January 22, 2019
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Senate Bill 1824

Senate Bill sb1824c1

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    Florida Senate - 2007                           CS for SB 1824

    By the Committee on Banking and Insurance; and Senator Fasano





    597-2108-07

  1                      A bill to be entitled

  2         An act relating to mortgage brokering and

  3         lending; amending s. 494.001, F.S.; revising

  4         definitions; amending s. 494.0014, F.S.;

  5         authorizing the Office of Financial Regulation

  6         to impose fines; amending s. 494.0029, F.S.;

  7         authorizing the office to take certain adverse

  8         actions on permits of certain mortgage business

  9         schools; providing additional requirements for

10         such schools; amending s. 494.00295, F.S.;

11         providing an additional professional continuing

12         education requirement; authorizing the office

13         to offer professional continuing education

14         programs; specifying requirements for

15         electronically transmitted and distance

16         education courses; amending s. 494.0033, F.S.;

17         revising mortgage broker license applicant

18         requirements; authorizing an additional fee for

19         reviewing mortgage broker's license tests;

20         providing for review of the testing process;

21         amending s. 494.0038, F.S.; providing

22         additional disclosure requirements for mortgage

23         brokerage businesses; amending s. 494.004,

24         F.S.; specifying an additional notification

25         requirement for mortgage broker licensees;

26         authorizing the commission to adopt rules;

27         amending s. 494.0041, F.S.; specifying

28         additional acts constituting grounds for

29         certain disciplinary actions; providing for

30         fines and penalties; amending s. 494.0064,

31         F.S.; providing additional requirements for

                                  1

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    Florida Senate - 2007                           CS for SB 1824
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 1         renewals of mortgage lender's licenses;

 2         amending s. 494.0067, F.S.; providing

 3         additional requirements for mortgage lender

 4         licenses; providing disclosure requirements;

 5         amending s. 494.0072, F.S.; specifying

 6         additional acts constituting grounds for

 7         certain disciplinary actions; providing fines

 8         and penalties; amending s. 494.0073, F.S.;

 9         providing for application of certain provisions

10         to mortgage brokerage businesses; providing for

11         adoption of rules by the Financial Services

12         Commission; providing an effective date.

13  

14  Be It Enacted by the Legislature of the State of Florida:

15  

16         Section 1.  Subsection (2) of section 494.001, Florida

17  Statutes, is amended, and subsections (32), (33), and (34) are

18  added to that section, to read:

19         494.001  Definitions.--As used in ss. 494.001-494.0077,

20  the term:

21         (2)  "Act as a loan originator" means being employed by

22  a mortgage lender or correspondent mortgage lender, for

23  compensation or gain or in the expectation of compensation or

24  gain, to negotiate, or offer to negotiate, or assist any

25  licensed or exempt entity in negotiating the making of a

26  mortgage loan, including, but not limited to, working with a

27  licensed or exempt entity to structure a loan or discussing

28  terms and conditions necessary for the delivery of a loan

29  product. A natural person whose activities are ministerial and

30  clerical, which may include quoting available interest rates

31  

                                  2

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    Florida Senate - 2007                           CS for SB 1824
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 1  or loan terms and conditions, is not acting as a loan

 2  originator.

 3         (32)  "Mortgage loan application" means a submission of

 4  a borrower's financial information in anticipation of a credit

 5  decision, whether written or computer-generated, relating to a

 6  mortgage loan. If the submission does not state or identify a

 7  specific property, the submission is an application for a

 8  prequalification and not an application for a mortgage loan

 9  under this part. The subsequent addition of an identified

10  property to the submission converts the submission to an

11  application for a mortgage loan.

12         (33)  "Mortgage brokerage fee" means the total

13  compensation to be received by a mortgage business for acting

14  as a mortgage broker.

15         (34)  "Business day" means any calendar day except

16  Sunday or a legal holiday.

17         Section 2.  Section 494.0014, Florida Statutes, is

18  amended to read:

19         494.0014  Cease and desist orders; administrative

20  fines; refund orders.--

21         (1)  The office has the power to issue and serve upon

22  any person an order to cease and desist and to take corrective

23  action whenever it has reason to believe the person is

24  violating, has violated, or is about to violate any provision

25  of ss. 494.001-494.0077, any rule or order issued under ss.

