Bill Text: FL S0666 | 2014 | Regular Session | Introduced
Bill Title: Loan Originators, Mortgage Brokers, and Mortgage Lenders
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2014-05-02 - Died in Appropriations, companion bill(s) passed, see CS/CS/SB 1012 (Ch. 2014-91) [S0666 Detail]
Download: Florida-2014-S0666-Introduced.html
Florida Senate - 2014 SB 666
By Senator Detert
28-00629-14 2014666__
1 A bill to be entitled
2 An act relating to loan originators, mortgage brokers,
3 and mortgage lenders; amending s. 494.001, F.S.;
4 adding and revising definitions; amending s. 494.0012,
5 F.S.; authorizing the Office of Financial Regulation
6 to conduct joint or concurrent examinations with other
7 state or federal regulatory agencies; amending s.
8 494.00255, F.S.; providing additional grounds for
9 disciplinary action against a licensee or person
10 required to be licensed based on certain violations of
11 the Nationwide Mortgage Licensing System and
12 Registry’s Rules of Conduct for Test Takers; repealing
13 s. 494.0028, F.S., relating to arbitration
14 requirements included in certain agreements or
15 applications; amending s. 494.00313, F.S.; providing
16 additional requirements, fees, and consequences for
17 failing to renew a loan originator license by a
18 certain date; amending s. 494.00322, F.S.; providing
19 additional requirements, fees, and consequences for a
20 mortgage broker license renewal that is not submitted
21 by a certain date; amending s. 494.0036, F.S.;
22 specifying requirements for the renewal of a mortgage
23 broker branch office license; providing additional
24 requirements, fees, and consequences for failing to
25 renew a branch office license that is not submitted by
26 a certain date; amending s. 494.0038, F.S.; deleting
27 certain disclosure requirements relating to mortgage
28 broker agreements; amending s. 494.004, F.S.; deleting
29 certain notification requirements relating to mortgage
30 loan transactions; authorizing the Financial Service
31 Commission to specify a deadline for submitting
32 reports of condition to the registry; amending s.
33 494.0042, F.S.; deleting a cross-reference; repealing
34 s. 494.00421, F.S., relating to fee disclosure
35 requirements in a mortgage broker agreement; amending
36 s. 494.00611, F.S.; correcting a cross-reference;
37 amending s. 494.00612, F.S.; providing additional
38 requirements, fees, and consequences for failing to
39 renew a mortgage lender license that is not submitted
40 by a certain date; amending s. 494.0066, F.S.;
41 specifying mortgage lender branch office license
42 renewal requirements; amending s. 494.0067, F.S.;
43 deleting disclosure requirements relating to the
44 provision of costs estimates for a mortgage loan;
45 repealing s. 494.0068, F.S., relating to disclosure
46 requirements in the loan application process; amending
47 s. 494.007, F.S.; deleting a disclosure requirement
48 relating to commitment fees; amending s. 494.0073,
49 F.S.; deleting a cross-reference; repealing ss.
50 494.0078, 494.0079, 494.00791, 494.00792, 494.00793,
51 494.00794, 494.00795, 494.00796, and 494.00797, F.S.,
52 relating to the Florida Fair Lending Act; repealing s.
53 494.008, F.S., relating to Loans under Florida Uniform
54 Land Sales Practices Law; providing an effective date.
55
56 Be It Enacted by the Legislature of the State of Florida:
57
58 Section 1. Present subsections (12) through (36) of section
59 494.001, Florida Statutes, are redesignated as subsections (13)
60 through (37), respectively, a new subsection (12) is added to
61 that section, and present subsection (15) of that section is
62 amended, to read:
63 494.001 Definitions.—As used in ss. 494.001-494.0077, the
64 term:
65 (12) “Indirect owner” means, with respect to direct and
66 indirect owners in a multilayered organization:
67 (a) If an owner is a corporation, each of its shareholders
68 that beneficially owns, has the right to vote, or has the power
69 to sell or direct the sale of 25 percent or more of voting
70 security of the corporation.
