Florida Senate - 2024                        COMMITTEE AMENDMENT
       Bill No. SB 514
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/18/2024           .                                

       The Committee on Banking and Insurance (Boyd) recommended the
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (b) of subsection (2) of section
    6  494.0011, Florida Statutes, is amended to read:
    7         494.0011 Powers and duties of the commission and office.—
    8         (2) The commission may adopt rules to administer parts I,
    9  II, and III of this chapter, including rules:
   10         (b) Relating to compliance with the S.A.F.E. Mortgage
   11  Licensing Act of 2008, including rules to:
   12         1. Require loan originators, mortgage brokers, mortgage
   13  lenders, and branch offices to register through the registry.
   14         2. Require the use of uniform forms that have been approved
   15  by the registry, and any subsequent amendments to such forms if
   16  the forms are substantially in compliance with the provisions of
   17  this chapter. Uniform forms that the commission may adopt
   18  include, but are not limited to:
   19         a. Uniform Mortgage Lender/Mortgage Broker Form, MU1.
   20         b. Uniform Mortgage Biographical Statement & Consent Form,
   21  MU2.
   22         c. Uniform Mortgage Branch Office Form, MU3.
   23         d. Uniform Individual Mortgage License/Registration &
   24  Consent Form, MU4.
   25         3. Require the filing of forms, documents, and fees in
   26  accordance with the requirements of the registry.
   27         4. Prescribe requirements for amending or surrendering a
   28  license or other activities as the commission deems necessary
   29  for the office’s participation in the registry.
   30         5. Prescribe procedures that allow a licensee to challenge
   31  information contained in the registry.
   32         6. Prescribe procedures for reporting violations of this
   33  chapter and disciplinary actions on licensees to the registry.
   34         7. Prescribe criteria and processes for determining whether
   35  an organization is and remains a bona fide nonprofit
   36  organization for the purpose of determining whether the
   37  organization and its employees acting as loan originators may be
   38  exempt from regulation under this chapter pursuant to s.
   39  494.00115.
   40         Section 2. Present subsections (3), (4), and (5) of section
   41  494.00115, Florida Statutes, are redesignated as subsections
   42  (4), (5), and (6), respectively, and a new subsection (3) is
   43  added to that section, to read:
   44         494.00115 Exemptions.—
   45         (3)(a)As provided in this subsection, a bona fide
   46  nonprofit organization and an employee of a bona fide nonprofit
   47  organization who acts as a loan originator only with respect to
   48  his or her work duties to the bona fide nonprofit organization,
   49  and who acts as a loan originator only with respect to
   50  residential mortgage loans with terms that are favorable to the
   51  borrower, are exempt from regulation under this chapter.
   52         1. For an organization to be considered a bona fide
   53  nonprofit organization under this subsection, the office must
   54  determine, pursuant to criteria and processes established by
   55  rule, that the organization satisfies all of the following
   56  criteria:
   57         a. Has the status of a tax-exempt organization under s.
   58  501(c)(3) of the Internal Revenue Code of 1986.
   59         b.Promotes affordable housing or provides homeownership
   60  education or similar services.
   61         c.Conducts its activities in a manner that serves public
   62  or charitable purposes rather than commercial purposes.
   63         d.Receives funding and revenue and charges fees in a
   64  manner that does not incentivize it or its employees to act
   65  other than in the best interests of its clients.
   66         e.Compensates its employees in a manner that does not
   67  incentivize employees to act other than in the best interests of
   68  its clients.
   69         f.Provides or identifies for the borrower residential
   70  mortgage loans with terms favorable to the borrower and
   71  comparable to mortgage loans and housing assistance provided
   72  under government housing assistance programs.
   73         2. For residential mortgage loans to be deemed under this
   74  section to have terms that are favorable to the borrower, the
   75  office must determine that the terms are consistent with loan
   76  origination in a public or charitable context, rather than a
   77  commercial context.
   78         (b) The office must periodically examine the books and
   79  activities of an organization that it determines is a bona fide
   80  nonprofit organization and revoke its status as a bona fide
   81  nonprofit organization if it does not continue to meet the
   82  criteria specified in paragraph (a).
   83         Section 3. This act shall take effect July 1, 2024.
   85  ================= T I T L E  A M E N D M E N T ================
   86  And the title is amended as follows:
   87         Delete everything before the enacting clause
   88  and insert:
   89                        A bill to be entitled                      
   90         An act relating to mortgage brokering; amending s.
   91         494.0011, F.S.; authorizing the Financial Services
   92         Commission to adopt rules prescribing criteria and
   93         processes for determining whether an organization is a
   94         bona fide nonprofit organization for a specified
   95         purpose; amending s. 494.00115, F.S.; providing
   96         exemptions from regulation under ch. 494, F.S., for
   97         bona fide nonprofit organizations and certain
   98         employees of a bona fide nonprofit organization that
   99         meet specified criteria; requiring the Office of
  100         Financial Regulation to make a specified
  101         determination; requiring the office to make certain a
  102         determination related to the terms of residential
  103         mortgage loans originated by such employees; requiring
  104         the office to periodically examine the books and
  105         activities of a bona fide nonprofit organization and
  106         to revoke its status in certain circumstances;
  107         providing an effective date.