HB 7099

1	A bill to be entitled
2	An act relating to mortgage brokering and lending;
3	amending s. 494.001, F.S.; redefining terms, defining new
4	terms, and deleting terms; amending s. 494.0011, F.S.;
5	authorizing the Financial Services Commission to adopt
6	rules relating to compliance with the S.A.F.E. Mortgage
7	Licensing Act of 2008; requiring the commission to adopt
8	rules establishing time periods for barring licensure for
9	certain misdemeanors and felonies; authorizing the Office
10	of Financial Regulation to participate in the Nationwide
11	Mortgage Licensing System and Registry; creating s.
12	494.00121, F.S.; providing for the issuance of subpoenas;
13	amending s. 494.0014, F.S.; revising provisions relating
14	to the refund of fees; deleting an obsolete provision;
15	amending s. 494.00165, F.S.; prohibiting unfair and
16	deceptive advertising relating to mortgage brokering and
17	lending; repealing s. 494.0017, F.S., relating to claims
18	paid from the Regulatory Trust Fund; creating s.
19	494.00172, F.S.; providing for a $20 fee to be assessed
20	against loan originators and a $100 fee to be assessed
21	against mortgage brokers and lenders at the time of
22	license application or renewal; providing that such fees
23	shall be deposited into the Mortgage Guaranty Trust Fund
24	and used to pay claims against licensees; providing for a
25	cap on the amount collected and deposited; providing
26	requirements for seeking recovery from the trust fund;
27	providing limitations on the amount paid; providing for
28	awards of actual or compensatory damages; providing for
29	awards of attorney's fees and costs; providing
30	limitations; providing for the assignment of certain
31	rights to the office; providing that payment for a claim
32	is prima facie grounds for the revocation of a license;
33	amending s. 494.0018, F.S.; conforming cross-references;
34	amending ss. 494.0019 and 494.002, F.S.; conforming terms;
35	amending s. 494.0023, F.S.; deleting the statutory
36	disclosure form and revising the disclosure that must be
37	provided to a borrower in writing; providing that there is
38	a conflicting interest if a licensee or the licensee's
39	relatives have a 1 percent or more interest in the person
40	providing additional products or services; authorizing the
41	commission to adopt rules; amending s. 494.0025, F.S.;
42	prohibiting the alteration, withholding, concealment, or
43	destruction of records relevant to regulated activities;
44	creating s. 494.255, F.S.; providing for license
45	violations and administrative penalties; authorizing a
46	fine of $1,000 for each day of unlicensed activity up to
47	$25,000; amending s. 494.0028, F.S.; conforming terms;
48	repealing ss. 494.0029 and 494.00295, F.S., relating to
49	mortgage business schools and continuing education
50	requirements; creating s. 494.00296, F.S.; providing for
51	loan modification services; prohibiting certain related
52	acts; providing for a loan modification agreement and for
53	the inclusion of a borrower's right of cancellation
54	statement; providing remedies; providing a directive to
55	the Division of Statutory Revision; amending s. 494.003,
56	F.S.; revising provisions relating to who is exempt from
57	loan originator or mortgage broker licensing and
58	regulation; repealing s. 494.0031, F.S., relating to
59	licensure as a mortgage brokerage business; creating s.
60	494.00312, F.S.; providing for the licensure of loan
61	originators; providing license application requirements;
62	providing grounds for license denial; requiring the denial
63	of a license under certain circumstances; requiring
64	licenses to be renewed annually by a certain date;
65	creating s. 494.00313, F.S.; providing for the renewal of
66	a loan originator license; repealing s. 494.0032, F.S.,
67	relating to renewal of a mortgage brokerage business
68	license or branch office license; creating s. 494.00321,
69	F.S.; providing for the licensure of mortgage brokers;
70	providing license application requirements; providing
71	grounds for license denial; requiring the denial of a
72	license under certain circumstances; requiring licenses to
73	be renewed by a certain date; creating s. 494.00322, F.S.;
74	providing for the annual renewal of a mortgage broker
75	license; providing license renewal requirements; repealing
76	s. 494.0033, F.S., relating to a mortgage broker license;
77	amending s. 494.00331, F.S.; requiring a loan originator
78	to be an employee or independent contractor for a mortgage
79	broker or mortgage lender; repealing s. 494.0034, F.S.,
80	relating to renewal of mortgage broker license; amending
81	s. 494.0035, F.S.; providing for the management of a
82	mortgage broker by a principal loan originator and a
83	branch office by a loan originator; providing minimum
84	requirements; amending s. 494.0036, F.S.; revising
85	provisions relating to the licensure of a mortgage
86	broker's branch office; amending s. 494.0038, F.S.;
87	revising provisions relating to loan origination and
88	mortgage broker fees; amending s. 494.0039, F.S.;
89	conforming terms; amending s. 494.004, F.S.; revising
90	provisions relating to licensees; providing for registry
91	requirements; deleting obsolete provisions; repealing s.
92	494.0041, F.S., relating to license violations and
93	administrative penalties; providing additional grounds for
94	assessing fines and penalties; amending s. 494.0042, F.S.;
95	providing for loan originator fees; conforming terms;
96	amending ss. 494.00421 and 494.0043, F.S.; conforming
97	terms; amending s. 494.006, F.S.; revising provisions
98	relating to who is exempt from licensure and regulation as
99	a mortgage lender; repealing s. 494.0061, F.S., relating
100	to mortgage lender license requirements; creating s.
101	494.00611, F.S.; providing for the licensure of mortgage
102	lenders; providing license application requirements;
103	providing grounds for license denial; requiring the denial
104	of a license under certain circumstances; requiring
105	licenses to be renewed annually by a certain date;
106	creating s. 494.00612, F.S.; providing for the renewal of
107	a mortgage lender license; repealing s. 494.0062, F.S.,
108	relating to correspondent mortgage lender license
109	requirements; amending s. 494.0063, F.S.; requiring a
110	mortgage lender to obtain an annual financial audit report
111	and submit a copy to the office within certain time
112	periods; repealing s. 494.0064, F.S., relating to renewal
113	of mortgage lender license; repealing s. 494.0065, F.S.,
114	relating to certain licenses and registrations that were
115	converted into mortgage lender licenses; amending s.
116	494.0066, F.S.; revising provisions relating to a mortgage
117	lender branch office license; creating s. 494.00665, F.S.;
118	providing for a principal loan originator and branch
119	manager for a mortgage lender; providing requirements and
120	limitations; amending s. 494.0067, F.S.; revising
121	requirements of mortgage lenders; providing for registry
122	requirements; deleting obsolete provisions; providing for
123	servicing agreements; amending ss. 494.0068, 494.0069,
124	494.007, and 494.0071, F.S.; conforming terms; repealing
125	s. 494.0072, F.S., relating to license violations and
126	administrative penalties; amending ss. 494.00721,
127	494.0073, 494.0075, 494.0077, and 501.1377 F.S.; deleting
128	provisions relating to foreclosure rescue consultants and
129	foreclosure related rescue service agreements; providing
130	for the termination of mortgage business school licenses;
131	providing for the expiration of mortgage brokerage
132	business licenses, mortgage broker licenses, and
133	correspondent mortgage lender licenses; providing
134	requirements for applying for a loan originator, mortgage
135	broker and mortgage lender license by a certain date;
136	providing effective dates.
137
138	Be It Enacted by the Legislature of the State of Florida:
139
140	Section 1.  Section 494.001, Florida Statutes, is amended
141	to read:
142	494.001  Definitions.--As used in ss. 494.001-494.0077, the
143	term:
144	(1)  "Act as a correspondent mortgage lender" means to make
145	a mortgage loan.
146	(2)  "Act as a loan originator" means being employed by a
147	mortgage lender or correspondent mortgage lender, for
148	compensation or gain or in the expectation of compensation or
149	gain, to negotiate, offer to negotiate, or assist any licensed
150	or exempt entity in negotiating the making of a mortgage loan,
151	including, but not limited to, working with a licensed or exempt
152	entity to structure a loan or discussing terms and conditions
153	necessary for the delivery of a loan product. A natural person
154	whose activities are ministerial and clerical, which may include
155	quoting available interest rates, is not acting as a loan
156	originator.
157	(3)  "Act as a mortgage broker" means, for compensation or
158	gain, or in the expectation of compensation or gain, either
159	directly or indirectly, accepting or offering to accept an
160	application for a mortgage loan, soliciting or offering to
161	solicit a mortgage loan on behalf of a borrower, negotiating or
162	offering to negotiate the terms or conditions of a mortgage loan
163	on behalf of a lender, or negotiating or offering to negotiate
164	the sale of an existing mortgage loan to a noninstitutional
165	investor. An employee whose activities are ministerial and
166	clerical, which may include quoting available interest rates or
167	loan terms and conditions, is not acting as a mortgage broker.
168	(4)  "Act as a mortgage lender" means to make a mortgage
169	loan or to service a mortgage loan for others or, for
170	compensation or gain, or in the expectation of compensation or
171	gain, either directly or indirectly, to sell or offer to sell a
172	mortgage loan to a noninstitutional investor.
173	(5)  "Associate" means a person required to be licensed as
174	a mortgage broker under this chapter who is employed by or
175	acting as an independent contractor for a mortgage brokerage
176	business or a person acting as an independent contractor for a
177	mortgage lender or correspondent mortgage lender. The use of the
178	term associate, in contexts other than in the administration of
179	ss. 494.003-494.0077, shall not be construed to impose or effect
180	the common-law or statutory liability of the employer.
181	(1)  "Borrower" means a natural person obligated to repay a
182	mortgage loan and includes, but is not limited to, a coborrower,
183	cosignor, or guarantor.
184	(2)(6)  "Branch manager broker" means the licensed loan
185	originator licensee in charge of, and responsible for, the
186	operation of the a branch office of a mortgage broker or
187	mortgage lender brokerage business.
188	(3)(7)  "Branch office" means a location, other than a
189	mortgage broker's or mortgage lender's licensee's principal
190	place of business:
191	(a)  The address of which appears on business cards,
192	stationery, or advertising used by the licensee in connection
193	with business conducted under this chapter;
194	(b)  At which the licensee's name, advertising or
195	promotional materials, or signage suggest that mortgage loans
196	are originated, negotiated, funded, or serviced; or
197	(c)  At which, due to the actions of any employee or
198	associate of the licensee, may be construed by the public as a
199	branch office of the licensee where mortgage loans are
200	originated, negotiated, funded, or serviced by a licensee.
201	(4)(8)  "Commission" means the Financial Services
202	Commission.
203	(5)(9)  "Control person" means an individual, partnership,
204	corporation, trust, or other organization that possesses the
205	power, directly or indirectly, to direct the management or
206	policies of a company, whether through ownership of securities,
207	by contract, or otherwise. Control person includes, but is not
208	limited to A person is presumed to control a company if, with
209	respect to a particular company, that person:
210	(a)  A company's executive officers, including the
211	president, chief executive officer, chief financial officer,
212	chief operations officer, chief legal officer, chief compliance
213	officer, director, and other individuals having similar status
214	or functions.
215	(b)  For a corporation, each shareholder that, directly or
216	indirectly, owns 10 percent or more or that has the power to
217	vote 10 percent or more, of a class of voting securities unless
218	the applicant is a publicly traded company.
219	(c)  For a partnership, all general partners and limited or
220	special partners that have contributed 10 percent or more or
221	that have the right to receive, upon dissolution, 10 percent or
222	more of the partnership's capital.
223	(d)  For a trust, each trustee.
224	(e)  For a limited liability company, all elected managers
225	and those members that have contributed 10 percent or more or
226	that have the right to receive, upon dissolution, 10 percent or
227	more of the partnership's capital.
228	(f)  Principal loan originators.
229	(6)  "Credit report" means any written, oral, or other
230	information obtained from a consumer reporting agency as
231	described in the federal Fair Credit Reporting Act, which bears
232	on an individual's credit worthiness, credit standing, or credit
233	capacity. A credit score alone, as calculated by the reporting
234	agency, is not considered a credit report.
235	(7)  "Credit score" means a score, grade, or value that is
236	derived by using data from a credit report in any type of model,
237	method, or program, whether electronically, in an algorithm,
238	computer software or program, or any other process, for the
239	purpose of grading or ranking credit report data.
240	(8)  "Depository institution" has the same meaning as in s.
241	(3)(c) of the Federal Deposit Insurance Act, and includes any
242	credit union.
243	(a)  Is a director, general partner, or officer exercising
244	executive responsibility or having similar status or functions;
245	(b)  Directly or indirectly may vote 10 percent or more of
246	a class of voting securities or sell or direct the sale of 10
247	percent or more of a class of voting securities; or
248	(c)  In the case of a partnership, may receive upon
249	dissolution or has contributed 10 percent or more of the
250	capital.
251	(10)  "Office" means the Office of Financial Regulation of
252	the commission.
253	(11)  "Employed" means engaged in the service of another
254	for salary or wages subject to withholding, FICA, or other
255	lawful deductions by the employer as a condition of employment.
256	(12)  "Employee" means a natural person who is employed and
257	who is subject to the right of the employer to direct and
258	control the actions of the employee.
259	(13)  "Good standing" means that the registrant or
260	licensee, or a subsidiary or affiliate thereof, is not, at the
261	time of application, being penalized for one or more of the
262	following disciplinary actions by a licensing authority of any
263	state, territory, or country:
264	(a)  Revocation of a license or registration.
265	(b)  Suspension of a license or registration.
266	(c)  Probation of a license or registration for an offense
267	involving fraud, dishonest dealing, or an act of moral
268	turpitude.
269	(9)  "Financial audit report" means a report prepared in
270	connection with a financial audit that is conducted in
271	accordance with generally accepted auditing standards prescribed
272	by the American Institute of Certified Public Accountants by a
273	certified public accountant licensed to do business in the
274	United States, and which must include:
275	(a)  Financial statements, including notes related to the
276	financial statements and required supplementary information,
277	prepared in conformity with United States generally accepted
278	accounting principles.
279	(b)  An expression of opinion regarding whether the
280	financial statements are presented in conformity with accounting
281	principles generally accepted in the United States, or an
282	assertion to the effect that such an opinion cannot be expressed
283	and the reasons.
284	(10)(14)  "Institutional investor" means a depository
285	institution state or national bank, state or federal savings and
286	loan association or savings bank, real estate investment trust,
287	insurance company, real estate company, accredited investor as
288	defined in 17 C.F.R. ss. 230.501 et seq., mortgage broker or
289	mortgage lender business licensed under this chapter ss.
290	494.001-494.0077, or other business entity that invests in
291	mortgage loans, including a secondary mortgage market
292	institution including, without limitation, the Federal National
293	Mortgage Association, the Federal Home Loan Mortgage
294	Corporation, and the Government National Mortgage Association,
295	conduits, investment bankers, and any subsidiary of such
296	entities.
297	(11)(15)  "Loan commitment" or "commitment" means a
298	statement by the lender setting forth the terms and conditions
299	upon which the lender is willing to make a particular mortgage
300	loan to a particular borrower.
301	(12)  "Loan modification" means a modification to an
302	existing loan. The term does not include a refinancing
303	transaction.
304	(13)  "Loan origination fee" means the total compensation
305	from any source received by a mortgage broker acting as a loan
306	originator. Any payment for processing mortgage loan
307	applications must be included in the fee and must be paid to the
308	mortgage broker.
309	(14)  "Loan originator" means an individual who, directly
310	or indirectly, solicits or offers to solicit a mortgage loan,
311	accepts or offers to accept an application for a mortgage loan,
312	negotiates or offers to negotiate the terms or conditions of a
313	new or existing mortgage loan on behalf of a borrower or lender,
314	processes a mortgage loan application, or negotiates or offers
315	to negotiate the sale of an existing mortgage loan to a
316	noninstitutional investor for compensation or gain. The term
317	includes the activities of a loan originator as that term is
318	defined in the S.A.F.E. Mortgage Licensing Act of 2008, and an
319	individual acting as a loan originator pursuant to that
320	definition is acting as a loan originator for purposes of this
321	definition. The term does not include an employee of a mortgage
322	broker or mortgage lender who performs only administrative or
323	clerical tasks, including quoting available interest rates,
324	physically handling a completed application form, or
325	transmitting a completed form to a lender on behalf of a
326	prospective borrower
327	(15)(16)  "Lock-in agreement" means an agreement whereby
328	the lender guarantees for a specified number of days or until a
329	specified date the availability of a specified rate of interest
330	or specified formula by which the rate of interest will be
331	determined or and/or specific number of discount points will be
332	given, if the loan is approved and closed within the stated
333	period of time.
334	(16)(17)  "Making Make a mortgage loan" means to close a
335	mortgage loan in a person's name, or to advance funds, offer to
336	advance funds, or make a commitment to advance funds to an
337	applicant for a mortgage loan.
338	(17)  "Mortgage broker" means a person conducting loan
339	originator activities through one or more licensed loan
340	originators employed by the mortgage broker or as independent
341	contractors to the mortgage broker.
342	(18)  "Mortgage brokerage fee" means a fee received for
343	acting as a mortgage broker.
344	(19)  "Mortgage brokerage business" means a person acting
345	as a mortgage broker.
346	(18)  "Mortgage lender" means a person making a mortgage
347	loan or servicing a mortgage loan for others, or, for
348	compensation or gain, directly or indirectly, selling or
349	offering to sell a mortgage loan to a noninstitutional investor.
350	(19)(20)  "Mortgage loan" means any:
351	(a)  Residential mortgage loan primarily for personal,
352	family, or household use which is secured by a mortgage, deed of
353	trust, or other equivalent consensual security interest on a
354	dwelling, as defined in s. 103(v) of the federal Truth in
355	Lending Act, or for the purchase of residential real estate upon
356	which a dwelling is to be constructed;
357	(b)  Loan on commercial real property if the borrower is a
358	natural person or the lender is a noninstitutional investor; or
359	(c)  Loan on improved real property consisting of five or
360	more dwelling units if the borrower is a natural person or the
361	lender is a noninstitutional investor.
362	(20)  "Mortgage loan application" means the submission of a
363	borrower's financial information in anticipation of a credit
364	decision, which includes the borrower's name, the borrower's
365	monthly income, the borrower's social security number to obtain
366	a credit report, the property address, an estimate of the value
367	of the property, the mortgage loan amount sought, and any other
368	information deemed necessary by the loan originator. An
369	application may be in writing or electronically submitted,
370	including a written record of an oral application.
371	(21)  "Net worth" means total assets minus total
372	liabilities pursuant to United States generally accepted
373	accounting principles.
374	(22)  "Noninstitutional investor" means an investor other
375	than an institutional investor.
376	(23)  "Nonresidential mortgage loan" means a mortgage loan
377	other than a residential mortgage loan.
378	(23)  "Office" means the Office of Financial Regulation.
379	(24)  "Person" has the same meaning as in s. 1.01 means an
380	individual, partnership, corporation, association, or other
381	group, however organized.
382	(25)  "Principal broker" means a licensee in charge of, and
383	responsible for, the operation of the principal place of
384	business and all branch brokers.
385	(25)  "Principal loan originator" means the licensed loan
386	originator in charge of, and responsible for, the operation of a
387	mortgage lender or mortgage broker, including all of the
388	activities of the mortgage lender's or mortgage broker's loan
389	originators and branch managers, whether employees or
390	independent contractors.
391	(26)  "Principal place of business" means a mortgage
392	broker's or mortgage lender's licensee's primary business
393	office, the street address, or physical location that of which
394	is designated on the application for licensure or any amendment
395	to such application.
396	(27)  "Registered loan originator" means a loan originator
397	who is employed by a depository institution, by a subsidiary
398	that is owned and controlled by a depository institution and
399	regulated by a federal banking agency, or by an institution
400	regulated by the Farm Credit Administration, and who is
401	registered with and maintains a unique identifier through the
402	registry.
403	(28)  "Registry" means the Nationwide Mortgage Licensing
404	System and Registry, which is the mortgage licensing system
405	developed and maintained by the Conference of State Bank
406	Supervisors and the American Association of Residential Mortgage
407	Regulators for the licensing and registration of loan
408	originators.
409	(29)  "Relative" means any of the following, whether by the
410	full or half blood or by adoption:
411	(a)  A person's spouse, father, mother, children, brothers,
412	and sisters.
413	(b)  The father, mother, brothers, and sisters of the
414	person's spouse.
415	(c)  The spouses of the person's children, brothers, or
416	sisters.
417	(27)  "Residential mortgage loan" means any mortgage or
418	other security instrument secured by improved real property
419	consisting of no more than four dwelling units.
420	(30)  "Servicing endorsement" means authorizing a mortgage
421	lender to service a loan for more than 4 months.
422	(31)(28)  "Servicing Service a mortgage loan" means to
423	receive, or cause to be received, or transferred for another,
424	installment payments of principal, interest, or other payments
425	pursuant to a mortgage loan.
426	(32)(29)  "Substantial fault of the borrower" means that
427	the borrower:
428	(a)  Failed to provide information or documentation
429	required by the lender or broker in a timely manner;
430	(b)  Provided information, in the application or
431	subsequently, which upon verification proved to be significantly
432	inaccurate, causing the need for review or further investigation
433	by the lender or broker;
434	(c)  Failed to produce by no later than the date specified
435	by the lender all documentation specified in the commitment or
436	closing instructions as being required for closing; or
437	(d)  Failed to be ready, willing, or able to close the loan
438	by no later than the date specified by the lender or broker.
439
440	For purposes of this definition, a borrower is considered to
441	have provided information or documentation in a timely manner if
442	such information and documentation was received by the lender
443	within 7 days after the borrower received a request for same,
444	and information is considered significantly inaccurate if the
445	correct information materially affects the eligibility of the
446	borrower for the loan for which application is made.