71 (b) If an owner is a partnership, all general partners and
72 those limited and special partners that have the right to
73 receive upon dissolution, or have contributed, 25 percent or
74 more of the partnership’s capital.
75 (c) If an owner is a trust, the trust and each trustee.
76 (d) If an owner is a limited liability company:
77 1. Those members that have the right to receive upon
78 dissolution, or have contributed, 25 percent or more of the
79 limited liability corporation’s capital; and
80 2. If managed by elected managers or appointed managers,
81 all elected or appointed managers.
82 (e) If an indirect owner, the parent owners of 25 percent
83 or more of their subsidiary.
84 (16)(15) “Loan origination fee” means the total
85 compensation from any source received by a mortgage broker
86 acting as a loan originator. Any payment for processing mortgage
87 loan applications must be included in the fee and must be paid
88 to the mortgage broker.
89 Section 2. Subsection (4) is added to section 494.0012,
90 Florida Statutes, to read:
91 494.0012 Investigations; complaints; examinations.—
92 (4) In order to reduce the burden on persons subject to
93 regulation under this chapter, the office may conduct a joint or
94 concurrent examination with any state or federal regulatory
95 agency and may furnish a copy of all examinations to an
96 appropriate regulator if the regulator agrees to abide by the
97 confidentiality requirements applicable to such examinations,
98 which are provided pursuant to chapter 119 and this chapter. The
99 office may also accept an examination from an appropriate
100 regulator.
101 Section 3. Paragraph (y) is added to subsection (1) of
102 section 494.00255, Florida Statutes, to read:
103 494.00255 Administrative penalties and fines; license
104 violations.—
105 (1) Each of the following acts constitutes a ground for
106 which the disciplinary actions specified in subsection (2) may
107 be taken against a person licensed or required to be licensed
108 under part II or part III of this chapter:
109 (y) Violating the registry’s Rules of Conduct for Test
110 Takers in connection with a prelicensing test.
111 Section 4. Section 494.0028, Florida Statutes, is repealed.
112 Section 5. Section 494.00313, Florida Statutes, is amended
113 to read:
114 494.00313 Loan originator license renewal.—
115 (1) In order to annually renew a loan originator license, a
116 loan originator must, by December 31:
117 (a) Submit a completed license renewal form as prescribed
118 by commission rule.
119 (b) Submit a nonrefundable renewal fee of $150, the $20
120 nonrefundable fee if required by s. 494.00172, and nonrefundable
121 fees to cover the cost of further fingerprint processing and
122 retention as prescribed by set forth in commission rule.
123 (c) Provide documentation of completion of at least 8 hours
124 of continuing education in courses reviewed and approved by the
125 registry.
126 (d) Authorize the registry to obtain an independent credit
127 report on the licensee from a consumer reporting agency, and
128 transmit or provide access to the report to the office. The cost
129 of the credit report shall be borne by the licensee.
130 (e) Submit any additional information or documentation
131 requested by the office and required by rule concerning the
132 licensee. Additional information may include documentation of
133 pending and prior disciplinary and criminal history events,
134 including arrest reports and certified copies of charging
135 documents, plea agreements, judgments and sentencing documents,
136 documents relating to pretrial intervention, orders terminating
137 probation or supervised release, final administrative agency
138 orders, or other comparable documents that may provide the
139 office with the appropriate information to determine eligibility
140 for renewal of licensure.
141 (2) The office may not renew a loan originator license
142 unless the loan originator continues to meet the minimum
143 requirements for initial licensure pursuant to s. 494.00312 and
144 adopted rule.
145 (3) A licensed loan originator who fails to meet the
146 requirements under this section for annual license renewal on or
147 before December 31, but who meets such requirements after
148 December 31 but before February 28, shall have such license
149 status changed to “failed to renew” pending review and renewal
150 by the office. A nonrefundable reinstatement fee of $150 shall
151 be charged in addition to and apart from any registry fees. The
152 license status may not be changed until the requirements of this
153 section have been met and all fees have been paid. If the
154 licensee fails to submit the required information and pay the
155 required fees by February 28, such license is expired and such
156 individual must apply for a new loan originator license under s.
