Florida Senate - 2014 COMMITTEE AMENDMENT
Bill No. SB 666
Ì956228<Î956228
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/05/2014 .
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recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Present subsections (12) through (36) of section
6 494.001, Florida Statutes, are redesignated as subsections (13)
7 through (37), respectively, a new subsection (12) is added to
8 that section, and present subsection (15) of that section is
9 amended, to read:
10 494.001 Definitions.—As used in ss. 494.001-494.0077, the
11 term:
12 (12) “Indirect owner” means, with respect to direct and
13 indirect owners in a multilayered organization:
14 (a) If an owner is a corporation, each of its shareholders
15 that beneficially owns, has the right to vote, or has the power
16 to sell or direct the sale of 25 percent or more of voting
17 security of the corporation.
18 (b) If an owner is a partnership, all general partners and
19 those limited and special partners that have the right to
20 receive upon dissolution, or have contributed, 25 percent or
21 more of the partnership’s capital.
22 (c) If an owner is a trust, the trust and each trustee.
23 (d) If an owner is a limited liability company:
24 1. Those members that have the right to receive upon
25 dissolution, or have contributed, 25 percent or more of the
26 limited liability corporation’s capital; and
27 2. If managed by elected managers or appointed managers,
28 all elected or appointed managers.
29 (e) If an indirect owner, the parent owners of 25 percent
30 or more of their subsidiary.
31 (16)(15) “Loan origination fee” means the total
32 compensation from any source received by a mortgage broker
33 acting as a loan originator. Any payment for processing mortgage
34 loan applications must be included in the fee and must be paid
35 to the mortgage broker.
36 Section 2. Subsection (4) is added to section 494.0012,
37 Florida Statutes, to read:
38 494.0012 Investigations; complaints; examinations.—
39 (4) In order to reduce the burden on persons subject to
40 regulation under this chapter, the office may conduct a joint or
41 concurrent examination with any state or federal regulatory
42 agency and may furnish a copy of all examinations to an
43 appropriate regulator if the regulator agrees to abide by the
44 confidentiality requirements applicable to such examinations,
45 which are provided pursuant to chapter 119 and this chapter. The
46 office may also accept an examination from an appropriate
47 regulator.
48 Section 3. Present paragraphs (m) through (x) of subsection
49 (1) of section 494.00255, Florida Statutes, are redesignated as
50 paragraphs (n) through (y), respectively, and new paragraphs (m)
51 and (z) are added to that subsection, to read:
52 494.00255 Administrative penalties and fines; license
53 violations.—
54 (1) Each of the following acts constitutes a ground for
55 which the disciplinary actions specified in subsection (2) may
56 be taken against a person licensed or required to be licensed
57 under part II or part III of this chapter:
58 (m) In any mortgage transaction, violating any provision of
59 the federal Real Estate Settlement Procedures Act, as amended,
60 12 U.S.C. ss. 2601 et seq.; the federal Truth in Lending Act, as
61 amended, 15 U.S.C. ss. 1601 et seq.; or any regulations adopted
62 under such acts.
63 (z) Pursuant to an investigation by the Mortgage Testing
64 and Education Board acting on behalf of the registry, being
65 found in violation of the Nationwide Mortgage Licensing System
66 and Registry Rules of Conduct.
67 Section 4. Section 494.00313, Florida Statutes, is amended
68 to read:
69 494.00313 Loan originator license renewal.—
70 (1) In order to annually renew a loan originator license, a
71 loan originator must, by December 31:
72 (a) Submit a completed license renewal form as prescribed
73 by commission rule.
74 (b) Submit a nonrefundable renewal fee of $150, the $20
75 nonrefundable fee if required by s. 494.00172, and nonrefundable
76 fees to cover the cost of further fingerprint processing and
77 retention as prescribed by set forth in commission rule.
78 (c) Provide documentation of completion of at least 8 hours
79 of continuing education in courses reviewed and approved by the
80 registry.
