| 1 | A bill to be entitled |
| 2 | An act relating to residential foreclosure proceedings; |
| 3 | amending s. 501.1377, F.S.; excluding from the definition |
| 4 | of the term "foreclosure-rescue consultant" a person or |
| 5 | entity employed or engaged, directly or indirectly, by the |
| 6 | holder of an obligation or lien on any residential real |
| 7 | property in foreclosure, an attorney in the course of the |
| 8 | practice of law, and title insurers and title agents and |
| 9 | agencies that are licensed or admitted under the Florida |
| 10 | Insurance Code and providing limited services; providing |
| 11 | an effective date. |
| 12 |
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| 13 | Be It Enacted by the Legislature of the State of Florida: |
| 14 |
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| 15 | Section 1. Paragraph (b) of subsection (2) of section |
| 16 | 501.1377, Florida Statutes, is amended to read: |
| 17 | 501.1377 Violations involving homeowners during the course |
| 18 | of residential foreclosure proceedings.-- |
| 19 | (2) DEFINITIONS.--As used in this section, the term: |
| 20 | (b) "Foreclosure-rescue consultant" means a person who |
| 21 | directly or indirectly makes a solicitation, representation, or |
| 22 | offer to a homeowner to provide or perform, in return for |
| 23 | payment of money or other valuable consideration, foreclosure- |
| 24 | related rescue services. The term does not apply to: |
| 25 | 1. A person excluded under s. 501.212. |
| 26 | 2. A person acting under the express authority or written |
| 27 | approval of the United States Department of Housing and Urban |
| 28 | Development or other department or agency of the United States |
| 29 | or this state to provide foreclosure-related rescue services. |
| 30 | 3. A charitable, not-for-profit agency or organization, as |
| 31 | determined by the United States Internal Revenue Service under |
| 32 | s. 501(c)(3) of the Internal Revenue Code, which offers |
| 33 | counseling or advice to an owner of residential real property in |
| 34 | foreclosure or loan default if the agency or organization does |
| 35 | not contract for foreclosure-related rescue services with a for- |
| 36 | profit lender or person facilitating or engaging in foreclosure- |
| 37 | rescue transactions. |
| 38 | 4. A person who holds or is owed an obligation secured by |
| 39 | a lien on any residential real property in foreclosure if the |
| 40 | person performs foreclosure-related rescue services in |
| 41 | connection with this obligation or lien and the obligation or |
| 42 | lien was not the result of or part of a proposed foreclosure |
| 43 | reconveyance or foreclosure-rescue transaction, or a person or |
| 44 | entity employed or engaged, directly or indirectly, by the |
| 45 | holder of such an obligation or lien. |
| 46 | 5. A financial institution as defined in s. 655.005 and |
| 47 | any parent or subsidiary of the financial institution or of the |
| 48 | parent or subsidiary. |
| 49 | 6. A licensed mortgage broker, mortgage lender, or |
| 50 | correspondent mortgage lender that provides mortgage counseling |
| 51 | or advice regarding residential real property in foreclosure, |
| 52 | which counseling or advice is within the scope of services set |
| 53 | forth in chapter 494 and is provided without payment of money or |
| 54 | other consideration other than a mortgage brokerage fee as |
| 55 | defined in s. 494.001. |
| 56 | 7. An attorney licensed to practice law in this state who |
| 57 | is acting on behalf of a client, individually or through the |
| 58 | attorney's law firm, in the course of the practice of law. |
| 59 | 8. Title insurers and licensed title agents and agencies |
| 60 | that are licensed or admitted under the Florida Insurance Code, |
| 61 | to the extent that they are providing title searches or other |
| 62 | information, title insurance, or closing services related to a |
| 63 | foreclosure-rescue transaction or in furtherance of foreclosure- |
| 64 | related rescue services. |
| 65 | Section 2. This act shall take effect upon becoming a law. |