Florida Senate - 2022                                    SB 1706
       
       
        
       By Senator Garcia
       
       
       
       
       
       37-00545B-22                                          20221706__
    1                        A bill to be entitled                      
    2         An act relating to servicers and lenders of
    3         residential mortgage loans; amending s. 494.001, F.S.;
    4         revising and providing definitions; creating s.
    5         494.00163, F.S.; requiring mortgage lenders and
    6         mortgage servicers to comply with specified federal
    7         law; requiring that periodic statements for
    8         residential mortgage loans follow specified laws;
    9         specifying that certain entities are not exempt from
   10         such laws; defining the term “small mortgage
   11         servicer”; creating s. 494.00225, F.S.; requiring
   12         mortgage servicers and mortgage lenders to assume
   13         duties and obligations relating to previously approved
   14         first lien loan modifications, foreclosure prevention
   15         alternatives, and other loan modifications under
   16         certain circumstances; creating s. 494.0027, F.S.;
   17         defining terms; prohibiting mortgage servicers and
   18         mortgage lenders from commencing certain civil
   19         actions, recording specified notices, or conducting
   20         foreclosure sales unless specified conditions are met;
   21         requiring mortgage servicers and mortgage lenders to
   22         establish single points of contact and provide to
   23         borrowers direct means of communication with the
   24         single points of contact upon request; providing
   25         requirements and duties for single points of contact
   26         and for mortgage servicers and mortgage lenders
   27         relating to single points of contact; requiring
   28         mortgage servicers and mortgage lenders to send
   29         written acknowledgment of application receipt to
   30         foreclosure prevention alternative applicants in
   31         specified manners within a specified timeframe;
   32         providing requirements for statements, documents, and
   33         information that mortgage servicers and mortgage
   34         lenders must send to applicants under various
   35         circumstances; providing timelines for mortgage
   36         servicers and mortgage lenders to commence civil
   37         actions against residential mortgage loan borrowers;
   38         providing that mortgage servicers and mortgage lenders
   39         are not required to evaluate foreclosure prevention
   40         alternative applications under certain circumstances;
   41         providing an exception; prohibiting mortgage servicers
   42         and mortgage lenders from charging specified fees;
   43         creating ss. 627.4055 and 635.0215, F.S.; defining
   44         terms; prohibiting insurers and insurance agents from
   45         engaging in certain acts relating to lender-placed
   46         insurance for residential mortgage loan guaranty;
   47         creating s. 702.013, F.S.; defining terms; prohibiting
   48         mortgage servicers and mortgage lenders from
   49         commencing certain civil actions, recording specified
   50         notices, or conducting foreclosure sales unless
   51         specified conditions are met; providing an exception;
   52         requiring mortgage servicers and mortgage lenders to
   53         establish single points of contact and to provide to
   54         borrowers direct means of communication with the
   55         single points of contact upon request; providing
   56         requirements and duties for single points of contact
   57         and for mortgage servicers and mortgage lenders
   58         relating to single points of contact; requiring
   59         mortgage servicers and mortgage lenders to send
   60         written acknowledgment of application receipt to
   61         foreclosure prevention alternative applicants in
   62         specified manners within a specified timeframe;
   63         providing requirements for statements, documents, and
   64         information that mortgage servicers and mortgage
   65         lenders must send to applicants under various
   66         circumstances; providing timelines for mortgage
   67         servicers and mortgage lenders to commence civil
   68         actions against residential mortgage loan borrowers;
   69         providing that mortgage servicers and mortgage lenders
   70         are not required to evaluate foreclosure prevention
   71         alternative applications under certain circumstances;
   72         providing an exception; prohibiting mortgage servicers
   73         and mortgage lenders from charging specified fees;
   74         amending ss. 494.00115 and 494.0025, F.S.; conforming
   75         cross-references; providing an effective date.
   76          
   77  Be It Enacted by the Legislature of the State of Florida:
   78  
   79         Section 1. Present subsections (12) through (26) and (27)
   80  through (38) of section 494.001, Florida Statutes, are
   81  redesignated as subsections (13) through (27) and subsections
   82  (29) through (40), respectively, new subsections (12) and (28)
   83  are added to that section, and subsection (1) of that section is
   84  amended, to read:
   85         494.001 Definitions.—As used in this chapter, the term:
   86         (1) “Borrower” means:
   87         (a) A person obligated to repay a mortgage loan and
   88  includes, but is not limited to, a coborrower or cosignor; or
   89         (b)A natural person who is a mortgagor under a residential
   90  mortgage loan.
