1 | A bill to be entitled |
2 | An act relating to fraud; amending s. 494.001, F.S.; |
3 | revising the definition of the term "mortgage loan |
4 | application" to conform to changes made by the act; |
5 | amending s. 494.0068, F.S.; moving language stating |
6 | that a mortgage loan application may be in writing or |
7 | electronically submitted; requiring that a mortgage |
8 | loan application contain fingerprints of the loan |
9 | originator and the borrower; requiring that the |
10 | borrower certify the accuracy of the information, that |
11 | an oral application be audio recorded, and that if the |
12 | primary language of the borrower is Spanish, the |
13 | application be on a specified application form; |
14 | amending s. 817.545, F.S.; revising classification of |
15 | certain offenses relating to mortgage fraud; providing |
16 | a period of limitation for commencing actions; |
17 | authorizing certain extensions of the limitation |
18 | period; specifying when the limitation period does not |
19 | run; providing an effective date. |
20 |
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21 | Be It Enacted by the Legislature of the State of Florida: |
22 |
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23 | Section 1. Subsection (24) of section 494.001, Florida |
24 | Statutes, is amended to read: |
25 | 494.001 Definitions.-As used in ss. 494.001-494.0077, the |
26 | term: |
27 | (24) "Mortgage loan application" means the submission of a |
28 | borrower's financial information in anticipation of a credit |
29 | decision, which includes the borrower's name, the borrower's |
30 | monthly income, the borrower's social security number to obtain |
31 | a credit report, the property address, an estimate of the value |
32 | of the property, the mortgage loan amount sought, and any other |
33 | information deemed necessary by the loan originator. An |
34 | application may be in writing or electronically submitted, |
35 | including a written record of an oral application. |
36 | Section 2. Subsection (6) is added to section 494.0068, |
37 | Florida Statutes, to read: |
38 | 494.0068 Loan application process.- |
39 | (6)(a) A mortgage loan application may be in writing or |
40 | electronically submitted, including a written record of an oral |
41 | application. |
42 | (b) The application shall include an area where the loan |
43 | originator and the borrower certify the accuracy of the |
44 | application along with a legible fingerprint of the loan |
45 | originator and the borrower. |
46 | (c) If the application is a written record of an oral |
47 | application to a mortgage lender, then the mortgage lender shall |
48 | inform the borrower that the oral application will be audio |
49 | recorded and shall record the oral application. |
50 | (d) If the primary language of the borrower is Spanish, |
51 | the application, made either in writing or orally, shall be |
52 | completed using the uniform residential loan application of the |
53 | Federal National Mortgage Association, Form 1003s or a successor |
54 | form, or the Federal Home Loan Mortgage Corporation, Form 65s or |
55 | a successor form. |
56 | Section 3. Section 817.545, Florida Statutes, is amended |
57 | to read: |
58 | 817.545 Mortgage fraud.- |
59 | (1) For the purposes of the section, the term "mortgage |
60 | lending process" means the process through which a person seeks |
61 | or obtains a residential mortgage loan, including, but not |
62 | limited to, the solicitation, application or origination, |
63 | negotiation of terms, third-party provider services, |
64 | underwriting, signing and closing, and funding of the loan. |
65 | Documents involved in the mortgage lending process include, but |
66 | are not limited to, mortgages, deeds, surveys, inspection |
67 | reports, uniform residential loan applications, or other loan |
68 | applications; appraisal reports; HUD-1 settlement statements; |
69 | supporting personal documentation for loan applications such as |
70 | W-2 forms, verifications of income and employment, credit |
71 | reports, bank statements, tax returns, and payroll stubs; and |
72 | any required disclosures. |
73 | (2) A person commits the offense of mortgage fraud if, |
74 | with the intent to defraud, the person knowingly: |
75 | (a) Makes any material misstatement, misrepresentation, or |
76 | omission during the mortgage lending process with the intention |
77 | that the misstatement, misrepresentation, or omission will be |
78 | relied on by a mortgage lender, borrower, or any other person or |
79 | entity involved in the mortgage lending process; however, |
80 | omissions on a loan application regarding employment, income, or |
81 | assets for a loan which does not require this information are |
82 | not considered a material omission for purposes of this |
83 | subsection. |
84 | (b) Uses or facilitates the use of any material |
85 | misstatement, misrepresentation, or omission during the mortgage |
86 | lending process with the intention that the material |
87 | misstatement, misrepresentation, or omission will be relied on |
88 | by a mortgage lender, borrower, or any other person or entity |
89 | involved in the mortgage lending process; however, omissions on |
90 | a loan application regarding employment, income, or assets for a |
91 | loan which does not require this information are not considered |
92 | a material omission for purposes of this subsection. |
93 | (c) Receives any proceeds or any other funds in connection |
94 | with the mortgage lending process that the person knew resulted |
95 | from a violation of paragraph (a) or paragraph (b). |
96 | (d) Files or causes to be filed with the clerk of the |
97 | circuit court for any county of this state a document involved |
98 | in the mortgage lending process which contains a material |
99 | misstatement, misrepresentation, or omission. |
100 | (3) An offense of mortgage fraud may not be predicated |
101 | solely upon information lawfully disclosed under federal |
102 | disclosure laws, regulations, or interpretations related to the |
103 | mortgage lending process. |
104 | (4) For the purpose of venue under this section, any |
105 | violation of this section is considered to have been committed: |
106 | (a) In the county in which the real property is located; |
107 | or |
108 | (b) In any county in which a material act was performed in |
109 | furtherance of the violation. |
110 | (5)(a) Any person who violates subsection (2), and the |
111 | loan value stated on documents used in the mortgage lending |
112 | process is: |
113 | (a) Less than $20,000, commits a felony of the third |
114 | degree, punishable as provided in s. 775.082, s. 775.083, or s. |
115 | 775.084. |
116 | (b) Equal to or more than $20,000 but less than Any person |
117 | who violates subsection (2), and the loan value stated on |
118 | documents used in the mortgage lending process exceeds $100,000, |
119 | commits a felony of the second degree, punishable as provided in |
120 | s. 775.082, s. 775.083, or s. 775.084. |
121 | (c) Equal to or more than $100,000, commits a felony of |
122 | the first degree, punishable as provided in s. 775.082, s. |
123 | 775.083, or s. 775.084. |
124 | (6)(a) Notwithstanding any other provision of law, a |
125 | prosecution under this section may be commenced at any time |
126 | within 5 years after the offense is committed. However, this |
127 | time period may be extended for 1 year after discovery of the |
128 | offense by an aggrieved party or by a person who has a legal |
129 | duty to represent an aggrieved party and who is himself or |
130 | herself not a party to the offense. In no case may this |
131 | paragraph extend the period of limitation by more than 3 years |
132 | beyond what is otherwise provided by law. |
133 | (b) The period of limitation does not run during any time |
134 | when the defendant is continuously absent from the state or is |
135 | without a reasonably ascertainable place of abode or work within |
136 | the state, but this shall not extend the period of limitation |
137 | otherwise applicable by more than 1 year. This paragraph does |
138 | not limit the prosecution of a defendant who has been timely |
139 | charged by indictment or information or other charging document |
140 | and who has not been arrested due to his or her absence from |
141 | this state or has not been extradited for prosecution from |
142 | another state. |
143 | Section 4. This act shall take effect October 1, 2012. |