Florida Senate - 2009 CS for CS for SB 2226
By the Committees on Judiciary; Banking and Insurance; and
Banking and Insurance; and Senator Fasano
590-05330-09 20092226c2
1 A bill to be entitled
2 An act relating to mortgage brokering and mortgage
3 lending; amending s. 494.001, F.S.; redefining terms,
4 defining new terms, and deleting terms; amending s.
5 494.0011, F.S.; authorizing the Financial Services
6 Commission to adopt rules relating to compliance with
7 the S.A.F.E. Mortgage Licensing Act of 2008; requiring
8 the commission to adopt rules establishing time
9 periods for barring licensure for certain misdemeanors
10 and felonies; authorizing the Office of Financial
11 Regulation to participate in the Nationwide Mortgage
12 Licensing System and Registry; creating s. 494.00115,
13 F.S.; providing exemptions from part I, II, and III of
14 ch. 494, F.S., relating to the licensing and
15 regulation of loan originators, mortgage brokers, and
16 mortgage lenders; creating s. 494.00135, F.S.;
17 providing for the issuance of subpoenas; amending s.
18 494.0014, F.S.; revising provisions relating to the
19 refund of fees; deleting an obsolete provision;
20 amending s. 494.00165, F.S.; prohibiting unfair and
21 deceptive advertising relating to mortgage brokering
22 and lending; repealing s. 494.0017, F.S., relating to
23 claims paid from the Regulatory Trust Fund; creating
24 s. 494.00172, F.S.; providing for a $20 fee to be
25 assessed against loan originators and a $100 fee to be
26 assessed against mortgage brokers and lenders at the
27 time of license application or renewal; providing that
28 such fees shall be deposited into the Mortgage
29 Guaranty Trust Fund and used to pay claims against
30 licensees; providing for a cap on the amount collected
31 and deposited; providing requirements for seeking
32 recovery from the trust fund; providing limitations on
33 the amount paid; providing for the assignment of
34 certain rights to the office; providing that payment
35 for a claim is prima facie grounds for the revocation
36 of a license; amending s. 494.0018, F.S.; conforming
37 cross-references; amending ss. 494.0019 and 494.002,
38 F.S.; conforming terms; amending s. 494.0023, F.S.;
39 deleting the statutory disclosure form and revising
40 the disclosure that must be provided to a borrower in
41 writing; providing that there is a conflicting
42 interest if a licensee or the licensee’s relatives
43 have a 1 percent or more interest in the person
44 providing additional products or services; authorizing
45 the commission to adopt rules; amending s. 494.0025,
46 F.S.; prohibiting the alteration, withholding,
47 concealment, or destruction of records relevant to
48 regulated activities; creating s. 494.255, F.S.;
49 providing for license violations and administrative
50 penalties; authorizing a fine of $1,000 for each day
51 of unlicensed activity up to $25,000; amending s.
52 494.0026, F.S.; conforming cross-references; amending
53 s. 494.0028, F.S.; conforming terms; repealing ss.
54 494.0029 and 494.00295, F.S., relating to mortgage
55 business schools and continuing education
56 requirements; creating s. 494.00296, F.S.; providing
57 for loan modification services; prohibiting certain
58 related acts by a mortgage broker, mortgage brokerage
59 business, correspondent mortgage lender, or mortgage
60 lender; providing for a loan modification agreement
61 and for the inclusion of a borrower’s right of
62 cancellation statement; providing remedies; amending
63 s. 494.00295, F.S.; deleting references to a mortgage
64 brokerage business and a correspondent mortgage
65 lender, and adding reference to a loan originator;
66 providing a directive to the Division of Statutory
67 Revision; repealing s. 494.003, F.S., relating to
68 exemptions from mortgage broker licensing and
69 regulation; repealing s. 494.0031, F.S., relating to
70 licensure as a mortgage brokerage business; creating
71 s. 494.00312, F.S.; providing for the licensure of
72 loan originators; providing license application
73 requirements; providing grounds for license denial
74 based on a failure to demonstrate character, general
75 fitness, or financial responsibility sufficient to
76 command community confidence; requiring the denial of
77 a license under certain circumstances; requiring
78 licenses to be renewed annually by a certain date;
79 creating s. 494.00313, F.S.; providing for the renewal
80 of a loan originator license; repealing s. 494.0032,
81 F.S., relating to renewal of a mortgage brokerage
82 business license or branch office license; creating s.
83 494.00321, F.S.; providing for the licensure of
84 mortgage brokers; providing license application
85 requirements; providing grounds for license denial
86 based on a failure to demonstrate character, general
87 fitness, or financial responsibility sufficient to
88 command community confidence; requiring the denial of
89 a license under certain circumstances; requiring
90 licenses to be renewed by a certain date; creating s.
91 494.00322, F.S.; providing for the annual renewal of a
92 mortgage broker license; providing license renewal
93 requirements; repealing s. 494.0033, F.S., relating to
94 a mortgage broker license; amending s. 494.00331,
95 F.S.; requiring a loan originator to be an employee or
96 independent contractor for a mortgage broker or
97 mortgage lender; repealing s. 494.0034, F.S., relating
98 to renewal of mortgage broker license; amending s.
99 494.0035, F.S.; providing for the management of a
100 mortgage broker by a principal loan originator and a
101 branch office by a loan originator; providing minimum
102 requirements; amending s. 494.0036, F.S.; revising
103 provisions relating to the licensure of a mortgage
104 broker’s branch office; amending s. 494.0038, F.S.;
105 revising provisions relating to loan origination and
106 mortgage broker fees; amending s. 494.0039, F.S.;
107 conforming terms; amending s. 494.004, F.S.; revising
108 provisions relating to licensees; providing for
109 registry requirements; deleting obsolete provisions;
110 repealing s. 494.0041, F.S., relating to license
111 violations and administrative penalties; providing
112 additional grounds for assessing fines and penalties;
113 amending s. 494.0042, F.S.; providing for loan
114 origination fees; conforming terms; amending ss.
115 494.00421 and 494.0043, F.S.; conforming terms;
116 repealing s. 494.006, F.S., relating to mortgage
117 lender licensing and regulation; repealing s.
118 494.0061, F.S., relating to mortgage lender license
119 requirements; creating s. 494.00611, F.S.; providing
120 for the licensure of mortgage lenders; providing
121 license application requirements; providing grounds
122 for license denial based on a failure to demonstrate
123 character, general fitness, or financial
124 responsibility sufficient to command community
125 confidence; requiring the denial of a license under
126 certain circumstances; requiring licenses to be
127 renewed annually by a certain date; creating s.
128 494.00612, F.S.; providing for the renewal of a
129 mortgage lender license; repealing s. 494.0062, F.S.,
130 relating to correspondent mortgage lender license
131 requirements; amending s. 494.0063, F.S.; requiring a
132 mortgage lender to obtain an annual financial audit
133 report and submit a copy to the office within certain
134 time periods; repealing s. 494.0064, F.S., relating to
135 renewal of mortgage lender license; repealing s.
136 494.0065, F.S., relating to certain licenses and
137 registrations that were converted into mortgage lender
138 licenses; amending s. 494.0066, F.S.; revising
139 provisions relating to a mortgage lender branch office
140 license; creating s. 494.00665, F.S.; providing for a
141 principal loan originator and branch manager for a
142 mortgage lender; providing requirements and
143 limitations; amending s. 494.0067, F.S.; revising
144 requirements of mortgage lenders; providing for
145 registry requirements; deleting obsolete provisions;
146 providing for servicing agreements; amending ss.
147 494.0068, 494.0069, 494.007, and 494.0071, F.S.;
148 conforming terms; repealing s. 494.0072, F.S.,
149 relating to license violations and administrative
150 penalties; amending ss. 494.00721, 494.0073, 494.0075,
151 494.0076, 494.0077, and 501.1377 F.S.; redefining
152 terms and conforming cross-references; amending ss.
153 201.23, 420.507, 520.52, 520.63, 607.0505, and 687.12,
154 F.S.; conforming cross-references; providing for the
155 termination of mortgage business school licenses;
156 providing for the expiration of mortgage brokerage
157 business licenses, mortgage broker licenses, and
158 correspondent mortgage lender licenses; providing
159 requirements for applying for a loan originator,
160 mortgage broker and mortgage lender license by a
161 certain date; providing effective dates.
162
163
164 Be It Enacted by the Legislature of the State of Florida:
165
166 Section 1. Section 494.001, Florida Statutes, is amended to
167 read:
168 494.001 Definitions.—As used in ss. 494.001-494.0077, the
169 term:
170 (1) “Act as a correspondent mortgage lender” means to make
171 a mortgage loan.
172 (2) “Act as a loan originator” means being employed by a
173 mortgage lender or correspondent mortgage lender, for
174 compensation or gain or in the expectation of compensation or
175 gain, to negotiate, offer to negotiate, or assist any licensed
176 or exempt entity in negotiating the making of a mortgage loan,
177 including, but not limited to, working with a licensed or exempt
178 entity to structure a loan or discussing terms and conditions
179 necessary for the delivery of a loan product. A natural person
180 whose activities are ministerial and clerical, which may include
181 quoting available interest rates, is not acting as a loan
182 originator.
183 (3) “Act as a mortgage broker” means, for compensation or
184 gain, or in the expectation of compensation or gain, either
185 directly or indirectly, accepting or offering to accept an
186 application for a mortgage loan, soliciting or offering to
187 solicit a mortgage loan on behalf of a borrower, negotiating or
188 offering to negotiate the terms or conditions of a mortgage loan
189 on behalf of a lender, or negotiating or offering to negotiate
190 the sale of an existing mortgage loan to a noninstitutional
191 investor. An employee whose activities are ministerial and
192 clerical, which may include quoting available interest rates or
193 loan terms and conditions, is not acting as a mortgage broker.
194 (4) “Act as a mortgage lender” means to make a mortgage
195 loan or to service a mortgage loan for others or, for
196 compensation or gain, or in the expectation of compensation or
197 gain, either directly or indirectly, to sell or offer to sell a
198 mortgage loan to a noninstitutional investor.
199 (5) “Associate” means a person required to be licensed as a
200 mortgage broker under this chapter who is employed by or acting
201 as an independent contractor for a mortgage brokerage business
202 or a person acting as an independent contractor for a mortgage
203 lender or correspondent mortgage lender. The use of the term
204 associate, in contexts other than in the administration of ss.
205 494.003-494.0077, shall not be construed to impose or effect the
206 common-law or statutory liability of the employer.
207 (1) “Borrower” means a person obligated to repay a mortgage
208 loan and includes, but is not limited to, a coborrower,
209 cosignor, or guarantor.
210 (2)(6) “Branch manager broker” means the licensed loan
211 originator licensee in charge of, and responsible for, the
212 operation of the a branch office of a mortgage broker or
213 mortgage lender brokerage business.
214 (3)(7) “Branch office” means a location, other than a
215 mortgage broker’s or mortgage lender’s licensee’s principal
216 place of business:
217 (a) The address of which appears on business cards,
218 stationery, or advertising used by the licensee in connection
219 with business conducted under this chapter;
220 (b) At which the licensee’s name, advertising or
221 promotional materials, or signage suggests suggest that mortgage
222 loans are originated, negotiated, funded, or serviced; or
223 (c) At which, due to the actions of any employee or
224 associate of the licensee, may be construed by the public as a
225 branch office of the licensee where mortgage loans are
226 originated, negotiated, funded, or serviced by a licensee.
227 (4)(8) “Commission” means the Financial Services
228 Commission.
229 (5)(9) “Control person” means an individual, partnership,
230 corporation, trust, or other organization that possesses the
231 power, directly or indirectly, to direct the management or
232 policies of a company, whether through ownership of securities,
233 by contract, or otherwise. The term includes, but is not limited
234 to A person is presumed to control a company if, with respect to
235 a particular company, that person:
236 (a) A company’s executive officers, including the
237 president, chief executive officer, chief financial officer,
238 chief operations officer, chief legal officer, chief compliance
239 officer, director, and other individuals having similar status
240 or functions.
241 (b) For a corporation, each shareholder that, directly or
242 indirectly, owns 10 percent or more or that has the power to
243 vote 10 percent or more, of a class of voting securities unless
244 the applicant is a publicly traded company.
245 (c) For a partnership, all general partners and limited or
246 special partners that have contributed 10 percent or more or
247 that have the right to receive, upon dissolution, 10 percent or
248 more of the partnership’s capital.
249 (d) For a trust, each trustee.
250 (e) For a limited liability company, all elected managers
251 and those members that have contributed 10 percent or more or
252 that have the right to receive, upon dissolution, 10 percent or
253 more of the partnership’s capital.
254 (f) Principal loan originators.
255 (6) “Credit report” means any written, oral, or other
256 information obtained from a consumer reporting agency as
257 described in the federal Fair Credit Reporting Act, which bears
258 on an individual’s credit worthiness, credit standing, or credit
259 capacity. A credit score alone, as calculated by the reporting
260 agency, is not considered a credit report.
261 (7) “Credit score” means a score, grade, or value that is
262 derived by using data from a credit report in any type of model,
263 method, or program, whether electronically, in an algorithm, in
264 a computer software or program, or by any other process for the
265 purpose of grading or ranking credit report data.
266 (8) “Depository institution” has the same meaning as in s.
267 (3)(c) of the Federal Deposit Insurance Act, and includes any
268 credit union.
269 (a) Is a director, general partner, or officer exercising
270 executive responsibility or having similar status or functions;
271 (b) Directly or indirectly may vote 10 percent or more of a
272 class of voting securities or sell or direct the sale of 10
273 percent or more of a class of voting securities; or
274 (c) In the case of a partnership, may receive upon
275 dissolution or has contributed 10 percent or more of the
276 capital.
277 (10) “Office” means the Office of Financial Regulation of
278 the commission.
279 (11) “Employed” means engaged in the service of another for
280 salary or wages subject to withholding, FICA, or other lawful
281 deductions by the employer as a condition of employment.
282 (12) “Employee” means a natural person who is employed and
283 who is subject to the right of the employer to direct and
284 control the actions of the employee.
285 (13) “Good standing” means that the registrant or licensee,
286 or a subsidiary or affiliate thereof, is not, at the time of
287 application, being penalized for one or more of the following
288 disciplinary actions by a licensing authority of any state,
289 territory, or country:
290 (a) Revocation of a license or registration.
291 (b) Suspension of a license or registration.
292 (c) Probation of a license or registration for an offense
293 involving fraud, dishonest dealing, or an act of moral
294 turpitude.
295 (9) “Financial audit report” means a report prepared in
296 connection with a financial audit that is conducted in
297 accordance with generally accepted auditing standards prescribed
298 by the American Institute of Certified Public Accountants by a
299 certified public accountant licensed to do business in the
300 United States, and which must include:
301 (a) Financial statements, including notes related to the
302 financial statements and required supplementary information,
303 prepared in conformity with United States generally accepted
304 accounting principles.
305 (b) An expression of opinion regarding whether the
306 financial statements are presented in conformity with United
307 States generally accepted accounting principles, or an assertion
308 to the effect that such an opinion cannot be expressed and the
309 reasons.
310 (10)(14) “Institutional investor” means a depository
311 institution state or national bank, state or federal savings and
312 loan association or savings bank, real estate investment trust,
313 insurance company, real estate company, accredited investor as
314 defined in 17 C.F.R. ss. 230.501 et seq., mortgage broker or
315 mortgage lender business licensed under this chapter ss.
316 494.001-494.0077, or other business entity that invests in
317 mortgage loans, including a secondary mortgage market
318 institution including, without limitation, the Federal National
319 Mortgage Association, the Federal Home Loan Mortgage
320 Corporation, and the Government National Mortgage Association,
321 conduits, investment bankers, and any subsidiary of such
322 entities.
323 (11)(15) “Loan commitment” or “commitment” means a
324 statement by the lender setting forth the terms and conditions
325 upon which the lender is willing to make a particular mortgage
326 loan to a particular borrower.
327 (12) “Loan modification” means a modification to an
328 existing loan. The term does not include a refinancing
329 transaction.
330 (13) “Loan origination fee” means the total compensation
331 from any source received by a mortgage broker acting as a loan
332 originator. Any payment for processing mortgage loan
333 applications must be included in the fee and must be paid to the
334 mortgage broker.
335 (14) “Loan originator” means an individual who, directly or
336 indirectly, solicits or offers to solicit a mortgage loan,
337 accepts or offers to accept an application for a mortgage loan,
338 negotiates or offers to negotiate the terms or conditions of a
339 new or existing mortgage loan on behalf of a borrower or lender,
340 processes a mortgage loan application, or negotiates or offers
341 to negotiate the sale of an existing mortgage loan to a
342 noninstitutional investor for compensation or gain. The term
343 includes the activities of a loan originator as that term is
344 defined in the S.A.F.E. Mortgage Licensing Act of 2008, and an
345 individual acting as a loan originator pursuant to that
346 definition is acting as a loan originator for purposes of this
347 definition. The term does not include an employee of a mortgage
348 broker or mortgage lender who performs only administrative or
349 clerical tasks, including quoting available interest rates,
350 physically handling a completed application form, or
351 transmitting a completed form to a lender on behalf of a
352 prospective borrower.
353 (15)(16) “Lock-in agreement” means an agreement whereby the
354 lender guarantees for a specified number of days or until a
355 specified date the availability of a specified rate of interest
356 or specified formula by which the rate of interest will be
357 determined or and/or specific number of discount points will be
358 given, if the loan is approved and closed within the stated
359 period of time.
360 (16)(17) “Making Make a mortgage loan” means closing to
361 close a mortgage loan in a person’s name, advancing or to
362 advance funds, offering offer to advance funds, or making make a
363 commitment to advance funds to an applicant for a mortgage loan.
364 (17) “Material change” means a change that would be
365 important to a reasonable borrower in making a borrowing
366 decision, and includes a change in the interest rate previously
367 offered a borrower, a change in the type of loan offered to a
368 borrower, or a change in fees to be charged to a borrower
369 resulting in total fees greater than $100.
370 (18) “Mortgage broker” means a person conducting loan
371 originator activities through one or more licensed loan
372 originators employed by the mortgage broker or as independent
373 contractors to the mortgage broker.
374 (18) “Mortgage brokerage fee” means a fee received for
375 acting as a mortgage broker.
376 (19) “Mortgage brokerage business” means a person acting as
377 a mortgage broker.
378 (19) “Mortgage lender” means a person making a mortgage
379 loan or servicing a mortgage loan for others, or, for
380 compensation or gain, directly or indirectly, selling or
381 offering to sell a mortgage loan to a noninstitutional investor.
382 (20)(20) “Mortgage loan” means any:
383 (a) Residential mortgage loan primarily for personal,
384 family, or household use which is secured by a mortgage, deed of
385 trust, or other equivalent consensual security interest on a
386 dwelling, as defined in s. 103(v) of the federal Truth in
387 Lending Act, or for the purchase of residential real estate upon
388 which a dwelling is to be constructed;
389 (b) Loan on commercial real property if the borrower is an
390 individual a natural person or the lender is a noninstitutional
391 investor; or
392 (c) Loan on improved real property consisting of five or
393 more dwelling units if the borrower is an individual a natural
394 person or the lender is a noninstitutional investor.
395 (21) “Mortgage loan application” means the submission of a
396 borrower’s financial information in anticipation of a credit
397 decision, which includes the borrower’s name, the borrower’s
398 monthly income, the borrower’s social security number to obtain
399 a credit report, the property address, an estimate of the value
400 of the property, the mortgage loan amount sought, and any other
401 information deemed necessary by the loan originator. An
402 application may be in writing or electronically submitted,
403 including a written record of an oral application.
404 (22)(21) “Net worth” means total assets minus total
405 liabilities pursuant to United States generally accepted
406 accounting principles.
407 (23)(22) “Noninstitutional investor” means an investor
408 other than an institutional investor.
409 (23) “Nonresidential mortgage loan” means a mortgage loan
410 other than a residential mortgage loan.
411 (24) “Office” means the Office of Financial Regulation.
412 (25)(24) “Person” has the same meaning as in s. 1.01 means
413 an individual, partnership, corporation, association, or other
414 group, however organized.
415 (25) “Principal broker” means a licensee in charge of, and
416 responsible for, the operation of the principal place of
417 business and all branch brokers.
418 (26) “Principal loan originator” means the licensed loan
419 originator in charge of, and responsible for, the operation of a
420 mortgage lender or mortgage broker, including all of the
421 activities of the mortgage lender’s or mortgage broker’s loan
422 originators and branch managers, whether employees or
423 independent contractors.
424 (27)(26) “Principal place of business” means a mortgage
425 broker’s or mortgage lender’s licensee’s primary business
426 office, the street address, or physical location that of which
427 is designated on the application for licensure or any amendment
428 to such application.
429 (28) “Registered loan originator” means a loan originator
430 who is employed by a depository institution, by a subsidiary
431 that is owned and controlled by a depository institution and
432 regulated by a federal banking agency, or by an institution
433 regulated by the Farm Credit Administration, and who is
434 registered with and maintains a unique identifier through the
435 registry.
436 (29) “Registry” means the Nationwide Mortgage Licensing
437 System and Registry, which is the mortgage licensing system
438 developed and maintained by the Conference of State Bank
439 Supervisors and the American Association of Residential Mortgage
440 Regulators for the licensing and registration of loan
441 originators.
442 (30) “Relative” means any of the following, whether by the
443 full or half blood or by adoption:
444 (a) A person’s spouse, father, mother, children, brothers,
445 and sisters.
446 (b) The father, mother, brothers, and sisters of the
447 person’s spouse.
448 (c) The spouses of the person’s children, brothers, or
449 sisters.
450 (27) “Residential mortgage loan” means any mortgage or
451 other security instrument secured by improved real property
452 consisting of no more than four dwelling units.
453 (31) “Servicing endorsement” means authorizing a mortgage
454 lender to service a loan for more than 4 months.
455 (32)(28) “Servicing Service a mortgage loan” means to
456 receive, or cause to be received, or transferred for another,
457 installment payments of principal, interest, or other payments
458 pursuant to a mortgage loan.
