CS/HB 7099

1	A bill to be entitled
2	An act relating to mortgage brokering and mortgage
3	lending; amending s. 494.001, F.S.; redefining terms,
4	defining new terms, and deleting terms; amending s.
5	494.0011, F.S.; authorizing the Financial Services
6	Commission to adopt rules relating to compliance with the
7	S.A.F.E. Mortgage Licensing Act of 2008; requiring the
8	commission to adopt rules establishing time periods for
9	barring licensure for certain misdemeanors and felonies;
10	requiring the Office of Financial Regulation to
11	participate in the Nationwide Mortgage Licensing System
12	and Registry; creating s. 494.00115, F.S.; providing
13	exemptions from parts I, II, and III of ch. 494, F.S.,
14	relating to the licensing and regulation of loan
15	originators, mortgage brokers, and mortgage lenders;
16	creating s. 494.00135, F.S.; authorizing the office to
17	issue subpoenas for certain purposes; providing
18	requirements, procedures, and limitations; amending s.
19	494.0014, F.S.; revising provisions relating to the refund
20	of fees; deleting obsolete provisions; amending s.
21	494.00165, F.S.; prohibiting unfair and deceptive
22	advertising relating to mortgage brokering and lending;
23	repealing s. 494.0017, F.S., relating to claims paid from
24	the Regulatory Trust Fund; creating s. 494.00172, F.S.;
25	providing for a $20 fee to be assessed against loan
26	originators and a $100 fee to be assessed against mortgage
27	brokers and lenders at the time of license application or
28	renewal; providing that such fees shall be deposited into
29	the Mortgage Guaranty Trust Fund and used to pay claims
30	against licensees; providing for a cap on the amount
31	collected and deposited; providing requirements for
32	seeking recovery from the trust fund; providing
33	limitations on the amount paid; providing for the
34	assignment of certain rights to the office; providing that
35	payment for a claim is prima facie grounds for the
36	revocation of a license; amending s. 494.0018, F.S.;
37	conforming cross-references; amending ss. 494.0019 and
38	494.002, F.S.; conforming terms; amending s. 494.0023,
39	F.S.; deleting the statutory disclosure form and revising
40	the disclosure that must be provided to a borrower in
41	writing; providing that there is a conflicting interest if
42	a licensee or the licensee's relatives have a 1-percent or
43	more interest in the person providing additional products
44	or services; authorizing the commission to adopt rules;
45	deleting a definition; amending s. 494.0025, F.S.;
46	revising provisions specifying prohibited practices;
47	prohibiting the alteration, withholding, concealment, or
48	destruction of records relevant to regulated activities;
49	creating s. 494.00255, F.S.; providing for license
50	violations and administrative penalties; authorizing a
51	fine of $1,000 for each day of unlicensed activity up to
52	$25,000; amending s. 494.0026, F.S.; correcting a cross-
53	reference; amending s. 494.0028, F.S.; conforming terms;
54	repealing ss. 494.0029 and 494.00295, F.S., relating to
55	mortgage business schools and continuing education
56	requirements; creating s. 494.00296, F.S.; providing for
57	loan modification services; prohibiting certain related
58	acts by a mortgage broker, mortgage brokerage business,
59	correspondent mortgage lender, or mortgage lender;
60	providing for a loan modification agreement and for the
61	inclusion of a borrower's right of cancellation statement;
62	providing remedies; providing definitions; amending s.
63	494.00296, F.S., as created by the act; deleting
64	references to a mortgage brokerage business and a
65	correspondent mortgage lender, and adding reference to a
66	loan originator; deleting certain definitions; providing a
67	directive to the Division of Statutory Revision; repealing
68	s. 494.003, F.S., relating to exemptions from mortgage
69	broker licensing and regulation; repealing s. 494.0031,
70	F.S., relating to licensure as a mortgage brokerage
71	business; creating s. 494.00312, F.S.; providing
72	requirements and procedures for the licensure of loan
73	originators; providing license application requirements;
74	providing grounds for denial of licensure; requiring the
75	denial of a license under certain circumstances; requiring
76	licenses to be renewed annually by a certain date;
77	creating s. 494.00313, F.S.; providing for the renewal of
78	a loan originator license; providing license renewal
79	requirements; repealing s. 494.0032, F.S., relating to
80	renewal of a mortgage brokerage business license or branch
81	office license; creating s. 494.00321, F.S.; providing for
82	the licensure of mortgage brokers; providing license
83	application requirements; providing grounds for denial of
84	licensure; requiring the denial of a license under certain
85	circumstances; requiring licenses to be renewed annually
86	by a certain date; creating s. 494.00322, F.S.; providing
87	for the renewal of a mortgage broker license; providing
88	license renewal requirements; repealing s. 494.0033, F.S.,
89	relating to a mortgage broker license; amending s.
90	494.00331, F.S.; requiring a loan originator to be an
91	employee or independent contractor for a mortgage broker
92	or mortgage lender; repealing s. 494.0034, F.S., relating
93	to renewal of a mortgage broker license; amending s.
94	494.0035, F.S.; providing for the management of a mortgage
95	broker by a principal loan originator and a branch office
96	by a loan originator; providing minimum requirements;
97	amending s. 494.0036, F.S.; revising provisions relating
98	to the licensure of a mortgage broker's branch office;
99	amending s. 494.0038, F.S.; providing for application of
100	certain disclosure requirements to loan origination and
101	mortgage broker fees; amending s. 494.0039, F.S.;
102	conforming terms; amending s. 494.004, F.S.; revising
103	provisions relating to licensees; providing for registry
104	requirements; deleting obsolete provisions; repealing s.
105	494.0041, F.S., relating to license violations and
106	administrative penalties; amending s. 494.0042, F.S.;
107	providing for loan originator fees; conforming terms;
108	amending ss. 494.00421 and 494.0043, F.S.; conforming
109	terms; repealing s. 494.006, F.S., relating to exemptions
110	from mortgage lender licensing and regulation; repealing
111	s. 494.0061, F.S., relating to mortgage lender license
112	requirements; creating s. 494.00611, F.S.; providing
113	requirements and procedures for the licensure of mortgage
114	lenders; providing license application requirements;
115	providing grounds for denial of licensure; requiring the
116	denial of a license under certain circumstances; requiring
117	licenses to be renewed annually by a certain date;
118	creating s. 494.00612, F.S.; providing for the renewal of
119	a mortgage lender license; providing license renewal
120	requirements; repealing s. 494.0062, F.S., relating to
121	correspondent mortgage lender license requirements;
122	amending s. 494.0063, F.S.; requiring a mortgage lender to
123	obtain an annual financial audit report and submit a copy
124	to the office within certain time periods; repealing s.
125	494.0064, F.S., relating to renewal of a mortgage lender
126	license; repealing s. 494.0065, F.S., relating to certain
127	licenses and registrations that were converted into
128	mortgage lender licenses; amending s. 494.0066, F.S.;
129	revising provisions relating to a mortgage lender branch
130	office license; creating s. 494.00665, F.S.; providing for
131	a principal loan originator and branch manager for a
132	mortgage lender; providing requirements and limitations;
133	amending s. 494.0067, F.S.; revising requirements of
134	mortgage lenders; providing for registry requirements;
135	deleting obsolete provisions; providing for servicing
136	agreements; amending ss. 494.0068, 494.0069, 494.007, and
137	494.0071, F.S.; conforming terms; repealing s. 494.0072,
138	F.S., relating to license violations and administrative
139	penalties; amending ss. 494.00721, 494.0073, 494.0075, and
140	494.0077, F.S.; conforming terms; amending s. 501.1377,
141	F.S.; revising definitions; conforming terms; amending ss.
142	201.23, 420.507, 494.0076, 520.52, 520.63, 607.0505, and
143	687.12, F.S.; correcting cross-references; providing for
144	the expiration of mortgage business school permits,
145	mortgage brokerage business licenses, mortgage broker
146	licenses, mortgage lender licenses, and correspondent
147	mortgage lender licenses; providing requirements for
148	applying for a loan originator, mortgage broker, and
149	mortgage lender license by a certain date; providing
150	effective dates.
151
152	Be It Enacted by the Legislature of the State of Florida:
153
154	Section 1.  Section 494.001, Florida Statutes, is amended
155	to read:
156	494.001  Definitions.--As used in ss. 494.001-494.0077, the
157	term:
158	(1)  "Borrower" means a person obligated to repay a
159	mortgage loan and includes, but is not limited to, a coborrower,
160	cosignor, or guarantor. "Act as a correspondent mortgage lender"
161	means to make a mortgage loan.
162	(2)  "Act as a loan originator" means being employed by a
163	mortgage lender or correspondent mortgage lender, for
164	compensation or gain or in the expectation of compensation or
165	gain, to negotiate, offer to negotiate, or assist any licensed
166	or exempt entity in negotiating the making of a mortgage loan,
167	including, but not limited to, working with a licensed or exempt
168	entity to structure a loan or discussing terms and conditions
169	necessary for the delivery of a loan product. A natural person
170	whose activities are ministerial and clerical, which may include
171	quoting available interest rates, is not acting as a loan
172	originator.
173	(3)  "Act as a mortgage broker" means, for compensation or
174	gain, or in the expectation of compensation or gain, either
175	directly or indirectly, accepting or offering to accept an
176	application for a mortgage loan, soliciting or offering to
177	solicit a mortgage loan on behalf of a borrower, negotiating or
178	offering to negotiate the terms or conditions of a mortgage loan
179	on behalf of a lender, or negotiating or offering to negotiate
180	the sale of an existing mortgage loan to a noninstitutional
181	investor. An employee whose activities are ministerial and
182	clerical, which may include quoting available interest rates or
183	loan terms and conditions, is not acting as a mortgage broker.
184	(4)  "Act as a mortgage lender" means to make a mortgage
185	loan or to service a mortgage loan for others or, for
186	compensation or gain, or in the expectation of compensation or
187	gain, either directly or indirectly, to sell or offer to sell a
188	mortgage loan to a noninstitutional investor.
189	(5)  "Associate" means a person required to be licensed as
190	a mortgage broker under this chapter who is employed by or
191	acting as an independent contractor for a mortgage brokerage
192	business or a person acting as an independent contractor for a
193	mortgage lender or correspondent mortgage lender. The use of the
194	term associate, in contexts other than in the administration of
195	ss. 494.003-494.0077, shall not be construed to impose or effect
196	the common-law or statutory liability of the employer.
197	(2)(6)  "Branch manager broker" means the licensed loan
198	originator licensee in charge of, and responsible for, the
199	operation of the a branch office of a mortgage broker or
200	mortgage lender brokerage business.
201	(3)(7)  "Branch office" means a location, other than a
202	mortgage broker's or mortgage lender's licensee's principal
203	place of business:
204	(a)  The address of which appears on business cards,
205	stationery, or advertising used by the licensee in connection
206	with business conducted under this chapter;
207	(b)  At which the licensee's name, advertising or
208	promotional materials, or signage suggests suggest that mortgage
209	loans are originated, negotiated, funded, or serviced; or
210	(c)  At which, due to the actions of any employee or
211	associate of the licensee, may be construed by the public as a
212	branch office of the licensee where mortgage loans are
213	originated, negotiated, funded, or serviced by a licensee.
214	(4)(8)  "Commission" means the Financial Services
215	Commission.
216	(5)(9)  "Control person" means an individual, partnership,
217	corporation, trust, or other organization that possesses the
218	power, directly or indirectly, to direct the management or
219	policies of a company, whether through ownership of securities,
220	by contract, or otherwise. "Control person" includes, but is not
221	limited to A person is presumed to control a company if, with
222	respect to a particular company, that person:
223	(a)  A company's executive officers, including the
224	president, chief executive officer, chief financial officer,
225	chief operations officer, chief legal officer, chief compliance
226	officer, director, and other individuals having similar status
227	or functions.
228	(b)  For a corporation, each shareholder that, directly or
229	indirectly, owns 10 percent or more or that has the power to
230	vote 10 percent or more of a class of voting securities unless
231	the applicant is a publicly traded company.
232	(c)  For a partnership, all general partners and limited or
233	special partners that have contributed 10 percent or more or
234	that have the right to receive, upon dissolution, 10 percent or
235	more of the partnership's capital.
236	(d)  For a trust, each trustee.
237	(e)  For a limited liability company, all elected managers
238	and those members that have contributed 10 percent or more or
239	that have the right to receive, upon dissolution, 10 percent or
240	more of the partnership's capital.
241	(f)  Principal loan originators.
242	(6)  "Credit report" means any written, oral, or other
243	information obtained from a consumer reporting agency as
244	described in the federal Fair Credit Reporting Act which bears
245	on an individual's creditworthiness, credit standing, or credit
246	capacity. A credit score alone, as calculated by the reporting
247	agency, is not considered a credit report.
248	(7)  "Credit score" means a score, grade, or value that is
249	derived by using data from a credit report in any type of model,
250	method, or program, whether electronically, in an algorithm, in
251	a computer software or program, or by any other process, for the
252	purpose of grading or ranking credit report data.
253	(8)  "Depository institution" has the same meaning as in s.
254	(3)(c) of the Federal Deposit Insurance Act and includes any
255	credit union.
256	(9)  "Financial audit report" means a report prepared in
257	connection with a financial audit that is conducted in
258	accordance with generally accepted auditing standards prescribed
259	by the American Institute of Certified Public Accountants by a
260	certified public accountant licensed to do business in the
261	United States, and which must include:
262	(a)  Financial statements, including notes related to the
263	financial statements and required supplementary information,
264	prepared in conformity with United States generally accepted
265	accounting principles.
266	(b)  An expression of opinion regarding whether the
267	financial statements are presented in conformity with United
268	States generally accepted accounting principles or an assertion
269	to the effect that such an opinion cannot be expressed and the
270	reasons.
271	(a)  Is a director, general partner, or officer exercising
272	executive responsibility or having similar status or functions;
273	(b)  Directly or indirectly may vote 10 percent or more of
274	a class of voting securities or sell or direct the sale of 10
275	percent or more of a class of voting securities; or
276	(c)  In the case of a partnership, may receive upon
277	dissolution or has contributed 10 percent or more of the
278	capital.
279	(10)  "Office" means the Office of Financial Regulation of
280	the commission.
281	(11)  "Employed" means engaged in the service of another
282	for salary or wages subject to withholding, FICA, or other
283	lawful deductions by the employer as a condition of employment.
284	(12)  "Employee" means a natural person who is employed and
285	who is subject to the right of the employer to direct and
286	control the actions of the employee.
287	(13)  "Good standing" means that the registrant or
288	licensee, or a subsidiary or affiliate thereof, is not, at the
289	time of application, being penalized for one or more of the
290	following disciplinary actions by a licensing authority of any
291	state, territory, or country:
292	(a)  Revocation of a license or registration.
293	(b)  Suspension of a license or registration.
294	(c)  Probation of a license or registration for an offense
295	involving fraud, dishonest dealing, or an act of moral
296	turpitude.
297	(10)(14)  "Institutional investor" means a depository
298	institution state or national bank, state or federal savings and
299	loan association or savings bank, real estate investment trust,
300	insurance company, real estate company, accredited investor as
301	defined in 17 C.F.R. ss. 230.501 et seq., mortgage broker or
302	mortgage lender business licensed under this chapter ss.
303	494.001-494.0077, or other business entity that invests in
304	mortgage loans, including a secondary mortgage market
305	institution including, without limitation, the Federal National
306	Mortgage Association, the Federal Home Loan Mortgage
307	Corporation, and the Government National Mortgage Association,
308	conduits, investment bankers, and any subsidiary of such
309	entities.
310	(11)(15)  "Loan commitment" or "commitment" means a
311	statement by the lender setting forth the terms and conditions
312	upon which the lender is willing to make a particular mortgage
313	loan to a particular borrower.
314	(12)  "Loan modification" means a modification to an
315	existing loan. The term does not include a refinancing
316	transaction.
317	(13)  "Loan origination fee" means the total compensation
318	from any source received by a mortgage broker acting as a loan
319	originator. Any payment for processing mortgage loan
320	applications must be included in the fee and must be paid to the
321	mortgage broker.
322	(14)  "Loan originator" means an individual who, directly
323	or indirectly, solicits or offers to solicit a mortgage loan,
324	accepts or offers to accept an application for a mortgage loan,
325	negotiates or offers to negotiate the terms or conditions of a
326	new or existing mortgage loan on behalf of a borrower or lender,
327	processes a mortgage loan application, or negotiates or offers
328	to negotiate the sale of an existing mortgage loan to a
329	noninstitutional investor for compensation or gain. The term
330	includes the activities of a loan originator as that term is
331	defined in the S.A.F.E. Mortgage Licensing Act of 2008, and an
332	individual acting as a loan originator pursuant to that
333	definition is acting as a loan originator for purposes of this
334	definition. The term does not include an employee of a mortgage
335	broker or mortgage lender who performs only administrative or
336	clerical tasks, including quoting available interest rates,
337	physically handling a completed application form, or
338	transmitting a completed form to a lender on behalf of a
339	prospective borrower.
340	(15)(16)  "Lock-in agreement" means an agreement whereby
341	the lender guarantees for a specified number of days or until a
342	specified date the availability of a specified rate of interest
343	or specified formula by which the rate of interest will be
344	determined or and/or specific number of discount points will be
345	given, if the loan is approved and closed within the stated
346	period of time.
347	(16)(17)  "Making Make a mortgage loan" means closing to
348	close a mortgage loan in a person's name, advancing or to
349	advance funds, offering offer to advance funds, or making make a
350	commitment to advance funds to an applicant for a mortgage loan.
351	(17)  "Material change" means a change that would be
352	important to a reasonable borrower in making a borrowing
353	decision and includes a change in the interest rate previously
354	offered a borrower, a change in the type of loan offered to a
355	borrower, or a change in fees to be charged to a borrower
356	resulting in total fees greater than $100.
357	(18)  "Mortgage broker" means a person conducting loan
358	originator activities through one or more licensed loan
359	originators employed by the mortgage broker or as independent
360	contractors to the mortgage broker.
361	(19)  "Mortgage lender" means a person making a mortgage
362	loan or servicing a mortgage loan for others or, for
363	compensation or gain, directly or indirectly, selling or
364	offering to sell a mortgage loan to a noninstitutional investor.
365	(18)  "Mortgage brokerage fee" means a fee received for
366	acting as a mortgage broker.