   91         (12)“Foreclosure prevention alternative” means a
   92  modification of a residential mortgage loan term.
   93         (28)“Mortgage servicer” means a person or entity that
   94  directly services, or is contracted as a subservicing agent to a
   95  master servicer to service, a residential mortgage loan or
   96  manages a residential mortgage loan, which services or
   97  management may include, but is not limited to, the following
   98  responsibilities:
   99         (a)Interacting with the borrower; managing the borrower’s
  100  loan account daily, including, but not limited to, collecting
  101  and crediting loan payments that include principals and
  102  interests paid, and generating periodic billing and account
  103  statements; and managing the borrower’s escrow account, if
  104  applicable; or
  105         (b)Enforcing the note and security instrument as the
  106  current owner of the promissory note or as the authorized agent
  107  of the current owner of the promissory note.
  108         Section 2. Section 494.00163, Florida Statutes, is created
  109  to read:
  110         494.00163Residential mortgage loans; lender-placed
  111  insurance; periodic statements.—
  112         (1)A mortgage lender or mortgage servicer must comply with
  113  12 C.F.R. s. 1024.37.
  114         (2)Periodic statements for residential mortgage loans in
  115  the state must follow all the provisions set forth in 12 C.F.R.
  116  s. 1026.41.
  117         (3)A servicer of a reverse mortgage or a small mortgage
  118  servicer is not exempt from the requirements of 12 C.F.R. s.
  119  1024.37 and 12 C.F.R. s. 1026.41. As used in this section, the
  120  term “small mortgage servicer” means a mortgage servicer that,
  121  together with any affiliates, services up to 5,000 residential
  122  mortgage loans, all of which have the mortgage servicer or its
  123  affiliate as the creditor or assignee.
  124         Section 3. Section 494.00225, Florida Statutes, is created
  125  to read:
  126         494.00225Residential mortgage loan modifications to avoid
  127  foreclosure; transfers of duties and obligations of mortgage
  128  servicers and mortgage lenders.—If a borrower of a residential
  129  mortgage loan has been approved in writing for a first lien loan
  130  modification, a foreclosure prevention alternative under s.
  131  494.0027, or other loan modification to avoid foreclosure and if
  132  the servicing of the borrower’s mortgage loan is transferred or
  133  sold, the mortgage servicer or mortgage lender to whom the
  134  mortgage loan is transferred or sold shall assume all duties and
  135  obligations related to such previously approved first lien loan
  136  modification, foreclosure prevention alternative, or other loan
  137  modification.
  138         Section 4. Section 494.0027, Florida Statutes, is created
  139  to read:
  140         494.0027Foreclosure prevention alternatives for
  141  residential mortgage loans.—
  142         (1)As used in this section, the term:
  143         (a)“Complete application” means an application for a
  144  foreclosure prevention alternative for which the borrower has
  145  provided all documents required by the mortgage servicer or
  146  mortgage lender within the reasonable timeframe specified by the
  147  mortgage servicer or mortgage lender.
  148         (b)“Single point of contact” means a person who has, or a
  149  team of personnel of which each member has, the ability,
  150  authority, and responsibility to:
  151         1.Communicate the process by which a borrower may apply
  152  for an available foreclosure prevention alternative and the
  153  deadline for any required submission to be considered for the
  154  foreclosure prevention alternative.
  155         2.Coordinate receipt of all documents associated with the
  156  available foreclosure prevention alternatives and notify the
  157  borrower of any missing document necessary to complete an
  158  application for a foreclosure prevention alternative.
  159         3.Have access to current information and sufficient
  160  personnel to timely, accurately, and adequately inform the
  161  borrower of the current status of the foreclosure prevention
  162  alternative.
  163         4.Ensure that the borrower is considered for all
  164  foreclosure prevention alternatives offered by, or through, the
  165  mortgage servicer or mortgage lender and for which the borrower
  166  is or may be eligible.
