Florida Senate - 2024 CS for SB 514 By the Committee on Banking and Insurance; and Senator Boyd 597-02162-24 2024514c1 1 A bill to be entitled 2 An act relating to mortgage brokering; amending s. 3 494.0011, F.S.; authorizing the Financial Services 4 Commission to adopt rules prescribing criteria and 5 processes for determining whether an organization is a 6 bona fide nonprofit organization for a specified 7 purpose; amending s. 494.00115, F.S.; providing 8 exemptions from regulation under ch. 494, F.S., for 9 bona fide nonprofit organizations and certain 10 employees of a bona fide nonprofit organization that 11 meet specified criteria; requiring the Office of 12 Financial Regulation to make a specified 13 determination; requiring the office to make certain a 14 determination related to the terms of residential 15 mortgage loans originated by such employees; requiring 16 the office to periodically examine the books and 17 activities of a bona fide nonprofit organization and 18 to revoke its status in certain circumstances; 19 providing an effective date. 20 21 Be It Enacted by the Legislature of the State of Florida: 22 23 Section 1. Paragraph (b) of subsection (2) of section 24 494.0011, Florida Statutes, is amended to read: 25 494.0011 Powers and duties of the commission and office.— 26 (2) The commission may adopt rules to administer parts I, 27 II, and III of this chapter, including rules: 28 (b) Relating to compliance with the S.A.F.E. Mortgage 29 Licensing Act of 2008, including rules to: 30 1. Require loan originators, mortgage brokers, mortgage 31 lenders, and branch offices to register through the registry. 32 2. Require the use of uniform forms that have been approved 33 by the registry, and any subsequent amendments to such forms if 34 the forms are substantially in compliance with the provisions of 35 this chapter. Uniform forms that the commission may adopt 36 include, but are not limited to: 37 a. Uniform Mortgage Lender/Mortgage Broker Form, MU1. 38 b. Uniform Mortgage Biographical Statement & Consent Form, 39 MU2. 40 c. Uniform Mortgage Branch Office Form, MU3. 41 d. Uniform Individual Mortgage License/Registration & 42 Consent Form, MU4. 43 3. Require the filing of forms, documents, and fees in 44 accordance with the requirements of the registry. 45 4. Prescribe requirements for amending or surrendering a 46 license or other activities as the commission deems necessary 47 for the office’s participation in the registry. 48 5. Prescribe procedures that allow a licensee to challenge 49 information contained in the registry. 50 6. Prescribe procedures for reporting violations of this 51 chapter and disciplinary actions on licensees to the registry. 52 7. Prescribe criteria and processes for determining whether 53 an organization is and remains a bona fide nonprofit 54 organization for the purpose of determining whether the 55 organization and its employees acting as loan originators may be 56 exempt from regulation under this chapter pursuant to s. 57 494.00115. 58 Section 2. Present subsections (3), (4), and (5) of section 59 494.00115, Florida Statutes, are redesignated as subsections 60 (4), (5), and (6), respectively, and a new subsection (3) is 61 added to that section, to read: 62 494.00115 Exemptions.— 63 (3)(a) As provided in this subsection, a bona fide 64 nonprofit organization and an employee of a bona fide nonprofit 65 organization who acts as a loan originator only with respect to 66 his or her work duties to the bona fide nonprofit organization, 67 and who acts as a loan originator only with respect to 68 residential mortgage loans with terms that are favorable to the 69 borrower, are exempt from regulation under this chapter. 70 1. For an organization to be considered a bona fide 71 nonprofit organization under this subsection, the office must 72 determine, pursuant to criteria and processes established by 73 rule, that the organization satisfies all of the following 74 criteria: 75 a. Has the status of a tax-exempt organization under s. 76 501(c)(3) of the Internal Revenue Code of 1986. 77 b. Promotes affordable housing or provides homeownership 78 education or similar services. 79 c. Conducts its activities in a manner that serves public 80 or charitable purposes rather than commercial purposes. 81 d. Receives funding and revenue and charges fees in a 82 manner that does not incentivize it or its employees to act 83 other than in the best interests of its clients. 84 e. Compensates its employees in a manner that does not 85 incentivize employees to act other than in the best interests of 86 its clients. 87 f. Provides or identifies for the borrower residential 88 mortgage loans with terms favorable to the borrower and 89 comparable to mortgage loans and housing assistance provided 90 under government housing assistance programs. 91 2. For residential mortgage loans to be deemed under this 92 section to have terms that are favorable to the borrower, the 93 office must determine that the terms are consistent with loan 94 origination in a public or charitable context, rather than a 95 commercial context. 96 (b) The office must periodically examine the books and 97 activities of an organization that it determines is a bona fide 98 nonprofit organization and revoke its status as a bona fide 99 nonprofit organization if it does not continue to meet the 100 criteria specified in paragraph (a). 101 Section 3. This act shall take effect July 1, 2024.