459 (33)(29) “Substantial fault of the borrower” means that the
460 borrower:
461 (a) Failed to provide information or documentation required
462 by the lender or broker in a timely manner;
463 (b) Provided information, in the application or
464 subsequently, which upon verification proved to be significantly
465 inaccurate, causing the need for review or further investigation
466 by the lender or broker;
467 (c) Failed to produce by no later than the date specified
468 by the lender all documentation specified in the commitment or
469 closing instructions as being required for closing; or
470 (d) Failed to be ready, willing, or able to close the loan
471 by no later than the date specified by the lender or broker.
472
473 For purposes of this definition, a borrower is considered to
474 have provided information or documentation in a timely manner if
475 such information and documentation was received by the lender
476 within 7 days after the borrower received a request for same,
477 and information is considered significantly inaccurate if the
478 correct information materially affects the eligibility of the
479 borrower for the loan for which application is made.
480 (34)(30) “Ultimate equitable owner” means an individual a
481 natural person who, directly or indirectly, owns or controls an
482 ownership interest in a corporation, a foreign corporation, an
483 alien business organization, or any other form of business
484 organization, regardless of whether the individual such natural
485 person owns or controls such ownership interest through one or
486 more individuals natural persons or one or more proxies, powers
487 of attorney, nominees, corporations, associations, partnerships,
488 trusts, joint stock companies, or other entities or devices, or
489 any combination thereof.
490 (31) “Principal representative” means an individual who
491 operates the business operations of a licensee under part III.
492 (32) “Mortgage loan application” means a submission of a
493 borrower’s financial information in anticipation of a credit
494 decision, whether written or computer-generated, relating to a
495 mortgage loan. If the submission does not state or identify a
496 specific property, the submission is an application for a
497 prequalification and not an application for a mortgage loan
498 under this part. The subsequent addition of an identified
499 property to the submission converts the submission to an
500 application for a mortgage loan.
501 (33) “Mortgage brokerage fee” means the total compensation
502 to be received by a mortgage brokerage business for acting as a
503 mortgage broker.
504 (34) “Business day” means any calendar day except Sunday or
505 a legal holiday.
506 Section 2. Section 494.0011, Florida Statutes, is amended
507 to read:
508 494.0011 Powers and duties of the commission and office.—
509 (1) The office shall be responsible for the administration
510 and enforcement of ss. 494.001-494.0077.
511 (2) The commission may adopt rules pursuant to ss.
512 120.536(1) and 120.54 To administer implement ss. 494.001
513 494.0077,. the commission may adopt rules:
514 (a) Requiring electronic submission of any forms,
515 documents, or fees required by this act if such rules reasonably
516 accommodate technological or financial hardship.
517 (b) Relating to compliance with the S.A.F.E. Mortgage
518 Licensing Act of 2008, including rules to:
519 1. Require loan originators, mortgage brokers, mortgage
520 lenders, and branch offices to register through the registry.
521 2. Require the use of uniform forms that have been approved
522 by the registry, and any subsequent amendments to such forms if
523 the forms are substantially in compliance with the provisions of
524 this chapter. Uniform forms that the commission may adopt
525 include, but are not limited to:
526 a. Uniform Mortgage Lender/Mortgage Broker Form, MU1.
527 b. Uniform Mortgage Biographical Statement & Consent Form,
528 MU2.
529 c. Uniform Mortgage Branch Office Form, MU3.
530 d. Uniform Individual Mortgage License/Registration &
531 Consent Form, MU4.
532 3. Require the filing of forms, documents, and fees in
533 accordance with the requirements of the registry.
534 4. Prescribe requirements for amending or surrendering a
535 license or other activities as the commission deems necessary
536 for the office’s participation in the registry.
537 5. Prescribe procedures that allow a licensee to challenge
538 information contained in the registry.
539 6. Prescribe procedures for reporting violations of this
540 chapter and disciplinary actions on licensees to the registry.
541 The commission may prescribe by rule requirements and procedures
542 for obtaining an exemption due to a technological or financial
543 hardship. The commission may also adopt rules to accept
544 certification of compliance with requirements of this act in
545 lieu of requiring submission of documents.
546 (c) Establishing time periods during which a loan
547 originator, mortgage broker, or mortgage lender license
548 applicant under part II or part III is barred from licensure due
549 to prior criminal convictions of, or guilty or nolo contendre
550 pleas by, any of the applicant’s control persons, regardless of
551 adjudication.
552 1. The rules must provide:
553 a. Permanent bars for felonies involving fraud, dishonesty,
554 breach of trust, or money laundering;
555 b. A 15-year disqualifying period for felonies involving
556 moral turpitude;
557 c. A 7-year disqualifying period for all other felonies;
558 and
559 d. A 5-year disqualifying period for misdemeanors involving
560 fraud, dishonesty, or any other act of moral turpitude.
561 2. The rules may provide for an additional waiting period
562 due to dates of imprisonment or community supervision, the
563 commitment of multiple crimes, and other factors reasonably
564 related to the applicant’s criminal history.
565 3. The rules may provide for mitigating factors for crimes
566 identified in sub-subparagraph 1.b. However, the mitigation may
567 not result in a period of disqualification less than 7 years.
568 The rule may not mitigate the disqualifying periods in sub
569 subparagraphs 1.a., 1.c., and 1.d.
570 4. An applicant is not eligible for licensure until the
571 expiration of the disqualifying period set by rule.
572 5. Section 112.011 is not applicable to eligibility for
573 licensure under this part.
574 (3) Except as provided in s. 494.00172, all fees, charges,
575 and fines collected pursuant to ss. 494.001-494.0077 shall be
576 deposited in the State Treasury to the credit of the Regulatory
577 Trust Fund of under the office.
578 (4) The office shall participate in the registry and shall
579 regularly report to the registry violations of this chapter,
580 disciplinary actions, and other information deemed relevant by
581 the office under this chapter.
582 (4)(a) The office has the power to issue and to serve
583 subpoenas and subpoenas duces tecum to compel the attendance of
584 witnesses and the production of all books, accounts, records,
585 and other documents and materials relevant to an examination or
586 investigation. The office, or its duly authorized
587 representative, has the power to administer oaths and
588 affirmations to any person.
589 (b) The office may, in its discretion, seek subpoenas or
590 subpoenas duces tecum from any court of competent jurisdiction
591 commanding the appearance of witnesses and the production of
592 books, accounts, records, and other documents or materials at a
593 time and place named in the subpoenas; and any authorized
594 representative of the office may serve any subpoena.
595 (5)(a) In the event of substantial noncompliance with a
596 subpoena or subpoena duces tecum issued or caused to be issued
597 by the office, the office may petition the circuit court or any
598 other court of competent jurisdiction of the county in which the
599 person subpoenaed resides or has its principal place of business
600 for an order requiring the subpoenaed person to appear and
601 testify and to produce such books, accounts, records, and other
602 documents as are specified in the subpoena duces tecum. The
603 court may grant injunctive relief restraining the person from
604 advertising, promoting, soliciting, entering into, offering to
605 enter into, continuing, or completing any mortgage loan
606 transaction or mortgage loan servicing transaction. The court
607 may grant such other relief, including, but not limited to, the
608 restraint, by injunction or appointment of a receiver, of any
609 transfer, pledge, assignment, or other disposition of the
610 person’s assets or any concealment, alteration, destruction, or
611 other disposition of books, accounts, records, or other
612 documents and materials as the court deems appropriate, until
613 the person has fully complied with the subpoena duces tecum and
614 the office has completed its investigation or examination. In
615 addition, the court may order the refund of any fees collected
616 in a mortgage loan transaction whenever books and documents
617 substantiating the transaction are not produced or cannot be
618 produced. The office is entitled to the summary procedure
619 provided in s. 51.011, and the court shall advance such cause on
620 its calendar. Attorney’s fees and any other costs incurred by
621 the office to obtain an order granting, in whole or part, a
622 petition for enforcement of a subpoena or subpoena duces tecum
623 shall be taxed against the subpoenaed person, and failure to
624 comply with such order is a contempt of court.
625 (b) When it appears to the office that the compliance with
626 a subpoena or subpoena duces tecum issued or caused to be issued
627 by the office pursuant to this section is essential and
628 otherwise unavailable to an investigation or examination, the
629 office, in addition to the other remedies provided for in this
630 section, may apply to the circuit court or any other court of
631 competent jurisdiction of the county in which the subpoenaed
632 person resides or has its principal place of business for a writ
633 of ne exeat. The court shall thereupon direct the issuance of
634 the writ against the subpoenaed person requiring sufficient bond
635 conditioned on compliance with the subpoena or subpoena duces
636 tecum. The court shall cause to be endorsed on the writ a
637 suitable amount of bond upon the payment of which the person
638 named in the writ shall be freed, having a due regard to the
639 nature of the case.
640 (c) Alternatively, the office may seek a writ of attachment
641 from the court having jurisdiction over the person who has
642 refused to obey a subpoena, who has refused to give testimony,
643 or who has refused to produce the matters described in the
644 subpoena duces tecum.
645 (6) The grant or denial of any license under this chapter
646 must be in accordance with s. 120.60.
647 Section 3. Effective January 1, 2010, section 494.00115,
648 Florida Statutes, is created to read:
649 494.00115 Exemptions.—
650 (1) The following are exempt from regulation under part I,
651 part II, or part III of this chapter:
652 (a) Any person operating exclusively as a registered loan
653 originator in accordance with the S.A.F.E. Mortgage Licensing
654 Act of 2008.
655 (b) A depository institution; subsidiaries that are owned
656 and controlled by a depository institution and regulated by the
657 Board of Governors of the Federal Reserve System, the
658 Comptroller of the Currency, the Director of the Office of
659 Thrift Supervision, the National Credit Union Administration, or
660 the Federal Deposit Insurance Corporation; or institutions
661 regulated by the Farm Credit Administration.
662 (c) The Federal National Mortgage Association; the Federal
663 Home Loan Mortgage Corporation; any agency of the Federal
664 Government; any state, county, or municipal government; or any
665 quasi-governmental agency that acts in such capacity under the
666 specific authority of the laws of any state or the United
667 States.
668 (d) An attorney licensed in this state who negotiates the
669 terms of a mortgage loan on behalf of a client as an ancillary
670 matter to the attorney’s representation of the client.
671 (e) A person involved solely in the extension of credit
672 relating to the purchase of a timeshare plan, as that term is
673 defined in 11 U.S.C. s. 101(53D)
674 (2) The following persons are exempt from regulation under
675 part III of this chapter:
676 (a) A person acting in a fiduciary capacity conferred by
677 the authority of a court.
678 (b) A person who, as a seller of his or her own real
679 property, receives one or more mortgages in a purchase money
680 transaction.
681 (c) A person who acts solely under contract and as an agent
682 for federal, state, or municipal agencies for the purpose of
683 servicing mortgage loans.
684 (d) A person who makes only nonresidential mortgage loans
685 and sells loans only to institutional investors.
686 (e) An individual making or acquiring a mortgage loan using
687 his or her own funds for his or her own investment, and who does
688 not hold himself or herself out to the public as being in the
689 mortgage lending business.
690 (f) An individual selling a mortgage that was made or
691 purchased with that individual’s funds for his or her own
692 investment, and who does not hold himself or herself out to the
693 public as being in the mortgage lending business.
694 (3) It is not necessary to negate any of the exemptions
695 provided in this section in any complaint, information,
696 indictment, or other writ or proceeding brought under ss.
697 494.001-494.0077. The burden of establishing the right to an
698 exemption is on the party claiming the benefit of the exemption.
699 Section 4. Section 494.00135, Florida Statutes, is created
700 to read:
701 494.00135 Subpoenas.—
702 (1) The office may:
703 (a) Issue and serve subpoenas and subpoenas duces tecum to
704 compel the attendance of witnesses and the production of all
705 books, accounts, records, and other documents and materials
706 relevant to an examination or investigation conducted by the
707 office. The office, or its authorized representative, may
708 administer oaths and affirmations to any person.
709 (b) Seek subpoenas or subpoenas duces tecum from any court
710 to command the appearance of witnesses and the production of
711 books, accounts, records, and other documents or materials at a
712 time and place named in the subpoenas, and an authorized
713 representative of the office may serve such subpoena.
714 (2) If there is substantial noncompliance with a subpoena
715 or subpoena duces tecum issued by the office, the office may
716 petition the court in the county where the person subpoenaed
717 resides or has his or her principal place of business for an
718 order requiring the person to appear, testify, or produce such
719 books, accounts, records, and other documents as are specified
720 in the subpoena or subpoena duces tecum.
721 (a) The court may grant injunctive relief restraining the
722 person from advertising, promoting, soliciting, entering into,
723 offering to enter into, continuing, or completing a mortgage
724 loan or servicing a mortgage loan.
725 (b) The court may grant such other relief, including, but
726 not limited to, the restraint, by injunction or appointment of a
727 receiver, of any transfer, pledge, assignment, or other
728 disposition of the person’s assets or any concealment,
729 alteration, destruction, or other disposition of books,
730 accounts, records, or other documents and materials as the court
731 deems appropriate, until the person has fully complied with the
732 subpoena duces tecum and the office has completed its
733 investigation or examination.
734 (c) The court may order the refund of any fees collected in
735 a mortgage loan transaction if books and documents
736 substantiating the transaction are not produced or cannot be
737 produced.
738 (d) If it appears to the office that compliance with a
739 subpoena or subpoena duces tecum issued is essential and
740 otherwise unavailable to an investigation or examination, the
741 office may apply to the court for a writ of ne exeat pursuant to
742 s. 68.02.
743 (e) The office may seek a writ of attachment to obtain all
744 books, accounts, records, and other documents and materials
745 relevant to an examination or investigation.
746 (3) The office is entitled to the summary procedure
747 provided in s. 51.011, and the court shall advance such cause on
748 its calendar. Attorney’s fees and any other costs incurred by
749 the office to obtain an order granting, in whole or in part, a
750 petition for enforcement of a subpoena or subpoena duces tecum
751 shall be taxed against the subpoenaed person, and failure to
752 comply with such order is a contempt of court.
753 Section 5. Section 494.0014, Florida Statutes, is amended
754 to read:
755 494.0014 Cease and desist orders; administrative fines;
756 refund orders.—
757 (1) The office may has the power to issue and serve upon
758 any person an order to cease and desist and to take corrective
759 action if whenever it has reason to believe the person is
760 violating, has violated, or is about to violate any provision of
761 ss. 494.001-494.0077, any rule or order issued under ss.
762 494.001-494.0077, or any written agreement between the person
763 and the office. All procedural matters relating to issuance and
764 enforcement of such a cease and desist order are governed by the
765 Administrative Procedure Act.
766 (2) The office may has the power to order the refund of any
767 fee directly or indirectly assessed and charged on a mortgage
768 loan transaction which is unauthorized or exceeds the maximum
769 fee specifically authorized in ss. 494.001-494.0077, or any
770 amount collected for the payment of third-party fees which
771 exceeds the cost of the service provided.
772 (3) The office may prohibit the association by a mortgage
773 broker business, or the employment by a mortgage lender or
774 correspondent mortgage lender, of any person who has engaged in
775 a pattern of misconduct while an associate of a mortgage
776 brokerage business or an employee of a mortgage lender or
777 correspondent mortgage lender. For the purpose of this
778 subsection, the term “pattern of misconduct” means the
779 commission of three or more violations of ss. 494.001-494.0077
780 or the provisions of chapter 494 in effect prior to October 1,
781 1991, during any 1-year period or any criminal conviction for
782 violating ss. 494.001-494.0077 or the provisions of chapter 494
783 in effect prior to October 1, 1991.
784 (4) The office may impose upon any person who makes or
785 brokers a loan, or any mortgage business school, a fine for
786 violations of any provision of ss. 494.001-494.00295 or any rule
787 or order issued under ss. 494.001-494.00295 in an amount not
788 exceeding $5,000 for each separate count or offense.
789 Section 6. Effective July 1, 2009, section 494.00165,
790 Florida Statutes, is amended to read:
791 494.00165 Prohibited advertising; record requirements.—
792 (1) It is a violation of this chapter for any person to:
793 (a) Advertise that an applicant shall will have unqualified
794 access to credit without disclosing the what material
795 limitations on the availability of such credit exist. Such
796 Material limitations include, but are not limited to, the
797 percentage of down payment required, that a higher rate or
798 points could be required, or that restrictions on as to the
799 maximum principal amount of the loan offered could apply.
800 (b) Advertise a mortgage loan at an expressed interest rate
801 unless the advertisement specifically states that the expressed
802 rate could change or not be available at commitment or closing.
803 (c) Advertise mortgage loans, including rates, margins,
804 discounts, points, fees, commissions, or other material
805 information, including material limitations on such loans,
806 unless the such person is able to make such mortgage loans
807 available to a reasonable number of qualified applicants.
808 (d) Falsely advertise or misuse names indicating a federal
809 agency pursuant to 18 U.S.C. s. 709.
810 (e) Engage in unfair, deceptive, or misleading advertising
811 regarding mortgage loans, brokering services, or lending
812 services.
813 (2) Each person required to be licensed under this chapter
814 must shall maintain a record of samples of each of its
815 advertisements, including commercial scripts of each radio or
816 television broadcast, for examination by the office for a period
817 of 2 years after the date of publication or broadcast.
818 Section 7. Section 494.0017, Florida Statutes, is repealed.
819 Section 8. Section 494.00172, Florida Statutes, is created
820 to read:
821 494.00172 Mortgage Guaranty Trust Fund; payment of fees and
822 claims.—A nonrefundable fee is imposed on each application for a
823 mortgage broker, mortgage lender, or loan originator license and
824 on each annual application for a renewal of such license. For a
825 loan originator, the initial and renewal fee is $20. For
826 mortgage brokers and lenders, the initial and renewal fee is
827 $100. This fee is in addition to the regular application or
828 renewal fee assessed and shall be deposited into the Mortgage
829 Guaranty Trust Fund of the office for the payment of claims in
830 accordance with this section.
831 (1) If the amount in the trust fund exceeds $5 million, the
832 additional fee shall be discontinued and may not be reimposed
833 until the fund is reduced to below $1 million pursuant to
834 disbursements made in accordance with this section.
835 (2) A borrower in a mortgage loan transaction is eligible
836 to seek recovery from the trust fund if all of the following
837 conditions are met:
838 (a) The borrower has recorded a final judgment issued by a
839 state court wherein the cause of action against a licensee under
840 this chapter was based on a violation of this chapter and the
841 damages were the result of that violation.
842 (b) The borrower has caused a writ of execution to be
843 issued upon such judgment, and the officer executing the
844 judgment has made a return showing that no personal or real
845 property of the judgment debtor liable to be levied upon in
846 satisfaction of the judgment can be found or that the amount
847 realized on the sale of the judgment debtor’s property pursuant
848 to such execution is insufficient to satisfy the judgment.
849 (c) The borrower has made all reasonable searches and
850 inquiries to ascertain whether the judgment debtor possesses
851 real or personal property or other assets subject to being sold
852 or applied in satisfaction of the judgment, and has discovered
853 no such property or assets; or he or she has discovered property
854 and assets and has taken all necessary action and proceedings
855 for the application thereof to the judgment, but the amount
856 realized is insufficient to satisfy the judgment.
857 (d) The borrower has applied any amounts recovered from the
858 judgment debtor, or from any other source, to the damages
859 awarded by the court.
860 (e) The borrower, at the time the action was instituted,
861 gave notice and provided a copy of the complaint to the office
862 by certified mail. The requirement of a timely giving of notice
863 may be waived by the office upon a showing of good cause.
864 (f) The act for which recovery is sought occurred on or
865 after January 1, 2011.
866 (3) The requirements of subsection (2) are not applicable
867 if the licensee upon which the claim is sought has filed for
868 bankruptcy or has been adjudicated bankrupt. However, the
869 claimant must file a proof of claim in the bankruptcy
870 proceedings and must notify the office by certified mail of the
871 claim by enclosing a copy of the proof of claim and all
872 supporting documents.
873 (4) Any person who meets all of the conditions in
874 subsection (2) may apply to the office for payment from the
875 trust fund equal to the unsatisfied portion of that person’s
876 judgment or $50,000, whichever is less, but only to the extent
877 that the amount reflected in the judgment is for actual or
878 compensatory damages, plus any attorney’s fees and costs awarded
879 by the trial court which have been determined by the court, and
880 the documented costs associated with attempting to collect the
881 judgment. Actual or compensatory damages may not include
882 postjudgment interest. Attorney’s fees may not exceed $5,000 or
883 20 percent of the actual or compensatory damages, whichever is
884 less. If actual or compensatory damages, plus attorney’s fees
885 and costs, exceed $50,000, actual or compensatory damages must
886 be paid first. The cumulative payment for actual or compensatory
887 damages, plus attorney’s fees and costs, may not exceed $50,000
888 as described in this section.
889 (a) A borrower may not collect more than $50,000 from the
890 trust fund for any claim regardless of the number of licensees
891 liable for the borrower’s damages.
892 (b) Payments for claims are limited in the aggregate to
893 $250,000 against any one licensee under this chapter. If the
894 total claims exceed the aggregate limit of $250,000, the office
895 shall prorate payments based on the ratio that a claim bears to
896 the total claims filed.
897 (c) Payments shall be made to all persons meeting the
898 requirements of subsection (2) 2 years after the date the first
899 complete and valid notice is received by the office. Persons who
900 give notice after 2 years and who otherwise comply with the
901 conditions precedent to recovery may recover from any remaining
902 portion of the $250,000 aggregate as provided in this
903 subsection, with claims being paid in the order notice was
904 received until the $250,000 aggregate has been disbursed.
905 (d) The claimant shall assign his or her right, title, and
906 interest in the judgment, to the extent of his or her recovery
907 from the fund, to the office and shall record, at his or her own
908 expense, the assignment of judgment in every county where the
909 judgment is recorded.
910 (e) If the money in the fund is insufficient to satisfy any
911 valid claim or portion thereof, the office shall satisfy such
912 unpaid claim or portion as soon as a sufficient amount of money
913 has been deposited in the trust fund. If there is more than one
914 unsatisfied claim outstanding, such claims shall be paid in the
915 order in which the claims were filed with the office.