367	(19)  "Mortgage brokerage business" means a person acting
368	as a mortgage broker.
369	(20)  "Mortgage loan" means any:
370	(a)  Residential mortgage loan primarily for personal,
371	family, or household use which is secured by a mortgage, deed of
372	trust, or other equivalent consensual security interest on a
373	dwelling, as defined in s. 103(v) of the federal Truth in
374	Lending Act, or for the purchase of residential real estate upon
375	which a dwelling is to be constructed;
376	(b)  Loan on commercial real property if the borrower is an
377	individual a natural person or the lender is a noninstitutional
378	investor; or
379	(c)  Loan on improved real property consisting of five or
380	more dwelling units if the borrower is an individual a natural
381	person or the lender is a noninstitutional investor.
382	(21)  "Mortgage loan application" means the submission of a
383	borrower's financial information in anticipation of a credit
384	decision, which includes the borrower's name, the borrower's
385	monthly income, the borrower's social security number to obtain
386	a credit report, the property address, an estimate of the value
387	of the property, the mortgage loan amount sought, and any other
388	information deemed necessary by the loan originator. An
389	application may be in writing or electronically submitted,
390	including a written record of an oral application.
391	(22)(21)  "Net worth" means total assets minus total
392	liabilities pursuant to United States generally accepted
393	accounting principles.
394	(23)(22)  "Noninstitutional investor" means an investor
395	other than an institutional investor.
396	(23)  "Nonresidential mortgage loan" means a mortgage loan
397	other than a residential mortgage loan.
398	(24)  "Office" means the Office of Financial Regulation.
399	(25)(24)  "Person" has the same meaning as in s. 1.01 means
400	an individual, partnership, corporation, association, or other
401	group, however organized.
402	(26)  "Principal loan originator" means the licensed loan
403	originator in charge of, and responsible for, the operation of a
404	mortgage lender or mortgage broker, including all of the
405	activities of the mortgage lender's or mortgage broker's loan
406	originators and branch managers, whether employees or
407	independent contractors.
408	(25)  "Principal broker" means a licensee in charge of, and
409	responsible for, the operation of the principal place of
410	business and all branch brokers.
411	(27)(26)  "Principal place of business" means a mortgage
412	broker's or mortgage lender's licensee's primary business office
413	at the street address or physical location of which is
414	designated on the application for licensure or any amendment to
415	such application.
416	(28)  "Registered loan originator" means a loan originator
417	who is employed by a depository institution, by a subsidiary
418	that is owned and controlled by a depository institution and
419	regulated by a federal banking agency, or by an institution
420	regulated by the Farm Credit Administration and who is
421	registered with and maintains a unique identifier through the
422	registry.
423	(29)  "Registry" means the Nationwide Mortgage Licensing
424	System and Registry, which is the mortgage licensing system
425	developed and maintained by the Conference of State Bank
426	Supervisors and the American Association of Residential Mortgage
427	Regulators for the licensing and registration of loan
428	originators.
429	(30)  "Relative" means any of the following, whether by the
430	full or half blood or by adoption:
431	(a)  A person's spouse, father, mother, children, brothers,
432	and sisters.
433	(b)  The father, mother, brothers, and sisters of the
434	person's spouse.
435	(c)  The spouses of the person's children, brothers, or
436	sisters.
437	(27)  "Residential mortgage loan" means any mortgage or
438	other security instrument secured by improved real property
439	consisting of no more than four dwelling units.
440	(31)(28)  "Servicing Service a mortgage loan" means
441	receiving to receive, or causing cause to be received or
442	transferred for another, installment payments of principal,
443	interest, or other payments pursuant to a mortgage loan.
444	(32)  "Servicing endorsement" means authorizing a mortgage
445	lender to service a loan for more than 4 months.
446	(33)(29)  "Substantial fault of the borrower" means that
447	the borrower:
448	(a)  Failed to provide information or documentation
449	required by the lender or broker in a timely manner;
450	(b)  Provided information, in the application or
451	subsequently, which upon verification proved to be significantly
452	inaccurate, causing the need for review or further investigation
453	by the lender or broker;
454	(c)  Failed to produce by no later than the date specified
455	by the lender all documentation specified in the commitment or
456	closing instructions as being required for closing; or
457	(d)  Failed to be ready, willing, or able to close the loan
458	by no later than the date specified by the lender or broker.
459
460	For purposes of this definition, a borrower is considered to
461	have provided information or documentation in a timely manner if
462	such information and documentation was received by the lender
463	within 7 days after the borrower received a request for same,
464	and information is considered significantly inaccurate if the
465	correct information materially affects the eligibility of the
466	borrower for the loan for which application is made.
467	(34)(30)  "Ultimate equitable owner" means an individual a
468	natural person who, directly or indirectly, owns or controls an
469	ownership interest in a corporation, a foreign corporation, an
470	alien business organization, or any other form of business
471	organization, regardless of whether the individual such natural
472	person owns or controls such ownership interest through one or
473	more individuals natural persons or one or more proxies, powers
474	of attorney, nominees, corporations, associations, partnerships,
475	trusts, joint stock companies, or other entities or devices, or
476	any combination thereof.
477	(31)  "Principal representative" means an individual who
478	operates the business operations of a licensee under part III.
479	(32)  "Mortgage loan application" means a submission of a
480	borrower's financial information in anticipation of a credit
481	decision, whether written or computer-generated, relating to a
482	mortgage loan. If the submission does not state or identify a
483	specific property, the submission is an application for a
484	prequalification and not an application for a mortgage loan
485	under this part. The subsequent addition of an identified
486	property to the submission converts the submission to an
487	application for a mortgage loan.
488	(33)  "Mortgage brokerage fee" means the total compensation
489	to be received by a mortgage brokerage business for acting as a
490	mortgage broker.
491	(34)  "Business day" means any calendar day except Sunday
492	or a legal holiday.
493	Section 2.  Section 494.0011, Florida Statutes, is amended
494	to read:
495	494.0011  Powers and duties of the commission and office.--
496	(1)  The office shall be responsible for the administration
497	and enforcement of ss. 494.001-494.0077.
498	(2)  The commission may adopt rules pursuant to ss.
499	120.536(1) and 120.54 To administer implement ss. 494.001-
500	494.0077,. the commission may adopt rules:
501	(a)  Requiring electronic submission of any forms,
502	documents, or fees required by this act if such rules reasonably
503	accommodate technological or financial hardship.
504	(b)  Relating to compliance with the S.A.F.E. Mortgage
505	Licensing Act of 2008, including rules to:
506	1.  Require loan originators, mortgage brokers, mortgage
507	lenders, and branch offices to register through the registry.
508	2.  Require the use of uniform forms that have been
509	approved by the registry, and any subsequent amendments to such
510	forms if the forms are substantially in compliance with the
511	provisions of this chapter. Uniform forms that the commission
512	may adopt include, but are not limited to:
513	a.  Uniform Mortgage Lender/Mortgage Broker Form, MU1.
514	b.  Uniform Mortgage Biographical Statement & Consent Form,
515	MU2.
516	c.  Uniform Mortgage Branch Office Form, MU3.
517	d.  Uniform Individual Mortgage License/Registration &
518	Consent Form, MU4.
519	3.  Require the filing of forms, documents, and fees in
520	accordance with the requirements of the registry.
521	4.  Prescribe requirements for amending or surrendering a
522	license or other activities as the commission deems necessary
523	for the office's participation in the registry.
524	5.  Prescribe procedures that allow a licensee to challenge
525	information contained in the registry.
526	6.  Prescribe procedures for reporting violations of this
527	chapter and disciplinary actions on licensees to the registry.
528	(c)  Establishing time periods during which a loan
529	originator, mortgage broker, or mortgage lender license
530	applicant under part II or part III is barred from licensure due
531	to prior criminal convictions of, or guilty or nolo contendere
532	pleas by, any of the applicant's control persons, regardless of
533	adjudication.
534	1.  The rules must provide:
535	a.  Permanent bars for felonies involving fraud,
536	dishonesty, breach of trust, or money laundering;
537	b.  A 15-year disqualifying period for felonies involving
538	moral turpitude;
539	c.  A 7-year disqualifying period for all other felonies;
540	and
541	d.  A 5-year disqualifying period for misdemeanors
542	involving fraud, dishonesty, or any other act of moral
543	turpitude.
544	2.  The rules may provide for an additional waiting period
545	due to dates of imprisonment or community supervision, the
546	commitment of multiple crimes, and other factors reasonably
547	related to the applicant's criminal history.
548	3.  The rules may provide for mitigating factors for crimes
549	identified in sub-subparagraph 1.b. However, the mitigation may
550	not result in a period of disqualification less than 7 years.
551	The rule may not mitigate the disqualifying periods in sub-
552	subparagraphs 1.a., 1.c., and 1.d.
553	4.  An applicant is not eligible for licensure until the
554	expiration of the disqualifying period set by rule.
555	5.  Section 112.011 is not applicable to eligibility for
556	licensure under this part. The commission may prescribe by rule
557	requirements and procedures for obtaining an exemption due to a
558	technological or financial hardship. The commission may also
559	adopt rules to accept certification of compliance with
560	requirements of this act in lieu of requiring submission of
561	documents.
562	(3)  Except as provided in s. 494.00172, all fees, charges,
563	and fines collected pursuant to ss. 494.001-494.0077 shall be
564	deposited in the State Treasury to the credit of the Regulatory
565	Trust Fund of under the office.
566	(4)  The office shall participate in the registry and shall
567	regularly report to the registry violations of this chapter,
568	disciplinary actions, and other information deemed relevant by
569	the office under this chapter.
570	(4)(a)  The office has the power to issue and to serve
571	subpoenas and subpoenas duces tecum to compel the attendance of
572	witnesses and the production of all books, accounts, records,
573	and other documents and materials relevant to an examination or
574	investigation. The office, or its duly authorized
575	representative, has the power to administer oaths and
576	affirmations to any person.
577	(b)  The office may, in its discretion, seek subpoenas or
578	subpoenas duces tecum from any court of competent jurisdiction
579	commanding the appearance of witnesses and the production of
580	books, accounts, records, and other documents or materials at a
581	time and place named in the subpoenas; and any authorized
582	representative of the office may serve any subpoena.
583	(5)(a)  In the event of substantial noncompliance with a
584	subpoena or subpoena duces tecum issued or caused to be issued
585	by the office, the office may petition the circuit court or any
586	other court of competent jurisdiction of the county in which the
587	person subpoenaed resides or has its principal place of business
588	for an order requiring the subpoenaed person to appear and
589	testify and to produce such books, accounts, records, and other
590	documents as are specified in the subpoena duces tecum. The
591	court may grant injunctive relief restraining the person from
592	advertising, promoting, soliciting, entering into, offering to
593	enter into, continuing, or completing any mortgage loan
594	transaction or mortgage loan servicing transaction. The court
595	may grant such other relief, including, but not limited to, the
596	restraint, by injunction or appointment of a receiver, of any
597	transfer, pledge, assignment, or other disposition of the
598	person's assets or any concealment, alteration, destruction, or
599	other disposition of books, accounts, records, or other
600	documents and materials as the court deems appropriate, until
601	the person has fully complied with the subpoena duces tecum and
602	the office has completed its investigation or examination. In
603	addition, the court may order the refund of any fees collected
604	in a mortgage loan transaction whenever books and documents
605	substantiating the transaction are not produced or cannot be
606	produced. The office is entitled to the summary procedure
607	provided in s. 51.011, and the court shall advance such cause on
608	its calendar. Attorney's fees and any other costs incurred by
609	the office to obtain an order granting, in whole or part, a
610	petition for enforcement of a subpoena or subpoena duces tecum
611	shall be taxed against the subpoenaed person, and failure to
612	comply with such order is a contempt of court.
613	(b)  When it appears to the office that the compliance with
614	a subpoena or subpoena duces tecum issued or caused to be issued
615	by the office pursuant to this section is essential and
616	otherwise unavailable to an investigation or examination, the
617	office, in addition to the other remedies provided for in this
618	section, may apply to the circuit court or any other court of
619	competent jurisdiction of the county in which the subpoenaed
620	person resides or has its principal place of business for a writ
621	of ne exeat. The court shall thereupon direct the issuance of
622	the writ against the subpoenaed person requiring sufficient bond
623	conditioned on compliance with the subpoena or subpoena duces
624	tecum. The court shall cause to be endorsed on the writ a
625	suitable amount of bond upon the payment of which the person
626	named in the writ shall be freed, having a due regard to the
627	nature of the case.
628	(c)  Alternatively, the office may seek a writ of
629	attachment from the court having jurisdiction over the person
630	who has refused to obey a subpoena, who has refused to give
631	testimony, or who has refused to produce the matters described
632	in the subpoena duces tecum.
633	(6)  The grant or denial of any license under this chapter
634	must be in accordance with s. 120.60.
635	Section 3.  Section 494.00115, Florida Statutes, is created
636	to read:
637	494.00115  Exemptions.--
638	(1)  The following are exempt from regulation as a loan
639	originator, mortgage broker, or mortgage lender under part I,
640	part II, or part III of this chapter:
641	(a)  Any person operating exclusively as a registered loan
642	originator in accordance with the S.A.F.E. Mortgage Licensing
643	Act of 2008.
644	(b)  A depository institution; subsidiaries that are owned
645	and controlled by a depository institution and regulated by the
646	Board of Governors of the Federal Reserve System, the
647	Comptroller of the Currency, the Director of the Office of
648	Thrift Supervision, the National Credit Union Administration, or
649	the Federal Deposit Insurance Corporation; or institutions
650	regulated by the Farm Credit Administration.
651	(c)  The Federal National Mortgage Association; the Federal
652	Home Loan Mortgage Corporation; any agency of the Federal
653	Government; any state, county, or municipal government; or any
654	quasi-governmental agency that acts in such capacity under the
655	specific authority of the laws of any state or the United
656	States.
657	(d)  A licensed attorney who negotiates the terms of a
658	mortgage loan on behalf of a client as an ancillary matter to
659	the attorney's representation of the client.
660	(e)  A person involved solely in the extension of credit
661	relating to the purchase of a timeshare plan, as that term is
662	defined in 11 U.S.C. s. 101(53D).
663	(2)  The following persons are exempt from regulation as
664	mortgage lender under part III of this chapter:
665	(a)  A person acting in a fiduciary capacity conferred by
666	the authority of a court.
667	(b)  A person who, as a seller of his or her own real
668	property, receives one or more mortgages in a purchase money
669	transaction.
670	(c)  A person who acts solely under contract and as an
671	agent for federal, state, or municipal agencies for the purpose
672	of servicing mortgage loans.
673	(d)  A person who makes only nonresidential mortgage loans
674	and sells loans only to institutional investors.
675	(e)  An individual making or acquiring a mortgage loan
676	using his or her own funds for his or her own investment and who
677	does not hold himself or herself out to the public as being in
678	the mortgage lending business.
679	(f)  An individual selling a mortgage that was made or
680	purchased with that individual's funds for his or her own
681	investment and who does not hold himself or herself out to the
682	public as being in the mortgage lending business.
683	(3)  It is not necessary to negate any of the exemptions
684	provided in this section in any complaint, information,
685	indictment, or other writ or proceeding brought under ss.
686	494.001-494.0077. The burden of establishing the right to an
687	exemption is on the party claiming the benefit of the exemption.
688	Section 4.  Section 494.00135, Florida Statutes, is created
689	to read:
690	494.00135  Subpoenas.--
691	(1)  The office may:
692	(a)  Issue and serve subpoenas and subpoenas duces tecum to
693	compel the attendance of witnesses and the production of all
694	books, accounts, records, and other documents and materials
695	relevant to an examination or investigation conducted by the
696	office. The office, or its authorized representative, may
697	administer oaths and affirmations to any person.
698	(b)  Seek subpoenas or subpoenas duces tecum from any court
699	to command the appearance of witnesses and the production of
700	books, accounts, records, and other documents or materials at a
701	time and place named in the subpoenas, and an authorized
702	representative of the office may serve such subpoena.
703	(2)  If there is substantial noncompliance with a subpoena
704	or subpoena duces tecum issued by the office, the office may
705	petition the court in the county where the person subpoenaed
706	resides or has his or her principal place of business for an
707	order requiring the person to appear, testify, or produce such
708	books, accounts, records, and other documents as are specified
709	in the subpoena or subpoena duces tecum.
710	(a)  The court may grant injunctive relief restraining the
711	person from advertising, promoting, soliciting, entering into,
712	offering to enter into, continuing, or completing a mortgage
713	loan or servicing a mortgage loan.
714	(b)  The court may grant such other relief, including, but
715	not limited to, the restraint, by injunction or appointment of a
716	receiver, of any transfer, pledge, assignment, or other
717	disposition of the person's assets or any concealment,
718	alteration, destruction, or other disposition of books,
719	accounts, records, or other documents and materials as the court
720	deems appropriate, until the person has fully complied with the
721	subpoena duces tecum and the office has completed its
722	investigation or examination.
723	(c)  The court may order the refund of any fees collected
724	in a mortgage loan transaction if books and documents
725	substantiating the transaction are not produced or cannot be
726	produced.
727	(d)  If it appears to the office that compliance with a
728	subpoena or subpoena duces tecum issued is essential and
729	otherwise unavailable to an investigation or examination, the
730	office may apply to the court for a writ of ne exeat pursuant to
731	s. 68.02.
732	(e)  The office may seek a writ of attachment to obtain all
733	books, accounts, records, and other documents and materials
734	relevant to an examination or investigation.
735	(3)  The office is entitled to the summary procedure
736	provided in s. 51.011, and the court shall advance such cause on
737	its calendar. Attorney's fees and any other costs incurred by
738	the office to obtain an order granting, in whole or in part, a
739	petition for enforcement of a subpoena or subpoena duces tecum
740	shall be taxed against the subpoenaed person, and failure to
741	comply with such order is a contempt of court.
742	Section 5.  Section 494.0014, Florida Statutes, is amended
743	to read:
744	494.0014  Cease and desist orders; administrative fines;
745	refund orders.--
746	(1)  The office may has the power to issue and serve upon
747	any person an order to cease and desist and to take corrective
748	action if whenever it has reason to believe the person is
749	violating, has violated, or is about to violate any provision of
750	ss. 494.001-494.0077, any rule or order issued under ss.
