March 24, 2019
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Senate Bill 1824

Senate Bill sb1824c2

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    Florida Senate - 2007                    CS for CS for SB 1824

    By the Committees on Commerce; Banking and Insurance; and
    Senator Fasano




    577-2323-07

  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 a borrower to waive notification

27         under certain circumstances; providing waiver

28         requirements; amending s. 494.0041, F.S.;

29         specifying additional acts constituting grounds

30         for certain disciplinary actions; providing for

31         fines and penalties; amending s. 494.0064,

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 1         F.S.; providing additional requirements for

 2         renewals of mortgage lender's licenses;

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

 4         additional requirements for mortgage lender

 5         licensees; providing disclosure and

 6         notification requirements; authorizing a

 7         borrower to waive notification under certain

 8         circumstances; providing waiver requirements;

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

10         additional acts constituting grounds for

11         certain disciplinary actions; providing fines

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

13         providing for application of certain provisions

14         to mortgage brokerage businesses; providing for

15         adoption of rules by the Financial Services

16         Commission; providing an effective date.

17  

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

19  

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

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

22  added to that section, to read:

23         494.001  Definitions.--As used in ss. 494.001-494.0077,

24  the term:

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

26  a mortgage lender or correspondent mortgage lender, for

27  compensation or gain or in the expectation of compensation or

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

29  licensed or exempt entity in negotiating the making of a

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

31  licensed or exempt entity to structure a loan or discussing

                                  2

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 1  terms and conditions necessary for the delivery of a loan

 2  product. A natural person whose activities are ministerial and

 3  clerical, which may include quoting available interest rates

 4  or loan terms and conditions, is not acting as a loan

 5  originator.

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

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

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

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

10  specific property, the submission is an application for a

11  prequalification and not an application for a mortgage loan

12  under this part. The subsequent addition of an identified

13  property to the submission converts the submission to an

14  application for a mortgage loan.

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

16  compensation to be received by a mortgage brokerage business

17  for acting as a mortgage broker.

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

19  Sunday or a legal holiday.

20         Section 2.  Section 494.0014, Florida Statutes, is

21  amended to read:

22         494.0014  Cease and desist orders; administrative

23  fines; refund orders.--

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

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

26  action whenever it has reason to believe the person is

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

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

29  494.001-494.0077, or any written agreement between the person

30  and the office. All procedural matters relating to issuance

31  

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

 2  by the Administrative Procedure Act.

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

 4  any fee directly or indirectly assessed and charged on a

 5  mortgage loan transaction which is unauthorized or exceeds the

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

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

 8  mortgage broker business, or the employment by a mortgage

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

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

11  mortgage brokerage business or an employee of a mortgage

12  lender or correspondent mortgage lender. For the purpose of

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

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

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

16  1991, during any 1-year period or any criminal conviction for

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

18  494 in effect prior to October 1, 1991.

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

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

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

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

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

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

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

26  section 494.0029, Florida Statutes, to read:

27         494.0029  Mortgage business schools.--

28         (1)

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

30  494.0014, the office may revoke, suspend, or place on

31  probation the permit of any mortgage business school that

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

 2  reasonable conditions that the office specifies.

 3         (2)

 4         (g)  A school permitted under this section must conduct

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

 6  accordance with the requirements of this chapter and

 7  commission rules.

 8         (h)  Each school permitted under this section is

 9  responsible for developing procedures to confirm, and for

10  actually confirming, the identity of each student attending

11  any course offering.