916 (f) The payment of any amount from the fund in settlement
917 of a claim or in satisfaction of a judgment against a licensee
918 constitutes prima facie grounds for the revocation of the
919 license.
920 Section 9. Section 494.0018, Florida Statutes, is amended
921 to read:
922 494.0018 Penalties.—
923 (1) Whoever knowingly violates any provision of s.
924 494.00255(1)(a), (b), or (c) s. 494.0041(2)(e), (f), or (g); s.
925 494.0072(2)(e), (f), or (g); or s. 494.0025(1), (2), (3), (4),
926 or (5), except as provided in subsection (2) of this section,
927 commits is guilty of a felony of the third degree, punishable as
928 provided in s. 775.082, s. 775.083, or s. 775.084. Each such
929 violation constitutes a separate offense.
930 (2) Any person who violates convicted of a violation of any
931 provision of ss. 494.001-494.0077, in which violation the total
932 value of money and property unlawfully obtained exceeds exceeded
933 $50,000 and there are were five or more victims, commits is
934 guilty of a felony of the first degree, punishable as provided
935 in s. 775.082, s. 775.083, or s. 775.084.
936 Section 10. Effective July 1, 2009, section 494.0019,
937 Florida Statutes, is amended to read:
938 494.0019 Liability in case of unlawful transaction.—
939 (1) If a mortgage loan transaction is made in violation of
940 any provision of ss. 494.001-494.0077, the person making the
941 transaction and every licensee, director, or officer who
942 participated in making the transaction are jointly and severally
943 liable to every party to the transaction in an action for
944 damages incurred by the party or parties.
945 (2) A person is not liable under this section upon a
946 showing that such person’s licensees, officers, and directors
947 who participated in making the mortgage loan transaction, if
948 any, acted in good faith and without knowledge and, with the
949 exercise of due diligence, could not have known of the act
950 committed in violation of ss. 494.001-494.0077.
951 Section 11. Effective July 1, 2009, section 494.002,
952 Florida Statutes, is amended to read:
953 494.002 Statutory or common-law remedies.—Sections Nothing
954 in ss. 494.001-494.0077 do not limit limits any statutory or
955 common-law right of any person to bring any action in any court
956 for any act involved in the mortgage loan business or the right
957 of the state to punish any person for any violation of any law.
958 Section 12. Section 494.0023, Florida Statutes, is amended
959 to read:
960 494.0023 Conflicting interest.—
961 (1) If, in a mortgage transaction, a licensee has a
962 conflicting interest as specified in subsection (2), the
963 licensee shall, at a minimum, provide the following disclosures
964 to the borrower in writing:
965 (a) The nature of the relationship, ownership, or financial
966 interest between the provider of products or services, or
967 business incident thereto, and the licensee making the referral;
968 The type of conflicting interest shall be fully and fairly
969 disclosed.
970 (b) An estimated charge or range of charges generally made
971 by such a provider; The licensee shall inform the borrower in
972 writing
973 (c) That a financial benefit may be received by the
974 licensee as a result of the conflicting interest; and.
975 (d)(c) The borrower shall be informed That alternative
976 sources may be chosen by the borrower to provide the any
977 required products or services. The following language must be
978 contained in 12-point type in any agreement between a mortgage
979 broker, mortgage lender, or correspondent mortgage lender and a
980 borrower in substantially this form:
981
982 You are not required to purchase additional products or services
983 from any person or entity suggested or recommended by
984 (Broker/Lender/Correspondent Lender). However, the
985 (Broker/Lender/Correspondent Lender) hereby reserves the right
986 to approve the entity selected by the borrower, which approval
987 may not be unreasonably withheld.
988 (2) A licensee has a conflicting interest if:
989 (a) The licensee or the licensee’s relative provides the
990 borrower with additional products or services;
991 (b) The licensee or licensee’s relative, either directly or
992 indirectly, owns, controls, or holds with power to vote, or
993 holds proxies representing, 1 10 percent or more of any class of
994 equity securities or other beneficial interest in the such
995 person providing the additional products or services;
996 (c) The person providing the additional products or
997 services, either directly or indirectly, owns, controls, or
998 holds the power to vote, or holds proxies representing, 1 10
999 percent or more of any class of equity securities or other
1000 beneficial interest in the licensee;
1001 (d) A holding company, either directly or indirectly, owns,
1002 controls, or holds with power to vote, or holds proxies
1003 representing, 1 10 percent or more of any class of equity
1004 securities or other beneficial interest in both the licensee and
1005 the person providing the additional products or services;
1006 (e) One or more persons, or such person’s relative, sits as
1007 an officer or director, or performs similar functions as an
1008 officer or director, for both the licensee and the person
1009 providing the additional products or services; or
1010 (f) The licensee or the licensee’s relative sits as an
1011 officer or director, or performs similar functions as an officer
1012 or director, of the person providing the additional products or
1013 services.
1014 (3) The commission may adopt rules to administer the
1015 disclosure requirements of this section. The rules must consider
1016 the disclosure requirements of the federal Real Estate
1017 Settlement Procedures Act, 12 U.S.C. ss. 2601 et seq.; the
1018 federal Truth in Lending Act, 15 U.S.C. et seq.; and related
1019 federal regulations.
1020 (3) As used in this section, the term “relative” of any
1021 natural person means any of the following persons, whether by
1022 the full or half blood or by adoption:
1023 (a) Such person’s spouse, father, mother, children,
1024 brothers, and sisters.
1025 (b) The father, mother, brothers, and sisters of such
1026 person’s spouse.
1027 (c) The spouses of children, brothers, or sisters of such
1028 person.
1029 Section 13. Section 494.0025, Florida Statutes, is amended
1030 to read:
1031 494.0025 Prohibited practices.—It is unlawful for any
1032 person:
1033 (1) To act as a mortgage lender in this state without a
1034 current, active license issued by the office pursuant to ss.
1035 494.006-494.0077.
1036 (1)(2) To act as a loan originator correspondent mortgage
1037 lender in this state without a current, active license issued by
1038 the office pursuant to part II of this chapter ss. 494.006
1039 494.0077.
1040 (2)(3) To act as a mortgage broker in this state without a
1041 current, active license issued by the office pursuant to part II
1042 of this chapter ss. 494.003-494.0043.
1043 (3) To act as a mortgage lender in this state without a
1044 current, active license issued by the office pursuant to part
1045 III of this chapter.
1046 (4) In any practice or transaction or course of business
1047 relating to the sale, purchase, negotiation, promotion,
1048 advertisement, or hypothecation of mortgage loan transactions,
1049 directly or indirectly:
1050 (a) To knowingly or willingly employ any device, scheme, or
1051 artifice to defraud;
1052 (b) To engage in any transaction, practice, or course of
1053 business which operates as a fraud upon any person in connection
1054 with the purchase or sale of any mortgage loan; or
1055 (c) To obtain property by fraud, willful misrepresentation
1056 of a future act, or false promise.
1057 (5) In any matter within the jurisdiction of the office, to
1058 knowingly and willfully falsify, conceal, or cover up by a
1059 trick, scheme, or device a material fact, make any false or
1060 fraudulent statement or representation, or make or use any false
1061 writing or document, knowing the same to contain any false or
1062 fraudulent statement or entry.
1063 (6) To violate s. 655.922(2), subject to ss. 494.001
1064 494.0077.
1065 (7) Who is required to be licensed under ss. 494.006
1066 494.0077, to fail to report to the office the failure to meet
1067 the net worth requirements of s. 494.0061, s. 494.0062, or s.
1068 494.0065 within 48 hours after the person’s knowledge of such
1069 failure or within 48 hours after the person should have known of
1070 such failure.
1071 (7)(8) To pay a fee or commission in any mortgage loan
1072 transaction to any person or entity other than a licensed
1073 mortgage broker brokerage business, mortgage lender, or
1074 correspondent mortgage lender, operating under an active
1075 license, or a person exempt from licensure under this chapter.
1076 (8)(9) To record a mortgage broker brokerage agreement or
1077 any other document, not rendered by a court of competent
1078 jurisdiction, which purports to enforce the terms of the
1079 mortgage brokerage agreement.
1080 (9)(10) To use the name or logo of a financial institution,
1081 as defined in s. 655.005(1), or its affiliates or subsidiaries
1082 when marketing or soliciting existing or prospective customers
1083 if such marketing materials are used without the written consent
1084 of the financial institution and in a manner that would lead a
1085 reasonable person to believe that the material or solicitation
1086 originated from, was endorsed by, or is related to or the
1087 responsibility of the financial institution or its affiliates or
1088 subsidiaries.
1089 (10) Subject to investigation or examination under this
1090 chapter, to knowingly alter, withhold, conceal, or destroy any
1091 books, records, computer records, or other information relating
1092 to a person’s activities which subject the person to the
1093 jurisdiction of this chapter.
1094 Section 14. Section 494.00255, Florida Statutes, is created
1095 to read:
1096 494.00255 Administrative penalties and fines; license
1097 violations.—
1098 (1) Each of the following acts constitutes a ground for
1099 which the disciplinary actions specified in subsection (2) may
1100 be taken against a person licensed or required to be licensed
1101 under part II or part III of this chapter:
1102 (a) Failure to immediately place upon receipt, and maintain
1103 until authorized to disburse, any money entrusted to the
1104 licensee as a licensee in a segregated account of a federally
1105 insured financial institution in this state.
1106 (b) Failure to account or deliver to any person any
1107 property that is not the licensee’s, or that the licensee is not
1108 entitled to retain, under the circumstances and at the time that
1109 has been agreed upon or as required by law or, in the absence of
1110 a fixed time, upon demand of the person entitled to such
1111 accounting and delivery.
1112 (c) Failure to disburse funds in accordance with
1113 agreements.
1114 (d) Any misuse, misapplication, or misappropriation of
1115 personal property entrusted to the licensee’s care to which the
1116 licensee had no current property right at the time of
1117 entrustment.
1118 (e) Fraud, misrepresentation, deceit, negligence, or
1119 incompetence in any mortgage financing transaction.
1120 (f) Requesting a specific valuation, orally or in writing,
1121 from an appraiser for a particular property, implying to an
1122 appraiser that a specific valuation is needed for a particular
1123 property, or in any manner conditioning the order for an
1124 appraisal on the appraisal meeting a specific valuation. The
1125 numeric value of the specific valuation sought need not be
1126 stated, but rather the mere statement that a specific valuation
1127 is sought, violates this section.
1128 (g) Consistently and materially underestimating maximum
1129 closing costs.
1130 (h) Disbursement, or an act which has caused or will cause
1131 disbursement, to any person in any amount from the Mortgage
1132 Guaranty Trust Fund, the Securities Guaranty Fund, or the
1133 Florida Real Estate Recovery Fund, regardless of any repayment
1134 or restitution to the disbursed fund by the licensee or any
1135 person acting on behalf of the licensee.
1136 (i) Commission of fraud, misrepresentation, concealment, or
1137 dishonest dealing by trick, scheme, or device; culpable
1138 negligence; breach of trust in any business transaction in any
1139 state, nation, or territory; or aiding, assisting, or conspiring
1140 with any other person engaged in any such misconduct and in
1141 furtherance thereof.
1142 (j) Being convicted of, or entering a plea of guilty or
1143 nolo contendere to, regardless of adjudication, any felony or
1144 any crime involving fraud, dishonesty, breach of trust, money
1145 laundering, or act of moral turpitude.
1146 (k) Having a final judgment entered against the licensee in
1147 a civil action upon grounds of fraud, embezzlement,
1148 misrepresentation, or deceit.
1149 (l) Having been the subject of any:
1150 1. Decision, finding, injunction, suspension, prohibition,
1151 revocation, denial, judgment, or administrative order by any
1152 court, administrative law judge, state or federal agency,
1153 national securities exchange, national commodities exchange,
1154 national option exchange, national securities association,
1155 national commodities association, or national option association
1156 involving a violation of any federal or state securities or
1157 commodities law or rule or regulation adopted under such law or
1158 involving a violation of any rule or regulation of any national
1159 securities, commodities, or options exchange or association.
1160 2. Injunction or adverse administrative order by a state or
1161 federal agency regulating banking, insurance, finance or small
1162 loan companies, real estate, mortgage brokers or lenders, money
1163 transmitters, or other related or similar industries.
1164 (m) In any mortgage transaction, violating any provision of
1165 the federal Real Estate Settlement Procedure Act, as amended, 12
1166 U.S.C. ss. 2601 et seq.; the federal Truth in Lending Act, as
1167 amended, 15 U.S.C. ss. 1601 et seq.; or any regulations adopted
1168 under such acts.
1169 (n) Having a loan originator, mortgage broker, or mortgage
1170 lender license, or the equivalent of such license, revoked in
1171 any jurisdiction.
1172 (o) Having a license, or the equivalent of such license, to
1173 practice any profession or occupation revoked, suspended, or
1174 otherwise acted against, including the denial of licensure by a
1175 licensing authority of this state or another state, territory,
1176 or country.
1177 (p) Acting as a loan originator, mortgage broker, or
1178 mortgage lender without a current license issued under part II
1179 or part III of this chapter.
1180 (q) Operating a mortgage broker or mortgage lender branch
1181 office without a current license issued under part II or part
1182 III of this chapter.
1183 (r) Conducting any mortgage brokering or mortgage lending
1184 activities in the absence of a properly designated principal
1185 loan originator or mortgage brokering or mortgage lending
1186 activities at any particular branch office without a properly
1187 designated branch manager.
1188 (s) A material misstatement or omission of fact on an
1189 initial or renewal license application.
1190 (t) Payment to the office for a license or permit with a
1191 check or electronic transmission of funds which is dishonored by
1192 the applicant’s or licensee’s financial institution.
1193 (u) Failure to comply with, or violations of, any provision
1194 of ss. 494.001-494.0077, or any rule or order made or issued
1195 under ss. 494.001-494.0077.
1196 (v) Failure to maintain, preserve, and keep available for
1197 examination all books, accounts, or other documents required by
1198 ss. 494.001-494.0077 and the rules of the commission.
1199 (w) Refusal to permit an investigation or examination of
1200 books and records, or refusal to comply with an office subpoena
1201 or subpoena duces tecum.
1202 (x) Failure to timely pay any fee, charge, or fine imposed
1203 or assessed pursuant to ss. 494.001-494.0077 or related rules.
1204 (2) If the office finds a person in violation of any act
1205 specified in this section, it may enter an order imposing one or
1206 more of the following penalties:
1207 (a) Issuance of a reprimand.
1208 (b) Suspension of a license, subject to reinstatement upon
1209 satisfying all reasonable conditions imposed by the office.
1210 (c) Revocation of a license.
1211 (d) Denial of a license.
1212 (e) Imposition of a fine in an amount up to $25,000 for
1213 each count or separate offense.
1214 (f) An administrative fine of up to $1,000 per day, but not
1215 to exceed $25,000 cumulatively, for each day that
1216 1. A mortgage broker or mortgage lender conducts business
1217 at an unlicensed branch office.
1218 2. An unlicensed person acts as a loan originator, a
1219 mortgage broker, or a mortgage lender.
1220 (3) A mortgage broker or mortgage lender, as applicable, is
1221 subject to the disciplinary actions specified in subsection (2)
1222 for a violation of subsection (1) by:
1223 (a) A control person of the mortgage broker or mortgage
1224 lender; or
1225 (b) A loan originator employed by or contracting with the
1226 mortgage broker or mortgage lender.
1227 (4) A principal loan originator of a mortgage broker is
1228 subject to the disciplinary actions specified in subsection (2)
1229 for violations of subsection (1) by a loan originator in the
1230 course of an association with the mortgage broker if there is a
1231 pattern of repeated violations by the loan originator or if the
1232 principal loan originator has knowledge of the violations.
1233 (5) A principal loan originator of a mortgage lender is
1234 subject to the disciplinary actions specified in subsection (2)
1235 for violations of subsection (1) by an associate of a mortgage
1236 lender if there is a pattern of repeated violations by the
1237 associate or if the principal loan originator has knowledge of
1238 the violations.
1239 (6) A branch manager is subject to the disciplinary actions
1240 specified in subsection (2) for violations of subsection (1) by
1241 a loan originator in the course of an association with the
1242 mortgage broker or mortgage lender if there is a pattern of
1243 repeated violations by the loan originator or if the branch
1244 manager has knowledge of the violations.
1245 (7) An individual who is associated with a mortgage broker
1246 is subject to the disciplinary actions specified in subsection
1247 (2) for a violation of subsection (1) with respect to an action
1248 in which such person was involved.
1249 (8) Pursuant to s. 120.60(6), the office may summarily
1250 suspend the license of a loan originator, mortgage broker, or
1251 mortgage lender if the office has reason to believe that a
1252 licensee poses an immediate, serious danger to the public’s
1253 health, safety, or welfare. The arrest of the licensee, or the
1254 mortgage broker or the mortgage lender’s control person, for any
1255 felony or any crime involving fraud, dishonesty, breach of
1256 trust, money laundering, or any other act of moral turpitude is
1257 deemed sufficient to constitute an immediate danger to the
1258 public’s health, safety, or welfare. Any proceeding for the
1259 summary suspension of a license must be conducted by the
1260 commissioner of the office, or designee, who shall issue the
1261 final summary order.
1262 (9) The office may deny any request to terminate or
1263 withdraw any license application or license if the office
1264 believes that an act that would be a ground for license denial,
1265 suspension, restriction, or revocation under this chapter has
1266 been committed.
1267 Section 15. Effective July 1, 2009, section 494.0026,
1268 Florida Statutes, is amended to read:
1269 494.0026 Disposition of insurance proceeds.—The following
1270 provisions apply to mortgage loans held by a mortgagee or
1271 assignee that is subject to part II or part III of this chapter
1272 ss. 494.003-494.0077.
1273 (1) The mortgagee or assignee must promptly endorse a
1274 check, draft, or other negotiable instrument payable jointly to
1275 the mortgagee or assignee and the insured by the insurance
1276 company. However, the mortgagee or assignee is not required to
1277 endorse such instrument if the insured or a payee who is not
1278 subject to part II or part III of this chapter ss. 494.003
1279 494.0077 refuses to endorse the instrument.
1280 (2) Insurance proceeds received by a mortgagee or assignee
1281 that relate to compensation for damage to property or contents
1282 insurance coverage in which the mortgagee or assignee has a
1283 security interest must be promptly deposited by the mortgagee or
1284 assignee into a segregated account of a federally insured
1285 financial institution.
1286 (3) Insurance proceeds received by a mortgagee or assignee
1287 that relate to contents insurance coverage in which the
1288 mortgagee or assignee does not have a security interest in the
1289 contents must be promptly distributed to the insured by the
1290 mortgagee or assignee.
1291 (4) Insurance proceeds received by a mortgagee or assignee
1292 that relate to additional living expenses must be promptly
1293 distributed to the insured by the mortgagee or assignee.
1294 (5) The mortgagee or assignee is not required to remit the
1295 portion of the proceeds relating to additional living expenses
1296 and contents insurance if the mortgagee or assignee is not able
1297 to determine which part of the proceeds relates to additional
1298 living expenses and contents insurance.
1299
1300 Nothing in This section may not shall be construed to prevent an
1301 insurance company from paying the insured directly for
1302 additional living expenses or paying the insured directly for
1303 contents insurance coverage if the mortgagee or assignee does
1304 not have a security interest in the contents.
1305 Section 16. Section 494.0028, Florida Statutes, is amended
1306 to read:
1307 494.0028 Arbitration.—
1308 (1) This section applies to any mortgage broker brokerage
1309 agreement, servicing agreement, loan application, or purchase
1310 agreement that which provides for arbitration between:
1311 (a) A noninstitutional investor and a mortgage lender
1312 servicing or correspondent mortgage lender to service a mortgage
1313 loan.
1314 (b) A borrower and a mortgage broker brokerage business,
1315 mortgage lender, or correspondent mortgage lender to obtain a
1316 mortgage loan.
1317 (c) A noninstitutional investor and a mortgage broker
1318 brokerage business, mortgage lender, or correspondent mortgage
1319 lender to fund or purchase a mortgage loan.
1320 (2) All agreements subject to this section must shall
1321 provide that, at the voluntary election of the noninstitutional
1322 investor or borrower, disputes shall be handled by either a
1323 court of competent jurisdiction or by binding arbitration.
1324 (3) All agreements subject to this section must shall
1325 provide the noninstitutional investor or borrower with the
1326 option to elect arbitration before the American Arbitration
1327 Association or other independent nonindustry arbitration forum.
1328 Any other nonindustry arbitration forum may apply to the office
1329 to allow such forum to provide arbitration services. The office
1330 shall grant the application if the applicant’s fees, practices,
1331 and procedures do not materially differ from those of the
1332 American Arbitration Association.
1333 (4) At the election of the noninstitutional investor or
1334 borrower, venue shall be in the county in which the
1335 noninstitutional investor or borrower entered into the agreement
1336 or at a business location of the mortgage broker or brokerage
1337 business, mortgage lender, or correspondent lender.
1338 (5) Any fees or charges must be in accordance with shall be
1339 made as provided in the rules of the American Arbitration
1340 Association or other approved nonindustry arbitration forum and
1341 may shall not be set in the agreement.
1342 (6) Any election made under this section is shall be
1343 irrevocable.
1344 (7) This section does shall not be construed to require an
1345 agreement that which is subject to this section to contain an
1346 arbitration clause.
1347 Section 17. Sections 494.0029 and 494.00295, Florida
1348 Statutes, are repealed.
1349 Section 18. Effective January 1, 2010, section 494.00296,
1350 Florida Statutes, is created to read:
1351 494.00296 Loan modification.—
1352 (1) PROHIBITED ACTS.—When offering or providing loan
1353 modification services, a mortgage broker, mortgage brokerage
1354 business, mortgage lender, or correspondent mortgage lender
1355 licensed, or required to be licensed, under ss. 494.001-494.0077
1356 may not:
1357 (a) Engage in or initiate loan modification services
1358 without first executing a written agreement for loan
1359 modification services with the borrower;
1360 (b) Execute a loan modification without the consent of the
1361 borrower after the borrower is made aware of each modified term;
1362 or
1363 (c) Solicit, charge, receive, or attempt to collect or
1364 secure payment, directly or indirectly, for loan modification
1365 services before completing or performing all services included
1366 in the agreement for loan modification services. A fee may be
1367 charged only if the loan modification results in a material
1368 benefit to the borrower. The commission may adopt rules to
1369 provide guidance on what constitutes a material benefit to the
1370 borrower.
