring law enforcement agencies to notify |
| 4 | property appraisers of incidents of mortgage fraud under |
| 5 | certain circumstances; authorizing property appraisers to |
| 6 | adjust property assessments under certain circumstances; |
| 7 | requiring property appraisers to reassess certain |
| 8 | properties under certain circumstances; amending s. |
| 9 | 817.545, F.S.; providing an increased penalty for certain |
| 10 | types of mortgage fraud; providing an effective date. |
| 11 |
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| 12 | Be It Enacted by the Legislature of the State of Florida: |
| 13 |
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| 14 | Section 1. Section 193.133, Florida Statutes, is created |
| 15 | to read: |
| 16 | 193.133 Effect of mortgage fraud on property |
| 17 | assessments.-- |
| 18 | (1) Upon the finding of probable cause of any person for |
| 19 | the crime of mortgage fraud, as defined in s. 817.545, or any |
| 20 | other fraud involving real property that may have artificially |
| 21 | inflated or could artificially inflate the value of property |
| 22 | affected by such fraud, the arresting agency shall promptly |
| 23 | notify the property appraiser of the county in which such |
| 24 | property or properties are located of the nature of the alleged |
| 25 | fraud and the property or properties affected. If notification |
| 26 | as required in this section would jeopardize or negatively |
| 27 | impact a continuing investigation, notification may be delayed |
| 28 | until such time as notice may be made without such effect. |
| 29 | (2) The property appraiser may adjust the assessment of |
| 30 | any affected real property. |
| 31 | (3) Upon a conviction of fraud as defined in subsection |
| 32 | (1), the property appraiser of the county in which such property |
| 33 | or properties are located shall, if necessary, reassess such |
| 34 | property or properties affected by such fraud. |
| 35 | Section 2. Subsection (5) of section 817.545, Florida |
| 36 | Statutes, is amended to read: |
| 37 | 817.545 Mortgage fraud.-- |
| 38 | (2) A person commits the offense of mortgage fraud if, |
| 39 | with the intent to defraud, the person knowingly: |
| 40 | (a) Makes any material misstatement, misrepresentation, or |
| 41 | omission during the mortgage lending process with the intention |
| 42 | that the misstatement, misrepresentation, or omission will be |
| 43 | relied on by a mortgage lender, borrower, or any other person or |
| 44 | entity involved in the mortgage lending process; however, |
| 45 | omissions on a loan application regarding employment, income, or |
| 46 | assets for a loan which does not require this information are |
| 47 | not considered a material omission for purposes of this |
| 48 | subsection. |
| 49 | (b) Uses or facilitates the use of any material |
| 50 | misstatement, misrepresentation, or omission during the mortgage |
| 51 | lending process with the intention that the material |
| 52 | misstatement, misrepresentation, or omission will be relied on |
| 53 | by a mortgage lender, borrower, or any other person or entity |
| 54 | involved in the mortgage lending process; however, omissions on |
| 55 | a loan application regarding employment, income, or assets for a |
| 56 | loan which does not require this information are not considered |
| 57 | a material omission for purposes of this subsection. |
| 58 | (c) Receives any proceeds or any other funds in connection |
| 59 | with the mortgage lending process that the person knew resulted |
| 60 | from a violation of paragraph (a) or paragraph (b). |
| 61 | (d) Files or causes to be filed with the clerk of the |
| 62 | circuit court for any county of this state a document involved |
| 63 | in the mortgage lending process which contains a material |
| 64 | misstatement, misrepresentation, or omission. |
| 65 | (5)(a) Any person who violates subsection (2) commits a |
| 66 | felony of the third degree, punishable as provided in s. |
| 67 | 775.082, s. 775.083, or s. 775.084. |
| 68 | (b) Any person who violates subsection (2), and the loan |
| 69 | value stated on documents used in the mortgage lending process |
| 70 | exceeds $100,000, commits a felony of the second degree, |
| 71 | punishable as provided in s. 775.082, s. 775.083, or s. 775.084. |
| 72 | Section 3. This act shall take effect July 1, 2008. |