| 1 | A bill to be entitled |
| 2 | An act relating to loan origination; amending s. |
| 3 | 494.00255, F.S.; reenacting a reference to certain federal |
| 4 | laws for purposes of incorporating rules adopted under |
| 5 | such laws; specifying application of disciplinary |
| 6 | procedures to principal loan originators for actions of |
| 7 | loan originators; amending s. 494.00331, F.S.; specifying |
| 8 | nonapplication of certain limitations to licensed loan |
| 9 | originators operating solely as loan processors; providing |
| 10 | a definition; prohibiting acting as a loan processor |
| 11 | unless licensed as a loan originator; requiring a |
| 12 | declaration of intent to engage solely in loan processing; |
| 13 | authorizing withdrawal of a declaration of intent; |
| 14 | authorizing payment of a loan processor's fee without |
| 15 | violating certain restrictions; amending s. 494.0038, |
| 16 | F.S.; revising requirements relating to a good faith |
| 17 | estimate by a loan originator; requiring a disclosure |
| 18 | document to be signed and dated by the borrower; providing |
| 19 | an effective date. |
| 20 | |
| 21 | Be It Enacted by the Legislature of the State of Florida: |
| 22 | |
| 23 | Section 1. Paragraph (m) of subsection (1) of section |
| 24 | 494.00255, Florida Statutes, is reenacted, and subsection (5) of |
| 25 | that section is amended, to read: |
| 26 | 494.00255 Administrative penalties and fines; license |
| 27 | violations.- |
| 28 | (1) Each of the following acts constitutes a ground for |
| 29 | which the disciplinary actions specified in subsection (2) may |
| 30 | be taken against a person licensed or required to be licensed |
| 31 | under part II or part III of this chapter: |
| 32 | (m) In any mortgage transaction, violating any provision |
| 33 | of the federal Real Estate Settlement Procedures Act, as |
| 34 | amended, 12 U.S.C. ss. 2601 et seq.; the federal Truth in |
| 35 | Lending Act, as amended, 15 U.S.C. ss. 1601 et seq.; or any |
| 36 | regulations adopted under such acts. |
| 37 | (5) A principal loan originator of a mortgage lender is |
| 38 | subject to the disciplinary actions specified in subsection (2) |
| 39 | for violations of subsection (1) by a loan originator an |
| 40 | associate of a mortgage lender if there is a pattern of repeated |
| 41 | violations by the loan originator associate or if the principal |
| 42 | loan originator has knowledge of the violations. |
| 43 | Section 2. Section 494.00331, Florida Statutes, as amended |
| 44 | by chapter 2009-241, Laws of Florida, is amended to read: |
| 45 | 494.00331 Loan originator employment.- |
| 46 | (1) An individual may not act as a loan originator unless |
| 47 | he or she is an employee of, or an independent contractor for, a |
| 48 | mortgage broker or a mortgage lender, and may not be employed by |
| 49 | or contract with more than one mortgage broker or mortgage |
| 50 | lender, or either simultaneously. However, this provision does |
| 51 | not apply to any licensed loan originator who acts solely as a |
| 52 | loan processor and contracts with more than one mortgage broker |
| 53 | or mortgage lender, or either simultaneously. |
| 54 | (2) For purposes of this section, the term "loan |
| 55 | processor" means an individual who is licensed as a loan |
| 56 | originator who engages only in: |
| 57 | (a) The receipt, collection, distribution, and analysis of |
| 58 | information common for the processing or underwriting of a |
| 59 | residential mortgage loan; or |
| 60 | (b) Communication with consumers to obtain the information |
| 61 | necessary for the processing or underwriting of a loan, to the |
| 62 | extent that such communication does not include offering or |
| 63 | negotiating loan rates or terms or does not include counseling |
| 64 | consumers about residential mortgage loan rates or terms. |
| 65 | (3) A person may not act as a loan processor unless the |
| 66 | person is licensed as a loan originator under this chapter and |
| 67 | has on file with the office a declaration of intent to engage |
| 68 | solely in loan processing. The declaration of intent must be on |
| 69 | such form as prescribed by the commission by rule. |
| 70 | (4) A loan originator that currently has a declaration of |
| 71 | intent to engage solely in loan processing on file with the |
| 72 | office may withdraw his or her declaration of intent to engage |
| 73 | solely in loan processing. The withdrawal of declaration of |
| 74 | intent must on such form as prescribed by commission rule. |
| 75 | (5) A declaration of intent or a withdrawal of declaration |
| 76 | of intent is effective upon receipt by the office. |
| 77 | (6) The fee earned by a loan processor may be paid to the |
| 78 | company that employs the loan processor without violating the |
| 79 | restriction in s. 494.0025(7) requiring fees or commissions to |
| 80 | be paid to a licensed mortgage broker or mortgage lender or a |
| 81 | person exempt from licensure under this chapter. |
| 82 | Section 3. Paragraph (c) of subsection (3) of section |
| 83 | 494.0038, Florida Statutes, as amended by chapter 2009-241, Laws |
| 84 | of Florida, is amended to read: |
| 85 | 494.0038 Loan origination and mortgage broker fees and |
| 86 | disclosures.- |
| 87 | (3) At the time a written mortgage broker agreement is |
| 88 | signed by the borrower or forwarded to the borrower for |
| 89 | signature, or at the time the mortgage broker business accepts |
| 90 | an application fee, credit report fee, property appraisal fee, |
| 91 | or any other third-party fee, but at least 3 business days |
| 92 | before execution of the closing or settlement statement, the |
| 93 | mortgage broker shall disclose in writing to any applicant for a |
| 94 | mortgage loan the following information: |
| 95 | (c) A good faith estimate, signed and dated by the |
| 96 | borrower, which discloses the total amount of each of the fees |
| 97 | the borrower may reasonably expect to pay if the loan is closed, |
| 98 | including, but not limited to, fees earned by the mortgage |
| 99 | broker, lender fees, third-party fees, and official fees, |
| 100 | together with the terms and conditions for obtaining a refund of |
| 101 | such fees, if any. |
| 102 | 1. Any amount collected in excess of the actual cost shall |
| 103 | be returned within 60 days after rejection, withdrawal, or |
| 104 | closing. |
| 105 | 2. At the time a The good faith estimate is provided to |
| 106 | the borrower, the loan originator must identify in writing the |
| 107 | recipient of all payments charged the borrower, which and, |
| 108 | except for all fees to be received by the mortgage broker, may |
| 109 | be disclosed in generic terms, such as, but not limited to, paid |
| 110 | to lender, appraiser, officials, title company, or any other |
| 111 | third-party service provider. This requirement does not supplant |
| 112 | or is not a substitute for the written mortgage broker agreement |
| 113 | described in subsection (1). The disclosure required under this |
| 114 | subparagraph must be signed and dated by the borrower. |
| 115 | Section 4. This act shall take effect October 1, 2010. |