Senate Bill 1326er

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  1

  2         An act relating to mortgage brokers and

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

  4         definitions; amending s. 494.0011, F.S.;

  5         authorizing the Department of Banking and

  6         Finance to adopt rules; amending s. 494.0012,

  7         F.S.; requiring the Department of Banking and

  8         Finance to charge a fee for certain

  9         examinations; deleting a limitation on

10         aggregate amount of examination fees; requiring

11         the department to conduct certain examinations

12         in this state; providing an exception; revising

13         travel expense and per diem subsistence

14         requirements for licensees; amending s.

15         494.00125, F.S.; deleting references to

16         registrations and permits; amending s.

17         494.0016, F.S.; specifying department

18         prescription by rule of certain required

19         information; creating s. 494.00165, F.S.;

20         prohibiting certain advertising activities;

21         requiring a record of certain advertisements;

22         amending s. 494.0025, F.S.; deleting certain

23         prohibited advertising activities; prohibiting

24         payment of a mortgage transaction fee or

25         commission to other than certain actively

26         licensed persons; amending s. 494.0031, F.S.;

27         providing for licensure of mortgage brokerage

28         business branches; increasing license fees;

29         deleting references to registrations and

30         permits; amending s. 494.0032, F.S.; providing

31         for renewal of branch licenses; increasing


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  1         license renewal fees; providing for reversion

  2         of licenses to inactive status under certain

  3         circumstances; providing for reactivation of

  4         licenses; providing for a reactivation fee;

  5         amending s. 494.0033, F.S.; specifying an

  6         application fee; clarifying provisions;

  7         amending s. 494.00331, F.S.; prohibiting

  8         simultaneous multiple licensures; amending s.

  9         494.0034, F.S.; deleting an automatic license

10         expiration provision; clarifying provisions;

11         amending s. 494.0036, F.S.; requiring a license

12         to operate a mortgage brokerage business branch

13         office; requiring display of licenses; amending

14         s. 494.0038, F.S.; clarifying the timing of

15         certain disclosures; amending s. 494.0039,

16         F.S.; revising mortgage brokerage business

17         principal place of business requirements;

18         amending s. 494.004, F.S.; including pleas of

19         nolo contendere to certain crimes within

20         certain licensee reporting requirements;

21         requiring licensees to report conviction or

22         pleas of nolo contendere to felonies; requiring

23         licensees to provide the department with

24         certain information relating to associated

25         mortgage brokers; requiring the department to

26         adopt certain rules; amending s. 494.0041,

27         F.S.; revising the list of acts constituting

28         grounds for disciplinary action; amending s.

29         494.0061, F.S.; providing for mortgage lender

30         branch office licenses; increasing a license

31         fee; clarifying provisions; amending s.


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  1         494.0062, F.S.; providing for correspondent

  2         mortgage lender branch office licenses;

  3         increasing a license fee; clarifying

  4         provisions; amending s. 494.0064, F.S.;

  5         providing for renewal of certain licenses;

  6         increasing license renewal fees; providing for

  7         reversion of licenses to inactive status;

  8         deleting an automatic license expiration

  9         provision; amending s. 494.0066, F.S.;

10         requiring mortgage lender and correspondent

11         mortgage lender branch office licenses;

12         increasing license fees; amending s. 494.0067,

13         F.S.; requiring display of certain licenses;

14         requiring registration of loan originators;

15         requiring certain information relating to loan

16         originators; amending s. 494.0072, F.S.;

17         revising a list of certain acts constituting

18         grounds for disciplinary action; clarifying

19         application of certain disciplinary actions;

20         amending s. 494.0073, F.S.; providing for

21         mortgage lenders or correspondent mortgage

22         lenders to act as mortgage brokerage

23         businesses; repealing s. 494.0037, F.S.,

24         relating to books, accounts, and records;

25         providing effective dates.

26

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

28

29         Section 1.  Section 494.001, Florida Statutes, is

30  amended to read:

31


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  1         494.001  Definitions.--As used in ss. 494.001-494.0077,

  2  the term:

  3         (1)  "Act as a correspondent mortgage lender" means to

  4  make a mortgage loan.

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

  6  a mortgage lender or correspondent mortgage lender, for

  7  compensation or gain or in the expectation of compensation or

  8  gain, to negotiate or offer to negotiate the making of a

  9  mortgage loan.  A person whose activities are ministerial and

10  clerical, which may include quoting available interest rates

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

12  originator.

13         (3)(2)  "Act as a mortgage broker" means, for

14  compensation or gain, or in the expectation of compensation or

15  gain, either directly or indirectly, accepting or offering to

16  accept an application for a mortgage loan, soliciting or

17  offering to solicit a mortgage loan on behalf of a borrower,

18  negotiating or offering to negotiate the terms or conditions

19  of a mortgage loan on behalf of a lender, or negotiating or

20  offering to negotiate the sale of an existing mortgage loan to

21  a noninstitutional investor.  An employee whose activities are

22  ministerial and clerical, which may include quoting available

23  interest rates or loan terms and conditions, is not acting as

24  a mortgage broker.

25         (4)(3)  "Act as a mortgage lender" means to make a

26  mortgage loan or to service a mortgage loan for others or, for

27  compensation or gain, or in the expectation of compensation or

28  gain, either directly or indirectly, to sell or offer to sell

29  a mortgage loan to a noninstitutional investor.

30         (5)(4)  "Associate" means for the purposes of ss.

