September 21, 2019
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CS/CS/HB 1125

1
A bill to be entitled
2An act relating to mortgages; amending s. 494.001, F.S.;
3revising definitions; amending s. 494.0014, F.S.;
4authorizing the Office of Financial Regulation to impose
5fines; amending s. 494.0029, F.S.; authorizing the office
6to take certain adverse actions on permits of certain
7mortgage business schools; providing additional
8requirements for such schools; amending s. 494.00295,
9F.S.; providing an additional professional continuing
10education requirement; authorizing the office to offer
11professional continuing education programs; specifying
12requirements for electronically transmitted and distance
13education courses; amending s. 494.0033, F.S.; revising
14mortgage broker license applicant requirements;
15authorizing an additional fee for reviewing mortgage
16broker's license tests; providing for review of the
17testing process; amending s. 494.0038, F.S.; providing
18additional disclosure requirements for mortgage brokerage
19businesses; amending s. 494.004, F.S.; specifying an
20additional notification requirement for mortgage broker
21licensees; providing disclosure requirements; authorizing
22a borrower to waive notification under certain
23circumstances; providing waiver requirements; amending s.
24494.0041, F.S.; specifying additional acts constituting
25grounds for certain disciplinary actions; providing for
26fines and penalties; amending s. 494.0064, F.S.; providing
27additional requirements for renewals of mortgage lender's
28licenses; amending s. 494.0067, F.S.; providing additional
29requirements for mortgage lender licenses; providing
30disclosure and notification requirements; authorizing a
31borrower to waive notification under certain
32circumstances; providing waiver requirements; amending s.
33494.0072, F.S.; specifying additional acts constituting
34grounds for certain disciplinary actions; providing fines
35and penalties; amending s. 494.0073, F.S.; providing for
36application of certain provisions to mortgage brokerage
37businesses; providing for adoption of rules by the
38Financial Services Commission; creating s. 817.545, F.S.;
39providing a definition; specifying criteria for committing
40the offense of mortgage fraud; providing for venue with
41respect to the committed offense; providing a criminal
42penalty; providing an effective date.
43
44Be It Enacted by the Legislature of the State of Florida:
45
46     Section 1.  Subsection (2) of section 494.001, Florida
47Statutes, is amended, and subsections (32), (33), and (34) are
48added to that section, to read:
49     494.001  Definitions.--As used in ss. 494.001-494.0077, the
50term:
51     (2)  "Act as a loan originator" means being employed by a
52mortgage lender or correspondent mortgage lender, for
53compensation or gain or in the expectation of compensation or
54gain, to negotiate, or offer to negotiate, or assist any
55licensed or exempt entity in negotiating the making of a
56mortgage loan, including, but not limited to, working with a
57licensed or exempt entity to structure a loan or discussing
58terms and conditions necessary for the delivery of a loan
59product. A natural person whose activities are ministerial and
60clerical, which may include quoting available interest rates or
61loan terms and conditions, is not acting as a loan originator.
62     (32)  "Mortgage loan application" means a submission of a
63borrower's financial information in anticipation of a credit
64decision, whether written or computer-generated, relating to a
65mortgage loan. If the submission does not state or identify a
66specific property, the submission is an application for a
67prequalification and not an application for a mortgage loan
68under this part. The subsequent addition of an identified
69property to the submission converts the submission to an
70application for a mortgage loan.
71     (33)  "Mortgage brokerage fee" means the total compensation
72to be received by a mortgage brokerage business for acting as a
73mortgage broker.
74     (34)  "Business day" means any calendar day except Sunday
75or a legal holiday.
76     Section 2.  Subsection (4) is added to section 494.0014,
77Florida Statutes, to read:
78     494.0014  Cease and desist orders; administrative fines;
79refund orders.--
80     (4)  The office may impose upon any person who makes or
81brokers a loan, or any mortgage business school, a fine for
82violations of any provision of ss. 494.001-494.00295 or any rule
83or order issued under ss. 494.001-494.00295 in an amount not
84exceeding $5,000 for each separate count or offense.