751	494.001-494.0077, or any written agreement between the person
752	and the office. All procedural matters relating to issuance and
753	enforcement of such a cease and desist order are governed by the
754	Administrative Procedure Act.
755	(2)  The office may has the power to order the refund of
756	any fee directly or indirectly assessed and charged on a
757	mortgage loan transaction which is unauthorized or exceeds the
758	maximum fee specifically authorized in ss. 494.001-494.0077, or
759	any amount collected for the payment of third-party fees which
760	exceeds the cost of the service provided.
761	(3)  The office may prohibit the association by a mortgage
762	broker business, or the employment by a mortgage lender or
763	correspondent mortgage lender, of any person who has engaged in
764	a pattern of misconduct while an associate of a mortgage
765	brokerage business or an employee of a mortgage lender or
766	correspondent mortgage lender. For the purpose of this
767	subsection, the term "pattern of misconduct" means the
768	commission of three or more violations of ss. 494.001-494.0077
769	or the provisions of chapter 494 in effect prior to October 1,
770	1991, during any 1-year period or any criminal conviction for
771	violating ss. 494.001-494.0077 or the provisions of chapter 494
772	in effect prior to October 1, 1991.
773	(4)  The office may impose upon any person who makes or
774	brokers a loan, or any mortgage business school, a fine for
775	violations of any provision of ss. 494.001-494.00295 or any rule
776	or order issued under ss. 494.001-494.00295 in an amount not
777	exceeding $5,000 for each separate count or offense.
778	Section 6.  Effective July 1, 2009, section 494.00165,
779	Florida Statutes, is amended to read:
780	494.00165  Prohibited advertising; record requirements.--
781	(1)  It is a violation of this chapter for any person to:
782	(a)  Advertise that an applicant shall will have
783	unqualified access to credit without disclosing the what
784	material limitations on the availability of such credit exist.
785	Such Material limitations include, but are not limited to, the
786	percentage of down payment required, that a higher rate or
787	points could be required, or that restrictions on as to the
788	maximum principal amount of the loan offered could apply.
789	(b)  Advertise a mortgage loan at an expressed interest
790	rate unless the advertisement specifically states that the
791	expressed rate could change or not be available at commitment or
792	closing.
793	(c)  Advertise mortgage loans, including rates, margins,
794	discounts, points, fees, commissions, or other material
795	information, including material limitations on such loans,
796	unless the such person is able to make such mortgage loans
797	available to a reasonable number of qualified applicants.
798	(d)  Falsely advertise or misuse names indicating a federal
799	agency pursuant to 18 U.S.C. s. 709.
800	(e)  Engage in unfair, deceptive, or misleading advertising
801	regarding mortgage loans, brokering services, or lending
802	services.
803	(2)  Each person required to be licensed under this chapter
804	must shall maintain a record of samples of each of its
805	advertisements, including commercial scripts of each radio or
806	television broadcast, for examination by the office for a period
807	of 2 years after the date of publication or broadcast.
808	Section 7.  Section 494.0017, Florida Statutes, is
809	repealed.
810	Section 8.  Section 494.00172, Florida Statutes, is created
811	to read:
812	494.00172  Mortgage Guaranty Trust Fund; payment of fees
813	and claims.--A nonrefundable fee is imposed on each application
814	for a mortgage broker, mortgage lender, or loan originator
815	license and on each annual application for a renewal of such
816	license. For a loan originator, the initial and renewal fee is
817	$20. For mortgage brokers and lenders, the initial and renewal
818	fee is $100. This fee is in addition to the regular application
819	or renewal fee assessed and shall be deposited into the Mortgage
820	Guaranty Trust Fund of the office for the payment of claims in
821	accordance with this section.
822	(1)  If the amount in the trust fund exceeds $5 million,
823	the additional fee shall be discontinued and may not be
824	reimposed until the fund is reduced to below $1 million pursuant
825	to disbursements made in accordance with this section.
826	(2)  A borrower in a mortgage loan transaction is eligible
827	to seek recovery from the trust fund if all of the following
828	conditions are met:
829	(a)  The borrower has recorded a final judgment issued by a
830	state court wherein the cause of action against a licensee under
831	this chapter was based on a violation of this chapter and the
832	damages were the result of that violation.
833	(b)  The borrower has caused a writ of execution to be
834	issued upon such judgment, and the officer executing the
835	judgment has made a return showing that no personal or real
836	property of the judgment debtor liable to be levied upon in
837	satisfaction of the judgment can be found or that the amount
838	realized on the sale of the judgment debtor's property pursuant
839	to such execution is insufficient to satisfy the judgment.
840	(c)  The borrower has made all reasonable searches and
841	inquiries to ascertain whether the judgment debtor possesses
842	real or personal property or other assets subject to being sold
843	or applied in satisfaction of the judgment and has discovered no
844	such property or assets; or he or she has discovered property
845	and assets and has taken all necessary action and proceedings
846	for the application thereof to the judgment, but the amount
847	realized is insufficient to satisfy the judgment.
848	(d)  The borrower has applied any amounts recovered from
849	the judgment debtor, or from any other source, to the damages
850	awarded by the court.
851	(e)  The borrower, at the time the action was instituted,
852	gave notice and provided a copy of the complaint to the office
853	by certified mail. The requirement of a timely giving of notice
854	may be waived by the office upon a showing of good cause.
855	(f)  The act for which recovery is sought occurred on or
856	after January 1, 2011.
857	(3)  The requirements of subsection (2) are not applicable
858	if the licensee upon which the claim is sought has filed for
859	bankruptcy or has been adjudicated bankrupt. However, the
860	claimant must file a proof of claim in the bankruptcy
861	proceedings and must notify the office by certified mail of the
862	claim by enclosing a copy of the proof of claim and all
863	supporting documents.
864	(4)  Any person who meets all of the conditions in
865	subsection (2) may apply to the office for payment from the
866	trust fund equal to the unsatisfied portion of that person's
867	judgment or $50,000, whichever is less, but only to the extent
868	that the amount reflected in the judgment is for actual or
869	compensatory damages, plus any attorney's fees and costs awarded
870	by the trial court which have been determined by the court, and
871	the documented costs associated with attempting to collect the
872	judgment. Actual or compensatory damages may not include
873	postjudgment interest. Attorney's fees may not exceed $5,000 or
874	20 percent of the actual or compensatory damages, whichever is
875	less. If actual or compensatory damages, plus attorney's fees
876	and costs, exceed $50,000, actual or compensatory damages must
877	be paid first. The cumulative payment for actual or compensatory
878	damages, plus attorney's fees and costs, may not exceed $50,000
879	as described in this section.
880	(a)  A borrower may not collect more than $50,000 from the
881	trust fund for any claim regardless of the number of licensees
882	liable for the borrower's damages.
883	(b)  Payments for claims are limited in the aggregate to
884	$250,000 against any one licensee under this chapter. If the
885	total claims exceed the aggregate limit of $250,000, the office
886	shall prorate payments based on the ratio that a claim bears to
887	the total claims filed.
888	(c)  Payments shall be made to all persons meeting the
889	requirements of subsection (2) 2 years after the date the first
890	complete and valid notice is received by the office. Persons who
891	give notice after 2 years and who otherwise comply with the
892	conditions precedent to recovery may recover from any remaining
893	portion of the $250,000 aggregate as provided in this
894	subsection, with claims being paid in the order notice was
895	received until the $250,000 aggregate has been disbursed.
896	(d)  The claimant shall assign his or her right, title, and
897	interest in the judgment, to the extent of his recovery from the
898	fund, to the office and shall record, at his or her own expense,
899	the assignment of judgment in every county where the judgment is
900	recorded.
901	(e)  If the money in the fund is insufficient to satisfy
902	any valid claim or portion thereof, the office shall satisfy
903	such unpaid claim or portion as soon as a sufficient amount of
904	money has been deposited in the trust fund. If there is more
905	than one unsatisfied claim outstanding, such claims shall be
906	paid in the order in which the claims were filed with the
907	office.
908	(f)  The payment of any amount from the fund in settlement
909	of a claim or in satisfaction of a judgment against a licensee
910	constitutes prima facie grounds for the revocation of the
911	license.
912	Section 9.  Section 494.0018, Florida Statutes, is amended
913	to read:
914	494.0018  Penalties.--
915	(1)  Whoever knowingly violates any provision of s.
916	494.00255(1)(a), (b), or (c) s. 494.0041(2)(e), (f), or (g); s.
917	494.0072(2)(e), (f), or (g); or s. 494.0025(1), (2), (3), (4),
918	or (5), except as provided in subsection (2) of this section,
919	commits is guilty of a felony of the third degree, punishable as
920	provided in s. 775.082, s. 775.083, or s. 775.084. Each such
921	violation constitutes a separate offense.
922	(2)  Any person who commits convicted of a violation of any
923	provision of ss. 494.001-494.0077, in which violation the total
924	value of money and property unlawfully obtained exceeds exceeded
925	$50,000 and there are were five or more victims, commits is
926	guilty of a felony of the first degree, punishable as provided
927	in s. 775.082, s. 775.083, or s. 775.084.
928	Section 10.  Effective July 1, 2009, section 494.0019,
929	Florida Statutes, is amended to read:
930	494.0019  Liability in case of unlawful transaction.--
931	(1)  If a mortgage loan transaction is made in violation of
932	any provision of ss. 494.001-494.0077, the person making the
933	transaction and every licensee, director, or officer who
934	participated in making the transaction are jointly and severally
935	liable to every party to the transaction in an action for
936	damages incurred by the party or parties.
937	(2)  A person is not liable under this section upon a
938	showing that such person's licensees, officers, and directors
939	who participated in making the mortgage loan transaction, if
940	any, acted in good faith and without knowledge and, with the
941	exercise of due diligence, could not have known of the act
942	committed in violation of ss. 494.001-494.0077.
943	Section 11.  Effective July 1, 2009, section 494.002,
944	Florida Statutes, is amended to read:
945	494.002  Statutory or common-law remedies.--Sections
946	Nothing in ss. 494.001-494.0077 do not limit limits any
947	statutory or common-law right of any person to bring any action
948	in any court for any act involved in the mortgage loan business
949	or the right of the state to punish any person for any violation
950	of any law.
951	Section 12.  Section 494.0023, Florida Statutes, is amended
952	to read:
953	494.0023  Conflicting interest.--
954	(1)  If, in a mortgage transaction, a licensee has a
955	conflicting interest as specified in subsection (2), the
956	licensee shall, at a minimum, provide the following disclosures
957	to the borrower in writing:
958	(a)  The nature of the relationship, ownership, or
959	financial interest between the provider of products or services,
960	or business incident thereto, and the licensee making the
961	referral; The type of conflicting interest shall be fully and
962	fairly disclosed.
963	(b)  An estimated charge or range of charges generally made
964	by such a provider; The licensee shall inform the borrower in
965	writing
966	(c)  That a financial benefit may be received by the
967	licensee as a result of the conflicting interest; and.
968	(d)(c)  The borrower shall be informed That alternative
969	sources may be chosen by the borrower to provide the any
970	required products or services. The following language must be
971	contained in 12-point type in any agreement between a mortgage
972	broker, mortgage lender, or correspondent mortgage lender and a
973	borrower in substantially this form:
974
975	You are not required to purchase additional products or services
976	from any person or entity suggested or recommended by
977	(Broker/Lender/Correspondent Lender). However, the
978	(Broker/Lender/Correspondent Lender) hereby reserves the right
979	to approve the entity selected by the borrower, which approval
980	may not be unreasonably withheld.
981	(2)  A licensee has a conflicting interest if:
982	(a)  The licensee or the licensee's relative provides the
983	borrower with additional products or services;
984	(b)  The licensee or licensee's relative, either directly
985	or indirectly, owns, controls, or holds with power to vote, or
986	holds proxies representing, 1 10 percent or more of any class of
987	equity securities or other beneficial interest in the such
988	person providing the additional products or services;
989	(c)  The person providing the additional products or
990	services, either directly or indirectly, owns, controls, or
991	holds the power to vote, or holds proxies representing, 1 10
992	percent or more of any class of equity securities or other
993	beneficial interest in the licensee;
994	(d)  A holding company, either directly or indirectly,
995	owns, controls, or holds with power to vote, or holds proxies
996	representing, 1 10 percent or more of any class of equity
997	securities or other beneficial interest in both the licensee and
998	the person providing the additional products or services;
999	(e)  One or more persons, or such person's relative, sits
1000	as an officer or director, or performs similar functions as an
1001	officer or director, for both the licensee and the person
1002	providing the additional products or services; or
1003	(f)  The licensee or the licensee's relative sits as an
1004	officer or director, or performs similar functions as an officer
1005	or director, of the person providing the additional products or
1006	services.
1007	(3)  The commission may adopt rules to administer the
1008	disclosure requirements of this section. The rules must consider
1009	the disclosure requirements of the federal Real Estate
1010	Settlement Procedures Act, 12 U.S.C. ss. 2601 et seq.; the
1011	federal Truth in Lending Act, 15 U.S.C. ss. 1601 et seq.; and
1012	related federal regulations. As used in this section, the term
1013	"relative" of any natural person means any of the following
1014	persons, whether by the full or half blood or by adoption:
1015	(a)  Such person's spouse, father, mother, children,
1016	brothers, and sisters.
1017	(b)  The father, mother, brothers, and sisters of such
1018	person's spouse.
1019	(c)  The spouses of children, brothers, or sisters of such
1020	person.
1021	Section 13.  Section 494.0025, Florida Statutes, is amended
1022	to read:
1023	494.0025  Prohibited practices.--It is unlawful for any
1024	person:
1025	(1)  To act as a mortgage lender in this state without a
1026	current, active license issued by the office pursuant to ss.
1027	494.006-494.0077.
1028	(1)(2)  To act as a loan originator correspondent mortgage
1029	lender in this state without a current, active license issued by
1030	the office pursuant to part II of this chapter ss. 494.006-
1031	494.0077.
1032	(2)(3)  To act as a mortgage broker in this state without a
1033	current, active license issued by the office pursuant to part II
1034	of this chapter ss. 494.003-494.0043.
1035	(3)  To act as a mortgage lender in this state without a
1036	current, active license issued by the office pursuant to part
1037	III of this chapter.
1038	(4)  In any practice or transaction or course of business
1039	relating to the sale, purchase, negotiation, promotion,
1040	advertisement, or hypothecation of mortgage loan transactions,
1041	directly or indirectly:
1042	(a)  To knowingly or willingly employ any device, scheme,
1043	or artifice to defraud;
1044	(b)  To engage in any transaction, practice, or course of
1045	business which operates as a fraud upon any person in connection
1046	with the purchase or sale of any mortgage loan; or
1047	(c)  To obtain property by fraud, willful misrepresentation
1048	of a future act, or false promise.
1049	(5)  In any matter within the jurisdiction of the office,
1050	to knowingly and willfully falsify, conceal, or cover up by a
1051	trick, scheme, or device a material fact, make any false or
1052	fraudulent statement or representation, or make or use any false
1053	writing or document, knowing the same to contain any false or
1054	fraudulent statement or entry.
1055	(6)  To violate s. 655.922(2), subject to ss. 494.001-
1056	494.0077.
1057	(7)  Who is required to be licensed under ss. 494.006-
1058	494.0077, to fail to report to the office the failure to meet
1059	the net worth requirements of s. 494.0061, s. 494.0062, or s.
1060	494.0065 within 48 hours after the person's knowledge of such
1061	failure or within 48 hours after the person should have known of
1062	such failure.
1063	(7)(8)  To pay a fee or commission in any mortgage loan
1064	transaction to any person or entity other than a licensed
1065	mortgage broker brokerage business, mortgage lender, or
1066	correspondent mortgage lender, operating under an active
1067	license, or a person exempt from licensure under this chapter.
1068	(8)(9)  To record a mortgage broker brokerage agreement or
1069	any other document, not rendered by a court of competent
1070	jurisdiction, which purports to enforce the terms of the
1071	mortgage brokerage agreement.
1072	(9)(10)  To use the name or logo of a financial
1073	institution, as defined in s. 655.005(1), or its affiliates or
1074	subsidiaries when marketing or soliciting existing or
1075	prospective customers if such marketing materials are used
1076	without the written consent of the financial institution and in
1077	a manner that would lead a reasonable person to believe that the
1078	material or solicitation originated from, was endorsed by, or is
1079	related to or the responsibility of the financial institution or
1080	its affiliates or subsidiaries.
1081	(10)  Subject to investigation or examination under this
1082	chapter, to knowingly alter, withhold, conceal, or destroy any
1083	books, records, computer records, or other information relating
1084	to a person's activities which subject the person to the
1085	jurisdiction of this chapter.
1086	Section 14.  Section 494.00255, Florida Statutes, is
1087	created to read:
1088	494.00255  Administrative penalties and fines; license
1089	violations.--
1090	(1)  Each of the following acts constitutes a ground for
1091	which the disciplinary actions specified in subsection (2) may
1092	be taken against a person licensed or required to be licensed
1093	under part II or part III of this chapter:
1094	(a)  Failure to immediately place upon receipt, and
1095	maintain until authorized to disburse, any money entrusted to
1096	the licensee as a licensee in a segregated account of a
1097	federally insured financial institution in this state.
1098	(b)  Failure to account or deliver to any person any
1099	property that is not the licensee's, or that the licensee is not
1100	entitled to retain, under the circumstances and at the time that
1101	has been agreed upon or as required by law or, in the absence of
1102	a fixed time, upon demand of the person entitled to such
1103	accounting and delivery.
1104	(c)  Failure to disburse funds in accordance with
1105	agreements.
1106	(d)  Any misuse, misapplication, or misappropriation of
1107	personal property entrusted to the licensee's care to which the
1108	licensee had no current property right at the time of
1109	entrustment.
1110	(e)  Fraud, misrepresentation, deceit, negligence, or
1111	incompetence in any mortgage financing transaction.
1112	(f)  Requesting a specific valuation, orally or in writing,
1113	from an appraiser for a particular property, implying to an
1114	appraiser that a specific valuation is needed for a particular
1115	property, or in any manner conditioning the order for an
1116	appraisal on the appraisal meeting a specific valuation. The
1117	numeric value of the specific valuation sought need not be
1118	stated, but rather the mere statement that a specific valuation
1119	is sought violates this section.
1120	(g)  Consistently and materially underestimating maximum
1121	closing costs.