447	(33)(30)  "Ultimate equitable owner" means a natural person
448	who, directly or indirectly, owns or controls an ownership
449	interest in a corporation, a foreign corporation, an alien
450	business organization, or any other form of business
451	organization, regardless of whether such natural person owns or
452	controls such ownership interest through one or more natural
453	persons or one or more proxies, powers of attorney, nominees,
454	corporations, associations, partnerships, trusts, joint stock
455	companies, or other entities or devices, or any combination
456	thereof.
457	(31)  "Principal representative" means an individual who
458	operates the business operations of a licensee under part III.
459	(32)  "Mortgage loan application" means a submission of a
460	borrower's financial information in anticipation of a credit
461	decision, whether written or computer-generated, relating to a
462	mortgage loan. If the submission does not state or identify a
463	specific property, the submission is an application for a
464	prequalification and not an application for a mortgage loan
465	under this part. The subsequent addition of an identified
466	property to the submission converts the submission to an
467	application for a mortgage loan.
468	(33)  "Mortgage brokerage fee" means the total compensation
469	to be received by a mortgage brokerage business for acting as a
470	mortgage broker.
471	(34)  "Business day" means any calendar day except Sunday
472	or a legal holiday.
473	Section 2.  Section 494.0011, Florida Statutes, is amended
474	to read:
475	494.0011  Powers and duties of the commission and office.--
476	(1)  The office shall be responsible for the administration
477	and enforcement of ss. 494.001-494.0077.
478	(2)  The commission may adopt rules pursuant to ss.
479	120.536(1) and 120.54 To administer implement ss. 494.001-
480	494.0077,. the commission may adopt rules:
481	(a)  Requiring electronic submission of any forms,
482	documents, or fees required by this act if such rules reasonably
483	accommodate technological or financial hardship.
484	(b)  Relating to compliance with the S.A.F.E. Mortgage
485	Licensing Act of 2008, including rules to:
486	1.  Require loan originators, mortgage brokers, mortgage
487	lenders, and branch offices to register through the registry.
488	2.  Require the use of uniform forms that have been
489	approved by the registry and any subsequent amendments to such
490	forms if the forms are substantially in compliance with the
491	provisions of this chapter. Uniform forms that the commission
492	may adopt include, but are not limited to:
493	a.  Uniform Mortgage Lender/Mortgage Broker Form, MU1.
494	b.  Uniform Mortgage Biographical Statement & Consent Form,
495	MU2.
496	c.  Uniform Mortgage Branch Office Form, MU3.
497	d.  Uniform Individual Mortgage License/Registration &
498	Consent Form, MU4.
499	3.  Require the filing of forms, documents, and fees in
500	accordance with the requirements of the registry.
501	4.  Prescribe requirements for amending or surrendering a
502	license or other activities as the commission deems necessary
503	for the office's participation in the registry.
504	5.  Prescribe procedures that allow a licensee to challenge
505	information contained in the registry.
506	6.  Prescribe procedures for reporting violations of this
507	chapter and disciplinary actions on licensees to the registry.
508	The commission may prescribe by rule requirements and procedures
509	for obtaining an exemption due to a technological or financial
510	hardship. The commission may also adopt rules to accept
511	certification of compliance with requirements of this act in
512	lieu of requiring submission of documents.
513	(c)  Establishing time periods during which a loan
514	originator, mortgage broker, or mortgage lender license
515	applicant under part II or part III is barred from licensure due
516	to prior criminal convictions of, or guilty or nolo contendere
517	pleas by, any of the applicant's control persons, regardless of
518	adjudication.
519	1.  The rules must provide:
520	a.  Permanent bars for felonies involving fraud,
521	dishonesty, breach of trust, or money laundering;
522	b.  A 15-year disqualifying period for felonies involving
523	moral turpitude;
524	c.  A 7-year period for all other felonies; and
525	d.  A 5-year period for misdemeanors involving fraud,
526	dishonesty, or any other act of moral turpitude.
527	2.  The rule may provide for an additional waiting period
528	due to dates of imprisonment or community supervision, the
529	commitment of multiple crimes, and other factors reasonably
530	related to the applicant's criminal history.
531	3.  The rule may provide for mitigating factors for crimes
532	identified in sub-subparagraph 1.b. However, the mitigation may
533	not result in a period of disqualification less than 7 years.
534	The rule may not mitigate the disqualifying periods in sub-
535	subparagraphs 1.a., 1.c., and 1.d.
536	4.  An applicant is not eligible for licensure until the
537	expiration of the disqualifying period set by rule.
538	5.  Section 112.011 is not applicable to eligibility for
539	licensure under this part.
540	(3)  Except as provided in s. 494.00172, all fees, charges,
541	and fines collected pursuant to ss. 494.001-494.0077 shall be
542	deposited in the State Treasury to the credit of the Regulatory
543	Trust Fund of under the office.
544	(4)  The office shall participate in the registry and shall
545	regularly report to the registry violations of this chapter,
546	disciplinary actions, and other information deemed relevant by
547	the office under this chapter.
548	(4)(a)  The office has the power to issue and to serve
549	subpoenas and subpoenas duces tecum to compel the attendance of
550	witnesses and the production of all books, accounts, records,
551	and other documents and materials relevant to an examination or
552	investigation. The office, or its duly authorized
553	representative, has the power to administer oaths and
554	affirmations to any person.
555	(b)  The office may, in its discretion, seek subpoenas or
556	subpoenas duces tecum from any court of competent jurisdiction
557	commanding the appearance of witnesses and the production of
558	books, accounts, records, and other documents or materials at a
559	time and place named in the subpoenas; and any authorized
560	representative of the office may serve any subpoena.
561	(5)(a)  In the event of substantial noncompliance with a
562	subpoena or subpoena duces tecum issued or caused to be issued
563	by the office, the office may petition the circuit court or any
564	other court of competent jurisdiction of the county in which the
565	person subpoenaed resides or has its principal place of business
566	for an order requiring the subpoenaed person to appear and
567	testify and to produce such books, accounts, records, and other
568	documents as are specified in the subpoena duces tecum. The
569	court may grant injunctive relief restraining the person from
570	advertising, promoting, soliciting, entering into, offering to
571	enter into, continuing, or completing any mortgage loan
572	transaction or mortgage loan servicing transaction. The court
573	may grant such other relief, including, but not limited to, the
574	restraint, by injunction or appointment of a receiver, of any
575	transfer, pledge, assignment, or other disposition of the
576	person's assets or any concealment, alteration, destruction, or
577	other disposition of books, accounts, records, or other
578	documents and materials as the court deems appropriate, until
579	the person has fully complied with the subpoena duces tecum and
580	the office has completed its investigation or examination. In
581	addition, the court may order the refund of any fees collected
582	in a mortgage loan transaction whenever books and documents
583	substantiating the transaction are not produced or cannot be
584	produced. The office is entitled to the summary procedure
585	provided in s. 51.011, and the court shall advance such cause on
586	its calendar. Attorney's fees and any other costs incurred by
587	the office to obtain an order granting, in whole or part, a
588	petition for enforcement of a subpoena or subpoena duces tecum
589	shall be taxed against the subpoenaed person, and failure to
590	comply with such order is a contempt of court.
591	(b)  When it appears to the office that the compliance with
592	a subpoena or subpoena duces tecum issued or caused to be issued
593	by the office pursuant to this section is essential and
594	otherwise unavailable to an investigation or examination, the
595	office, in addition to the other remedies provided for in this
596	section, may apply to the circuit court or any other court of
597	competent jurisdiction of the county in which the subpoenaed
598	person resides or has its principal place of business for a writ
599	of ne exeat. The court shall thereupon direct the issuance of
600	the writ against the subpoenaed person requiring sufficient bond
601	conditioned on compliance with the subpoena or subpoena duces
602	tecum. The court shall cause to be endorsed on the writ a
603	suitable amount of bond upon the payment of which the person
604	named in the writ shall be freed, having a due regard to the
605	nature of the case.
606	(c)  Alternatively, the office may seek a writ of
607	attachment from the court having jurisdiction over the person
608	who has refused to obey a subpoena, who has refused to give
609	testimony, or who has refused to produce the matters described
610	in the subpoena duces tecum.
611	(6)  The grant or denial of any license under this chapter
612	must be in accordance with s. 120.60.
613	Section 3.  Section 494.00121, Florida Statutes, is created
614	to read:
615	494.00121  Subpoenas.--
616	(1)  The office may:
617	(a)  Issue and serve subpoenas and subpoenas duces tecum to
618	compel the attendance of witnesses and the production of all
619	books, accounts, records, and other documents and materials
620	relevant to an examination or investigation conducted by the
621	office. The office, or its authorized representative, may
622	administer oaths and affirmations to any person.
623	(b)  Seek subpoenas or subpoenas duces tecum from any court
624	to command the appearance of witnesses and the production of
625	books, accounts, records, and other documents or materials at a
626	time and place named in the subpoenas, and an authorized
627	representative of the office may serve such subpoena.
628	(2)  If there is substantial noncompliance with a subpoena
629	or subpoena duces tecum issued by the office, the office may
630	petition the court in the county where the person subpoenaed
631	resides or has his or her principal place of business for an
632	order requiring the person to appear, testify, or produce such
633	books, accounts, records, and other documents as are specified
634	in the subpoena or subpoena duces tecum.
635	(a)  The court may grant injunctive relief restraining the
636	person from advertising, promoting, soliciting, entering into,
637	offering to enter into, continuing, or completing a mortgage
638	loan or servicing a mortgage loan.
639	(b)  The court may grant such other relief, including, but
640	not limited to, the restraint, by injunction or appointment of a
641	receiver, of any transfer, pledge, assignment, or other
642	disposition of the person's assets or any concealment,
643	alteration, destruction, or other disposition of books,
644	accounts, records, or other documents and materials as the court
645	deems appropriate, until the person has fully complied with the
646	subpoena duces tecum and the office has completed its
647	investigation or examination.
648	(c)  The court may order the refund of any fees collected
649	in a mortgage loan transaction if books and documents
650	substantiating the transaction are not produced or cannot be
651	produced.
652	(d)  If it appears to the office that compliance with a
653	subpoena or subpoena duces tecum issued is essential and
654	otherwise unavailable to an investigation or examination, the
655	office may apply to the court for a writ of ne exeat pursuant to
656	s. 68.02.
657	(e)  The office may seek a writ of attachment to obtain all
658	books, accounts, records, and other documents and materials
659	relevant to an examination or investigation.
660	(3)  The office is entitled to the summary procedure
661	provided in s. 51.011, and the court shall advance such cause on
662	its calendar. Attorney's fees and any other costs incurred by
663	the office to obtain an order granting, in whole or in part, a
664	petition for enforcement of a subpoena or subpoena duces tecum
665	shall be taxed against the subpoenaed person, and failure to
666	comply with such order is a contempt of court.
667	Section 4.  Section 494.0014, Florida Statutes, is amended
668	to read:
669	494.0014  Cease and desist orders; administrative fines;
670	refund orders.--
671	(1)  The office may has the power to issue and serve upon
672	any person an order to cease and desist and to take corrective
673	action if whenever it has reason to believe the person is
674	violating, has violated, or is about to violate any provision of
675	ss. 494.001-494.0077, any rule or order issued under ss.
676	494.001-494.0077, or any written agreement between the person
677	and the office. All procedural matters relating to issuance and
678	enforcement of such a cease and desist order are governed by the
679	Administrative Procedure Act.
680	(2)  The office may has the power to order the refund of
681	any fee directly or indirectly assessed and charged on a
682	mortgage loan transaction which is unauthorized or exceeds the
683	maximum fee specifically authorized in ss. 494.001-494.0077, or
684	any amount collected for the payment of third-party fees which
685	exceeds the cost of the service provided.
686	(3)  The office may prohibit the association by a mortgage
687	broker business, or the employment by a mortgage lender or
688	correspondent mortgage lender, of any person who has engaged in
689	a pattern of misconduct while an associate of a mortgage
690	brokerage business or an employee of a mortgage lender or
691	correspondent mortgage lender. For the purpose of this
692	subsection, the term "pattern of misconduct" means the
693	commission of three or more violations of ss. 494.001-494.0077
694	or the provisions of chapter 494 in effect prior to October 1,
695	1991, during any 1-year period or any criminal conviction for
696	violating ss. 494.001-494.0077 or the provisions of chapter 494
697	in effect prior to October 1, 1991.
698	(4)  The office may impose upon any person who makes or
699	brokers a loan, or any mortgage business school, a fine for
700	violations of any provision of ss. 494.001-494.00295 or any rule
701	or order issued under ss. 494.001-494.00295 in an amount not
702	exceeding $5,000 for each separate count or offense.
703	Section 5.  Section 494.00165, Florida Statutes, is amended
704	to read:
705	494.00165  Prohibited advertising; record requirements.--
706	(1)  It is a violation of this chapter for any person to:
707	(a)  Advertise that an applicant shall will have
708	unqualified access to credit without disclosing the what
709	material limitations on the availability of such credit exist.
710	Such Material limitations include, but are not limited to, the
711	percentage of down payment required, that a higher rate or
712	points could be required, or that restrictions on as to the
713	maximum principal amount of the loan offered could apply.
714	(b)  Advertise a mortgage loan at an expressed interest
715	rate unless the advertisement specifically states that the
716	expressed rate could change or not be available at commitment or
717	closing.
718	(c)  Advertise mortgage loans, including rates, margins,
719	discounts, points, fees, commissions, or other material
720	information, including material limitations on such loans,
721	unless the such person is able to make such mortgage loans
722	available to a reasonable number of qualified applicants.
723	(d)  Falsely advertise or misuse names indicating a federal
724	agency pursuant to 18 U.S.C. s. 709.
725	(e)  Engage in unfair, deceptive, or misleading advertising
726	regarding mortgage loans, brokering services, or lending
727	services.
728	(2)  Each person required to be licensed under this chapter
729	must shall maintain a record of samples of each of its
730	advertisements, including commercial scripts of each radio or
731	television broadcast, for examination by the office for a period
732	of 2 years after the date of publication or broadcast.
733	Section 6.  Section 494.0017, Florida Statutes, is
734	repealed.
735	Section 7.  Effective October 1, 2010, section 494.00172,
736	Florida Statutes, is created to read:
737	494.00172  Mortgage Guaranty Trust Fund; payment of fees
738	and claims.--A nonrefundable fee is imposed on each application
739	for a mortgage broker, mortgage lender, or loan originator
740	license and on each annual application for a renewal of such
741	license. For a loan originator, the initial and renewal fee is
742	$20. For mortgage brokers and lenders, the initial and renewal
743	fee is $100. This fee is in addition to the regular application
744	or renewal fee assessed and shall be deposited into the Mortgage
745	Guaranty Trust Fund of the office for the payment of claims in
746	accordance with this section.
747	(1)  If the amount in the trust fund exceeds $5 million,
748	the additional fee shall be discontinued and may not be
749	reimposed until the fund is reduced to below $1 million pursuant
750	to disbursements made in accordance with this section.
751	(2)  A borrower in a mortgage loan transaction is eligible
752	to seek recovery from the trust fund if all of the following
753	conditions are met:
754	(a)  The borrower has recorded a final judgment issued by a
755	state court wherein the cause of action against a licensee under
756	this chapter was based on a violation of this chapter and the
757	damages were the result of that violation.
758	(b)  The borrower has caused a writ of execution to be
759	issued upon such judgment, and the officer executing the
760	judgment has made a return showing that no personal or real
761	property of the judgment debtor liable to be levied upon in
762	satisfaction of the judgment can be found or that the amount
763	realized on the sale of the judgment debtor's property pursuant
764	to such execution is insufficient to satisfy the judgment.
765	(c)  The borrower has made all reasonable searches and
766	inquiries to ascertain whether the judgment debtor possesses
767	real or personal property or other assets subject to being sold
768	or applied in satisfaction of the judgment, and has discovered
769	no such property or assets; or he or she has discovered property
770	and assets and has taken all necessary action and proceedings
771	for the application thereof to the judgment, but the amount
772	realized is insufficient to satisfy the judgment.
773	(d)  The borrower has applied any amounts recovered from
774	the judgment debtor, or from any other source, to the damages
775	awarded by the court.
776	(e)  The borrower, at the time the action was instituted,
777	gave notice and provided a copy of the complaint to the office
778	by certified mail. The requirement of a timely giving of notice
779	may be waived by the office upon a showing of good cause.
780	(f)  The act for which recovery is sought occurred on or
781	after January 1, 2011.
782	(3)  The requirements of subsection (2) are not applicable
783	if the licensee upon which the claim is sought has filed for
784	bankruptcy or has been adjudicated bankrupt. However, the
785	claimant must file a proof of claim in the bankruptcy
786	proceedings and must notify the office by certified mail of the
787	claim by enclosing a copy of the proof of claim and all
788	supporting documents.
789	(4)  Any person who meets all of the conditions in
790	subsection (2) may apply to the office for payment from the
791	trust fund equal to the unsatisfied portion of that person's
792	judgment or $50,000, whichever is less, but only to the extent
793	that the amount reflected in the judgment is for actual or
794	compensatory damages, plus attorney's fees and costs awarded by
795	the trial court which have been determined by the court and the
796	documented costs associated with attempting to collect the
797	judgment. Actual or compensatory damages may not include
798	postjudgment interest. Attorney's fees may not exceed $5,000 or
799	20 percent of the actual or compensatory damages, whichever is
800	less. If actual or compensatory damages, plus attorney's fees
801	and costs, exceed $50,000, actual or compensatory damages must
802	be paid first. The cumulative payment for actual or compensatory
803	damages, plus attorney's fees and costs, may not exceed $50,000
804	as described in this section.
805	(a)  A borrower may not collect more than $50,000 from the
806	trust fund for any claim regardless of the number of licensees
807	liable for the borrower's damages.
808	(b)  Payments for claims are limited in the aggregate to
809	$250,000 against any one licensee under this chapter. If the
810	total claims exceed the aggregate limit of $250,000, the office
811	shall prorate payments based on the ratio that a claim bears to
812	the total claims filed.
813	(c)  Payments shall be made to all persons meeting the
814	requirements of subsection (2) 2 years after the date the first
815	complete and valid notice is received by the office. Persons who
816	give notice after 2 years and who otherwise comply with the
817	conditions precedent to recovery may recover from any remaining
818	portion of the $250,000 aggregate as provided in this
819	subsection, with claims being paid in the order notice was
820	received until the $250,000 aggregate has been disbursed.
821	(d)  The claimant shall assign his right, title, and
822	interest in the judgment, to the extent of his recovery from the
823	fund, to the office and shall record, at his own expense, the
824	assignment of judgment in every county where the judgment is
825	recorded.
826	(e)  If the money in the fund is insufficient to satisfy
827	any valid claim or portion thereof, the office shall satisfy
828	such unpaid claim or portion as soon as a sufficient amount of
829	money has been deposited in the trust fund. If there is more
830	than one unsatisfied claim outstanding, such claims shall be
831	paid in the order in which the claims were filed with the
832	office.
833	(f)  The payment of any amount from the fund in settlement
834	of a claim or in satisfaction of a judgment against a licensee
835	constitutes prima facie grounds for the revocation of the
836	license.
837	Section 8.  Section 494.0018, Florida Statutes, is amended
838	to read:
839	494.0018  Penalties.--
840	(1)  Whoever knowingly violates any provision of s.
841	494.00255(1)(a), (b), or (c) s. 494.0041(2)(e), (f), or (g); s.
842	494.0072(2)(e), (f), or (g); or s. 494.0025(1), (2), (3), (4),
843	or (5), except as provided in subsection (2) of this section,
844	commits is guilty of a felony of the third degree, punishable as
845	provided in s. 775.082, s. 775.083, or s. 775.084. Each such
846	violation constitutes a separate offense.
847	(2)  Any person convicted of a violation of any provision
848	of ss. 494.001-494.0077, in which violation the total value of
849	money and property unlawfully obtained exceeds exceeded $50,000
850	and there were five or more victims, commits is guilty of a
851	felony of the first degree, punishable as provided in s.
852	775.082, s. 775.083, or s. 775.084.
853	Section 9.  Section 494.0019, Florida Statutes, is amended
854	to read:
855	494.0019  Liability in case of unlawful transaction.--
856	(1)  If a mortgage loan transaction is made in violation of
857	any provision of ss. 494.001-494.0077, the person making the
858	transaction and every licensee, director, or officer who
859	participated in making the transaction are jointly and severally
860	liable to every party to the transaction in an action for
861	damages incurred by the party or parties.
862	(2)  A person is not liable under this section upon a
863	showing that such person's licensees, officers, and directors
864	who participated in making the mortgage loan transaction, if
865	any, acted in good faith and without knowledge and, with the
866	exercise of due diligence, could not have known of the act
867	committed in violation of ss. 494.001-494.0077.
868	Section 10.  Section 494.002, Florida Statutes, is amended
869	to read:
870	494.002  Statutory or common-law remedies.--Sections
871	Nothing in ss. 494.001-494.0077 do not limit limits any
872	statutory or common-law right of any person to bring any action
873	in any court for any act involved in the mortgage loan business
874	or the right of the state to punish any person for any violation
875	of any law.
876	Section 11.  Section 494.0023, Florida Statutes, is amended
877	to read:
878	494.0023  Conflicting interest.--
879	(1)  If, in a mortgage transaction, a licensee has a
880	conflicting interest as specified in subsection (2), the
881	licensee shall, at a minimum, provide the following disclosures
882	to the borrower in writing:
883	(a)  The nature of the relationship, ownership, or
884	financial interest between the provider of products or services,
885	or business incident thereto, and the licensee making the
886	referral; The type of conflicting interest shall be fully and
887	fairly disclosed.
888	(b)  An estimated charge or range of charges generally made
889	by such a provider; The licensee shall inform the borrower in
890	writing
891	(c)  That a financial benefit may be received by the
892	licensee as a result of the conflicting interest; and.