85     Section 3.  Paragraph (f) is added to subsection (1), and
86paragraphs (g) and (h) are added to subsection (2) of section
87494.0029, Florida Statutes, to read:
88     494.0029  Mortgage business schools.--
89     (1)
90     (f)  In addition to the remedies set forth in s. 494.0014,
91the office may revoke, suspend, or place on probation the permit
92of any mortgage business school that fails to meet the
93requirements of this section, subject to all reasonable
94conditions that the office specifies.
95     (2)
96     (g)  A school permitted under this section must conduct
97classes on the basis of a 50-minute classroom hour in accordance
98with the requirements of this chapter and commission rules.
99     (h)  Each school permitted under this section is
100responsible for developing procedures to confirm, and for
101actually confirming, the identity of each student attending any
102course offering.
103     Section 4.  Section 494.00295, Florida Statutes, is amended
104to read:
105     494.00295  Professional continuing education.--
106     (1)  Mortgage brokers, and the principal representatives
107and loan originators of a mortgage lender, correspondent
108mortgage lender, or mortgage lender pursuant to s. 494.0065,
109must successfully complete at least 14 hours of professional
110continuing education covering primary and subordinate mortgage
111financing transactions and the provisions of this chapter during
112the 2-year period immediately preceding the renewal deadline for
113a mortgage broker, mortgage lender, correspondent mortgage
114lender, or mortgage lender pursuant to s. 494.0065. A minimum of
1154 hours shall cover the provisions of this chapter and the rules
116adopted under this chapter. At the time of license renewal, a
117licensee must certify to the office that the professional
118continuing education requirements of this section have been met.
119Licensees shall maintain records documenting compliance with
120this subsection for a period of 4 years. The requirements for
121professional continuing education are waived for the license
122renewal of a mortgage broker who has completed the 24-hour
123prelicensing classroom education requirement of s. 494.0033(3)
124within 90 days of for the biennial license period immediately
125following the period in which the person became licensed as a
126mortgage broker. The requirements for professional continuing
127education for a principal representative are waived for the
128license renewal of a mortgage lender, correspondent mortgage
129lender, or mortgage lender pursuant to s. 494.0065 for the
130biennial license period immediately following the period in
131which the principal representative completed the 24 hours of
132classroom education and passed a written test in order to
133qualify to be a principal representative.
134     (2)  Professional continuing education programs must
135contribute directly to the professional competency of the
136participants, may only be offered by permitted mortgage business
137schools, the office, or entities specifically exempted from
138permitting as mortgage business schools, and may include
139electronically transmitted or distance education courses.
140     (3)(a)  All electronically transmitted courses shall
141require that the time spent attending electronically transmitted
142professional education courses is equal to the number of
143qualifying hours awarded to participants for course attendance.
144Before allowing a course participant to complete a course and
145receive a certificate of course completion, the course provider
146shall ensure that the course participant has:
147     1.  Logged the required number of hours for the particular
148timed module.
149     2.  Completed a test that comprehensively covers the course
150content for the particular timed module.
151     3.  Correctly answered all test questions for the
152particular timed module.
153     (b)  All distance education course participants shall
154successfully complete a test that comprehensively covers course
155content in order to receive a certificate of course completion.
156Distance education providers shall not provide answers to test
157questions to course participants and shall not issue a
158certificate of course completion to any course participant who
159has failed to correctly answer at least 75 percent of the total
160test questions. The test must consist of at least 100 questions.
161     (4)(3)  The commission shall adopt rules pursuant to ss.
162120.536(1) and 120.54 necessary to administer this section,
163including rules governing qualifying hours for professional
164continuing education programs and standards for electronically
165transmitted or distance education courses, including course
166completion requirements.
167     Section 5.  Paragraphs (a) and (b) of subsection (2) of
168section 494.0033, Florida Statutes, are amended to read:
169     494.0033  Mortgage broker's license.--
170     (2)  Each initial application for a mortgage broker's
171license must be in the form prescribed by rule of the
172commission. The commission may require each applicant to provide
173any information reasonably necessary to make a determination of
174the applicant's eligibility for licensure. The office shall
175issue an initial license to any natural person who:
176     (a)  Is at least 18 years of age and has a high school
177diploma or its equivalent.