1122	(h)  Disbursement, or an act which has caused or will cause
1123	disbursement, to any person in any amount from the Mortgage
1124	Guaranty Trust Fund, the Securities Guaranty Fund, or the
1125	Florida Real Estate Recovery Fund, regardless of any repayment
1126	or restitution to the disbursed fund by the licensee or any
1127	person acting on behalf of the licensee.
1128	(i)  Commission of fraud, misrepresentation, concealment,
1129	or dishonest dealing by trick, scheme, or device; culpable
1130	negligence; breach of trust in any business transaction in any
1131	state, nation, or territory; or aiding, assisting, or conspiring
1132	with any other person engaged in any such misconduct and in
1133	furtherance thereof.
1134	(j)  Being convicted of, or entering a plea of guilty or
1135	nolo contendere to, regardless of adjudication, any felony or
1136	any crime involving fraud, dishonesty, breach of trust, money
1137	laundering, or act of moral turpitude.
1138	(k)  Having a final judgment entered against the licensee
1139	in a civil action upon grounds of fraud, embezzlement,
1140	misrepresentation, or deceit.
1141	(l)  Having been the subject of any:
1142	1.  Decision, finding, injunction, suspension, prohibition,
1143	revocation, denial, judgment, or administrative order by any
1144	court, administrative law judge, state or federal agency,
1145	national securities exchange, national commodities exchange,
1146	national option exchange, national securities association,
1147	national commodities association, or national option association
1148	involving a violation of any federal or state securities or
1149	commodities law or rule or regulation adopted under such law or
1150	involving a violation of any rule or regulation of any national
1151	securities, commodities, or options exchange or association.
1152	2.  Injunction or adverse administrative order by a state
1153	or federal agency regulating banking, insurance, finance or
1154	small loan companies, real estate, mortgage brokers or lenders,
1155	money transmitters, or other related or similar industries.
1156	(m)  In any mortgage transaction, violating any provision
1157	of the federal Real Estate Settlement Procedure Act, as amended,
1158	12 U.S.C. ss. 2601 et seq.; the federal Truth in Lending Act, as
1159	amended, 15 U.S.C. ss. 1601 et seq.; or any regulations adopted
1160	under such acts.
1161	(n)  Having a loan originator, mortgage broker, or mortgage
1162	lender license, or the equivalent of such license, revoked in
1163	any jurisdiction.
1164	(o)  Having a license, or the equivalent of a license, to
1165	practice any profession or occupation revoked, suspended, or
1166	otherwise acted against, including the denial of licensure by a
1167	licensing authority of this state or another state, territory,
1168	or country.
1169	(p)  Acting as a loan originator, mortgage broker, or
1170	mortgage lender without a current license issued under part II
1171	or part III of this chapter.
1172	(q)  Operating a mortgage broker or mortgage lender branch
1173	office without a current license issued under part II or part
1174	III of this chapter.
1175	(r)  Conducting any mortgage brokering or mortgage lending
1176	activities in the absence of a properly designated principal
1177	loan originator or mortgage brokering or mortgage lending
1178	activities at any particular branch office without a properly
1179	designated branch manager.
1180	(s)  A material misstatement or omission of fact on an
1181	initial or renewal license application.
1182	(t)  Payment to the office for a license or permit with a
1183	check or electronic transmission of funds which is dishonored by
1184	the applicant's or licensee's financial institution.
1185	(u)  Failure to comply with, or violations of, any
1186	provision of ss. 494.001-494.0077, or any rule or order made or
1187	issued under ss. 494.001-494.0077.
1188	(v)  Failure to maintain, preserve, and keep available for
1189	examination all books, accounts, or other documents required by
1190	ss. 494.001-494.0077 and the rules of the commission.
1191	(w)  Refusal to permit an investigation or examination of
1192	books and records or refusal to comply with an office subpoena
1193	or subpoena duces tecum.
1194	(x)  Failure to timely pay any fee, charge, or fine imposed
1195	or assessed pursuant to ss. 494.001-494.0077 or related rules.
1196	(2)  If the office finds a person in violation of any act
1197	specified in this section, it may enter an order imposing one or
1198	more of the following penalties:
1199	(a)  Issuance of a reprimand.
1200	(b)  Suspension of a license, subject to reinstatement upon
1201	satisfying all reasonable conditions imposed by the office.
1202	(c)  Revocation of a license.
1203	(d)  Denial of a license.
1204	(e)  Imposition of a fine in an amount up to $25,000 for
1205	each count or separate offense.
1206	(f)  An administrative fine of up to $1,000 per day, but
1207	not to exceed $25,000 cumulatively, for each day that:
1208	1.  A mortgage broker or mortgage lender conducts business
1209	at an unlicensed branch office.
1210	2.  An unlicensed person acts as a loan originator, a
1211	mortgage broker, or a mortgage lender.
1212	(3)  A mortgage broker or mortgage lender, as applicable,
1213	is subject to the disciplinary actions specified in subsection
1214	(2) for a violation of subsection (1) by:
1215	(a)  A control person of the mortgage broker or mortgage
1216	lender; or
1217	(b)  A loan originator employed by or contracting with the
1218	mortgage broker.
1219	(4)  A principal loan originator of a mortgage broker is
1220	subject to the disciplinary actions specified in subsection (2)
1221	for violations of subsection (1) by a loan originator in the
1222	course of an association with the mortgage broker if there is a
1223	pattern of repeated violations by the loan originator or if the
1224	principal loan originator has knowledge of the violations.
1225	(5)  A principal loan originator of a mortgage lender is
1226	subject to the disciplinary actions specified in subsection (2)
1227	for violations of subsection (1) by an associate of a mortgage
1228	lender if there is a pattern of repeated violations by the
1229	associate or if the principal loan originator has knowledge of
1230	the violations.
1231	(6)  A branch manager is subject to the disciplinary
1232	actions specified in subsection (2) for violations of subsection
1233	(1) by a loan originator in the course of an association with
1234	the mortgage broker or mortgage lender if there is a pattern of
1235	repeated violations by the loan originator or if the branch
1236	manager has knowledge of the violations.
1237	(7)  An individual who is associated with a mortgage broker
1238	is subject to the disciplinary actions specified in subsection
1239	(2) for a violation of subsection (1) with respect to an action
1240	in which such person was involved.
1241	(8)  Pursuant to s. 120.60(6), the office may summarily
1242	suspend the license of a loan originator, mortgage broker, or
1243	mortgage lender if the office has reason to believe that a
1244	licensee poses an immediate, serious danger to the public's
1245	health, safety, or welfare. The arrest of the licensee, or the
1246	mortgage broker or the mortgage lender's control person, for any
1247	felony or any crime involving fraud, dishonesty, breach of
1248	trust, money laundering, or any other act of moral turpitude is
1249	deemed sufficient to constitute an immediate danger to the
1250	public's health, safety, or welfare. Any proceeding for the
1251	summary suspension of a license must be conducted by the
1252	commissioner of the office, or his or her designee, who shall
1253	issue the final summary order.
1254	(9)  The office may deny any request to terminate or
1255	withdraw any license application or license if the office
1256	believes that an act that would be a ground for license denial,
1257	suspension, restriction, or revocation under this chapter has
1258	been committed.
1259	Section 15.  Section 494.0026, Florida Statutes, is amended
1260	to read:
1261	494.0026  Disposition of insurance proceeds.--The following
1262	provisions apply to mortgage loans held by a mortgagee or
1263	assignee that is subject to parts II and III ss. 494.003-
1264	494.0077.
1265	(1)  The mortgagee or assignee must promptly endorse a
1266	check, draft, or other negotiable instrument payable jointly to
1267	the mortgagee or assignee and the insured by the insurance
1268	company. However, the mortgagee or assignee is not required to
1269	endorse such instrument if the insured or a payee who is not
1270	subject to parts II and III ss. 494.003-494.0077 refuses to
1271	endorse the instrument.
1272	(2)  Insurance proceeds received by a mortgagee or assignee
1273	that relate to compensation for damage to property or contents
1274	insurance coverage in which the mortgagee or assignee has a
1275	security interest must be promptly deposited by the mortgagee or
1276	assignee into a segregated account of a federally insured
1277	financial institution.
1278	(3)  Insurance proceeds received by a mortgagee or assignee
1279	that relate to contents insurance coverage in which the
1280	mortgagee or assignee does not have a security interest in the
1281	contents must be promptly distributed to the insured by the
1282	mortgagee or assignee.
1283	(4)  Insurance proceeds received by a mortgagee or assignee
1284	that relate to additional living expenses must be promptly
1285	distributed to the insured by the mortgagee or assignee.
1286	(5)  The mortgagee or assignee is not required to remit the
1287	portion of the proceeds relating to additional living expenses
1288	and contents insurance if the mortgagee or assignee is not able
1289	to determine which part of the proceeds relates to additional
1290	living expenses and contents insurance.
1291
1292	Nothing in this section shall be construed to prevent an
1293	insurance company from paying the insured directly for
1294	additional living expenses or paying the insured directly for
1295	contents insurance coverage if the mortgagee or assignee does
1296	not have a security interest in the contents.
1297	Section 16.  Section 494.0028, Florida Statutes, is amended
1298	to read:
1299	494.0028  Arbitration.--
1300	(1)  This section applies to any mortgage broker brokerage
1301	agreement, servicing agreement, loan application, or purchase
1302	agreement that which provides for arbitration between:
1303	(a)  A noninstitutional investor and a mortgage lender
1304	servicing or correspondent mortgage lender to service a mortgage
1305	loan.
1306	(b)  A borrower and a mortgage broker brokerage business,
1307	mortgage lender, or correspondent mortgage lender to obtain a
1308	mortgage loan.
1309	(c)  A noninstitutional investor and a mortgage broker
1310	brokerage business, mortgage lender, or correspondent mortgage
1311	lender to fund or purchase a mortgage loan.
1312	(2)  All agreements subject to this section must shall
1313	provide that, at the voluntary election of the noninstitutional
1314	investor or borrower, disputes shall be handled by either a
1315	court of competent jurisdiction or by binding arbitration.
1316	(3)  All agreements subject to this section must shall
1317	provide the noninstitutional investor or borrower with the
1318	option to elect arbitration before the American Arbitration
1319	Association or other independent nonindustry arbitration forum.
1320	Any other nonindustry arbitration forum may apply to the office
1321	to allow such forum to provide arbitration services. The office
1322	shall grant the application if the applicant's fees, practices,
1323	and procedures do not materially differ from those of the
1324	American Arbitration Association.
1325	(4)  At the election of the noninstitutional investor or
1326	borrower, venue shall be in the county in which the
1327	noninstitutional investor or borrower entered into the agreement
1328	or at a business location of the mortgage broker or brokerage
1329	business, mortgage lender, or correspondent lender.
1330	(5)  Any fees or charges must be in accordance with shall
1331	be made as provided in the rules of the American Arbitration
1332	Association or other approved nonindustry arbitration forum and
1333	may shall not be set in the agreement.
1334	(6)  Any election made under this section is shall be
1335	irrevocable.
1336	(7)  This section does shall not be construed to require an
1337	agreement that which is subject to this section to contain an
1338	arbitration clause.
1339	Section 17.  Sections 494.0029 and 494.00295, Florida
1340	Statutes, are repealed.
1341	Section 18.  Effective January 1, 2010, section 494.00296,
1342	Florida Statutes, is created to read:
1343	494.00296  Loan modification.--
1344	(1)  PROHIBITED ACTS.--When offering or providing loan
1345	modification services, a mortgage broker, mortgage brokerage
1346	business, mortgage lender, or correspondent mortgage lender
1347	licensed, or required to be licensed, under ss. 494.001-494.0077
1348	may not:
1349	(a)  Engage in or initiate loan modification services
1350	without first executing a written agreement for loan
1351	modification services with the borrower;
1352	(b)  Execute a loan modification without the consent of the
1353	borrower after the borrower is made aware of each modified term;
1354	or
1355	(c)  Solicit, charge, receive, or attempt to collect or
1356	secure payment, directly or indirectly, for loan modification
1357	services before completing or performing all services included
1358	in the agreement for loan modification services. A fee may be
1359	charged only if the loan modification results in a material
1360	benefit to the borrower. The commission may adopt rules to
1361	provide guidance on what constitutes a material benefit to the
1362	borrower.
1363	(2)  LOAN MODIFICATION AGREEMENT.--
1364	(a)  The written agreement for loan modification services
1365	must be printed in at least 12-point uppercase type and signed
1366	by both parties. The agreement must include the name and address
1367	of the person providing loan modification services, the exact
1368	nature and specific detail of each service to be provided, the
1369	total amount and terms of charges to be paid by the borrower for
1370	the services, and the date of the agreement. The date of the
1371	agreement may not be earlier than the date the borrower signed
1372	the agreement. The mortgage brokerage business, mortgage lender,
1373	or correspondent mortgage lender must give the borrower a copy
1374	of the agreement to review at least 1 business day before the
1375	borrower is to sign the agreement.
1376	(b)  The borrower has the right to cancel the written
1377	agreement without any penalty or obligation if the borrower
1378	cancels the agreement within 3 business days after signing the
1379	agreement. The right to cancel may not be waived by the borrower
1380	or limited in any manner by the mortgage broker, mortgage
1381	brokerage business, mortgage lender, or correspondent mortgage
1382	lender. If the borrower cancels the agreement, any payments made
1383	must be returned to the borrower within 10 business days after
1384	receipt of the notice of cancellation.
1385	(c)  An agreement for loan modification services must
1386	contain, immediately above the signature line, a statement in at
1387	least 12-point uppercase type which substantially complies with
1388	the following:
1389	BORROWER'S RIGHT OF CANCELLATION
1390
1391	YOU MAY CANCEL THIS AGREEMENT FOR LOAN MODIFICATION
1392	SERVICES WITHOUT ANY PENALTY OR OBLIGATION WITHIN 3 BUSINESS
1393	DAYS AFTER THE DATE THIS AGREEMENT IS SIGNED BY YOU.
1394	THE MORTGAGE BROKER, MORTGAGE BROKERAGE BUSINESS, MORTGAGE
1395	LENDER, OR CORRESPONDENT MORTGAGE LENDER IS PROHIBITED BY LAW
1396	FROM ACCEPTING ANY MONEY, PROPERTY, OR OTHER FORM OF PAYMENT
1397	FROM YOU UNTIL ALL PROMISED SERVICES HAVE BEEN COMPLETED. IF FOR
1398	ANY REASON YOU HAVE PAID THE CONSULTANT BEFORE CANCELLATION,
1399	YOUR PAYMENT MUST BE RETURNED TO YOU WITHIN 10 BUSINESS DAYS
1400	AFTER THE CONSULTANT RECEIVES YOUR CANCELLATION NOTICE.
1401	TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A
1402	STATEMENT THAT YOU ARE CANCELING THE AGREEMENT SHOULD BE MAILED
1403	(POSTMARKED) OR DELIVERED TO ...(NAME)... AT ...(ADDRESS)... NO
1404	LATER THAN MIDNIGHT OF ...(DATE)....
1405	IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR MORTGAGE
1406	LENDER OR MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT. YOUR
1407	LENDER OR SERVICER MAY BE WILLING TO NEGOTIATE A PAYMENT PLAN OR
1408	A RESTRUCTURING WITH YOU FREE OF CHARGE.
1409
1410	(d)  The inclusion of the statement does not prohibit a
1411	mortgage broker, mortgage brokerage business, mortgage lender,
1412	or correspondent mortgage lender from giving the homeowner more
1413	time to cancel the agreement than is set forth in the statement
1414	if all other requirements of this subsection are met.
1415	(e)  The person offering or providing the loan modification
1416	services must give the borrower a copy of the signed agreement
1417	within 3 hours after the borrower signs the agreement.
1418	(3)  REMEDIES.--
1419	(a)  Without regard to any other remedy or relief to which
1420	a person is entitled, anyone aggrieved by a violation of this
1421	section may bring an action to obtain a declaratory judgment
1422	that an act or practice violates this section and to enjoin a
1423	person who has violated, is violating, or is otherwise likely to
1424	violate this section.
1425	(b)  In any action brought by a person who has suffered a
1426	loss as a result of a violation of this section, such person may
1427	recover actual damages, plus attorney's fees and court costs, as
1428	follows:
1429	1.  In any action brought under this section, upon motion
1430	of the party against whom such action is filed alleging that the
1431	action is frivolous, without legal or factual merit, or brought
1432	for the purpose of harassment, the court may, after hearing
1433	evidence as to the necessity therefor, require the party
1434	instituting the action to post a bond in the amount that the
1435	court finds reasonable to indemnify the defendant for any
1436	damages incurred, including reasonable attorney's fees.
1437	2.  In any civil litigation resulting from an act or
1438	practice involving a violation of this section, the prevailing
1439	party, after judgment in the trial court and exhaustion of all
1440	appeals, if any, may receive reasonable attorney's fees and
1441	costs from the nonprevailing party.
1442	3.  The attorney for the prevailing party shall submit a
1443	sworn affidavit of time spent on the case and costs incurred for
1444	all the motions, hearings, and appeals to the trial judge who
1445	presided over the civil case.
1446	4.  The trial judge may award the prevailing party the sum
1447	of reasonable costs incurred in the action plus a reasonable
1448	legal fee for the hours actually spent on the case as sworn to
1449	in an affidavit.
1450	5.  Any award of attorney's fees or costs becomes part of
1451	the judgment and is subject to execution as the law allows.
1452	(c)  The provisions of this subsection do not apply to any
1453	action initiated by the enforcing authority.
1454	(4)  DEFINITIONS.--Notwithstanding s. 494.001, as used in
1455	this section, the term:
1456	(a)  "Borrower" means a person who is obligated to repay a
1457	mortgage loan and includes, but is not limited to, a coborrower,
1458	cosignor, or guarantor.
1459	(b)  "Loan modification" means a modification to an
1460	existing loan. The term does not include a refinancing
1461	transaction.
1462	(c)  "Mortgage broker" means a person who, for compensation
1463	or gain, directly or indirectly, accepts or offers to accept an
1464	application for a mortgage loan, solicits or offers to solicit a
1465	mortgage loan on behalf of a borrower, negotiates or offers to
1466	negotiate the terms or conditions of a new or existing mortgage
1467	loan on behalf of a borrower or lender, or negotiates or offers
1468	to negotiate the sale of an existing mortgage loan to a
1469	noninstitutional investor. An employee whose activities are
1470	ministerial and clerical, which may include quoting available
1471	interest rates or loan terms and conditions, is not acting as a
1472	mortgage broker.