893	(d)(c)  The borrower shall be informed That alternative
894	sources may be chosen by the borrower to provide the any
895	required products or services. The following language must be
896	contained in 12-point type in any agreement between a mortgage
897	broker, mortgage lender, or correspondent mortgage lender and a
898	borrower in substantially this form:
899
900	You are not required to purchase additional products or services
901	from any person or entity suggested or recommended by
902	(Broker/Lender/Correspondent Lender). However, the
903	(Broker/Lender/Correspondent Lender) hereby reserves the right
904	to approve the entity selected by the borrower, which approval
905	may not be unreasonably withheld.
906	(2)  A licensee has a conflicting interest if:
907	(a)  The licensee or the licensee's relative provides the
908	borrower with additional products or services;
909	(b)  The licensee or licensee's relative, either directly
910	or indirectly, owns, controls, or holds with power to vote, or
911	holds proxies representing, 1 10 percent or more of any class of
912	equity securities or other beneficial interest in the such
913	person providing the additional products or services;
914	(c)  The person providing the additional products or
915	services, either directly or indirectly, owns, controls, or
916	holds the power to vote, or holds proxies representing, 1 10
917	percent or more of any class of equity securities or other
918	beneficial interest in the licensee;
919	(d)  A holding company, either directly or indirectly,
920	owns, controls, or holds with power to vote, or holds proxies
921	representing, 1 10 percent or more of any class of equity
922	securities or other beneficial interest in both the licensee and
923	the person providing the additional products or services;
924	(e)  One or more persons, or such person's relative, sits
925	as an officer or director, or performs similar functions as an
926	officer or director, for both the licensee and the person
927	providing the additional products or services; or
928	(f)  The licensee or the licensee's relative sits as an
929	officer or director, or performs similar functions as an officer
930	or director, of the person providing the additional products or
931	services.
932	(3)  The commission may adopt rules to administer the
933	disclosure requirements of this section. The rules must consider
934	the disclosure requirements of the federal Real Estate
935	Settlement Procedures Act, 12 U.S.C. ss. 2601 et seq.; the
936	federal Truth in Lending Act, 15 U.S.C. et seq.; and related
937	federal regulations.
938	(3)  As used in this section, the term "relative" of any
939	natural person means any of the following persons, whether by
940	the full or half blood or by adoption:
941	(a)  Such person's spouse, father, mother, children,
942	brothers, and sisters.
943	(b)  The father, mother, brothers, and sisters of such
944	person's spouse.
945	(c)  The spouses of children, brothers, or sisters of such
946	person.
947	Section 12.  Section 494.0025, Florida Statutes, is amended
948	to read:
949	494.0025  Prohibited practices.--It is unlawful for any
950	person:
951	(1)  To act as a mortgage lender in this state without a
952	current, active license issued by the office pursuant to ss.
953	494.006-494.0077.
954	(1)(2)  To act as a loan originator correspondent mortgage
955	lender in this state without a current, active license issued by
956	the office pursuant to part II of this chapter ss. 494.006-
957	494.0077.
958	(2)(3)  To act as a mortgage broker in this state without a
959	current, active license issued by the office pursuant to part II
960	of this chapter ss. 494.003-494.0043.
961	(3)  To act as a mortgage lender in this state without a
962	current, active license issued by the office pursuant to part
963	III of this chapter.
964	(4)  In any practice or transaction or course of business
965	relating to the sale, purchase, negotiation, promotion,
966	advertisement, or hypothecation of mortgage loan transactions,
967	directly or indirectly:
968	(a)  To knowingly or willingly employ any device, scheme,
969	or artifice to defraud;
970	(b)  To engage in any transaction, practice, or course of
971	business which operates as a fraud upon any person in connection
972	with the purchase or sale of any mortgage loan; or
973	(c)  To obtain property by fraud, willful misrepresentation
974	of a future act, or false promise.
975	(5)  In any matter within the jurisdiction of the office,
976	to knowingly and willfully falsify, conceal, or cover up by a
977	trick, scheme, or device a material fact, make any false or
978	fraudulent statement or representation, or make or use any false
979	writing or document, knowing the same to contain any false or
980	fraudulent statement or entry.
981	(6)  To violate s. 655.922(2), subject to ss. 494.001-
982	494.0077.
983	(7)  Who is required to be licensed under ss. 494.006-
984	494.0077, to fail to report to the office the failure to meet
985	the net worth requirements of s. 494.0061, s. 494.0062, or s.
986	494.0065 within 48 hours after the person's knowledge of such
987	failure or within 48 hours after the person should have known of
988	such failure.
989	(7)(8)  To pay a fee or commission in any mortgage loan
990	transaction to any person or entity other than a licensed
991	mortgage broker brokerage business, mortgage lender, or
992	correspondent mortgage lender, operating under an active
993	license, or a person exempt from licensure under this chapter.
994	(8)(9)  To record a mortgage broker brokerage agreement or
995	any other document, not rendered by a court of competent
996	jurisdiction, which purports to enforce the terms of the
997	mortgage brokerage agreement.
998	(9)(10)  To use the name or logo of a financial
999	institution, as defined in s. 655.005(1), or its affiliates or
1000	subsidiaries when marketing or soliciting existing or
1001	prospective customers if such marketing materials are used
1002	without the written consent of the financial institution and in
1003	a manner that would lead a reasonable person to believe that the
1004	material or solicitation originated from, was endorsed by, or is
1005	related to or the responsibility of the financial institution or
1006	its affiliates or subsidiaries.
1007	(10)  Subject to investigation or examination under this
1008	chapter, to knowingly alter, withhold, conceal, or destroy any
1009	books, records, computer records, or other information relating
1010	to a person's activities which subject the person to the
1011	jurisdiction of this chapter.
1012	Section 13.  Section 494.00255, Florida Statutes, is
1013	created to read:
1014	494.00255   Administrative penalties and fines; license
1015	violations.--
1016	(1)  Each of the following acts constitutes a ground for
1017	which the disciplinary actions specified in subsection (2) may
1018	be taken against a person licensed or required to be licensed
1019	under part II or part III of chapter:
1020	(a)  Failure to immediately place upon receipt, and
1021	maintain until authorized to disburse, any money entrusted to
1022	the licensee as a licensee in a segregated account of a
1023	federally insured financial institution in this state.
1024	(b)  Failure to account or deliver to any person any
1025	property that is not the licensee's, or that the licensee is not
1026	entitled to retain, under the circumstances and at the time that
1027	has been agreed upon or as required by law or, in the absence of
1028	a fixed time, upon demand of the person entitled to such
1029	accounting and delivery.
1030	(c)  Failure to disburse funds in accordance with
1031	agreements.
1032	(d)  Any misuse, misapplication, or misappropriation of
1033	personal property entrusted to the licensee's care to which the
1034	licensee had no current property right at the time of
1035	entrustment.
1036	(e)  Fraud, misrepresentation, deceit, negligence, or
1037	incompetence in any mortgage financing transaction.
1038	(f)  Requesting a specific valuation, orally or in writing,
1039	from an appraiser for a particular property, implying to an
1040	appraiser that a specific valuation is needed for a particular
1041	property, or in any manner conditioning the order for an
1042	appraisal on the appraisal meeting a specific valuation. The
1043	numeric value of the specific valuation sought need not be
1044	stated, but rather the mere statement that a specific valuation
1045	is sought, violates this section.
1046	(g)  Consistently and materially underestimating maximum
1047	closing costs.
1048	(h)  Disbursement, or an act which has caused or will cause
1049	disbursement, to any person in any amount from the Mortgage
1050	Guaranty Trust Fund, the Securities Guaranty Fund, or the
1051	Florida Real Estate Recovery Fund, regardless of any repayment
1052	or restitution to the disbursed fund by the licensee or any
1053	person acting on behalf of the licensee.
1054	(i)  Commission of fraud, misrepresentation, concealment,
1055	or dishonest dealing by trick, scheme, or device; culpable
1056	negligence; breach of trust in any business transaction in any
1057	state, nation, or territory; or aiding, assisting, or conspiring
1058	with any other person engaged in any such misconduct and in
1059	furtherance thereof.
1060	(j)  Being convicted of, or entering a plea of guilty or
1061	nolo contendere to, regardless of adjudication, any felony or
1062	any crime involving fraud, dishonesty, breach of trust, money
1063	laundering, or act of moral turpitude.
1064	(k)  Having a final judgment entered against the licensee
1065	in a civil action upon grounds of fraud, embezzlement,
1066	misrepresentation, or deceit.
1067	(l)  Having been the subject of any:
1068	1.  Decision, finding, injunction, suspension, prohibition,
1069	revocation, denial, judgment, or administrative order by any
1070	court, administrative law judge, state or federal agency,
1071	national securities exchange, national commodities exchange,
1072	national option exchange, national securities association,
1073	national commodities association, or national option association
1074	involving a violation of any federal or state securities or
1075	commodities law or rule or regulation adopted under such law or
1076	involving a violation of any rule or regulation of any national
1077	securities, commodities, or options exchange or association.
1078	2.  Injunction or adverse administrative order by a state
1079	or federal agency regulating banking, insurance, finance or
1080	small loan companies, real estate, mortgage brokers or lenders,
1081	money transmitters, or other related or similar industries.
1082	(m)  In any mortgage transaction, violating any provision
1083	of the federal Real Estate Settlement Procedure Act, as amended,
1084	12 U.S.C. ss. 2601 et seq.; the federal Truth in Lending Act, as
1085	amended, 15 U.S.C. ss. 1601 et seq.; or any regulations adopted
1086	under such acts.
1087	(n)  Having a loan originator, mortgage broker, or mortgage
1088	lender license, or the equivalent thereof, revoked in any
1089	jurisdiction.
1090	(o)  Having a license, or the equivalent, to practice any
1091	profession or occupation revoked, suspended, or otherwise acted
1092	against, including the denial of licensure by a licensing
1093	authority of this state or another state, territory, or country.
1094	(p)  Acting as a loan originator, mortgage broker, or
1095	mortgage lender without a current license issued under part II
1096	or part III of this chapter.
1097	(q)  Operating a mortgage broker or mortgage lender branch
1098	office without a current license issued under part II or part
1099	III of this chapter.
1100	(r)  Conducting any brokering or lending activities in the
1101	absence of a properly designated principal loan originator or
1102	brokering or lending activities at any particular branch office
1103	without a properly designated branch manager.
1104	(s)  A material misstatement or omission of fact on an
1105	initial or renewal license application.
1106	(t)  Payment to the office for a license or permit with a
1107	check or electronic transmission of funds which is dishonored by
1108	the applicant's or licensee's financial institution.
1109	(u)  Failure to comply with, or violations of, any
1110	provision of ss. 494.001-494.0077, or any rule or order made or
1111	issued under ss. 494.001-494.0077.
1112	(v)  Failure to maintain, preserve, and keep available for
1113	examination all books, accounts, or other documents required by
1114	ss. 494.001-494.0077 and the rules of the commission.
1115	(w)  Refusal to permit an investigation or examination of
1116	books and records, or refusal to comply with an office subpoena
1117	or subpoena duces tecum.
1118	(x)  Failure to timely pay any fee, charge, or fine imposed
1119	or assessed pursuant to ss. 494.001-494.0077 or related rules.
1120	(2)  If the office finds a person in violation of any act
1121	specified in this section, it may enter an order imposing one or
1122	more of the following penalties:
1123	(a)  Issuance of a reprimand.
1124	(b)  Suspension of a license or registration, subject to
1125	reinstatement upon satisfying all reasonable conditions imposed
1126	by the office.
1127	(c)  Revocation of a license or registration.
1128	(d)  Denial of a license or registration.
1129	(e)  Imposition of a fine in an amount up to $25,000 for
1130	each count or separate offense.
1131	(f)  An administrative fine of up to $1,000 per day, but
1132	not to exceed $25,000 cumulatively, for each day that
1133	1.  A mortgage broker or mortgage lender conducts business
1134	at an unlicensed branch office.
1135	2.  An unlicensed person acts as a loan originator, a
1136	mortgage broker, or a mortgage lender.
1137	(3)  A mortgage broker or mortgage lender, as applicable,
1138	is subject to the disciplinary actions specified in subsection
1139	(2) for a violation of subsection (1) by:
1140	(a)  A control person of the mortgage broker or mortgage
1141	lender;
1142	(b)  A loan originator employed by or contracting with the
1143	mortgage broker; or
1144	(c)  An associate of the mortgage lender.
1145	(4)  A principal loan originator of a mortgage broker is
1146	subject to the disciplinary actions specified in subsection (2)
1147	for violations of subsection (1) by a loan originator in the
1148	course of an association with the mortgage broker if there is a
1149	pattern of repeated violations by the loan originator or if the
1150	principal loan originator has knowledge of the violations.
1151	(5)  A principal loan originator of a mortgage lender is
1152	subject to the disciplinary actions specified in subsection (2)
1153	for violations of subsection (1) by an associate of a mortgage
1154	lender if there is a pattern of repeated violations by the
1155	associate or if the principal loan originator has knowledge of
1156	the violations.
1157	(6)  A branch manager is subject to the disciplinary
1158	actions specified in subsection (2) for violations of subsection
1159	(1) by a loan originator in the course of an association with
1160	the mortgage broker if there is a pattern of repeated violations
1161	by the loan originator or if the branch manager has knowledge of
1162	the violations.
1163	(7)  A natural person who is associated with a mortgage
1164	broker is subject to the disciplinary actions specified in
1165	subsection  (2) for a violation of subsection (1) with respect
1166	to an action in which such person was involved.
1167	(8)  Pursuant to s. 120.60(6), the office may summarily
1168	suspend the license of a loan originator, mortgage broker, or
1169	mortgage lender if the office has reason to believe that a
1170	licensee poses an immediate, serious danger to the public's
1171	health, safety, or welfare. The arrest of the licensee, or the
1172	mortgage broker or the mortgage lender's control person, for any
1173	felony or any crime involving fraud, dishonesty, breach of
1174	trust, money laundering, or any other act of moral turpitude is
1175	deemed sufficient to constitute an immediate danger to the
1176	public's health, safety, or welfare. Any proceeding for the
1177	summary suspension of a license must be conducted by the
1178	commissioner of the office, or designee, who shall issue the
1179	final summary order.
1180	(9)  The office may deny any request to terminate or
1181	withdraw any license application or license if the office
1182	believes that an act that would be a ground for license denial,
1183	suspension, restriction, or revocation under this chapter has
1184	been committed.
1185	Section 14.  Section 494.0028, Florida Statutes, is amended
1186	to read:
1187	494.0028  Arbitration.--
1188	(1)  This section applies to any mortgage broker brokerage
1189	agreement, servicing agreement, loan application, or purchase
1190	agreement that which provides for arbitration between:
1191	(a)  A noninstitutional investor and a mortgage lender
1192	servicing or correspondent mortgage lender to service a mortgage
1193	loan.
1194	(b)  A borrower and a mortgage broker brokerage business,
1195	mortgage lender, or correspondent mortgage lender to obtain a
1196	mortgage loan.
1197	(c)  A noninstitutional investor and a mortgage broker
1198	brokerage business, mortgage lender, or correspondent mortgage
1199	lender to fund or purchase a mortgage loan.
1200	(2)  All agreements subject to this section must shall
1201	provide that, at the voluntary election of the noninstitutional
1202	investor or borrower, disputes shall be handled by either a
1203	court of competent jurisdiction or by binding arbitration.
1204	(3)  All agreements subject to this section must shall
1205	provide the noninstitutional investor or borrower with the
1206	option to elect arbitration before the American Arbitration
1207	Association or other independent nonindustry arbitration forum.
1208	Any other nonindustry arbitration forum may apply to the office
1209	to allow such forum to provide arbitration services. The office
1210	shall grant the application if the applicant's fees, practices,
1211	and procedures do not materially differ from those of the
1212	American Arbitration Association.
1213	(4)  At the election of the noninstitutional investor or
1214	borrower, venue shall be in the county in which the
1215	noninstitutional investor or borrower entered into the agreement
1216	or at a business location of the mortgage broker or brokerage
1217	business, mortgage lender, or correspondent lender.
1218	(5)  Any fees or charges must be in accordance with shall
1219	be made as provided in the rules of the American Arbitration
1220	Association or other approved nonindustry arbitration forum and
1221	may shall not be set in the agreement.
1222	(6)  Any election made under this section is shall be
1223	irrevocable.
1224	(7)  This section does shall not be construed to require an
1225	agreement that which is subject to this section to contain an
1226	arbitration clause.
1227	Section 15.  Effective October 1, 2010, sections 494.0029
1228	and 494.00295, Florida Statutes, are repealed.
1229	Section 16.  Section 494.00296, Florida Statutes, is
1230	created to read:
1231	494.00296  Loan modification.--
1232	(1)  PROHIBITED ACTS.--When offering or providing loan
1233	modifications services, a loan originator, mortgage broker, or
1234	mortgage lender may not:
1235	(a)  Engage in or initiate loan modification services
1236	without first executing a written agreement for loan
1237	modification services with the borrower;
1238	(b)  Execute a loan modification without the consent of the
1239	borrower after the borrower is made aware of each modified term;
1240	or
1241	(c)  Solicit, charge, receive, or attempt to collect or
1242	secure payment, directly or indirectly, for loan modification
1243	services before completing or performing all services included
1244	in the agreement for loan modification services. A fee may be
1245	charged only if the loan modification results in a material
1246	benefit to the borrower. The commission may adopt rules to
1247	provide guidance on what constitutes a material benefit to the
1248	borrower
1249	(2)  LOAN MODIFICATION AGREEMENT.--
1250	(a)  The written agreement for loan modification services
1251	must be printed in at least 12-point uppercase type and signed
1252	by both parties. The agreement must include the name and address
1253	of the person providing loan modification services, the exact
1254	nature and specific detail of each service to be provided, the
1255	total amount and terms of charges to be paid by the borrower for
1256	the services, and the date of the agreement. The date of the
1257	agreement may not be earlier than the date the borrower signed
1258	the agreement. The mortgage broker or mortgage lender must give
1259	the borrower a copy of the agreement to review at least 1
1260	business day before the borrower is to sign the agreement.
1261	(b)  The borrower has the right to cancel the written
1262	agreement without any penalty or obligation if the borrower
1263	cancels the agreement within 3 business days after signing the
1264	agreement. The right to cancel may not be waived by the borrower
1265	or limited in any manner by the loan originator, mortgage
1266	broker, or mortgage lender. If the borrower cancels the
1267	agreement, any payments to the loan originator, mortgage broker,
1268	or mortgage lender must be returned to the homeowner within 10
1269	business days after receipt of the notice of cancellation.
1270	(c)  An agreement for loan modification services must
1271	contain, immediately above the signature line, a statement in at
1272	least 12-point uppercase type which substantially complies with
1273	the following:
1274	BORROWER'S RIGHT OF CANCELLATION
1275
1276	YOU MAY CANCEL THIS AGREEMENT FOR LOAN MODIFICATION SERVICES
1277	WITHOUT ANY PENALTY OR OBLIGATION WITHIN 3 BUSINESS DAYS AFTER
1278	THE DATE THIS AGREEMENT IS SIGNED BY YOU.
1279	THE LOAN ORIGINATOR, MORTGAGE BROKER, OR MORTGAGE LENDER IS
1280	PROHIBITED BY LAW FROM ACCEPTING ANY MONEY, PROPERTY, OR OTHER
1281	FORM OF PAYMENT FROM YOU UNTIL ALL PROMISED SERVICES HAVE BEEN
1282	COMPLETED. IF FOR ANY REASON YOU HAVE PAID THE CONSULTANT BEFORE
1283	CANCELLATION, YOUR PAYMENT MUST BE RETURNED TO YOU WITHIN 10
1284	BUSINESS DAYS AFTER THE CONSULTANT RECEIVES YOUR CANCELLATION
1285	NOTICE.
1286	TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A STATEMENT
1287	THAT YOU ARE CANCELING THE AGREEMENT SHOULD BE MAILED
1288	(POSTMARKED) OR DELIVERED TO ...(NAME)... AT ...(ADDRESS)... NO
1289	LATER THAN MIDNIGHT OF ...(DATE)....
1290	IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR MORTGAGE
1291	LENDER OR MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT. YOUR
1292	LENDER OR SERVICER MAY BE WILLING TO NEGOTIATE A PAYMENT PLAN OR
1293	A RESTRUCTURING WITH YOU FREE OF CHARGE.
1294
1295	(d)  The inclusion of the statement does not prohibit a
1296	loan originator, mortgage broker, or mortgage lender from giving
1297	the homeowner more time to cancel the agreement than is set
1298	forth in the statement if all other requirements of this
1299	subsection are met.
1300	(e)  The person offering or providing the loan modification
1301	services must give the borrower a copy of the signed agreement
1302	within 3 hours after the borrower signs the agreement.
1303	(3)  REMEDIES.--
1304	(a)  Without regard to any other remedy or relief to which
1305	a person is entitled, anyone aggrieved by a violation of this
1306	section may bring an action to obtain a declaratory judgment
1307	that an act or practice violates this section and to enjoin a
1308	person who has violated, is violating, or is otherwise likely to
1309	violate this section.
1310	(b)  In any action brought by a person who has suffered a
1311	loss as a result of a violation of this section, such person may
1312	recover actual damages, plus attorney's fees and court costs, as
1313	follows:
1314	1.  In any action brought under this section, upon motion
1315	of the party against whom such action is filed alleging that the
1316	action is frivolous, without legal or factual merit, or brought
1317	for the purpose of harassment, the court may, after hearing
1318	evidence as to the necessity therefore, require the party
1319	instituting the action to post a bond in the amount that the
1320	court finds reasonable to indemnify the defendant for any
1321	damages incurred, including reasonable attorney's fees.