178     (b)  Has passed a written test adopted and administered by
179the office, or has passed an electronic test adopted and
180administered by the office or a third party approved by the
181office, which is designed to determine competency in primary and
182subordinate mortgage financing transactions as well as to test
183knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
184thereto. The commission may prescribe by rule an additional fee
185that may not exceed $100 for the electronic version of the
186mortgage broker test. The commission may waive by rule the
187examination requirement for any person who has passed a test
188approved by the Conference of State Bank Supervisors, the
189American Association of Residential Mortgage Regulators, or the
190United States Department of Housing and Urban Development if the
191test covers primary and subordinate mortgage financing
192transactions. The commission may adopt rules prescribing an
193additional fee that may not exceed $50 for an applicant to
194review his or her completed and graded mortgage broker test. The
195commission may adopt rules regarding the administration of the
196testing process, including, but not limited to, procedures
197relating to pretest registration, test security, scoring,
198content, result notification, retest procedures and fees,
199postexamination review, and challenge provisions.
200
201The commission may require by rule information concerning any
202such applicant or person, including, but not limited to, his or
203her full name and any other names by which he or she may have
204been known, age, social security number, qualifications and
205educational and business history, and disciplinary and criminal
206history.
207     Section 6.  Section 494.0038, Florida Statutes, is amended
208to read:
209     494.0038  Mortgage broker disclosures.--
210     (1)(a)1.  A person may not receive a mortgage brokerage fee
211for acting as a mortgage brokerage business except pursuant to a
212written mortgage brokerage agreement between the mortgage
213brokerage business and the borrower that is signed and dated by
214the business and the borrower.
215     2.  The written mortgage brokerage agreement must describe
216the services to be provided by the mortgage brokerage business
217and specify the amount and terms of the mortgage brokerage fee
218that the mortgage brokerage business is to receive. The written
219mortgage brokerage agreement must be executed within 3 business
220days after a mortgage loan application is accepted if the
221borrower is present when the application is accepted. If the
222borrower is not present when the is application accepted, the
223licensee shall forward the written mortgage brokerage agreement
224to the borrower within 3 business days after the licensee's
225acceptance of the application, and the licensee bears the burden
226of proving that the borrower received and approved the written
227mortgage brokerage agreement.
228     (b)1.  If the mortgage brokerage business is to receive any
229payment of any kind from the lender, the maximum total dollar
230amount of the payment must be disclosed to the borrower in the
231written mortgage brokerage agreement as described in paragraph
232(a). The commission may prescribe by rule an acceptable form for
233disclosure of brokerage fees received from the lender. The
234mortgage brokerage agreement must state the nature of the
235relationship with the lender, describe how compensation is paid
236by the lender, and describe how the mortgage interest rate
237affects the compensation paid to the mortgage brokerage
238business. If any of the rates, points, fees, and other terms
239quoted by or on behalf of the lender are to be received by the
240mortgage brokerage business, such fact shall be specifically
241disclosed to the borrower.
242     2.  The exact amount of any payment of any kind by the
243lender to the mortgage brokerage business must be disclosed in
244writing to the borrower within 3 business days after the
245mortgage brokerage business is made aware of the exact amount of
246the payment from the lender but no later than 3 business days
247prior to the execution of the closing or settlement statement.
248The licensee bears the burden of proving such notification was
249provided to the borrower. If the mortgage brokerage fee is for
250brokering a loan for a particular program under which the
251brokerage fee varies according to the terms of the loan, the
252brokerage fee may be disclosed as a range of fees at the time of
253application. The mortgage broker shall, in such instance,
254disclose the nature of the fee arrangement to the borrower, and
255the exact amount of the fee must be disclosed at settlement or
256closing.
257     (c)  The commission may prescribe by rule the form of
258disclosure of brokerage fees.