12         Section 4.  Section 494.00295, Florida Statutes, is

13  amended to read:

14         494.00295  Professional continuing education.--

15         (1)  Mortgage brokers, and the principal

16  representatives and loan originators of a mortgage lender,

17  correspondent mortgage lender, or mortgage lender pursuant to

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

19  professional continuing education covering primary and

20  subordinate mortgage financing transactions and the provisions

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

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

23  correspondent mortgage lender, or mortgage lender pursuant to

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

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

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

27  office that the professional continuing education requirements

28  of this section have been met. Licensees shall maintain

29  records documenting compliance with this subsection for a

30  period of 4 years. The requirements for professional

31  continuing education are waived for the license renewal of a

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 1  mortgage broker who has completed the 24-hour prelicensing

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

 3  days of for the biennial license period immediately following

 4  the period in which the person became licensed as a mortgage

 5  broker. The requirements for professional continuing education

 6  for a principal representative are waived for the license

 7  renewal of a mortgage lender, correspondent mortgage lender,

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

 9  license period immediately following the period in which the

10  principal representative completed the 24 hours of classroom

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

12  a principal representative.

13         (2)  Professional continuing education programs must

14  contribute directly to the professional competency of the

15  participants, may only be offered by permitted mortgage

16  business schools, the office, or entities specifically

17  exempted from permitting as mortgage business schools, and may

18  include electronically transmitted or distance education

19  courses.

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

21  require that the time spent attending electronically

22  transmitted professional education courses is equal to the

23  number of qualifying hours awarded to participants for course

24  attendance. Before allowing a course participant to complete a

25  course and receive a certificate of course completion, the

26  course provider shall ensure that the course participant has:

27         1.  Logged the required number of hours for the

28  particular timed module.

29         2.  Completed a test that comprehensively covers the

30  course content for the particular timed module.

31  

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 1         3.  Correctly answered all test questions for the

 2  particular timed module.

 3         (b)  All distance education course participants shall

 4  successfully complete a test that comprehensively covers

 5  course content in order to receive a certificate of course

 6  completion. Distance education providers shall not provide

 7  answers to test questions to course participants and shall not

 8  issue a certificate of course completion to any course

 9  participant who has failed to correctly answer at least 75

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

11  at least 100 questions.

12         (4)(3)  The commission shall adopt rules pursuant to

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

14  section, including rules governing qualifying hours for

15  professional continuing education programs and standards for

16  electronically transmitted or distance education courses,

17  including course completion requirements.

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

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

20         494.0033  Mortgage broker's license.--

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

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

23  commission. The commission may require each applicant to

24  provide any information reasonably necessary to make a

25  determination of the applicant's eligibility for licensure.

26  The office shall issue an initial license to any natural

27  person who:

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

29  diploma or its equivalent.

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

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

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

 2  office, which is designed to determine competency in primary

 3  and subordinate mortgage financing transactions as well as to

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

 5  pursuant thereto. The commission may prescribe by rule an

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

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

 8  by rule the examination requirement for any person who has

 9  passed a test approved by the Conference of State Bank

10  Supervisors, the American Association of Residential Mortgage

11  Regulators, or the United States Department of Housing and

12  Urban Development if the test covers primary and subordinate

13  mortgage financing transactions. The commission may adopt

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

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

16  mortgage broker test. The commission may adopt rules regarding

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

18  limited to, procedures relating to pretest registration, test

19  security, scoring, content, result notification, retest

20  procedures and fees, postexamination review, and challenge

21  provisions.

22  

23  The commission may require by rule information concerning any

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

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

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

27  and educational and business history, and disciplinary and

28  criminal history.

29         Section 6.  Section 494.0038, Florida Statutes, is

30  amended to read:

31         494.0038  Mortgage broker disclosures.--

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

 2  fee for acting as a mortgage brokerage business except

 3  pursuant to a written mortgage brokerage agreement between the

 4  mortgage brokerage business and the borrower which is signed

 5  and dated by the business and the borrower.

 6         2.  The written mortgage brokerage agreement must

 7  describe the services to be provided by the mortgage brokerage

 8  business and specify the amount and terms of the mortgage

 9  brokerage fee that the mortgage brokerage business is to

10  receive. The written mortgage brokerage agreement must be

11  executed within 3 business days after a mortgage loan

12  application is accepted if the borrower is present when the

13  application is accepted. If the borrower is not present when

14  such an application is accepted, the licensee shall forward

15  the written mortgage brokerage agreement to the borrower

16  within 3 business days after the licensee's acceptance of the

17  application and the licensee bears the burden of proving that

18  the borrower received and approved the written mortgage

19  brokerage agreement.