1473	Section 19.  Subsections (1), (2), and (4) of section
1474	494.00296, Florida Statutes, as created by this act, are amended
1475	to read:
1476	494.00296  Loan modification.--
1477	(1)  PROHIBITED ACTS.--When offering or providing loan
1478	modification services, a loan originator, mortgage broker,
1479	mortgage brokerage business, mortgage lender, or correspondent
1480	mortgage lender licensed, or required to be licensed, under ss.
1481	494.001-494.0077 may not:
1482	(a)  Engage in or initiate loan modification services
1483	without first executing a written agreement for loan
1484	modification services with the borrower;
1485	(b)  Execute a loan modification without the consent of the
1486	borrower after the borrower is made aware of each modified term;
1487	or
1488	(c)  Solicit, charge, receive, or attempt to collect or
1489	secure payment, directly or indirectly, for loan modification
1490	services before completing or performing all services included
1491	in the agreement for loan modification services. A fee may be
1492	charged only if the loan modification results in a material
1493	benefit to the borrower. The commission may adopt rules to
1494	provide guidance on what constitutes a material benefit to the
1495	borrower.
1496	(2)  LOAN MODIFICATION AGREEMENT.--
1497	(a)  The written agreement for loan modification services
1498	must be printed in at least 12-point uppercase type and signed
1499	by both parties. The agreement must include the name and address
1500	of the person providing loan modification services, the exact
1501	nature and specific detail of each service to be provided, the
1502	total amount and terms of charges to be paid by the borrower for
1503	the services, and the date of the agreement. The date of the
1504	agreement may not be earlier than the date the borrower signed
1505	the agreement. The mortgage broker brokerage business, mortgage
1506	lender, or correspondent mortgage lender must give the borrower
1507	a copy of the agreement to review at least 1 business day before
1508	the borrower is to sign the agreement.
1509	(b)  The borrower has the right to cancel the written
1510	agreement without any penalty or obligation if the borrower
1511	cancels the agreement within 3 business days after signing the
1512	agreement. The right to cancel may not be waived by the borrower
1513	or limited in any manner by the loan originator, mortgage
1514	broker, mortgage brokerage business, mortgage lender, or
1515	correspondent mortgage lender. If the borrower cancels the
1516	agreement, any payments made must be returned to the borrower
1517	within 10 business days after receipt of the notice of
1518	cancellation.
1519	(c)  An agreement for loan modification services must
1520	contain, immediately above the signature line, a statement in at
1521	least 12-point uppercase type which substantially complies with
1522	the following:
1523	BORROWER'S RIGHT OF CANCELLATION
1524
1525	YOU MAY CANCEL THIS AGREEMENT FOR LOAN MODIFICATION
1526	SERVICES WITHOUT ANY PENALTY OR OBLIGATION WITHIN 3 BUSINESS
1527	DAYS AFTER THE DATE THIS AGREEMENT IS SIGNED BY YOU.
1528	THE LOAN ORIGINATOR, MORTGAGE BROKER, MORTGAGE BROKERAGE
1529	BUSINESS, MORTGAGE LENDER, OR CORRESPONDENT MORTGAGE LENDER IS
1530	PROHIBITED BY LAW FROM ACCEPTING ANY MONEY, PROPERTY, OR OTHER
1531	FORM OF PAYMENT FROM YOU UNTIL ALL PROMISED SERVICES HAVE BEEN
1532	COMPLETED. IF FOR ANY REASON YOU HAVE PAID THE CONSULTANT BEFORE
1533	CANCELLATION, YOUR PAYMENT MUST BE RETURNED TO YOU WITHIN 10
1534	BUSINESS DAYS AFTER THE CONSULTANT RECEIVES YOUR CANCELLATION
1535	NOTICE.
1536	TO CANCEL THIS AGREEMENT, A SIGNED AND DATED COPY OF A
1537	STATEMENT THAT YOU ARE CANCELING THE AGREEMENT SHOULD BE MAILED
1538	(POSTMARKED) OR DELIVERED TO ...(NAME)... AT ...(ADDRESS)... NO
1539	LATER THAN MIDNIGHT OF ...(DATE)....
1540	IMPORTANT: IT IS RECOMMENDED THAT YOU CONTACT YOUR MORTGAGE
1541	LENDER OR MORTGAGE SERVICER BEFORE SIGNING THIS AGREEMENT. YOUR
1542	LENDER OR SERVICER MAY BE WILLING TO NEGOTIATE A PAYMENT PLAN OR
1543	A RESTRUCTURING WITH YOU FREE OF CHARGE.
1544
1545	(d)  The inclusion of the statement does not prohibit a
1546	loan originator, mortgage broker, mortgage brokerage business,
1547	mortgage lender, or correspondent mortgage lender from giving
1548	the homeowner more time to cancel the agreement than is set
1549	forth in the statement if all other requirements of this
1550	subsection are met.
1551	(e)  The person offering or providing the loan modification
1552	services must give the borrower a copy of the signed agreement
1553	within 3 hours after the borrower signs the agreement.
1554	(4)  DEFINITIONS.--Notwithstanding s. 494.001, as used in
1555	this section, the term:
1556	(a)  "Borrower" means a person obligated to repay a
1557	mortgage loan and includes, but is not limited to, a coborrower,
1558	cosignor, or guarantor.
1559	(b)  "Loan modification" means a modification to an
1560	existing loan. The term does not include a refinancing
1561	transaction.
1562	(c)  "Mortgage broker" means a person who, for compensation
1563	or gain, directly or indirectly, accepts or offers to accept an
1564	application for a mortgage loan, solicits or offers to solicit a
1565	mortgage loan on behalf of a borrower, negotiates or offers to
1566	negotiate the terms or conditions of a new or existing mortgage
1567	loan on behalf of a borrower or lender, or negotiates or offers
1568	to negotiate the sale of an existing mortgage loan to a
1569	noninstitutional investor. An employee whose activities are
1570	ministerial and clerical, which may include quoting available
1571	interest rates or loan terms and conditions, is not acting as a
1572	mortgage broker.
1573	Section 20.  The Division of Statutory Revision is
1574	requested to rename part II of chapter 494, Florida Statutes,
1575	consisting of ss. 494.00312-491.0043, Florida Statutes, as "Loan
1576	Originators and Mortgage Brokers."
1577	Section 21.  Sections 494.003 and 494.0031, Florida
1578	Statutes, are repealed.
1579	Section 22.  Section 494.00312, Florida Statutes, is
1580	created to read:
1581	494.00312  Loan originator license.--
1582	(1)  An individual who acts as a loan originator must be
1583	licensed under this section.
1584	(2)  In order to apply for loan originator license, an
1585	applicant must:
1586	(a)  Be at least 18 years of age and have a high school
1587	diploma or its equivalent.
1588	(b)  Complete a 20-hour prelicensing class approved by the
1589	registry.
1590	(c)  Pass a written test developed by the registry and
1591	administered by a provider approved by the registry.
1592	(d)  Submit a completed license application form as
1593	prescribed by commission rule.
1594	(e)  Submit a nonrefundable application fee of $195, and
1595	the $20 nonrefundable fee if required by s. 494.00172.
1596	Application fees may not be prorated for partial years of
1597	licensure.
1598	(f)  Submit fingerprints in accordance with rules adopted
1599	by the commission.
1600	1.  The fingerprints may be submitted to the registry, the
1601	office, or a vendor acting on behalf of the registry or the
1602	office.
1603	2.  The office may contract with a third-party vendor to
1604	provide live-scan fingerprinting in lieu of a paper fingerprint
1605	card.
1606	3.  A state criminal history background check must be
1607	conducted through the Department of Law Enforcement, and a
1608	federal criminal history background check must be conducted
1609	through the Federal Bureau of Investigation.
1610	4.  All fingerprints submitted to the Department of Law
1611	Enforcement must be submitted electronically and entered into
1612	the statewide automated fingerprint identification system
1613	established in s. 943.05(2)(b) and available for use in
1614	accordance with s. 943.05(2)(g) and (h). The office shall pay an
1615	annual fee to the Department or Law Enforcement to participate
1616	in the system and inform the Department of Law Enforcement of
1617	any person whose fingerprints are no longer required to be
1618	retained.
1619	5.  The costs of fingerprint processing, including the cost
1620	of retaining the fingerprints, shall be borne by the person
1621	subject to the background check.
1622	6.  The office is responsible for reviewing the results of
1623	the state and federal criminal history checks and determining
1624	whether the applicant meets licensure requirements.
1625	(g)  Authorize the registry to obtain an independent credit
1626	report on the applicant from a consumer reporting agency, and
1627	transmit or provide access to the report to the office. The cost
1628	of the credit report shall be borne by the applicant.
1629	(h)  Submit additional information or documentation
1630	requested by the office and required by rule concerning the
1631	applicant. Additional information may include documentation of
1632	pending and prior disciplinary and criminal history events,
1633	including arrest reports and certified copies of charging
1634	documents, plea agreements, judgments and sentencing documents,
1635	documents relating to pretrial intervention, orders terminating
1636	probation or supervised release, final administrative agency
1637	orders, or other comparable documents that may provide the
1638	office with the appropriate information to determine eligibility
1639	for licensure.
1640	(i)  Submit any other information required by the registry
1641	for the processing of the application.
1642	(3)  An application is considered received for the purposes
1643	of s. 120.60 upon the office's receipt of all documentation from
1644	the registry, including the completed application form,
1645	documentation of completion of the prelicensure class, test
1646	results, criminal history information, and independent credit
1647	report, as well as the license application fee, the fee required
1648	by s. 494.00172, and all applicable fingerprinting processing
1649	fees.
1650	(4)  The office shall issue a loan originator license to
1651	each person who is not otherwise ineligible and who meets the
1652	requirements of this section. However, it is a ground for denial
1653	of licensure if the applicant:
1654	(a)  Has committed any violation specified in ss. 494.001-
1655	494.0077, or is the subject of a pending felony criminal
1656	prosecution or a prosecution or an administrative enforcement
1657	action, in any jurisdiction, which involves fraud, dishonesty,
1658	breach of trust, money laundering, or any other act of moral
1659	turpitude.
1660	(b)  Has failed to demonstrate the character, general
1661	fitness, and financial responsibility necessary to command the
1662	confidence of the community and warrant a determination that the
1663	applicant will operate honestly, fairly, and efficiently.
1664	1.  If the office has information that could form the basis
1665	for license denial under this paragraph, before denying the
1666	license, the office must notify the applicant in writing of the
1667	specific items of concern and provide the applicant with an
1668	opportunity to explain the circumstances surrounding the
1669	specific items and provide any information that the applicant
1670	believes is relevant to the office's determination.
1671	2.  For purposes of evaluating adverse information found in
1672	an applicant's credit report, the information must be considered
1673	within the totality of the circumstances. Information provided
1674	by the applicant under subparagraph 1., or information obtained
1675	by the office by other means, may be used to provide a context
1676	for the adverse items. For example, the adverse items may have
1677	resulted from factors that do not necessarily reflect negatively
1678	upon the applicant's character, general fitness, or financial
1679	responsibility.
1680	3.  The office may not use a credit score or the absence or
1681	insufficiency of credit history information to determine
1682	character, general fitness, or financial responsibility.
1683	4.  If information contained in a credit report is used as
1684	the basis for denying a license, the office shall, in accordance
1685	with s. 120.60(3), provide with particularity the grounds or
1686	basis for denial. The use of the terms "poor credit history" or
1687	"poor credit rating" or similar language does not meet the
1688	requirements of this paragraph.
1689	(5)  The office may not issue a license to an applicant who
1690	has had a loan originator license or its equivalent revoked in
1691	any jurisdiction.
1692	(6)  A loan originator license shall be annulled pursuant
1693	to s. 120.60 if it was issued by the office by mistake. A
1694	license must be reinstated if the applicant demonstrates that
1695	the requirements for obtaining the license under this chapter
1696	have been satisfied.
1697	(7)  All loan originator licenses must be renewed annually
1698	by December 31 pursuant to s. 494.00313. If a person holding an
1699	active loan originator license has not applied to renew the
1700	license annually on or before December 31, the loan originator
1701	license expires on December 31. If a person holding an active
1702	loan originator license has applied to renew the license on or
1703	before December 31, the loan originator license remains active
1704	until the renewal application is approved or denied. A loan
1705	originator is not precluded from reapplying for licensure upon
1706	expiration of a previous license.
1707	Section 23.  Section 494.00313, Florida Statutes, is
1708	created to read:
1709	494.00313  Loan originator license renewal.--
1710	(1)  In order to renew a loan originator license, a loan
1711	originator must:
1712	(a)  Submit a completed license renewal form as prescribed
1713	by commission rule.
1714	(b)  Submit a nonrefundable renewal fee of $150, the $20
1715	nonrefundable fee if required by s. 494.00172, and nonrefundable
1716	fees to cover the cost of further fingerprint processing and
1717	retention as set forth in commission rule.
1718	(c)  Provide documentation of completion of at least 8
1719	hours of continuing education in courses reviewed and approved
1720	by the registry.
1721	(d)  Authorize the registry to obtain an independent credit
1722	report on the licensee from a consumer reporting agency, and
1723	transmit or provide access to the report to the office. The cost
1724	of the credit report shall be borne by the licensee.
1725	(e)  Submit any additional information or documentation
1726	requested by the office and required by rule concerning the
1727	licensee. Additional information may include documentation of
1728	pending and prior disciplinary and criminal history events,
1729	including arrest reports and certified copies of charging
1730	documents, plea agreements, judgments and sentencing documents,
1731	documents relating to pretrial intervention, orders terminating
1732	probation or supervised release, final administrative agency
1733	orders, or other comparable documents that may provide the
1734	office with the appropriate information to determine eligibility
1735	for renewal of licensure.
1736	(2)  The office may not renew a loan originator license
1737	unless the loan originator continues to meet the minimum
1738	standards for initial license issuance pursuant to s. 494.00312
1739	and adopted rule.
1740	Section 24.  Section 494.0032, Florida Statutes, is
1741	repealed.
1742	Section 25.  Section 494.00321, Florida Statutes, is
1743	created to read:
1744	494.00321  Mortgage broker license.--
1745	(1)  Each individual who acts as a mortgage broker must be
1746	licensed under this section.
1747	(2)  In order to apply for a mortgage broker license, an
1748	applicant must:
1749	(a)  Submit a completed license application form as
1750	prescribed by commission rule.
1751	(b)  Designate a qualified principal loan originator on the
1752	application form who meets the requirements of s. 494.0035.
1753	(c)  Submit a nonrefundable application fee of $425, and
1754	the $100 nonrefundable fee if required by s. 494.00172.
1755	Application fees may not be prorated for partial years of
1756	licensure.
1757	(d)  Submit fingerprints for each of the applicant's
1758	control persons in accordance with rules adopted by the
1759	commission.
1760	1.  The fingerprints may be submitted to the registry, the
1761	office, or a vendor acting on behalf of the registry or the
1762	office.
1763	2.  The office may contract with a third-party vendor to
1764	provide live-scan fingerprinting in lieu of a paper fingerprint
1765	card.
1766	3.  A state criminal history background check must be
1767	conducted through the Department of Law Enforcement, and a
1768	federal criminal history background check must be conducted
1769	through the Federal Bureau of Investigation.
1770	4.  All fingerprints submitted to the Department of Law
1771	Enforcement must be submitted electronically and entered into
1772	the statewide automated fingerprint identification system
1773	established in s. 943.05(2)(b) and available for use in
1774	accordance with s. 943.05(2)(g) and (h). The office shall pay an
1775	annual fee to the Department of Law Enforcement to participate
1776	in the system and inform the Department of Law Enforcement of
1777	any person whose fingerprints are no longer required to be
1778	retained.
1779	5.  The costs of fingerprint processing, including the cost
1780	of retaining the fingerprints, shall be borne by the person
1781	subject to the background check.
1782	6.  The office is responsible for reviewing the results of
1783	the state and federal criminal history checks and determining
1784	whether the applicant meets licensure requirements.
1785	(e)  Authorize the registry to obtain an independent credit
1786	report on each of the applicant's control persons from a
1787	consumer reporting agency, and transmit or provide access to the
1788	report to the office. The cost of the credit report shall be
1789	borne by the applicant.
1790	(f)  Submit additional information or documentation
1791	requested by the office and required by rule concerning the
1792	applicant or a control person of the applicant. Additional
1793	information may include documentation of pending and prior
1794	disciplinary and criminal history events, including arrest
1795	reports and certified copies of charging documents, plea
1796	agreements, judgments and sentencing documents, documents
1797	relating to pretrial intervention, orders terminating probation
1798	or supervised release, final administrative agency orders, or
1799	other comparable documents that may provide the office with the
1800	appropriate information to determine eligibility for licensure.
1801	(g)  Submit any other information required by the registry
1802	for the processing of the application.
1803	(3)  An application is considered received for the purposes
1804	of s. 120.60 upon the office's receipt of all documentation from
1805	the registry, including the completed application form, criminal
1806	history information, and independent credit reports, as well as
1807	the license application fee, the fee required by s. 494.00172,
1808	and all applicable fingerprinting processing fees.
1809	(4)  The office shall issue a mortgage broker license to
1810	each person who is not otherwise ineligible and who meets the
1811	requirements of this section. However, it is a ground for denial
1812	of licensure if the applicant or one of the applicant's control
1813	persons:
1814	(a)  Has committed any violation specified in ss. 494.001-
1815	494.0077, or is the subject of a pending felony criminal
1816	prosecution or a prosecution or an administrative enforcement
1817	action, in any jurisdiction, which involves fraud, dishonesty,
1818	breach of trust, money laundering, or any other act of moral
1819	turpitude.
1820	(b)  Has failed to demonstrate the character, general
1821	fitness, and financial responsibility necessary to command the
1822	confidence of the community and warrant a determination that the
1823	applicant will operate honestly, fairly, and efficiently.
1824	1.  If the office has information that could form the basis
1825	for license denial under this paragraph, before denying the
1826	license, the office must notify the applicant in writing of the
1827	specific items of concern and provide the applicant with an
1828	opportunity to explain the circumstances surrounding the
1829	specific items and provide any information that the applicant
1830	believes is relevant to the office's determination.
1831	2.  For purposes of evaluating adverse information found in
1832	an applicant's credit report, the information must be considered
1833	within the totality of the circumstances. Information provided
1834	by the applicant under subparagraph 1., or information obtained
1835	by the office by other means, may be used to provide a context
1836	for the adverse items. For example, the adverse items may have
1837	resulted from factors that do not necessarily reflect negatively
1838	upon the applicant's character, general fitness, or financial
1839	responsibility.
