Senate Bill sb0352c2

    Florida Senate - 2007             CS for CS for SB's 352 & 240

    By the Committees on Judiciary; Banking and Insurance; and
    Senators Margolis, Bullard, Crist and Fasano




    590-2501-07

  1                      A bill to be entitled

  2         An act relating to real property fraud;

  3         creating s. 817.545, F.S.; defining the term

  4         "mortgage lending process"; specifying the

  5         elements of the offense of real property fraud;

  6         providing that such offense is a third-degree

  7         felony; providing for venue with respect to the

  8         committed offense; providing penalties;

  9         providing an effective date.

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

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13         Section 1.  Section 817.545, Florida Statutes, is

14  created to read:

15         817.545  Real property fraud.--

16         (1)  For the purposes of the section, the term

17  "mortgage lending process" means the process through which a

18  person seeks or obtains a residential mortgage loan,

19  including, but not limited to, the solicitation, application

20  or origination, negotiation of terms, third-party provider

21  services, underwriting, signing and closing, and funding of

22  the loan. Documents involved in the mortgage lending process

23  include, but are not limited to, mortgages, deeds, surveys,

24  inspection reports, uniform residential loan applications, or

25  other loan applications; appraisal reports; HUD-1 settlement

26  statements; supporting personal documentation for loan

27  applications such as W-2 forms, verifications of income and

28  employment, credit reports, bank statements, tax returns, and

29  payroll stubs; and any required disclosures.

30         (2)  A person commits the offense of real property

31  fraud if, with the intent to defraud, the person knowingly:

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






    Florida Senate - 2007             CS for CS for SB's 352 & 240
    590-2501-07




 1         (a)  Makes any material misstatement,

 2  misrepresentation, or omission during the mortgage lending

 3  process with the intention that the misstatement,

 4  misrepresentation, or omission will be relied on by a mortgage

 5  lender, borrower, or any other person or entity involved in

 6  the mortgage lending process; however, omissions on a loan

 7  application regarding employment, income, or assets for a loan

 8  which does not require this information are not considered a

 9  material omission for purposes of this subsection.

10         (b)  Uses or facilitates the use of any material

11  misstatement, misrepresentation, or omission during the

12  mortgage lending process with the intention that the material

13  misstatement, misrepresentation, or omission will be relied on

14  by a mortgage lender, borrower, or any other person or entity

15  involved in the mortgage lending process; however, omissions

16  on a loan application regarding employment, income, or assets

17  for a loan which does not require this information are not

18  considered a material omission for purposes of this

19  subsection.

20         (c)  Receives any proceeds or any other funds in

21  connection with the mortgage lending process that the person

22  knew resulted from a violation of paragraph (a) or paragraph

23  (b).

24         (d)  Files or causes to be filed with the clerk of the

25  circuit court for any county of this state a document involved

26  in the mortgage lending process which contains a material

27  misstatement, misrepresentation, or omission.

28         (3)  An offense of real property fraud may not be

29  predicated solely upon information lawfully disclosed under

30  federal disclosure laws, regulations, or interpretations

31  related to the mortgage lending process.

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    Florida Senate - 2007             CS for CS for SB's 352 & 240
    590-2501-07




 1         (4)  For the purpose of venue under this section, any

 2  violation of this section is considered to have been

 3  committed:

 4         (a)  In the county in which the real property is

 5  located; or

 6         (b)  In any county in which a material act was

 7  performed in furtherance of the violation.

 8         (5)  Any person who violates subsection (2) commits a

 9  felony of the third degree, punishable as provided in s.

10  775.082, s. 775.083, or s. 775.084.

11         Section 2.  This act shall take effect October 1, 2007.

12  

13          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
14                      CS for SB's 352 & 240

15                                 

16  This committee substitute differs from the underlying
    committee substitute in that it:
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    --   Provides a definition for the term "mortgage lending
18       process"; and

19  --   Replaces references to "real property transaction" with
         "mortgage lending process."
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CODING: Words stricken are deletions; words underlined are additions.