81 (d) Authorize the registry to obtain an independent credit
82 report on the licensee from a consumer reporting agency, and
83 transmit or provide access to the report to the office. The cost
84 of the credit report shall be borne by the licensee.
85 (e) Submit any additional information or documentation
86 requested by the office and required by rule concerning the
87 licensee. Additional information may include documentation of
88 pending and prior disciplinary and criminal history events,
89 including arrest reports and certified copies of charging
90 documents, plea agreements, judgments and sentencing documents,
91 documents relating to pretrial intervention, orders terminating
92 probation or supervised release, final administrative agency
93 orders, or other comparable documents that may provide the
94 office with the appropriate information to determine eligibility
95 for renewal of licensure.
96 (2) The office may not renew a loan originator license
97 unless the loan originator continues to meet the minimum
98 requirements for initial licensure pursuant to s. 494.00312 and
99 adopted rule.
100 (3) A licensed loan originator who fails to meet the
101 requirements under this section for annual license renewal on or
102 before December 31, but who meets such requirements after
103 December 31 but before March 1, shall have such license status
104 changed to “failed to renew” pending review and renewal by the
105 office. A nonrefundable reinstatement fee of $150 shall be
106 charged in addition to and apart from any registry fees. The
107 license status may not be changed until the requirements of this
108 section have been met and all fees have been paid. If the
109 licensee fails to submit the required information and pay the
110 required fees by March 1, such license is expired and such
111 individual must apply for a new loan originator license under s.
112 494.00312.
113 Section 5. Section 494.00322, Florida Statutes, is amended
114 to read:
115 494.00322 Mortgage broker license renewal.—
116 (1) In order to annually renew a mortgage broker license, a
117 mortgage broker must, by December 31:
118 (a) Submit a completed license renewal form as prescribed
119 by commission rule.
120 (b) Submit a nonrefundable renewal fee of $375, the $100
121 nonrefundable fee if required by s. 494.00172, and nonrefundable
122 fees to cover the cost of further fingerprint processing and
123 retention as prescribed by set forth in commission rule.
124 (c) Submit fingerprints in accordance with s.
125 494.00321(2)(d) for any new control persons who have not been
126 screened.
127 (d) Authorize the registry to obtain an independent credit
128 report on each of the licensee’s control persons from a consumer
129 reporting agency, and transmit or provide access to the report
130 to the office. The cost of the credit report shall be borne by
131 the licensee.
132 (e) Submit any additional information or documentation
133 requested by the office and required by rule concerning the
134 licensee or a control person of the licensee. Additional
135 information may include documentation of pending and prior
136 disciplinary and criminal history events, including arrest
137 reports and certified copies of charging documents, plea
138 agreements, judgments and sentencing documents, documents
139 relating to pretrial intervention, orders terminating probation
140 or supervised release, final administrative agency orders, or
141 other comparable documents that may provide the office with the
142 appropriate information to determine eligibility for renewal of
143 licensure.
144 (2) The office may not renew a mortgage broker license
145 unless the licensee continues to meet the minimum requirements
146 for initial licensure pursuant to s. 494.00321 and adopted rule.
147 (3) A licensed mortgage broker that fails to meet the
148 requirements under this section for annual license renewal on or
149 before December 31, but that meets such requirements after
150 December 31 but before March 1, shall have such license status
151 changed to “failed to renew” pending review and renewal by the
152 office. A nonrefundable reinstatement fee of $250 shall be
153 charged in addition to and apart from any registry fees. The
154 license status may not be changed until the requirements of this
155 section have been met and all fees have been paid. If the
156 licensee fails to submit the required information and pay the
157 required fees by March 1, such license is expired and such
158 person must apply for a new mortgage broker license under s.
159 494.00321.
160 Section 6. Section 494.0036, Florida Statutes, is amended
161 to read:
162 494.0036 Mortgage broker branch office license and license
163 renewal.—
164 (1) Each branch office of a mortgage broker must be
165 licensed under this section.