26  494.001-494.0077, or any written agreement between the person

27  and the office. All procedural matters relating to issuance

28  and enforcement of such a cease and desist order are governed

29  by the Administrative Procedure Act.

30         (2)  The office has the power to order the refund of

31  any fee directly or indirectly assessed and charged on a

                                  3

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    Florida Senate - 2007                           CS for SB 1824
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 1  mortgage loan transaction which is unauthorized or exceeds the

 2  maximum fee specifically authorized in ss. 494.001-494.0077.

 3         (3)  The office may prohibit the association by a

 4  mortgage broker business, or the employment by a mortgage

 5  lender or correspondent mortgage lender, of any person who has

 6  engaged in a pattern of misconduct while an associate of a

 7  mortgage brokerage business or an employee of a mortgage

 8  lender or correspondent mortgage lender. For the purpose of

 9  this subsection, the term "pattern of misconduct" means the

10  commission of three or more violations of ss. 494.001-494.0077

11  or the provisions of chapter 494 in effect prior to October 1,

12  1991, during any 1-year period or any criminal conviction for

13  violating ss. 494.001-494.0077 or the provisions of chapter

14  494 in effect prior to October 1, 1991.

15         (4)  The office may impose upon any person who makes or

16  brokers a loan, or any mortgage business school, a fine for

17  violations of any provision of ss. 494.001-494.00295 or any

18  rule or order issued under ss. 494.001-494.00295 in an amount

19  not exceeding $5,000 for each separate count or offense.

20         Section 3.  Paragraph (f) is added to subsection (1)

21  and paragraphs (g) and (h) are added to subsection (2) of

22  section 494.0029, Florida Statutes, to read:

23         494.0029  Mortgage business schools.--

24         (1)

25         (f)  In addition to the remedies set forth in s.

26  494.0014, the office may revoke, suspend, or place on

27  probation the permit of any mortgage business school that

28  fails to meet the requirements of this section, subject to all

29  reasonable conditions that the office specifies.

30         (2)

31  

                                  4

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    Florida Senate - 2007                           CS for SB 1824
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 1         (g)  A school permitted under this section must conduct

 2  classes on the basis of a 50-minute classroom hour in

 3  accordance with the requirements of this chapter and

 4  commission rules.

 5         (h)  Each school permitted under this section is

 6  responsible for developing procedures to confirm, and for

 7  actually confirming, the identity of each student attending

 8  any course offering.

 9         Section 4.  Section 494.00295, Florida Statutes, is

10  amended to read:

11         494.00295  Professional continuing education.--

12         (1)  Mortgage brokers, and the principal

13  representatives and loan originators of a mortgage lender,

14  correspondent mortgage lender, or mortgage lender pursuant to

15  s. 494.0065, must successfully complete at least 14 hours of

16  professional continuing education covering primary and

17  subordinate mortgage financing transactions and the provisions

18  of this chapter during the 2-year period immediately preceding

19  the renewal deadline for a mortgage broker, mortgage lender,

20  correspondent mortgage lender, or mortgage lender pursuant to

21  s. 494.0065. A minimum of 4 hours shall cover the provisions

22  of this chapter and the rules adopted under this chapter. At

23  the time of license renewal, a licensee must certify to the

24  office that the professional continuing education requirements

25  of this section have been met. Licensees shall maintain

26  records documenting compliance with this subsection for a

27  period of 4 years. The requirements for professional

28  continuing education are waived for the license renewal of a

29  mortgage broker who has completed the 24-hour prelicensing

30  classroom education requirement of s. 494.0033(3) within 90

31  days of for the biennial license period immediately following

                                  5

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    Florida Senate - 2007                           CS for SB 1824
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 1  the period in which the person became licensed as a mortgage

 2  broker. The requirements for professional continuing education

 3  for a principal representative are waived for the license

 4  renewal of a mortgage lender, correspondent mortgage lender,

 5  or mortgage lender pursuant to s. 494.0065 for the biennial

 6  license period immediately following the period in which the

 7  principal representative completed the 24 hours of classroom

 8  education and passed a written test in order to qualify to be

 9  a principal representative.