157 494.00312.
158 Section 6. Section 494.00322, Florida Statutes, is amended
159 to read:
160 494.00322 Mortgage broker license renewal.—
161 (1) In order to annually renew a mortgage broker license, a
162 mortgage broker must, by December 31:
163 (a) Submit a completed license renewal form as prescribed
164 by commission rule.
165 (b) Submit a nonrefundable renewal fee of $375, the $100
166 nonrefundable fee if required by s. 494.00172, and nonrefundable
167 fees to cover the cost of further fingerprint processing and
168 retention as prescribed by set forth in commission rule.
169 (c) Submit fingerprints in accordance with s.
170 494.00321(2)(d) for any new control persons who have not been
171 screened.
172 (d) Authorize the registry to obtain an independent credit
173 report on each of the licensee’s control persons from a consumer
174 reporting agency, and transmit or provide access to the report
175 to the office. The cost of the credit report shall be borne by
176 the licensee.
177 (e) Submit any additional information or documentation
178 requested by the office and required by rule concerning the
179 licensee or a control person of the licensee. Additional
180 information may include documentation of pending and prior
181 disciplinary and criminal history events, including arrest
182 reports and certified copies of charging documents, plea
183 agreements, judgments and sentencing documents, documents
184 relating to pretrial intervention, orders terminating probation
185 or supervised release, final administrative agency orders, or
186 other comparable documents that may provide the office with the
187 appropriate information to determine eligibility for renewal of
188 licensure.
189 (2) The office may not renew a mortgage broker license
190 unless the licensee continues to meet the minimum requirements
191 for initial licensure pursuant to s. 494.00321 and adopted rule.
192 (3) A licensed mortgage broker that fails to meet the
193 requirements under this section for annual license renewal on or
194 before December 31, but that meets such requirements after
195 December 31 but before February 28, shall have such license
196 status changed to “failed to renew” pending review and renewal
197 by the office. A nonrefundable reinstatement fee of $250 shall
198 be charged in addition to and apart from any registry fees. The
199 license status may not be changed until the requirements of this
200 section have been met and all fees have been paid. If the
201 licensee fails to submit the required information and pay the
202 required fees by February 28, such license is expired and such
203 person must apply for a new mortgage broker license under s.
204 494.00321.
205 Section 7. Section 494.0036, Florida Statutes, is amended
206 to read:
207 494.0036 Mortgage broker branch office license and license
208 renewal.—
209 (1) Each branch office of a mortgage broker must be
210 licensed under this section.
211 (2) The office shall issue a mortgage broker branch office
212 license to a mortgage broker licensee after the office
213 determines that the licensee has submitted a completed
214 application for a branch office in a form prescribed by
215 commission rule and payment of an initial nonrefundable branch
216 office license fee of $225 per branch office. Application fees
217 may not be prorated for partial years of licensure. The branch
218 office license shall be issued in the name of the mortgage
219 broker that maintains the branch office. An application is
220 considered received for purposes of s. 120.60 upon receipt of a
221 completed application form as prescribed by commission rule, and
222 the required fees.
223 (3) A mortgage broker branch office license must be renewed
224 annually at the time of renewing the mortgage broker license
225 under s. 494.00322.
226 (a) In order to renew a branch office license, a mortgage
227 broker must, by December 31:
228 1. Submit a completed license renewal form as prescribed by
229 commission rule.
230 2. Submit a nonrefundable branch renewal fee of $225 per
231 branch office must be submitted at the time of renewal.
232 3. Submit additional information or documentation requested
233 by the office and required by rule concerning the licensee.
234 Additional information may include documents that may assist the
235 office in determining the applicant’s eligibility for licensure
236 renewal.
237 (b) The office may not renew a branch office license unless
238 the mortgage broker continues to meet the minimum requirements
239 for initial licensure pursuant to subsection (2) and commission
240 rule.