166 (2) The office shall issue a mortgage broker branch office
167 license to a mortgage broker licensee after the office
168 determines that the licensee has submitted a completed
169 application for a branch office in a form prescribed by
170 commission rule and payment of an initial nonrefundable branch
171 office license fee of $225 per branch office. Application fees
172 may not be prorated for partial years of licensure. The branch
173 office license shall be issued in the name of the mortgage
174 broker that maintains the branch office. An application is
175 considered received for purposes of s. 120.60 upon receipt of a
176 completed application form as prescribed by commission rule, and
177 the required fees.
178 (3) A mortgage broker branch office license must be renewed
179 annually at the time of renewing the mortgage broker license
180 under s. 494.00322.
181 (a) In order to renew a branch office license, a mortgage
182 broker must, by December 31:
183 1. Submit a completed license renewal form as prescribed by
184 commission rule.
185 2. Submit a nonrefundable branch renewal fee of $225 per
186 branch office must be submitted at the time of renewal.
187 3. Submit additional information or documentation requested
188 by the office and required by rule concerning the licensee.
189 Additional information may include documents that may assist the
190 office in determining the applicant’s eligibility for licensure
191 renewal.
192 (b) The office may not renew a branch office license unless
193 the mortgage broker continues to meet the minimum requirements
194 for initial licensure pursuant to subsection (2) and commission
195 rule.
196 (c) A licensed branch office that fails to meet the
197 requirements under this section for annual license renewal on or
198 before December 31, but that meets such requirements after
199 December 31 but before March 1, shall have such license status
200 changed to “failed to renew” pending review and renewal by the
201 office. A nonrefundable reinstatement fee of $225 shall be
202 charged in addition to and apart from any registry fees. The
203 license status may not be changed until the requirements of this
204 section have been met and all fees have been paid. If the
205 licensee fails to submit the required information and pay the
206 required fees by March 1, such license is expired and the
207 mortgage broker licensee must apply for a new mortgage broker
208 branch office license under subsection (2).
209 Section 7. Section 494.0038, Florida Statutes, is amended
210 to read:
211 494.0038 Loan origination and Mortgage broker fees and
212 commissions disclosures.—
213 (1) A loan origination fee may not be paid except pursuant
214 to a written mortgage broker agreement between the mortgage
215 broker and the borrower which is signed and dated by the
216 principal loan originator or branch manager, and the borrower.
217 The unique registry identifier of each loan originator
218 responsible for providing loan originator services must be
219 printed on the mortgage broker agreement.
220 (a) The written mortgage broker agreement must describe the
221 services to be provided by the mortgage broker and specify the
222 amount and terms of the loan origination fee that the mortgage
223 broker is to receive.
224 1. Except for application and third-party fees, all fees
225 received by a mortgage broker from a borrower must be identified
226 as a loan origination fee.
227 2. All fees on the mortgage broker agreement must be
228 disclosed in dollar amounts.
229 3. All loan origination fees must be paid to a mortgage
230 broker.
231 (b) The agreement must be executed within 3 business days
232 after a mortgage loan application is accepted if the borrower is
233 present when the mortgage loan application is accepted. If the
234 borrower is not present, the licensee shall forward the
235 agreement to the borrower within 3 business days after the
236 licensee’s acceptance of the application and the licensee bears
237 the burden of proving that the borrower received and approved
238 the agreement.
239 (2) If the mortgage broker is to receive any payment of any
240 kind from the mortgage lender, the maximum total dollar amount
241 of the payment must be disclosed to the borrower in the written
242 mortgage broker agreement as described in paragraph (1)(a). The
243 commission may prescribe by rule an acceptable form for
244 disclosure of brokerage fees received from the lender. The
245 agreement must state the nature of the relationship with the
246 lender, describe how compensation is paid by the lender, and
247 describe how the mortgage interest rate affects the compensation
248 paid to the mortgage broker.
249 (a) The exact amount of any payment of any kind by the
250 lender to the mortgage broker must be disclosed in writing to
251 the borrower within 3 business days after the mortgage broker is
252 made aware of the exact amount of the payment from the lender
253 but not less than 3 business days before the execution of the
254 closing or settlement statement. The licensee bears the burden
255 of proving such notification was provided to the borrower.