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

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

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

23  in the written mortgage brokerage agreement as described in

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

25  acceptable form for disclosure of brokerage fees received from

26  the lender. The mortgage brokerage agreement must state the

27  nature of the relationship with the lender, describe how

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

29  mortgage interest rate affects the compensation paid to the

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

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

                                  9

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

 2  shall be specifically disclosed to the borrower.

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

 4  lender to the mortgage brokerage business must be disclosed in

 5  writing to the borrower within 3 business days after the

 6  mortgage brokerage business is made aware of the exact amount

 7  of the payment from the lender but not less than 3 business

 8  days before the execution of the closing or settlement

 9  statement. The licensee bears the burden of proving such

10  notification was provided to the borrower. If the mortgage

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

12  under which the brokerage fee varies according to the terms of

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

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

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

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

17  disclosed at settlement or closing.

18         (c)  The commission may prescribe by rule the form of

19  disclosure of brokerage fees.

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

21  is executed by the borrower or forwarded to the borrower for

22  execution, or at the time the mortgage brokerage business

23  accepts an application fee, credit report fee, property

24  appraisal fee, or any other third-party fee, but not less than

25  3 business days before execution of the closing or settlement

26  statement, the mortgage brokerage business shall disclose in

27  writing to any applicant for a mortgage loan the following

28  information:

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

30  mortgage loans or commitments. The mortgage brokerage business

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

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 1  and program on behalf of the lender when the mortgage

 2  brokerage business has obtained a written commitment or

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

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

 5  substance as issued by the lender.

 6         (b)  That such mortgage brokerage business cannot

 7  guarantee acceptance into any particular loan program or

 8  promise any specific loan terms or conditions.

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

10  borrower, which discloses of the total amount of each of the

11  fees which the borrower may reasonably expect to pay if the

12  loan is closed, including, but not limited to, fees earned by

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

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

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

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

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

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

19  closing. The good faith estimate must identify the recipient

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

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

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

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

24  third-party service provider. This requirement does not

25  supplant or is not a substitute for the written mortgage

26  brokerage agreement described in subsection (1).

27         (3)  The disclosures required by this subsection must

28  be furnished in writing at the time an adjustable rate

29  mortgage loan is offered to the borrower and whenever the

30  terms of the adjustable rate mortgage loan offered materially

31  change prior to closing. The broker shall furnish the

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 1  disclosures relating to adjustable rate mortgages in a format

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

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

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

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

 6  Consumer Handbook on Adjustable Rate Mortgages, as amended,

 7  published by the Federal Reserve Board and the Federal Home

 8  Loan Bank Board. The licensee bears the burden of proving such

 9  disclosures were provided to the borrower.

10         (4)(3)  If the mortgage brokerage agreement includes a

11  nonrefundable application fee, the following requirements are

12  applicable:

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

14  clearly denominated as such, shall be clearly disclosed.

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

16  consideration for the application fee shall be disclosed.

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

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

19  percentage of the principal amount of the loan or the amount

20  financed.

21         (5)(4)  A mortgage brokerage business may not accept

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

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

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

25  from a qualified lender.

26         (6)(5)  Any third-party fee entrusted to a mortgage

27  brokerage business shall immediately, upon receipt, be placed

28  into a segregated account with a financial institution located

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

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

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

                                  12

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 1  funds may be placed in one account if adequate accounting

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

 3         (7)(6)  All mortgage brokerage fees shall be paid to a

 4  mortgage brokerage business licensee.

 5         (8)(7)  This section does not prohibit a mortgage

 6  brokerage business from offering products and services, in

 7  addition to those offered in conjunction with the loan

 8  origination process, for a fee or commission.