1840	3.  The office may not use a credit score or the absence or
1841	insufficiency of credit history information to determine
1842	character, general fitness, or financial responsibility.
1843	4.  If information contained in a credit report is used as
1844	the basis for denying a license, the office shall, in accordance
1845	with s. 120.60(3), provide with particularity the grounds or
1846	basis for denial. The use of the terms "poor credit history" or
1847	"poor credit rating" or similar language does not meet the
1848	requirements of this paragraph.
1849	(5)  The office may not issue a license if the applicant
1850	has had a mortgage broker license or its equivalent revoked in
1851	any jurisdiction, or if any of the applicant's control persons
1852	has had a loan originator license or its equivalent revoked in
1853	any jurisdiction.
1854	(6)  A mortgage broker license shall be annulled pursuant
1855	to s. 120.60 if it was issued by the office by mistake. A
1856	license must be reinstated if the applicant demonstrates that
1857	the requirements for obtaining the license under this chapter
1858	have been satisfied.
1859	(7)  All mortgage broker licenses must be renewed annually
1860	by December 31 pursuant to s. 494.00322. If a person holding an
1861	active mortgage broker license has not applied to renew the
1862	license annually on or before December 31, the mortgage broker
1863	license expires on December 31. If a person holding an active
1864	mortgage broker license has applied to renew the license on or
1865	before December 31, the mortgage broker license remains active
1866	until the renewal application is approved or denied. A mortgage
1867	broker is not precluded from reapplying for licensure upon
1868	expiration of a previous license.
1869	Section 26.  Section 494.00322, Florida Statutes, is
1870	created to read:
1871	494.00322  Mortgage broker license renewal.--
1872	(1)  In order to renew a mortgage broker license, a
1873	mortgage broker must:
1874	(a)  Submit a completed license renewal form as prescribed
1875	by commission rule.
1876	(b)  Submit a nonrefundable renewal fee of $375, the $100
1877	nonrefundable fee if required by s. 494.00172, and nonrefundable
1878	fees to cover the cost of further fingerprint processing and
1879	retention as set forth in commission rule.
1880	(c)  Submit fingerprints in accordance with s.
1881	494.00321(2)(d) for any new control persons who have not been
1882	screened.
1883	(d)  Authorize the registry to obtain an independent credit
1884	report on each of the licensee's control persons from a consumer
1885	reporting agency, and transmit or provide access to the report
1886	to the office. The cost of the credit report shall be borne by
1887	the licensee.
1888	(e)  Submit any additional information or documentation
1889	requested by the office and required by rule concerning the
1890	licensee or a control person of the licensee. Additional
1891	information may include documentation of pending and prior
1892	disciplinary and criminal history events, including arrest
1893	reports and certified copies of charging documents, plea
1894	agreements, judgments and sentencing documents, documents
1895	relating to pretrial intervention, orders terminating probation
1896	or supervised release, final administrative agency orders, or
1897	other comparable documents that may provide the office with the
1898	appropriate information to determine eligibility for renewal of
1899	licensure.
1900	(2)  The office may not renew a mortgage broker license
1901	unless the licensee continues to meet the minimum requirements
1902	for initial licensure pursuant to s. 494.00321 and adopted rule.
1903	Section 27.  Section 494.0033, Florida Statutes, is
1904	repealed.
1905	Section 28.  Section 494.00331, Florida Statutes, is
1906	amended to read:
1907	494.00331  Loan originator employment Mortgage broker
1908	association.--An individual may not act as a loan originator
1909	unless he or she is an employee of, or an independent contractor
1910	for, a mortgage broker or a mortgage lender and may not be
1911	employed by or contract with more than one mortgage broker or
1912	mortgage lender, or either simultaneously. No person required to
1913	be licensed as a mortgage broker under this chapter shall be
1914	simultaneously an associate of more than one licensed mortgage
1915	brokerage business, licensed mortgage lender, or licensed
1916	correspondent mortgage lender.
1917	Section 29.  Section 494.0034, Florida Statutes, is
1918	repealed.
1919	Section 30.  Section 494.0035, Florida Statutes, is amended
1920	to read:
1921	494.0035  Principal loan originator broker and branch
1922	manager for mortgage broker requirements.--
1923	(1)  Each mortgage broker brokerage business must be
1924	operated by a principal loan originator who shall have a
1925	principal broker who shall operate the business under such
1926	broker's full charge, control, and supervision of the mortgage
1927	broker business. The principal loan originator must have been
1928	licensed as a loan originator broker must have been a licensed
1929	mortgage broker pursuant to s. 494.0033 for at least 1 year
1930	before prior to being designated as the a principal loan
1931	originator broker, or must shall demonstrate to the satisfaction
1932	of the office that he or she such principal broker has been
1933	actively engaged in a mortgage broker-related mortgage-related
1934	business for at least 1 year before prior to being designated as
1935	a principal loan originator broker. Each mortgage broker must
1936	keep the office informed of the person designated as the
1937	principal loan originator as prescribed by commission rule
1938	brokerage business shall maintain a form as prescribed by the
1939	commission indicating the business's designation of principal
1940	broker and the individual's acceptance of such responsibility.
1941	If the designation is inaccurate, the business shall be deemed
1942	to be operated under form is unavailable, inaccurate, or
1943	incomplete, it is deemed that the business was operated in the
1944	full charge, control, and supervision of by each officer,
1945	director, or ultimate equitable owner of a 10-percent or greater
1946	interest in the mortgage broker brokerage business, or any other
1947	person in a similar capacity. A loan originator may not be a
1948	principal loan originator for more than one mortgage broker at
1949	any given time.
1950	(2)  Each branch office of a mortgage broker brokerage
1951	business must be operated by a have a designated branch manager
1952	broker who shall have operate the business under such broker's
1953	full charge, control, and supervision of the branch office. The
1954	designated branch manager broker must be a licensed loan
1955	originator mortgage broker pursuant to s. 494.00312 s. 494.0033.
1956	Each branch office must keep the office informed of the person
1957	designated as the branch manager as prescribed by commission
1958	rule, which includes documentation of shall maintain a form as
1959	prescribed by the commission logging the branch's designation of
1960	a branch broker and the individual's acceptance of such
1961	responsibility. If the designation is inaccurate, the branch
1962	office shall be deemed to be operated under form is unavailable,
1963	inaccurate, or incomplete, it is deemed that the branch was
1964	operated in the full charge, control, and supervision of by each
1965	officer, director, or ultimate equitable owner of a 10-percent
1966	or greater interest in the mortgage broker brokerage business,
1967	or any other person in a similar capacity.
1968	Section 31.  Section 494.0036, Florida Statutes, is amended
1969	to read:
1970	494.0036  Mortgage broker branch office license brokerage
1971	business branch offices.--
1972	(1)  Each branch office of a mortgage broker must be
1973	licensed under this section. A mortgage brokerage business
1974	branch office license is required for each branch office
1975	maintained by a mortgage brokerage business.
1976	(2)  The office shall issue a mortgage broker brokerage
1977	business branch office license to a mortgage broker brokerage
1978	business licensee after the office determines that the licensee
1979	has submitted a completed application for a branch office in a
1980	form as prescribed by commission rule and payment of an initial
1981	nonrefundable branch office license fee of $225 per branch
1982	office. Application fees may not be prorated for partial years
1983	of licensure. The branch office license shall be issued in the
1984	name of the mortgage broker brokerage business that maintains
1985	the branch office. An application is considered received for
1986	purposes of s. 120.60 upon receipt of a completed application
1987	form as prescribed by commission rule and the required fees, a
1988	nonrefundable application fee of $225, and any other fee
1989	prescribed by law.
1990	(3)  A branch office license must be renewed annually at
1991	the time of renewing the mortgage broker license under s.
1992	494.00322. A nonrefundable branch renewal fee of $225 per branch
1993	office must be submitted at the time of renewal.
1994	Section 32.  Section 494.0038, Florida Statutes, is amended
1995	to read:
1996	494.0038  Loan origination and mortgage broker fees and
1997	Mortgage broker disclosures.--
1998	(1)(a)1.  A loan origination fee may not be paid person may
1999	not receive a mortgage brokerage fee except pursuant to a
2000	written mortgage broker brokerage agreement between the mortgage
2001	broker brokerage business and the borrower which is signed and
2002	dated by the principal loan originator or branch manager the
2003	business and the borrower. The unique registry identifier of
2004	each loan originator responsible for providing loan originator
2005	services must be printed on the mortgage broker agreement.
2006	(a)2.  The written mortgage broker brokerage agreement must
2007	describe the services to be provided by the mortgage broker
2008	brokerage business and specify the amount and terms of the loan
2009	origination mortgage brokerage fee that the mortgage broker
2010	brokerage business is to receive.
2011	1.  Except for application and third-party fees, all fees
2012	received by a mortgage broker from a borrower must be identified
2013	as a loan origination fee.
2014	2.  All fees on the mortgage broker agreement must be
2015	disclosed in dollar amounts.
2016	3.  All loan origination fees must be paid to a mortgage
2017	broker.
2018	(b)  The written mortgage brokerage agreement must be
2019	executed within 3 business days after a mortgage loan
2020	application is accepted if the borrower is present when the
2021	mortgage loan application is accepted. If the borrower is not
2022	present when such an application is accepted, the licensee shall
2023	forward the written mortgage brokerage agreement to the borrower
2024	within 3 business days after the licensee's acceptance of the
2025	application and the licensee bears the burden of proving that
2026	the borrower received and approved the written mortgage
2027	brokerage agreement.
2028	(2)(b)1.  If the mortgage broker brokerage business is to
2029	receive any payment of any kind from the mortgage lender, the
2030	maximum total dollar amount of the payment must be disclosed to
2031	the borrower in the written mortgage broker brokerage agreement
2032	as described in paragraph (1)(a). The commission may prescribe
2033	by rule an acceptable form for disclosure of brokerage fees
2034	received from the lender. The mortgage brokerage agreement must
2035	state the nature of the relationship with the lender, describe
2036	how compensation is paid by the lender, and describe how the
2037	mortgage interest rate affects the compensation paid to the
2038	mortgage broker brokerage business.
2039	(a)2.  The exact amount of any payment of any kind by the
2040	lender to the mortgage broker brokerage business must be
2041	disclosed in writing to the borrower within 3 business days
2042	after the mortgage broker brokerage business is made aware of
2043	the exact amount of the payment from the lender but not less
2044	than 3 business days before the execution of the closing or
2045	settlement statement. The licensee bears the burden of proving
2046	such notification was provided to the borrower. Notification is
2047	waived if the exact amount of the payment is accurately
2048	disclosed in the written mortgage broker agreement.
2049	(b)(c)  The commission may prescribe by rule the form of
2050	disclosure of brokerage fees.
2051	(3)(2)  At the time a written mortgage broker brokerage
2052	agreement is signed executed by the borrower or forwarded to the
2053	borrower for signature execution, or at the time the mortgage
2054	broker brokerage business accepts an application fee, credit
2055	report fee, property appraisal fee, or any other third-party
2056	fee, but at least not less than 3 business days before execution
2057	of the closing or settlement statement, the mortgage broker
2058	brokerage business shall disclose in writing to any applicant
2059	for a mortgage loan the following information:
2060	(a)  That the such mortgage broker brokerage business may
2061	not make mortgage loans or commitments. The mortgage broker
2062	brokerage business may make a commitment and may furnish a lock-
2063	in of the rate and program on behalf of the lender if when the
2064	mortgage broker brokerage business has obtained a written
2065	commitment or lock-in for the loan from the lender on behalf of
2066	the borrower for the loan. The commitment must be in the same
2067	form and substance as issued by the lender.
2068	(b)  That the such mortgage broker brokerage business
2069	cannot guarantee acceptance into any particular loan program or
2070	promise any specific loan terms or conditions.
2071	(c)  A good faith estimate, signed and dated by the
2072	borrower, which discloses the total amount of each of the fees
2073	which the borrower may reasonably expect to pay if the loan is
2074	closed, including, but not limited to, fees earned by the
2075	mortgage broker brokerage business, lender fees, third-party
2076	fees, and official fees, together with the terms and conditions
2077	for obtaining a refund of such fees, if any. Any amount
2078	collected in excess of the actual cost shall be returned within
2079	60 days after rejection, withdrawal, or closing. The good faith
2080	estimate must identify the recipient of all payments charged the
2081	borrower and, except for all fees to be received by the mortgage
2082	broker brokerage business, may be disclosed in generic terms,
2083	such as, but not limited to, paid to lender, appraiser,
2084	officials, title company, or any other third-party service
2085	provider. This requirement does not supplant or is not a
2086	substitute for the written mortgage broker brokerage agreement
2087	described in subsection (1).
2088	(4)(3)  The disclosures required by this subsection must be
2089	furnished in writing at the time an adjustable rate mortgage
2090	loan is offered to the borrower and whenever the terms of the
2091	adjustable rate mortgage loan offered materially change prior to
2092	closing. The mortgage broker shall furnish the disclosures
2093	relating to adjustable rate mortgages in a format prescribed by
2094	ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
2095	of the Federal Reserve System, as amended; its commentary, as
2096	amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
2097	1601 et seq., as amended; together with the Consumer Handbook on
2098	Adjustable Rate Mortgages, as amended; published by the Federal
2099	Reserve Board and the Federal Home Loan Bank Board. The licensee
2100	bears the burden of proving such disclosures were provided to
2101	the borrower.
2102	(5)(4)  If the mortgage broker brokerage agreement includes
2103	a nonrefundable application fee, the following requirements are
2104	applicable:
2105	(a)  The amount of the application fee, which must be
2106	clearly denominated as such, must shall be clearly disclosed.
2107	(b)  The specific services that will be performed in
2108	consideration for the application fee must shall be disclosed.
2109	(c)  The application fee must be reasonably related to the
2110	services to be performed and may not be based upon a percentage
2111	of the principal amount of the loan or the amount financed.
2112	(6)(5)  A mortgage broker brokerage business may not accept
2113	any fee in connection with a mortgage loan other than an
2114	application fee, credit report fee, property appraisal fee, or
2115	other third-party fee before prior to obtaining a written
2116	commitment from a qualified lender.
2117	(7)(6)  Any third-party fee entrusted to a mortgage broker
2118	must brokerage business shall immediately, upon receipt, be
2119	placed into a segregated account with a financial institution
2120	located in the state the accounts of which are insured by the
2121	Federal Government. Such funds shall be held in trust for the
2122	payor and shall be kept in the account until disbursement. Such
2123	funds may be placed in one account if adequate accounting
2124	measures are taken to identify the source of the funds.
2125	(8)  A mortgage broker may not pay a commission to any
2126	person not licensed pursuant to this chapter.
2127	(7)  All mortgage brokerage fees shall be paid to a
2128	mortgage brokerage business licensee.
2129	(9)(8)  This section does not prohibit a mortgage broker
2130	brokerage business from offering products and services, in
2131	addition to those offered in conjunction with the loan
2132	origination process, for a fee or commission.
2133	Section 33.  Section 494.0039, Florida Statutes, is amended
2134	to read:
2135	494.0039  Principal place of business requirements.--Each
2136	mortgage broker brokerage business licensee shall maintain and
2137	transact business from a principal place of business.
2138	Section 34.  Section 494.004, Florida Statutes, is amended
2139	to read:
2140	494.004  Requirements of licensees.--
2141	(1)  Each licensee under this part ss. 494.003-494.0043
2142	shall report to the office:,
2143	(a)  In writing, any conviction of, or plea of nolo
2144	contendere to, regardless of adjudication, any felony or any
2145	crime or administrative violation that involves fraud,
2146	dishonesty, breach of trust, money laundering dishonest dealing,
2147	or any other act of moral turpitude, in any jurisdiction, by the
2148	licensee or any control natural person within named in s.
2149	494.0031(2)(d), not later than 30 days after the date of
2150	conviction, entry of a plea of nolo contendere, or final
2151	administrative action.
2152	(b)(2)  Each licensee under ss. 494.003-494.0043 shall
2153	report, In a form prescribed by rule of the commission, any
2154	conviction of, or plea of nolo contendere to, regardless of
2155	whether adjudication is withheld, any felony committed by the
2156	licensee or any control natural person within named in s.
2157	494.0031(2)(d), not later than 30 days after the date of
2158	conviction or the date the plea of nolo contendere is entered.
2159	(c)(3)  Each licensee under ss. 494.003-494.0043 shall
2160	report Any action in bankruptcy, voluntary or involuntary,
2161	within 30 to the office not later than 7 business days after the
2162	action is instituted.
2163	(d)(4)  Each licensee under ss. 494.003-494.0043 shall
2164	report On a form prescribed by rule of the commission, any
2165	change to the information contained in any initial application
2166	form or any amendment to the application within not later than
2167	30 days after the change is effective.
2168	(5)  A license issued under ss. 494.003-494.0043 is not
2169	transferable or assignable.
2170	(e)(6)  Each licensee under ss. 494.003-494.0043 shall
2171	report Any change in the principal loan originator broker, any
2172	addition or subtraction of a control person partners, officers,
2173	members, joint venturers, directors, control persons of any
2174	licensee, or any individual who is the ultimate equitable owner
2175	of a 10-percent or greater interest in the licensee, or any
2176	change in the form of business organization, by written
2177	amendment in the form and at the time the commission specifies
2178	by rule.
2179	(a)  In any case in which a person or a group of persons,
2180	directly or indirectly or acting by or through one or more
2181	persons, proposes to purchase or acquire a controlling interest
2182	in a licensee, such person or group shall submit an initial
2183	application for licensure as a mortgage brokerage business
2184	before such purchase or acquisition and at the time and in the
2185	form the commission prescribes by rule.
2186	(b)  As used in this subsection, the term "controlling
2187	interest" means possession of the power to direct or cause the
2188	direction of the management or policies of a company whether
2189	through ownership of securities, by contract, or otherwise. Any
2190	person who directly or indirectly has the right to vote 25
2191	percent or more of the voting securities of a company or is
2192	entitled to 25 percent or more of the company's profits is
2193	presumed to possess a controlling interest.