256 Notification is waived if the exact amount of the payment is
257 accurately disclosed in the written mortgage broker agreement.
258 (b) The commission may prescribe by rule the form of
259 disclosure of brokerage fees.
260 (3) At the time a written mortgage broker agreement is
261 signed by the borrower or forwarded to the borrower for
262 signature, or at the time the mortgage broker business accepts
263 an application fee, credit report fee, property appraisal fee,
264 or any other third-party fee, but at least 3 business days
265 before execution of the closing or settlement statement, the
266 mortgage broker shall disclose in writing to any applicant for a
267 mortgage loan the following information:
268 (a) That the mortgage broker may not make mortgage loans or
269 commitments. The mortgage broker may make a commitment and may
270 furnish a lock-in of the rate and program on behalf of the
271 lender if the mortgage broker has obtained a written commitment
272 or lock-in for the loan from the lender on behalf of the
273 borrower for the loan. The commitment must be in the same form
274 and substance as issued by the lender.
275 (b) That the mortgage broker cannot guarantee acceptance
276 into any particular loan program or promise any specific loan
277 terms or conditions.
278 (c) A good faith estimate that discloses settlement charges
279 and loan terms.
280 1. Any amount collected in excess of the actual cost shall
281 be returned within 60 days after rejection, withdrawal, or
282 closing.
283 2. At the time a good faith estimate is provided to the
284 borrower, the loan originator must identify in writing an
285 itemized list that provides the recipient of all payments
286 charged the borrower, which, except for all fees to be received
287 by the mortgage broker, may be disclosed in generic terms, such
288 as, but not limited to, paid to lender, appraiser, officials,
289 title company, or any other third-party service provider. This
290 requirement does not supplant or is not a substitute for the
291 written mortgage broker agreement described in subsection (1).
292 The disclosure required under this subparagraph must be signed
293 and dated by the borrower.
294 (4) The disclosures required by this subsection must be
295 furnished in writing at the time an adjustable rate mortgage
296 loan is offered to the borrower and whenever the terms of the
297 adjustable rate mortgage loan offered materially change prior to
298 closing. The mortgage broker shall furnish the disclosures
299 relating to adjustable rate mortgages in a format prescribed by
300 ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
301 of the Federal Reserve System, as amended; its commentary, as
302 amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
303 1601 et seq., as amended; together with the Consumer Handbook on
304 Adjustable Rate Mortgages, as amended; published by the Federal
305 Reserve Board and the Federal Home Loan Bank Board. The licensee
306 bears the burden of proving such disclosures were provided to
307 the borrower.
308 (5) If the mortgage broker agreement includes a
309 nonrefundable application fee, the following requirements are
310 applicable:
311 (a) The amount of the application fee, which must be
312 clearly denominated as such, must be clearly disclosed.
313 (b) The specific services that will be performed in
314 consideration for the application fee must be disclosed.
315 (c) The application fee must be reasonably related to the
316 services to be performed and may not be based upon a percentage
317 of the principal amount of the loan or the amount financed.
318 (6) A mortgage broker may not accept any fee in connection
319 with a mortgage loan other than an application fee, credit
320 report fee, property appraisal fee, or other third-party fee
321 before obtaining a written commitment from a qualified lender.
322 (1)(7) A Any third-party fee entrusted to a mortgage broker
323 must immediately, upon receipt, be placed into a segregated
324 account with a financial institution located in the state the
325 accounts of which are insured by the Federal Government. Such
326 funds shall be held in trust for the payor and shall be kept in
327 the account until disbursement. Such funds may be placed in one
328 account if adequate accounting measures are taken to identify
329 the source of the funds.
330 (2)(8) A mortgage broker may not pay a commission to a any
331 person not licensed pursuant to this chapter.
332 (3)(9) This section does not prohibit a mortgage broker
333 from offering products and services, in addition to those
334 offered in conjunction with the loan origination process, for a
335 fee or commission.