  167         5.Have access to the person who has the ability and
  168  authority to stop the foreclosure process when necessary.
  169         (2)(a)A mortgage servicer or mortgage lender may not
  170  commence a civil action for the recovery of any debt, or for the
  171  enforcement of any right, under a residential mortgage loan
  172  which is not barred by this chapter or chapter 702 or any other
  173  provision of law, record a notice of default or a notice of
  174  sale, or conduct a foreclosure sale, if a borrower submits an
  175  application for a foreclosure prevention alternative offered by,
  176  or through, the borrower’s mortgage servicer or mortgage lender,
  177  unless one of the following has occurred:
  178         1.The borrower fails to submit all documents or
  179  information required to complete the application within the
  180  allotted timeframe authorized by the mortgage servicer or
  181  mortgage lender, which must be at least 30 calendar days after
  182  the date of the initial acknowledgment of receipt of the
  183  application sent to the borrower.
  184         2.The mortgage servicer or mortgage lender makes a written
  185  determination that the borrower is not eligible for a
  186  foreclosure prevention alternative, and any appeal period under
  187  subsection (5) has expired.
  188         3.The borrower does not accept a written offer for a
  189  foreclosure prevention alternative within 30 calendar days after
  190  the date of the offer.
  191         4.The borrower accepts a written offer for a foreclosure
  192  prevention alternative, but defaults on or otherwise breaches
  193  the borrower’s obligations under the foreclosure prevention
  194  alternative.
  195         (b)1.If a borrower requests a foreclosure prevention
  196  alternative, the mortgage servicer or mortgage lender shall
  197  promptly establish a single point of contact and provide to the
  198  borrower one or more direct means of communication with the
  199  single point of contact.
  200         2.A single point of contact must remain assigned to the
  201  borrower’s account until the mortgage servicer or mortgage
  202  lender determines that all foreclosure prevention alternatives
  203  offered by, or through, the mortgage servicer or mortgage lender
  204  have been exhausted or the borrower’s account becomes current.
  205         3.The mortgage servicer or mortgage lender shall ensure
  206  that a single point of contact refers and transfers the borrower
  207  to an appropriate supervisor upon the borrower’s request, if the
  208  single point of contact has a supervisor.
  209         4.If the responsibilities of a single point of contact are
  210  performed by a team of personnel, the mortgage servicer or
  211  mortgage lender shall ensure that each member of the team is
  212  knowledgeable about the borrower’s situation and current status
  213  in the process of seeking a foreclosure prevention alternative.
  214         (3)Within 7 business days after receiving an application
  215  for a foreclosure prevention alternative or any document in
  216  connection with a foreclosure prevention alternative application
  217  for a residential mortgage loan, a mortgage servicer or mortgage
  218  lender shall send to the borrower, by first-class mail or, if an
  219  electronic mail address is provided, by electronic mail, written
  220  acknowledgment of the receipt of the application or document.
  221         (a)Upon receipt of an application for a foreclosure
  222  prevention alternative, the mortgage servicer or mortgage lender
  223  shall include in the initial acknowledgment of receipt of the
  224  application:
  225         1.A description of the process for considering the
  226  application, including, without limitation, an estimate of when
  227  a decision on the application will be made and the length of
  228  time the borrower will have to consider an offer for a
  229  foreclosure prevention alternative.
  230         2.A statement of any deadlines that affect the processing
  231  of an application for a foreclosure prevention alternative,
  232  including, without limitation, the deadline for submitting any
  233  missing document.
  234         3.A statement of the expiration dates for any documents
  235  submitted by the borrower.
  236         (b)If a borrower submits an application for a foreclosure
  237  prevention alternative but does not initially submit all the
  238  documents or information required to complete the application,
  239  the mortgage servicer or mortgage lender shall include in the
  240  initial acknowledgment of receipt of the application:
  241         1.A statement of any deficiency in the borrower’s
  242  application and allow the borrower at least 30 calendar days to
  243  submit any missing document or information required to complete
  244  the application.
  245         2.All the information required under subparagraphs (a)1.,
  246  2., and 3.