2194	(2)(c)  Any addition of a partner, officer, member, joint
2195	venturer, director, control person, or ultimate equitable owner
2196	of the applicant who does not have a controlling interest and
2197	who has not previously filed a Uniform Mortgage Biographical
2198	Statement & Consent Form, MU2, or has not previously complied
2199	with the fingerprinting and credit report requirements
2200	provisions of ss. 494.00321 and 494.00322 s. 494.0031(2)(c) and
2201	(d) is subject to the such provisions of such sections unless
2202	required to file an initial application in accordance with
2203	paragraph (a). If, after the addition of a control person, the
2204	office finds that the licensee does not continue to meet
2205	licensure requirements, the office may bring an administrative
2206	action in accordance with s. 494.00255 s. 494.0041 to enforce
2207	the provisions of this chapter.
2208	(d)  The commission shall adopt rules pursuant to ss.
2209	120.536(1) and 120.54 providing for the waiver of the
2210	application required by this subsection if the person or group
2211	of persons proposing to purchase or acquire a controlling
2212	interest in a licensee has previously complied with the
2213	provisions of s. 494.0031(2)(c) and (d) with respect to the same
2214	legal entity or is currently licensed by the office under this
2215	chapter.
2216	(7)  On or before April 30, 2000, each mortgage brokerage
2217	business shall file an initial report stating the name, social
2218	security number, date of birth, mortgage broker license number,
2219	date of hire and, if applicable, date of termination for each
2220	person who was an associate of the mortgage brokerage business
2221	during the immediate preceding quarter. Thereafter, A mortgage
2222	brokerage business shall file a quarterly report only if a
2223	person became an associate or ceased to be an associate of the
2224	mortgage brokerage business during the immediate preceding
2225	quarter. Such report shall be filed within 30 days after the
2226	last day of each calendar quarter and shall contain the name,
2227	social security number, date of birth, mortgage broker license
2228	number, date of hire and, if applicable, the date of termination
2229	of each person who became or ceased to be an associate of the
2230	mortgage brokerage business during the immediate preceding
2231	quarter. The commission shall prescribe, by rule, the procedures
2232	for filing reports required by this subsection.
2233	(3)(8)(a)  In every mortgage loan transaction, each
2234	licensee under this part must ss. 494.003-494.0043 shall notify
2235	a borrower of any material changes in the terms of a mortgage
2236	loan previously offered to the borrower within 3 business days
2237	after being made aware of such changes by the mortgage lender
2238	but at least not less than 3 business days before the signing of
2239	the settlement or closing statement. The licensee bears the
2240	burden of proving such notification was provided and accepted by
2241	the borrower.
2242	(b)  A borrower may waive the right to receive notice of a
2243	material change that is granted under paragraph (a) if the
2244	borrower determines that the extension of credit is needed to
2245	meet a bona fide personal financial emergency and the right to
2246	receive notice would delay the closing of the mortgage loan. The
2247	imminent sale of the borrower's home at foreclosure during the
2248	3-day period before the signing of the settlement or closing
2249	statement is constitutes an example of a bona fide personal
2250	financial emergency. In order to waive the borrower's right to
2251	receive notice not less than 3 business days before the signing
2252	of the settlement or closing statement of any such material
2253	change, the borrower must provide the licensee with a dated
2254	written statement that describes the personal financial
2255	emergency, waives the right to receive the notice, bears the
2256	borrower's signature, and is not on a printed form prepared by
2257	the licensee for the purpose of such a waiver.
2258	(4)  Each mortgage broker shall submit to the registry
2259	reports of condition, which must be in such form and shall
2260	contain such information as the registry may require.
2261	(5)  A license issued under this part is not transferable
2262	or assignable.
2263	Section 35.  Section 494.0041, Florida Statutes, is
2264	repealed.
2265	Section 36.  Section 494.0042, Florida Statutes, is amended
2266	to read:
2267	494.0042  Loan originator Brokerage fees.--
2268	(1)  A loan originator mortgage brokerage fee earned by a
2269	licensee, pursuant to this part ss. 494.003-494.0043, is not
2270	considered interest or a finance charge under chapter 687.
2271	(2)  A person may not charge or exact, directly or
2272	indirectly, from the borrower mortgagor a fee or commission in
2273	excess of the maximum fee or commission specified in this
2274	section. The maximum fees or commissions that may be charged for
2275	mortgage loans are as follows:
2276	(a)  On a mortgage loan of $1,000 or less: $250.
2277	(b)  On a mortgage loan exceeding $1,000 and not exceeding
2278	$2,000: $250 for the first $1,000 of the mortgage loan, plus $10
2279	for each additional $100 of the mortgage loan.
2280	(c)  On a mortgage loan exceeding $2,000 and not exceeding
2281	$5,000: $350 for the first $2,000 of the mortgage loan, plus $10
2282	for each additional $100 of the mortgage loan.
2283	(d)  On a mortgage loan exceeding $5,000: $250 plus 10
2284	percent of the entire mortgage loan.
2285
2286	For the purpose of determining the maximum fee, the amount of
2287	the mortgage loan is based on the amount of mortgage loan
2288	actually funded exclusive of the authorized maximum fees or
2289	commissions.
2290	(3)  At the time of accepting a mortgage loan application,
2291	a mortgage broker brokerage business may receive from the
2292	borrower a nonrefundable application fee. If the mortgage loan
2293	is funded, the nonrefundable application fee shall be credited
2294	against the amount owed as a result of the loan being funded. A
2295	person may not receive any form of compensation for acting as a
2296	loan originator mortgage broker other than a nonrefundable
2297	application fee, a fee based on the mortgage amount being
2298	funded, or a fee which complies with s. 494.00421.
2299	Section 37.  Section 494.00421, Florida Statutes, is
2300	amended to read:
2301	494.00421  Fees earned upon obtaining a bona fide
2302	commitment.--Notwithstanding the provisions of ss. 494.001-
2303	494.0077, any mortgage broker brokerage business which contracts
2304	to receive from a borrower a mortgage broker brokerage fee from
2305	a borrower upon obtaining a bona fide commitment shall
2306	accurately disclose in the mortgage broker brokerage agreement:
2307	(1)  The gross loan amount.
2308	(2)  In the case of a fixed-rate mortgage, the note rate.
2309	(3)  In the case of an adjustable rate mortgage:
2310	(a)  The initial note rate.
2311	(b)  The length of time for which the initial note rate is
2312	effective.
2313	(c)  The frequency of changes.
2314	(d)  The limitation upon such changes including adjustment
2315	to adjustment cap and life cap.
2316	(e)  Whether the loan has any potential for negative
2317	amortization.
2318	(f)  Identification of the margin-interest rate
2319	differential.
2320	(g)  Identification of a nationally recognized index which
2321	index must be free from control of the mortgage broker, mortgage
2322	brokerage business, mortgage lender, or correspondent mortgage
2323	lender.
2324	(4)  The estimated net proceeds to be paid directly to the
2325	borrower. "Estimated net proceeds" means the cash to be received
2326	by the borrower after payment of any fees, charges, debts,
2327	liens, or encumbrances to perfect the lien of the new mortgage
2328	and establish the agreed-upon priority of the new mortgage.
2329	(5)  The lien priority of the new proposed mortgage.
2330	(6)  The number of calendar days, which are mutually agreed
2331	upon, within which the mortgage broker brokerage business shall
2332	obtain a bona fide mortgage commitment.
2333	(7)(a)  The following statement, in at least no less than
2334	12-point boldface type immediately above the signature lines for
2335	the borrowers:
2336
2337	"You are entering into a contract with a mortgage broker
2338	brokerage business to obtain a bona fide mortgage loan
2339	commitment under the same terms and conditions as stated
2340	hereinabove or in a separate executed good faith estimate form.
2341	If the mortgage broker brokerage business obtains a bona fide
2342	commitment under the same terms and conditions, you will be
2343	obligated to pay the mortgage broker brokerage business fees,
2344	including, but not limited to, a mortgage broker brokerage fee,
2345	even if you choose not to complete the loan transaction. If the
2346	provisions of s. 494.00421, Florida Statutes, are not met, the
2347	mortgage broker brokerage fee can only be earned upon the
2348	funding of the mortgage loan. The borrower may contact the
2349	Department of Financial Services, Tallahassee, Florida,
2350	regarding any complaints that the borrower may have against the
2351	mortgage broker or the mortgage brokerage business. The
2352	telephone number of the department is: ...([insert telephone
2353	number)]..."
2354	(b)  Paragraph (a) does not apply to nonresidential
2355	mortgage loan commitments in excess of $1 million.
2356	(8)  Any other disclosure required pursuant to s. 494.0038.
2357	Section 38.  Section 494.0043, Florida Statutes, is amended
2358	to read:
2359	494.0043  Requirements for brokering loans to
2360	noninstitutional investors.--
2361	(1)  A loan originator mortgage broker, when arranging a
2362	mortgage loan for a noninstitutional investor, shall:
2363	(a)  Before any payment of money by the a noninstitutional
2364	investor, provide an opinion of value from an appraiser stating
2365	the value of the security property unless the opinion is waived
2366	in writing. The opinion must state the value of the property as
2367	it exists on the date of the opinion. If any relationship exists
2368	between the mortgage broker and the appraiser, that relationship
2369	shall be disclosed to the investor.
2370	(b)  Provide to the noninstitutional investor a mortgagee's
2371	title insurance policy or an opinion of title by an attorney
2372	licensed to practice law in the state, or a copy thereof.
2373	1.  If a title insurance policy is issued, it must insure
2374	the noninstitutional investor against the unmarketability of the
2375	mortgagee's interest in such title. It must shall also specify
2376	any superior liens that exist against the property. If an
2377	opinion of title is issued by an attorney licensed to practice
2378	law in the state, the opinion must include a statement as to the
2379	marketability of the title to the property described in the
2380	mortgage and specify the priority of the mortgage being closed.
2381	2.  If the title insurance policy or opinion of title is
2382	not available at the time of purchase, the licensee shall
2383	provide a binder of the title insurance or conditional opinion
2384	of title. This binder or opinion must include any conditions or
2385	requirements that need needed to be corrected before prior to
2386	the issuance of the final title policy or opinion of title. The
2387	binder or opinion must also include information concerning the
2388	requirements specified in subparagraph 1. Any conditions must be
2389	eliminated or waived in writing by the investor before prior to
2390	delivery to the noninstitutional investor. The policy or
2391	opinion, or a copy thereof, shall be delivered to the investor
2392	within a reasonable period of time, not exceeding 6 months,
2393	after closing.
2394	3.  The requirements of this paragraph may be waived in
2395	writing. If the requirements are waived by the noninstitutional
2396	investor, the waiver must include the following statement
2397	wording: "The noninstitutional investor acknowledges that the
2398	mortgage broker or mortgage lender brokering this mortgage loan
2399	is not providing a title insurance policy or opinion of title
2400	issued by an attorney who is licensed to practice law in the
2401	State of Florida. Any requirement for title insurance or for a
2402	legal opinion of title is the sole responsibility of the
2403	noninstitutional mortgage investor."
2404	(c)  Provide, if the loan is other than a first mortgage, a
2405	statement showing the balance owed by the mortgagor on any
2406	existing mortgages prior to this investment and the status of
2407	such existing mortgages.
2408	(d)  Provide a disclosure if the licensee is directly or
2409	indirectly acting as a borrower or principal in the transaction.
2410	(2)  Each original or certified copy of the mortgage, or
2411	other instrument securing a note or assignment thereof, must
2412	shall be recorded before being delivered to the noninstitutional
2413	investor. A mortgage broker shall cause the properly endorsed
2414	original note to be delivered to the noninstitutional investor.
2415	(3)  Each mortgage and assignment must shall be recorded as
2416	soon as practical, but no later than 30 business days after the
2417	date of closing.
2418	(4)  Any money from a noninstitutional investor for
2419	disbursement at a mortgage loan closing must shall be deposited
2420	with and disbursed by an attorney duly licensed in this state or
2421	by a title company duly licensed in this state. A person acting
2422	as a loan originator mortgage broker may not have control of any
2423	money from a noninstitutional investor. This subsection does not
2424	prohibit a licensee under this part ss. 494.003-494.0043 from
2425	receiving a loan originator mortgage brokerage fee upon the
2426	closing of the mortgage loan funded by the noninstitutional
2427	investor.
2428	Section 39.  Sections 494.006 and 494.0061, Florida
2429	Statutes, are repealed.
2430	Section 40.  Section 494.00611, Florida Statutes, is
2431	created to read:
2432	494.00611  Mortgage lender license.--
2433	(1)  Each individual who acts as a mortgage lender must be
2434	licensed under this section.
2435	(2)  In order to apply for a mortgage lender license, an
2436	applicant must:
2437	(a)  Submit a completed application form as prescribed by
2438	the commission by rule.
2439	(b)  Designate a qualified principal loan originator who
2440	meets the requirements of s. 494.0035 on the application form.
2441	(c)  Submit a nonrefundable application fee of $500, and
2442	the $100 nonrefundable fee if required by s. 494.00172.
2443	Application fees may not be prorated for partial years of
2444	licensure.
2445	(d)  Submit fingerprints for each of the applicant's
2446	control persons in accordance with rules adopted by the
2447	commission.
2448	1.  The fingerprints may be submitted to the registry, the
2449	office, or a vendor acting on behalf of the registry or the
2450	office.
2451	2.  The office may contract with a third-party vendor to
2452	provide live-scan fingerprinting in lieu of a paper fingerprint
2453	card.
2454	3.  A state criminal history background check must be
2455	conducted through the Department of Law Enforcement, and a
2456	federal criminal history background check must be conducted
2457	through the Federal Bureau of Investigation.
2458	4.  All fingerprints submitted to the Department of Law
2459	Enforcement must be submitted electronically and entered into
2460	the statewide automated fingerprint identification system
2461	established in s. 943.05(2)(b) and available for use in
2462	accordance with s. 943.05(2)(g) and (h). The office shall pay an
2463	annual fee to the Department of Law Enforcement to participate
2464	in the system and inform the Department of Law Enforcement of
2465	any person whose fingerprints are no longer required to be
2466	retained.
2467	5.  The costs of fingerprint processing, including the cost
2468	of retaining the fingerprints, shall be borne by the person
2469	subject to the background check.
2470	6.  The office is responsible for reviewing the results of
2471	the state and federal criminal history checks and determining
2472	whether the applicant meets licensure requirements.
2473	(e)  Indicate whether the applicant will be seeking a
2474	servicing endorsement on the application form.
2475	(f)  Submit a copy of the applicant's financial audit
2476	report for the most recent fiscal year pursuant to United States
2477	generally accepted accounting principles. If the applicant is a
2478	wholly owned subsidiary of another corporation, the financial
2479	audit report for the parent corporation satisfies this
2480	requirement. The commission may establish by rule the form and
2481	procedures for filing the financial audit report, including the
2482	requirement to file the report with the registry when technology
2483	is available. The financial audit report must document that the
2484	applicant has a bona fide and verifiable net worth, of at least
2485	$63,000 if the applicant is not seeking a servicing endorsement,
2486	or at least $250,000 if the applicant is seeking a servicing
2487	endorsement, which must be continuously maintained as a
2488	condition of licensure. However, if the applicant held an active
2489	license issued before October 1, 2010, pursuant to former s.
2490	494.0065, and the applicant is seeking a servicing endorsement,
2491	the minimum net worth requirement:
2492	1.  Until September 30, 2011, is $63,000.
2493	2.  Between October 1, 2011, and September 30, 2012, is
2494	$125,000.
2495	3.  On or after October 1, 2012, is $250,000.
2496	(g)  Authorize the registry to obtain an independent credit
2497	report on each of the applicant's control persons from a
2498	consumer reporting agency, and transmit or provide access to the
2499	report to the office. The cost of the credit report shall be
2500	borne by the applicant.
2501	(h)  Submit additional information or documentation
2502	requested by the office and required by rule concerning the
2503	applicant or a control person of the applicant. Additional
2504	information may include documentation of pending and prior
2505	disciplinary and criminal history events, including arrest
2506	reports and certified copies of charging documents, plea
2507	agreements, judgments and sentencing documents, documents
2508	relating to pretrial intervention, orders terminating probation
2509	or supervised release, final administrative agency orders, or
2510	other comparable documents that may provide the office with the
2511	appropriate information to determine eligibility for licensure.
2512	(i)  Submit any other information required by the registry
2513	for the processing of the application.
2514	(3)  An application is considered received for the purposes
2515	of s. 120.60 upon the office's receipt of all documentation from
2516	the registry, including the completed application form, criminal
2517	history information, and independent credit reports, as well as
2518	the license application fee, the fee required by s. 494.00172,
2519	and all applicable fingerprinting processing fees.
2520	(4)  The office shall issue a mortgage lender license to
2521	each person who is not otherwise ineligible and who meets the
2522	requirements of this section. However, it is a ground for denial
2523	of licensure if the applicant or one of the applicant's control
2524	persons:
2525	(a)  Has committed any violation specified in ss. 494.001-
2526	494.0077, or is the subject of a pending felony criminal
2527	prosecution or a prosecution or an administrative enforcement
2528	action, in any jurisdiction, which involves fraud, dishonesty,
2529	breach of trust, money laundering, or any other act of moral
2530	turpitude.
2531	(b)  Has failed to demonstrate the character, general
2532	fitness, and financial responsibility necessary to command the
2533	confidence of the community and warrant a determination that the
2534	applicant will operate honestly, fairly, and efficiently.
2535	1.  If the office has information that could form the basis
2536	for license denial under this paragraph, before denying the
2537	license, the office must notify the applicant in writing of the
2538	specific items of concern and provide the applicant with an
2539	opportunity to explain the circumstances surrounding the
2540	specific items and provide any information that the applicant
2541	believes is relevant to the office's determination.
2542	2.  For purposes of evaluating adverse information found in
2543	an applicant's credit report, the information must be considered
2544	within the totality of the circumstances. Information provided
2545	by the applicant under subparagraph 1., or information obtained
2546	by the office by other means, may be used to provide a context
2547	for the adverse items. For example, the adverse items may have
2548	resulted from factors that do not necessarily reflect negatively
2549	upon the applicant's character, general fitness, or financial
2550	responsibility.
2551	3.  The office may not use a credit score or the absence or
2552	insufficiency of credit history information to determine
2553	character, general fitness, or financial responsibility.
2554	4.  If information contained in a credit report is used as
2555	the basis for denying a license, the office shall, in accordance
2556	with s. 120.60(3), provide with particularity the grounds or
2557	basis for denial. The use of the terms "poor credit history" or
2558	"poor credit rating" or similar language does not meet the
2559	requirements of this paragraph.