10         (2)  Professional continuing education programs must

11  contribute directly to the professional competency of the

12  participants, may only be offered by permitted mortgage

13  business schools, the office, or entities specifically

14  exempted from permitting as mortgage business schools, and may

15  include electronically transmitted or distance education

16  courses.

17         (3)(a)  All electronically transmitted courses shall

18  require that the time spent attending electronically

19  transmitted professional education courses is equal to the

20  number of qualifying hours awarded to participants for course

21  attendance. Before allowing a course participant to complete a

22  course and receive a certificate of course completion, the

23  course provider shall ensure that the course participant has:

24         1.  Logged the required number of hours for the

25  particular timed module.

26         2.  Completed a test that comprehensively covers the

27  course content for the particular timed module.

28         3.  Correctly answered all test questions for the

29  particular timed module.

30         (b)  All distance education course participants shall

31  successfully complete a test that comprehensively covers

                                  6

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    Florida Senate - 2007                           CS for SB 1824
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 1  course content in order to receive a certificate of course

 2  completion. Distance education providers shall not provide

 3  answers to test questions to course participants and shall not

 4  issue a certificate of course completion to any course

 5  participant who has failed to correctly answer at least 75

 6  percent of the total test questions. The test must consist of

 7  at least 100 questions.

 8         (4)(3)  The commission shall adopt rules pursuant to

 9  ss. 120.536(1) and 120.54 necessary to administer this

10  section, including rules governing qualifying hours for

11  professional continuing education programs and standards for

12  electronically transmitted or distance education courses,

13  including course completion requirements.

14         Section 5.  Paragraphs (a) and (b) of subsection (2) of

15  section 494.0033, Florida Statutes, are amended to read:

16         494.0033  Mortgage broker's license.--

17         (2)  Each initial application for a mortgage broker's

18  license must be in the form prescribed by rule of the

19  commission. The commission may require each applicant to

20  provide any information reasonably necessary to make a

21  determination of the applicant's eligibility for licensure.

22  The office shall issue an initial license to any natural

23  person who:

24         (a)  Is at least 18 years of age and has a high school

25  diploma or its equivalent.

26         (b)  Has passed a written test adopted and administered

27  by the office, or has passed an electronic test adopted and

28  administered by the office or a third party approved by the

29  office, which is designed to determine competency in primary

30  and subordinate mortgage financing transactions as well as to

31  test knowledge of ss. 494.001-494.0077 and the rules adopted

                                  7

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    Florida Senate - 2007                           CS for SB 1824
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 1  pursuant thereto. The commission may prescribe by rule an

 2  additional fee that may not exceed $100 for the electronic

 3  version of the mortgage broker test. The commission may waive

 4  by rule the examination requirement for any person who has

 5  passed a test approved by the Conference of State Bank

 6  Supervisors, the American Association of Residential Mortgage

 7  Regulators, or the United States Department of Housing and

 8  Urban Development if the test covers primary and subordinate

 9  mortgage financing transactions. The commission may adopt

10  rules prescribing an additional fee that may not exceed $50

11  for an applicant to review his or her completed and graded

12  mortgage broker test. The commission may adopt rules regarding

13  the administration of the testing process, including, but not

14  limited to, procedures relating to pretest registration, test

15  security, scoring, content, result notification, retest

16  procedures and fees, postexamination review, and challenge

17  provisions.

18  

19  The commission may require by rule information concerning any

20  such applicant or person, including, but not limited to, his

21  or her full name and any other names by which he or she may

22  have been known, age, social security number, qualifications

23  and educational and business history, and disciplinary and

24  criminal history.