31  494.003-494.0043 solely, a person required to be licensed as a


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  1  mortgage broker under this chapter who is employed by or

  2  acting as an independent contractor for a mortgage brokerage

  3  business or a person acting as an independent contractor for a

  4  mortgage lender or correspondent mortgage lender.  The use of

  5  the term associate, in contexts other than in the

  6  administration of ss. 494.003-494.0077 494.003-494.0043, shall

  7  not be construed to impose or effect the common-law or

  8  statutory liability of the employer.

  9         (6)(5)  "Branch broker" means the licensee in charge

10  of, and responsible for, the operation of a branch office of a

11  mortgage brokerage business.

12         (7)  "Branch office" means a location, other than a

13  licensee's principal place of business:

14         (a)  The address of which appears on business cards,

15  stationery, or advertising used by the licensee in connection

16  with business conducted under this chapter;

17         (b)  At which the licensee's name, advertising or

18  promotional materials, or signage suggest that mortgage loans

19  are originated, negotiated, funded, or serviced; or

20         (c)  Which, due to the actions of any employee or

21  associate of the licensee, may be construed by the public as a

22  branch office of the licensee where mortgage loans are

23  originated, negotiated, funded, or serviced.

24         (8)(6)  "Department" means the Department of Banking

25  and Finance.

26         (9)  "Employed" means engaged in the service of another

27  for salary or wages subject to withholding, FICA, or other

28  lawful deductions by the employer as a condition of

29  employment.

30

31


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  1         (10)  "Employee" means a natural person who is employed

  2  and who is subject to the right of the employer to direct and

  3  control the actions of the employee.

  4         (11)(7)  "Good standing" means that the registrant or

  5  licensee, or a subsidiary or affiliate thereof, is not, at the

  6  time of application, being penalized for one or more of the

  7  following disciplinary actions by a licensing authority of any

  8  state, territory, or country:

  9         (a)  Revocation of a license or registration.

10         (b)  Suspension of a license or registration.

11         (c)  Probation of a license or registration for an

12  offense involving fraud, dishonest dealing, or an act of moral

13  turpitude.

14         (12)(8)  "Institutional investor" means a state or

15  national bank, state or federal savings and loan association

16  or savings bank, real estate investment trust, insurance

17  company, real estate company, accredited investor as defined

18  in 17 C.F.R. ss. 230.501 et seq., business licensed under ss.

19  494.001-494.0077, or other business entity that invests in

20  mortgage loans, including a secondary mortgage market

21  institution including, without limitation, the Federal

22  National Mortgage Association, the Federal Home Loan Mortgage

23  Corporation, and the Government National Mortgage Association,

24  conduits, investment bankers, and any subsidiary of such

25  entities.

26         (13)(9)  "Loan commitment" or "commitment" means a

27  statement by the lender setting forth the terms and conditions

28  upon which the lender is willing to make a particular mortgage

29  loan to a particular borrower.

30         (14)(10)  "Lock-in agreement" means an agreement

31  whereby the lender guarantees for a specified number of days


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  1  or until a specified date the availability of a specified rate

  2  of interest or specified formula by which the rate of interest

  3  will be determined and/or specific number of discount points,

  4  if the loan is approved and closed within the stated period of

  5  time.

  6         (15)(11)  "Make a mortgage loan" means to close a

  7  mortgage loan in a person's name or to advance funds, offer to

  8  advance funds, or make a commitment to advance funds to an

  9  applicant for a mortgage loan.

10         (16)(12)  "Mortgage brokerage broker fee" means a fee

11  received for acting as a mortgage broker.

12         (17)(13)  "Mortgage brokerage business" means a person

13  acting as a mortgage broker.

14         (18)  "Mortgage loan" means any:

15         (a)  Residential mortgage loan;

16         (b)  Loan on commercial real property if the borrower

17  is a natural person or the lender is a noninstitutional

18  investor; or

19         (c)  Loan on improved real property consisting of five

20  or more dwelling units if the borrower is a natural person or

21  the lender is a noninstitutional investor.

22         (19)(14)  "Net worth" means total assets minus total

23  liabilities pursuant to generally accepted accounting

24  principles.

25         (20)(15)  "Noninstitutional investor" means an investor

26  other than an institutional investor.

27         (21)(16)  "Nonresidential mortgage loan" means a

28  mortgage loan other than a residential mortgage loan.

29         (22)(17)  "Person" means an individual, partnership,

30  corporation, association, or other group, however organized.

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  1         (23)(18)  "Principal broker" means a licensee in charge

  2  of, and responsible for, the operation of the principal place

  3  of business and all branch brokers.

  4         (24)  "Principal place of business" means a licensee's

  5  primary business office the street address or physical

  6  location of which is designated on the application for

  7  licensure or any amendment to such application.

  8         (25)(19)  "Residential mortgage loan" means any

  9  mortgage or other security instrument secured by improved real

10  property consisting of no more than four dwelling units.

11         (26)(20)  "Service a mortgage loan" means to receive or

12  cause to be received or transferred for another installment

13  payments of principal, interest, or other payments pursuant to

14  a mortgage loan.

15         (27)(21)  "Substantial fault of the borrower" means

16  that the borrower:

17         (a)  Failed to provide information or documentation

18  required by the lender or broker in a timely manner;

19         (b)  Provided information, in the application or

20  subsequently, which upon verification proved to be

21  significantly inaccurate, causing the need for review or

22  further investigation by the lender or broker;

23         (c)  Failed to produce no later than the date specified

24  by the lender all documentation specified in the commitment or

25  closing instructions as being required for closing; or

26         (d)  Failed to be ready, willing, or able to close the

27  loan no later than the date specified by the lender or broker.