  247         (4)If a borrower accepts an offer for a foreclosure
  248  prevention alternative for a residential mortgage loan, the
  249  mortgage servicer or mortgage lender shall provide the borrower
  250  with a copy of the complete agreement of the foreclosure
  251  prevention alternative signed by the mortgage lender or an agent
  252  or authorized representative of the mortgage lender.
  253         (5)If a borrower submits a complete application for a
  254  foreclosure prevention alternative for a residential mortgage
  255  loan and the borrower’s application is denied, the mortgage
  256  servicer or mortgage lender shall send to the borrower a written
  257  statement of:
  258         (a)The reason for the denial.
  259         (b)The length of time the borrower has to request an
  260  appeal of the denial, which must be at least 30 calendar days.
  261         (c)Instructions regarding how to appeal the denial,
  262  including, without limitation, how to provide evidence that the
  263  denial was in error.
  264         (6)If a borrower of a residential mortgage loan submits a
  265  complete application for a foreclosure prevention alternative
  266  and the borrower’s application is denied, the mortgage servicer
  267  or mortgage lender may not commence a civil action for the
  268  recovery of any debt, or for the enforcement of any right, under
  269  a residential mortgage loan which is not barred by this chapter
  270  or chapter 702 or any other provision of law, record a notice of
  271  default or a notice of sale, or conduct a foreclosure sale until
  272  the later of:
  273         (a)Sixty calendar days after the borrower is sent the
  274  written statement required by subsection (5); or
  275         (b)If the borrower appeals the denial, the later of:
  276         1.Fifteen calendar days after the denial of the appeal; or
  277         2.If the appeal is successful, 14 calendar days after a
  278  foreclosure prevention alternative offered after the appeal is
  279  declined by the borrower; or
  280         3.If a foreclosure prevention alternative offered after
  281  the appeal is accepted, the date on which the borrower fails to
  282  timely submit the first payment or otherwise breaches the terms
  283  of the offer.
  284         (7)A mortgage servicer or mortgage lender is not required
  285  to evaluate a foreclosure prevention alternative application
  286  from a borrower of a residential mortgage loan who has already
  287  been evaluated or afforded a fair opportunity to be evaluated
  288  for a foreclosure prevention alternative or who has been
  289  evaluated or afforded a fair opportunity to be evaluated
  290  consistent with the requirements of this section, unless:
  291         (a)There has been a material change in the borrower’s
  292  financial circumstances since the date of the borrower’s
  293  previous application.
  294         (b)The change in paragraph (a) is documented by the
  295  borrower and submitted to the mortgage servicer or mortgage
  296  lender.
  297         (8)A mortgage servicer or mortgage lender may not charge
  298  or collect:
  299         (a)An application fee, processing fee, or other fee for a
  300  foreclosure prevention alternative; or
  301         (b)Late fees for periods during which:
  302         1.A foreclosure prevention alternative is under
  303  consideration or a denial is being appealed;
  304         2.The borrower is making timely payments under a
  305  foreclosure prevention alternative; or
  306         3.A foreclosure prevention alternative is being evaluated
  307  or exercised.
  308         Section 5. Section 627.4055, Florida Statutes, is created
  309  to read:
  310         627.4055Lender-placed insurance for residential mortgage
  311  loan guaranty.—
  312         (1)As used in this section, the term:
  313         (a)“Affiliate” has the same meaning as in s. 624.10.
  314         (b)“Lender-placed insurance” means insurance obtained by a
  315  mortgage servicer or mortgage lender when a borrower of a
  316  residential mortgage loan does not maintain valid or sufficient
  317  insurance upon the mortgaged real property as required by the
  318  terms of the mortgage agreement.
  319         (c)“Mortgage servicer” has the same meaning as in s.
  320  494.001.
  321         (d)“Person affiliated” means an affiliate or affiliated
  322  person, as those terms are defined in s. 624.10.
  323         (2)(a)An insurer or insurance agent may not:
  324         1.Issue lender-placed insurance on a mortgaged property
  325  if:
  326         a.The insurer or insurance agent or an affiliate of the
  327  insurer or insurance agent owns, performs the servicing for, or
  328  owns the servicing right to, the mortgaged property; or
  329         b.The mortgage servicer or mortgage lender has not
  330  complied with 12 C.F.R. s. 1024.37.