336 Section 8. Subsections (2), (3), and (4) of section
337 494.004, Florida Statutes, are amended to read:
338 494.004 Requirements of licensees.—
339 (2) In every mortgage loan transaction, each licensee under
340 this part must notify a borrower of any material changes in the
341 terms of a mortgage loan previously offered to the borrower
342 within 3 business days after being made aware of such changes by
343 the mortgage lender but at least 3 business days before the
344 signing of the settlement or closing statement. The licensee
345 bears the burden of proving such notification was provided and
346 accepted by the borrower. A borrower may waive the right to
347 receive notice of a material change if the borrower determines
348 that the extension of credit is needed to meet a bona fide
349 personal financial emergency and the right to receive notice
350 would delay the closing of the mortgage loan. The imminent sale
351 of the borrower’s home at foreclosure during the 3-day period
352 before the signing of the settlement or closing statement is an
353 example of a bona fide personal financial emergency. In order to
354 waive the borrower’s right to receive notice, the borrower must
355 provide the licensee with a dated written statement that
356 describes the personal financial emergency, waives the right to
357 receive the notice, bears the borrower’s signature, and is not
358 on a printed form prepared by the licensee for the purpose of
359 such a waiver.
360 (2)(3) Each mortgage broker shall submit to the registry
361 reports of condition, which must be in such form and shall
362 contain such information as the registry may require. The
363 commission may prescribe by rule the deadline by which a
364 mortgage broker must file a report of condition. For purposes of
365 this section, the report of condition is synonymous with the
366 registry’s Mortgage Call Report.
367 (3)(4) A license issued under this part is not transferable
368 or assignable.
369 Section 9. Subsection (3) of section 494.0042, Florida
370 Statutes, is amended to read:
371 494.0042 Loan origination fees.—
372 (3) At the time of accepting a mortgage loan application, a
373 mortgage broker may receive from the borrower a nonrefundable
374 application fee. If the mortgage loan is funded, the
375 nonrefundable application fee shall be credited against the
376 amount owed as a result of the loan being funded. A person may
377 not receive any form of compensation for acting as a loan
378 originator other than a nonrefundable application fee or, a fee
379 based on the mortgage amount being funded, or a fee which
380 complies with s. 494.00421.
381 Section 10. Section 494.00421, Florida Statutes, is
382 repealed.
383 Section 11. Paragraph (b) of subsection (2) of section
384 494.00611, Florida Statutes, is amended to read:
385 494.00611 Mortgage lender license.—
386 (2) In order to apply for a mortgage lender license, an
387 applicant must:
388 (b) Designate a qualified principal loan originator who
389 meets the requirements of s. 494.00665 s.494.0035 on the
390 application form.
391 Section 12. Section 494.00612, Florida Statutes, is amended
392 to read:
393 494.00612 Mortgage lender license renewal.—
394 (1) In order to annually renew a mortgage lender license, a
395 mortgage lender must, by December 31:
396 (a) Submit a completed license renewal form as prescribed
397 by commission rule.
398 (b) Submit a nonrefundable renewal fee of $475, the $100
399 nonrefundable fee if required by s. 494.00172, and nonrefundable
400 fees to cover the cost of further fingerprint processing and
401 retention as prescribed by set forth in commission rule.
402 (c) Submit fingerprints in accordance with s.
403 494.00611(2)(d) for any new control persons who have not been
404 screened.
405 (d) Provide proof that the mortgage lender continues to
406 meet the applicable net worth requirement in a form prescribed
407 by commission rule.
408 (e) Authorize the registry to obtain an independent credit
409 report on each of the mortgage lender’s control persons from a
410 consumer reporting agency, and transmit or provide access to the
411 report to the office. The cost of the credit report shall be
412 borne by the licensee.