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

10  Florida Statutes, to read:

11         494.004  Requirements of licensees.--

12         (8)(a)  In every mortgage loan transaction, each

13  licensee under ss. 494.003-494.0043 shall notify a borrower of

14  any material changes in the terms of a mortgage loan

15  previously offered to the borrower within 3 business days

16  after being made aware of such changes by the lender but not

17  less than 3 business days before the signing of the settlement

18  or closing statement. The licensee bears the burden of proving

19  such notification was provided and accepted by the borrower.

20         (b)  A borrower may waive the right to receive notice

21  of a material change that is granted under paragraph (a) if

22  the borrower determines that the extension of credit is needed

23  to meet a bona fide personal financial emergency and the right

24  to receive notice would delay the closing of the mortgage

25  loan. The imminent sale of the borrower's home at foreclosure

26  during the 3-day period before the signing of settlement or

27  closing statement constitutes an example of a bona fide

28  personal financial emergency. In order to waive the borrower's

29  right to receive notice not less than 3 business days before

30  the signing of the settlement or closing statement of any such

31  material change, the borrower must provide the licensee with a

                                  13

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 1  dated written statement that describes the personal financial

 2  emergency, waives the right to receive the notice, bears the

 3  borrower's signature, and is not on a printed form prepared by

 4  the licensee for the purpose of such a waiver.

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

 6  section 494.0041, Florida Statutes, to read:

 7         494.0041  Administrative penalties and fines; license

 8  violations.--

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

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

11  may be taken:

12         (v)  In any mortgage transaction, violating any

13  provision of the federal Real Estate Settlement Procedure Act,

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

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

16  regulations adopted under such acts.

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

18  Statutes, is amended to read:

19         494.0064  Renewal of mortgage lender's license; branch

20  office license renewal.--

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

22  license upon receipt of a completed renewal form,

23  certification from the licensee that the licensee currently

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

25  494.0065, certification from the licensee that during the

26  preceding 2 years the licensee's principal representative and

27  loan originators have completed the professional continuing

28  education requirements of s. 494.00295, and the nonrefundable

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

30  lender license upon receipt of a completed renewal form,

31  certification from the licensee that the licensee currently

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

 2  certification from the licensee that during the preceding 2

 3  years the licensee's principal representative and loan

 4  originators have completed the professional continuing

 5  education requirements of s. 494.00295, and a nonrefundable

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

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

 8  branch office license.

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

10  renewal form, certification that during the preceding 2 years

11  the licensee's principal representative and loan originators

12  have completed the professional continuing education

13  requirements of s. 494.00295.

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

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

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

17  section, to read:

18         494.0067  Requirements of licensees under ss.

19  494.006-494.0077.--

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

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

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

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

24  shall be mailed or delivered to the applicant within a

25  reasonable time after the licensee receives a written loan

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

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

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

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

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

31  and the mortgage lender or correspondent mortgage lender, may

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

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

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

 4  proving such disclosures were provided to the borrower. The

 5  commission may adopt rules that set forth the disclosure

 6  requirements of this section.

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

 8  lender licensee shall require the principal representative and

 9  all loan originators, not currently licensed as mortgage

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

11  licensee to complete 14 hours of professional continuing

12  education during each biennial license period. The education

13  shall cover primary and subordinate mortgage financing

14  transactions and the provisions of this chapter and the rules

15  adopted under this chapter.

16         (11)  The disclosures in this subsection must be

17  furnished in writing at the time an adjustable rate mortgage

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

19  adjustable rate mortgage loan offered have a material change

20  prior to closing. The lender shall furnish the disclosures

21  relating to adjustable rate mortgages in a format prescribed

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

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

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

25  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. The licensee bears the burden of proving such

29  disclosures were provided to the borrower.