  331         2.Except for payment to a mortgage lender for any loss
  332  resulting from a mortgage default or property foreclosure:
  333         a.Compensate any mortgage lender, insurer, investor, or
  334  mortgage servicer, including, but not limited to, through
  335  payment of commissions, on a lender-placed insurance policy
  336  issued by the insurer or insurance agent.
  337         b.Make any payment, including, but not limited to, payment
  338  of expenses, to any mortgage lender, insurer, investor, or
  339  mortgage servicer for the purpose of securing lender-placed
  340  insurance business or related outsourced services.
  341         c.Share lender-placed insurance premium or risk with the
  342  mortgage lender, investor, or mortgage servicer that obtained
  343  the lender-placed insurance.
  344         d.Offer contingent commissions, profit sharing, or other
  345  payments dependent on profitability or loss ratios to any person
  346  affiliated with lender-placed insurance.
  347         (b)An insurer or insurance agent may not provide free or
  348  below-cost outsourced services to a mortgage lender, insurance
  349  producer, investor, or mortgage servicer or outsource its own
  350  functions to a mortgage lender, insurance producer, investor, or
  351  mortgage servicer on an above-cost basis.
  352         Section 6. Section 635.0215, Florida Statutes, is created
  353  to read:
  354         635.0215Lender-placed insurance for residential mortgage
  355  loan guaranty.—
  356         (1)As used in this section, the term:
  357         (a)“Affiliate” has the same meaning as in s. 624.10.
  358         (b)“Lender-placed insurance” has the same meaning as in s.
  359  627.4055(1).
  360         (c)“Mortgage servicer” has the same meaning as in s.
  361  494.001.
  362         (d)“Person affiliated” means an affiliate or affiliated
  363  person, as those terms are defined in s. 624.10.
  364         (2)(a)An insurer or insurance agent may not:
  365         1.Issue lender-placed insurance on a mortgaged property
  366  if:
  367         a.The insurer or insurance agent or an affiliate of the
  368  insurer or insurance agent owns, performs the servicing for, or
  369  owns the servicing right to, the mortgaged property; or
  370         b.The mortgage servicer or mortgage lender has not
  371  complied with 12 C.F.R. s. 1024.37.
  372         2.Except for payment to a mortgage lender for any loss
  373  resulting from a mortgage default or property foreclosure:
  374         a.Compensate any mortgage lender, insurer, investor, or
  375  mortgage servicer, including, but not limited to, through
  376  payment of commissions, on a lender-placed insurance policy
  377  issued by the insurer or insurance agent.
  378         b.Make any payment, including, but not limited to, payment
  379  of expenses, to any mortgage lender, insurer, investor, or
  380  mortgage servicer for the purpose of securing lender-placed
  381  insurance business or related outsourced services.
  382         c.Share lender-placed insurance premium or risk with the
  383  mortgage lender, investor, or mortgage servicer that obtained
  384  the lender-placed insurance.
  385         d.Offer contingent commissions, profit sharing, or other
  386  payments dependent on profitability or loss ratios to any person
  387  affiliated with lender-placed insurance.
  388         (b)An insurer or insurance agent may not provide free or
  389  below-cost outsourced services to a mortgage lender, insurance
  390  producer, investor, or mortgage servicer or outsource its own
  391  functions to a mortgage lender, insurance producer, investor, or
  392  mortgage servicer on an above-cost basis.
  393         Section 7. Section 702.013, Florida Statutes, is created to
  394  read:
  395         702.013Foreclosure prevention alternatives for residential
  396  mortgage loans.—
  397         (1)As used in this section, the term:
  398         (a)“Complete application” has the same meaning as in s.
  399  494.0027(1).
  400         (b)“Foreclosure prevention alternative” has the same
  401  meaning as in s. 494.001.
  402         (c)“Mortgage servicer” has the same meaning as in s.
  403  494.001.
  404         (d)“Single point of contact” has the same meaning as in s.
  405  494.0027(1).