259     (2)  At the time a written mortgage brokerage agreement is
260executed by the borrower or forwarded to the borrower for
261execution, or at the time the mortgage brokerage business
262accepts an application fee, credit report fee, property
263appraisal fee, or any other third-party fee, but not fewer than
2643 business days prior to execution of the closing or settlement
265statement, the mortgage brokerage business shall disclose in
266writing to any applicant for a mortgage loan the following
267information:
268     (a)  That such mortgage brokerage business may not make
269mortgage loans or commitments. The mortgage brokerage business
270may make a commitment and may furnish a lock-in of the rate and
271program on behalf of the lender when the mortgage brokerage
272business has obtained a written commitment or lock-in for the
273loan from the lender on behalf of the borrower for the loan. The
274commitment must be in the same form and substance as issued by
275the lender.
276     (b)  That such mortgage brokerage business cannot guarantee
277acceptance into any particular loan program or promise any
278specific loan terms or conditions.
279     (c)  A good faith estimate, signed and dated by the
280borrower, that discloses of the total amount of each of the fees
281that the borrower may reasonably expect to pay if the loan is
282closed, including, but not limited to, fees earned by the
283mortgage brokerage business, lender fees, third-party fees, and
284official fees, together with credit report fee, property
285appraisal fee, or any other third-party fee and the terms and
286conditions for obtaining a refund of such fees, if any. Any
287amount collected in excess of the actual cost shall be returned
288within 60 days after rejection, withdrawal, or closing. The good
289faith estimate must identify the recipient of all payments
290charged the borrower and, except for all fees to be received by
291the mortgage brokerage business, may be disclosed in generic
292terms, such as, but not limited to, paid to lender, appraiser,
293officials, title company, or any other third-party service
294provider. This requirement does not supplant or is not a
295substitute for the written mortgage brokerage agreement
296described in subsection (1).
297     (3)  The disclosures required by this subsection must be
298furnished in writing at the time an adjustable rate mortgage
299loan is offered to the borrower and whenever the terms of the
300adjustable rate mortgage loan offered materially change prior to
301closing. The broker shall furnish the disclosures relating to
302adjustable rate mortgages in a format prescribed by ss. 226.18
303and 226.19 of Regulation Z of the Board of Governors of the
304Federal Reserve System, as amended, its commentary, as amended,
305and the federal Truth in Lending Act, 15 U.S.C. ss. 1601 et
306seq., as amended, together with the Consumer Handbook on
307Adjustable Rate Mortgages, as amended, published by the Federal
308Reserve Board and the Federal Home Loan Bank Board. The licensee
309bears the burden of proving such disclosures were provided to
310the borrower.
311     (4)(3)  If the mortgage brokerage agreement includes a
312nonrefundable application fee, the following requirements are
313applicable:
314     (a)  The amount of the application fee, which must be
315clearly denominated as such, shall be clearly disclosed.
316     (b)  The specific services that will be performed in
317consideration for the application fee shall be disclosed.
318     (c)  The application fee must be reasonably related to the
319services to be performed and may not be based upon a percentage
320of the principal amount of the loan or the amount financed.
321     (5)(4)  A mortgage brokerage business may not accept any
322fee in connection with a mortgage loan other than an application
323fee, credit report fee, property appraisal fee, or other third-
324party fee prior to obtaining a written commitment from a
325qualified lender.
326     (6)(5)  Any third-party fee entrusted to a mortgage
327brokerage business shall immediately, upon receipt, be placed
328into a segregated account with a financial institution located
329in the state the accounts of which are insured by the Federal
330Government. Such funds shall be held in trust for the payor and
331shall be kept in the account until disbursement. Such funds may
332be placed in one account if adequate accounting measures are
333taken to identify the source of the funds.
334     (7)(6)  All mortgage brokerage fees shall be paid to a
335mortgage brokerage business licensee.
336     (8)(7)  This section does not prohibit a mortgage brokerage
337business from offering products and services, in addition to
338those offered in conjunction with the loan origination process,
339for a fee or commission.
340     Section 7.  Subsection (8) is added to section 494.004,
341Florida Statutes, to read:
342     494.004  Requirements of licensees.--
343     (8)(a)  In every mortgage loan transaction, each licensee
344under ss. 494.003-494.0043 shall notify a borrower of any
345material changes in the terms of a mortgage loan previously
346offered to the borrower within 3 business days after being made
347aware of such changes by the lender but not less than 3 business
348days before the signing of the settlement or closing statement.
349The licensee bears the burden of proving such notification was
350provided and accepted by the borrower.