1371 (2) LOAN MODIFICATION AGREEMENT.—
1372 (a) The written agreement for loan modification services
1373 must be printed in at least 12-point uppercase type and signed
1374 by both parties. The agreement must include the name and address
1375 of the person providing loan modification services, the exact
1376 nature and specific detail of each service to be provided, the
1377 total amount and terms of charges to be paid by the borrower for
1378 the services, and the date of the agreement. The date of the
1379 agreement may not be earlier than the date the borrower signed
1380 the agreement. The mortgage brokerage business, mortgage lender,
1381 or correspondent mortgage lender must give the borrower a copy
1382 of the agreement to review at least 1 business day before the
1383 borrower is to sign the agreement.
1384 (b) The borrower has the right to cancel the written
1385 agreement without any penalty or obligation if the borrower
1386 cancels the agreement within 3 business days after signing the
1387 agreement. The right to cancel may not be waived by the borrower
1388 or limited in any manner by the mortgage broker, mortgage
1389 brokerage business, mortgage lender, or correspondent mortgage
1390 lender. If the borrower cancels the agreement, any payments made
1391 must be returned to the borrower within 10 business days after
1392 receipt of the notice of cancellation.
1393 (c) An agreement for loan modification services must
1394 contain, immediately above the signature line, a statement in at
1395 least 12-point uppercase type which substantially complies with
1396 the following:
1397 BORROWER’S RIGHT OF CANCELLATION
1398
1399 YOU MAY CANCEL THIS AGREEMENT FOR LOAN MODIFICATION
1400 SERVICES WITHOUT ANY PENALTY OR OBLIGATION WITHIN 3 BUSINESS
1401 DAYS AFER THE DATE THIS AGREEMENT IS SIGNED BY YOU.
1402 THE MORTGAGE BROKER, MORTGAGE BROKERAGE BUSINESS, MORTGAGE
1403 LENDER, OR CORRESPONDENT MORTGAGE LENDER IS PROHIBITED BY LAW
1404 FROM ACCEPTING ANY MONEY, PROPERTY, OR OTHER FORM OF PAYMENT
1405 FROM YOU UNTIL ALL PROMISED SERVICES HAVE BEEN COMPLETED. IF FOR
1406 ANY REASON YOU HAVE PAID THE CONSULTANT BEFORE CANCELLATION,
1407 YOUR PAYMENT MUST BE RETURNED TO YOU WITHIN 10 BUSINESS DAYS
1408 AFTER THE CONSULTANT RECEIVES YOUR CANCELLATION NOTICE.
1409 TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A
1410 STATEMENT THAT YOU ARE CANCELING THE AGREEMENT SHOULD BE MAILED
1411 (POSTMARKED) OR DELIVERED TO ...(NAME)... AT ...(ADDRESS)... NO
1412 LATER THAN MIDNIGHT OF ...(DATE)....
1413 IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR MORTAGE
1414 LENDER OR MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT. YOUR
1415 LENDER OR SERVICER MAY BE WILLING TO NEGOTIATE A PAYMENT PLAN OR
1416 A RESTRUCTURING WITH YOU FREE OF CHARGE.
1417
1418 (d) The inclusion of the statement does not prohibit a
1419 mortgage broker, mortgage brokerage business, mortgage lender,
1420 or correspondent mortgage lender from giving the homeowner more
1421 time to cancel the agreement than is set forth in the statement
1422 if all other requirements of this subsection are met.
1423 (e) The person offering or providing the loan modification
1424 services must give the borrower a copy of the signed agreement
1425 within 3 hours after the borrower signs the agreement.
1426 (3) REMEDIES.—
1427 (a) Without regard to any other remedy or relief to which a
1428 person is entitled, anyone aggrieved by a violation of this
1429 section may bring an action to obtain a declaratory judgment
1430 that an act or practice violates this section and to enjoin a
1431 person who has violated, is violating, or is otherwise likely to
1432 violate this section.
1433 (b) In any action brought by a person who has suffered a
1434 loss as a result of a violation of this section, such person may
1435 recover actual damages, plus attorney’s fees and court costs, as
1436 follows:
1437 1. In any action brought under this section, upon motion of
1438 the party against whom such action is filed alleging that the
1439 action is frivolous, without legal or factual merit, or brought
1440 for the purpose of harassment, the court may, after hearing
1441 evidence as to the necessity therefore, require the party
1442 instituting the action to post a bond in the amount that the
1443 court finds reasonable to indemnify the defendant for any
1444 damages incurred, including reasonable attorney’s fees.
1445 2. In any civil litigation resulting from an act or
1446 practice involving a violation of this section, the prevailing
1447 party, after judgment in the trial court and exhaustion of all
1448 appeals, if any, may receive reasonable attorney’s fees and
1449 costs from the nonprevailing party.
1450 3. The attorney for the prevailing party shall submit a
1451 sworn affidavit of time spent on the case and costs incurred for
1452 all the motions, hearings, and appeals to the trial judge who
1453 presided over the civil case.
1454 4. The trial judge may award the prevailing party the sum
1455 of reasonable costs incurred in the action plus a reasonable
1456 legal fee for the hours actually spent on the case as sworn to
1457 in an affidavit.
1458 5. Any award of attorney’s fees or costs becomes part of
1459 the judgment and is subject to execution as the law allows.
1460 (c) The provisions of this subsection do not apply to any
1461 action initiated by the enforcing authority.
1462 (4) DEFINITIONS.—Notwithstanding s. 494.001, as used in
1463 this section, the term:
1464 (a) “Borrower” means a person who is obligated to repay a
1465 mortgage loan and includes, but is not limited to, a coborrower,
1466 cosignor, or guarantor.
1467 (b) “Loan modification” means a modification to an existing
1468 loan. The term does not include a refinancing transaction.
1469 (c) “Mortgage broker” means a person who, for compensation
1470 or gain, directly or indirectly, accepts or offers to accept an
1471 application for a mortgage loan, solicits or offers to solicit a
1472 mortgage loan on behalf of a borrower, negotiates or offers to
1473 negotiate the terms or conditions of a new or existing mortgage
1474 loan on behalf of a borrower or lender, or negotiates or offers
1475 to negotiate the sale of an existing mortgage loan to a
1476 noninstitutional investor. An employee whose activities are
1477 ministerial and clerical, which may include quoting available
1478 interest rates or loan terms and conditions, is not acting as a
1479 mortgage broker.
1480 Section 19. Subsection (1), (2), and (4) of section
1481 494.00296, Florida Statutes, as created by this act, are amended
1482 to read:
1483 494.00296 Loan modification.—
1484 (1) PROHIBITED ACTS.—When offering or providing loan
1485 modification services, a loan originator, mortgage broker,
1486 mortgage brokerage business, mortgage lender, or correspondent
1487 mortgage lender licensed or required to be licensed under ss.
1488 494.001-494.0077 may not:
1489 (a) Engage in or initiate loan modification services
1490 without first executing a written agreement for loan
1491 modification services with the borrower;
1492 (b) Execute a loan modification without the consent of the
1493 borrower after the borrower is made aware of each modified term;
1494 or
1495 (c) Solicit, charge, receive, or attempt to collect or
1496 secure payment, directly or indirectly, for loan modification
1497 services before completing or performing all services included
1498 in the agreement for loan modification services. A fee may be
1499 charged only if the loan modification results in a material
1500 benefit to the borrower. The commission may adopt rules to
1501 provide guidance on what constitutes a material benefit to the
1502 borrower
1503 (2) LOAN MODIFICATION AGREEMENT.—
1504 (a) The written agreement for loan modification services
1505 must be printed in at least 12-point uppercase type and signed
1506 by both parties. The agreement must include the name and address
1507 of the person providing loan modification services, the exact
1508 nature and specific detail of each service to be provided, the
1509 total amount and terms of charges to be paid by the borrower for
1510 the services, and the date of the agreement. The date of the
1511 agreement may not be earlier than the date the borrower signed
1512 the agreement. The mortgage broker or brokerage business,
1513 mortgage lender, or correspondent mortgage lender must give the
1514 borrower a copy of the agreement to review at least 1 business
1515 day before the borrower is to sign the agreement.
1516 (b) The borrower has the right to cancel the written
1517 agreement without any penalty or obligation if the borrower
1518 cancels the agreement within 3 business days after signing the
1519 agreement. The right to cancel may not be waived by the borrower
1520 or limited in any manner by the loan originator, mortgage
1521 broker, mortgage brokerage business, mortgage lender, or
1522 correspondent mortgage lender. If the borrower cancels the
1523 agreement, any payments made must be returned to the borrower
1524 within 10 business days after receipt of the notice of
1525 cancellation.
1526 (c) An agreement for loan modification services must
1527 contain, immediately above the signature line, a statement in at
1528 least 12-point uppercase type which substantially complies with
1529 the following:
1530 BORROWER’S RIGHT OF CANCELLATION
1531
1532 YOU MAY CANCEL THIS AGREEMENT FOR LOAN MODIFICATION
1533 SERVICES WITHOUT ANY PENALTY OR OBLIGATION WITHIN 3 BUSINESS
1534 DAYS AFTER THE DATE THIS AGREEMENT IS SIGNED BY YOU.
1535 THE LOAN ORIGINATOR, MORTGAGE BROKER, MORTGAGE BROKERAGE
1536 BUSINESS, MORTGAGE LENDER, OR CORRESPONDENT MORTGAGE LENDER IS
1537 PROHIBITED BY LAW FROM ACCEPTING ANY MONEY, PROPERTY, OR OTHER
1538 FORM OF PAYMENT FROM YOU UNTIL ALL PROMISED SERVICES HAVE BEEN
1539 COMPLETED. IF FOR ANY REASON YOU HAVE PAID THE CONSULTANT BEFORE
1540 CANCELLATION, YOUR PAYMENT MUST BE RETURNED TO YOU WITHIN 10
1541 BUSINESS DAYS AFTER THE CONSULTANT RECEIVES YOUR CANCELLATION
1542 NOTICE.
1543 TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A
1544 STATEMENT THAT YOU ARE CANCELING THE AGREEMENT SHOULD BE MAILED
1545 (POSTMARKED) OR DELIVERED TO ...(NAME)... AT ...(ADDRESS)... NO
1546 LATER THAN MIDNIGHT OF ...(DATE)....
1547 IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR MORTGAGE
1548 LENDER OR MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT. YOUR
1549 LENDER OR SERVICER MAY BE WILLING TO NEGOTIATE A PAYMENT PLAN OR
1550 A RESTRUCTURING WITH YOU FREE OF CHARGE.
1551
1552 (d) The inclusion of the statement does not prohibit a loan
1553 originator, mortgage broker, mortgage brokerage business,
1554 mortgage lender, or correspondent mortgage lender from giving
1555 the homeowner more time to cancel the agreement than is set
1556 forth in the statement if all other requirements of this
1557 subsection are met.
1558 (e) The person offering or providing the loan modification
1559 services must give the borrower a copy of the signed agreement
1560 within 3 hours after the borrower signs the agreement.
1561 (4) DEFINITIONS.—Notwithstanding s. 494.001, as used in
1562 this section, the term:
1563 (a) “Borrower” means a person obligated to repay a mortgage
1564 loan and includes, but is not limited to, a coborrower,
1565 cosignor, or guarantor.
1566 (b) “Loan modification” means a modification to an existing
1567 loan. The term does not include a refinancing transaction.
1568 (c) “Mortgage broker” means for compensation or gain,
1569 directly or indirectly, accepting or offering to accept an
1570 application for a mortgage loan, soliciting or offering to
1571 solicit a mortgage loan on behalf of a borrower, negotiating or
1572 offering to negotiate the terms or conditions of a new or
1573 existing mortgage loan on behalf of a borrower or lender, or
1574 negotiating or offering to negotiate the sale of an existing
1575 mortgage loan to a noninstitutional investor. An employee whose
1576 activities are ministerial and clerical, which may include
1577 quoting available interest rates or loan terms and conditions,
1578 is not acting as a mortgage broker.
1579 Section 20. The Division of Statutory Revision is requested
1580 to rename part II of chapter 494, Florida Statutes, consisting
1581 of ss. 494.00312-491.0043, Florida Statutes, as “Loan
1582 Originators and Mortgage Brokers.”
1583 Section 21. Effective January 1, 2010, section 494.003,
1584 Florida Statutes, is repealed.
1585 Section 22. Section 494.0031, Florida Statutes, is
1586 repealed.
1587 Section 23. Section 494.00312, Florida Statutes, is created
1588 to read:
1589 494.00312 Loan originator license.—
1590 (1) An individual who acts as a loan originator must be
1591 licensed under this section.
1592 (2) In order to apply for loan originator license, an
1593 applicant must:
1594 (a) Be at least 18 years of age and have a high school
1595 diploma or its equivalent.
1596 (b) Complete a 20-hour prelicensing class approved by the
1597 registry.
1598 (c) Pass a written test developed by the registry and
1599 administered by a provider approved by the registry.
1600 (d) Submit a completed license application form as
1601 prescribed by commission rule.
1602 (e) Submit a nonrefundable application fee of $195, and the
1603 $20 nonrefundable fee if required by s. 494.00172. Application
1604 fees may not be prorated for partial years of licensure.
1605 (f) Submit fingerprints in accordance with rules adopted by
1606 the commission:
1607 1. The fingerprints may be submitted to the registry, the
1608 office, or a vendor acting on behalf of the registry or the
1609 office.
1610 2. The office may contract with a third-party vendor to
1611 provide live-scan fingerprinting in lieu of a paper fingerprint
1612 card.
1613 3. A state criminal history background check must be
1614 conducted through the Department of Law Enforcement and a
1615 federal criminal history background check must be conducted
1616 through the Federal Bureau of Investigation.
1617 4. All fingerprints submitted to the Department of Law
1618 Enforcement must be submitted electronically and entered into
1619 the statewide automated fingerprint identification system
1620 established in s. 943.05(2)(b) and available for use in
1621 accordance with s. 943.05(2)(g) and (h). The office shall pay an
1622 annual fee to the department to participate in the system and
1623 inform the department of any person whose fingerprints are no
1624 longer required to be retained.
1625 5. The costs of fingerprint processing, including the cost
1626 of retaining the fingerprints, shall be borne by the person
1627 subject to the background check.
1628 6. The office is responsible for reviewing the results of
1629 the state and federal criminal history checks and determining
1630 whether the applicant meets licensure requirements.
1631 (g) Authorize the registry to obtain an independent credit
1632 report on the applicant from a consumer reporting agency, and
1633 transmit or provide access to the report to the office. The cost
1634 of the credit report shall be borne by the applicant.
1635 (h) Submit additional information or documentation
1636 requested by the office and required by rule concerning the
1637 applicant. Additional information may include documentation of
1638 pending and prior disciplinary and criminal history events,
1639 including arrest reports and certified copies of charging
1640 documents, plea agreements, judgments and sentencing documents,
1641 documents relating to pretrial intervention, orders terminating
1642 probation or supervised release, final administrative agency
1643 orders, or other comparable documents that may provide the
1644 office with the appropriate information to determine eligibility
1645 for licensure.
1646 (i) Submit any other information required by the registry
1647 for the processing of the application.
1648 (3) An application is considered received for the purposes
1649 of s. 120.60 upon the office’s receipt of all documentation from
1650 the registry, including the completed application form,
1651 documentation of completion of the prelicensure class, test
1652 results, criminal history information, and independent credit
1653 report, as well as the license application fee, the fee required
1654 by s. 494.00172, and all applicable fingerprinting processing
1655 fees.
1656 (4) The office shall issue a loan originator license to
1657 each person who is not otherwise ineligible and who meets the
1658 requirements of this section. However, it is a ground for denial
1659 of licensure if the applicant:
1660 (a) Has committed any violation specified in ss. 494.001
1661 494.0077, or is the subject of a pending felony criminal
1662 prosecution or a prosecution or an administrative enforcement
1663 action, in any jurisdiction, which involves fraud, dishonesty,
1664 breach of trust, money laundering, or any other act of moral
1665 turpitude.
1666 (b) Has failed to demonstrate the character, general
1667 fitness, and financial responsibility necessary to command the
1668 confidence of the community and warrant a determination that the
1669 applicant will operate honestly, fairly, and efficiently.
1670 1. If the office has information that could form the basis
1671 for license denial under this paragraph, before denying the
1672 license, the office must notify the applicant in writing of the
1673 specific items of concern and provide the applicant with an
1674 opportunity to explain the circumstances surrounding the
1675 specific items and provide any information that the applicant
1676 believes is relevant to the office’s determination.
1677 2. For purposes of evaluating adverse information found in
1678 an applicant’s credit report, the information must be considered
1679 within the totality of the circumstances. Information provided
1680 by the applicant under subparagraph 1., or information obtained
1681 by the office by other means, may be used to provide a context
1682 for the adverse items. For example, the adverse items may have
1683 resulted from factors that do not necessarily reflect negatively
1684 upon the applicant’s character, general fitness, or financial
1685 responsibility.
1686 3. The office may not use a credit score or the absence or
1687 insufficiency of credit history information to determine
1688 character, general fitness, or financial responsibility.
1689 4. If information contained in a credit report is used as
1690 the basis for denying a license, the office shall, in accordance
1691 with s. 120.60(3), provide with particularity the grounds or
1692 basis for denial. The use of the terms “poor credit history,”
1693 “poor credit rating,” or similar language do not meet the
1694 requirements of this paragraph.
1695 (5) The office may not issue a license to an applicant who
1696 has had a loan originator license or its equivalent revoked in
1697 any jurisdiction.
1698 (6) A loan originator license shall be annulled pursuant to
1699 s. 120.60 if it was issued by the office by mistake. A license
1700 must be reinstated if the applicant demonstrates that the
1701 requirements for obtaining the license under this chapter have
1702 been satisfied.
1703 (7) All loan originator licenses must be renewed annually
1704 by December 31 pursuant to s. 494.00313. If a person holding an
1705 active loan originator license has not applied to renew the
1706 license on or before December 31, the loan originator license
1707 expires on December 31. If a person holding an active loan
1708 originator license has applied to renew the license on or before
1709 December 31, the loan originator license remains active until
1710 the renewal application is approved or denied. A loan originator
1711 is not precluded from reapplying for licensure upon expiration
1712 of a previous license.
1713 Section 24. Section 494.00313, Florida Statutes, is created
1714 to read:
1715 494.00313 Loan originator license renewal.—
1716 (1) In order to renew a loan originator license, a loan
1717 originator must:
1718 (a) Submit a completed license renewal form as prescribed
1719 by commission rule.
1720 (b) Submit a nonrefundable renewal fee of $150, the $20
1721 nonrefundable fee if required by s. 494.00172, and nonrefundable
1722 fees to cover the cost of further fingerprint processing and
1723 retention as set forth in commission rule.
1724 (c) Provide documentation of completion of at least 8 hours
1725 of continuing education in courses reviewed and approved by the
1726 registry.
1727 (d) Authorize the registry to obtain an independent credit
1728 report on the licensee from a consumer reporting agency, and
1729 transmit or provide access to the report to the office. The cost
1730 of the credit report shall be borne by the licensee.
1731 (e) Submit any additional information or documentation
1732 requested by the office and required by rule concerning the
1733 licensee. Additional information may include documentation of
1734 pending and prior disciplinary and criminal history events,
1735 including arrest reports and certified copies of charging
1736 documents, plea agreements, judgments and sentencing documents,
1737 documents relating to pretrial intervention, orders terminating
1738 probation or supervised release, final administrative agency
1739 orders, or other comparable documents that may provide the
1740 office with the appropriate information to determine eligibility
1741 for renewal of licensure.
1742 (2) The office may not renew a loan originator license
1743 unless the loan originator continues to meet the minimum
1744 requirements for initial licensure pursuant to s. 494.00312 and
1745 adopted rule.
1746 Section 25. Section 494.0032, Florida Statutes, is
1747 repealed.
1748 Section 26. Section 494.00321, Florida Statutes, is created
1749 to read:
1750 494.00321 Mortgage broker license.—
1751 (1) Each person who acts as a mortgage broker must be
1752 licensed in accordance with this section.
1753 (2) In order to apply for a mortgage broker license an
1754 applicant must:
1755 (a) Submit a completed license application form as
1756 prescribed by commission rule.
1757 (b) Designate a qualified principal loan originator on the
1758 application form who meets the requirements of s. 494.0035.
1759 (c) Submit a nonrefundable application fee of $425, and the
1760 $100 nonrefundable fee if required by s. 494.00172. Application
1761 fees may not be prorated for partial years of licensure.
1762 (d) Submit fingerprints for each of the applicant’s control
1763 persons in accordance with rules adopted by the commission:
1764 1. The fingerprints may be submitted to the registry, the
1765 office, or a vendor acting on behalf of the registry or the
1766 office.
1767 2. The office may contract with a third-party vendor to
1768 provide live-scan fingerprinting in lieu of a paper fingerprint
1769 card.
1770 3. A state criminal history background check must be
1771 conducted through the Department of Law Enforcement and a
1772 federal criminal history background check must be conducted
1773 through the Federal Bureau of Investigation.
1774 4. All fingerprints submitted to the Department of Law
1775 Enforcement must be submitted electronically and entered into
1776 the statewide automated fingerprint identification system
1777 established in s. 943.05(2)(b) and available for use in
1778 accordance with s. 943.05(2)(g) and (h). The office shall pay an
1779 annual fee to the department to participate in the system and
1780 inform the department of any person whose fingerprints are no
1781 longer required to be retained.
1782 5. The costs of fingerprint processing, including the cost
1783 of retaining the fingerprints, shall be borne by the person
1784 subject to the background check.
1785 6. The office is responsible for reviewing the results of
1786 the state and federal criminal history checks and determining
1787 whether the applicant meets licensure requirements.
1788 (e) Authorize the registry to obtain an independent credit
1789 report on each of the applicant’s control persons from a
1790 consumer reporting agency, and transmit or provide access to the
1791 report to the office. The cost of the credit report shall be
1792 borne by the applicant.