  406         (2)(a)A mortgage servicer or mortgage lender may not
  407  commence a civil action for the recovery of any debt, or for the
  408  enforcement of any right, under a residential mortgage loan
  409  which is not barred by this chapter or chapter 494 or any other
  410  provision of law, record a notice of default or a notice of
  411  sale, or conduct a foreclosure sale, if a borrower submits an
  412  application for a foreclosure prevention alternative offered by,
  413  or through, the borrower’s mortgage servicer or mortgage lender,
  414  unless one of the following has occurred:
  415         1.The borrower fails to submit all documents or
  416  information required to complete the application within the
  417  allotted timeframe authorized by the mortgage servicer or
  418  mortgage lender, which must be at least 30 calendar days after
  419  the date of the initial acknowledgment of receipt of the
  420  application sent to the borrower.
  421         2.The mortgage servicer or mortgage lender makes a written
  422  determination that the borrower is not eligible for a
  423  foreclosure prevention alternative, and any appeal period under
  424  subsection (5) has expired.
  425         3.The borrower does not accept a written offer for a
  426  foreclosure prevention alternative within 30 calendar days after
  427  the date of the offer.
  428         4.The borrower accepts a written offer for a foreclosure
  429  prevention alternative, but defaults on or otherwise breaches
  430  the borrower’s obligations under the foreclosure prevention
  431  alternative.
  432         (b)1.If a borrower requests a foreclosure prevention
  433  alternative, the mortgage servicer or mortgage lender shall
  434  promptly establish a single point of contact and provide to the
  435  borrower one or more direct means of communication with the
  436  single point of contact.
  437         2.A single point of contact must remain assigned to the
  438  borrower’s account until the mortgage servicer or mortgage
  439  lender determines that all foreclosure prevention alternatives
  440  offered by, or through, the mortgage servicer or mortgage lender
  441  have been exhausted or the borrower’s account becomes current.
  442         3.The mortgage servicer or mortgage lender shall ensure
  443  that a single point of contact refers and transfers the borrower
  444  to an appropriate supervisor upon the borrower’s request, if the
  445  single point of contact has a supervisor.
  446         4.If the responsibilities of a single point of contact are
  447  performed by a team of personnel, the mortgage servicer or
  448  mortgage lender shall ensure that each member of the team is
  449  knowledgeable about the borrower’s situation and current status
  450  in the process of seeking a foreclosure prevention alternative.
  451         (3)Within 7 business days after receiving an application
  452  for a foreclosure prevention alternative or any document in
  453  connection with a foreclosure prevention alternative application
  454  for a residential mortgage loan, a mortgage servicer or mortgage
  455  lender shall send to the borrower, by first-class mail or, if an
  456  electronic mail address is provided, by electronic mail, written
  457  acknowledgment of the receipt of the application or document.
  458         (a)Upon receipt of an application for a foreclosure
  459  prevention alternative, the mortgage servicer or mortgage lender
  460  shall include in the initial acknowledgment of receipt of the
  461  application:
  462         1.A description of the process for considering the
  463  application, including, without limitation, an estimate of when
  464  a decision on the application will be made and the length of
  465  time the borrower will have to consider an offer for a
  466  foreclosure prevention alternative.
  467         2.A statement of any deadlines that affect the processing
  468  of an application for a foreclosure prevention alternative,
  469  including, without limitation, the deadline for submitting any
  470  missing document.
  471         3.A statement of the expiration dates for any documents
  472  submitted by the borrower.
  473         (b)If a borrower submits an application for a foreclosure
  474  prevention alternative but does not initially submit all the
  475  documents or information required to complete the application,
  476  the mortgage servicer or mortgage lender shall include in the
  477  initial acknowledgment of receipt of the application:
  478         1.A statement of any deficiency in the borrower’s
  479  application and allow the borrower at least 30 calendar days to
  480  submit any document or information required to complete the
  481  application.
  482         2.All the information required under subparagraphs (a)1.,
  483  2., and 3.
  484         (4)If a borrower accepts an offer for a foreclosure
  485  prevention alternative for a residential mortgage loan, the
  486  mortgage servicer or mortgage lender shall provide the borrower
  487  with a copy of the complete agreement of the foreclosure
  488  prevention alternative signed by the mortgage lender or an agent
  489  or authorized representative of the mortgage lender.
  490         (5)If a borrower submits a complete application for a
  491  foreclosure prevention alternative for a residential mortgage
  492  loan and the borrower’s application is denied, the mortgage
  493  servicer or mortgage lender shall send to the borrower a written
  494  statement of:
  495         (a)The reason for the denial.