351     (b)  A borrower may waive the right to receive notice of a
352material change that is granted under paragraph (a) if the
353borrower determines that the extension of credit is needed to
354meet a bona fide personal financial emergency and the right to
355receive notice would delay the closing of the mortgage loan. The
356imminent sale of the borrower's home at foreclosure during the
3573-day period before the signing of the settlement or closing
358statement constitutes an example of a bona fide personal
359financial emergency. In order to waive the borrower's right to
360receive notice not less than 3 business days before the signing
361of the settlement or closing statement of any such material
362change, the borrower must provide the licensee with a dated
363written statement that describes the personal financial
364emergency, waives the right to receive the notice, bears the
365borrower's signature, and is not on a printed form prepared by
366the licensee for the purpose of such a waiver.
367     Section 8.  Paragraph (v) is added to subsection (2) of
368section 494.0041, Florida Statutes, to read:
369     494.0041  Administrative penalties and fines; license
370violations.--
371     (1)  Whenever the office finds a person in violation of an
372act specified in subsection (2), it may enter an order imposing
373one or more of the following penalties against the person:
374     (a)  Revocation of a license or registration.
375     (b)  Suspension of a license or registration subject to
376reinstatement upon satisfying all reasonable conditions that the
377office specifies.
378     (c)  Placement of the licensee, registrant, or applicant on
379probation for a period of time and subject to all reasonable
380conditions that the office specifies.
381     (d)  Issuance of a reprimand.
382     (e)  Imposition of a fine in an amount not exceeding $5,000
383for each count or separate offense.
384     (f)  Denial of a license or registration.
385     (2)  Each of the following acts constitutes a ground for
386which the disciplinary actions specified in subsection (1) may
387be taken:
388     (v)  In any mortgage transaction, violating any provision
389of the federal Real Estate Settlement Procedure Act, as amended,
39012 U.S.C. ss. 2601 et seq., the federal Truth In Lending Act, as
391amended, 15 U.S.C. ss. 1601 et seq., or any regulations adopted
392under such acts.
393     Section 9.  Subsection (1) of section 494.0064, Florida
394Statutes, is amended to read:
395     494.0064  Renewal of mortgage lender's license; branch
396office license renewal.--
397     (1)(a)  The office shall renew a mortgage lender license
398upon receipt of a completed renewal form, certification from the
399licensee that the licensee currently meets the minimum net worth
400requirements of s. 494.0061 or s. 494.0065, certification from
401the licensee that during the preceding 2 years the licensee's
402principal representative and loan originators have completed the
403professional continuing education requirements of s. 494.00295,
404and the nonrefundable renewal fee of $575. The office shall
405renew a correspondent lender license upon receipt of a completed
406renewal form, certification from the licensee that the licensee
407currently meets the minimum net worth requirements of s.
408494.0062, certification from the licensee that during the
409preceding 2 years the licensee's principal representative and
410loan originators have completed the professional continuing
411education requirements of s. 494.00295, and a nonrefundable
412renewal fee of $475. Each licensee shall pay at the time of
413renewal a nonrefundable fee of $325 for the renewal of each
414branch office license.
415     (b)  A licensee shall also submit, as part of the renewal
416form, certification that during the preceding 2 years the
417licensee's principal representative and loan originators have
418completed the professional continuing education requirements of
419s. 494.00295.
420     Section 10.  Subsection (8) and paragraph (a) of subsection
421(10) of section 494.0067, Florida Statutes, are amended, and
422subsections (11) and (12) are added to that section, to read:
423     494.0067  Requirements of licensees under ss. 494.006-
424494.0077.--
425     (8)  Each licensee under ss. 494.006-494.0077 shall provide
426an applicant for a mortgage loan a good faith estimate of the
427costs the applicant can reasonably expect to pay in obtaining a
428mortgage loan. The good faith estimate of costs shall be mailed
429or delivered to the applicant within a reasonable time after the
430licensee receives a written loan application from the applicant.