413 (f) Submit any additional information or documentation
414 requested by the office and required by rule concerning the
415 licensee. Additional information may include documentation of
416 pending and prior disciplinary and criminal history events,
417 including arrest reports and certified copies of charging
418 documents, plea agreements, judgments and sentencing documents,
419 documents relating to pretrial intervention, orders terminating
420 probation or supervised release, final administrative agency
421 orders, or other comparable documents that may provide the
422 office with the appropriate information to determine eligibility
423 for renewal of licensure.
424 (2) The office may not renew a mortgage lender license
425 unless the mortgage lender continues to meet the minimum
426 requirements for initial licensure pursuant to s. 494.00611 and
427 adopted rule.
428 (3) A licensed mortgage lender that fails to meet the
429 requirements under this section for annual license renewal on or
430 before December 31, but that meets such requirements after
431 December 31 but before March 1, shall have such license status
432 changed to “failed to renew” pending review and renewal by the
433 office. A nonrefundable reinstatement fee of $475 shall be
434 charged in addition to and apart from any registry fees. The
435 license status may not be changed until the requirements of this
436 section have been met and all fees have been paid. If the
437 licensee fails to submit the required information and pay the
438 required fees by March 1, such license is expired and such
439 person must apply for a new mortgage lender license under s.
440 494.00611.
441 Section 13. Section 494.0066, Florida Statutes, is amended
442 to read:
443 494.0066 Mortgage lender branch office license and license
444 renewal offices.—
445 (1) Each branch office of a mortgage lender must be
446 licensed under this section.
447 (2) The office shall issue a mortgage lender branch office
448 license to a mortgage lender licensee after the office
449 determines that the mortgage lender has submitted a completed
450 branch office application form as prescribed by commission rule
451 by the commission and an initial nonrefundable branch office
452 license fee of $225 per branch office. Application fees may not
453 be prorated for partial years of licensure. The branch office
454 application must include the name and license number of the
455 mortgage lender under this part, the name of the branch manager
456 in charge of the branch office, and the address of the branch
457 office. The branch office license shall be issued in the name of
458 the mortgage lender and must be renewed in conjunction with the
459 license renewal. An application is considered received for
460 purposes of s. 120.60 upon receipt of a completed branch office
461 renewal form, as prescribed by commission rule, and the required
462 fees.
463 (3) A mortgage lender branch office license must be renewed
464 annually at the time of renewing the mortgage lender license.
465 (a) In order to renew a branch office license, a mortgage
466 lender must, by December 31:
467 1. Submit a completed license renewal form as prescribed by
468 commission rule.
469 2. Submit a nonrefundable fee of $225 per branch office
470 must be submitted at the time of renewal.
471 3. Submit additional information or documentation requested
472 by the office and required by rule concerning the licensee.
473 Additional information may include documents that may provide
474 the office with the appropriate information to determine
475 eligibility for licensure renewal.
476 (b) The office may not renew a branch office license unless
477 the mortgage lender licensee continues to meet the minimum
478 requirements for initial licensure pursuant to this section and
479 adopted rule.
480 (c) A licensed branch office that fails to meet the
481 requirements under this section for annual license renewal on or
482 before December 31, but that meets such requirements after
483 December 31 but before March 1, shall have such license status
484 changed to “failed to renew” pending review and renewal by the
485 office. A nonrefundable reinstatement fee of $225 shall be
486 charged in addition to and apart from any registry fees. The
487 license status may not be changed until the requirements of this
488 section have been met and all fees have been paid. If the
489 licensee fails to submit the required information and pay the
490 required fees by March 1, such license is expired and the
491 mortgage lender licensee must apply for a new mortgage lender
492 branch office license under subsection (2).
493 Section 14. Subsections (8) through (13) of section
494 494.0067, Florida Statutes, are amended to read:
495 494.0067 Requirements of mortgage lenders.—
496 (8) Each mortgage lender shall provide an applicant for a
497 mortgage loan a good faith estimate of the costs the applicant
498 can reasonably expect to pay in obtaining a mortgage loan. The
499 good faith estimate of costs must be mailed or delivered to the
500 applicant within 3 business days after the licensee receives a
501 written loan application from the applicant. The estimate of
502 costs may be provided to the applicant by a person other than
503 the licensee making the loan. The good faith estimate must
504 identify the recipient of all payments charged to the borrower
505 and, except for all fees to be received by the mortgage broker
506 and the mortgage lender, may be disclosed in generic terms, such
507 as, but not limited to, paid to appraiser, officials, title
508 company, or any other third-party service provider. The licensee
509 bears the burden of proving such disclosures were provided to
510 the borrower. The commission may adopt rules that set forth the
511 disclosure requirements of this section.
