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.
   21  Be It Enacted by the Legislature of the State of Florida:
   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.