431The estimate of costs may be provided to the applicant by a
432person other than the licensee making the loan. The good faith
433estimate must identify the recipient of all payments charged to
434the borrower and, except for all fees to be received by the
435mortgage brokerage business and the mortgage lender or
436correspondent mortgage lender, may be disclosed in generic
437terms, such as, but not limited to, paid to appraiser,
438officials, title company, or any other third-party service
439provider. The licensee bears the burden of proving such
440disclosures were provided to the borrower. The commission may
441adopt rules that set forth the disclosure requirements of this
442section.
443     (10)(a)  Each mortgage lender or correspondent mortgage
444lender licensee shall require the principal representative and
445all loan originators, not currently licensed as mortgage brokers
446pursuant to s. 494.0033, who perform services for the licensee
447to complete 14 hours of professional continuing education during
448each biennial license period. The education shall cover primary
449and subordinate mortgage financing transactions and the
450provisions of this chapter and the rules adopted under this
451chapter.
452     (11)  The disclosures in this subsection must be furnished
453in writing at the time an adjustable rate mortgage loan is
454offered to the borrower and whenever the terms of the adjustable
455rate mortgage loan offered have a material change prior to
456closing. The lender shall furnish the disclosures relating to
457adjustable rate mortgages in a format prescribed by ss. 226.18
458and 226.19 of Regulation Z of the Board of Governors of the
459Federal Reserve System, as amended, its commentary, as amended,
460and the federal Truth in Lending Act, 15 U.S.C. ss. 1601 et
461seq., as amended, together with the Consumer Handbook on
462Adjustable Rate Mortgages, as amended, published by the Federal
463Reserve Board and the Federal Home Loan Bank Board. The licensee
464bears the burden of proving such disclosures were provided to
465the borrower.
466     (12)(a)  In every mortgage loan transaction, each licensee
467under ss. 494.006-494.0077 shall notify a borrower of any
468material changes in the terms of a mortgage loan previously
469offered to the borrower within 3 business days after being made
470aware of such changes by the lender but not less than 3 business
471days before the signing of the settlement or closing statement.
472The licensee bears the burden of proving such notification was
473provided and accepted by the borrower.
474     (b)  A borrower may waive the right to receive notice of a
475material change that is granted under paragraph (a) if the
476borrower determines that the extension of credit is needed to
477meet a bona fide personal financial emergency and the right to
478receive notice would delay the closing of the mortgage loan. The
479imminent sale of the borrower's home at foreclosure during the
4803-day period before the signing of the settlement or closing
481statement constitutes an example of a bona fide personal
482financial emergency. In order to waive the borrower's right to
483receive notice not less than 3 business days before the signing
484of the settlement or closing statement of any such material
485change, the borrower must provide the licensee with a dated
486written statement that describes the personal financial
487emergency, waives the right to receive the notice, bears the
488borrower's signature, and is not on a printed form prepared by
489the licensee for the purpose of such a waiver.
490     Section 11.  Paragraph (v) is added to subsection (2) of
491section 494.0072, Florida Statutes, subsection (3) of that
492section is amended, and subsection (5) is added to that section,
493to read:
494     494.0072  Administrative penalties and fines; license
495violations.--
496     (1)  Whenever the office finds a person in violation of an
497act specified in subsection (2), it may enter an order imposing
498one or more of the following penalties against that person:
499     (a)  Revocation of a license or registration.
500     (b)  Suspension of a license or registration, subject to
501reinstatement upon satisfying all reasonable conditions that the
502office specifies.
503     (c)  Placement of the licensee or applicant on probation
504for a period of time and subject to all reasonable conditions
505that the office specifies.
506     (d)  Issuance of a reprimand.
507     (e)  Imposition of a fine in an amount not exceeding $5,000
508for each count or separate offense.
509     (f)  Denial of a license or registration.
510     (2)  Each of the following acts constitutes a ground for
511which the disciplinary actions specified in subsection (1) may
512be taken:
513     (v)  In any mortgage transaction, violating any provision
514of the federal Real Estate Settlement Procedure Act, as amended,
51512 U.S.C. ss. 2601 et seq., the federal Truth In Lending Act, as
516amended, 15 U.S.C. ss. 1601 et seq., or any regulations adopted
517under such acts.