1322	2.  In any civil litigation resulting from an act or
1323	practice involving a violation of this section, the prevailing
1324	party, after judgment in the trial court and exhaustion of all
1325	appeals, if any, may receive reasonable attorney's fees and
1326	costs from the nonprevailing party.
1327	3.  The attorney for the prevailing party shall submit a
1328	sworn affidavit of time spent on the case and costs incurred for
1329	all the motions, hearings, and appeals to the trial judge who
1330	presided over the civil case.
1331	4.  The trial judge may award the prevailing party the sum
1332	of reasonable costs incurred in the action plus a reasonable
1333	legal fee for the hours actually spent on the case as sworn to
1334	in an affidavit.
1335	5.  Any award of attorney's fees or costs become part of
1336	the judgment and subject to execution as the law allows.
1337	(c)  The provisions of this subsection do not apply to any
1338	action initiated by the enforcing authority.
1339	Section 17.  The Division of Statutory Revision is
1340	requested to rename part II of chapter 494, Florida Statutes,
1341	consisting of ss. 494.003-491.0043, Florida Statutes, as "Loan
1342	Originators and Mortgage Brokers."
1343	Section 18.  Section 494.003, Florida Statutes, is amended
1344	to read:
1345	494.003  Exemptions.--
1346	(1)  None of The following persons are not is subject to
1347	the requirements of this part ss. 494.003-494.0043:
1348	(a)  Any person operating exclusively as a registered loan
1349	originator in accordance with the S.A.F.E. Mortgage Licensing
1350	Act of 2008 licensed under ss. 494.006-494.0077, except as
1351	provided in s. 494.0073.
1352	(b)  A depository institution; subsidiaries that are owned
1353	and controlled by a depository institution and regulated by the
1354	Board of Governors of the Federal Reserve System, the
1355	Comptroller of the Currency, the Director of the Office of
1356	Thrift Supervision, the National Credit Union Administration, or
1357	the Federal Deposit Insurance Corporation; or institutions
1358	regulated by the Farm Credit Administration state or federal
1359	chartered bank, trust company, savings and loan association,
1360	savings bank or credit union, bank holding company regulated
1361	under the laws of any state or the United States, or consumer
1362	finance company licensed pursuant to chapter 516.
1363	(c)  A wholly owned bank holding company subsidiary or a
1364	wholly owned savings and loan association holding company
1365	subsidiary formed and regulated under the laws of any state or
1366	the United States that is approved or certified by the
1367	Department of Housing and Urban Development, the Veterans
1368	Administration, the Government National Mortgage Association,
1369	the Federal National Mortgage Association, or the Federal Home
1370	Loan Mortgage Corporation.
1371	(c)(d)  The Federal National Mortgage Association;, the
1372	Federal Home Loan Mortgage Corporation; any agency of the
1373	Federal Government; any state, county, or municipal government;
1374	or any quasi-governmental agency that acts in such capacity
1375	under the specific authority of the laws of any state or the
1376	United States.
1377	(d)  A licensed attorney who negotiates the terms of a
1378	mortgage loan on behalf of a client as an ancillary matter to
1379	the attorney's representation of the client, unless the attorney
1380	is compensated by a mortgage lender, a mortgage broker, or a
1381	loan originator or by the agent of such lender, broker, or
1382	originator.
1383	(e)  Any person licensed to practice law in this state, not
1384	actively and principally engaged in the business of negotiating
1385	loans secured by real property, when such person renders
1386	services in the course of her or his practice as an attorney at
1387	law.
1388	(2)  None of the following persons is required to be
1389	licensed under ss. 494.003-494.0043:
1390	(a)  An insurance company duly licensed in this state when
1391	dealing with its clients in the normal course of its insurance
1392	business.
1393	(b)  A federally licensed small business investment
1394	company.
1395	(c)  A securities dealer registered under the provisions of
1396	s. 517.12, when dealing with its corporate or individual clients
1397	in the normal course of its securities business.
1398	(d)  Any person acting in a fiduciary capacity conferred by
1399	authority of any court.
1400	(e)  A wholly owned subsidiary of a state or federal
1401	chartered bank or savings and loan association the sole activity
1402	of which is to distribute the lending programs of such state or
1403	federal chartered bank or savings and loan association to
1404	persons who arrange loans for, or make loans to, borrowers.
1405	(2)(3)  It is not necessary to negate any of the exemptions
1406	provided in this section in any complaint, information,
1407	indictment, or other writ or proceeding brought under ss.
1408	494.001-494.0077. The burden of establishing the right to an any
1409	such exemption is upon the party claiming the benefit of the
1410	exemption.
1411	Section 19.  Effective October 1, 2010, section 494.0031,
1412	Florida Statutes, is repealed.
1413	Section 20.  Effective October 1, 2010, section 494.00312,
1414	Florida Statutes, is created to read:
1415	494.00312  Loan originator license.--
1416	(1)  An individual who acts as a loan originator must be
1417	licensed under this section.
1418	(2)  In order to apply for loan originator license, an
1419	applicant must:
1420	(a)  Be at least 18 years of age and have a high school
1421	diploma or its equivalent.
1422	(b)  Complete a 20-hour prelicensing class approved by the
1423	registry.
1424	(c)  Pass a written test developed by the registry and
1425	administered by a provider approved by the registry.
1426	(d)  Submit a completed license application form as
1427	prescribed by commission rule.
1428	(e)  Submit a nonrefundable application fee of $195, and
1429	the $20 nonrefundable fee if required by s. 494.00172.
1430	Application fees may not be prorated for partial years of
1431	licensure.
1432	(f)  Submit fingerprints in accordance with rules adopted
1433	by the commission:
1434	1.  The fingerprints may be submitted to the registry, the
1435	office, or a vendor acting on behalf of the registry or the
1436	office.
1437	2.  The office may contract with a third-party vendor to
1438	provide live-scan fingerprinting in lieu of a paper fingerprint
1439	card.
1440	3.  A state criminal history background check must be
1441	conducted through the Department of Law Enforcement and a
1442	federal criminal history background check must be conducted
1443	through the Federal Bureau of Investigation.
1444	4.  All fingerprints submitted to the Department of Law
1445	Enforcement must be submitted electronically and entered into
1446	the statewide automated fingerprint identification system
1447	established in s. 943.05(2)(b) and available for use in
1448	accordance with s. 943.05(2)(g) and (h). The office shall pay an
1449	annual fee to the department to participate in the system and
1450	inform the department of any person whose fingerprints are no
1451	longer required to be retained.
1452	5.  The costs of fingerprint processing, including the cost
1453	of retaining the fingerprints, shall be borne by the person
1454	subject to the background check.
1455	6.  The office is responsible for reviewing the results of
1456	the state and federal criminal history checks and determining
1457	whether the applicant meets licensure requirements.
1458	(g)  Authorize the registry to obtain an independent credit
1459	report on the applicant from a consumer reporting agency, and
1460	transmit or provide access to the report to the office. The cost
1461	of the credit report shall be borne by the applicant.
1462	(h)  Submit additional information or documentation
1463	requested by the office and required by rule concerning the
1464	applicant. Additional information may include documentation of
1465	pending and prior disciplinary and criminal history events,
1466	including arrest reports and certified copies of charging
1467	documents, plea agreements, judgments and sentencing documents,
1468	documents relating to pretrial intervention, orders terminating
1469	probation or supervised release, final administrative agency
1470	orders, or other comparable documents that may provide the
1471	office with the appropriate information to determine eligibility
1472	for licensure.
1473	(i)  Submit any other information required by the registry
1474	for the processing of the application.
1475	(3)  An application is considered received for the purposes
1476	of s. 120.60 upon the office's receipt of all documentation from
1477	the registry, including the completed application form,
1478	documentation of completion of the prelicensure class, test
1479	results, criminal history information, and independent credit
1480	report, as well as the license application fee, the fee required
1481	by s. 494.00172, and all applicable fingerprinting processing
1482	fees.
1483	(4)  The office shall issue a loan originator license to
1484	each person who is not otherwise ineligible and who meets the
1485	requirements of this section. However, it is a ground for denial
1486	of licensure if the applicant:
1487	(a)  Has committed any violation specified in ss. 494.001-
1488	494.0077, or is the subject of a pending felony criminal
1489	prosecution or a prosecution or an administrative enforcement
1490	action, in any jurisdiction, which involves fraud, dishonesty,
1491	breach of trust, money laundering, or any other act of moral
1492	turpitude.
1493	(b)  Demonstrates a lack of financial responsibility,
1494	character, and general fitness which would fail to command the
1495	confidence of the community and to warrant a determination that
1496	the loan originator will operate honestly, fairly, and
1497	efficiently. The office may not base a license denial, in whole
1498	or in part, on an applicant's credit score or use a credit
1499	report as the sole basis for license denial. If an applicant's
1500	credit report is determined by the office to be a factor that
1501	would contribute to the denial of a license, the office shall
1502	notify the applicant of the specific concern relating to the
1503	applicant's credit report and provide the applicant with an
1504	opportunity to provide a written explanation and other
1505	mitigating information in response to the credit report. For
1506	purposes of this paragraph, a person has shown that he or she is
1507	not financially responsible if he or she has shown a disregard
1508	in the management of his or her own financial condition, which
1509	may include, but is not limited to:
1510	1.  Current outstanding judgments, except judgments
1511	resulting solely from medical expenses;
1512	2.  Current outstanding federal tax liens; or
1513	3.  A pattern of seriously delinquent accounts within the
1514	past 7 years that would exhibit an obvious disregard for the
1515	repayment of outstanding obligations.
1516	(5)  The office may not issue a license to an applicant who
1517	has had a loan originator license or its equivalent revoked in
1518	any jurisdiction.
1519	(6)  A loan originator license may be withdrawn pursuant to
1520	s. 120.60 if it was issued through mistake or inadvertence of
1521	the office. A license must be reinstated if the applicant
1522	demonstrates that the requirements for obtaining the license
1523	under this chapter have been satisfied.
1524	(7)  All loan originator licenses must be renewed annually
1525	by December 31 pursuant to s. 494.00313. If a person holding a
1526	loan originator license has not applied to renew the license on
1527	or before December 31, the loan originator license expires on
1528	December 31. If a person holding an active loan originator
1529	license has applied to renew the license on or before December
1530	31, the loan originator license remains active until the renewal
1531	application is approved or denied. A loan originator is not
1532	precluded from reapplying for licensure upon expiration of a
1533	previous license.
1534	Section 21.  Effective October 1, 2010, section 494.00313,
1535	Florida Statutes, is created to read:
1536	494.00313  Loan originator license renewal.--
1537	(1)  In order to renew a loan originator license, a loan
1538	originator must:
1539	(a)  Submit a completed license renewal form as prescribed
1540	by commission rule.
1541	(b)  Submit a nonrefundable renewal fee of $150, and the
1542	$20 nonrefundable fee if required by s. 494.00172.
1543	(c)  Provide documentation of completion of at least 8
1544	hours of continuing education in courses reviewed and approved
1545	by the registry.
1546	(d)  Authorize the registry to obtain an independent credit
1547	report on the applicant from a consumer reporting agency, and
1548	transmit or provide access to the report to the office. The cost
1549	of the credit report shall be borne by the applicant.
1550	(e)  Submit any additional information or documentation
1551	requested by the office and required by rule concerning the
1552	licensee. Additional information may include documentation of
1553	pending and prior disciplinary and criminal history events,
1554	including arrest reports and certified copies of charging
1555	documents, plea agreements, judgments and sentencing documents,
1556	documents relating to pretrial intervention, orders terminating
1557	probation or supervised release, final administrative agency
1558	orders, or other comparable documents that may provide the
1559	office with the appropriate information to determine eligibility
1560	for licensure.
1561	(2)  The office may not renew a loan originator license
1562	unless the loan originator continues to meet the minimum
1563	standards for initial license issuance pursuant to s. 494.00312
1564	and adopted rule.
1565	Section 22.  Effective October 1, 2010, section 494.0032,
1566	Florida Statutes, is repealed.
1567	Section 23.  Effective October 1, 2010, section 494.00321,
1568	Florida Statutes, is created to read:
1569	494.00321  Mortgage broker license.--
1570	(1)  Each person who acts as a mortgage broker must be
1571	licensed in accordance with this section.
1572	(2)  In order to apply for a mortgage broker license the
1573	applicant must:
1574	(a)  Submit a completed license application form as
1575	prescribed by commission rule.
1576	(b)  Designate a qualified principal loan originator on the
1577	application form who meets the requirements of s. 494.0035.
1578	(c)  Submit a nonrefundable application fee of $425, and
1579	the $100 nonrefundable fee if required by s. 494.00172.
1580	Application fees may not be prorated for partial years of
1581	licensure.
1582	(d)  Submit fingerprints for each of the applicant's
1583	control persons in accordance with rules adopted by the
1584	commission:
1585	1.  The fingerprints may be submitted to the registry, the
1586	office, or a vendor acting on behalf of the registry or the
1587	office.
1588	2.  The office may contract with a third-party vendor to
1589	provide live-scan fingerprinting in lieu of a paper fingerprint
1590	card.
1591	3.  A state criminal history background check must be
1592	conducted through the Department of Law Enforcement and a
1593	federal criminal history background check must be conducted
1594	through the Federal Bureau of Investigation.
1595	4.  All fingerprints submitted to the Department of Law
1596	Enforcement must be submitted electronically and entered into
1597	the statewide automated fingerprint identification system
1598	established in s. 943.05(2)(b) and available for use in
1599	accordance with s. 943.05(2)(g) and (h). The office shall pay an
1600	annual fee to the department to participate in the system and
1601	inform the department of any person whose fingerprints are no
1602	longer required to be retained.
1603	5.  The costs of fingerprint processing, including the cost
1604	of retaining the fingerprints, shall be borne by the person
1605	subject to the background check.
1606	6.  The office is responsible for reviewing the results of
1607	the state and federal criminal history checks and determining
1608	whether the applicant meets licensure requirements.
1609	(e)  Authorize the registry to obtain an independent credit
1610	report on each of the applicant's control persons from a
1611	consumer reporting agency, and transmit or provide access to the
1612	report to the office. The cost of the credit report shall be
1613	borne by the applicant.
1614	(f)  Submit additional information or documentation
1615	requested by the office and required by rule concerning the
1616	applicant or a control person of the applicant. Additional
1617	information may include documentation of pending and prior
1618	disciplinary and criminal history events, including arrest
1619	reports and certified copies of charging documents, plea
1620	agreements, judgments and sentencing documents, documents
1621	relating to pretrial intervention, orders terminating probation
1622	or supervised release, final administrative agency orders, or
1623	other comparable documents that may provide the office with the
1624	appropriate information to determine eligibility for licensure.
1625	(g)  Submit any other information required by the registry
1626	for the processing of the application.
1627	(3)  An application is considered received for the purposes
1628	of s. 120.60 upon the office's receipt of all documentation from
1629	the registry, including the completed application form, criminal
1630	history information, and independent credit report, as well as
1631	the licensed application fee, the fee required by s. 492.00172,
1632	and all applicable fingerprinting processing fees.
1633	(4)  The office shall issue a mortgage broker license to
1634	each person who is not otherwise ineligible and who meets the
1635	requirements of this section. However, it is a ground for denial
1636	of licensure if the applicant or one of the applicant's control
1637	persons:
1638	(a)  Has committed any violation specified in ss. 494.001-
1639	494.0077, or is the subject of a pending felony criminal
1640	prosecution or a prosecution or an administrative enforcement
1641	action, in any jurisdiction, which involves fraud, dishonesty,
1642	breach of trust, money laundering, or any other act of moral
1643	turpitude.
1644	(b)  Demonstrates a lack of financial responsibility,
1645	character, and general fitness which would fail to command the
1646	confidence of the community and to warrant a determination that
1647	the loan originator will operate honestly, fairly, and
1648	efficiently. The office may not base a license denial, in whole
1649	or in part, on an applicant's credit score or use a credit
1650	report as the sole basis for license denial. If an applicant's
1651	credit report is determined by the office to be a factor that
1652	would contribute to the denial of a license, the office shall
1653	notify the applicant of the specific concern relating to the
1654	applicant's credit report and provide the applicant with an
1655	opportunity to provide a written explanation and other
1656	mitigating information in response to the credit report. For
1657	purposes of this paragraph, a person has shown that he or she is
1658	not financially responsible if he or she has shown a disregard
1659	in the management of his or her own financial condition, which
1660	may include, but is not limited to:
1661	1.  Current outstanding judgments, except judgments
1662	resulting solely from medical expenses;
1663	2.  Current outstanding federal tax liens; or
1664	3.  A pattern of seriously delinquent accounts within the
1665	past 7 years that would exhibit an obvious disregard for the
1666	repayment of outstanding obligations.
1667	(5)  The office shall deny a license if the applicant has
1668	had a mortgage broker license, or its equivalent, revoked in any
1669	jurisdiction, or any of the applicant's control persons has had
1670	a loan originator license, or its equivalent, revoked in any
1671	jurisdiction.
1672	(6)  A mortgage broker license may be withdrawn pursuant to
1673	s. 120.60 if it was issued through mistake or inadvertence of
1674	the office. A license must be reinstated if the applicant
1675	demonstrates that the requirements for obtaining the license
1676	under this chapter have been satisfied.
1677	(7)  All mortgage broker licenses must be renewed annually
1678	by December 31 pursuant to s. 494.00322. If a person holding an
1679	active mortgage broker license has not applied to renew the
1680	license annually on or before December 31, the mortgage broker
1681	license expires on December 31. If a person holding an active
1682	mortgage broker license has applied to renew the license on or
1683	before December 31, the mortgage broker license remains active
1684	until the renewal application is approved or denied. A mortgage
1685	broker is not precluded from reapplying for licensure upon
1686	expiration of a previous license.
1687	Section 24.  Effective October 1, 2010, section 494.00322,
1688	Florida Statutes, is created to read:
1689	494.00322  Mortgage broker license renewal.--
1690	(1)  In order to renew a mortgage broker license, a
1691	mortgage broker must:
1692	(a)  Submit a completed license renewal form as prescribed
1693	by commission rule.
1694	(b)  Submit a nonrefundable renewal fee of $375, and the
1695	$100 nonrefundable fee if required by s. 494.00172.
1696	(c)  Submit fingerprints in accordance with s.
1697	494.00321(2)(d) for any new control persons who have not been
1698	screened.
1699	(d)  Authorize the registry to obtain an independent credit
1700	report on each of the applicant's control persons from a
1701	consumer reporting agency, and transmit or provide access to the
1702	report to the office. The cost of the credit report shall be
1703	borne by the applicant.
1704	(e)  Submit any additional information or documentation
1705	requested by the office and required by rule concerning the
1706	applicant or a control person of the applicant. Additional
1707	information may include documentation of pending and prior
1708	disciplinary and criminal history events, including arrest
1709	reports and certified copies of charging documents, plea
1710	agreements, judgments and sentencing documents, documents
1711	relating to pretrial intervention, orders terminating probation
1712	or supervised release, final administrative agency orders, or
1713	other comparable documents that may provide the office with the
1714	appropriate information to determine eligibility for licensure.
1715	(2)  The office may not renew a mortgage broker license
1716	unless the licensee continues to meet the minimum requirements
1717	for initial licensure pursuant to s. 494.00321 and adopted rule.
1718	Section 25.  Effective October 1, 2010, section 494.0033,
1719	Florida Statutes, is repealed.
1720	Section 26.  Section 494.00331, Florida Statutes, is
1721	amended to read:
1722	494.00331  Loan originator employment Mortgage broker
1723	association.--An individual may not act as a loan originator
1724	unless he or she is an employee of, or an independent contractor
1725	for, a mortgage broker or a mortgage lender, and may not be
1726	employed by or contract with more than one mortgage broker or
1727	mortgage lender, or either simultaneously. No person required to
1728	be licensed as a mortgage broker under this chapter shall be
1729	simultaneously an associate of more than one licensed mortgage
1730	brokerage business, licensed mortgage lender, or licensed
1731	correspondent mortgage lender.
1732	Section 27.  Effective October 1, 2010, section 494.0034,
1733	Florida Statutes, is repealed.
1734	Section 28.  Section 494.0035, Florida Statutes, is amended
1735	to read:
1736	494.0035  Principal loan originator broker and branch
1737	manager for mortgage broker requirements.--
1738	(1)  Each mortgage broker brokerage business must be
1739	operated by a principal loan originator who shall have a
1740	principal broker who shall operate the business under such
1741	broker's full charge, control, and supervision of the mortgage
1742	broker business. The principal loan originator must have been
1743	licensed as a loan originator broker must have been a licensed
1744	mortgage broker pursuant to s. 494.0033 for at least 1 year
1745	before prior to being designated as the a principal loan
1746	originator broker, or must shall demonstrate to the satisfaction
1747	of the office that he or she such principal broker has been
1748	actively engaged in a mortgage broker-related mortgage-related
1749	business for at least 1 year before prior to being designated as
1750	a principal loan originator broker. Each mortgage broker must
1751	keep the office informed of the person designated as the
1752	principal loan originator as prescribed by commission rule
1753	brokerage business shall maintain a form as prescribed by the
1754	commission indicating the business's designation of principal
1755	broker and the individual's acceptance of such responsibility.
1756	If the designation is inaccurate, the business shall be deemed
1757	to be operated under form is unavailable, inaccurate, or
1758	incomplete, it is deemed that the business was operated in the
1759	full charge, control, and supervision of by each officer,
1760	director, or ultimate equitable owner of a 10-percent or greater
1761	interest in the mortgage broker brokerage business, or any other
1762	person in a similar capacity. A loan originator may not be a
1763	principal loan originator for more than one mortgage broker at
1764	any given time.
1765	(2)  Each branch office of a mortgage broker brokerage
1766	business must be operated by a have a designated branch manager
1767	broker who shall have operate the business under such broker's
1768	full charge, control, and supervision of the branch office. The
1769	designated branch manager broker must be a licensed loan
1770	originator mortgage broker pursuant to s. 494.00312 s. 494.0033.