1793 (f) Submit additional information or documentation
1794 requested by the office and required by rule concerning the
1795 applicant or a control person of the applicant. Additional
1796 information may include documentation of pending and prior
1797 disciplinary and criminal history events, including arrest
1798 reports and certified copies of charging documents, plea
1799 agreements, judgments and sentencing documents, documents
1800 relating to pretrial intervention, orders terminating probation
1801 or supervised release, final administrative agency orders, or
1802 other comparable documents that may provide the office with the
1803 appropriate information to determine eligibility for licensure.
1804 (g) Submit any other information required by the registry
1805 for the processing of the application.
1806 (3) An application is considered received for the purposes
1807 of s. 120.60 upon the office’s receipt of all documentation from
1808 the registry, including the completed application form, criminal
1809 history information, and independent credit report, as well as
1810 the license application fee, the fee required by s. 492.00172,
1811 and all applicable fingerprinting processing fees.
1812 (4) The office shall issue a mortgage broker license to
1813 each person who is not otherwise ineligible and who meets the
1814 requirements of this section. However, it is a ground for denial
1815 of licensure if the applicant or one of the applicant’s control
1816 persons:
1817 (a) Has committed any violation specified in ss. 494.001
1818 494.0077, or is the subject of a pending felony criminal
1819 prosecution or a prosecution or an administrative enforcement
1820 action, in any jurisdiction, which involves fraud, dishonesty,
1821 breach of trust, money laundering, or any other act of moral
1822 turpitude.
1823 (b) Has failed to demonstrate the character, general
1824 fitness, and financial responsibility necessary to command the
1825 confidence of the community and warrant a determination that the
1826 applicant will operate honestly, fairly, and efficiently.
1827 1. If the office has information that could form the basis
1828 for license denial under this paragraph, before denying the
1829 license, the office must notify the applicant in writing of the
1830 specific items of concern and provide the applicant with an
1831 opportunity to explain the circumstances surrounding the
1832 specific items and provide any information that the applicant
1833 believes is relevant to the office’s determination.
1834 2. For purposes of evaluating adverse information found in
1835 an applicant’s credit report, the information must be considered
1836 within the totality of the circumstances. Information provided
1837 by the applicant under subparagraph 1., or information obtained
1838 by the office by other means, may be used to provide a context
1839 for the adverse items. For example, the adverse items may have
1840 resulted from factors that do not necessarily reflect negatively
1841 upon the applicant’s character, general fitness, or financial
1842 responsibility.
1843 3. The office may not use a credit score or the absence or
1844 insufficiency of credit history information to determine
1845 character, general fitness, or financial responsibility.
1846 4. If information contained in a credit report is used as
1847 the basis for denying a license, the office shall, in accordance
1848 with s. 120.60(3), provide with particularity the grounds or
1849 basis for denial. The use of the terms “poor credit history,”
1850 “poor credit rating,” or similar language do not meet the
1851 requirements of this paragraph.
1852 (5) The office shall deny a license if the applicant has
1853 had a mortgage broker license, or its equivalent, revoked in any
1854 jurisdiction, or if any of the applicant’s control persons has
1855 had a loan originator license, or its equivalent, revoked in any
1856 jurisdiction.
1857 (6) A mortgage broker license shall be annulled pursuant to
1858 s. 120.60 if it was issued by the office by mistake. A license
1859 must be reinstated if the applicant demonstrates that the
1860 requirements for obtaining the license under this chapter have
1861 been satisfied.
1862 (7) All mortgage broker licenses must be renewed annually
1863 by December 31 pursuant to s. 494.00322. If a person holding an
1864 active mortgage broker license has not applied to renew the
1865 license on or before December 31, the mortgage broker license
1866 expires on December 31. If a person holding an active mortgage
1867 broker license has applied to renew the license on or before
1868 December 31, the mortgage broker license remains active until
1869 the renewal application is approved or denied. A mortgage broker
1870 is not precluded from reapplying for licensure upon expiration
1871 of a previous license.
1872 Section 27. Section 494.00322, Florida Statutes, is created
1873 to read:
1874 494.00322 Mortgage broker license renewal.—
1875 (1) In order to renew a mortgage broker license, a mortgage
1876 broker must:
1877 (a) Submit a completed license renewal form as prescribed
1878 by commission rule.
1879 (b) Submit a nonrefundable renewal fee of $375, the $100
1880 nonrefundable fee if required by s. 494.00172, and nonrefundable
1881 fees to cover the cost of further fingerprint processing and
1882 retention as set forth in commission rule.
1883 (c) Submit fingerprints in accordance with s.
1884 494.00321(2)(d) for any new control persons who have not been
1885 screened.
1886 (d) Authorize the registry to obtain an independent credit
1887 report on each of the licensee’s control persons from a consumer
1888 reporting agency, and transmit or provide access to the report
1889 to the office. The cost of the credit report shall be borne by
1890 the licensee.
1891 (e) Submit any additional information or documentation
1892 requested by the office and required by rule concerning the
1893 licensee or a control person of the licensee. Additional
1894 information may include documentation of pending and prior
1895 disciplinary and criminal history events, including arrest
1896 reports and certified copies of charging documents, plea
1897 agreements, judgments and sentencing documents, documents
1898 relating to pretrial intervention, orders terminating probation
1899 or supervised release, final administrative agency orders, or
1900 other comparable documents that may provide the office with the
1901 appropriate information to determine eligibility for renewal of
1902 licensure.
1903 (2) The office may not renew a mortgage broker license
1904 unless the licensee continues to meet the minimum requirements
1905 for initial licensure pursuant to s. 494.00321 and adopted rule.
1906 Section 28. Section 494.0033, Florida Statutes, is
1907 repealed.
1908 Section 29. Section 494.00331, Florida Statutes, is amended
1909 to read:
1910 494.00331 Loan originator employment Mortgage broker
1911 association.—An individual may not act as a loan originator
1912 unless he or she is an employee of, or an independent contractor
1913 for, a mortgage broker or a mortgage lender, and may not be
1914 employed by or contract with more than one mortgage broker or
1915 mortgage lender, or either simultaneously. No person required to
1916 be licensed as a mortgage broker under this chapter shall be
1917 simultaneously an associate of more than one licensed mortgage
1918 brokerage business, licensed mortgage lender, or licensed
1919 correspondent mortgage lender.
1920 Section 30. Section 494.0034, Florida Statutes, is
1921 repealed.
1922 Section 31. Section 494.0035, Florida Statutes, is amended
1923 to read:
1924 494.0035 Principal loan originator broker and branch
1925 manager for mortgage broker requirements.—
1926 (1) Each mortgage broker brokerage business must be
1927 operated by a principal loan originator who shall have a
1928 principal broker who shall operate the business under such
1929 broker’s full charge, control, and supervision of the mortgage
1930 broker business. The principal loan originator must have been
1931 licensed as a loan originator broker must have been a licensed
1932 mortgage broker pursuant to s. 494.0033 for at least 1 year
1933 before prior to being designated as the a principal loan
1934 originator broker, or must shall demonstrate to the satisfaction
1935 of the office that he or she such principal broker has been
1936 actively engaged in a mortgage broker-related mortgage-related
1937 business for at least 1 year before prior to being designated as
1938 a principal loan originator broker. Each mortgage broker must
1939 keep the office informed of the person designated as the
1940 principal loan originator as prescribed by commission rule
1941 brokerage business shall maintain a form as prescribed by the
1942 commission indicating the business’s designation of principal
1943 broker and the individual’s acceptance of such responsibility.
1944 If the designation is inaccurate, the business shall be deemed
1945 to be operated under form is unavailable, inaccurate, or
1946 incomplete, it is deemed that the business was operated in the
1947 full charge, control, and supervision of by each officer,
1948 director, or ultimate equitable owner of a 10-percent or greater
1949 interest in the mortgage broker brokerage business, or any other
1950 person in a similar capacity. A loan originator may not be a
1951 principal loan originator for more than one mortgage broker at
1952 any given time.
1953 (2) Each branch office of a mortgage broker brokerage
1954 business must be operated by a have a designated branch manager
1955 broker who shall have operate the business under such broker’s
1956 full charge, control, and supervision of the branch office. The
1957 designated branch manager broker must be a licensed loan
1958 originator mortgage broker pursuant to s. 494.00312 s. 494.0033.
1959 Each branch office must keep the office informed of the person
1960 designated as the branch manager as prescribed by commission
1961 rule, which includes documentation of shall maintain a form as
1962 prescribed by the commission logging the branch’s designation of
1963 a branch broker and the individual’s acceptance of such
1964 responsibility. If the designation is inaccurate, the branch
1965 office shall be deemed to be operated under form is unavailable,
1966 inaccurate, or incomplete, it is deemed that the branch was
1967 operated in the full charge, control, and supervision of by each
1968 officer, director, or ultimate equitable owner of a 10-percent
1969 or greater interest in the mortgage broker brokerage business,
1970 or any other person in a similar capacity.
1971 Section 32. Section 494.0036, Florida Statutes, is amended
1972 to read:
1973 494.0036 Mortgage broker branch office license brokerage
1974 business branch offices.—
1975 (1) Each branch office of a mortgage broker must be
1976 licensed under this section. A mortgage brokerage business
1977 branch office license is required for each branch office
1978 maintained by a mortgage brokerage business.
1979 (2) The office shall issue a mortgage broker brokerage
1980 business branch office license to a mortgage broker brokerage
1981 business licensee after the office determines that the licensee
1982 has submitted a completed application for a branch office in a
1983 form as prescribed by commission rule and payment of an initial
1984 nonrefundable branch office license fee of $225 per branch
1985 office. Application fees may not be prorated for partial years
1986 of licensure. The branch office license shall be issued in the
1987 name of the mortgage broker brokerage business that maintains
1988 the branch office. An application is considered received for
1989 purposes of s. 120.60 upon receipt of a completed application
1990 form as prescribed by commission rule, and the required fees a
1991 nonrefundable application fee of $225, and any other fee
1992 prescribed by law.
1993 (3) A branch office license must be renewed annually at the
1994 time of renewing the mortgage broker license under s. 494.00322.
1995 A nonrefundable branch renewal fee of $225 per branch office
1996 must be submitted at the time of renewal.
1997 Section 33. Section 494.0038, Florida Statutes, is amended
1998 to read:
1999 494.0038 Loan origination and mortgage broker fees and
2000 Mortgage broker disclosures.—
2001 (1)(a)1. A loan origination fee may not be paid person may
2002 not receive a mortgage brokerage fee except pursuant to a
2003 written mortgage broker brokerage agreement between the mortgage
2004 broker brokerage business and the borrower which is signed and
2005 dated by the principal loan originator or branch manager, the
2006 business and the borrower. The unique registry identifier of
2007 each loan originator responsible for providing loan originator
2008 services must be printed on the mortgage broker agreement.
2009 (a)2. The written mortgage broker brokerage agreement must
2010 describe the services to be provided by the mortgage broker
2011 brokerage business and specify the amount and terms of the loan
2012 origination mortgage brokerage fee that the mortgage broker
2013 brokerage business is to receive.
2014 1. Except for application and third-party fees, all fees
2015 received by a mortgage broker from a borrower must be identified
2016 as a loan origination fee.
2017 2. All fees on the mortgage broker agreement must be
2018 disclosed in dollar amounts.
2019 3. All loan origination fees must be paid to a mortgage
2020 broker.
2021 (b) The written mortgage brokerage agreement must be
2022 executed within 3 business days after a mortgage loan
2023 application is accepted if the borrower is present when the
2024 mortgage loan application is accepted. If the borrower is not
2025 present when such an application is accepted, the licensee shall
2026 forward the written mortgage brokerage agreement to the borrower
2027 within 3 business days after the licensee’s acceptance of the
2028 application and the licensee bears the burden of proving that
2029 the borrower received and approved the written mortgage
2030 brokerage agreement.
2031 (2)(b)1. If the mortgage broker brokerage business is to
2032 receive any payment of any kind from the mortgage lender, the
2033 maximum total dollar amount of the payment must be disclosed to
2034 the borrower in the written mortgage broker brokerage agreement
2035 as described in paragraph (1)(a). The commission may prescribe
2036 by rule an acceptable form for disclosure of brokerage fees
2037 received from the lender. The mortgage brokerage agreement must
2038 state the nature of the relationship with the lender, describe
2039 how compensation is paid by the lender, and describe how the
2040 mortgage interest rate affects the compensation paid to the
2041 mortgage broker brokerage business.
2042 (a)2. The exact amount of any payment of any kind by the
2043 lender to the mortgage broker brokerage business must be
2044 disclosed in writing to the borrower within 3 business days
2045 after the mortgage broker brokerage business is made aware of
2046 the exact amount of the payment from the lender but not less
2047 than 3 business days before the execution of the closing or
2048 settlement statement. The licensee bears the burden of proving
2049 such notification was provided to the borrower. Notification is
2050 waived if the exact amount of the payment is accurately
2051 disclosed in the written mortgage broker agreement.
2052 (b)(c) The commission may prescribe by rule the form of
2053 disclosure of brokerage fees.
2054 (3)(2) At the time a written mortgage broker brokerage
2055 agreement is signed executed by the borrower or forwarded to the
2056 borrower for signature execution, or at the time the mortgage
2057 broker brokerage business accepts an application fee, credit
2058 report fee, property appraisal fee, or any other third-party
2059 fee, but at least not less than 3 business days before execution
2060 of the closing or settlement statement, the mortgage broker
2061 brokerage business shall disclose in writing to any applicant
2062 for a mortgage loan the following information:
2063 (a) That the such mortgage broker brokerage business may
2064 not make mortgage loans or commitments. The mortgage broker
2065 brokerage business may make a commitment and may furnish a lock
2066 in of the rate and program on behalf of the lender if when the
2067 mortgage broker brokerage business has obtained a written
2068 commitment or lock-in for the loan from the lender on behalf of
2069 the borrower for the loan. The commitment must be in the same
2070 form and substance as issued by the lender.
2071 (b) That the such mortgage broker brokerage business cannot
2072 guarantee acceptance into any particular loan program or promise
2073 any specific loan terms or conditions.
2074 (c) A good faith estimate, signed and dated by the
2075 borrower, which discloses the total amount of each of the fees
2076 which the borrower may reasonably expect to pay if the loan is
2077 closed, including, but not limited to, fees earned by the
2078 mortgage broker brokerage business, lender fees, third-party
2079 fees, and official fees, together with the terms and conditions
2080 for obtaining a refund of such fees, if any. Any amount
2081 collected in excess of the actual cost shall be returned within
2082 60 days after rejection, withdrawal, or closing. The good faith
2083 estimate must identify the recipient of all payments charged the
2084 borrower and, except for all fees to be received by the mortgage
2085 broker brokerage business, may be disclosed in generic terms,
2086 such as, but not limited to, paid to lender, appraiser,
2087 officials, title company, or any other third-party service
2088 provider. This requirement does not supplant or is not a
2089 substitute for the written mortgage broker brokerage agreement
2090 described in subsection (1).
2091 (4)(3) The disclosures required by this subsection must be
2092 furnished in writing at the time an adjustable rate mortgage
2093 loan is offered to the borrower and whenever the terms of the
2094 adjustable rate mortgage loan offered materially change prior to
2095 closing. The mortgage broker shall furnish the disclosures
2096 relating to adjustable rate mortgages in a format prescribed by
2097 ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
2098 of the Federal Reserve System, as amended; its commentary, as
2099 amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
2100 1601 et seq., as amended; together with the Consumer Handbook on
2101 Adjustable Rate Mortgages, as amended; published by the Federal
2102 Reserve Board and the Federal Home Loan Bank Board. The licensee
2103 bears the burden of proving such disclosures were provided to
2104 the borrower.
2105 (5)(4) If the mortgage broker brokerage agreement includes
2106 a nonrefundable application fee, the following requirements are
2107 applicable:
2108 (a) The amount of the application fee, which must be
2109 clearly denominated as such, must shall be clearly disclosed.
2110 (b) The specific services that will be performed in
2111 consideration for the application fee must shall be disclosed.
2112 (c) The application fee must be reasonably related to the
2113 services to be performed and may not be based upon a percentage
2114 of the principal amount of the loan or the amount financed.
2115 (6)(5) A mortgage broker brokerage business may not accept
2116 any fee in connection with a mortgage loan other than an
2117 application fee, credit report fee, property appraisal fee, or
2118 other third-party fee before prior to obtaining a written
2119 commitment from a qualified lender.
2120 (7)(6) Any third-party fee entrusted to a mortgage broker
2121 must brokerage business shall immediately, upon receipt, be
2122 placed into a segregated account with a financial institution
2123 located in the state the accounts of which are insured by the
2124 Federal Government. Such funds shall be held in trust for the
2125 payor and shall be kept in the account until disbursement. Such
2126 funds may be placed in one account if adequate accounting
2127 measures are taken to identify the source of the funds.
2128 (7) All mortgage brokerage fees shall be paid to a mortgage
2129 brokerage business licensee.
2130 (8) A mortgage broker may not pay a commission to any
2131 person not licensed pursuant to this chapter.
2132 (9)(8) This section does not prohibit a mortgage broker
2133 brokerage business from offering products and services, in
2134 addition to those offered in conjunction with the loan
2135 origination process, for a fee or commission.
2136 Section 34. Section 494.0039, Florida Statutes, is amended
2137 to read:
2138 494.0039 Principal place of business requirements.—Each
2139 mortgage broker brokerage business licensee shall maintain and
2140 transact business from a principal place of business.
2141 Section 35. Section 494.004, Florida Statutes, is amended
2142 to read:
2143 494.004 Requirements of licensees.—
2144 (1) Each licensee under this part ss. 494.003-494.0043
2145 shall report to the office:,
2146 (a) In writing, any conviction of, or plea of nolo
2147 contendere to, regardless of adjudication, any felony or any
2148 crime or administrative violation that involves fraud,
2149 dishonesty, breach of trust, money laundering dishonest dealing,
2150 or any other act of moral turpitude, in any jurisdiction, by the
2151 licensee or any control natural person within named in s.
2152 494.0031(2)(d), not later than 30 days after the date of
2153 conviction, entry of a plea of nolo contendere, or final
2154 administrative action.
2155 (b)(2) Each licensee under ss. 494.003-494.0043 shall
2156 report, In a form prescribed by rule of the commission, any
2157 conviction of, or plea of nolo contendere to, regardless of
2158 whether adjudication is withheld, any felony committed by the
2159 licensee or any control natural person within named in s.
2160 494.0031(2)(d), not later than 30 days after the date of
2161 conviction or the date the plea of nolo contendere is entered.
2162 (c)(3) Each licensee under ss. 494.003-494.0043 shall
2163 report Any action in bankruptcy, voluntary or involuntary,
2164 within 30 to the office not later than 7 business days after the
2165 action is instituted.
2166 (d)(4) Each licensee under ss. 494.003-494.0043 shall
2167 report On a form prescribed by rule of the commission, any
2168 change to the information contained in any initial application
2169 form or any amendment to the application within not later than
2170 30 days after the change is effective.
2171 (5) A license issued under ss. 494.003-494.0043 is not
2172 transferable or assignable.
2173 (e)(6) Each licensee under ss. 494.003-494.0043 shall
2174 report Any change in the principal loan originator broker, any
2175 addition or subtraction of a control person partners, officers,
2176 members, joint venturers, directors, control persons of any
2177 licensee, or any individual who is the ultimate equitable owner
2178 of a 10-percent or greater interest in the licensee, or any
2179 change in the form of business organization, by written
2180 amendment in the form and at the time the commission specifies
2181 by rule.
2182 (a) In any case in which a person or a group of persons,
2183 directly or indirectly or acting by or through one or more
2184 persons, proposes to purchase or acquire a controlling interest
2185 in a licensee, such person or group shall submit an initial
2186 application for licensure as a mortgage brokerage business
2187 before such purchase or acquisition and at the time and in the
2188 form the commission prescribes by rule.
2189 (b) As used in this subsection, the term “controlling
2190 interest” means possession of the power to direct or cause the
2191 direction of the management or policies of a company whether
2192 through ownership of securities, by contract, or otherwise. Any
2193 person who directly or indirectly has the right to vote 25
2194 percent or more of the voting securities of a company or is
2195 entitled to 25 percent or more of the company’s profits is
2196 presumed to possess a controlling interest.
2197 (f)(c) Any addition of a partner, officer, member, joint
2198 venturer, director, control person, or ultimate equitable owner
2199 of the applicant who does not have a controlling interest and
2200 who has not previously filed a Uniform Mortgage Biographical
2201 Statement & Consent Form, MU2, or has not previously complied
2202 with the fingerprinting and credit report requirements
2203 provisions of ss. 494.00321 and 494.00322, s. 494.0031(2)(c) and
2204 (d) is subject to the such provisions of these sections unless
2205 required to file an initial application in accordance with
2206 paragraph (a). If, after the addition of a control person, the
2207 office finds that the licensee does not continue to meet
2208 licensure requirements, the office may bring an administrative
2209 action in accordance with s. 494.00255 s. 494.0041 to enforce
2210 the provisions of this chapter.
2211 (d) The commission shall adopt rules pursuant to ss.
2212 120.536(1) and 120.54 providing for the waiver of the
2213 application required by this subsection if the person or group
2214 of persons proposing to purchase or acquire a controlling
2215 interest in a licensee has previously complied with the
2216 provisions of s. 494.0031(2)(c) and (d) with respect to the same
2217 legal entity or is currently licensed by the office under this
2218 chapter.
2219 (7) On or before April 30, 2000, each mortgage brokerage
2220 business shall file an initial report stating the name, social
2221 security number, date of birth, mortgage broker license number,
2222 date of hire and, if applicable, date of termination for each
2223 person who was an associate of the mortgage brokerage business
2224 during the immediate preceding quarter. Thereafter, A mortgage
2225 brokerage business shall file a quarterly report only if a
2226 person became an associate or ceased to be an associate of the
2227 mortgage brokerage business during the immediate preceding
2228 quarter. Such report shall be filed within 30 days after the
2229 last day of each calendar quarter and shall contain the name,
2230 social security number, date of birth, mortgage broker license
2231 number, date of hire and, if applicable, the date of termination
2232 of each person who became or ceased to be an associate of the
2233 mortgage brokerage business during the immediate preceding
2234 quarter. The commission shall prescribe, by rule, the procedures
2235 for filing reports required by this subsection.
