HB 327

1
A bill to be entitled
2An act relating to fraud; amending s. 494.001, F.S.;
3revising the definition of the term "mortgage loan
4application" to conform to changes made by the act;
5amending s. 494.0068, F.S.; moving language stating
6that a mortgage loan application may be in writing or
7electronically submitted; requiring that a mortgage
8loan application contain fingerprints of the loan
9originator and the borrower; requiring that the
10borrower certify the accuracy of the information, that
11an oral application be audio recorded, and that if the
12primary language of the borrower is Spanish, the
13application be on a specified application form;
14amending s. 817.545, F.S.; revising classification of
15certain offenses relating to mortgage fraud; providing
16a period of limitation for commencing actions;
17authorizing certain extensions of the limitation
18period; specifying when the limitation period does not
19run; providing an effective date.
20
21Be It Enacted by the Legislature of the State of Florida:
22
23     Section 1.  Subsection (24) of section 494.001, Florida
24Statutes, is amended to read:
25     494.001  Definitions.-As used in ss. 494.001-494.0077, the
26term:
27     (24)  "Mortgage loan application" means the submission of a
28borrower's financial information in anticipation of a credit
29decision, which includes the borrower's name, the borrower's
30monthly income, the borrower's social security number to obtain
31a credit report, the property address, an estimate of the value
32of the property, the mortgage loan amount sought, and any other
33information deemed necessary by the loan originator. An
34application may be in writing or electronically submitted,
35including a written record of an oral application.
36     Section 2.  Subsection (6) is added to section 494.0068,
37Florida Statutes, to read:
38     494.0068  Loan application process.-
39     (6)(a)  A mortgage loan application may be in writing or
40electronically submitted, including a written record of an oral
41application.
42     (b)  The application shall include an area where the loan
43originator and the borrower certify the accuracy of the
44application along with a legible fingerprint of the loan
45originator and the borrower.
46     (c)  If the application is a written record of an oral
47application to a mortgage lender, then the mortgage lender shall
48inform the borrower that the oral application will be audio
49recorded and shall record the oral application.
50     (d)  If the primary language of the borrower is Spanish,
51the application, made either in writing or orally, shall be
52completed using the uniform residential loan application of the
53Federal National Mortgage Association, Form 1003s or a successor
54form, or the Federal Home Loan Mortgage Corporation, Form 65s or
55a successor form.
56     Section 3.  Section 817.545, Florida Statutes, is amended
57to read:
58     817.545  Mortgage fraud.-
59     (1)  For the purposes of the section, the term "mortgage
60lending process" means the process through which a person seeks
61or obtains a residential mortgage loan, including, but not
62limited to, the solicitation, application or origination,
63negotiation of terms, third-party provider services,
64underwriting, signing and closing, and funding of the loan.
65Documents involved in the mortgage lending process include, but
66are not limited to, mortgages, deeds, surveys, inspection
67reports, uniform residential loan applications, or other loan
68applications; appraisal reports; HUD-1 settlement statements;
69supporting personal documentation for loan applications such as
70W-2 forms, verifications of income and employment, credit
71reports, bank statements, tax returns, and payroll stubs; and
72any required disclosures.
73     (2)  A person commits the offense of mortgage fraud if,
74with the intent to defraud, the person knowingly:
75     (a)  Makes any material misstatement, misrepresentation, or
76omission during the mortgage lending process with the intention
77that the misstatement, misrepresentation, or omission will be
78relied on by a mortgage lender, borrower, or any other person or
79entity involved in the mortgage lending process; however,
80omissions on a loan application regarding employment, income, or
81assets for a loan which does not require this information are
82not considered a material omission for purposes of this
83subsection.
84     (b)  Uses or facilitates the use of any material
85misstatement, misrepresentation, or omission during the mortgage
86lending process with the intention that the material
87misstatement, misrepresentation, or omission will be relied on
88by a mortgage lender, borrower, or any other person or entity
89involved in the mortgage lending process; however, omissions on
90a loan application regarding employment, income, or assets for a
91loan which does not require this information are not considered
92a material omission for purposes of this subsection.
93     (c)  Receives any proceeds or any other funds in connection
94with the mortgage lending process that the person knew resulted
95from a violation of paragraph (a) or paragraph (b).
96     (d)  Files or causes to be filed with the clerk of the
97circuit court for any county of this state a document involved
98in the mortgage lending process which contains a material
99misstatement, misrepresentation, or omission.
100     (3)  An offense of mortgage fraud may not be predicated
101solely upon information lawfully disclosed under federal
102disclosure laws, regulations, or interpretations related to the
103mortgage lending process.
104     (4)  For the purpose of venue under this section, any
105violation of this section is considered to have been committed:
106     (a)  In the county in which the real property is located;
107or
108     (b)  In any county in which a material act was performed in
109furtherance of the violation.
110     (5)(a)  Any person who violates subsection (2), and the
111loan value stated on documents used in the mortgage lending
112process is:
113     (a)  Less than $20,000, commits a felony of the third
114degree, punishable as provided in s. 775.082, s. 775.083, or s.
115775.084.
116     (b)  Equal to or more than $20,000 but less than Any person
117who violates subsection (2), and the loan value stated on
118documents used in the mortgage lending process exceeds $100,000,
119commits a felony of the second degree, punishable as provided in
120s. 775.082, s. 775.083, or s. 775.084.
121     (c)  Equal to or more than $100,000, commits a felony of
122the first degree, punishable as provided in s. 775.082, s.
123775.083, or s. 775.084.
124     (6)(a)  Notwithstanding any other provision of law, a
125prosecution under this section may be commenced at any time
126within 5 years after the offense is committed. However, this
127time period may be extended for 1 year after discovery of the
128offense by an aggrieved party or by a person who has a legal
129duty to represent an aggrieved party and who is himself or
130herself not a party to the offense. In no case may this
131paragraph extend the period of limitation by more than 3 years
132beyond what is otherwise provided by law.
133     (b)  The period of limitation does not run during any time
134when the defendant is continuously absent from the state or is
135without a reasonably ascertainable place of abode or work within
136the state, but this shall not extend the period of limitation
137otherwise applicable by more than 1 year. This paragraph does
138not limit the prosecution of a defendant who has been timely
139charged by indictment or information or other charging document
140and who has not been arrested due to his or her absence from
141this state or has not been extradited for prosecution from
142another state.
143     Section 4.  This act shall take effect October 1, 2012.


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