28

29  For purposes of this definition, a borrower is considered to

30  have provided information or documentation in a timely manner

31  if such information and documentation was received by the


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  1  lender within 7 days after the borrower received a request for

  2  same, and information is considered significantly inaccurate

  3  if the correct information materially affects the eligibility

  4  of the borrower for the loan for which application is made.

  5         (28)(22)  "Ultimate equitable owner" means a natural

  6  person who, directly or indirectly, owns or controls an

  7  ownership interest in a corporation, a foreign corporation, an

  8  alien business organization, or any other form of business

  9  organization, regardless of whether such natural person owns

10  or controls such ownership interest through one or more

11  natural persons or one or more proxies, powers of attorney,

12  nominees, corporations, associations, partnerships, trusts,

13  joint stock companies, or other entities or devices, or any

14  combination thereof.

15         Section 2.  Subsection (2) of section 494.0011, Florida

16  Statutes, 1998 Supplement, is amended to read:

17         494.0011  Powers and duties of the department.--

18         (2)  The department has authority to adopt rules

19  pursuant to ss. 120.536(1) and 120.54 to implement ss.

20  494.001-494.0077.  The department may adopt rules to allow

21  electronic submission of any forms, documents, or fees

22  required by this act.  The department may also adopt rules to

23  accept certification of compliance with requirements of this

24  act in lieu of requiring submission of documents.

25         Section 3.  Effective September 1, 2000, subsection (3)

26  of section 494.0012, Florida Statutes, is amended to read:

27         494.0012  Investigations; complaints; examinations.--

28         (3)(a)  The department may, at intermittent periods,

29  conduct examinations of any licensee or other person under the

30  provisions of ss. 494.001-494.0077.  The department may charge

31  an examination fee prescribed by rule, but such fee may not


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  1  exceed $300 per 8-hour day for each examiner.  Such

  2  examination fee shall be calculated on an hourly basis and

  3  shall be rounded to the nearest hour.

  4         (b)  The department shall conduct all examinations at a

  5  convenient location in this state unless the department

  6  determines that it is more effective or cost-efficient to

  7  perform an examination at the licensee's out-of-state

  8  location.  For an examination performed at the licensee's

  9  out-of-state location travel, the licensee shall also pay the

10  travel expense and per diem subsistence at the rate provided

11  by law for up to 30 8-hour days per year for each department

12  examiner who participates in such an examination.  However, if

13  the examination involves or reveals fraudulent conduct by the

14  licensee, the licensee shall pay the travel expense and per

15  diem subsistence provided by law, without limitation, for each

16  participating examiner allowance provided for state employees

17  under s. 112.061.  The department may not charge more than

18  $500 in examination fees per biennial period to any one

19  mortgage brokerage business, mortgage lender, or correspondent

20  mortgage lender.

21         Section 4.  Paragraph (a) of subsection (1) of section

22  494.00125, Florida Statutes, is amended to read:

23         494.00125  Confidentiality of information relating to

24  investigations and examinations.--

25         (1)(a)  Except as otherwise provided by this section,

26  information relative to an investigation or examination by the

27  department pursuant to this chapter, including any consumer

28  complaint, is confidential and exempt from s. 119.07(1) until

29  the investigation or examination is completed or ceases to be

30  active. The information compiled by the department in such an

31  investigation or examination shall remain confidential and


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  1  exempt from s. 119.07(1) after the department's investigation

  2  or examination is completed or ceases to be active if the

  3  department submits the information to any law enforcement or

  4  administrative agency for further investigation.  Such

  5  information shall remain confidential and exempt from s.

  6  119.07(1) until that agency's investigation is completed or

  7  ceases to be active.  For purposes of this section, an

  8  investigation or examination shall be considered "active" so

  9  long as the department or any law enforcement or

10  administrative agency is proceeding with reasonable dispatch

11  and has a reasonable good faith belief that the investigation

12  or examination may lead to the filing of an administrative,

13  civil, or criminal proceeding or to the denial or conditional

14  grant of a license, registration, or permit.  This section

15  shall not be construed to prohibit disclosure of information

16  which is required by law to be filed with the department and

17  which, but for the investigation or examination, would be

18  subject to s. 119.07(1).

19         Section 5.  Subsection (4) of section 494.0016, Florida

20  Statutes, is amended to read:

21         494.0016  Books, accounts, and records; maintenance;

22  examinations by the department.--

23         (4)  The department may prescribe by rule the minimum

24  information to be shown in the books, accounts, records, and

25  documents of licensees so that such records will enable the

26  department to determine the licensee's compliance with ss.

27  494.001-494.0077.

28         Section 6.  Section 494.00165, Florida Statutes, is

29  created to read:

30         494.00165  Prohibited advertising; record

31  requirements.--


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  1         (1)  It is a violation of this chapter for any person

  2  to:

  3         (a)  Advertise that an applicant will have unqualified

  4  access to credit without disclosing what material limitations

  5  on the availability of credit exist. Such material limitations

  6  include, but are not limited to, the percentage of down

  7  payment required, that a higher rate or points could be

  8  required, or that restrictions as to the maximum principal

  9  amount of the loan offered could apply.

10         (b)  Advertise a mortgage loan at an expressed interest

11  rate unless the advertisement specifically states that the

12  expressed rate could change or not be available at commitment

13  or closing.

14         (c)  Advertise mortgage loans, including rates,

15  margins, discounts, points, fees, commissions, or other

16  material information, including material limitations on such

17  loans, unless such person is able to make such mortgage loans

18  available to a reasonable number of qualified applicants.

19         (d)  Falsely advertise or misuse names indicating a

20  federal agency pursuant to 18 U.S.C. s. 709.