512 (9) The disclosures in this subsection must be furnished in
513 writing at the time an adjustable rate mortgage loan is offered
514 to the borrower and whenever the terms of the adjustable rate
515 mortgage loan offered have a material change prior to closing.
516 The lender shall furnish the disclosures relating to adjustable
517 rate mortgages in a format prescribed by ss. 226.18 and 226.19
518 of Regulation Z of the Board of Governors of the Federal Reserve
519 System, as amended; its commentary, as amended; and the federal
520 Truth in Lending Act, 15 U.S.C. ss. 1601 et seq., as amended;
521 together with the Consumer Handbook on Adjustable Rate
522 Mortgages, as amended; published by the Federal Reserve Board
523 and the Federal Home Loan Bank Board. The licensee bears the
524 burden of proving such disclosures were provided to the
525 borrower.
526 (10) In every mortgage loan transaction, each mortgage
527 lender shall notify a borrower of any material changes in the
528 terms of a mortgage loan previously offered to the borrower
529 within 3 business days after being made aware of such changes by
530 the lender but at least 3 business days before signing the
531 settlement or closing statement. The licensee bears the burden
532 of proving such notification was provided and accepted by the
533 borrower. A borrower may waive the right to receive notice of a
534 material change if the borrower determines that the extension of
535 credit is needed to meet a bona fide personal financial
536 emergency and the right to receive notice would delay the
537 closing of the mortgage loan. The imminent sale of the
538 borrower’s home at foreclosure during the 3-day period before
539 the signing of the settlement or closing statement constitutes
540 an example of a bona fide personal financial emergency. In order
541 to waive the borrower’s right to receive notice, the borrower
542 must provide the licensee with a dated written statement that
543 describes the personal financial emergency, waives the right to
544 receive the notice, bears the borrower’s signature, and is not
545 on a printed form prepared by the licensee for the purpose of
546 such a waiver.
547 (8)(11) A mortgage lender may close loans in its own name
548 but may not service the loan for more than 4 months unless the
549 lender has a servicing endorsement. Only a mortgage lender who
550 continuously maintains a net worth of at least $250,000 may
551 obtain a servicing endorsement.
552 (9)(12) A mortgage lender must report to the office the
553 failure to meet the applicable net worth requirements of s.
554 494.00611 within 2 days after the mortgage lender’s knowledge of
555 such failure or after the mortgage lender should have known of
556 such failure.
557 (10)(13) Each mortgage lender shall submit to the registry
558 reports of condition which are in a form and which contain such
559 information as the registry may require. The commission may
560 prescribe by rule the deadline by which a mortgage lender must
561 file a report of condition. For purposes of this section, the
562 report of condition is synonymous with the registry’s Mortgage
563 Call Report.
564 Section 15. Section 494.0068, Florida Statutes, is
565 repealed.
566 Section 16. Subsection (1) of section 494.007, Florida
567 Statutes, is amended to read:
568 494.007 Commitment process.—
569 (1) If a commitment is issued, the mortgage lender shall
570 disclose in writing:
571 (a) The expiration date of the commitment;
572 (b) The mortgage amount, meaning the face amount of credit
573 provided to the borrower or in the borrower’s behalf;
574 (c) If the interest rate or other terms are subject to
575 change before expiration of the commitment:
576 1. The basis, index, or method, if any, which will be used
577 to determine the rate at closing. Such basis, index, or method
578 shall be established and disclosed with direct reference to the
579 movement of an interest rate index or of a national or regional
580 index that is available to and verifiable by the borrower and
581 beyond the control of the lender; or
582 2. The following statement, in at least 10-point bold type:
583 “The interest rate will be the rate established by the lender in
584 its discretion as its prevailing rate . . . days before
585 closing.”; and
586 (d) The amount of the commitment fee, if any, and whether
587 and under what circumstances the commitment fee is refundable;
588 and
589 (d)(e) The time, if any, within which the commitment must
590 be accepted by the borrower.