1771	Each branch office must keep the office informed of the person
1772	designated as the branch manager as prescribed by commission
1773	rule, which includes documentation of shall maintain a form as
1774	prescribed by the commission logging the branch's designation of
1775	a branch broker and the individual's acceptance of such
1776	responsibility. If the designation is inaccurate, the branch
1777	office shall be deemed to be operated under form is unavailable,
1778	inaccurate, or incomplete, it is deemed that the branch was
1779	operated in the full charge, control, and supervision of by each
1780	officer, director, or ultimate equitable owner of a 10-percent
1781	or greater interest in the mortgage broker brokerage business,
1782	or any other person in a similar capacity.
1783	Section 29.  Section 494.0036, Florida Statutes, is amended
1784	to read:
1785	494.0036  Mortgage broker branch office license brokerage
1786	business branch offices.--
1787	(1)  Each branch office of a mortgage broker must be
1788	licensed under this section. A mortgage brokerage business
1789	branch office license is required for each branch office
1790	maintained by a mortgage brokerage business.
1791	(2)  The office shall issue a mortgage broker brokerage
1792	business branch office license to a mortgage broker brokerage
1793	business licensee after the office determines that the licensee
1794	has submitted a completed application for a branch office in a
1795	form as prescribed by commission rule and payment of an initial
1796	nonrefundable branch office license fee of $225 per branch
1797	office. Application fees may not be prorated for partial years
1798	of licensure. The branch office license shall be issued in the
1799	name of the mortgage broker brokerage business that maintains
1800	the branch office. An application is considered received for
1801	purposes of s. 120.60 upon receipt of a completed application
1802	form as prescribed by commission rule, and the required fees a
1803	nonrefundable application fee of $225, and any other fee
1804	prescribed by law.
1805	(3)  A branch office license must be renewed annually at
1806	the time of renewing the mortgage broker license under s.
1807	494.00322. A nonrefundable branch renewal fee of $225 per branch
1808	office must be submitted at the time of renewal.
1809	Section 30.  Section 494.0038, Florida Statutes, is amended
1810	to read:
1811	494.0038  Loan origination and mortgage broker fees and
1812	Mortgage broker disclosures.--
1813	(1)(a)1.  A loan origination fee may not be paid person may
1814	not receive a mortgage brokerage fee except pursuant to a
1815	written mortgage broker brokerage agreement between the mortgage
1816	broker brokerage business and the borrower which is signed and
1817	dated by the principal loan originator or branch manager, the
1818	business and the borrower. The unique registry identifier of
1819	each loan originator responsible for providing loan originator
1820	services must be printed on the mortgage broker agreement.
1821	(a)2.  The written mortgage broker brokerage agreement must
1822	describe the services to be provided by the mortgage broker
1823	brokerage business and specify the amount and terms of the loan
1824	origination mortgage brokerage fee that the mortgage broker
1825	brokerage business is to receive.
1826	1.  Except for application and third-party fees, all fees
1827	received by a mortgage broker from a borrower must be identified
1828	as a loan origination fee.
1829	2.  All fees on the mortgage broker agreement must be
1830	disclosed in dollar amounts.
1831	3.  All loan origination fees must be paid to a mortgage
1832	broker.
1833	(b)  The written mortgage brokerage agreement must be
1834	executed within 3 business days after a mortgage loan
1835	application is accepted if the borrower is present when the
1836	mortgage loan application is accepted. If the borrower is not
1837	present when such an application is accepted, the licensee shall
1838	forward the written mortgage brokerage agreement to the borrower
1839	within 3 business days after the licensee's acceptance of the
1840	application and the licensee bears the burden of proving that
1841	the borrower received and approved the written mortgage
1842	brokerage agreement.
1843	(2)(b)1.  If the mortgage broker brokerage business is to
1844	receive any payment of any kind from the mortgage lender, the
1845	maximum total dollar amount of the payment must be disclosed to
1846	the borrower in the written mortgage broker brokerage agreement
1847	as described in paragraph (1)(a). The commission may prescribe
1848	by rule an acceptable form for disclosure of brokerage fees
1849	received from the lender. The mortgage brokerage agreement must
1850	state the nature of the relationship with the lender, describe
1851	how compensation is paid by the lender, and describe how the
1852	mortgage interest rate affects the compensation paid to the
1853	mortgage broker brokerage business.
1854	(a)2.  The exact amount of any payment of any kind by the
1855	lender to the mortgage broker brokerage business must be
1856	disclosed in writing to the borrower within 3 business days
1857	after the mortgage broker brokerage business is made aware of
1858	the exact amount of the payment from the lender but not less
1859	than 3 business days before the execution of the closing or
1860	settlement statement. The licensee bears the burden of proving
1861	such notification was provided to the borrower. Notification is
1862	waived if the exact amount of the payment is accurately
1863	disclosed in the written mortgage broker agreement.
1864	(b)(c)  The commission may prescribe by rule the form of
1865	disclosure of brokerage fees.
1866	(3)(2)  At the time a written mortgage broker brokerage
1867	agreement is signed executed by the borrower or forwarded to the
1868	borrower for signature execution, or at the time the mortgage
1869	broker brokerage business accepts an application fee, credit
1870	report fee, property appraisal fee, or any other third-party
1871	fee, but at least not less than 3 business days before execution
1872	of the closing or settlement statement, the mortgage broker
1873	brokerage business shall disclose in writing to any applicant
1874	for a mortgage loan the following information:
1875	(a)  That the such mortgage broker brokerage business may
1876	not make mortgage loans or commitments. The mortgage broker
1877	brokerage business may make a commitment and may furnish a lock-
1878	in of the rate and program on behalf of the lender if when the
1879	mortgage broker brokerage business has obtained a written
1880	commitment or lock-in for the loan from the lender on behalf of
1881	the borrower for the loan. The commitment must be in the same
1882	form and substance as issued by the lender.
1883	(b)  That the such mortgage broker brokerage business
1884	cannot guarantee acceptance into any particular loan program or
1885	promise any specific loan terms or conditions.
1886	(c)  A good faith estimate, signed and dated by the
1887	borrower, which discloses the total amount of each of the fees
1888	which the borrower may reasonably expect to pay if the loan is
1889	closed, including, but not limited to, fees earned by the
1890	mortgage broker brokerage business, lender fees, third-party
1891	fees, and official fees, together with the terms and conditions
1892	for obtaining a refund of such fees, if any. Any amount
1893	collected in excess of the actual cost shall be returned within
1894	60 days after rejection, withdrawal, or closing. The good faith
1895	estimate must identify the recipient of all payments charged the
1896	borrower and, except for all fees to be received by the mortgage
1897	broker brokerage business, may be disclosed in generic terms,
1898	such as, but not limited to, paid to lender, appraiser,
1899	officials, title company, or any other third-party service
1900	provider. This requirement does not supplant or is not a
1901	substitute for the written mortgage broker brokerage agreement
1902	described in subsection (1).
1903	(4)(3)  The disclosures required by this subsection must be
1904	furnished in writing at the time an adjustable rate mortgage
1905	loan is offered to the borrower and whenever the terms of the
1906	adjustable rate mortgage loan offered materially change prior to
1907	closing. The mortgage broker shall furnish the disclosures
1908	relating to adjustable rate mortgages in a format prescribed by
1909	ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
1910	of the Federal Reserve System, as amended; its commentary, as
1911	amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
1912	1601 et seq., as amended; together with the Consumer Handbook on
1913	Adjustable Rate Mortgages, as amended; published by the Federal
1914	Reserve Board and the Federal Home Loan Bank Board. The licensee
1915	bears the burden of proving such disclosures were provided to
1916	the borrower.
1917	(5)(4)  If the mortgage broker brokerage agreement includes
1918	a nonrefundable application fee, the following requirements are
1919	applicable:
1920	(a)  The amount of the application fee, which must be
1921	clearly denominated as such, must shall be clearly disclosed.
1922	(b)  The specific services that will be performed in
1923	consideration for the application fee must shall be disclosed.
1924	(c)  The application fee must be reasonably related to the
1925	services to be performed and may not be based upon a percentage
1926	of the principal amount of the loan or the amount financed.
1927	(6)(5)  A mortgage broker brokerage business may not accept
1928	any fee in connection with a mortgage loan other than an
1929	application fee, credit report fee, property appraisal fee, or
1930	other third-party fee prior to obtaining a written commitment
1931	from a qualified lender.
1932	(7)(6)  Any third-party fee entrusted to a mortgage broker
1933	must brokerage business shall immediately, upon receipt, be
1934	placed into a segregated account with a financial institution
1935	located in the state the accounts of which are insured by the
1936	Federal Government. Such funds shall be held in trust for the
1937	payor and shall be kept in the account until disbursement. Such
1938	funds may be placed in one account if adequate accounting
1939	measures are taken to identify the source of the funds.
1940	(7)  All mortgage brokerage fees shall be paid to a
1941	mortgage brokerage business licensee.
1942	(8)  A mortgage broker may not pay a commission to any
1943	person not licensed pursuant to this chapter.
1944	(9)(8)  This section does not prohibit a mortgage broker
1945	brokerage business from offering products and services, in
1946	addition to those offered in conjunction with the loan
1947	origination process, for a fee or commission.
1948	Section 31.  Section 494.0039, Florida Statutes, is amended
1949	to read:
1950	494.0039  Principal place of business requirements.--Each
1951	mortgage broker brokerage business licensee shall maintain and
1952	transact business from a principal place of business.
1953	Section 32.  Section 494.004, Florida Statutes, is amended
1954	to read:
1955	494.004  Requirements of licensees.--
1956	(1)  Each licensee under this part ss. 494.003-494.0043
1957	shall report to the office:,
1958	(a)  In writing, any conviction of, or plea of nolo
1959	contendere to, regardless of adjudication, any felony or any
1960	crime or administrative violation that involves fraud,
1961	dishonesty, breach of trust, money laundering dishonest dealing,
1962	or any other act of moral turpitude, in any jurisdiction, by the
1963	licensee or any control natural person within named in s.
1964	494.0031(2)(d), not later than 30 days after the date of
1965	conviction, entry of a plea of nolo contendere, or final
1966	administrative action.
1967	(b)(2)  Each licensee under ss. 494.003-494.0043 shall
1968	report, In a form prescribed by rule of the commission, any
1969	conviction of, or plea of nolo contendere to, regardless of
1970	whether adjudication is withheld, any felony committed by the
1971	licensee or any control natural person within named in s.
1972	494.0031(2)(d), not later than 30 days after the date of
1973	conviction or the date the plea of nolo contendere is entered.
1974	(c)(3)  Each licensee under ss. 494.003-494.0043 shall
1975	report Any action in bankruptcy, voluntary or involuntary,
1976	within 30 to the office not later than 7 business days after the
1977	action is instituted.
1978	(d)(4)  Each licensee under ss. 494.003-494.0043 shall
1979	report On a form prescribed by rule of the commission, any
1980	change to the information contained in any initial application
1981	form or any amendment to the application within not later than
1982	30 days after the change is effective.
1983	(5)  A license issued under ss. 494.003-494.0043 is not
1984	transferable or assignable.
1985	(e)(6)  Each licensee under ss. 494.003-494.0043 shall
1986	report Any change in the principal loan originator broker, any
1987	addition or subtraction of a control person partners, officers,
1988	members, joint venturers, directors, control persons of any
1989	licensee, or any individual who is the ultimate equitable owner
1990	of a 10-percent or greater interest in the licensee, or any
1991	change in the form of business organization, by written
1992	amendment in the form and at the time the commission specifies
1993	by rule.
1994	(a)  In any case in which a person or a group of persons,
1995	directly or indirectly or acting by or through one or more
1996	persons, proposes to purchase or acquire a controlling interest
1997	in a licensee, such person or group shall submit an initial
1998	application for licensure as a mortgage brokerage business
1999	before such purchase or acquisition and at the time and in the
2000	form the commission prescribes by rule.
2001	(b)  As used in this subsection, the term "controlling
2002	interest" means possession of the power to direct or cause the
2003	direction of the management or policies of a company whether
2004	through ownership of securities, by contract, or otherwise. Any
2005	person who directly or indirectly has the right to vote 25
2006	percent or more of the voting securities of a company or is
2007	entitled to 25 percent or more of the company's profits is
2008	presumed to possess a controlling interest.
2009	(f)(c)  Any addition of a partner, officer, member, joint
2010	venturer, director, control person, or ultimate equitable owner
2011	of the applicant who does not have a controlling interest and
2012	who has not previously filed a Uniform Mortgage Biographical
2013	Statement & Consent Form, MU2, or has not previously complied
2014	with the fingerprinting and credit report requirements
2015	provisions of ss. 494.00321 and 494.00322, s. 494.0031(2)(c) and
2016	(d) is subject to the such provisions of these sections unless
2017	required to file an initial application in accordance with
2018	paragraph (a). If, after the addition of a control person, the
2019	office finds that the licensee does not continue to meet
2020	licensure requirements, the office may bring an administrative
2021	action in accordance with s. 494.00255 s. 494.0041 to enforce
2022	the provisions of this chapter.
2023	(d)  The commission shall adopt rules pursuant to ss.
2024	120.536(1) and 120.54 providing for the waiver of the
2025	application required by this subsection if the person or group
2026	of persons proposing to purchase or acquire a controlling
2027	interest in a licensee has previously complied with the
2028	provisions of s. 494.0031(2)(c) and (d) with respect to the same
2029	legal entity or is currently licensed by the office under this
2030	chapter.
2031	(7)  On or before April 30, 2000, each mortgage brokerage
2032	business shall file an initial report stating the name, social
2033	security number, date of birth, mortgage broker license number,
2034	date of hire and, if applicable, date of termination for each
2035	person who was an associate of the mortgage brokerage business
2036	during the immediate preceding quarter. Thereafter, A mortgage
2037	brokerage business shall file a quarterly report only if a
2038	person became an associate or ceased to be an associate of the
2039	mortgage brokerage business during the immediate preceding
2040	quarter. Such report shall be filed within 30 days after the
2041	last day of each calendar quarter and shall contain the name,
2042	social security number, date of birth, mortgage broker license
2043	number, date of hire and, if applicable, the date of termination
2044	of each person who became or ceased to be an associate of the
2045	mortgage brokerage business during the immediate preceding
2046	quarter. The commission shall prescribe, by rule, the procedures
2047	for filing reports required by this subsection.
2048	(2)(8)(a)  In every mortgage loan transaction, each
2049	licensee under this part must ss. 494.003-494.0043 shall notify
2050	a borrower of any material changes in the terms of a mortgage
2051	loan previously offered to the borrower within 3 business days
2052	after being made aware of such changes by the mortgage lender
2053	but at least not less than 3 business days before the signing of
2054	the settlement or closing statement. The licensee bears the
2055	burden of proving such notification was provided and accepted by
2056	the borrower.
2057	(b)  A borrower may waive the right to receive notice of a
2058	material change that is granted under paragraph (a) if the
2059	borrower determines that the extension of credit is needed to
2060	meet a bona fide personal financial emergency and the right to
2061	receive notice would delay the closing of the mortgage loan. The
2062	imminent sale of the borrower's home at foreclosure during the
2063	3-day period before the signing of the settlement or closing
2064	statement is constitutes an example of a bona fide personal
2065	financial emergency. In order to waive the borrower's right to
2066	receive notice not less than 3 business days before the signing
2067	of the settlement or closing statement of any such material
2068	change, the borrower must provide the licensee with a dated
2069	written statement that describes the personal financial
2070	emergency, waives the right to receive the notice, bears the
2071	borrower's signature, and is not on a printed form prepared by
2072	the licensee for the purpose of such a waiver.
2073	(3)  Each mortgage broker shall submit to the registry
2074	reports of condition, which must be in such form and shall
2075	contain such information as the registry may require.
2076	(4)  A license issued under this part is not transferable
2077	or assignable.
2078	Section 33.  Section 494.0041, Florida Statutes, is
2079	repealed.
2080	Section 34.  Section 494.0042, Florida Statutes, is amended
2081	to read:
2082	494.0042  Loan originator Brokerage fees.--
2083	(1)  A loan originator mortgage brokerage fee earned by a
2084	licensee, pursuant to this part ss. 494.003-494.0043, is not
2085	considered interest or a finance charge under chapter 687.
2086	(2)  A person may not charge or exact, directly or
2087	indirectly, from the borrower mortgagor a fee or commission in
2088	excess of the maximum fee or commission specified in this
2089	section. The maximum fees or commissions that may be charged for
2090	mortgage loans are as follows:
2091	(a)  On a mortgage loan of $1,000 or less: $250.
2092	(b)  On a mortgage loan exceeding $1,000 and not exceeding
2093	$2,000: $250 for the first $1,000 of the mortgage loan, plus $10
2094	for each additional $100 of the mortgage loan.
2095	(c)  On a mortgage loan exceeding $2,000 and not exceeding
2096	$5,000: $350 for the first $2,000 of the mortgage loan, plus $10
2097	for each additional $100 of the mortgage loan.
2098	(d)  On a mortgage loan exceeding $5,000: $250 plus 10
2099	percent of the entire mortgage loan.
2100
2101	For the purpose of determining the maximum fee, the amount of
2102	the mortgage loan is based on the amount of mortgage loan
2103	actually funded exclusive of the authorized maximum fees or
2104	commissions.
2105	(3)  At the time of accepting a mortgage loan application,
2106	a mortgage broker brokerage business may receive from the
2107	borrower a nonrefundable application fee. If the mortgage loan
2108	is funded, the nonrefundable application fee shall be credited
2109	against the amount owed as a result of the loan being funded. A
2110	person may not receive any form of compensation for acting as a
2111	loan originator mortgage broker other than a nonrefundable
2112	application fee, a fee based on the mortgage amount being
2113	funded, or a fee which complies with s. 494.00421.
2114	Section 35.  Section 494.00421, Florida Statutes, is amended to
2115	read:
2116	494.00421  Fees earned upon obtaining a bona fide
2117	commitment.--Notwithstanding the provisions of ss. 494.001-
2118	494.0077, any mortgage broker brokerage business which contracts
2119	to receive from a borrower a mortgage broker brokerage fee from
2120	a borrower upon obtaining a bona fide commitment shall
2121	accurately disclose in the mortgage broker brokerage agreement:
2122	(1)  The gross loan amount.
2123	(2)  In the case of a fixed-rate mortgage, the note rate.
2124	(3)  In the case of an adjustable rate mortgage:
2125	(a)  The initial note rate.
2126	(b)  The length of time for which the initial note rate is
2127	effective.
2128	(c)  The frequency of changes.
2129	(d)  The limitation upon such changes including adjustment
2130	to adjustment cap and life cap.
2131	(e)  Whether the loan has any potential for negative
2132	amortization.
2133	(f)  Identification of the margin-interest rate
2134	differential.
2135	(g)  Identification of a nationally recognized index which
2136	index must be free from control of the mortgage broker, mortgage
2137	brokerage business, mortgage lender, or correspondent mortgage
2138	lender.
2139	(4)  The estimated net proceeds to be paid directly to the
2140	borrower. "Estimated net proceeds" means the cash to be received
2141	by the borrower after payment of any fees, charges, debts,
2142	liens, or encumbrances to perfect the lien of the new mortgage
2143	and establish the agreed-upon priority of the new mortgage.
2144	(5)  The lien priority of the new proposed mortgage.
2145	(6)  The number of calendar days, which are mutually agreed
2146	upon, within which the mortgage broker brokerage business shall
2147	obtain a bona fide mortgage commitment.
2148	(7)(a)  The following statement, in at least no less than
2149	12-point boldface type immediately above the signature lines for
2150	the borrowers:
2151
2152	"You are entering into a contract with a mortgage broker
2153	brokerage business to obtain a bona fide mortgage loan
2154	commitment under the same terms and conditions as stated
2155	hereinabove or in a separate executed good faith estimate form.
2156	If the mortgage broker brokerage business obtains a bona fide
2157	commitment under the same terms and conditions, you will be
2158	obligated to pay the mortgage broker brokerage business fees,
2159	including, but not limited to, a mortgage broker brokerage fee,
2160	even if you choose not to complete the loan transaction. If the
2161	provisions of s. 494.00421, Florida Statutes, are not met, the
2162	mortgage broker brokerage fee can only be earned upon the
2163	funding of the mortgage loan. The borrower may contact the
2164	Department of Financial Services, Tallahassee, Florida,
2165	regarding any complaints that the borrower may have against the
2166	mortgage broker or the mortgage brokerage business. The
2167	telephone number of the department is: ...[insert telephone
2168	number]...."
2169	(b)  Paragraph (a) does not apply to nonresidential
2170	mortgage loan commitments in excess of $1 million.
2171	(8)  Any other disclosure required pursuant to s. 494.0038.
2172	Section 36.  Section 494.0043, Florida Statutes, is amended
2173	to read:
2174	494.0043  Requirements for brokering loans to
2175	noninstitutional investors.--
2176	(1)  A loan originator mortgage broker, when arranging a
2177	mortgage loan for a noninstitutional investor, shall:
2178	(a)  Before any payment of money by the a noninstitutional
2179	investor, provide an opinion of value from an appraiser stating
2180	the value of the security property unless the opinion is waived
2181	in writing. The opinion must state the value of the property as
2182	it exists on the date of the opinion. If any relationship exists
2183	between the mortgage broker and the appraiser, that relationship
2184	shall be disclosed to the investor.
2185	(b)  Provide to the noninstitutional investor a mortgagee's
2186	title insurance policy or an opinion of title by an attorney
2187	licensed to practice law in the state, or a copy thereof.