21         (2)  Each person required to be licensed under this

22  chapter shall maintain a record of samples of each of its

23  advertisements, including commercial scripts of each radio or

24  television broadcast, for examination by the department for a

25  period of 2 years after the date of publication or broadcast.

26         Section 7.  Subsections (6), (7), (8), (9), (10), (11),

27  and (12) of section 494.0025, Florida Statutes, are amended to

28  read:

29         494.0025  Prohibited practices.--It is unlawful for any

30  person:

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  1         (6)  To advertise that an applicant will have

  2  unqualified access to credit without disclosing what material

  3  limitations on the availability of credit exist, such as the

  4  percentage of down payment required, that a higher rate or

  5  points could be required, or that restrictions as to the

  6  maximum principal amount of the loan offered could apply.

  7         (7)  To advertise a mortgage loan where a prevailing

  8  rate is indicated in the advertisement, unless the

  9  advertisement specifically states that the expressed rate

10  could change or not be available at commitment or closing.

11         (8)  To advertise mortgage loans, including rates,

12  margins, discounts, points, fees, commissions, or other

13  material information, including material limitations on such

14  loans, unless such person is able to make such mortgage loans

15  available to a reasonable number of qualified applicants.

16         (6)(9)  To violate s. 655.922(2), subject to ss.

17  494.001-494.0077.

18         (7)(10)  Who is required to be licensed under ss.

19  494.006-494.0077, to fail to report to the department the

20  failure to meet the net worth requirements of s. 494.0061, s.

21  494.0062, or s. 494.0065 within 48 hours after the person's

22  knowledge of such failure or within 48 hours after the person

23  should have known of such failure.

24         (8)(11)  To pay a fee or commission in any mortgage

25  loan transaction to any person or entity other than a

26  mortgage brokerage business, mortgage lender, or correspondent

27  mortgage lender, operating under an active license, or a

28  person exempt from licensure under this chapter. Who is

29  required to be licensed under ss. 494.001-494.0077, to falsely

30  advertise or misuse names indicating a federal agency pursuant

31  to 18 U.S.C. s. 709.


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  1         (9)(12)  To record a mortgage brokerage agreement or

  2  any other document, not rendered by a court of competent

  3  jurisdiction, which purports to enforce the terms of the

  4  mortgage brokerage agreement.

  5         Section 8.  Subsections (1), (4), and (5) of section

  6  494.0031, Florida Statutes, are amended to read:

  7         494.0031  Licensure as a mortgage brokerage business.--

  8         (1)  The department shall issue a mortgage brokerage

  9  business license to each person who:

10         (a)  Has submitted a completed application form and a

11  nonrefundable application fee of $425 in an amount that may

12  not exceed $350; and

13         (b)  Has a qualified principal broker pursuant to s.

14  494.0035.

15         (4)  A mortgage brokerage business or branch office

16  license, permit, or registration may be canceled if it was

17  issued through mistake or inadvertence of the department. A

18  notice of cancellation must be issued by the department within

19  90 days after the issuance of the license.  A notice of

20  cancellation shall be effective upon receipt. The notice of

21  cancellation shall provide the applicant with notification of

22  the right to request a hearing within 21 days after the

23  applicant's receipt of the notice of cancellation.  A license,

24  permit, or registration shall be reinstated if the applicant

25  can demonstrate that the requirements for obtaining the

26  license, permit, or registration pursuant to this chapter ss.

27  494.001-494.0077 have been satisfied.

28         (5)  If an initial mortgage brokerage business or

29  branch office license, permit, or registration has been issued

30  but the check upon which the license, permit, or registration

31  is based is returned due to insufficient funds, the license,


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  1  permit, or registration shall be deemed canceled.  A license,

  2  permit, or registration deemed canceled pursuant to this

  3  subsection shall be reinstated if the department receives a

  4  certified check for the appropriate amount within 30 days

  5  after the date the check was returned due to insufficient

  6  funds.

  7         Section 9.  Section 494.0032, Florida Statutes, is

  8  amended to read:

  9         494.0032  Renewal of mortgage brokerage business

10  license; permit renewal of mortgage brokerage business branch

11  office license.--

12         (1)  The department shall renew a mortgage brokerage

13  business license upon receipt of a completed renewal form and

14  payment of a nonrefundable renewal fee of $375 that may not

15  exceed $300.  Each licensee shall pay at the time of renewal a

16  nonrefundable renewal fee of $225 that may not exceed $150 for

17  the renewal of each branch office license permit.

18         (2)  The department shall adopt rules establishing a

19  procedure for the biennial renewal of mortgage brokerage

20  business licenses and branch office licenses permits.  The

21  department may prescribe the form for renewal and may require

22  an update of all information provided in the licensee's

23  initial application.

24         (3)  A mortgage brokerage business or branch office

25  license that is not renewed by the end of the biennium

26  established by the department shall revert from active to

27  inactive status.  An inactive license may be reactivated

28  within 6 months after becoming inactive by filing a completed

29  reactivation form with the department, payment of the renewal

30  fee, and payment of a nonrefundable reactivation fee of $100.

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  1  The department may set by rule a late renewal fee in an amount

  2  that may not exceed $100.

  3         (4)  A license that is not renewed within 6 months

  4  after the end of the biennial period automatically expires.

  5         Section 10.  Subsections (2), (6), and (7) of section

  6  494.0033, Florida Statutes, are amended to read:

  7         494.0033  Mortgage broker's license.--

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

  9  license must be in the written form as prescribed by rule of

10  the department. The department may require each applicant to

11  provide any information reasonably necessary to make a

12  determination of the applicant's eligibility for licensure.