241 (c) A licensed branch office that fails to meet the
242 requirements under this section for annual license renewal on or
243 before December 31, but that meets such requirements after
244 December 31 but before February 28, shall have such license
245 status changed to “failed to renew” pending review and renewal
246 by the office. A nonrefundable reinstatement fee of $225 shall
247 be charged in addition to and apart from any registry fees. The
248 license status may not be changed until the requirements of this
249 section have been met and all fees have been paid. If the
250 licensee fails to submit the required information and pay the
251 required fees by February 28, such license is expired and the
252 mortgage broker licensee must apply for a new mortgage broker
253 branch office license under subsection (2).
254 Section 8. Section 494.0038, Florida Statutes, is amended
255 to read:
256 494.0038 Loan origination and Mortgage broker fees and
257 commissions disclosures.—
258 (1) A loan origination fee may not be paid except pursuant
259 to a written mortgage broker agreement between the mortgage
260 broker and the borrower which is signed and dated by the
261 principal loan originator or branch manager, and the borrower.
262 The unique registry identifier of each loan originator
263 responsible for providing loan originator services must be
264 printed on the mortgage broker agreement.
265 (a) The written mortgage broker agreement must describe the
266 services to be provided by the mortgage broker and specify the
267 amount and terms of the loan origination fee that the mortgage
268 broker is to receive.
269 1. Except for application and third-party fees, all fees
270 received by a mortgage broker from a borrower must be identified
271 as a loan origination fee.
272 2. All fees on the mortgage broker agreement must be
273 disclosed in dollar amounts.
274 3. All loan origination fees must be paid to a mortgage
275 broker.
276 (b) The agreement must be executed within 3 business days
277 after a mortgage loan application is accepted if the borrower is
278 present when the mortgage loan application is accepted. If the
279 borrower is not present, the licensee shall forward the
280 agreement to the borrower within 3 business days after the
281 licensee’s acceptance of the application and the licensee bears
282 the burden of proving that the borrower received and approved
283 the agreement.
284 (2) If the mortgage broker is to receive any payment of any
285 kind from the mortgage lender, the maximum total dollar amount
286 of the payment must be disclosed to the borrower in the written
287 mortgage broker agreement as described in paragraph (1)(a). The
288 commission may prescribe by rule an acceptable form for
289 disclosure of brokerage fees received from the lender. The
290 agreement must state the nature of the relationship with the
291 lender, describe how compensation is paid by the lender, and
292 describe how the mortgage interest rate affects the compensation
293 paid to the mortgage broker.
294 (a) The exact amount of any payment of any kind by the
295 lender to the mortgage broker must be disclosed in writing to
296 the borrower within 3 business days after the mortgage broker is
297 made aware of the exact amount of the payment from the lender
298 but not less than 3 business days before the execution of the
299 closing or settlement statement. The licensee bears the burden
300 of proving such notification was provided to the borrower.
301 Notification is waived if the exact amount of the payment is
302 accurately disclosed in the written mortgage broker agreement.
303 (b) The commission may prescribe by rule the form of
304 disclosure of brokerage fees.
305 (3) At the time a written mortgage broker agreement is
306 signed by the borrower or forwarded to the borrower for
307 signature, or at the time the mortgage broker business accepts
308 an application fee, credit report fee, property appraisal fee,
309 or any other third-party fee, but at least 3 business days
310 before execution of the closing or settlement statement, the
311 mortgage broker shall disclose in writing to any applicant for a
312 mortgage loan the following information:
313 (a) That the mortgage broker may not make mortgage loans or
314 commitments. The mortgage broker may make a commitment and may
315 furnish a lock-in of the rate and program on behalf of the
316 lender if the mortgage broker has obtained a written commitment
317 or lock-in for the loan from the lender on behalf of the
318 borrower for the loan. The commitment must be in the same form
319 and substance as issued by the lender.
320 (b) That the mortgage broker cannot guarantee acceptance
321 into any particular loan program or promise any specific loan
322 terms or conditions.