2236 (2)(8)(a) In every mortgage loan transaction, each licensee
2237 under this part must ss. 494.003-494.0043 shall notify a
2238 borrower of any material changes in the terms of a mortgage loan
2239 previously offered to the borrower within 3 business days after
2240 being made aware of such changes by the mortgage lender but at
2241 least not less than 3 business days before the signing of the
2242 settlement or closing statement. The licensee bears the burden
2243 of proving such notification was provided and accepted by the
2244 borrower.
2245 (b) A borrower may waive the right to receive notice of a
2246 material change that is granted under paragraph (a) if the
2247 borrower determines that the extension of credit is needed to
2248 meet a bona fide personal financial emergency and the right to
2249 receive notice would delay the closing of the mortgage loan. The
2250 imminent sale of the borrower’s home at foreclosure during the
2251 3-day period before the signing of the settlement or closing
2252 statement is constitutes an example of a bona fide personal
2253 financial emergency. In order to waive the borrower’s right to
2254 receive notice not less than 3 business days before the signing
2255 of the settlement or closing statement of any such material
2256 change, the borrower must provide the licensee with a dated
2257 written statement that describes the personal financial
2258 emergency, waives the right to receive the notice, bears the
2259 borrower’s signature, and is not on a printed form prepared by
2260 the licensee for the purpose of such a waiver.
2261 (3) Each mortgage broker shall submit to the registry
2262 reports of condition, which must be in such form and shall
2263 contain such information as the registry may require.
2264 (4) A license issued under this part is not transferable or
2265 assignable.
2266 Section 36. Section 494.0041, Florida Statutes, is
2267 repealed.
2268 Section 37. Section 494.0042, Florida Statutes, is amended
2269 to read:
2270 494.0042 Loan origination Brokerage fees.—
2271 (1) A loan origination mortgage brokerage fee earned by a
2272 licensee, pursuant to this part ss. 494.003-494.0043, is not
2273 considered interest or a finance charge under chapter 687.
2274 (2) A person may not charge or exact, directly or
2275 indirectly, from the borrower mortgagor a fee or commission in
2276 excess of the maximum fee or commission specified in this
2277 section. The maximum fees or commissions that may be charged for
2278 mortgage loans are as follows:
2279 (a) On a mortgage loan of $1,000 or less: $250.
2280 (b) On a mortgage loan exceeding $1,000 and not exceeding
2281 $2,000: $250 for the first $1,000 of the mortgage loan, plus $10
2282 for each additional $100 of the mortgage loan.
2283 (c) On a mortgage loan exceeding $2,000 and not exceeding
2284 $5,000: $350 for the first $2,000 of the mortgage loan, plus $10
2285 for each additional $100 of the mortgage loan.
2286 (d) On a mortgage loan exceeding $5,000: $250 plus 10
2287 percent of the entire mortgage loan.
2288
2289 For the purpose of determining the maximum fee, the amount of
2290 the mortgage loan is based on the amount of mortgage loan
2291 actually funded exclusive of the authorized maximum fees or
2292 commissions.
2293 (3) At the time of accepting a mortgage loan application, a
2294 mortgage broker brokerage business may receive from the borrower
2295 a nonrefundable application fee. If the mortgage loan is funded,
2296 the nonrefundable application fee shall be credited against the
2297 amount owed as a result of the loan being funded. A person may
2298 not receive any form of compensation for acting as a loan
2299 originator mortgage broker other than a nonrefundable
2300 application fee, a fee based on the mortgage amount being
2301 funded, or a fee which complies with s. 494.00421.
2302 Section 38. Section 494.00421, Florida Statutes, is amended
2303 to read:
2304 494.00421 Fees earned upon obtaining a bona fide
2305 commitment.—Notwithstanding the provisions of ss. 494.001
2306 494.0077, any mortgage broker brokerage business which contracts
2307 to receive from a borrower a loan origination mortgage brokerage
2308 fee from a borrower upon obtaining a bona fide commitment shall
2309 accurately disclose in the mortgage broker brokerage agreement:
2310 (1) The gross loan amount.
2311 (2) In the case of a fixed-rate mortgage, the note rate.
2312 (3) In the case of an adjustable rate mortgage:
2313 (a) The initial note rate.
2314 (b) The length of time for which the initial note rate is
2315 effective.
2316 (c) The frequency of changes.
2317 (d) The limitation upon such changes including adjustment
2318 to adjustment cap and life cap.
2319 (e) Whether the loan has any potential for negative
2320 amortization.
2321 (f) Identification of the margin-interest rate
2322 differential.
2323 (g) Identification of a nationally recognized index which
2324 index must be free from control of the mortgage broker, mortgage
2325 brokerage business, mortgage lender, or correspondent mortgage
2326 lender.
2327 (4) The estimated net proceeds to be paid directly to the
2328 borrower. “Estimated net proceeds” means the cash to be received
2329 by the borrower after payment of any fees, charges, debts,
2330 liens, or encumbrances to perfect the lien of the new mortgage
2331 and establish the agreed-upon priority of the new mortgage.
2332 (5) The lien priority of the new proposed mortgage.
2333 (6) The number of calendar days, which are mutually agreed
2334 upon, within which the mortgage broker brokerage business shall
2335 obtain a bona fide mortgage commitment.
2336 (7)(a) The following statement, in at least no less than
2337 12-point boldface type immediately above the signature lines for
2338 the borrowers:
2339
2340 “You are entering into a contract with a mortgage broker
2341 brokerage business to obtain a bona fide mortgage loan
2342 commitment under the same terms and conditions as stated
2343 hereinabove or in a separate executed good faith estimate form.
2344 If the mortgage broker brokerage business obtains a bona fide
2345 commitment under the same terms and conditions, you will be
2346 obligated to pay the loan origination mortgage brokerage
2347 business fees, including, but not limited to, a mortgage
2348 brokerage fee, even if you choose not to complete the loan
2349 transaction. If the provisions of s. 494.00421, Florida
2350 Statutes, are not met, the loan origination mortgage brokerage
2351 fee can only be earned upon the funding of the mortgage loan.
2352 The borrower may contact the Department of Financial Services,
2353 Tallahassee, Florida, regarding any complaints that the borrower
2354 may have against the loan originator mortgage broker or the
2355 mortgage brokerage business. The telephone number of the
2356 department is: ...([insert telephone number])....”
2357 (b) Paragraph (a) does not apply to nonresidential mortgage
2358 loan commitments in excess of $1 million.
2359 (8) Any other disclosure required pursuant to s. 494.0038.
2360 Section 39. Section 494.0043, Florida Statutes, is amended
2361 to read:
2362 494.0043 Requirements for brokering loans to
2363 noninstitutional investors.—
2364 (1) A loan originator mortgage broker, when arranging a
2365 mortgage loan for a noninstitutional investor, shall:
2366 (a) Before any payment of money by the a noninstitutional
2367 investor, provide an opinion of value from an appraiser stating
2368 the value of the security property unless the opinion is waived
2369 in writing. The opinion must state the value of the property as
2370 it exists on the date of the opinion. If any relationship exists
2371 between the loan originator or mortgage broker and the
2372 appraiser, that relationship shall be disclosed to the investor.
2373 (b) Provide to the noninstitutional investor a mortgagee’s
2374 title insurance policy or an opinion of title by an attorney
2375 licensed to practice law in the state, or a copy thereof.
2376 1. If a title insurance policy is issued, it must insure
2377 the noninstitutional investor against the unmarketability of the
2378 mortgagee’s interest in such title. It must shall also specify
2379 any superior liens that exist against the property. If an
2380 opinion of title is issued by an attorney licensed to practice
2381 law in the state, the opinion must include a statement as to the
2382 marketability of the title to the property described in the
2383 mortgage and specify the priority of the mortgage being closed.
2384 2. If the title insurance policy or opinion of title is not
2385 available at the time of purchase, the licensee shall provide a
2386 binder of the title insurance or conditional opinion of title.
2387 This binder or opinion must include any conditions or
2388 requirements that need needed to be corrected before prior to
2389 the issuance of the final title policy or opinion of title. The
2390 binder or opinion must also include information concerning the
2391 requirements specified in subparagraph 1. Any conditions must be
2392 eliminated or waived in writing by the investor before prior to
2393 delivery to the noninstitutional investor. The policy or
2394 opinion, or a copy thereof, shall be delivered to the investor
2395 within a reasonable period of time, not exceeding 6 months,
2396 after closing.
2397 3. The requirements of this paragraph may be waived in
2398 writing. If the requirements are waived by the noninstitutional
2399 investor, the waiver must include the following statement
2400 wording: “The noninstitutional investor acknowledges that the
2401 mortgage broker or mortgage lender brokering this mortgage loan
2402 is not providing a title insurance policy or opinion of title
2403 issued by an attorney who is licensed to practice law in the
2404 State of Florida. Any requirement for title insurance or for a
2405 legal opinion of title is the sole responsibility of the
2406 noninstitutional mortgage investor.”
2407 (c) Provide, if the loan is other than a first mortgage, a
2408 statement showing the balance owed by the mortgagor on any
2409 existing mortgages prior to this investment and the status of
2410 such existing mortgages.
2411 (d) Provide a disclosure if the licensee is directly or
2412 indirectly acting as a borrower or principal in the transaction.
2413 (2) Each original or certified copy of the mortgage, or
2414 other instrument securing a note or assignment thereof, must
2415 shall be recorded before being delivered to the noninstitutional
2416 investor. A mortgage broker shall cause the properly endorsed
2417 original note to be delivered to the noninstitutional investor.
2418 (3) Each mortgage and assignment must shall be recorded as
2419 soon as practical, but no later than 30 business days after the
2420 date of closing.
2421 (4) Any money from a noninstitutional investor for
2422 disbursement at a mortgage loan closing must shall be deposited
2423 with and disbursed by an attorney duly licensed in this state or
2424 by a title company duly licensed in this state. A person acting
2425 as a loan originator mortgage broker may not have control of any
2426 money from a noninstitutional investor. This subsection does not
2427 prohibit a licensee under this part ss. 494.003-494.0043 from
2428 receiving a loan origination mortgage brokerage fee upon the
2429 closing of the mortgage loan funded by the noninstitutional
2430 investor.
2431 Section 40. Effective January 1, 2010, section 494.006,
2432 Florida Statutes, is repealed.
2433 Section 41. Section 494.0061, Florida Statutes, is
2434 repealed.
2435 Section 42. Section 494.00611, Florida Statutes, is created
2436 to read:
2437 494.00611 Mortgage lender license.—
2438 (1) Each person who acts as a mortgage lender must be
2439 licensed under this section.
2440 (2) In order to apply for a mortgage lender license an
2441 applicant must:
2442 (a) Submit a completed application form as prescribed by
2443 the commission by rule.
2444 (b) Designate a qualified principal loan originator who
2445 meets the requirements of s. 494.0035 on the application form.
2446 (c) Submit a nonrefundable application fee of $500, and the
2447 $100 nonrefundable fee if required by s. 494.00172. Application
2448 fees may not be prorated for partial years of licensure.
2449 (d) Submit fingerprints for each of the applicant’s control
2450 persons in accordance with rules adopted by the commission:
2451 1. The fingerprints may be submitted to the registry, the
2452 office, or a vendor acting on behalf of the registry or the
2453 office.
2454 2. The office may contract with a third-party vendor to
2455 provide live-scan fingerprinting in lieu of a paper fingerprint
2456 card.
2457 3. A state criminal history background check must be
2458 conducted through the Department of Law Enforcement and a
2459 federal criminal history background check must be conducted
2460 through the Federal Bureau of Investigation.
2461 4. All fingerprints submitted to the Department of Law
2462 Enforcement must be submitted electronically and entered into
2463 the statewide automated fingerprint identification system
2464 established in s. 943.05(2)(b) and available for use in
2465 accordance with s. 943.05(2)(g) and (h). The office shall pay an
2466 annual fee to the department to participate in the system and
2467 inform the department of any person whose fingerprints are no
2468 longer required to be retained.
2469 5. The costs of fingerprint processing, including the cost
2470 of retaining the fingerprints, shall be borne by the person
2471 subject to the background check.
2472 6. The office is responsible for reviewing the results of
2473 the state and federal criminal history checks and determining
2474 whether the applicant meets licensure requirements.
2475 (e) Indicate whether the applicant will be seeking a
2476 servicing endorsement on the application form.
2477 (f) Submit a copy of the applicant’s financial audit report
2478 for the most recent fiscal year which, pursuant to United States
2479 generally accepted accounting principles. If the applicant is a
2480 wholly owned subsidiary of another corporation, the financial
2481 audit report for the parent corporation satisfies this
2482 requirement. The commission may establish by rule the form and
2483 procedures for filing the financial audit report, including the
2484 requirement to file the report with the registry when technology
2485 is available. The financial audit report must document that the
2486 applicant has a bona fide and verifiable net worth, of at least
2487 $63,000 if the applicant is not seeking a servicing endorsement,
2488 or at least $250,000 if the applicant is seeking a servicing
2489 endorsement, which must be continuously maintained as a
2490 condition of licensure. However, if the applicant held an active
2491 license issued before October 1, 2010, pursuant to former s.
2492 494.0065, and the applicant is seeking a servicing endorsement,
2493 the minimum net worth requirement:
2494 1. Until September 30, 2011, is $63,000.
2495 2. Between October 1, 2011, and September 30, 2012, is
2496 $125,000.
2497 3. On or after October 1, 2012, is $250,000.
2498 (g) Authorize the registry to obtain an independent credit
2499 report on each of the applicant’s control persons from a
2500 consumer reporting agency, and transmit or provide access to the
2501 report to the office. The cost of the credit report shall be
2502 borne by the applicant.
2503 (h) Submit additional information or documentation
2504 requested by the office and required by rule concerning the
2505 applicant or a control person of the applicant. Additional
2506 information may include documentation of pending and prior
2507 disciplinary and criminal history events, including arrest
2508 reports and certified copies of charging documents, plea
2509 agreements, judgments and sentencing documents, documents
2510 relating to pretrial intervention, orders terminating probation
2511 or supervised release, final administrative agency orders, or
2512 other comparable documents that may provide the office with the
2513 appropriate information to determine eligibility for licensure.
2514 (i) Submit any other information required by the registry
2515 for the processing of the application.
2516 (3) An application is considered received for the purposes
2517 of s. 120.60 upon the office’s receipt of all documentation from
2518 the registry, including the completed application form, criminal
2519 history information, and independent credit report, as well as
2520 the license application fee, the fee required under s.
2521 494.00172, and all applicable fingerprinting processing fees.
2522 (4) The office shall issue a mortgage lender license to
2523 each person who is not otherwise ineligible and who meets the
2524 requirements of this section. However, it is a ground for denial
2525 of licensure if the applicant or one of the applicant’s control
2526 persons:
2527 (a) Has committed any violation specified in ss. 494.001
2528 494.0077, or is the subject of a pending felony criminal
2529 prosecution or a prosecution or an administrative enforcement
2530 action, in any jurisdiction, which involves fraud, dishonesty,
2531 breach of trust, money laundering, or any other act of moral
2532 turpitude.
2533 (b) Has failed to demonstrate the character, general
2534 fitness, and financial responsibility necessary to command the
2535 confidence of the community and warrant a determination that the
2536 applicant will operate honestly, fairly, and efficiently.
2537 1. If the office has information that could form the basis
2538 for license denial under this paragraph, before denying the
2539 license, the office must notify the applicant in writing of the
2540 specific items of concern and provide the applicant with an
2541 opportunity to explain the circumstances surrounding the
2542 specific items and provide any information that the applicant
2543 believes is relevant to the office’s determination.
2544 2. For purposes of evaluating adverse information found in
2545 an applicant’s credit report, the information must be considered
2546 within the totality of the circumstances. Information provided
2547 by the applicant under subparagraph 1., or information obtained
2548 by the office by other means, may be used to provide a context
2549 for the adverse items. For example, the adverse items may have
2550 resulted from factors that do not necessarily reflect negatively
2551 upon the applicant’s character, general fitness, or financial
2552 responsibility.
2553 3. The office may not use a credit score or the absence or
2554 insufficiency of credit history information to determine
2555 character, general fitness, or financial responsibility.
2556 4. If information contained in a credit report is used as
2557 the basis for denying a license, the office shall, in accordance
2558 with s. 120.60(3), provide with particularity the grounds or
2559 basis for denial. The use of the terms “poor credit history,”
2560 “poor credit rating,” or similar language do not meet the
2561 requirements of this paragraph.
2562 (5) The office may not issue a license if the applicant has
2563 had a mortgage lender license or its equivalent revoked in any
2564 jurisdiction, or any of the applicant’s control persons has ever
2565 had a loan originator license or its equivalent revoked in any
2566 jurisdiction.
2567 (6) A person required to be licensed under this part, or an
2568 agent or employee thereof, is deemed to have consented to the
2569 venue of courts in this state regarding any matter within the
2570 authority of ss. 494.001-494.0077 regardless of where an act or
2571 violation was committed.
2572 (7) A license issued in accordance with this part is not
2573 transferable or assignable.
2574 (8) A mortgage lender or branch office license may be
2575 annulled pursuant to s. 120.60 if it was issued by the office by
2576 mistake. A license must be reinstated if the applicant
2577 demonstrates that the requirements for obtaining the license
2578 under this chapter have been satisfied.
2579 (9) Each lender, regardless of the number of branches it
2580 operates, shall designate a principal loan originator
2581 representative who exercises control of the licensee’s business,
2582 and a branch manager for each branch office. Each mortgage
2583 lender must keep the office informed of the persons designated
2584 as prescribed by commission rule, which includes documentation
2585 of the individual’s acceptance of such responsibility. If the
2586 designation is inaccurate, the branch shall be deemed to be
2587 operated under the full charge, control, and supervision by each
2588 officer, director, or ultimate equitable owner of a 10 percent
2589 or greater interest in the mortgage lender business, or any
2590 other person in a similar capacity during that time.
2591 (10) All mortgage lender licenses must be renewed annually
2592 by December 31 pursuant to s. 494.00612. If a person holding an
2593 active mortgage lender license has not applied to renew the
2594 license on or before December 31, the mortgage lender license
2595 expires on December 31. If a person holding an active mortgage
2596 lender license has applied to renew the license on or before
2597 December 31, the mortgage lender license remains active until
2598 the renewal application is approved or denied. A mortgage lender
2599 is not precluded from reapplying for licensure upon expiration
2600 of a previous license.
2601 Section 43. Section 494.00612, Florida Statutes, is created
2602 to read:
2603 494.00612 Mortgage lender license renewal.—
2604 (1) In order to renew a mortgage lender license, a mortgage
2605 lender must:
2606 (a) Submit a completed license renewal form as prescribed
2607 by commission rule.
2608 (b) Submit a nonrefundable renewal fee of $475, the $100
2609 nonrefundable fee if required by s. 494.00172, and nonrefundable
2610 fees to cover the cost of further fingerprint processing and
2611 retention as set forth in commission rule.
2612 (c) Submit fingerprints in accordance with s.
2613 494.00611(2)(d) for any new control persons who have not been
2614 screened.
2615 (d) Provide proof that the mortgage lender continues to
2616 meet the applicable net worth requirement in a form prescribed
2617 by commission rule.
2618 (e) Authorize the registry to obtain an independent credit
2619 report on the mortgage lender from a consumer reporting agency,
2620 and transmit or provide access to the report to the office. The
2621 cost of the credit report shall be borne by the licensee.
2622 (f) Submit any additional information or documentation
2623 requested by the office and required by rule concerning the
2624 licensee. Additional information may include documentation of
2625 pending and prior disciplinary and criminal history events,
2626 including arrest reports and certified copies of charging
2627 documents, plea agreements, judgments and sentencing documents,
2628 documents relating to pretrial intervention, orders terminating
2629 probation or supervised release, final administrative agency
2630 orders, or other comparable documents that may provide the
2631 office with the appropriate information to determine eligibility
2632 for renewal of licensure.
2633 (2) The office may not renew a mortgage lender license
2634 unless the mortgage lender continues to meet the minimum
2635 requirements for initial licensure pursuant to s. 494.00611 and
2636 adopted rule.
2637 Section 44. Section 494.0062, Florida Statutes, is
2638 repealed.
2639 Section 45. Section 494.0063, Florida Statutes, is amended
2640 to read:
2641 494.0063 Audited financial statements.—All audited
2642 financial statements required by ss. 494.001-494.0077 must be
2643 prepared by an independent licensed certified public accountant.
2644 A mortgage lender must obtain an annual financial audit report
2645 as of the date of the licensee’s fiscal year end, as disclosed
2646 to the office on the application or a subsequent amendment to
2647 the application. The mortgage lender shall submit a copy of the
2648 report to the office within 120 days after the end of the
2649 licensee’s fiscal year. If the licensee is a wholly owned
2650 subsidiary of another corporation, the financial audit report of
2651 the parent corporation’s satisfies this requirement. If the
2652 licensee changes its fiscal year, the licensee must file a
2653 report within 18 months after the previously submitted report.
2654 The commission may establish by rule the procedures and form for
2655 filing a financial audit report, including the requirement to
2656 file the report with the registry when technology is available.
2657 Section 46. Section 494.0064, Florida Statutes, is
2658 repealed.
2659 Section 47. Section 494.0065, Florida Statutes, is
2660 repealed.
2661 Section 48. Section 494.0066, Florida Statutes, is amended
2662 to read:
2663 494.0066 Branch offices.—
2664 (1) Each branch office of a mortgage lender must be
2665 licensed under this section A branch office license is required
2666 for each branch office maintained by a licensee under ss.
2667 494.006-494.0077.