13  The department shall issue an initial license to any natural

14  person who:

15         (a)  Is at least 18 years of age;

16         (b)  Has passed a written test adopted by the

17  department which is designed to determine competency in

18  primary and subordinate mortgage financing transactions as

19  well as to test knowledge of ss. 494.001-494.0077 and the

20  rules adopted pursuant thereto;

21         (c)  Has submitted a completed application and a

22  nonrefundable application fee of that may not exceed $200.

23  The department may set by rule an additional fee for a retake

24  of the examination; and

25         (d)  Has filed a complete set of fingerprints, taken by

26  an authorized law enforcement officer, for submission by the

27  department to the Department of Law Enforcement or the Federal

28  Bureau of Investigation for processing.

29         (6)  A mortgage broker license, permit, or registration

30  may be canceled if it was issued through mistake or

31  inadvertence of the department. A notice of cancellation must


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  1  be issued by the department within 90 days after the issuance

  2  of the license.  A notice of cancellation shall be effective

  3  upon receipt. The notice of cancellation shall provide the

  4  applicant with notification of the right to request a hearing

  5  within 21 days after the applicant's receipt of the notice of

  6  cancellation.  A license, permit, or registration shall be

  7  reinstated if the applicant can demonstrate that the

  8  requirements for obtaining the license, permit, or

  9  registration pursuant to this chapter ss. 494.001-494.0077

10  have been satisfied.

11         (7)  If an initial mortgage broker license, permit, or

12  registration has been issued but the check upon which the

13  license, permit, or registration is based is returned due to

14  insufficient funds, the license, permit, or registration shall

15  be deemed canceled.  A license, permit, or registration deemed

16  canceled pursuant to this subsection shall be reinstated if

17  the department receives a certified check for the appropriate

18  amount within 30 days after the date the check was returned

19  due to insufficient funds.

20         Section 11.  Section 494.00331, Florida Statutes, is

21  amended to read:

22         494.00331  Mortgage broker association.--No person

23  required to be licensed acting as a mortgage broker under this

24  chapter shall be simultaneously an associate of more than one

25  licensed a single mortgage brokerage business, licensed

26  mortgage lender, or licensed correspondent mortgage lender.

27         Section 12.  Subsections (1), (3), and (4) of section

28  494.0034, Florida Statutes, are amended to read:

29         494.0034  Renewal of mortgage broker's license.--

30         (1)  The department shall renew a mortgage broker

31  broker's license upon receipt of the completed renewal form


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  1  and payment of a nonrefundable renewal fee of that may not

  2  exceed $150.

  3         (3)  A license that is not renewed by the end of the

  4  biennium prescribed by the department shall revert from active

  5  automatically reverts to inactive status.  An inactive license

  6  may be reactivated within 2 years after becoming inactive by

  7  the filing of a completed reactivation form application with

  8  the department, payment of the renewal fee, and payment of a

  9  nonrefundable reactivation fee of $100.

10         (4)  A license that is not renewed within 2 years after

11  becoming inactive automatically expires.

12         Section 13.  Section 494.0036, Florida Statutes, is

13  amended to read:

14         494.0036  Mortgage brokerage business branch offices.--

15         (1)  A mortgage brokerage business branch office

16  license permit is required for each branch office maintained

17  by a mortgage brokerage business licensee.

18         (2)  The department shall issue a mortgage brokerage

19  business branch office license permit upon receipt of a

20  completed application in a form as prescribed by the

21  department rule and payment of an initial nonrefundable branch

22  office license permit fee of $225 that may not exceed $150.

23  Branch office licenses permits must be renewed in conjunction

24  with the renewal of the mortgage brokerage business license.

25  The branch office license permit shall be issued in the name

26  of the mortgage brokerage business that maintains the branch

27  office.

28         (3)  Each branch office must prominently display the

29  license issued for such branch office. Each person licensed as

30  a mortgage broker must prominently display his or her license

31  in the office where such person acts as a mortgage broker.


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  1         Section 14.  Subsection (2) of section 494.0038,

  2  Florida Statutes, is amended to read:

  3         494.0038  Mortgage broker disclosures.--

  4         (2)  At the time Prior to entering into a written

  5  agreement is executed by the borrower or at the time the

  6  mortgage brokerage business accepts accepting an application,

  7  an application fee, credit report fee, property appraisal fee,

  8  or any other third-party fee, the a mortgage brokerage

  9  business shall must disclose in writing to any applicant for a

10  mortgage loan the following information:

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

12  mortgage loans or commitments.  The mortgage brokerage

13  business may make a commitment and may furnish a lock-in of

14  the rate and program on behalf of the lender when the mortgage

15  brokerage business has obtained a written commitment or

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

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

18  substance as issued by the lender.

19         (b)  That such mortgage brokerage business cannot

20  guarantee acceptance into any particular loan program or

21  promise any specific loan terms or conditions.

22         (c)  A good faith estimate of the credit report fee,

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

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

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

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

27  closing.

28         Section 15.  Subsections (1) and (3) of section

29  494.0039, Florida Statutes, are amended to read:

30         494.0039  Principal place of business requirements.--

31


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  1         (1)  Each mortgage brokerage business licensee shall

  2  maintain and transact business from a principal place of

  3  business in the state.  A principal place of business or

  4  branch office must consist of at least one enclosed room or

  5  building of stationary construction in which negotiations of

  6  mortgage loan transactions of others may be conducted and

  7  carried on in privacy and in which all of the books, records,

  8  and files pertaining to mortgage loan transactions of others

  9  are maintained, and:

10         (a)  Must be in compliance with local zoning ordinances

11  and must have posted any occupational licenses required by

12  local government agencies.  It is the responsibility of the

13  licensee to meet local zoning ordinances and obtain the

14  required occupational licenses; and

15         (b)  Must maintain a sign that is publicly displayed.