323 (c) A good faith estimate that discloses settlement charges
324 and loan terms.
325 1. Any amount collected in excess of the actual cost shall
326 be returned within 60 days after rejection, withdrawal, or
327 closing.
328 2. At the time a good faith estimate is provided to the
329 borrower, the loan originator must identify in writing an
330 itemized list that provides the recipient of all payments
331 charged the borrower, which, except for all fees to be received
332 by the mortgage broker, may be disclosed in generic terms, such
333 as, but not limited to, paid to lender, appraiser, officials,
334 title company, or any other third-party service provider. This
335 requirement does not supplant or is not a substitute for the
336 written mortgage broker agreement described in subsection (1).
337 The disclosure required under this subparagraph must be signed
338 and dated by the borrower.
339 (4) The disclosures required by this subsection must be
340 furnished in writing at the time an adjustable rate mortgage
341 loan is offered to the borrower and whenever the terms of the
342 adjustable rate mortgage loan offered materially change prior to
343 closing. The mortgage broker shall furnish the disclosures
344 relating to adjustable rate mortgages in a format prescribed by
345 ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
346 of the Federal Reserve System, as amended; its commentary, as
347 amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
348 1601 et seq., as amended; together with the Consumer Handbook on
349 Adjustable Rate Mortgages, as amended; published by the Federal
350 Reserve Board and the Federal Home Loan Bank Board. The licensee
351 bears the burden of proving such disclosures were provided to
352 the borrower.
353 (5) If the mortgage broker agreement includes a
354 nonrefundable application fee, the following requirements are
355 applicable:
356 (a) The amount of the application fee, which must be
357 clearly denominated as such, must be clearly disclosed.
358 (b) The specific services that will be performed in
359 consideration for the application fee must be disclosed.
360 (c) The application fee must be reasonably related to the
361 services to be performed and may not be based upon a percentage
362 of the principal amount of the loan or the amount financed.
363 (6) A mortgage broker may not accept any fee in connection
364 with a mortgage loan other than an application fee, credit
365 report fee, property appraisal fee, or other third-party fee
366 before obtaining a written commitment from a qualified lender.
367 (1)(7) A Any third-party fee entrusted to a mortgage broker
368 must immediately, upon receipt, be placed into a segregated
369 account with a financial institution located in the state the
370 accounts of which are insured by the Federal Government. Such
371 funds shall be held in trust for the payor and shall be kept in
372 the account until disbursement. Such funds may be placed in one
373 account if adequate accounting measures are taken to identify
374 the source of the funds.
375 (2)(8) A mortgage broker may not pay a commission to a any
376 person not licensed pursuant to this chapter.
377 (3)(9) This section does not prohibit a mortgage broker
378 from offering products and services, in addition to those
379 offered in conjunction with the loan origination process, for a
380 fee or commission.
381 Section 9. Subsections (2), (3), and (4) of section
382 494.004, Florida Statutes, are amended to read:
383 494.004 Requirements of licensees.—
384 (2) In every mortgage loan transaction, each licensee under
385 this part must notify a borrower of any material changes in the
386 terms of a mortgage loan previously offered to the borrower
387 within 3 business days after being made aware of such changes by
388 the mortgage lender but at least 3 business days before the
389 signing of the settlement or closing statement. The licensee
390 bears the burden of proving such notification was provided and
391 accepted by the borrower. A borrower may waive the right to
392 receive notice of a material change if the borrower determines
393 that the extension of credit is needed to meet a bona fide
394 personal financial emergency and the right to receive notice
395 would delay the closing of the mortgage loan. The imminent sale
396 of the borrower’s home at foreclosure during the 3-day period
397 before the signing of the settlement or closing statement is an
398 example of a bona fide personal financial emergency. In order to
399 waive the borrower’s right to receive notice, the borrower must
400 provide the licensee with a dated written statement that
401 describes the personal financial emergency, waives the right to
402 receive the notice, bears the borrower’s signature, and is not
403 on a printed form prepared by the licensee for the purpose of
404 such a waiver.