2188	1.  If a title insurance policy is issued, it must insure
2189	the noninstitutional investor against the unmarketability of the
2190	mortgagee's interest in such title. It must shall also specify
2191	any superior liens that exist against the property. If an
2192	opinion of title is issued by an attorney licensed to practice
2193	law in the state, the opinion must include a statement as to the
2194	marketability of the title to the property described in the
2195	mortgage and specify the priority of the mortgage being closed.
2196	2.  If the title insurance policy or opinion of title is
2197	not available at the time of purchase, the licensee shall
2198	provide a binder of the title insurance or conditional opinion
2199	of title. This binder or opinion must include any conditions or
2200	requirements that need needed to be corrected before prior to
2201	the issuance of the final title policy or opinion of title. The
2202	binder or opinion must also include information concerning the
2203	requirements specified in subparagraph 1. Any conditions must be
2204	eliminated or waived in writing by the investor before prior to
2205	delivery to the noninstitutional investor. The policy or
2206	opinion, or a copy thereof, shall be delivered to the investor
2207	within a reasonable period of time, not exceeding 6 months,
2208	after closing.
2209	3.  The requirements of this paragraph may be waived in
2210	writing. If the requirements are waived by the noninstitutional
2211	investor, the waiver must include the following statement
2212	wording: "The noninstitutional investor acknowledges that the
2213	mortgage broker or mortgage lender brokering this mortgage loan
2214	is not providing a title insurance policy or opinion of title
2215	issued by an attorney who is licensed to practice law in the
2216	State of Florida. Any requirement for title insurance or for a
2217	legal opinion of title is the sole responsibility of the
2218	noninstitutional mortgage investor."
2219	(c)  Provide, if the loan is other than a first mortgage, a
2220	statement showing the balance owed by the mortgagor on any
2221	existing mortgages prior to this investment and the status of
2222	such existing mortgages.
2223	(d)  Provide a disclosure if the licensee is directly or
2224	indirectly acting as a borrower or principal in the transaction.
2225	(2)  Each original or certified copy of the mortgage, or
2226	other instrument securing a note or assignment thereof, must
2227	shall be recorded before being delivered to the noninstitutional
2228	investor. A loan originator mortgage broker shall cause the
2229	properly endorsed original note to be delivered to the
2230	noninstitutional investor.
2231	(3)  Each mortgage and assignment must shall be recorded as
2232	soon as practical, but no later than 30 business days after the
2233	date of closing.
2234	(4)  Any money from a noninstitutional investor for
2235	disbursement at a mortgage loan closing must shall be deposited
2236	with and disbursed by an attorney duly licensed in this state or
2237	by a title company duly licensed in this state. A person acting
2238	as a loan originator mortgage broker may not have control of any
2239	money from a noninstitutional investor. This subsection does not
2240	prohibit a licensee under this part ss. 494.003-494.0043 from
2241	receiving a loan originator mortgage brokerage fee upon the
2242	closing of the mortgage loan funded by the noninstitutional
2243	investor.
2244	Section 37.  Section 494.006, Florida Statutes, is amended
2245	to read:
2246	494.006  Exemptions.--
2247	(1)  None of the following persons are subject to the
2248	requirements of this part ss. 494.006-494.0077 in order to act
2249	as a mortgage lender or correspondent mortgage lender:
2250	(a)  Any person operating exclusively as a registered loan
2251	originator in accordance with the S.A.F.E. Mortgage Licensing
2252	Act of 2008.
2253	(b)  A depository institution; subsidiaries that are owned
2254	and controlled by a depository institution and regulated by the
2255	Board of Governors of the Federal Reserve System, the
2256	Comptroller of the Currency, the Director of the Office of
2257	Thrift Supervision, the National Credit Union Administration, or
2258	the Federal Deposit Insurance Corporation; or institutions
2259	regulated by the Farm Credit Administration
2260	(c)  The Federal National Mortgage Association; the Federal
2261	Home Loan Mortgage Corporation; an agency of the Federal
2262	Government; any state, county, or municipal government; or any
2263	quasi-governmental agency that acts in such capacity under the
2264	specific authority of the laws of any state or the United
2265	States.
2266	(d)(b)  Any person acting in a fiduciary capacity conferred
2267	by the authority of any court.
2268	(c)  A wholly owned bank holding company subsidiary or a
2269	wholly owned savings and loan association holding company
2270	subsidiary that is formed and regulated under the laws of any
2271	state or the United States and that is approved or certified by
2272	the Department of Housing and Urban Development, the Veterans
2273	Administration, the Government National Mortgage Association,
2274	the Federal National Mortgage Association, or the Federal Home
2275	Loan Mortgage Corporation.
2276	(e)(d)  Any person who, as a seller of his or her own real
2277	property, receives one or more mortgages in a purchase money
2278	transaction.
2279	(e)  Any person who receives a mortgage as security for an
2280	obligation arising out of materials furnished or as services
2281	rendered by the person in the improvement of the real property.
2282	(f)(f)  Any person who makes only nonresidential mortgage
2283	loans and sells loans only to institutional investors.
2284	(g)  The Federal National Mortgage Association; the Federal
2285	Home Loan Mortgage Corporation; an agency of the Federal
2286	Government; any state, county, or municipal government; or any
2287	quasi-governmental agency that acts in such capacity under the
2288	specific authority of the laws of any state or the United
2289	States.
2290	(h)  A consumer finance company licensed pursuant to
2291	chapter 516 as of October 1, 1991.
2292	(g)(i)  Any natural person making or acquiring a mortgage
2293	loan with his or her own funds for his or her own investment,
2294	and who does not hold himself or herself out to the public, in
2295	any manner, as being in the mortgage lending business.
2296	(h)(j)  Any natural person selling a mortgage that was made
2297	or purchased with that person's funds for his or her own
2298	investment, and who does not hold himself or herself out to the
2299	public, in any manner, as being in the mortgage lending
2300	business.
2301	(i)(k)  Any person who acts solely under contract and as an
2302	agent for federal, state, or municipal agencies in the servicing
2303	of mortgage loans.
2304	(2)(a)  A natural person employed by a mortgage lender or
2305	correspondent mortgage lender licensed under ss. 494.001-
2306	494.0077 is exempt from the licensure requirements of ss.
2307	494.001-494.0077 when acting within the scope of employment with
2308	the licensee.
2309	(b)  A corporation that is in existence on October 1, 1991,
2310	and that is a wholly owned subsidiary of a consumer finance
2311	company licensed pursuant to chapter 516 on October 1, 1991, is
2312	not required to be licensed under ss. 494.006-494.0077 in order
2313	to act as a mortgage lender or a correspondent mortgage lender.
2314	(2)(3)  It is unnecessary to negate any of the exemptions
2315	provided in this section ss. 494.001-494.0077 in any complaint,
2316	information, indictment, or other writ or proceeding brought
2317	under ss. 494.001-494.0077. The burden of establishing the right
2318	to an any exemption is upon the party claiming the benefit of
2319	the exemption.
2320	Section 38.  Effective October 1, 2010, section 494.0061,
2321	Florida Statutes, is repealed.
2322	Section 39.  Effective October 1, 2010, section 494.00611,
2323	Florida Statutes, is created to read:
2324	494.00611  Mortgage lender license.--
2325	(1)  Each person who acts as a mortgage lender must be
2326	licensed under this section.
2327	(2)  In order to apply for a mortgage lender license the
2328	applicant must:
2329	(a)  Submit a completed application form as prescribed by
2330	the commission by rule.
2331	(b)  Designate a qualified principal loan originator who
2332	meets the requirements of s. 494.0035 on the application form.
2333	(c)  Submit a nonrefundable application fee of $500, and
2334	the $100 nonrefundable fee if required by s. 494.00172.
2335	Application fees may not be prorated for partial years of
2336	licensure.
2337	(d)  Submit fingerprints for each of the applicant's
2338	control persons in accordance with rules adopted by the
2339	commission:
2340	1.  The fingerprints may be submitted to the registry, the
2341	office, or a vendor acting on behalf of the registry or the
2342	office.
2343	2.  The office may contract with a third-party vendor to
2344	provide live-scan fingerprinting in lieu of a paper fingerprint
2345	card.
2346	3.  A state criminal history background check must be
2347	conducted through the Department of Law Enforcement and a
2348	federal criminal history background check must be conducted
2349	through the Federal Bureau of Investigation.
2350	4.  All fingerprints submitted to the Department of Law
2351	Enforcement must be submitted electronically and entered into
2352	the statewide automated fingerprint identification system
2353	established in s. 943.05(2)(b) and available for use in
2354	accordance with s. 943.05(2)(g) and (h). The office shall pay an
2355	annual fee to the department to participate in the system and
2356	inform the department of any person whose fingerprints are no
2357	longer required to be retained.
2358	5.  The costs of fingerprint processing, including the cost
2359	of retaining the fingerprints, shall be borne by the person
2360	subject to the background check.
2361	6.  The office is responsible for reviewing the results of
2362	the state and federal criminal history checks and determining
2363	whether the applicant meets licensure requirements.
2364	(e)  Indicate whether the applicant will be seeking a
2365	servicing endorsement on the application form.
2366	(f)  Submit a copy of the applicant's financial audit
2367	report for the most recent fiscal year which, pursuant to United
2368	States generally accepted accounting principles, documents that
2369	the applicant has a bona fide and verifiable net worth, of at
2370	least $63,000 if the applicant is not seeking a servicing
2371	endorsement, or at least $250,000 if the applicant is seeking a
2372	servicing endorsement, which must be continuously maintained as
2373	a condition of licensure. If the applicant is a wholly owned
2374	subsidiary of another corporation, the financial audit report
2375	for the parent corporation's satisfies this requirement. The
2376	commission may establish by rule the form and procedures for
2377	filing the financial audit report, including the requirement to
2378	file the report with the registry when technology is available.
2379	(g)  Authorize the registry to obtain an independent credit
2380	report on each of the applicant's control persons from a
2381	consumer reporting agency, and transmit or provide access to the
2382	report to the office. The cost of the credit report shall be
2383	borne by the applicant.
2384	(h)  Submit additional information or documentation
2385	requested by the office and required by rule concerning the
2386	applicant or a control person of the applicant. Additional
2387	information may include documentation of pending and prior
2388	disciplinary and criminal history events, including arrest
2389	reports and certified copies of charging documents, plea
2390	agreements, judgments and sentencing documents, documents
2391	relating to pretrial intervention, orders terminating probation
2392	or supervised release, final administrative agency orders, or
2393	other comparable documents that may provide the office with the
2394	appropriate information to determine eligibility for licensure.
2395	(i)  Submit any other information required by the registry
2396	for the processing of the application.
2397	(3)  An application is considered received for the purposes
2398	of s. 120.60 upon the office's receipt of all documentation from
2399	the registry, including the completed application form, criminal
2400	history information, and independent credit report, as well as
2401	the license application fee, the fee required under s.
2402	494.00172, and all applicable fingerprinting processing fees.
2403	(4)  The office shall issue a mortgage lender license to
2404	each person who is not otherwise ineligible and who meets the
2405	requirements of this section. However, it is a ground for denial
2406	of licensure if the applicant or one of the applicant's control
2407	persons:
2408	(a)  Has committed any violation specified in ss. 494.001-
2409	494.0077, or is the subject of a pending felony criminal
2410	prosecution or a prosecution or an administrative enforcement
2411	action, in any jurisdiction, which involves fraud, dishonesty,
2412	breach of trust, money laundering, or any other act of moral
2413	turpitude.
2414	(b)  Demonstrates a lack of financial responsibility,
2415	character, and general fitness which would fail to command the
2416	confidence of the community and to warrant a determination that
2417	the loan originator will operate honestly, fairly, and
2418	efficiently. The office may not base a license denial, in whole
2419	or in part, on an applicant's credit score or use a credit
2420	report as the sole basis for license denial. If an applicant's
2421	credit report is determined by the office to be a factor that
2422	would contribute to the denial of a license, the office shall
2423	notify the applicant of the specific concern relating to the
2424	applicant's credit report and provide the applicant with an
2425	opportunity to provide a written explanation and other
2426	mitigating information in response to the credit report. For
2427	purposes of this paragraph, a person has shown that he or she is
2428	not financially responsible if he or she has shown a disregard
2429	in the management of his or her own financial condition, which
2430	may include, but is not limited to:
2431	1.  Current outstanding judgments, except judgments
2432	resulting solely from medical expenses;
2433	2.  Current outstanding federal tax liens; or
2434	3.  A pattern of seriously delinquent accounts within the
2435	past 7 years that would exhibit an obvious disregard for the
2436	repayment of outstanding obligations.
2437	(5)  The office may not issue a license if the applicant
2438	has had a mortgage lender license or its equivalent revoked in
2439	any jurisdiction, or any of the applicant's control persons has
2440	ever had a loan originator license or its equivalent revoked in
2441	any jurisdiction.
2442	(6)  A person required to be licensed under this part, or
2443	an agent or employee thereof, is deemed to have consented to the
2444	venue of courts in this state regarding any matter within the
2445	authority of ss. 494.001-494.0077 regardless of where an act or
2446	violation was committed.
2447	(7)  A license issued in accordance with this part is not
2448	transferable or assignable.
2449	(8)  A mortgage lender or branch office license may be
2450	withdrawn pursuant to s. 120.60 if it was issued through mistake
2451	or inadvertence of the office. A license must be reinstated if
2452	the applicant demonstrates that the requirements for obtaining
2453	the license under this chapter have been satisfied.
2454	(9)  Each lender, regardless of the number of branches it
2455	operates, shall designate a principal loan originator
2456	representative who exercises control of the licensee's business,
2457	and a branch manager for each branch office. Each mortgage
2458	lender must keep the office informed of the persons designated
2459	as prescribed by commission rule, which includes documentation
2460	of the individual's acceptance of such responsibility. If the
2461	designation is inaccurate, the branch shall be deemed to be
2462	operated under the full charge, control, and supervision by each
2463	officer, director, or ultimate equitable owner of a 10 percent
2464	or greater interest in the mortgage lender business, or any
2465	other person in a similar capacity during that time.
2466	(10)  All mortgage lender licenses must be renewed annually
2467	by December 31 pursuant to s. 494.00612. If a person holding an
2468	active mortgage broker license has not applied to renew the
2469	license annually on or before December 31, the mortgage broker
2470	license expires on December 31. If a person holding an active
2471	mortgage broker license has applied to renew the license on or
2472	before December 31, the mortgage broker license remains active
2473	until the renewal application is approved or denied. A mortgage
2474	broker is not precluded from reapplying for licensure upon
2475	expiration of a previous license.
2476	Section 40.  Effective October 1, 2010, section 494.00612,
2477	Florida Statutes, is created to read:
2478	494.00612  Mortgage lender license renewal.--
2479	(1)  In order to renew a mortgage lender license, a
2480	mortgage lender must:
2481	(a)  Submit a completed license renewal form as prescribed
2482	by commission rule.
2483	(b)  Submit a nonrefundable renewal fee of $475, and the
2484	$100 nonrefundable fee if required by s. 494.00172.
2485	(c)  Submit fingerprints in accordance with s.
2486	494.00611(2)(d) for any new control persons who have not been
2487	screened.
2488	(d)  Provide proof that the mortgage lender continues to
2489	meet the applicable net worth requirement in a form prescribed
2490	by commission rule.
2491	(e)  Authorize the registry to obtain an independent credit
2492	report on the mortgage lender from a consumer reporting agency,
2493	and transmit or provide access to the report to the office. The
2494	cost of the credit report shall be borne by the applicant.
2495	(f)  Submit any additional information or documentation
2496	requested by the office and required by rule concerning the
2497	licensee. Additional information may include documentation of
2498	pending and prior disciplinary and criminal history events,
2499	including arrest reports and certified copies of charging
2500	documents, plea agreements, judgments and sentencing documents,
2501	documents relating to pretrial intervention, orders terminating
2502	probation or supervised release, final administrative agency
2503	orders, or other comparable documents that may provide the
2504	office with the appropriate information to determine eligibility
2505	for licensure.
2506	(2)  The office may not renew a mortgage lender license
2507	unless the mortgage lender continues to meet the minimum
2508	standards for initial license issuance pursuant to s. 494.00611
2509	and adopted rule.
2510	Section 41.  Effective October 1, 2010, section 494.0062,
2511	Florida Statutes, is repealed.
2512	Section 42.  Section 494.0063, Florida Statutes, is amended
2513	to read:
2514	494.0063  Audited financial statements.--All audited
2515	financial statements required by ss. 494.001-494.0077 must be
2516	prepared by an independent licensed certified public accountant.
2517	A mortgage lender must obtain an annual financial audit report
2518	as of the date of the licensee's fiscal year end, as disclosed
2519	to the office on the application or a subsequent amendment to
2520	the application. The mortgage lender shall submit a copy of the
2521	report to the office within 120 days after the end of the
2522	licensee's fiscal year. If the applicant is a wholly owned
2523	subsidiary of another corporation, the financial audit report of
2524	the parent corporation's satisfies this requirement. If the
2525	licensee changes its fiscal year, the licensee must file report
2526	within 18 months after the previously submitted report. The
2527	commission may establish by rule the procedures and form for
2528	filing a financial audit report, including the requirement to
2529	file the report with the registry when technology is available.
2530	Section 43.  Effective October 1, 2010, section 494.0064,
2531	Florida Statutes, is repealed.
2532	Section 44.  Effective October 1, 2010, section 494.0065,
2533	Florida Statutes, is repealed.
2534	Section 45.  Section 494.0066, Florida Statutes, is amended
2535	to read:
2536	494.0066  Branch offices.--
2537	(1)  Each branch office of a mortgage lender must be
2538	licensed under this section A branch office license is required
2539	for each branch office maintained by a licensee under ss.
2540	494.006-494.0077.
2541	(2)  The office shall issue a branch office license to a
2542	mortgage lender licensee licensed under ss. 494.006-494.0077
2543	after the office determines that the mortgage lender licensee
2544	has submitted a completed branch office application form as
2545	prescribed by rule by the commission, and an initial
2546	nonrefundable branch office license fee of $225 per branch
2547	office $325. Application fees may not be prorated for partial
2548	years of licensure. The branch office application must include
2549	the name and license number of the mortgage lender licensee
2550	under this part ss. 494.006-494.0077, the name of the branch
2551	manager licensee's employee in charge of the branch office, and
2552	the address of the branch office. The branch office license
2553	shall be issued in the name of the mortgage lender licensee
2554	under ss. 494.006-494.0077 and must be renewed in conjunction
2555	with the license renewal. An application is considered received
2556	for purposes of s. 120.60 upon receipt of a completed branch
2557	office renewal form, as prescribed by commission rule, and the
2558	required fees.
2559	(3)  A branch office license must be renewed at the time of
2560	renewing the mortgage lender license. A nonrefundable fee of
2561	$225 per branch office must be submitted at the time of renewal.
2562	Section 46.  Section 494.00665, Florida Statutes, is
2563	created to read:
2564	494.00665  Principal loan originator and branch manager for
2565	mortgage lender.--
2566	(1)  Each mortgage lender business must be operated by a
2567	principal loan originator who shall have full charge, control,
2568	and supervision of the mortgage lender business. The principal
2569	loan originator must have been licensed as a loan originator
2570	pursuant to s. 494.00312. Each mortgage lender must keep the
2571	office informed of the person designated as the principal loan
2572	originator as prescribed by commission rule. If the designation
2573	is inaccurate, the business shall be deemed to be operated under
2574	the full charge, control, and supervision of each officer,
2575	director, or ultimate equitable owner of a 10 percent or greater
2576	interest in the mortgage lender business, or any other person in
2577	a similar capacity during that time.
2578	(2)  Each branch office of a mortgage lender must be
2579	operated by a branch manager who shall have full charge,
2580	control, and supervision of the branch office. The designated
2581	branch manager must be a licensed loan originator pursuant to s.
2582	494.00312. Each mortgage lender must keep the office informed of
2583	the person designated as the branch manager as prescribed by
2584	commission rule, which includes documentation of the
2585	individual's acceptance of such responsibility. If the
2586	designation is inaccurate, the branch office shall be deemed to
2587	be operated under the full charge, control, and supervision of
2588	each officer, director, or ultimate equitable owner of a 10
2589	percent or greater interest in the mortgage lender business, or
2590	any other person in a similar capacity during that time.
2591	Section 47.  Section 494.0067, Florida Statutes, is amended
2592	to read:
2593	494.0067  Requirements of mortgage lenders licensees under
2594	ss. 494.006-494.0077.--
2595	(1)  A mortgage lender that Each licensee under ss.
2596	494.006-494.0077 which makes mortgage loans on real estate in
2597	this state shall transact business from a principal place of
2598	business. Each principal place of business and each branch
2599	office shall be operated under the full charge, control, and
2600	supervision of the licensee pursuant to this part under ss.
2601	494.006-494.0077.
2602	(2)  A license issued under this part ss. 494.006-494.0077
2603	is not transferable or assignable.
2604	(3)  A mortgage lender Each licensee under ss. 494.006-
2605	494.0077 shall report, on a form prescribed by rule of the
2606	commission, any change in the information contained in any
2607	initial application form, or any amendment thereto, within not
2608	later than 30 days after the change is effective.
2609	(4)  A mortgage lender Each licensee under ss. 494.006-
2610	494.0077 shall report any changes in the principal loan
2611	originator, any addition or subtraction of a control person,
2612	partners, officers, members, joint venturers, directors, or
2613	control persons of any licensee or any change changes in the
2614	form of business organization by written amendment in such form
2615	and at such time that the commission specifies by rule.
2616	(a)  In any case in which a person or a group of persons,
2617	directly or indirectly or acting by or through one or more
2618	persons, proposes to purchase or acquire a controlling interest
2619	in a licensee, such person or group must submit an initial
2620	application for licensure as a mortgage lender or correspondent
2621	mortgage lender before such purchase or acquisition and at the
2622	time and in the form prescribed by the commission by rule.