  496         (b)The length of time the borrower has to request an
  497  appeal of the denial, which must be at least 30 calendar days.
  498         (c)Instructions regarding how to appeal the denial,
  499  including, without limitation, how to provide evidence that the
  500  denial was in error.
  501         (6)If a borrower of a residential mortgage loan submits a
  502  complete application for a foreclosure prevention alternative
  503  and the borrower’s application is denied, the mortgage servicer
  504  or mortgage lender may not commence a civil action for the
  505  recovery of any debt, or for the enforcement of any right, under
  506  a residential mortgage loan which is not barred by this chapter
  507  or chapter 494 or any other provision of law, record a notice of
  508  default or a notice of sale, or conduct a foreclosure sale until
  509  the later of:
  510         (a)Sixty calendar days after the borrower is sent the
  511  written statement required by subsection (5); or
  512         (b)If the borrower appeals the denial, the later of:
  513         1.Fifteen calendar days after the denial of the appeal; or
  514         2.If the appeal is successful, 14 calendar days after a
  515  foreclosure prevention alternative offered after the appeal is
  516  declined by the borrower; or
  517         3.If a foreclosure prevention alternative offered after
  518  the appeal is accepted, the date on which the borrower fails to
  519  timely submit the first payment or otherwise breaches the terms
  520  of the offer.
  521         (7)A mortgage servicer or mortgage lender is not required
  522  to evaluate a foreclosure prevention alternative application
  523  from a borrower of a residential mortgage loan who has already
  524  been evaluated or afforded a fair opportunity to be evaluated
  525  for a foreclosure prevention alternative or who has been
  526  evaluated or afforded a fair opportunity to be evaluated
  527  consistent with the requirements of this section, unless:
  528         (a)There has been a material change in the borrower’s
  529  financial circumstances since the date of the borrower’s
  530  previous application.
  531         (b)The change in paragraph (a) is documented by the
  532  borrower and submitted to the mortgage servicer or mortgage
  533  lender.
  534         (8)A mortgage servicer or mortgage lender may not charge
  535  or collect:
  536         (a)Application fees, processing fees, or other fees for a
  537  foreclosure prevention alternative; or
  538         (b)Late fees for periods during which:
  539         1.A foreclosure prevention alternative is under
  540  consideration or a denial is being appealed;
  541         2.The borrower is making timely payments under a
  542  foreclosure prevention alternative; or
  543         3.A foreclosure prevention alternative is being evaluated
  544  or exercised.
  545         Section 8. Paragraphs (a), (b), and (c) of subsection (5)
  546  of section 494.00115, Florida Statutes, are amended to read:
  547         494.00115 Exemptions.—
  548         (5) As used in this section, the term “hold himself or
  549  herself out to the public as being in the mortgage lending
  550  business” includes any of the following:
  551         (a) Representing to the public, through advertising or
  552  other means of communicating or providing information, including
  553  the use of business cards, stationery, brochures, signs, rate
  554  lists, or promotional items, by any method, that such individual
  555  can or will perform the activities described in s. 494.001(25)
  556  s. 494.001(24).
  557         (b) Soliciting in a manner that would lead the intended
  558  audience to reasonably believe that such individual is in the
  559  business of performing the activities described in s.
  560  494.001(25) s. 494.001(24).
  561         (c) Maintaining a commercial business establishment at
  562  which, or premises from which, such individual regularly
  563  performs the activities described in s. 494.001(25) s.
  564  494.001(24) or regularly meets with current or prospective
  565  mortgage borrowers.
  566         Section 9. Paragraph (d) of subsection (4) of section
  567  494.0025, Florida Statutes, is amended to read:
  568         494.0025 Prohibited practices.—It is unlawful for any
  569  person:
  570         (4) In any practice or transaction or course of business
  571  relating to the sale, purchase, negotiation, promotion,
  572  advertisement, or hypothecation of mortgage loan transactions,
  573  directly or indirectly:
  574         (d) To misrepresent a residential mortgage loan, as
  575  described in s. 494.001(26)(a) s. 494.001(25)(a), as a business
  576  purpose loan.
  577         Section 10. This act shall take effect July 1, 2022.