16  Such sign must contain the name of the licensee under ss.

17  494.003-494.0043 and the words "Licensed Mortgage Brokerage

18  Business."

19         (3)  Each mortgage brokerage business must prominently

20  display its license at the principal place of business.  Each

21  branch office must prominently display its branch office

22  permit. Each person licensed mortgage broker pursuant to s.

23  494.0033 must prominently display his or her license in the

24  office where such person acts as a mortgage broker.

25         Section 16.  Subsection (1) of section 494.004, Florida

26  Statutes, is amended, present subsections (2), (3), and (4) of

27  that section are renumbered as subsections (3), (4), and (5),

28  respectively, and a new subsection (2) is added to that

29  section, to read:

30         494.004  Requirements of licensees.--

31


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  1         (1)  Each licensee under ss. 494.003-494.0043 shall

  2  report, in writing, any conviction of, or plea of nolo

  3  contendere to, regardless of adjudication, any crime or

  4  administrative violation that involves fraud, dishonest

  5  dealing, or any other act of moral turpitude, in any

  6  jurisdiction, by the licensee or any natural person named in,

  7  pursuant to s. 494.0031(3), not later than 30 days after the

  8  date of conviction, entry of a plea of nolo contendere, or

  9  final administrative action.

10         (2)  Each licensee under ss. 494.003-494.0043 shall

11  report, in a form prescribed by rule of the department, any

12  conviction of, or plea of nolo contendere to, regardless of

13  whether adjudication is withheld, any felony committed by the

14  licensee or any natural person named in s. 494.0031(3), not

15  later than 30 days after the date of conviction or the date

16  the plea of nolo contendere is entered.

17         Section 17.  Effective January 1, 2000, subsection (6)

18  is added to section 494.004, Florida Statutes, as amended by

19  this act, to read:

20         494.004  Requirements of licensees.--

21         (6)  On or before April 30, 2000, each mortgage

22  brokerage business shall file an initial report stating the

23  name, social security number, date of birth, mortgage broker

24  license number, date of hire and, if applicable, date of

25  termination for each person who was an associate of the

26  mortgage brokerage business during the immediate preceding

27  quarter.  Thereafter, a mortgage brokerage business shall file

28  a quarterly report only if a person became an associate or

29  ceased to be an associate of the mortgage brokerage business

30  during the immediate preceding quarter.  Such report shall be

31  filed within 30 days after the last day of each calendar


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  1  quarter and shall contain the name, social security number,

  2  date of birth, mortgage broker license number, date of hire

  3  and, if applicable, the date of termination of each person who

  4  became or ceased to be an associate of the mortgage brokerage

  5  business during the immediate preceding quarter.  The

  6  department shall prescribe, by rule, the procedures for filing

  7  reports required by this subsection.

  8         Section 18.  Paragraph (a) of subsection (2) of section

  9  494.0041, Florida Statutes, is amended, and paragraph (r) is

10  added to that subsection, to read:

11         494.0041  Administrative penalties and fines; license

12  violations.--

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

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

15  may be taken:

16         (a)  Pleading nolo contendere to, or having been Being

17  convicted or found guilty of, regardless of whether

18  adjudication is withheld, of a crime involving in any

19  jurisdiction which involves fraud, dishonest dealing, or any

20  other act of moral turpitude.

21         (r)  Failure to timely pay any fee, charge, or fine

22  imposed or assessed pursuant to this chapter or rules adopted

23  under this chapter.

24         Section 19.  Subsections (1), (3), (6), and (7) of

25  section 494.0061, Florida Statutes, are amended to read:

26         494.0061  Mortgage lender's license requirements.--

27         (1)  The department may require each applicant for a

28  mortgage lender lender's license to provide any information

29  reasonably necessary to make a determination of the

30  applicant's eligibility for licensure.  The department shall

31


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  1  issue an initial mortgage lender lender's license to any

  2  person that submits:

  3         (a)  A completed application form;

  4         (b)  A nonrefundable application fee of $575 set by

  5  rule of the department in an amount that may not exceed $500;

  6         (c)  Audited financial statements, which documents

  7  disclose that the applicant has a bona fide and verifiable net

  8  worth, pursuant to generally accepted accounting principles,

  9  of at least $250,000, which must be continuously maintained as

10  a condition of licensure;

11         (d)  A surety bond in the amount of $10,000, payable to

12  the state and conditioned upon compliance with ss.

13  494.001-494.0077, which inures to the department and which

14  must be continuously maintained thereafter in full force; and

15         (e)  Documentation that the applicant is duly

16  incorporated, registered, or otherwise formed as a general

17  partnership, limited partnership, limited liability company,

18  or other lawful entity under the laws of this state or another

19  state of the United States.

20         (3)  Each initial application for a mortgage lender's

21  license must be in a written form prescribed by the

22  department.  The division may require each applicant to

23  provide any information reasonably necessary to make a

24  determination of the applicant's eligibility for licensure.

25  The department may require that each officer, director, and

26  ultimate equitable owner of a 10-percent or greater interest

27  in the applicant submit a complete set of fingerprints taken

28  by an authorized law enforcement officer.