518     (3)  A mortgage lender or correspondent mortgage lender is
519subject to the disciplinary actions specified in subsection (1)
520if any officer, member, director, control person, joint
521venturer, or ultimate equitable owner of a 10-percent or greater
522interest in the mortgage lender or correspondent mortgage
523lender, associate, or employee of the mortgage lender or
524correspondent mortgage lender violates or has violated any
525provision of subsection (2).
526     (5)  A principal representative of a mortgage lender or
527correspondent mortgage lender is subject to the disciplinary
528actions specified in subsection (1) for violations of subsection
529(2) by associates or employees in the course of an association
530or employment with the correspondent mortgage lender or the
531mortgage lender. The principal representative is only subject to
532suspension or revocation for associate or employee actions if
533there is a pattern of repeated violations by associates or
534employees or if the principal broker or principal representative
535had knowledge of the violations.
536     Section 12.  Section 494.0073, Florida Statutes, is amended
537to read:
538     494.0073  Mortgage lender or correspondent mortgage lender
539when acting as a mortgage brokerage business.--Sections 494.006-
540494.006-494.0077 do not prohibit a mortgage lender or
541correspondent mortgage lender from acting as a mortgage
542brokerage business. However, in mortgage transactions in which a
543mortgage lender or correspondent mortgage lender acts as a
544mortgage brokerage business, the provisions of ss. 494.0038,
545494.0042, 494.004(8), and 494.0043(1), (2), and (3) apply.
546     Section 13.  Section 817.545, Florida Statutes, is created
547to read:
548     817.545  Mortgage fraud.--
549     (1)  For purposes of this section, the term "mortgage
550lending process" means the process through which a person seeks
551or obtains a residential mortgage loan, including, but not
552limited to, solicitation, application or origination,
553negotiation of terms, third-party provider services,
554underwriting, signing and closing, and funding of the loan.
555Documents involved in the mortgage lending process include, but
556are not limited to, mortgages, deeds, surveys, inspection
557reports, uniform residential loan applications, or other loan
558applications; appraisal reports; HUD-1 settlement statements;
559supporting personal documentation for loan applications such as
560W-2 forms, verifications of income and employment, credit
561reports, bank statements, tax returns, and payroll stubs; and
562any required disclosures.
563     (2)  A person commits the offense of mortgage fraud if,
564with the intent to defraud, the person knowingly:
565     (a)  Makes any material misstatement, misrepresentation, or
566omission during the mortgage lending process with the intention
567that the misstatement, misrepresentation, or omission will be
568relied on by a mortgage lender, borrower, or any other person or
569entity involved in the mortgage lending process, provided that
570omissions on a loan application regarding employment, income, or
571assets for a loan that does not require this information shall
572not be a material omission for purposes of this paragraph.
573     (b)  Uses or facilitates the use of any material
574misstatement, misrepresentation, or omission during the mortgage
575lending process with the intention that the material
576misstatement, misrepresentation, or omission will be relied on
577by a mortgage lender, borrower, or any other person or entity
578involved in the mortgage lending process, provided that
579omissions on a loan application regarding employment, income, or
580assets for a loan that does not require this information shall
581not be a material omission for purposes of this paragraph.
582     (c)  Receives any proceeds or any other funds in connection
583with the mortgage lending process that the person knew resulted
584from a violation of paragraph (a) or paragraph (b).
585     (d)  Files or causes to be filed with the clerk of the
586circuit court for any county of this state a mortgage lending
587process document that contains a material misstatement,
588misrepresentation, or omission.
589     (3)  An offense of mortgage fraud shall not be predicated
590solely upon information lawfully disclosed under federal
591disclosure laws, regulations, or interpretations related to the
592mortgage lending process.
593     (4)  For the purpose of venue under this section, any
594violation of this section shall be considered to have been
595committed:
596     (a)  In the county in which the real property is located;
597or
598     (b)  In any county in which a material act was performed in
599furtherance of the violation.
600     (5)  Any person who violates subsection (2) commits a
601felony of the third degree, punishable as provided in s.
602775.082, s. 775.083, or s. 775.084.
603     Section 14.  This act shall take effect October 1, 2007.


CODING: Words stricken are deletions; words underlined are additions.
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