25         Section 6.  Section 494.0038, Florida Statutes, is

26  amended to read:

27         494.0038  Mortgage broker disclosures.--

28         (1)(a)1.  A person may not receive a mortgage brokerage

29  fee for acting as a mortgage brokerage business except

30  pursuant to a written mortgage brokerage agreement between the

31  

                                  8

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    Florida Senate - 2007                           CS for SB 1824
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 1  mortgage brokerage business and the borrower which is signed

 2  and dated by the business and the borrower.

 3         2.  The written mortgage brokerage agreement must be

 4  executed within 3 days after accepting a mortgage loan

 5  application, describe the services to be provided by the

 6  mortgage brokerage business, and specify the amount and terms

 7  of the mortgage brokerage fee that the mortgage brokerage

 8  business is to receive.

 9         (b)1.  If the mortgage brokerage business is to receive

10  any payment of any kind from the lender, the maximum total

11  dollar amount of the payment must be disclosed to the borrower

12  in the written mortgage brokerage agreement as described in

13  paragraph (a). The commission may prescribe by rule an

14  acceptable form for disclosure of brokerage fees received from

15  the lender. The mortgage brokerage agreement must state the

16  nature of the relationship with the lender, describe how

17  compensation is paid by the lender, and describe how the

18  mortgage interest rate affects the compensation paid to the

19  mortgage brokerage business. If any of the rates, points,

20  fees, and other terms quoted by or on behalf of the lender are

21  to be received by the mortgage brokerage business, such fact

22  shall be specifically disclosed to the borrower.

23         2.  The exact amount of any payment of any kind by the

24  lender to the mortgage brokerage business must be disclosed in

25  writing to the borrower within 3 business days after the

26  mortgage brokerage business is made aware of the exact amount

27  of the payment from the lender but no later than 3 business

28  days prior to the execution of the closing or settlement

29  statement. The licensee bears the burden of proving such

30  notification was provided to the borrower. If the mortgage

31  brokerage fee is for brokering a loan for a particular program

                                  9

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    Florida Senate - 2007                           CS for SB 1824
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 1  under which the brokerage fee varies according to the terms of

 2  the loan, the brokerage fee may be disclosed as a range of

 3  fees at the time of application. The mortgage broker shall, in

 4  such instance, disclose the nature of the fee arrangement to

 5  the borrower, and the exact amount of the fee must be

 6  disclosed at settlement or closing.

 7         (c)  The commission may prescribe by rule what

 8  constitutes a mortgage brokerage fee and the form of

 9  disclosure of brokerage fees.

10         (2)  At the time a written mortgage brokerage agreement

11  is executed by the borrower or at the time the mortgage

12  brokerage business accepts an application fee, credit report

13  fee, property appraisal fee, or any other third-party fee, but

14  not fewer than 3 business days prior to execution of the

15  closing or settlement statement, the mortgage brokerage

16  business shall disclose in writing to any applicant for a

17  mortgage loan the following information:

18         (a)  That such mortgage brokerage business may not make

19  mortgage loans or commitments. The mortgage brokerage business

20  may make a commitment and may furnish a lock-in of the rate

21  and program on behalf of the lender when the mortgage

22  brokerage business has obtained a written commitment or

23  lock-in for the loan from the lender on behalf of the borrower

24  for the loan. The commitment must be in the same form and

25  substance as issued by the lender.

26         (b)  That such mortgage brokerage business cannot

27  guarantee acceptance into any particular loan program or

28  promise any specific loan terms or conditions.

29         (c)  A good faith estimate, signed and dated by the

30  borrower, that discloses of the total amount of each of the

31  fees that the borrower may reasonably expect to pay if the

                                  10

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    Florida Senate - 2007                           CS for SB 1824
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 1  loan is closed, including, but not limited to, fees earned by

 2  the mortgage brokerage business, lender fees, third-party

 3  fees, and official fees, together with credit report fee,

 4  property appraisal fee, or any other third-party fee and the

 5  terms and conditions for obtaining a refund of such fees, if

 6  any. Any amount collected in excess of the actual cost shall

 7  be returned within 60 days after rejection, withdrawal, or

 8  closing. The good faith estimate must identify the recipient

 9  of all payments charged the borrower and, except for all fees

10  to be received by the mortgage brokerage business, may be

11  disclosed in generic terms, such as, but not limited to, paid

12  to lender, appraiser, officials, title company, or any other

13  third-party service provider. This requirement does not

14  supplant or is not a substitute for the written mortgage

15  brokerage agreement described in subsection (1).