29         (6)  A mortgage lender or branch office license,

30  permit, or registration may be canceled if it was issued

31  through mistake or inadvertence of the department. A notice of


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  1  cancellation must be issued by the department within 90 days

  2  after the issuance of the license.  A notice of cancellation

  3  shall be effective upon receipt.  The notice of cancellation

  4  shall provide the applicant with notification of the right to

  5  request a hearing within 21 days after the applicant's receipt

  6  of the notice of cancellation.  A license, permit, or

  7  registration shall be reinstated if the applicant can

  8  demonstrate that the requirements for obtaining the license,

  9  permit, or registration pursuant to this chapter ss.

10  494.001-494.0077 have been satisfied.

11         (7)  If an initial mortgage lender or branch office

12  license, permit, or registration has been issued but the check

13  upon which the license, permit, or registration is based is

14  returned due to insufficient funds, the license, permit, or

15  registration shall be deemed canceled.  A license, permit, or

16  registration deemed canceled pursuant to this subsection shall

17  be reinstated if the department receives a certified check for

18  the appropriate amount within 30 days after the date the check

19  was returned due to insufficient funds.

20         Section 20.  Subsections (1), (3), (9), and (10) of

21  section 494.0062, Florida Statutes, are amended to read:

22         494.0062  Correspondent mortgage lender's license

23  requirements.--

24         (1)  The department shall issue an initial

25  correspondent mortgage lender lender's license to any person

26  who submits:

27         (a)  A completed application form;

28         (b)  A nonrefundable application fee of $500 set by

29  rule of the department in an amount that may not exceed $400;

30         (c)  Audited financial statements, which document that

31  the application has a bona fide and verifiable net worth


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  1  pursuant to generally accepted accounting principles of

  2  $25,000 or more, which must be continuously maintained as a

  3  condition of licensure;

  4         (d)  A surety bond in the amount of $10,000, payable to

  5  the State of Florida and conditioned upon compliance with ss.

  6  494.001-494.0077, which inures to the department and which

  7  must be continuously maintained, thereafter, in full force;

  8  and

  9         (e)  Documentation that the applicant is duly

10  incorporated, registered, or otherwise formed as a general

11  partnership, limited partnership, limited liability company,

12  or other lawful entity under the laws of this state or another

13  state of the United States.

14         (3)  Each initial application for a correspondent

15  mortgage lender's license must be in a written form prescribed

16  by the department.  The division may require each applicant to

17  provide any information reasonably necessary to make a

18  determination of the applicant's eligibility for licensure.

19  The department may require that each officer, director, and

20  ultimate equitable owner of a 10-percent or greater interest

21  submit a complete set of fingerprints taken by an authorized

22  law enforcement officer.

23         (9)  A correspondent mortgage lender or branch office

24  license, permit, or registration may be canceled if it was

25  issued through mistake or inadvertence of the department. A

26  notice of cancellation must be issued by the department within

27  90 days after the issuance of the license.  A notice of

28  cancellation shall be effective upon receipt. The notice of

29  cancellation shall provide the applicant with notification of

30  the right to request a hearing within 21 days after the

31  applicant's receipt of the notice of cancellation.  A license,


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  1  permit, or registration shall be reinstated if the applicant

  2  can demonstrate that the requirements for obtaining the

  3  license, permit, or registration pursuant to this chapter ss.

  4  494.001-494.0077 have been satisfied.

  5         (10)  If an initial correspondent mortgage lender or

  6  branch office license, permit, or registration has been issued

  7  but the check upon which the license, permit, or registration

  8  is based is returned due to insufficient funds, the license,

  9  permit, or registration shall be deemed canceled.  A license,

10  permit, or registration deemed canceled pursuant to this

11  subsection shall be reinstated if the department receives a

12  certified check for the appropriate amount within 30 days

13  after the date the check was returned due to insufficient

14  funds.

15         Section 21.  Subsections (1), (3), and (4) of section

16  494.0064, Florida Statutes, are amended to read:

17         494.0064  Renewal of mortgage lender's license; branch

18  office license permit renewal.--

19         (1)  The department shall renew a mortgage lender

20  lender's license or correspondent lender's license upon

21  receipt of a completed renewal form and the nonrefundable

22  renewal fee of $575, in an amount not exceeding $500.  The

23  department shall renew a correspondent lender license upon

24  receipt of a completed renewal form and a nonrefundable

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

26  renewal a nonrefundable fee of $325 that may not exceed $250

27  for the renewal of each branch office license permit.

28         (3)  The license of a mortgage lender, correspondent

29  mortgage lender, or branch office that is not renewed by the

30  end of the biennium prescribed by the department automatically

31  reverts to inactive status.  An inactive license may be


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  1  reactivated within 6 months after becoming inactive by filing

  2  a completed reactivation form with the department, payment of

  3  the appropriate renewal fee, and payment of a nonrefundable

  4  reactivation fee of $100. A fee of $100 shall be charged for

  5  late renewal.

  6         (4)  A license that is not renewed within 6 months

  7  after the end of the biennial period automatically expires.

  8         Section 22.  Subsections (1) and (2) of section

  9  494.0066, Florida Statutes, are amended to read:

10         494.0066  Branch offices.--

11         (1)  A branch office license permit is required for

12  each branch office maintained by a licensee under ss.

13  494.006-494.0077.

14         (2)  The department shall issue a branch office license

15  permit upon receipt of a completed application form as

16  prescribed by by rule by the department and an initial

17  nonrefundable branch office license permit fee of $325 set by

18  rule of the department in an amount that may not exceed $250.

19  The branch office application must include the name and

20  license number of the licensee under ss. 494.006-494.0077, the

21  name of the licensee's employee in charge of the branch

22  office, and the address of the branch office.  The branch

23  office license permit shall be issued in the name of the

24  licensee under ss. 494.006-494.0077 and must be renewed in

25  conjunction with the license renewal.