2623	(b)  As used in this subsection, the term "controlling
2624	interest" means possession of the power to direct or cause the
2625	direction of the management or policies of a company whether
2626	through ownership of securities, by contract, or otherwise. Any
2627	person who directly or indirectly has the right to vote 25
2628	percent or more of the voting securities of a company or who is
2629	entitled to 25 percent or more of the company's profits is
2630	presumed to possess a controlling interest.
2631	(b)(c)  Any addition of a designated principal
2632	representative, partner, officer, member, joint venturer,
2633	director, or control person of the applicant who does not have a
2634	controlling interest and who has not previously filed a Uniform
2635	Mortgage Biographical Statement & Consent Form, MU2, or has not
2636	previously complied with fingerprinting and credit report
2637	requirements of s. 494.00611 is the provisions of s.
2638	494.0061(2)(g) and (h), s. 494.0062(2)(g) and (h), or s.
2639	494.0065(5)(e) and (f) shall be subject to the such provisions
2640	of this section unless required to file an initial application
2641	in accordance with paragraph (a). If after the addition of a
2642	control person, the office determines that the licensee does not
2643	continue to meet licensure requirements, the office may bring
2644	administrative action in accordance with s. 494.00255 s.
2645	494.0072 to enforce the provisions of this section.
2646	(d)  The commission shall adopt rules pursuant to ss.
2647	120.536(1) and 120.54 providing for the waiver of the
2648	application required by this subsection if the person or group
2649	of persons proposing to purchase or acquire a controlling
2650	interest in a licensee has previously complied with the
2651	provisions of s. 494.0061(2)(g) and (h), s. 494.0062(2)(g) and
2652	(h), or s. 494.0065(5)(e) and (f) with the same legal entity or
2653	is currently licensed with the office under this chapter.
2654	(5)  Each mortgage lender licensee under ss. 494.006-
2655	494.0077 shall report in a form prescribed by rule by the
2656	commission any indictment, information, charge, conviction, plea
2657	of guilty or nolo contendere, regardless of adjudication, or
2658	plea of guilty to any felony or any crime or administrative
2659	violation that involves fraud, dishonesty, breach of trust,
2660	money laundering dishonest dealing, or any other act of moral
2661	turpitude, in any jurisdiction, by the licensee under ss.
2662	494.006-494.0077 or any principal officer, director, or ultimate
2663	equitable owner of 10 percent or more of the licensed
2664	corporation, within not later than 30 business days after the
2665	indictment, information, charge, conviction, or final
2666	administrative action.
2667	(6)  Each mortgage lender licensee under ss. 494.006-
2668	494.0077 shall report any action in bankruptcy, voluntary or
2669	involuntary, to the office, within not later than 7 business
2670	days after the action is instituted.
2671	(7)  Each mortgage lender licensee under ss. 494.006-
2672	494.0077 shall designate a registered agent in this state for
2673	service of process.
2674	(8)  Each mortgage lender licensee under ss. 494.006-
2675	494.0077 shall provide an applicant for a mortgage loan a good
2676	faith estimate of the costs the applicant can reasonably expect
2677	to pay in obtaining a mortgage loan. The good faith estimate of
2678	costs must shall be mailed or delivered to the applicant within
2679	3 business days a reasonable time after the licensee receives a
2680	written loan application from the applicant. The estimate of
2681	costs may be provided to the applicant by a person other than
2682	the licensee making the loan. The good faith estimate must
2683	identify the recipient of all payments charged to the borrower
2684	and, except for all fees to be received by the mortgage broker
2685	brokerage business and the mortgage lender or correspondent
2686	mortgage lender, may be disclosed in generic terms, such as, but
2687	not limited to, paid to appraiser, officials, title company, or
2688	any other third-party service provider. The licensee bears the
2689	burden of proving such disclosures were provided to the
2690	borrower. The commission may adopt rules that set forth the
2691	disclosure requirements of this section.
2692	(9)  On or before April 30, 2000, each mortgage lender or
2693	correspondent mortgage lender shall file an initial report
2694	stating the full legal name, residential address, social
2695	security number, date of birth, mortgage broker license number,
2696	date of hire, and, if applicable, date of termination for each
2697	person who acted as a loan originator or an associate of the
2698	mortgage lender or correspondent mortgage lender during the
2699	immediate preceding quarter. Thereafter, a mortgage lender or
2700	correspondent mortgage lender shall file a report only if a
2701	person became or ceased to be a loan originator or an associate
2702	of the mortgage lender or correspondent mortgage lender during
2703	the immediate preceding quarter. Such report shall be filed
2704	within 30 days after the last day of each calendar quarter and
2705	shall contain the full legal name, residential address, social
2706	security number, date of birth, date of hire and, if applicable,
2707	the mortgage broker license number and date of termination of
2708	each person who became or ceased to be a loan originator or an
2709	associate of the mortgage lender or correspondent mortgage
2710	lender during the immediate preceding quarter. The commission
2711	shall prescribe, by rule, the procedures for filing reports
2712	required by this subsection.
2713	(10)(a)  Each mortgage lender or correspondent mortgage
2714	lender licensee shall require the principal representative and
2715	all loan originators, not currently licensed as mortgage brokers
2716	pursuant to s. 494.0033, who perform services for the licensee
2717	to complete 14 hours of professional continuing education during
2718	each biennial license period. The education shall cover primary
2719	and subordinate mortgage financing transactions and the
2720	provisions of this chapter and the rules adopted under this
2721	chapter.
2722	(b)  The licensee shall maintain records of such training
2723	for a period of 4 years, including records of the content of and
2724	hours designated for each program and the date and location of
2725	the program.
2726	(c)  Evidence of completion of such programs shall be
2727	included with the licensee's renewal application.
2728	(9)(11)  The disclosures in this subsection must be
2729	furnished in writing at the time an adjustable rate mortgage
2730	loan is offered to the borrower and whenever the terms of the
2731	adjustable rate mortgage loan offered have a material change
2732	prior to closing. The lender shall furnish the disclosures
2733	relating to adjustable rate mortgages in a format prescribed by
2734	ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
2735	of the Federal Reserve System, as amended; its commentary, as
2736	amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
2737	1601 et seq., as amended; together with the Consumer Handbook on
2738	Adjustable Rate Mortgages, as amended; published by the Federal
2739	Reserve Board and the Federal Home Loan Bank Board. The licensee
2740	bears the burden of proving such disclosures were provided to
2741	the borrower.
2742	(10)(12)(a)  In every mortgage loan transaction, each
2743	mortgage lender licensee under ss. 494.006-494.0077 shall notify
2744	a borrower of any material changes in the terms of a mortgage
2745	loan previously offered to the borrower within 3 business days
2746	after being made aware of such changes by the lender but at
2747	least not less than 3 business days before the signing of the
2748	settlement or closing statement. The licensee bears the burden
2749	of proving such notification was provided and accepted by the
2750	borrower.
2751	(b)  A borrower may waive the right to receive notice of a
2752	material change that is granted under paragraph (a) if the
2753	borrower determines that the extension of credit is needed to
2754	meet a bona fide personal financial emergency and the right to
2755	receive notice would delay the closing of the mortgage loan. The
2756	imminent sale of the borrower's home at foreclosure during the
2757	3-day period before the signing of the settlement or closing
2758	statement constitutes an example of a bona fide personal
2759	financial emergency. In order to waive the borrower's right to
2760	receive notice not less than 3 business days before the signing
2761	of the settlement or closing statement of any such material
2762	change, the borrower must provide the licensee with a dated
2763	written statement that describes the personal financial
2764	emergency, waives the right to receive the notice, bears the
2765	borrower's signature, and is not on a printed form prepared by
2766	the licensee for the purpose of such a waiver.
2767	(11)  A mortgage lender may close loans in its own name but
2768	may not service the loan for more than 4 months unless the
2769	lender has a servicing endorsement. Only a mortgage lender who
2770	continuously maintains a net worth of at least $250,000 may
2771	obtain a servicing endorsement.
2772	(12)  A mortgage lender must report to the office the
2773	failure to meet the applicable net worth requirements of s.
2774	494.00611 within 2 days after the mortgage lender's knowledge of
2775	such failure or after the mortgage lender should have known of
2776	such failure.
2777	Section 48.  Section 494.0068, Florida Statutes, is amended
2778	to read:
2779	494.0068  Loan application process.--
2780	(1)  In addition to the requirements set forth in s.
2781	494.0067(8), before accepting an application fee in whole or in
2782	part, a credit report fee, an appraisal fee, or a fee charged as
2783	reimbursement for third-party charges, a mortgage lender shall
2784	make a written disclosure to the borrower, which disclosure may
2785	be contained in the application, setting forth:
2786	(a)  Whether all or any part of such fees or charges is
2787	refundable.
2788	(b)  The terms and conditions for the refund, if all or any
2789	part of the fees or charges is refundable.
2790	(c)  A realistic estimate of the number of days required to
2791	issue a commitment following receipt of the application by the
2792	lender.
2793	(d)  The name or title of a person within the lender's
2794	organization to whom the borrower may address written questions,
2795	comments, or complaints and who is required to promptly respond
2796	to such inquiries.
2797	(2)  The disclosures required in subsection (1) must shall
2798	be acknowledged in writing by the borrower and maintained by the
2799	mortgage lender, and a copy of such acknowledgment shall be
2800	given to the borrower.
2801	(3)  The borrower may, without penalty or responsibility
2802	for paying additional fees and charges, withdraw an application
2803	at any time prior to acceptance of commitment. Upon such
2804	withdrawal, the mortgage lender is responsible for refunding to
2805	the borrower only those fees and charges to which the borrower
2806	may be entitled pursuant to the terms set forth in the written
2807	disclosure required by subsection (1), except that:
2808	(a)  If the lender failed to provide the borrower with the
2809	written disclosure required by subsection (1), the lender shall
2810	promptly refund to the borrower all funds paid to the lender; or
2811	(b)  If the lender failed to make a good faith effort to
2812	approve the loan, the lender shall promptly refund to the
2813	borrower all funds paid to the lender.
2814	(4)  The application fee must be reasonably related to the
2815	services to be performed and may not be based upon a percentage
2816	of the principal amount of the loan or the amount financed.
2817	(5)  For the purposes of this section, the term
2818	"application fee" means any moneys advanced by the borrower upon
2819	filing an application with a mortgage lender to offset the
2820	lender's expenses for determining whether the borrower is
2821	qualified for the mortgage loan or whether the mortgage loan
2822	should be funded.
2823	Section 49.  Section 494.0069, Florida Statutes, is amended
2824	to read:
2825	494.0069  Lock-in agreement.--
2826	(1)  Each lock-in agreement must be in writing and must
2827	contain:
2828	(a)  The expiration date of the lock-in, if any;
2829	(b)  The interest rate locked in, if any;
2830	(c)  The discount points locked in, if any;
2831	(d)  The commitment fee locked in, if any;
2832	(e)  The lock-in fee, if any; and
2833	(f)  A statement advising of the provisions of ss. 494.006-
2834	494.0077 regarding lock-in agreements.
2835	(2)  The mortgage lender or correspondent mortgage lender
2836	shall make a good faith effort to process the mortgage loan
2837	application and stand ready to fulfill the terms of its
2838	commitment before the expiration date of the lock-in agreement
2839	or any extension thereof.
2840	(3)  Any lock-in agreement received by a mortgage lender or
2841	correspondent mortgage lender by mail or through a mortgage
2842	broker must be signed by the mortgage lender or correspondent
2843	mortgage lender in order to become effective. The borrower may
2844	rescind any lock-in agreement until a written confirmation of
2845	the agreement has been signed by the lender and mailed to the
2846	borrower or to the mortgage broker brokerage business pursuant
2847	to its contractual relationship with the borrower. If a borrower
2848	elects to so rescind, the mortgage lender or correspondent
2849	mortgage lender shall promptly refund any lock-in fee paid.
2850	(4)(a)  Before Any correspondent mortgage lender or
2851	mortgage lender prior to issuing a mortgage loan rate lock-in
2852	agreement, a mortgage lender must have the ability to timely
2853	advance funds on all mortgage loans for which rate lock-in
2854	agreements have been issued. As used in this section, "ability
2855	to timely advance funds" means having sufficient liquid assets
2856	or a line of credit necessary to cover all rate lock-in
2857	agreements issued with respect to which a lock-in fee is
2858	collected.
2859	(a)(b)  A correspondent mortgage lender or mortgage lender
2860	that does not comply with this subsection paragraph (a) may
2861	issue mortgage rate lock-in agreements only if, prior to the
2862	issuance, the correspondent mortgage lender or mortgage lender:
2863	1.  Has received a written rate lock-in agreement from a
2864	correspondent mortgage lender or mortgage lender that complies
2865	with this subsection paragraph (a); or
2866	2.  Has received a written rate lock-in agreement from an
2867	institutional investor or an agency of the Federal Government or
2868	the state or local government that will be funding, making, or
2869	purchasing the mortgage loan.
2870	(b)(c)  All rate lock-in fees collected by a mortgage
2871	lender or correspondent mortgage lender who is not in compliance
2872	with paragraph (a) must be deposited into an escrow account in a
2873	federally insured financial institution, and such fees may shall
2874	not be removed from such escrow account until:
2875	1.  The mortgage loan closes and is funded;
2876	2.  The applicant cancels the loan application or the loan
2877	application is rejected; or
2878	3.  The mortgage lender or correspondent mortgage lender is
2879	required to forward a portion of the lock-in fee to another
2880	correspondent mortgage lender, mortgage lender, institutional
2881	investor, or agency that will be funding, making, or purchasing
2882	the loan. The mortgage lender or correspondent mortgage lender
2883	may remove only the amount of the lock-in fee actually paid to
2884	another mortgage lender, correspondent mortgage lender,
2885	institutional investor, or agency.
2886	(5)  For purposes of this section, the term "lock-in fee"
2887	means any moneys advanced by the borrower to lock in for a
2888	specified period of time a specified interest rate or discount
2889	points.
2890	(6)  The commission may adopt by rule a form for required
2891	lock-in agreement disclosures.
2892	Section 50.  Section 494.007, Florida Statutes, is amended
2893	to read:
2894	494.007  Commitment process.--
2895	(1)  If a commitment is issued, the mortgage lender shall
2896	disclose in writing:
2897	(a)  The expiration date of the commitment;
2898	(b)  The mortgage amount, meaning the face amount of credit
2899	provided to the borrower or in the borrower's behalf;
2900	(c)  If the interest rate or other terms are subject to
2901	change before expiration of the commitment:
2902	1.  The basis, index, or method, if any, which will be used
2903	to determine the rate at closing. Such basis, index, or method
2904	shall be established and disclosed with direct reference to the
2905	movement of an interest rate index or of a national or regional
2906	index that is available to and verifiable by the borrower and
2907	beyond the control of the lender; or
2908	2.  The following statement, in at least 10-point bold
2909	type: "The interest rate will be the rate established by the
2910	lender in its discretion as its prevailing rate . . . days
2911	before closing.";
2912	(d)  The amount of the commitment fee, if any, and whether
2913	and under what circumstances the commitment fee is refundable;
2914	and
2915	(e)  The time, if any, within which the commitment must be
2916	accepted by the borrower.
2917	(2)  The provisions of a commitment cannot be changed prior
2918	to expiration of the specified period within which the borrower
2919	must accept it. If any information necessary for an accurate
2920	disclosure required by subsection (1) is unknown to the mortgage
2921	lender at the time disclosure is required, the lender shall make
2922	the disclosure based upon the best information reasonably
2923	available to it and shall state that the disclosure is an
2924	estimate.
2925	(3)  A commitment fee is refundable if:
2926	(a)  The commitment is contingent upon approval by parties
2927	to whom the mortgage lender seeks to sell the loan.
2928	(b)  The loan purchaser's requirements are not met due to
2929	circumstances beyond the borrower's control.
2930	(c)  The borrower is willing but unable to comply with the
2931	loan purchaser's requirements.
2932	Section 51.  Section 494.0071, Florida Statutes, is amended
2933	to read:
2934	494.0071  Expiration of lock-in agreement or
2935	commitment.--If a lock-in agreement has been executed and the
2936	loan does not close before the expiration date of either the
2937	lock-in agreement or any commitment issued consistent therewith
2938	through no substantial fault of the borrower, the borrower may
2939	withdraw the application or reject or terminate any commitment,
2940	whereupon the mortgage lender or correspondent mortgage lender
2941	shall promptly refund to the borrower any lock-in fee and any
2942	commitment fee paid by the borrower.
2943	Section 52.  Section 494.0072, Florida Statutes, is
2944	repealed.
2945	Section 53.  Section 494.00721, Florida Statutes, is
2946	amended to read:
2947	494.00721  Net worth.--
2948	(1)  The net worth requirements required in s. 494.00611
2949	ss. 494.0061, 494.0062, and 494.0065 shall be continually
2950	maintained as a condition of licensure.
2951	(2)  If a mortgage lender or correspondent mortgage lender
2952	fails to satisfy the net worth requirements, the mortgage lender
2953	or correspondent mortgage lender shall immediately cease taking
2954	any new mortgage loan applications. Thereafter, the mortgage
2955	lender or correspondent mortgage lender shall have up to 60 days
2956	within which to satisfy the net worth requirements. If the
2957	licensee makes the office aware, prior to an examination, that
2958	the licensee no longer meets the net worth requirements, the
2959	mortgage lender or correspondent mortgage lender shall have 120
2960	days within which to satisfy the net worth requirements. A
2961	mortgage lender may or correspondent mortgage lender shall not
2962	resume acting as a mortgage lender or correspondent mortgage
2963	lender without written authorization from the office, which
2964	authorization shall be granted if the mortgage lender or
2965	correspondent mortgage lender provides the office with
2966	documentation which satisfies the requirements of s. 494.00611
2967	s. 494.0061(2)(c), s. 494.0062(2)(c), or s. 494.0065(2),
2968	whichever is applicable.
2969	(3)  If the mortgage lender or correspondent mortgage
2970	lender does not satisfy the net worth requirements within 120
2971	days the 120-day period, the license of the mortgage lender or
2972	correspondent mortgage lender shall be deemed to be relinquished
2973	and canceled and all servicing contracts shall be disposed of in
2974	a timely manner by the mortgage lender or correspondent mortgage
2975	lender.
2976	Section 54.  Section 494.0073, Florida Statutes, is amended
2977	to read:
2978	494.0073  Mortgage lender or correspondent mortgage lender
2979	when acting as a mortgage broker brokerage business.--The
2980	provision of this part Sections 494.006-494.0077 do not prohibit
2981	a mortgage lender or correspondent mortgage lender from acting
2982	as a mortgage broker brokerage business. However, in mortgage
2983	transactions in which a mortgage lender or correspondent
2984	mortgage lender acts as a mortgage broker brokerage business,
2985	the provisions of ss. 494.0038, 494.004(2) 494.004(8), 494.0042,
2986	and 494.0043(1), (2), and (3) apply.
2987	Section 55.  Section 494.0075, Florida Statutes, is amended
2988	to read:
2989	494.0075  Requirements for selling loans to
2990	noninstitutional investors.--
2991	(1)  A mortgage lender, when selling a mortgage loan to a
2992	noninstitutional investor, shall:
2993	(a)  Before any payment of money by a noninstitutional
2994	investor, provide an opinion of value from an appraiser stating
2995	the value of the security property unless the opinion is waived
2996	in writing. The opinion must state the value of the property as
2997	it exists on the date of the opinion. If any relationship exists
2998	between the lender and the appraiser, that relationship must
2999	shall be disclosed.;
3000	(b)  Provide to the noninstitutional investor a mortgagee's
3001	title insurance policy or an opinion of title by an attorney
3002	licensed to practice law in this state, or a copy thereof:
3003	1.  If a title insurance policy is issued, it must insure
3004	the noninstitutional investor against the unmarketability of the
3005	mortgagee's interest in such title. It must also specify any
3006	superior liens that exist against the property. If an opinion of
3007	title is issued by an attorney licensed to practice law in this
3008	state, the opinion must include a statement as to the
3009	marketability of the title to the property described in the
3010	mortgage and specify the priority of the mortgage being
3011	purchased.
3012	2.  If the title insurance policy or opinion of title is
3013	not available at the time of purchase, the licensee shall
3014	provide a binder of the title insurance or conditional opinion
3015	of title. This binder or opinion must include any conditions or
3016	requirements needed to be corrected before prior to the issuance
3017	of the final title policy or opinion of title. The binder or
3018	opinion must also include information concerning the
3019	requirements specified in subparagraph 1. Any conditions must be
3020	eliminated or waived in writing by the investor before prior to
3021	delivery to the noninstitutional investor. The policy or
3022	opinion, or a copy thereof, shall be delivered to the investor
3023	within a reasonable period of time, not exceeding 6 months,
3024	after purchase.
3025	3.  The requirements of this paragraph may be waived in
3026	writing. If the requirements are waived by the noninstitutional
3027	investor, the waiver must include the following wording: "The
3028	noninstitutional investor acknowledges that the mortgage lender
3029	selling this mortgage loan is not providing a title insurance
3030	policy or opinion of title issued by an attorney who is licensed
3031	to practice law in the State of Florida. Any requirement for
3032	title insurance or for a legal opinion of title is the sole
3033	responsibility of the noninstitutional mortgage purchaser."
3034	(c)  Provide, if the loan is other than a first mortgage, a
3035	statement showing the balance owed by the mortgagor on any
3036	existing mortgages prior to this investment and the status of
3037	such existing mortgages.
3038	(d)  Provide a disclosure if the licensee is directly or
3039	indirectly acting as a borrower or principal in the transaction.
3040	(2)  Each mortgage, or other instrument securing a note or
3041	assignment thereof, must shall be recorded before being
3042	delivered to the noninstitutional investor.
3043	(3)  Each mortgage and assignment shall be recorded as soon
3044	as practical, but within no later than 30 business days after
3045	the date of purchase.