2668 (2) The office shall issue a branch office license to a
2669 mortgage lender licensee licensed under ss. 494.006-494.0077
2670 after the office determines that the mortgage lender licensee
2671 has submitted a completed branch office application form as
2672 prescribed by rule by the commission, and an initial
2673 nonrefundable branch office license fee of $225 per branch
2674 office $325. Application fees may not be prorated for partial
2675 years of licensure. The branch office application must include
2676 the name and license number of the mortgage lender licensee
2677 under this part ss. 494.006-494.0077, the name of the branch
2678 manager licensee’s employee in charge of the branch office, and
2679 the address of the branch office. The branch office license
2680 shall be issued in the name of the mortgage lender licensee
2681 under ss. 494.006-494.0077 and must be renewed in conjunction
2682 with the license renewal. An application is considered received
2683 for purposes of s. 120.60 upon receipt of a completed branch
2684 office renewal form, as prescribed by commission rule, and the
2685 required fees.
2686 (3) A branch office license must be renewed at the time of
2687 renewing the mortgage lender license. A nonrefundable fee of
2688 $225 per branch office must be submitted at the time of renewal.
2689 Section 49. Section 494.00665, Florida Statutes, is created
2690 to read:
2691 494.00665 Principal loan originator and branch manager for
2692 mortgage lender.—
2693 (1) Each mortgage lender business must be operated by a
2694 principal loan originator who shall have full charge, control,
2695 and supervision of the mortgage lender business. The principal
2696 loan originator must be licensed as a loan originator pursuant
2697 to s. 494.00312. Each mortgage lender must keep the office
2698 informed of the person designated as the principal loan
2699 originator as prescribed by commission rule. If the designation
2700 is inaccurate, the business shall be deemed to be operated under
2701 the full charge, control, and supervision of each officer,
2702 director, or ultimate equitable owner of a 10 percent or greater
2703 interest in the mortgage lender business, or any other person in
2704 a similar capacity during that time.
2705 (2) Each branch office of a mortgage lender must be
2706 operated by a branch manager who shall have full charge,
2707 control, and supervision of the branch office. The designated
2708 branch manager must be a licensed loan originator pursuant to s.
2709 494.00312. Each mortgage lender must keep the office informed of
2710 the person designated as the branch manager as prescribed by
2711 commission rule, which includes documentation of the
2712 individual’s acceptance of such responsibility. If the
2713 designation is inaccurate, the branch office shall be deemed to
2714 be operated under the full charge, control, and supervision of
2715 each officer, director, or ultimate equitable owner of a 10
2716 percent or greater interest in the mortgage lender business, or
2717 any other person in a similar capacity during that time.
2718 Section 50. Section 494.0067, Florida Statutes, is amended
2719 to read:
2720 494.0067 Requirements of mortgage lenders licensees under
2721 ss. 494.006-494.0077.—
2722 (1) A mortgage lender that Each licensee under ss. 494.006
2723 494.0077 which makes mortgage loans on real estate in this state
2724 shall transact business from a principal place of business. Each
2725 principal place of business and each branch office shall be
2726 operated under the full charge, control, and supervision of the
2727 licensee pursuant to this part under ss. 494.006-494.0077.
2728 (2) A license issued under this part ss. 494.006-494.0077
2729 is not transferable or assignable.
2730 (3) A mortgage lender Each licensee under ss. 494.006
2731 494.0077 shall report, on a form prescribed by rule of the
2732 commission, any change in the information contained in any
2733 initial application form, or any amendment thereto, within not
2734 later than 30 days after the change is effective.
2735 (4) A mortgage lender Each licensee under ss. 494.006
2736 494.0077 shall report any changes in the principal loan
2737 originator, any addition or subtraction of a control person,
2738 partners, officers, members, joint venturers, directors, or
2739 control persons of any licensee or any change changes in the
2740 form of business organization by written amendment in such form
2741 and at such time that the commission specifies by rule.
2742 (a) In any case in which a person or a group of persons,
2743 directly or indirectly or acting by or through one or more
2744 persons, proposes to purchase or acquire a controlling interest
2745 in a licensee, such person or group must submit an initial
2746 application for licensure as a mortgage lender or correspondent
2747 mortgage lender before such purchase or acquisition and at the
2748 time and in the form prescribed by the commission by rule.
2749 (b) As used in this subsection, the term “controlling
2750 interest” means possession of the power to direct or cause the
2751 direction of the management or policies of a company whether
2752 through ownership of securities, by contract, or otherwise. Any
2753 person who directly or indirectly has the right to vote 25
2754 percent or more of the voting securities of a company or who is
2755 entitled to 25 percent or more of the company’s profits is
2756 presumed to possess a controlling interest.
2757 (b)(c) Any addition of a designated principal
2758 representative, partner, officer, member, joint venturer,
2759 director, or control person of the applicant who does not have a
2760 controlling interest and who has not previously filed a Uniform
2761 Mortgage Biographical Statement & Consent Form, MU2, or has not
2762 previously complied with the fingerprinting and credit report
2763 requirements of s. 494.00611 is the provisions of s.
2764 494.0061(2)(g) and (h), s. 494.0062(2)(g) and (h), or s.
2765 494.0065(5)(e) and (f) shall be subject to the such provisions
2766 of this section unless required to file an initial application
2767 in accordance with paragraph (a). If after the addition of a
2768 control person, the office determines that the licensee does not
2769 continue to meet licensure requirements, the office may bring
2770 administrative action in accordance with s. 494.00255 s.
2771 494.0072 to enforce the provisions of this section.
2772 (d) The commission shall adopt rules pursuant to ss.
2773 120.536(1) and 120.54 providing for the waiver of the
2774 application required by this subsection if the person or group
2775 of persons proposing to purchase or acquire a controlling
2776 interest in a licensee has previously complied with the
2777 provisions of s. 494.0061(2)(g) and (h), s. 494.0062(2)(g) and
2778 (h), or s. 494.0065(5)(e) and (f) with the same legal entity or
2779 is currently licensed with the office under this chapter.
2780 (5) Each mortgage lender licensee under ss. 494.006
2781 494.0077 shall report in a form prescribed by rule of by the
2782 commission any indictment, information, charge, conviction, or
2783 plea of guilty or nolo contendere, regardless of adjudication,
2784 or plea of guilty to any felony or any crime or administrative
2785 violation that involves fraud, dishonesty, breach of trust,
2786 money laundering dishonest dealing, or any other act of moral
2787 turpitude, in any jurisdiction, by the licensee under ss.
2788 494.006-494.0077 or any principal officer, director, or ultimate
2789 equitable owner of 10 percent or more of the licensed
2790 corporation, within not later than 30 business days after the
2791 indictment, information, charge, conviction, or final
2792 administrative action.
2793 (6) Each mortgage lender licensee under ss. 494.006
2794 494.0077 shall report any action in bankruptcy, voluntary or
2795 involuntary, to the office, within 30 not later than 7 business
2796 days after the action is instituted.
2797 (7) Each mortgage lender licensee under ss. 494.006
2798 494.0077 shall designate a registered agent in this state for
2799 service of process.
2800 (8) Each mortgage lender licensee under ss. 494.006
2801 494.0077 shall provide an applicant for a mortgage loan a good
2802 faith estimate of the costs the applicant can reasonably expect
2803 to pay in obtaining a mortgage loan. The good faith estimate of
2804 costs must shall be mailed or delivered to the applicant within
2805 3 business days a reasonable time after the licensee receives a
2806 written loan application from the applicant. The estimate of
2807 costs may be provided to the applicant by a person other than
2808 the licensee making the loan. The good faith estimate must
2809 identify the recipient of all payments charged to the borrower
2810 and, except for all fees to be received by the mortgage broker
2811 brokerage business and the mortgage lender or correspondent
2812 mortgage lender, may be disclosed in generic terms, such as, but
2813 not limited to, paid to appraiser, officials, title company, or
2814 any other third-party service provider. The licensee bears the
2815 burden of proving such disclosures were provided to the
2816 borrower. The commission may adopt rules that set forth the
2817 disclosure requirements of this section.
2818 (9) On or before April 30, 2000, each mortgage lender or
2819 correspondent mortgage lender shall file an initial report
2820 stating the full legal name, residential address, social
2821 security number, date of birth, mortgage broker license number,
2822 date of hire, and, if applicable, date of termination for each
2823 person who acted as a loan originator or an associate of the
2824 mortgage lender or correspondent mortgage lender during the
2825 immediate preceding quarter. Thereafter, a mortgage lender or
2826 correspondent mortgage lender shall file a report only if a
2827 person became or ceased to be a loan originator or an associate
2828 of the mortgage lender or correspondent mortgage lender during
2829 the immediate preceding quarter. Such report shall be filed
2830 within 30 days after the last day of each calendar quarter and
2831 shall contain the full legal name, residential address, social
2832 security number, date of birth, date of hire and, if applicable,
2833 the mortgage broker license number and date of termination of
2834 each person who became or ceased to be a loan originator or an
2835 associate of the mortgage lender or correspondent mortgage
2836 lender during the immediate preceding quarter. The commission
2837 shall prescribe, by rule, the procedures for filing reports
2838 required by this subsection.
2839 (10)(a) Each mortgage lender or correspondent mortgage
2840 lender licensee shall require the principal representative and
2841 all loan originators, not currently licensed as mortgage brokers
2842 pursuant to s. 494.0033, who perform services for the licensee
2843 to complete 14 hours of professional continuing education during
2844 each biennial license period. The education shall cover primary
2845 and subordinate mortgage financing transactions and the
2846 provisions of this chapter and the rules adopted under this
2847 chapter.
2848 (b) The licensee shall maintain records of such training
2849 for a period of 4 years, including records of the content of and
2850 hours designated for each program and the date and location of
2851 the program.
2852 (c) Evidence of completion of such programs shall be
2853 included with the licensee’s renewal application.
2854 (9)(11) The disclosures in this subsection must be
2855 furnished in writing at the time an adjustable rate mortgage
2856 loan is offered to the borrower and whenever the terms of the
2857 adjustable rate mortgage loan offered have a material change
2858 prior to closing. The lender shall furnish the disclosures
2859 relating to adjustable rate mortgages in a format prescribed by
2860 ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
2861 of the Federal Reserve System, as amended; its commentary, as
2862 amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
2863 1601 et seq., as amended; together with the Consumer Handbook on
2864 Adjustable Rate Mortgages, as amended; published by the Federal
2865 Reserve Board and the Federal Home Loan Bank Board. The licensee
2866 bears the burden of proving such disclosures were provided to
2867 the borrower.
2868 (10)(12)(a) In every mortgage loan transaction, each
2869 mortgage lender licensee under ss. 494.006-494.0077 shall notify
2870 a borrower of any material changes in the terms of a mortgage
2871 loan previously offered to the borrower within 3 business days
2872 after being made aware of such changes by the lender but at
2873 least not less than 3 business days before the signing of the
2874 settlement or closing statement. The licensee bears the burden
2875 of proving such notification was provided and accepted by the
2876 borrower.
2877 (b) A borrower may waive the right to receive notice of a
2878 material change that is granted under paragraph (a) if the
2879 borrower determines that the extension of credit is needed to
2880 meet a bona fide personal financial emergency and the right to
2881 receive notice would delay the closing of the mortgage loan. The
2882 imminent sale of the borrower’s home at foreclosure during the
2883 3-day period before the signing of the settlement or closing
2884 statement constitutes an example of a bona fide personal
2885 financial emergency. In order to waive the borrower’s right to
2886 receive notice not less than 3 business days before the signing
2887 of the settlement or closing statement of any such material
2888 change, the borrower must provide the licensee with a dated
2889 written statement that describes the personal financial
2890 emergency, waives the right to receive the notice, bears the
2891 borrower’s signature, and is not on a printed form prepared by
2892 the licensee for the purpose of such a waiver.
2893 (11) A mortgage lender may close loans in its own name but
2894 may not service the loan for more than 4 months unless the
2895 lender has a servicing endorsement. Only a mortgage lender who
2896 continuously maintains a net worth of at least $250,000 may
2897 obtain a servicing endorsement.
2898 (12) A mortgage lender must report to the office the
2899 failure to meet the applicable net worth requirements of s.
2900 494.00611 within 2 days after the mortgage lender’s knowledge of
2901 such failure or after the mortgage lender should have known of
2902 such failure.
2903 Section 51. Section 494.0068, Florida Statutes, is amended
2904 to read:
2905 494.0068 Loan application process.—
2906 (1) In addition to the requirements set forth in s.
2907 494.0067(8), before accepting an application fee in whole or in
2908 part, a credit report fee, an appraisal fee, or a fee charged as
2909 reimbursement for third-party charges, a mortgage lender shall
2910 make a written disclosure to the borrower, which disclosure may
2911 be contained in the application, setting forth:
2912 (a) Whether all or any part of such fees or charges is
2913 refundable.
2914 (b) The terms and conditions for the refund, if all or any
2915 part of the fees or charges is refundable.
2916 (c) A realistic estimate of the number of days required to
2917 issue a commitment following receipt of the application by the
2918 lender.
2919 (d) The name or title of a person within the lender’s
2920 organization to whom the borrower may address written questions,
2921 comments, or complaints and who is required to promptly respond
2922 to such inquiries.
2923 (2) The disclosures required in subsection (1) must shall
2924 be acknowledged in writing by the borrower and maintained by the
2925 mortgage lender, and a copy of such acknowledgment shall be
2926 given to the borrower.
2927 (3) The borrower may, without penalty or responsibility for
2928 paying additional fees and charges, withdraw an application at
2929 any time prior to acceptance of commitment. Upon such
2930 withdrawal, the mortgage lender is responsible for refunding to
2931 the borrower only those fees and charges to which the borrower
2932 may be entitled pursuant to the terms set forth in the written
2933 disclosure required by subsection (1), except that:
2934 (a) If the lender failed to provide the borrower with the
2935 written disclosure required by subsection (1), the lender shall
2936 promptly refund to the borrower all funds paid to the lender; or
2937 (b) If the lender failed to make a good faith effort to
2938 approve the loan, the lender shall promptly refund to the
2939 borrower all funds paid to the lender.
2940 (4) The application fee must be reasonably related to the
2941 services to be performed and may not be based upon a percentage
2942 of the principal amount of the loan or the amount financed.
2943 (5) For the purposes of this section, the term “application
2944 fee” means any moneys advanced by the borrower upon filing an
2945 application with a mortgage lender to offset the lender’s
2946 expenses for determining whether the borrower is qualified for
2947 the mortgage loan or whether the mortgage loan should be funded.
2948 Section 52. Section 494.0069, Florida Statutes, is amended
2949 to read:
2950 494.0069 Lock-in agreement.—
2951 (1) Each lock-in agreement must be in writing and must
2952 contain:
2953 (a) The expiration date of the lock-in, if any;
2954 (b) The interest rate locked in, if any;
2955 (c) The discount points locked in, if any;
2956 (d) The commitment fee locked in, if any;
2957 (e) The lock-in fee, if any; and
2958 (f) A statement advising of the provisions of this part ss.
2959 494.006-494.0077 regarding lock-in agreements.
2960 (2) The mortgage lender or correspondent mortgage lender
2961 shall make a good faith effort to process the mortgage loan
2962 application and stand ready to fulfill the terms of its
2963 commitment before the expiration date of the lock-in agreement
2964 or any extension thereof.
2965 (3) Any lock-in agreement received by a mortgage lender or
2966 correspondent mortgage lender by mail or through a mortgage
2967 broker must be signed by the mortgage lender or correspondent
2968 mortgage lender in order to become effective. The borrower may
2969 rescind any lock-in agreement until a written confirmation of
2970 the agreement has been signed by the lender and mailed to the
2971 borrower or to the mortgage broker brokerage business pursuant
2972 to its contractual relationship with the borrower. If a borrower
2973 elects to so rescind, the mortgage lender or correspondent
2974 mortgage lender shall promptly refund any lock-in fee paid.
2975 (4)(a) Before Any correspondent mortgage lender or mortgage
2976 lender prior to issuing a mortgage loan rate lock-in agreement,
2977 a mortgage lender must have the ability to timely advance funds
2978 on all mortgage loans for which rate lock-in agreements have
2979 been issued. As used in this section, “ability to timely advance
2980 funds” means having sufficient liquid assets or a line of credit
2981 necessary to cover all rate lock-in agreements issued with
2982 respect to which a lock-in fee is collected.
2983 (a)(b) A correspondent mortgage lender or mortgage lender
2984 that does not comply with this subsection paragraph (a) may
2985 issue mortgage rate lock-in agreements only if, prior to the
2986 issuance, the correspondent mortgage lender or mortgage lender:
2987 1. Has received a written rate lock-in agreement from a
2988 correspondent mortgage lender or mortgage lender that complies
2989 with this subsection paragraph (a); or
2990 2. Has received a written rate lock-in agreement from an
2991 institutional investor or an agency of the Federal Government or
2992 the state or local government that will be funding, making, or
2993 purchasing the mortgage loan.
2994 (b)(c) All rate lock-in fees collected by a mortgage lender
2995 or correspondent mortgage lender who is not in compliance with
2996 paragraph (a) must be deposited into an escrow account in a
2997 federally insured financial institution, and such fees may shall
2998 not be removed from such escrow account until:
2999 1. The mortgage loan closes and is funded;
3000 2. The applicant cancels the loan application or the loan
3001 application is rejected; or
3002 3. The mortgage lender or correspondent mortgage lender is
3003 required to forward a portion of the lock-in fee to another
3004 correspondent mortgage lender, mortgage lender, institutional
3005 investor, or agency that will be funding, making, or purchasing
3006 the loan. The mortgage lender or correspondent mortgage lender
3007 may remove only the amount of the lock-in fee actually paid to
3008 another mortgage lender, correspondent mortgage lender,
3009 institutional investor, or agency.
3010 (5) For purposes of this section, the term “lock-in fee”
3011 means any moneys advanced by the borrower to lock in for a
3012 specified period of time a specified interest rate or discount
3013 points.
3014 (6) The commission may adopt by rule a form for required
3015 lock-in agreement disclosures.
3016 Section 53. Effective July 1, 2009, section 494.007,
3017 Florida Statutes, is amended to read:
3018 494.007 Commitment process.—
3019 (1) If a commitment is issued, the mortgage lender shall
3020 disclose in writing:
3021 (a) The expiration date of the commitment;
3022 (b) The mortgage amount, meaning the face amount of credit
3023 provided to the borrower or in the borrower’s behalf;
3024 (c) If the interest rate or other terms are subject to
3025 change before expiration of the commitment:
3026 1. The basis, index, or method, if any, which will be used
3027 to determine the rate at closing. Such basis, index, or method
3028 shall be established and disclosed with direct reference to the
3029 movement of an interest rate index or of a national or regional
3030 index that is available to and verifiable by the borrower and
3031 beyond the control of the lender; or
3032 2. The following statement, in at least 10-point bold type:
3033 “The interest rate will be the rate established by the lender in
3034 its discretion as its prevailing rate . . . days before
3035 closing.”;
3036 (d) The amount of the commitment fee, if any, and whether
3037 and under what circumstances the commitment fee is refundable;
3038 and
3039 (e) The time, if any, within which the commitment must be
3040 accepted by the borrower.
3041 (2) The provisions of a commitment cannot be changed prior
3042 to expiration of the specified period within which the borrower
3043 must accept it. If any information necessary for an accurate
3044 disclosure required by subsection (1) is unknown to the mortgage
3045 lender at the time disclosure is required, the lender shall make
3046 the disclosure based upon the best information reasonably
3047 available to it and shall state that the disclosure is an
3048 estimate.
3049 (3) A commitment fee is refundable if:
3050 (a) The commitment is contingent upon approval by parties
3051 to whom the mortgage lender seeks to sell the loan.
3052 (b) The loan purchaser’s requirements are not met due to
3053 circumstances beyond the borrower’s control.
3054 (c) The borrower is willing but unable to comply with the
3055 loan purchaser’s requirements.
3056 Section 54. Section 494.0071, Florida Statutes, is amended
3057 to read:
3058 494.0071 Expiration of lock-in agreement or commitment.—If
3059 a lock-in agreement has been executed and the loan does not
3060 close before the expiration date of either the lock-in agreement
3061 or any commitment issued consistent therewith through no
3062 substantial fault of the borrower, the borrower may withdraw the
3063 application or reject or terminate any commitment, whereupon the
3064 mortgage lender or correspondent mortgage lender shall promptly
3065 refund to the borrower any lock-in fee and any commitment fee
3066 paid by the borrower.
3067 Section 55. Section 494.0072, Florida Statutes, is
3068 repealed.
3069 Section 56. Section 494.00721, Florida Statutes, is amended
3070 to read:
3071 494.00721 Net worth.—
3072 (1) The net worth requirements required in s. 494.00611 ss.
3073 494.0061, 494.0062, and 494.0065 shall be continually maintained
3074 as a condition of licensure.
3075 (2) If a mortgage lender or correspondent mortgage lender
3076 fails to satisfy the net worth requirements, the mortgage lender
3077 or correspondent mortgage lender shall immediately cease taking
3078 any new mortgage loan applications. Thereafter, the mortgage
3079 lender or correspondent mortgage lender shall have up to 60 days
3080 within which to satisfy the net worth requirements. If the
3081 licensee makes the office aware, prior to an examination, that
3082 the licensee no longer meets the net worth requirements, the
3083 mortgage lender or correspondent mortgage lender shall have 120
3084 days within which to satisfy the net worth requirements. A
3085 mortgage lender may or correspondent mortgage lender shall not
3086 resume acting as a mortgage lender or correspondent mortgage
3087 lender without written authorization from the office, which
3088 authorization shall be granted if the mortgage lender or
3089 correspondent mortgage lender provides the office with
3090 documentation which satisfies the requirements of s. 494.00611
3091 s. 494.0061(2)(c), s. 494.0062(2)(c), or s. 494.0065(2),
3092 whichever is applicable.
3093 (3) If the mortgage lender or correspondent mortgage lender
3094 does not satisfy the net worth requirements within 120 days the
3095 120-day period, the license of the mortgage lender or
3096 correspondent mortgage lender shall be deemed to be relinquished
3097 and canceled and all servicing contracts shall be disposed of in
3098 a timely manner by the mortgage lender or correspondent mortgage
3099 lender.