26         Section 23.  Subsections (1), (2), (3), (4), (5), and

27  (9) of section 494.0067, Florida Statutes, are amended to

28  read:

29         494.0067  Requirements of licensees under ss.

30  494.006-494.0077.--

31


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  1         (1)  Each license of a mortgage lender, correspondent

  2  mortgage lender, or branch office permit shall be prominently

  3  displayed in the office for which it is issued.

  4         (2)  Each licensee under ss. 494.006-494.0077 which

  5  makes mortgage loans on real estate in this state shall

  6  transact business from a principal place of business in the

  7  state.  Each principal place of business and each branch

  8  office shall be operated under the full charge, control, and

  9  supervision of the licensee under ss. 494.006-494.0077.

10         (3)  A license or branch office permit issued under ss.

11  494.006-494.0077 is not transferable or assignable.

12         (4)  The department may require each licensee under ss.

13  494.006-494.0077 to report any change of address of the

14  principal place of business, change of address of any branch

15  office, or change of principal officer, director, or ultimate

16  equitable owner of 10 percent or more of the licensed

17  corporation to the department in a form prescribed by rule of

18  the department writing not later than 30 business days after

19  the change is effective.

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

21  report in a form prescribed by rule by the department writing

22  any indictment, information, charge, conviction, plea of nolo

23  contendere, or plea of guilty to any crime or administrative

24  violation that involves fraud, dishonest dealing, or any other

25  act of moral turpitude, in any jurisdiction, by the licensee

26  under ss. 494.006-494.0077 or any principal officer, director,

27  or ultimate equitable owner of 10 percent or more of the

28  licensed corporation, not later than 30 business days after

29  the indictment, information, charge, conviction, or final

30  administrative action.

31


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  1         (9)  Each licensee under ss. 494.006-494.0077, or

  2  person not required to be licensed under those sections, shall

  3  maintain a record of samples of each of its advertisements,

  4  including commercial scripts of each radio or television

  5  broadcast, for examination by the department for a period of 2

  6  years after the date of publication or broadcast.

  7         Section 24.  Effective January 1, 2000, subsection (10)

  8  is added to section 494.0067, Florida Statutes, to read:

  9         494.0067  Requirements of licensees under ss.

10  494.006-494.0077.--

11         (10)  On or before April 30, 2000, each mortgage lender

12  or correspondent mortgage lender shall file an initial report

13  stating the full legal name, residential address, social

14  security number, date of birth, mortgage broker license

15  number, date of hire, and, if applicable, date of termination

16  for each person who acted as a loan originator or an associate

17  of the mortgage lender or correspondent mortgage lender during

18  the immediate preceding quarter.   Thereafter, a mortgage

19  lender or correspondent mortgage lender shall file a report

20  only if a person became or ceased to be a loan originator or

21  an associate of the mortgage lender or correspondent mortgage

22  lender during the immediate preceding quarter.  Such report

23  shall be filed within 30 days after the last day of each

24  calendar quarter and shall contain the full legal name,

25  residential address, social security number, date of birth,

26  date of hire and, if applicable, the mortgage broker license

27  number and date of termination of each person who became or

28  ceased to be a loan originator or an associate of the mortgage

29  lender or correspondent mortgage lender during the immediate

30  preceding quarter.  The department shall prescribe, by rule,

31  the procedures for filing reports required by this subsection.


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  1         Section 25.  Paragraph (a) of subsection (2) and

  2  subsections (3) and (4) of section 494.0072, Florida Statutes,

  3  are amended, and paragraph (r) is added to subsection (2), to

  4  read:

  5         494.0072  Administrative penalties and fines; license

  6  violations.--

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

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

  9  may be taken:

10         (a)  Pleading nolo contendere to, or having been Being

11  convicted or found guilty of, regardless of whether

12  adjudication is withheld, of a crime involving in any

13  jurisdiction which involves fraud, dishonest dealing, or any

14  other act of moral turpitude.

15         (r)  Failure to timely pay any fee, charge, or fine

16  imposed or assessed pursuant to this chapter or rules adopted

17  under this chapter.

18         (3)  A mortgage lender or correspondent mortgage lender

19  is subject to the disciplinary actions specified in subsection

20  (1) if for a violation of subsection (2) by any officer,

21  director, or ultimate equitable owner of a 10-percent or

22  greater interest in the mortgage lender or correspondent

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

24  or correspondent mortgage lender violates any provision of

25  subsection (2) licensee.

26         (4)  A natural person who is an associate of or

27  employed by a mortgage lender or correspondent mortgage lender

28  is subject to the disciplinary actions specified in subsection

29  (1) if such person violates any provision for a violation of

30  subsection (2) regarding any action for which such person was

31  involved.


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  1         Section 26.  Section 494.0073, Florida Statutes, is

  2  amended to read:

  3         494.0073  Mortgage lender or correspondent mortgage

  4  lender when acting as a mortgage brokerage business

  5  broker.--Sections 494.006-494.0077 do not prohibit a mortgage

  6  lender or correspondent mortgage lender from acting as a

  7  mortgage brokerage business broker. However, in mortgage

  8  transactions in which a mortgage lender or correspondent

  9  mortgage lender acts as a mortgage brokerage business broker,

10  the provisions of ss. 494.0038, 494.0042, and 494.0043(1),

11  (2), and (3) apply.

12         Section 27.  Section 494.0037, Florida Statutes, is

13  repealed.

14         Section 28.  Except as otherwise provided in this act,

15  this act shall take effect October 1, 1999.

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