16         (3)  The disclosures required by this subsection must

17  be furnished in writing at the time an adjustable rate

18  mortgage loan is offered to the borrower and whenever the

19  terms of the adjustable rate mortgage loan offered materially

20  change prior to closing. The broker shall furnish the

21  disclosures relating to adjustable rate mortgages in a format

22  prescribed by ss. 226.18 and 226.19 of Regulation Z of the

23  Board of Governors of the Federal Reserve System, as amended,

24  its commentary, as amended, and the federal Truth in Lending

25  Act, 15 U.S.C. ss. 1601 et seq., as amended, together with the

26  Consumer Handbook on Adjustable Rate Mortgages, as amended,

27  published by the Federal Reserve Board and the Federal Home

28  Loan Bank Board or a suitable substitute for such handbook.

29  The licensee bears the burden of proving such disclosures were

30  provided to the borrower. The commission may adopt rules

31  

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    Florida Senate - 2007                           CS for SB 1824
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 1  establishing criteria as to what constitutes a material change

 2  and what constitutes a suitable substitute for the handbook.

 3         (4)(3)  If the mortgage brokerage agreement includes a

 4  nonrefundable application fee, the following requirements are

 5  applicable:

 6         (a)  The amount of the application fee, which must be

 7  clearly denominated as such, shall be clearly disclosed.

 8         (b)  The specific services that will be performed in

 9  consideration for the application fee shall be disclosed.

10         (c)  The application fee must be reasonably related to

11  the services to be performed and may not be based upon a

12  percentage of the principal amount of the loan or the amount

13  financed.

14         (5)(4)  A mortgage brokerage business may not accept

15  any fee in connection with a mortgage loan other than an

16  application fee, credit report fee, property appraisal fee, or

17  other third-party fee prior to obtaining a written commitment

18  from a qualified lender.

19         (6)(5)  Any third-party fee entrusted to a mortgage

20  brokerage business shall immediately, upon receipt, be placed

21  into a segregated account with a financial institution located

22  in the state the accounts of which are insured by the Federal

23  Government. Such funds shall be held in trust for the payor

24  and shall be kept in the account until disbursement. Such

25  funds may be placed in one account if adequate accounting

26  measures are taken to identify the source of the funds.

27         (7)(6)  All mortgage brokerage fees shall be paid to a

28  mortgage brokerage business licensee.

29         (8)(7)  This section does not prohibit a mortgage

30  brokerage business from offering products and services, in

31  

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    Florida Senate - 2007                           CS for SB 1824
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 1  addition to those offered in conjunction with the loan

 2  origination process, for a fee or commission.

 3         Section 7.  Subsection (8) is added to section 494.004,

 4  Florida Statutes, to read:

 5         494.004  Requirements of licensees.--

 6         (8)  In every mortgage loan transaction, each licensee

 7  under ss. 494.003-494.0043 shall notify a borrower of any

 8  material changes in the terms of a mortgage loan previously

 9  offered to the borrower within 3 business days after being

10  made aware of such changes by the lender but not less than 3

11  business days before the signing of the settlement or closing

12  statement. The licensee bears the burden of proving such

13  notification was provided and accepted by the borrower. The

14  commission may adopt rules establishing criteria as to what

15  constitutes a material change.

16         Section 8.  Paragraph (v) is added to subsection (2) of

17  section 494.0041, Florida Statutes, to read:

18         494.0041  Administrative penalties and fines; license

19  violations.--

20         (2)  Each of the following acts constitutes a ground

21  for which the disciplinary actions specified in subsection (1)

22  may be taken:

23         (v)  In any mortgage transaction, violating any

24  provision of the federal Real Estate Settlement Procedure Act,

25  as amended, 12 U.S.C. ss. 2601 et seq., the federal Truth In

26  Lending Act, as amended, 15 U.S.C. ss. 1601 et seq., or any

27  regulations adopted under such acts.