30         (12)(a)  In every mortgage loan transaction, each

31  licensee under ss. 494.006-494.0077 shall notify a borrower of

                                  16

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






    Florida Senate - 2007                    CS for CS for SB 1824
    577-2323-07




 1  any material changes in the terms of a mortgage loan

 2  previously offered to the borrower within 3 business days

 3  after being made aware of such changes by the lender but not

 4  less than 3 business days before the signing of the settlement

 5  or closing statement. The licensee bears the burden of proving

 6  such notification was provided and accepted by the borrower.

 7         (b)  A borrower may waive the right to receive notice

 8  of a material change that is granted under paragraph (a) if

 9  the borrower determines that the extension of credit is needed

10  to meet a bona fide personal financial emergency and the right

11  to receive notice would delay the closing of the mortgage

12  loan. The imminent sale of the borrower's home at foreclosure

13  during the 3-day period before the signing of settlement or

14  closing statement constitutes an example of a bona fide

15  personal financial emergency. In order to waive the borrower's

16  right to receive notice not less than 3 business days before

17  the signing of the settlement or closing statement of any such

18  material change, the borrower must provide the licensee with a

19  dated written statement that describes the personal financial

20  emergency, waives the right to receive the notice, bears the

21  borrower's signature, and is not on a printed form prepared by

22  the licensee for the purpose of such a waiver.

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

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

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

26  section, to read:

27         494.0072  Administrative penalties and fines; license

28  violations.--

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

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

31  may be taken:

                                  17

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    Florida Senate - 2007                    CS for CS for SB 1824
    577-2323-07




 1         (v)  In any mortgage transaction, violating any

 2  provision of the federal Real Estate Settlement Procedure Act,

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

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

 5  regulations adopted under such acts.

 6         (3)  A mortgage lender or correspondent mortgage lender

 7  is subject to the disciplinary actions specified in subsection

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

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

10  greater interest in the mortgage lender or correspondent

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

12  or correspondent mortgage lender violates or has violated any

13  provision of subsection (2).

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

15  correspondent mortgage lender is subject to the disciplinary

16  actions specified in subsection (1) for violations of

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

18  association or employment with the correspondent mortgage

19  lender or the mortgage lender. The principal representative is

20  only subject to suspension or revocation for associate or

21  employee actions if there is a pattern of repeated violations

22  by associates or employees or if the principal broker or

23  principal representative had knowledge of the violations.

24         Section 12.  Section 494.0073, Florida Statutes, is

25  amended to read:

26         494.0073  Mortgage lender or correspondent mortgage

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

28  494.006-494.0077 do not prohibit a mortgage lender or

29  correspondent mortgage lender from acting as a mortgage

30  brokerage business. However, in mortgage transactions in which

31  a mortgage lender or correspondent mortgage lender acts as a

                                  18

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    Florida Senate - 2007                    CS for CS for SB 1824
    577-2323-07




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

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

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

 4  2007.

 5  

 6          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 7                            CS/SB 1824

 8                                 

 9  This CS/CS differs from the bill as filed in the following
    manner:
10  
    The CS/CS clarifies when the mortgage brokerage agreement must
11  be executed and provided to the borrower -- within 3 days if
    the loan application is accepted in person; or, if the
12  borrower is not present when the loan application is accepted,
    the brokerage must forward to borrower within 3 business days.
13  The broker bears the burden of proving that the agreement was
    received and accepted by the borrower.
14  
    The CS/CS allows the borrower to waive, in writing, notice of
15  material changes if the borrower determines that the loan is
    needed to meet a personal financial emergency and the
16  notification requirement would delay the closing. An imminent
    foreclosure during the 3 days prior to closing constitutes a
17  bona fide personal emergency. The CS/CS also provides
    requirements for the written statement.
18  
    The CS/CS removes rulemaking authority where it appears
19  burdensome or unnecessary.

20  

21  

22  

23  

24  

25  

26  

27  

28  

29  

30  

31  

                                  19

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

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