405 (2)(3) Each mortgage broker shall submit to the registry
406 reports of condition, which must be in such form and shall
407 contain such information as the registry may require. The
408 commission may prescribe by rule the deadline by which a
409 mortgage broker must file a report of condition. For purposes of
410 this section, the report of condition is synonymous with the
411 registry’s Mortgage Call Report.
412 (3)(4) A license issued under this part is not transferable
413 or assignable.
414 Section 10. Subsection (3) of section 494.0042, Florida
415 Statutes, is amended to read:
416 494.0042 Loan origination fees.—
417 (3) At the time of accepting a mortgage loan application, a
418 mortgage broker may receive from the borrower a nonrefundable
419 application fee. If the mortgage loan is funded, the
420 nonrefundable application fee shall be credited against the
421 amount owed as a result of the loan being funded. A person may
422 not receive any form of compensation for acting as a loan
423 originator other than a nonrefundable application fee or, a fee
424 based on the mortgage amount being funded, or a fee which
425 complies with s. 494.00421.
426 Section 11. Section 494.00421, Florida Statutes, is
427 repealed.
428 Section 12. Paragraph (b) of subsection (2) of section
429 494.00611, Florida Statutes, is amended to read:
430 494.00611 Mortgage lender license.—
431 (2) In order to apply for a mortgage lender license, an
432 applicant must:
433 (b) Designate a qualified principal loan originator who
434 meets the requirements of s. 494.00665 s.494.0035 on the
435 application form.
436 Section 13. Section 494.00612, Florida Statutes, is amended
437 to read:
438 494.00612 Mortgage lender license renewal.—
439 (1) In order to annually renew a mortgage lender license, a
440 mortgage lender must, by December 31:
441 (a) Submit a completed license renewal form as prescribed
442 by commission rule.
443 (b) Submit a nonrefundable renewal fee of $475, the $100
444 nonrefundable fee if required by s. 494.00172, and nonrefundable
445 fees to cover the cost of further fingerprint processing and
446 retention as prescribed by set forth in commission rule.
447 (c) Submit fingerprints in accordance with s.
448 494.00611(2)(d) for any new control persons who have not been
449 screened.
450 (d) Provide proof that the mortgage lender continues to
451 meet the applicable net worth requirement in a form prescribed
452 by commission rule.
453 (e) Authorize the registry to obtain an independent credit
454 report on each of the mortgage lender’s control persons from a
455 consumer reporting agency, and transmit or provide access to the
456 report to the office. The cost of the credit report shall be
457 borne by the licensee.
458 (f) Submit any additional information or documentation
459 requested by the office and required by rule concerning the
460 licensee. Additional information may include documentation of
461 pending and prior disciplinary and criminal history events,
462 including arrest reports and certified copies of charging
463 documents, plea agreements, judgments and sentencing documents,
464 documents relating to pretrial intervention, orders terminating
465 probation or supervised release, final administrative agency
466 orders, or other comparable documents that may provide the
467 office with the appropriate information to determine eligibility
468 for renewal of licensure.
469 (2) The office may not renew a mortgage lender license
470 unless the mortgage lender continues to meet the minimum
471 requirements for initial licensure pursuant to s. 494.00611 and
472 adopted rule.
473 (3) A licensed mortgage lender that fails to meet the
474 requirements under this section for annual license renewal on or
475 before December 31, but that meets such requirements after
476 December 31 but before February 28, shall have such license
477 status changed to “failed to renew” pending review and renewal
478 by the office. A nonrefundable reinstatement fee of $475 shall
479 be charged in addition to and apart from any registry fees. The
480 license status may not be changed until the requirements of this
481 section have been met and all fees have been paid. If the
482 licensee fails to submit the required information and pay the
483 required fees by February 28, such license is expired and such
484 person must apply for a new mortgage lender license under s.
485 494.00611.
486 Section 14. Section 494.0066, Florida Statutes, is amended
487 to read:
488 494.0066 Mortgage lender branch office license and license
489 renewal offices.—
490 (1) Each branch office of a mortgage lender must be
491 licensed under this section.