28         Section 9.  Subsection (1) of section 494.0064, Florida

29  Statutes, is amended to read:

30         494.0064  Renewal of mortgage lender's license; branch

31  office license renewal.--

                                  13

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 1         (1)(a)  The office shall renew a mortgage lender

 2  license upon receipt of a completed renewal form,

 3  certification from the licensee that the licensee currently

 4  meets the minimum net worth requirements of s. 494.0061 or s.

 5  494.0065, certification from the licensee that during the

 6  preceding 2 years the licensee's principal representative and

 7  loan originators have completed the professional continuing

 8  education requirements of s. 494.00295, and the nonrefundable

 9  renewal fee of $575. The office shall renew a correspondent

10  lender license upon receipt of a completed renewal form,

11  certification from the licensee that the licensee currently

12  meets the minimum net worth requirements of s. 494.0062,

13  certification from the licensee that during the preceding 2

14  years the licensee's principal representative and loan

15  originators have completed the professional continuing

16  education requirements of s. 494.00295, and a nonrefundable

17  renewal fee of $475. Each licensee shall pay at the time of

18  renewal a nonrefundable fee of $325 for the renewal of each

19  branch office license.

20         (b)  A licensee shall also submit, as part of the

21  renewal form, certification that during the preceding 2 years

22  the licensee's principal representative and loan originators

23  have completed the professional continuing education

24  requirements of s. 494.00295.

25         Section 10.  Subsection (8) and paragraph (a) of

26  subsection (10) of section 494.0067, Florida Statutes, are

27  amended, and subsections (11) and (12) are added to that

28  section, to read:

29         494.0067  Requirements of licensees under ss.

30  494.006-494.0077.--

31  

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 1         (8)  Each licensee under ss. 494.006-494.0077 shall

 2  provide an applicant for a mortgage loan a good faith estimate

 3  of the costs the applicant can reasonably expect to pay in

 4  obtaining a mortgage loan. The good faith estimate of costs

 5  shall be mailed or delivered to the applicant within a

 6  reasonable time after the licensee receives a written loan

 7  application from the applicant. The estimate of costs may be

 8  provided to the applicant by a person other than the licensee

 9  making the loan. The good faith estimate must identify the

10  recipient of all payments charged to the borrower and, except

11  for all fees to be received by the mortgage brokerage business

12  and the mortgage lender or correspondent mortgage lender, may

13  be disclosed in generic terms, such as, but not limited to,

14  paid to appraiser, officials, title company, or any other

15  third-party service provider. The licensee bears the burden of

16  proving such disclosures were provided to the borrower. The

17  commission may adopt rules that set forth the disclosure

18  requirements of this section.

19         (10)(a)  Each mortgage lender or correspondent mortgage

20  lender licensee shall require the principal representative and

21  all loan originators, not currently licensed as mortgage

22  brokers pursuant to s. 494.0033, who perform services for the

23  licensee to complete 14 hours of professional continuing

24  education during each biennial license period. The education

25  shall cover primary and subordinate mortgage financing

26  transactions and the provisions of this chapter and the rules

27  adopted under this chapter.

28         (11)  The disclosures in this subsection must be

29  furnished in writing at the time an adjustable rate mortgage

30  loan is offered to the borrower and whenever the terms of the

31  adjustable rate mortgage loan offered have a material change

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 1  prior to closing. The lender shall furnish the disclosures

 2  relating to adjustable rate mortgages in a format prescribed

 3  by ss. 226.18 and 226.19 of Regulation Z of the Board of

 4  Governors of the Federal Reserve System, as amended, its

 5  commentary, as amended, and the federal Truth in Lending Act,

 6  15 U.S.C. ss. 1601 et seq., as amended, together with the

 7  Consumer Handbook on Adjustable Rate Mortgages, as amended,

 8  published by the Federal Reserve Board and the Federal Home

 9  Loan Bank Board or a suitable substitute for the handbook. The

10  licensee bears the burden of proving such disclosures were

11  provided to the borrower. The commission may adopt rules

12  establishing criteria as to what constitutes a material change

13  and what constitutes a suitable substitute for the handbook.