3100 Section 57. Section 494.0073, Florida Statutes, is amended
3101 to read:
3102 494.0073 Mortgage lender or correspondent mortgage lender
3103 when acting as a mortgage broker brokerage business.—The
3104 provisions of this part Sections 494.006-494.0077 do not
3105 prohibit a mortgage lender or correspondent mortgage lender from
3106 acting as a mortgage broker brokerage business. However, in
3107 mortgage transactions in which a mortgage lender or
3108 correspondent mortgage lender acts as a mortgage broker
3109 brokerage business, the provisions of ss. 494.0038, 494.004(2)
3110 494.004(8), 494.0042, and 494.0043(1), (2), and (3) apply.
3111 Section 58. Effective July 1, 2009, section 494.0075,
3112 Florida Statutes, is amended to read:
3113 494.0075 Requirements for selling loans to noninstitutional
3114 investors.—
3115 (1) A mortgage lender, when selling a mortgage loan to a
3116 noninstitutional investor, shall:
3117 (a) Before any payment of money by a noninstitutional
3118 investor, provide an opinion of value from an appraiser stating
3119 the value of the security property unless the opinion is waived
3120 in writing. The opinion must state the value of the property as
3121 it exists on the date of the opinion. If any relationship exists
3122 between the lender and the appraiser, that relationship must
3123 shall be disclosed.;
3124 (b) Provide to the noninstitutional investor a mortgagee’s
3125 title insurance policy or an opinion of title by an attorney
3126 licensed to practice law in this state, or a copy thereof:
3127 1. If a title insurance policy is issued, it must insure
3128 the noninstitutional investor against the unmarketability of the
3129 mortgagee’s interest in such title. It must also specify any
3130 superior liens that exist against the property. If an opinion of
3131 title is issued by an attorney licensed to practice law in this
3132 state, the opinion must include a statement as to the
3133 marketability of the title to the property described in the
3134 mortgage and specify the priority of the mortgage being
3135 purchased.
3136 2. If the title insurance policy or opinion of title is not
3137 available at the time of purchase, the licensee shall provide a
3138 binder of the title insurance or conditional opinion of title.
3139 This binder or opinion must include any conditions or
3140 requirements needed to be corrected before prior to the issuance
3141 of the final title policy or opinion of title. The binder or
3142 opinion must also include information concerning the
3143 requirements specified in subparagraph 1. Any conditions must be
3144 eliminated or waived in writing by the investor before prior to
3145 delivery to the noninstitutional investor. The policy or
3146 opinion, or a copy thereof, shall be delivered to the investor
3147 within a reasonable period of time, not exceeding 6 months,
3148 after purchase.
3149 3. The requirements of this paragraph may be waived in
3150 writing. If the requirements are waived by the noninstitutional
3151 investor, the waiver must include the following wording: “The
3152 noninstitutional investor acknowledges that the mortgage lender
3153 selling this mortgage loan is not providing a title insurance
3154 policy or opinion of title issued by an attorney who is licensed
3155 to practice law in the State of Florida. Any requirement for
3156 title insurance or for a legal opinion of title is the sole
3157 responsibility of the noninstitutional mortgage purchaser.”
3158 (c) Provide, if the loan is other than a first mortgage, a
3159 statement showing the balance owed by the mortgagor on any
3160 existing mortgages prior to this investment and the status of
3161 such existing mortgages.
3162 (d) Provide a disclosure if the licensee is directly or
3163 indirectly acting as a borrower or principal in the transaction.
3164 (2) Each mortgage, or other instrument securing a note or
3165 assignment thereof, must shall be recorded before being
3166 delivered to the noninstitutional investor.
3167 (3) Each mortgage and assignment shall be recorded as soon
3168 as practical, but within no later than 30 business days after
3169 the date of purchase.
3170 (4) If the loan is to be serviced by a licensee under this
3171 part ss. 494.006-494.0077 for a noninstitutional investor, there
3172 shall be a written servicing agreement.
3173 (5) The mortgage lender shall cause the original note to be
3174 properly endorsed showing the assignment of the note to the
3175 noninstitutional investor.
3176 Section 59. Effective July 1, 2009, paragraph (a) of
3177 subsection (1) of section 494.0076, Florida Statutes, is amended
3178 to read:
3179 494.0076 Servicing audits.—
3180 (1)(a) Each licensee under part III of chapter who ss.
3181 494.006-494.0077 which services mortgage loans shall:
3182 1. Maintain a segregated set of records for accounts that
3183 are serviced by the licensee.
3184 2. Have a separate, segregated depository account for all
3185 receipts relating to servicing.
3186 Section 60. Effective July 1, 2009, section 494.0077,
3187 Florida Statutes, is amended to read:
3188 494.0077 Other products and services.—This part does
3189 Sections 494.006-494.0077 do not prohibit a mortgage lender from
3190 offering, for a fee or commission, products and services in
3191 addition to those offered in conjunction with making a mortage
3192 loan.
3193 Section 61. Effective July 1, 2009, subsection (2) of
3194 section 501.1377, Florida Statutes, is amended to read:
3195 501.1377 Violations involving homeowners during the course
3196 of residential foreclosure proceedings.—
3197 (2) DEFINITIONS.—As used in this section, the term:
3198 (a) “Equity purchaser” means a any person who acquires a
3199 legal, equitable, or beneficial ownership interest in any
3200 residential real property as a result of a foreclosure-rescue
3201 transaction. The term does not apply to a person who acquires
3202 the legal, equitable, or beneficial interest in such property:
3203 1. By a certificate of title from a foreclosure sale
3204 conducted under chapter 45;
3205 2. At a sale of property authorized by statute;
3206 3. By order or judgment of any court;
3207 4. From a spouse, parent, grandparent, child, grandchild,
3208 or sibling of the person or the person’s spouse; or
3209 5. As a deed in lieu of foreclosure, a workout agreement, a
3210 bankruptcy plan, or any other agreement between a foreclosing
3211 lender and a homeowner.
3212 (b) “Foreclosure-rescue consultant” means a person who
3213 directly or indirectly makes a solicitation, representation, or
3214 offer to a homeowner to provide or perform, in return for
3215 payment of money or other valuable consideration, foreclosure
3216 related rescue services. The term does not apply to:
3217 1. A person excluded under s. 501.212.
3218 2. A person acting under the express authority or written
3219 approval of the United States Department of Housing and Urban
3220 Development or other department or agency of the United States
3221 or this state to provide foreclosure-related rescue services.
3222 3. A charitable, not-for-profit agency or organization, as
3223 determined by the United States Internal Revenue Service under
3224 s. 501(c)(3) of the Internal Revenue Code, which offers
3225 counseling or advice to an owner of residential real property in
3226 foreclosure or loan default if the agency or organization does
3227 not contract for foreclosure-related rescue services with a for
3228 profit lender or person facilitating or engaging in foreclosure
3229 rescue transactions.
3230 4. A person who holds or is owed an obligation secured by a
3231 lien on any residential real property in foreclosure if the
3232 person performs foreclosure-related rescue services in
3233 connection with this obligation or lien and the obligation or
3234 lien was not the result of or part of a proposed foreclosure
3235 reconveyance or foreclosure-rescue transaction.
3236 5. A financial institution as defined in s. 655.005 and any
3237 parent or subsidiary of the financial institution or of the
3238 parent or subsidiary.
3239 6. A licensed mortgage broker, mortgage lender, or
3240 correspondent mortgage lender that provides mortgage counseling
3241 or advice regarding residential real property in foreclosure,
3242 which counseling or advice is within the scope of services set
3243 forth in chapter 494 and is provided without payment of money or
3244 other consideration other than a loan origination mortgage
3245 brokerage fee as defined in s. 494.001.
3246 7. A licensed attorney who negotiates the terms of a
3247 mortgage loan on behalf of a client as an ancillary matter to
3248 the attorney’s representation of the client.
3249 (c) “Foreclosure-related rescue services” means any good or
3250 service related to, or promising assistance in connection with:
3251 1. Stopping, avoiding, or delaying foreclosure proceedings
3252 concerning residential real property; or
3253 2. Curing or otherwise addressing a default or failure to
3254 timely pay with respect to a residential mortgage loan
3255 obligation.
3256 (d) “Foreclosure-rescue transaction” means a transaction:
3257 1. By which residential real property in foreclosure is
3258 conveyed to an equity purchaser and the homeowner maintains a
3259 legal or equitable interest in the residential real property
3260 conveyed, including, without limitation, a lease option
3261 interest, an option to acquire the property, an interest as
3262 beneficiary or trustee to a land trust, or other interest in the
3263 property conveyed; and
3264 2. That is designed or intended by the parties to stop,
3265 avoid, or delay foreclosure proceedings against a homeowner’s
3266 residential real property.
3267 (e) “Homeowner” means the any record title owner of
3268 residential real property that is the subject of foreclosure
3269 proceedings.
3270 (f) “Residential real property” means real property
3271 consisting of one-family to four-family dwelling units, one of
3272 which is occupied by the owner as his or her principal place of
3273 residence.
3274 (g) “Residential real property in foreclosure” means
3275 residential real property against which there is an outstanding
3276 notice of the pendency of foreclosure proceedings recorded
3277 pursuant to s. 48.23.
3278 Section 62. Paragraph (b) of subsection (2) of section
3279 501.1377, Florida Statutes, as amended by this act, is amended
3280 to read:
3281 (2) DEFINITIONS.—As used in this section, the term:
3282 (b) “Foreclosure-rescue consultant” means a person who
3283 directly or indirectly makes a solicitation, representation, or
3284 offer to a homeowner to provide or perform, in return for
3285 payment of money or other valuable consideration, foreclosure
3286 related rescue services. The term does not apply to:
3287 1. A person excluded under s. 501.212.
3288 2. A person acting under the express authority or written
3289 approval of the United States Department of Housing and Urban
3290 Development or other department or agency of the United States
3291 or this state to provide foreclosure-related rescue services.
3292 3. A charitable, not-for-profit agency or organization, as
3293 determined by the United States Internal Revenue Service under
3294 s. 501(c)(3) of the Internal Revenue Code, which offers
3295 counseling or advice to an owner of residential real property in
3296 foreclosure or loan default if the agency or organization does
3297 not contract for foreclosure-related rescue services with a for
3298 profit lender or person facilitating or engaging in foreclosure
3299 rescue transactions.
3300 4. A person who holds or is owed an obligation secured by a
3301 lien on any residential real property in foreclosure if the
3302 person performs foreclosure-related rescue services in
3303 connection with this obligation or lien and the obligation or
3304 lien was not the result of or part of a proposed foreclosure
3305 reconveyance or foreclosure-rescue transaction.
3306 5. A financial institution as defined in s. 655.005 and any
3307 parent or subsidiary of the financial institution or of the
3308 parent or subsidiary.
3309 6. A licensed mortgage broker, mortgage lender, or
3310 correspondent mortgage lender that provides mortgage counseling
3311 or advice regarding residential real property in foreclosure,
3312 which counseling or advice is within the scope of services set
3313 forth in chapter 494 and is provided without payment of money or
3314 other consideration other than a loan origination mortgage
3315 brokerage fee as defined in s. 494.001.
3316 7. A licensed attorney who negotiates the terms of a
3317 mortgage loan on behalf of a client as an ancillary matter to
3318 the attorney’s representation of the client.
3319 Section 63. Paragraph (b) of subsection (2) of section
3320 501.0377, Florida Statutes, as amended by this act, is amended
3321 to read:
3322 (2) DEFINITIONS.—As used in this section, the term:
3323 (b) “Foreclosure-rescue consultant” means a person who
3324 directly or indirectly makes a solicitation, representation, or
3325 offer to a homeowner to provide or perform, in return for
3326 payment of money or other valuable consideration, foreclosure
3327 related rescue services. The term does not apply to:
3328 1. A person excluded under s. 501.212.
3329 2. A person acting under the express authority or written
3330 approval of the United States Department of Housing and Urban
3331 Development or other department or agency of the United States
3332 or this state to provide foreclosure-related rescue services.
3333 3. A charitable, not-for-profit agency or organization, as
3334 determined by the United States Internal Revenue Service under
3335 s. 501(c)(3) of the Internal Revenue Code, which offers
3336 counseling or advice to an owner of residential real property in
3337 foreclosure or loan default if the agency or organization does
3338 not contract for foreclosure-related rescue services with a for
3339 profit lender or person facilitating or engaging in foreclosure
3340 rescue transactions.
3341 4. A person who holds or is owed an obligation secured by a
3342 lien on any residential real property in foreclosure if the
3343 person performs foreclosure-related rescue services in
3344 connection with this obligation or lien and the obligation or
3345 lien was not the result of or part of a proposed foreclosure
3346 reconveyance or foreclosure-rescue transaction.
3347 5. A financial institution as defined in s. 655.005 and any
3348 parent or subsidiary of the financial institution or of the
3349 parent or subsidiary.
3350 6. A licensed mortgage broker, mortgage lender, or
3351 correspondent mortgage lender that provides mortgage counseling
3352 or advice regarding residential real property in foreclosure,
3353 which counseling or advice is within the scope of services set
3354 forth in chapter 494 and is provided without payment of money or
3355 other consideration other than a mortgage broker brokerage fee
3356 as defined in s. 494.001.
3357 7. A licensed attorney who negotiates the terms of a
3358 mortgage loan on behalf of a client as an ancillary matter to
3359 the attorney’s representation of the client.
3360 Section 64. Effective July 1, 2009, paragraph (c) of
3361 subsection (1) of section 201.23, Florida Statutes, is amended
3362 to read:
3363 201.23 Foreign notes and other written obligations exempt.—
3364 (1) There shall be exempt from all excise taxes imposed by
3365 this chapter:
3366 (c) Any promissory note, nonnegotiable note, or other
3367 written obligation to pay money if the said note or obligation
3368 is executed and delivered outside this state and at the time of
3369 its making is secured only by a mortgage, deed of trust, or
3370 similar security agreement encumbering real estate located
3371 outside this state and if such promissory note, nonnegotiable
3372 note, or other written obligation for payment of money is
3373 brought into this state for deposit as collateral security under
3374 a wholesale warehouse mortgage agreement or for inclusion in a
3375 pool of mortgages deposited with a custodian as security for
3376 obligations issued by an agency of the United States Government
3377 or for inclusion in a pool of mortgages to be serviced for the
3378 account of a customer by a mortgage lender licensed or exempt
3379 from licensing under part III of chapter 494 ss. 494.006
3380 494.0077.
3381 Section 65. Effective July 1, 2009, paragraph (a) of
3382 subsection (21) of section 420.507, Florida Statutes, is amended
3383 to read:
3384 420.507 Powers of the corporation.—The corporation shall
3385 have all the powers necessary or convenient to carry out and
3386 effectuate the purposes and provisions of this part, including
3387 the following powers which are in addition to all other powers
3388 granted by other provisions of this part:
3389 (21) Review all reverse mortgage provisions proposed to be
3390 used by an individual lender or a consortium to determine that
3391 such provisions are consistent with the purposes and intent of
3392 this act. If the corporation finds that the provisions are
3393 consistent, it shall approve those provisions. If the
3394 corporation finds that the provisions are inconsistent, it shall
3395 state its objections and give the parties an opportunity to
3396 amend the provisions to overcome such objections. In approving
3397 these provisions, the corporation must determine:
3398 (a) That the mortgagee is either licensed pursuant to part
3399 II of chapter 494 ss. 494.006-494.0077 or specifically exempt
3400 from part III of chapter 494 ss. 494.006-494.0077.
3401 Section 66. Effective July 1, 2009, subsection (1) of
3402 section 520.52, Florida Statutes, is amended to read:
3403 520.52 Licensees.—
3404 (1) A person may not engage in the business of a sales
3405 finance company or operate a branch of such business without a
3406 license as provided in this section; however, a bank, trust
3407 company, savings and loan association, or credit union
3408 authorized to do business in this state is not required to
3409 obtain a license under this part. Any person authorized as a
3410 licensee or registrant pursuant to part III of chapter 494 ss.
3411 494.006-494.0077 is not required to obtain a license under this
3412 part in order to become an assignee of a home improvement
3413 finance seller.
3414 Section 67. Effective July 1, 2009, subsection (1) of
3415 section 520.63, Florida Statutes, is amended to read:
3416 520.63 Licensees.—
3417 (1) A person may not engage in or transact any business as
3418 a home improvement finance seller or operate a branch without
3419 first obtaining a license from the office, except that a banking
3420 institution, trust company, savings and loan association, credit
3421 union authorized to do business in this state, or licensee under
3422 part III of chapter 494 ss. 494.006-494.0077 is not required to
3423 obtain a license to engage in home improvement financing.
3424 Section 68. Effective July 1, 2009, paragraph (b) of
3425 subsection (11) of section 607.0505, Florida Statutes, is
3426 amended to read:
3427 607.0505 Registered agent; duties.—
3428 (11) As used in this section, the term:
3429 (b) “Financial institution” means:
3430 1. A bank, banking organization, or savings association, as
3431 defined in s. 220.62;
3432 2. An insurance company, trust company, credit union, or
3433 industrial savings bank, any of which is licensed or regulated
3434 by an agency of the United States or any state of the United
3435 States; or
3436 3. Any person licensed under part III of chapter 494 the
3437 provisions of ss. 494.006-494.0077.
3438 Section 69. Effective July 1, 2009, subsection (1) of
3439 section 687.12, Florida Statutes, is amended to read:
3440 687.12 Interest rates; parity among licensed lenders or
3441 creditors.—
3442 (1) Any lender or creditor licensed or chartered under the
3443 provisions of chapter 516, chapter 520, chapter 657, chapter 658
3444 or former chapter 659, former chapter 664 or former chapter 656,
3445 chapter 665, or part XV of chapter 627; any lender or creditor
3446 located in this state the State of Florida and licensed or
3447 chartered under the laws of the United States and authorized to
3448 conduct a lending business; or any lender or creditor lending
3449 through a licensee under part III of chapter 494, is ss.
3450 494.006-494.0077, shall be authorized to charge interest on
3451 loans or extensions of credit to any person as defined in s.
3452 1.01(3), or to any firm or corporation, at the maximum rate of
3453 interest permitted by law to be charged on similar loans or
3454 extensions of credit made by any lender or creditor in this
3455 state the State of Florida, except that the statutes governing
3456 the maximum permissible interest rate on any loan or extension
3457 of credit, and other statutory restrictions relating thereto,
3458 shall also govern the amount, term, permissible charges, rebate
3459 requirements, and restrictions for a similar loan or extension
3460 of credit made by any lender or creditor.
3461 Section 70. Effective September 1, 2010:
3462 (1) All mortgage business school permits issued pursuant to
3463 s. 494.0029, Florida Statutes, expire on September 30, 2010.
3464 (2) All mortgage brokerage business licenses issued before
3465 October 1, 2010, pursuant to s. 494.0031 or s. 494.0032, Florida
3466 Statutes, expire on December 31, 2010. However, if a person
3467 holding an active mortgage brokerage business license issued
3468 before October 1, 2010, applies for a mortgage broker license
3469 through the Nationwide Mortgage Licensing System and Registry
3470 between October 1, 2010, and December 31, 2010, the mortgage
3471 brokerage business license does not expire until the Office of
3472 Financial Regulation approves or denies the mortgage broker
3473 license application. A mortgage broker license approved on or
3474 after October 1, 2010, is effective until December 31, 2011.
3475 Application fees may not be prorated for partial years of
3476 licensure.
3477 (3) All mortgage broker licenses issued before October 1,
3478 2010, pursuant to s. 494.0033 or s. 494.0034, Florida Statutes,
3479 expire on December 31, 2010. However, if a person holding an
3480 active mortgage broker license issued before October 1, 2010,
3481 applies for a loan originator license through the Nationwide
3482 Mortgage Licensing System and Registry between October 1, 2010,
3483 and December 31, 2010, the mortgage broker license does not
3484 expire until the Office of Financial Regulation approves or
3485 denies the loan originator license application. Notwithstanding
3486 s. 120.60, Florida Statutes, for mortgage broker applications
3487 submitted between July 1, 2009, and December 31, 2009, or loan
3488 originator applications submitted between October 1, 2010, and
3489 December 31, 2010, the office has 60 days to notify the
3490 applicant of any apparent errors or omissions in an application
3491 and to request any additional information that the office may
3492 require, and the office has 180 days to approve or deny a
3493 completed application. Application fees may not be prorated for
3494 partial years of licensure.
3495 (4) All mortgage lender licenses issued before October 1,
3496 2010, pursuant to s. 494.0061 or s. 494.0064, Florida Statutes,
3497 expire on December 31, 2010. However, if a person holding an
3498 active mortgage lender license applies for a mortgage broker
3499 license or mortgage lender license through the Nationwide
3500 Mortgage Licensing System and Registry between October 1, 2010,
3501 and December 31, 2010, the mortgage lender license does not
3502 expire until the Office of Financial Regulation approves or
3503 denies the mortgage broker license or mortgage lender license
3504 application. Application fees may not be prorated for partial
3505 years of licensure.
3506 (5) All mortgage lender licenses issued before October 1,
3507 2010, pursuant to s. 494.0065 or s. 494.0064, Florida Statutes,
3508 expire on December 31, 2010. However, if a person holding such
3509 license applies for a mortgage broker license or mortgage lender
3510 license through the Nationwide Mortgage Licensing System and
3511 Registry between October 1, 2010, and December 31, 2010, the
3512 mortgage lender license does not expire until the Office of
3513 Financial Regulation approves or denies the mortgage broker
3514 license or mortgage lender license application. Application fees
3515 may not be prorated for partial years of licensure.
3516 (6) All correspondent mortgage lender licenses issued
3517 before October 1, 2010, pursuant to s. 494.0062 or s. 494.0064,
3518 Florida Statutes, expire on December 31, 2010. However, if a
3519 person holding an active correspondent mortgage lender license
3520 issued before October 1, 2010, applies for a mortgage broker or
3521 mortgage lender license through the Nationwide Mortgage
3522 Licensing System and Registry between October 1, 2010, and
3523 December 31, 2010, the correspondent mortgage lender license
3524 does not expire until the Office of Financial Regulation
3525 approves or denies the mortgage broker or mortgage lender
3526 license application. Application fees may not be prorated for
3527 partial years of licensure.
3528 Section 71. Except as otherwise expressly provided in this
3529 act and except for this section, which shall take effect July 1,
3530 2009, this act shall take effect October 1, 2010.