492 (2) The office shall issue a mortgage lender branch office
493 license to a mortgage lender licensee after the office
494 determines that the mortgage lender has submitted a completed
495 branch office application form as prescribed by commission rule
496 by the commission and an initial nonrefundable branch office
497 license fee of $225 per branch office. Application fees may not
498 be prorated for partial years of licensure. The branch office
499 application must include the name and license number of the
500 mortgage lender under this part, the name of the branch manager
501 in charge of the branch office, and the address of the branch
502 office. The branch office license shall be issued in the name of
503 the mortgage lender and must be renewed in conjunction with the
504 license renewal. An application is considered received for
505 purposes of s. 120.60 upon receipt of a completed branch office
506 renewal form, as prescribed by commission rule, and the required
507 fees.
508 (3) A mortgage lender branch office license must be renewed
509 annually at the time of renewing the mortgage lender license.
510 (a) In order to renew a branch office license, a mortgage
511 lender must, by December 31:
512 1. Submit a completed license renewal form as prescribed by
513 commission rule.
514 2. Submit a nonrefundable fee of $225 per branch office
515 must be submitted at the time of renewal.
516 3. Submit additional information or documentation requested
517 by the office and required by rule concerning the licensee.
518 Additional information may include documents that may provide
519 the office with the appropriate information to determine
520 eligibility for licensure renewal.
521 (b) The office may not renew a branch office license unless
522 the mortgage lender licensee continues to meet the minimum
523 requirements for initial licensure pursuant to this section and
524 adopted rule.
525 (c) A licensed branch office that fails to meet the
526 requirements under this section for annual license renewal on or
527 before December 31, but that meets such requirements after
528 December 31 but before February 28, shall have such license
529 status changed to “failed to renew” pending review and renewal
530 by the office. A nonrefundable reinstatement fee of $225 shall
531 be charged in addition to and apart from any registry fees. The
532 license status may not be changed until the requirements of this
533 section have been met and all fees have been paid. If the
534 licensee fails to submit the required information and pay the
535 required fees by February 28, such license is expired and the
536 mortgage lender licensee must apply for a new mortgage lender
537 branch office license under subsection (2).
538 Section 15. Subsections (8) through (13) of section
539 494.0067, Florida Statutes, are amended to read:
540 494.0067 Requirements of mortgage lenders.—
541 (8) Each mortgage lender shall provide an applicant for a
542 mortgage loan a good faith estimate of the costs the applicant
543 can reasonably expect to pay in obtaining a mortgage loan. The
544 good faith estimate of costs must be mailed or delivered to the
545 applicant within 3 business days after the licensee receives a
546 written loan application from the applicant. The estimate of
547 costs may be provided to the applicant by a person other than
548 the licensee making the loan. The good faith estimate must
549 identify the recipient of all payments charged to the borrower
550 and, except for all fees to be received by the mortgage broker
551 and the mortgage lender, may be disclosed in generic terms, such
552 as, but not limited to, paid to appraiser, officials, title
553 company, or any other third-party service provider. The licensee
554 bears the burden of proving such disclosures were provided to
555 the borrower. The commission may adopt rules that set forth the
556 disclosure requirements of this section.
557 (9) The disclosures in this subsection must be furnished in
558 writing at the time an adjustable rate mortgage loan is offered
559 to the borrower and whenever the terms of the adjustable rate
560 mortgage loan offered have a material change prior to closing.
561 The lender shall furnish the disclosures relating to adjustable
562 rate mortgages in a format prescribed by ss. 226.18 and 226.19
563 of Regulation Z of the Board of Governors of the Federal Reserve
564 System, as amended; its commentary, as amended; and the federal
565 Truth in Lending Act, 15 U.S.C. ss. 1601 et seq., as amended;
566 together with the Consumer Handbook on Adjustable Rate
567 Mortgages, as amended; published by the Federal Reserve Board
568 and the Federal Home Loan Bank Board. The licensee bears the
569 burden of proving such disclosures were provided to the
570 borrower.