14         (12)  In every mortgage loan transaction, each licensee

15  under ss. 494.006-494.0077 shall notify a borrower of any

16  material changes in the terms of a mortgage loan previously

17  offered to the borrower within 3 business days after being

18  made aware of such changes by the lender but not less than 3

19  business days before the signing of the settlement or closing

20  statement. The licensee bears the burden of proving such

21  notification was provided and accepted by the borrower. The

22  commission may adopt rules establishing criteria as to what

23  constitutes a material change.

24         Section 11.  Paragraph (v) is added to subsection (2)

25  of section 494.0072, Florida Statutes, subsection (3) of that

26  section is amended, and subsection (5) is added to that

27  section, to read:

28         494.0072  Administrative penalties and fines; license

29  violations.--

30  

31  

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    597-2108-07




 1         (2)  Each of the following acts constitutes a ground

 2  for which the disciplinary actions specified in subsection (1)

 3  may be taken:

 4         (v)  In any mortgage transaction, violating any

 5  provision of the federal Real Estate Settlement Procedure Act,

 6  as amended, 12 U.S.C. ss. 2601 et seq., the federal Truth In

 7  Lending Act, as amended, 15 U.S.C. ss. 1601 et seq., or any

 8  regulations adopted under such acts.

 9         (3)  A mortgage lender or correspondent mortgage lender

10  is subject to the disciplinary actions specified in subsection

11  (1) if any officer, member, director, control person, joint

12  venturer, or ultimate equitable owner of a 10-percent or

13  greater interest in the mortgage lender or correspondent

14  mortgage lender, associate, or employee of the mortgage lender

15  or correspondent mortgage lender violates or has violated any

16  provision of subsection (2).

17         (5)  A principal representative of a mortgage lender or

18  correspondent mortgage lender is subject to the disciplinary

19  actions specified in subsection (1) for violations of

20  subsection (2) by associates or employees in the course of an

21  association or employment with the correspondent mortgage

22  lender or the mortgage lender. The principal representative is

23  only subject to suspension or revocation for associate or

24  employee actions if there is a pattern of repeated violations

25  by associates or employees or if the principal broker or

26  principal representative had knowledge of the violations.

27         Section 12.  Section 494.0073, Florida Statutes, is

28  amended to read:

29         494.0073  Mortgage lender or correspondent mortgage

30  lender when acting as a mortgage brokerage business.--Sections

31  494.006-494.0077 do not prohibit a mortgage lender or

                                  17

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






    Florida Senate - 2007                           CS for SB 1824
    597-2108-07




 1  correspondent mortgage lender from acting as a mortgage

 2  brokerage business. However, in mortgage transactions in which

 3  a mortgage lender or correspondent mortgage lender acts as a

 4  mortgage brokerage business, the provisions of ss. 494.0038,

 5  494.0042, 494.004(8), and 494.0043(1), (2), and (3) apply.

 6         Section 13.  This act shall take effect October 1,

 7  2007.

 8  

 9          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
10                         Senate Bill 1824

11                                 

12  The Committee Substitute provides the following changes:

13  1.   Revises the disclosure requirements for adjustable rate
         loans.
14  
    2.   Requires the mortgage brokerage agreement to state the
15       nature of the relationship with the lender, describe how
         compensation is paid by the lender, and describe how the
16       interest rate affects the compensation paid to the
         mortgage brokerage business.
17  
    3.   Revises the time frames for the requirement that lenders
18       notify a borrower of any material changes in the terms of
         a mortgage loan previously offered to a borrower.
19  
    4.   Revises mortgage brokerage licensee requirements by
20       requiring an applicant to be at least 18 years old and to
         have a high school diploma or its equivalent.
21  
    5.   Creates definitions for the terms, "mortgage brokerage
22       fee," and "business day."

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  18

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

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