3046	(4)  If the loan is to be serviced by a licensee under this
3047	part ss. 494.006-494.0077 for a noninstitutional investor, there
3048	shall be a written servicing agreement.
3049	(5)  The mortgage lender shall cause the original note to
3050	be properly endorsed showing the assignment of the note to the
3051	noninstitutional investor.
3052	Section 56.  Section 494.0077, Florida Statutes, is amended
3053	to read:
3054	494.0077  Other products and services.--This part does
3055	Sections 494.006-494.0077 do not prohibit a mortgage lender from
3056	offering, for a fee or commission, products and services in
3057	addition to those offered in conjunction with making a mortgage
3058	loan.
3059	Section 57.  Section 501.1377, Florida Statutes, is amended
3060	to read:
3061	501.1377  Violations involving homeowners during the course
3062	of residential foreclosure proceedings.--
3063	(1)  LEGISLATIVE FINDINGS AND INTENT.--The Legislature
3064	finds that homeowners who are in default on their mortgages, in
3065	foreclosure, or at risk of losing their homes due to nonpayment
3066	of taxes may be vulnerable to fraud, deception, and unfair
3067	dealings with foreclosure-rescue consultants or equity
3068	purchasers. The intent of this section is to provide a homeowner
3069	with information necessary to make an informed decision
3070	regarding the sale or transfer of his or her home to an equity
3071	purchaser. It is the further intent of this section to require
3072	that foreclosure-related rescue services agreements be expressed
3073	in writing in order to safeguard homeowners against deceit and
3074	financial hardship; to ensure, foster, and encourage fair
3075	dealing in the sale and purchase of homes in foreclosure or
3076	default; to prohibit representations that tend to mislead; to
3077	prohibit or restrict unfair contract terms; to provide a
3078	cooling-off period for homeowners who enter into contracts for
3079	services related to saving their homes from foreclosure or
3080	preserving their rights to possession of their homes; to afford
3081	homeowners a reasonable and meaningful opportunity to rescind
3082	sales to equity purchasers; and to preserve and protect home
3083	equity for the homeowners of this state.
3084	(2)  DEFINITIONS.--As used in this section, the term:
3085	(a)  "Equity purchaser" means any person who acquires a
3086	legal, equitable, or beneficial ownership interest in any
3087	residential real property as a result of a foreclosure-rescue
3088	transaction. The term does not apply to a person who acquires
3089	the legal, equitable, or beneficial interest in such property:
3090	1.  By a certificate of title from a foreclosure sale
3091	conducted under chapter 45;
3092	2.  At a sale of property authorized by statute;
3093	3.  By order or judgment of any court;
3094	4.  From a spouse, parent, grandparent, child, grandchild,
3095	or sibling of the person or the person's spouse; or
3096	5.  As a deed in lieu of foreclosure, a workout agreement,
3097	a bankruptcy plan, or any other agreement between a foreclosing
3098	lender and a homeowner.
3099	(b)  "Foreclosure-rescue consultant" means a person who
3100	directly or indirectly makes a solicitation, representation, or
3101	offer to a homeowner to provide or perform, in return for
3102	payment of money or other valuable consideration, foreclosure-
3103	related rescue services. The term does not apply to:
3104	1.  A person excluded under s. 501.212.
3105	2.  A person acting under the express authority or written
3106	approval of the United States Department of Housing and Urban
3107	Development or other department or agency of the United States
3108	or this state to provide foreclosure-related rescue services.
3109	3.  A charitable, not-for-profit agency or organization, as
3110	determined by the United States Internal Revenue Service under
3111	s. 501(c)(3) of the Internal Revenue Code, which offers
3112	counseling or advice to an owner of residential real property in
3113	foreclosure or loan default if the agency or organization does
3114	not contract for foreclosure-related rescue services with a for-
3115	profit lender or person facilitating or engaging in foreclosure-
3116	rescue transactions.
3117	4.  A person who holds or is owed an obligation secured by
3118	a lien on any residential real property in foreclosure if the
3119	person performs foreclosure-related rescue services in
3120	connection with this obligation or lien and the obligation or
3121	lien was not the result of or part of a proposed foreclosure
3122	reconveyance or foreclosure-rescue transaction.
3123	5.  A financial institution as defined in s. 655.005 and
3124	any parent or subsidiary of the financial institution or of the
3125	parent or subsidiary.
3126	6.  A licensed mortgage broker, mortgage lender, or
3127	correspondent mortgage lender that provides mortgage counseling
3128	or advice regarding residential real property in foreclosure,
3129	which counseling or advice is within the scope of services set
3130	forth in chapter 494 and is provided without payment of money or
3131	other consideration other than a mortgage brokerage fee as
3132	defined in s. 494.001.
3133	(c)  "Foreclosure-related rescue services" means any good
3134	or service related to, or promising assistance in connection
3135	with:
3136	1.  Stopping, avoiding, or delaying foreclosure proceedings
3137	concerning residential real property; or
3138	2.  Curing or otherwise addressing a default or failure to
3139	timely pay with respect to a residential mortgage loan
3140	obligation.
3141	(b)(d)  "Foreclosure-rescue transaction" means a
3142	transaction:
3143	1.  By which residential real property in foreclosure is
3144	conveyed to an equity purchaser and the homeowner maintains a
3145	legal or equitable interest in the residential real property
3146	conveyed, including, without limitation, a lease option
3147	interest, an option to acquire the property, an interest as
3148	beneficiary or trustee to a land trust, or other interest in the
3149	property conveyed; and
3150	2.  That is designed or intended by the parties to stop,
3151	avoid, or delay foreclosure proceedings against a homeowner's
3152	residential real property.
3153	(c)(e)  "Homeowner" means any record title owner of
3154	residential real property that is the subject of foreclosure
3155	proceedings.
3156	(d)(f)  "Residential real property" means real property
3157	consisting of one-family to four-family dwelling units, one of
3158	which is occupied by the owner as his or her principal place of
3159	residence.
3160	(e)(g)  "Residential real property in foreclosure" means
3161	residential real property against which there is an outstanding
3162	notice of the pendency of foreclosure proceedings recorded
3163	pursuant to s. 48.23.
3164	(3)  PROHIBITED ACTS.--In the course of offering or
3165	providing foreclosure-related rescue services, a foreclosure-
3166	rescue consultant may not:
3167	(a)  Engage in or initiate foreclosure-related rescue
3168	services without first executing a written agreement with the
3169	homeowner for foreclosure-related rescue services; or
3170	(b)  Solicit, charge, receive, or attempt to collect or
3171	secure payment, directly or indirectly, for foreclosure-related
3172	rescue services before completing or performing all services
3173	contained in the agreement for foreclosure-related rescue
3174	services.
3175	(4)  FORECLOSURE-RELATED RESCUE SERVICES; WRITTEN
3176	AGREEMENT.--
3177	(a)  The written agreement for foreclosure-related rescue
3178	services must be printed in at least 12-point uppercase type and
3179	signed by both parties. The agreement must include the name and
3180	address of the person providing foreclosure-related rescue
3181	services, the exact nature and specific detail of each service
3182	to be provided, the total amount and terms of charges to be paid
3183	by the homeowner for the services, and the date of the
3184	agreement. The date of the agreement may not be earlier than the
3185	date the homeowner signed the agreement. The foreclosure-rescue
3186	consultant must give the homeowner a copy of the agreement to
3187	review not less than 1 business day before the homeowner is to
3188	sign the agreement.
3189	(b)  The homeowner has the right to cancel the written
3190	agreement without any penalty or obligation if the homeowner
3191	cancels the agreement within 3 business days after signing the
3192	written agreement. The right to cancel may not be waived by the
3193	homeowner or limited in any manner by the foreclosure-rescue
3194	consultant. If the homeowner cancels the agreement, any payments
3195	that have been given to the foreclosure-rescue consultant must
3196	be returned to the homeowner within 10 business days after
3197	receipt of the notice of cancellation.
3198	(c)  An agreement for foreclosure-related rescue services
3199	must contain, immediately above the signature line, a statement
3200	in at least 12-point uppercase type that substantially complies
3201	with the following:
3202
3203	HOMEOWNER'S RIGHT OF CANCELLATION
3204
3205	YOU MAY CANCEL THIS AGREEMENT FOR FORECLOSURE-RELATED RESCUE
3206	SERVICES WITHOUT ANY PENALTY OR OBLIGATION WITHIN 3 BUSINESS
3207	DAYS FOLLOWING THE DATE THIS AGREEMENT IS SIGNED BY YOU.
3208
3209	THE FORECLOSURE-RESCUE CONSULTANT IS PROHIBITED BY LAW FROM
3210	ACCEPTING ANY MONEY, PROPERTY, OR OTHER FORM OF PAYMENT FROM YOU
3211	UNTIL ALL PROMISED SERVICES ARE COMPLETE. IF FOR ANY REASON YOU
3212	HAVE PAID THE CONSULTANT BEFORE CANCELLATION, YOUR PAYMENT MUST
3213	BE RETURNED TO YOU NO LATER THAN 10 BUSINESS DAYS AFTER THE
3214	CONSULTANT RECEIVES YOUR CANCELLATION NOTICE.
3215
3216	TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A STATEMENT
3217	THAT YOU ARE CANCELING THE AGREEMENT SHOULD BE MAILED
3218	(POSTMARKED) OR DELIVERED TO ...(NAME)... AT ...(ADDRESS)... NO
3219	LATER THAN MIDNIGHT OF ...(DATE)....
3220
3221	IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR LENDER OR
3222	MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT. YOUR LENDER OR
3223	MORTGAGE SERVICER MAY BE WILLING TO NEGOTIATE A PAYMENT PLAN OR
3224	A RESTRUCTURING WITH YOU FREE OF CHARGE.
3225	(d)  The inclusion of the statement does not prohibit the
3226	foreclosure-rescue consultant from giving the homeowner more
3227	time in which to cancel the agreement than is set forth in the
3228	statement, provided all other requirements of this subsection
3229	are met.
3230	(e)  The foreclosure-rescue consultant must give the
3231	homeowner a copy of the signed agreement within 3 hours after
3232	the homeowner signs the agreement.
3233	(3)(5)  FORECLOSURE-RESCUE TRANSACTIONS; WRITTEN
3234	AGREEMENT.--
3235	(a)1.  A foreclosure-rescue transaction must include a
3236	written agreement prepared in at least 12-point uppercase type
3237	that is completed, signed, and dated by the homeowner and the
3238	equity purchaser before executing any instrument from the
3239	homeowner to the equity purchaser quitclaiming, assigning,
3240	transferring, conveying, or encumbering an interest in the
3241	residential real property in foreclosure. The equity purchaser
3242	must give the homeowner a copy of the completed agreement within
3243	3 hours after the homeowner signs the agreement.
3244	1.  The agreement must contain the entire understanding of
3245	the parties and must include:
3246	a.  The name, business address, and telephone number of the
3247	equity purchaser.
3248	b.  The street address and full legal description of the
3249	property.
3250	c.  Clear and conspicuous disclosure of any financial or
3251	legal obligations of the homeowner which that will be assumed by
3252	the equity purchaser.
3253	d.  The total consideration to be paid by the equity
3254	purchaser in connection with or incident to the acquisition of
3255	the property by the equity purchaser.
3256	e.  The terms of payment or other consideration, including,
3257	but not limited to, any services that the equity purchaser
3258	represents will be performed for the homeowner before or after
3259	the sale.
3260	f.  The date and time when possession of the property is to
3261	be transferred to the equity purchaser.
3262	2.  A foreclosure-rescue transaction agreement must
3263	contain, above the signature line, a statement in at least 12-
3264	point uppercase type that substantially complies with the
3265	following:
3266
3267	I UNDERSTAND THAT UNDER THIS AGREEMENT I AM SELLING MY HOME TO
3268	THE OTHER UNDERSIGNED PARTY.
3269	3.  A foreclosure-rescue transaction agreement must state
3270	the specifications of any option or right to repurchase the
3271	residential real property in foreclosure, including the specific
3272	amounts of any escrow payments or deposit, down payment,
3273	purchase price, closing costs, commissions, or other fees or
3274	costs.
3275	4.  A foreclosure-rescue transaction agreement must comply
3276	with all applicable provisions of 15 U.S.C. ss. 1600 et seq. and
3277	related regulations.
3278	(b)  The homeowner may cancel the foreclosure-rescue
3279	transaction agreement without penalty if the homeowner notifies
3280	the equity purchaser of such cancellation no later than 5 p.m.
3281	on the 3rd business day after signing the written agreement. Any
3282	moneys paid by the equity purchaser to the homeowner or by the
3283	homeowner to the equity purchaser must be returned at
3284	cancellation. The right to cancel does not limit or otherwise
3285	affect the homeowner's right to cancel the transaction under any
3286	other law. The right to cancel may not be waived by the
3287	homeowner or limited in any way by the equity purchaser. The
3288	equity purchaser must give the homeowner, at the time the
3289	written agreement is signed, a notice of the homeowner's right
3290	to cancel the foreclosure-rescue transaction as set forth in
3291	this subsection. The notice, which must be set forth on a
3292	separate cover sheet to the written agreement that contains no
3293	other written or pictorial material, must be in at least 12-
3294	point uppercase type, double-spaced, and read as follows:
3295
3296	NOTICE TO THE HOMEOWNER/SELLER
3297
3298	PLEASE READ THIS FORM COMPLETELY AND CAREFULLY. IT CONTAINS
3299	VALUABLE INFORMATION REGARDING CANCELLATION RIGHTS.
3300
3301	BY THIS CONTRACT, YOU ARE AGREEING TO SELL YOUR HOME. YOU MAY
3302	CANCEL THIS TRANSACTION AT ANY TIME BEFORE 5:00 P.M. OF THE
3303	THIRD BUSINESS DAY FOLLOWING RECEIPT OF THIS NOTICE.
3304
3305	THIS CANCELLATION RIGHT MAY NOT BE WAIVED IN ANY MANNER BY YOU
3306	OR BY THE PURCHASER.
3307
3308	ANY MONEY PAID DIRECTLY TO YOU BY THE PURCHASER MUST BE RETURNED
3309	TO THE PURCHASER AT CANCELLATION. ANY MONEY PAID BY YOU TO THE
3310	PURCHASER MUST BE RETURNED TO YOU AT CANCELLATION.
3311
3312	TO CANCEL, SIGN THIS FORM AND RETURN IT TO THE PURCHASER BY 5:00
3313	P.M. ON ...(DATE)... AT ...(ADDRESS).... IT IS BEST TO MAIL IT
3314	BY CERTIFIED MAIL OR OVERNIGHT DELIVERY, RETURN RECEIPT
3315	REQUESTED, AND TO KEEP A PHOTOCOPY OF THE SIGNED FORM AND YOUR
3316	POST OFFICE RECEIPT.
3317
3318	I (we) hereby cancel this transaction.
3319	...Seller's Signature...
3320	...Printed Name of Seller...
3321	...Seller's Signature...
3322	...Printed Name of Seller...
3323	...Date...
3324	(c)  In any foreclosure-rescue transaction in which the
3325	homeowner has is provided the right to repurchase the
3326	residential real property, the homeowner has a 30-day right to
3327	cure any default of the terms of the contract with the equity
3328	purchaser, and this right to cure may be exercised on up to
3329	three separate occasions. The homeowner's right to cure must be
3330	included in any written agreement required by this subsection.
3331	(d)  In any foreclosure-rescue transaction, before or at
3332	the time of conveyance, the equity purchaser must fully assume
3333	or discharge any lien in foreclosure as well as any prior liens
3334	that are will not be extinguished by the foreclosure.
3335	(e)  If the homeowner has the right to repurchase the
3336	residential real property, the equity purchaser must verify and
3337	be able to demonstrate that the homeowner has or will have a
3338	reasonable ability to make the required payments to exercise the
3339	option to repurchase under the written agreement. For purposes
3340	of this subsection, there is a rebuttable presumption that the
3341	homeowner has a reasonable ability to make the payments required
3342	to repurchase the property if the homeowner's monthly payments
3343	for primary housing expenses and regular monthly principal and
3344	interest payments on other personal debt do not exceed 60
3345	percent of the homeowner's monthly gross income.
3346	(f)  If the homeowner has the right to repurchase the
3347	residential real property, the price the homeowner pays may not
3348	be unconscionable, unfair, or commercially unreasonable. A
3349	rebuttable presumption, solely between the equity purchaser and
3350	the homeowner, arises that the foreclosure-rescue transaction
3351	was unconscionable if the homeowner's repurchase price is
3352	greater than 17 percent per annum more than the total amount
3353	paid by the equity purchaser to acquire, improve, maintain, and
3354	hold the property. Unless the repurchase agreement or a
3355	memorandum of the repurchase agreement is recorded in accordance
3356	with s. 695.01, the presumption does arising under this
3357	subsection shall not apply against creditors or subsequent
3358	purchasers for a valuable consideration and without notice.
3359	(4)(6)  REBUTTABLE PRESUMPTION.--Any foreclosure-rescue
3360	transaction involving a lease option or other repurchase
3361	agreement creates a rebuttable presumption, solely between the
3362	equity purchaser and the homeowner, that the transaction is a
3363	loan transaction and the conveyance from the homeowner to the
3364	equity purchaser is a mortgage under s. 697.01. Unless the lease
3365	option or other repurchase agreement, or a memorandum of the
3366	lease option or other repurchase agreement, is recorded in
3367	accordance with s. 695.01, the presumption does created under
3368	this subsection shall not apply against creditors or subsequent
3369	purchasers for a valuable consideration and without notice.
3370	(5)(7)  VIOLATIONS.--A person who violates any provision of
3371	this section commits an unfair and deceptive trade practice as
3372	defined in part II of this chapter. Violators are subject to the
3373	penalties and remedies provided in part II of this chapter,
3374	including a monetary penalty not to exceed $15,000 per
3375	violation.
3376	Section 58.  Effective October 1, 2009:
3377	(1)  All mortgage business school permits issued pursuant
3378	to s. 494.0029, Florida Statutes, expire on September 30, 2010.
3379	(2)  All mortgage brokerage business licenses issued before
3380	October 1, 2010, pursuant to s. 494.0031 or s. 494.0032, Florida
3381	Statutes, expire December 31, 2010. However, if a person holding
3382	an active mortgage brokerage business license issued before
3383	October 1, 2010, applies for a mortgage broker license through
3384	the Nationwide Mortgage Licensing System and Registry between
3385	October 1, 2010, and December 31, 2010, the mortgage brokerage
3386	business license does not expire until the Office of Financial
3387	Regulation approves or denies the mortgage broker license
3388	application. A mortgage broker license approved on or after
3389	October 1, 2010, is effective until December 31, 2011.
3390	Application fees may not be prorated for partial years of
3391	licensure.
3392	(3)  All mortgage broker licenses issued before October 1,
3393	2010, pursuant to s. 494.0033 or s. 494.0034, Florida Statutes,
3394	expire December 31, 2010. However, if a person holding an active
3395	mortgage broker license issued before October 1, 2010, applies
3396	for a loan originator license through the Nationwide Mortgage
3397	Licensing System and Registry between October 1, 2010, and
3398	December 31, 2010, the mortgage broker license does not expire
3399	until the Office of Financial Regulation approves or denies the
3400	loan originator license application. Notwithstanding s. 120.60,
3401	Florida Statutes, for mortgage broker applications submitted
3402	between July 1, 2009, and December 31, 2009, or loan originator
3403	applications submitted between October 1, 2010, and December 31,
3404	2010, the office has 60 days to notify the applicant of any
3405	apparent errors or omissions in an application and to request
3406	any additional information that the agency may require, and the
3407	office has 180 days to approve or deny a completed application.
3408	Application fees may not be prorated for partial years of
3409	licensure.
3410	(4)  All mortgage lender licenses issued before October 1,
3411	2010, pursuant to s. 494.0061 or 494.0064, Florida Statutes,
3412	expire December 31, 2010. However, if a person holding an active
3413	mortgage lender license applies for a mortgage broker license or
3414	mortgage lender license through the Nationwide Mortgage
3415	Licensing System and Registry between October 1, 2010, and
3416	December 31, 2010, the mortgage lender license does not expire
3417	until the Office of Financial Regulation approves or denies the
3418	mortgage broker license or mortgage lender license application.
3419	Application fees may not be prorated for partial years of
3420	licensure.
3421	(5)  All mortgage lender licenses issued before October 1,
3422	2010, pursuant to s. 494.0065 or s. 494.0064, Florida Statutes,
3423	expire December 31, 2010. However, if a person holding such
3424	license applies for a mortgage broker license or mortgage lender
3425	license through the Nationwide Mortgage Licensing System and
3426	Registry between October 1, 2010, and December 31, 2010, the
3427	mortgage lender license does not expire until the Office of
3428	Financial Regulation approves or denies the mortgage broker
3429	license or mortgage lender license application. Application fees
3430	may not be prorated for partial years of licensure.
3431	(6)  All correspondent mortgage lender licenses issued
3432	before October 1, 2010, pursuant to s. 494.0062 or s. 494.0064,
3433	Florida Statutes, expire December 31, 2010. However, if a person
3434	holding an active correspondent mortgage lender license issued
3435	before October 1, 2010, applies for a mortgage broker or
3436	mortgage lender license through the Nationwide Mortgage
3437	Licensing System and Registry between October 1, 2010, and
3438	December 31, 2010, the correspondent mortgage lender license
3439	does not expire until the Office of Financial Regulation
3440	approves or denies the mortgage broker or mortgage lender
3441	license application. Application fees may not be prorated for
3442	partial years of licensure.
3443	Section 59.  Except as otherwise expressly provided in this
3444	act and except for this section, which shall take effect July 1,
3445	2009, this act shall take effect January 1, 2010.

CODING: Words stricken are deletions; words underlined are additions.