571 (10) In every mortgage loan transaction, each mortgage
572 lender shall notify a borrower of any material changes in the
573 terms of a mortgage loan previously offered to the borrower
574 within 3 business days after being made aware of such changes by
575 the lender but at least 3 business days before signing the
576 settlement or closing statement. The licensee bears the burden
577 of proving such notification was provided and accepted by the
578 borrower. A borrower may waive the right to receive notice of a
579 material change if the borrower determines that the extension of
580 credit is needed to meet a bona fide personal financial
581 emergency and the right to receive notice would delay the
582 closing of the mortgage loan. The imminent sale of the
583 borrower’s home at foreclosure during the 3-day period before
584 the signing of the settlement or closing statement constitutes
585 an example of a bona fide personal financial emergency. In order
586 to waive the borrower’s right to receive notice, the borrower
587 must provide the licensee with a dated written statement that
588 describes the personal financial emergency, waives the right to
589 receive the notice, bears the borrower’s signature, and is not
590 on a printed form prepared by the licensee for the purpose of
591 such a waiver.
592 (8)(11) A mortgage lender may close loans in its own name
593 but may not service the loan for more than 4 months unless the
594 lender has a servicing endorsement. Only a mortgage lender who
595 continuously maintains a net worth of at least $250,000 may
596 obtain a servicing endorsement.
597 (9)(12) A mortgage lender must report to the office the
598 failure to meet the applicable net worth requirements of s.
599 494.00611 within 2 days after the mortgage lender’s knowledge of
600 such failure or after the mortgage lender should have known of
601 such failure.
602 (10)(13) Each mortgage lender shall submit to the registry
603 reports of condition which are in a form and which contain such
604 information as the registry may require. The commission may
605 prescribe by rule the deadline by which a mortgage lender must
606 file a report of condition. For purposes of this section, the
607 report of condition is synonymous with the registry’s Mortgage
608 Call Report.
609 Section 16. Section 494.0068, Florida Statutes, is
610 repealed.
611 Section 17. Subsection (1) of section 494.007, Florida
612 Statutes, is amended to read:
613 494.007 Commitment process.—
614 (1) If a commitment is issued, the mortgage lender shall
615 disclose in writing:
616 (a) The expiration date of the commitment;
617 (b) The mortgage amount, meaning the face amount of credit
618 provided to the borrower or in the borrower’s behalf;
619 (c) If the interest rate or other terms are subject to
620 change before expiration of the commitment:
621 1. The basis, index, or method, if any, which will be used
622 to determine the rate at closing. Such basis, index, or method
623 shall be established and disclosed with direct reference to the
624 movement of an interest rate index or of a national or regional
625 index that is available to and verifiable by the borrower and
626 beyond the control of the lender; or
627 2. The following statement, in at least 10-point bold type:
628 “The interest rate will be the rate established by the lender in
629 its discretion as its prevailing rate . . . days before
630 closing.”; and
631 (d) The amount of the commitment fee, if any, and whether
632 and under what circumstances the commitment fee is refundable;
633 and
634 (d)(e) The time, if any, within which the commitment must
635 be accepted by the borrower.
636 Section 18. Section 494.0073, Florida Statutes, is amended
637 to read:
638 494.0073 Mortgage lender when acting as a mortgage broker.
639 The provisions of this part do not prohibit a mortgage lender
640 from acting as a mortgage broker. However, in mortgage
641 transactions in which a mortgage lender acts as a mortgage
642 broker, the provisions of ss. 494.0038, 494.004(2), 494.0042,
643 and 494.0043(1), (2), and (3) apply.
644 Section 19. Sections 494.0078, 494.0079, 494.00791,
645 494.00792, 494.00793, 494.00794, 494.00795, 494.00796, and
646 494.00797, Florida Statutes, are repealed.
647 Section 20. Section 494.008, Florida Statutes, is repealed.
648 Section 21. This act shall take effect July 1, 2014.