591 Section 17. Section 494.0073, Florida Statutes, is amended
592 to read:
593 494.0073 Mortgage lender when acting as a mortgage broker.
594 The provisions of this part do not prohibit a mortgage lender
595 from acting as a mortgage broker. However, in mortgage
596 transactions in which a mortgage lender acts as a mortgage
597 broker, the provisions of ss. 494.0038, 494.004(2), 494.0042,
598 and 494.0043(1), (2), and (3) apply.
599 Section 18. Sections 494.0078, 494.0079, 494.00791,
600 494.00792, 494.00793, 494.00794, 494.00795, 494.00796, and
601 494.00797, Florida Statutes, are repealed.
602 Section 19. Section 494.008, Florida Statutes, is repealed.
603 Section 20. This act shall take effect July 1, 2014.
604
605 ================= T I T L E A M E N D M E N T ================
606 And the title is amended as follows:
607 Delete everything before the enacting clause
608 and insert:
609 A bill to be entitled
610 An act relating to loan originators, mortgage brokers,
611 and mortgage lenders; amending s. 494.001, F.S.;
612 adding and revising definitions; amending s. 494.0012,
613 F.S.; authorizing the Office of Financial Regulation
614 to conduct joint or concurrent examinations with other
615 state or federal regulatory agencies; amending s.
616 494.00255, F.S.; providing additional grounds for
617 disciplinary action against a licensee or person
618 required to be licensed; amending s. 494.00313, F.S.;
619 providing additional requirements, fees, and
620 consequences for failing to renew a loan originator
621 license by a certain date; amending s. 494.00322,
622 F.S.; providing additional requirements, fees, and
623 consequences for a mortgage broker license renewal
624 that is not submitted by a certain date; amending s.
625 494.0036, F.S.; specifying requirements for the
626 renewal of a mortgage broker branch office license;
627 providing additional requirements, fees, and
628 consequences for failing to renew a branch office
629 license that is not submitted by a certain date;
630 amending s. 494.0038, F.S.; deleting certain
631 disclosure requirements relating to mortgage broker
632 agreements; amending s. 494.004, F.S.; deleting
633 certain notification requirements relating to mortgage
634 loan transactions; authorizing the Financial Service
635 Commission to specify a deadline for submitting
636 reports of condition to the registry; amending s.
637 494.0042, F.S.; deleting a cross-reference; repealing
638 s. 494.00421, F.S., relating to fee disclosure
639 requirements in a mortgage broker agreement; amending
640 s. 494.00611, F.S.; correcting a cross-reference;
641 amending s. 494.00612, F.S.; providing additional
642 requirements, fees, and consequences for failing to
643 renew a mortgage lender license that is not submitted
644 by a certain date; amending s. 494.0066, F.S.;
645 specifying mortgage lender branch office license
646 renewal requirements; amending s. 494.0067, F.S.;
647 deleting disclosure requirements relating to the
648 provision of costs estimates for a mortgage loan;
649 repealing s. 494.0068, F.S., relating to disclosure
650 requirements in the loan application process; amending
651 s. 494.007, F.S.; deleting a disclosure requirement
652 relating to commitment fees; amending s. 494.0073,
653 F.S.; deleting a cross-reference; repealing ss.
654 494.0078, 494.0079, 494.00791, 494.00792, 494.00793,
655 494.00794, 494.00795, 494.00796, and 494.00797, F.S.,
656 relating to the Florida Fair Lending Act; repealing s.
657 494.008, F.S., relating to Loans under Florida Uniform
658 Land Sales Practices Law; providing an effective date.