2560	(5)  The office may not issue a license if the applicant
2561	has had a mortgage lender license or its equivalent revoked in
2562	any jurisdiction, or if any of the applicant's control persons
2563	has had a loan originator license or its equivalent revoked in
2564	any jurisdiction.
2565	(6)  A person required to be licensed under this part, or
2566	an agent or employee thereof, is deemed to have consented to the
2567	venue of courts in this state regarding any matter within the
2568	authority of ss. 494.001-494.0077 regardless of where an act or
2569	violation was committed.
2570	(7)  A license issued in accordance with this part is not
2571	transferable or assignable.
2572	(8)  A mortgage lender or branch office license may be
2573	annulled pursuant to s. 120.60 if it was issued by the office by
2574	mistake. A license must be reinstated if the applicant
2575	demonstrates that the requirements for obtaining the license
2576	under this chapter have been satisfied.
2577	(9)  Each lender, regardless of the number of branches it
2578	operates, shall designate a principal loan originator
2579	representative who exercises control of the licensee's business
2580	and a branch manager for each branch office. Each mortgage
2581	lender must keep the office informed of the persons designated
2582	as prescribed by commission rule, which includes documentation
2583	of the individual's acceptance of such responsibility. If the
2584	designation is inaccurate, the branch shall be deemed to be
2585	operated under the full charge, control, and supervision by each
2586	officer, director, or ultimate equitable owner of a 10-percent
2587	or greater interest in the mortgage lender business, or any
2588	other person in a similar capacity during that time.
2589	(10)  All mortgage lender licenses must be renewed annually
2590	by December 31 pursuant to s. 494.00612. If a person holding an
2591	active mortgage lender license has not applied to renew the
2592	license annually on or before December 31, the mortgage lender
2593	license expires on December 31. If a person holding an active
2594	mortgage lender license has applied to renew the license on or
2595	before December 31, the mortgage lender license remains active
2596	until the renewal application is approved or denied. A mortgage
2597	lender is not precluded from reapplying for licensure upon
2598	expiration of a previous license.
2599	Section 41.  Section 494.00612, Florida Statutes, is
2600	created to read:
2601	494.00612  Mortgage lender license renewal.--
2602	(1)  In order to renew a mortgage lender license, a
2603	mortgage lender must:
2604	(a)  Submit a completed license renewal form as prescribed
2605	by commission rule.
2606	(b)  Submit a nonrefundable renewal fee of $475, the $100
2607	nonrefundable fee if required by s. 494.00172, and nonrefundable
2608	fees to cover the cost of further fingerprint processing and
2609	retention as set forth in commission rule.
2610	(c)  Submit fingerprints in accordance with s.
2611	494.00611(2)(d) for any new control persons who have not been
2612	screened.
2613	(d)  Provide proof that the mortgage lender continues to
2614	meet the applicable net worth requirement in a form prescribed
2615	by commission rule.
2616	(e)  Authorize the registry to obtain an independent credit
2617	report on the mortgage lender from a consumer reporting agency,
2618	and transmit or provide access to the report to the office. The
2619	cost of the credit report shall be borne by the licensee.
2620	(f)  Submit any additional information or documentation
2621	requested by the office and required by rule concerning the
2622	licensee. Additional information may include documentation of
2623	pending and prior disciplinary and criminal history events,
2624	including arrest reports and certified copies of charging
2625	documents, plea agreements, judgments and sentencing documents,
2626	documents relating to pretrial intervention, orders terminating
2627	probation or supervised release, final administrative agency
2628	orders, or other comparable documents that may provide the
2629	office with the appropriate information to determine eligibility
2630	for renewal of licensure.
2631	(2)  The office may not renew a mortgage lender license
2632	unless the mortgage lender continues to meet the minimum
2633	requirements for initial licensure pursuant to s. 494.00611 and
2634	adopted rule.
2635	Section 42.  Section 494.0062, Florida Statutes, is
2636	repealed.
2637	Section 43.  Section 494.0063, Florida Statutes, is amended
2638	to read:
2639	494.0063  Audited financial statements.--All audited
2640	financial statements required by ss. 494.001-494.0077 must be
2641	prepared by an independent licensed certified public accountant.
2642	A mortgage lender must obtain an annual financial audit report
2643	as of the date of the licensee's fiscal year end, as disclosed
2644	to the office on the application or a subsequent amendment to
2645	the application. The mortgage lender shall submit a copy of the
2646	report to the office within 120 days after the end of the
2647	licensee's fiscal year. If the applicant is a wholly owned
2648	subsidiary of another corporation, the financial audit report of
2649	the parent corporation satisfies this requirement. If the
2650	licensee changes its fiscal year, the licensee must file a
2651	report within 18 months after the previously submitted report.
2652	The commission may establish by rule the procedures and form for
2653	filing a financial audit report, including the requirement to
2654	file the report with the registry when technology is available.
2655	Section 44.  Sections 494.0064 and 494.0065, Florida
2656	Statutes, are repealed.
2657	Section 45.  Section 494.0066, Florida Statutes, is amended
2658	to read:
2659	494.0066  Branch offices.--
2660	(1)  Each branch office of a mortgage lender must be
2661	licensed under this section A branch office license is required
2662	for each branch office maintained by a licensee under ss.
2663	494.006-494.0077.
2664	(2)  The office shall issue a branch office license to a
2665	mortgage lender licensee licensed under ss. 494.006-494.0077
2666	after the office determines that the mortgage lender licensee
2667	has submitted a completed branch office application form as
2668	prescribed by rule by the commission and an initial
2669	nonrefundable branch office license fee of $225 per branch
2670	office $325. Application fees may not be prorated for partial
2671	years of licensure. The branch office application must include
2672	the name and license number of the mortgage lender licensee
2673	under this part ss. 494.006-494.0077, the name of the branch
2674	manager licensee's employee in charge of the branch office, and
2675	the address of the branch office. The branch office license
2676	shall be issued in the name of the mortgage lender licensee
2677	under ss. 494.006-494.0077 and must be renewed in conjunction
2678	with the license renewal. An application is considered received
2679	for purposes of s. 120.60 upon receipt of a completed branch
2680	office renewal form, as prescribed by commission rule, and the
2681	required fees.
2682	(3)  A branch office license must be renewed at the time of
2683	renewing the mortgage lender license. A nonrefundable fee of
2684	$225 per branch office must be submitted at the time of renewal.
2685	Section 46.  Section 494.00665, Florida Statutes, is
2686	created to read:
2687	494.00665  Principal loan originator and branch manager for
2688	mortgage lender.--
2689	(1)  Each mortgage lender business must be operated by a
2690	principal loan originator who shall have full charge, control,
2691	and supervision of the mortgage lender business. The principal
2692	loan originator must be licensed as a loan originator pursuant
2693	to s. 494.00312. Each mortgage lender must keep the office
2694	informed of the person designated as the principal loan
2695	originator as prescribed by commission rule. If the designation
2696	is inaccurate, the business shall be deemed to be operated under
2697	the full charge, control, and supervision of each officer,
2698	director, or ultimate equitable owner of a 10-percent or greater
2699	interest in the mortgage lender business, or any other person in
2700	a similar capacity during that time.
2701	(2)  Each branch office of a mortgage lender must be
2702	operated by a branch manager who shall have full charge,
2703	control, and supervision of the branch office. The designated
2704	branch manager must be a licensed loan originator pursuant to s.
2705	494.00312. Each mortgage lender must keep the office informed of
2706	the person designated as the branch manager as prescribed by
2707	commission rule, which includes documentation of the
2708	individual's acceptance of such responsibility. If the
2709	designation is inaccurate, the branch office shall be deemed to
2710	be operated under the full charge, control, and supervision of
2711	each officer, director, or ultimate equitable owner of a 10-
2712	percent or greater interest in the mortgage lender business, or
2713	any other person in a similar capacity during that time.
2714	Section 47.  Section 494.0067, Florida Statutes, is amended
2715	to read:
2716	494.0067  Requirements of mortgage lenders licensees under
2717	ss. 494.006-494.0077.--
2718	(1)  A mortgage lender that Each licensee under ss.
2719	494.006-494.0077 which makes mortgage loans on real estate in
2720	this state shall transact business from a principal place of
2721	business. Each principal place of business and each branch
2722	office shall be operated under the full charge, control, and
2723	supervision of the licensee pursuant to this part under ss.
2724	494.006-494.0077.
2725	(2)  A license issued under this part ss. 494.006-494.0077
2726	is not transferable or assignable.
2727	(3)  A mortgage lender Each licensee under ss. 494.006-
2728	494.0077 shall report, on a form prescribed by rule of the
2729	commission, any change in the information contained in any
2730	initial application form, or any amendment thereto, within not
2731	later than 30 days after the change is effective.
2732	(4)  A mortgage lender Each licensee under ss. 494.006-
2733	494.0077 shall report any changes in the principal loan
2734	originator, any addition or subtraction of a control person,
2735	partners, officers, members, joint venturers, directors, or
2736	control persons of any licensee or any change changes in the
2737	form of business organization by written amendment in such form
2738	and at such time that the commission specifies by rule.
2739	(a)  In any case in which a person or a group of persons,
2740	directly or indirectly or acting by or through one or more
2741	persons, proposes to purchase or acquire a controlling interest
2742	in a licensee, such person or group must submit an initial
2743	application for licensure as a mortgage lender or correspondent
2744	mortgage lender before such purchase or acquisition and at the
2745	time and in the form prescribed by the commission by rule.
2746	(b)  As used in this subsection, the term "controlling
2747	interest" means possession of the power to direct or cause the
2748	direction of the management or policies of a company whether
2749	through ownership of securities, by contract, or otherwise. Any
2750	person who directly or indirectly has the right to vote 25
2751	percent or more of the voting securities of a company or who is
2752	entitled to 25 percent or more of the company's profits is
2753	presumed to possess a controlling interest.
2754	(b)(c)  Any addition of a designated principal
2755	representative, partner, officer, member, joint venturer,
2756	director, or control person of the applicant who does not have a
2757	controlling interest and who has not previously filed a Uniform
2758	Mortgage Biographical Statement & Consent Form, MU2, or has not
2759	previously complied with the fingerprinting and credit report
2760	requirements of s. 494.00611 is provisions of s. 494.0061(2)(g)
2761	and (h), s. 494.0062(2)(g) and (h), or s. 494.0065(5)(e) and (f)
2762	shall be subject to the such provisions of this section unless
2763	required to file an initial application in accordance with
2764	paragraph (a). If, after the addition of a control person, the
2765	office determines that the licensee does not continue to meet
2766	licensure requirements, the office may bring administrative
2767	action in accordance with s. 494.00255 s. 494.0072 to enforce
2768	the provisions of this section.
2769	(d)  The commission shall adopt rules pursuant to ss.
2770	120.536(1) and 120.54 providing for the waiver of the
2771	application required by this subsection if the person or group
2772	of persons proposing to purchase or acquire a controlling
2773	interest in a licensee has previously complied with the
2774	provisions of s. 494.0061(2)(g) and (h), s. 494.0062(2)(g) and
2775	(h), or s. 494.0065(5)(e) and (f) with the same legal entity or
2776	is currently licensed with the office under this chapter.
2777	(5)  Each mortgage lender licensee under ss. 494.006-
2778	494.0077 shall report in a form prescribed by rule by the
2779	commission any indictment, information, charge, conviction, or
2780	plea of guilty or nolo contendere, regardless of adjudication,
2781	or plea of guilty to any felony or any crime or administrative
2782	violation that involves fraud, dishonesty, breach of trust,
2783	money laundering dishonest dealing, or any other act of moral
2784	turpitude, in any jurisdiction, by the licensee under ss.
2785	494.006-494.0077 or any principal officer, director, or ultimate
2786	equitable owner of 10 percent or more of the licensed
2787	corporation within, not later than 30 business days after the
2788	indictment, information, charge, conviction, or final
2789	administrative action.
2790	(6)  Each mortgage lender licensee under ss. 494.006-
2791	494.0077 shall report any action in bankruptcy, voluntary or
2792	involuntary, to the office within, not later than 7 business
2793	days after the action is instituted.
2794	(7)  Each mortgage lender licensee under ss. 494.006-
2795	494.0077 shall designate a registered agent in this state for
2796	service of process.
2797	(8)  Each mortgage lender licensee under ss. 494.006-
2798	494.0077 shall provide an applicant for a mortgage loan a good
2799	faith estimate of the costs the applicant can reasonably expect
2800	to pay in obtaining a mortgage loan. The good faith estimate of
2801	costs must shall be mailed or delivered to the applicant within
2802	3 business days a reasonable time after the licensee receives a
2803	written loan application from the applicant. The estimate of
2804	costs may be provided to the applicant by a person other than
2805	the licensee making the loan. The good faith estimate must
2806	identify the recipient of all payments charged to the borrower
2807	and, except for all fees to be received by the mortgage broker
2808	brokerage business and the mortgage lender or correspondent
2809	mortgage lender, may be disclosed in generic terms, such as, but
2810	not limited to, paid to appraiser, officials, title company, or
2811	any other third-party service provider. The licensee bears the
2812	burden of proving such disclosures were provided to the
2813	borrower. The commission may adopt rules that set forth the
2814	disclosure requirements of this section.
2815	(9)  On or before April 30, 2000, each mortgage lender or
2816	correspondent mortgage lender shall file an initial report
2817	stating the full legal name, residential address, social
2818	security number, date of birth, mortgage broker license number,
2819	date of hire, and, if applicable, date of termination for each
2820	person who acted as a loan originator or an associate of the
2821	mortgage lender or correspondent mortgage lender during the
2822	immediate preceding quarter. Thereafter, a mortgage lender or
2823	correspondent mortgage lender shall file a report only if a
2824	person became or ceased to be a loan originator or an associate
2825	of the mortgage lender or correspondent mortgage lender during
2826	the immediate preceding quarter. Such report shall be filed
2827	within 30 days after the last day of each calendar quarter and
2828	shall contain the full legal name, residential address, social
2829	security number, date of birth, date of hire and, if applicable,
2830	the mortgage broker license number and date of termination of
2831	each person who became or ceased to be a loan originator or an
2832	associate of the mortgage lender or correspondent mortgage
2833	lender during the immediate preceding quarter. The commission
2834	shall prescribe, by rule, the procedures for filing reports
2835	required by this subsection.
2836	(10)(a)  Each mortgage lender or correspondent mortgage
2837	lender licensee shall require the principal representative and
2838	all loan originators, not currently licensed as mortgage brokers
2839	pursuant to s. 494.0033, who perform services for the licensee
2840	to complete 14 hours of professional continuing education during
2841	each biennial license period. The education shall cover primary
2842	and subordinate mortgage financing transactions and the
2843	provisions of this chapter and the rules adopted under this
2844	chapter.
2845	(b)  The licensee shall maintain records of such training
2846	for a period of 4 years, including records of the content of and
2847	hours designated for each program and the date and location of
2848	the program.
2849	(c)  Evidence of completion of such programs shall be
2850	included with the licensee's renewal application.
2851	(9)(11)  The disclosures in this subsection must be
2852	furnished in writing at the time an adjustable rate mortgage
2853	loan is offered to the borrower and whenever the terms of the
2854	adjustable rate mortgage loan offered have a material change
2855	prior to closing. The lender shall furnish the disclosures
2856	relating to adjustable rate mortgages in a format prescribed by
2857	ss. 226.18 and 226.19 of Regulation Z of the Board of Governors
2858	of the Federal Reserve System, as amended; its commentary, as
2859	amended; and the federal Truth in Lending Act, 15 U.S.C. ss.
2860	1601 et seq., as amended; together with the Consumer Handbook on
2861	Adjustable Rate Mortgages, as amended; published by the Federal
2862	Reserve Board and the Federal Home Loan Bank Board. The licensee
2863	bears the burden of proving such disclosures were provided to
2864	the borrower.
2865	(10)(12)(a)  In every mortgage loan transaction, each
2866	mortgage lender licensee under ss. 494.006-494.0077 shall notify
2867	a borrower of any material changes in the terms of a mortgage
2868	loan previously offered to the borrower within 3 business days
2869	after being made aware of such changes by the lender but at
2870	least not less than 3 business days before the signing of the
2871	settlement or closing statement. The licensee bears the burden
2872	of proving such notification was provided and accepted by the
2873	borrower.
2874	(b)  A borrower may waive the right to receive notice of a
2875	material change that is granted under paragraph (a) if the
2876	borrower determines that the extension of credit is needed to
2877	meet a bona fide personal financial emergency and the right to
2878	receive notice would delay the closing of the mortgage loan. The
2879	imminent sale of the borrower's home at foreclosure during the
2880	3-day period before the signing of the settlement or closing
2881	statement is constitutes an example of a bona fide personal
2882	financial emergency. In order to waive the borrower's right to
2883	receive notice not less than 3 business days before the signing
2884	of the settlement or closing statement of any such material
2885	change, the borrower must provide the licensee with a dated
2886	written statement that describes the personal financial
2887	emergency, waives the right to receive the notice, bears the
2888	borrower's signature, and is not on a printed form prepared by
2889	the licensee for the purpose of such a waiver.
2890	(11)  A mortgage lender may close loans in its own name but
2891	may not service the loan for more than 4 months unless the
2892	lender has a servicing endorsement. Only a mortgage lender who
2893	continuously maintains a net worth of at least $250,000 may
2894	obtain a servicing endorsement.
2895	(12)  A mortgage lender must report to the office the
2896	failure to meet the applicable net worth requirements of s.
2897	494.00611 within 2 days after the mortgage lender's knowledge of
2898	such failure or after the mortgage lender should have known of
2899	such failure.
2900	Section 48.  Section 494.0068, Florida Statutes, is amended
2901	to read:
2902	494.0068  Loan application process.--
2903	(1)  In addition to the requirements set forth in s.
2904	494.0067(8), before accepting an application fee in whole or in
2905	part, a credit report fee, an appraisal fee, or a fee charged as
2906	reimbursement for third-party charges, a mortgage lender shall
2907	make a written disclosure to the borrower, which disclosure may
2908	be contained in the application, setting forth:
2909	(a)  Whether all or any part of such fees or charges is
2910	refundable.
2911	(b)  The terms and conditions for the refund, if all or any
2912	part of the fees or charges is refundable.
2913	(c)  A realistic estimate of the number of days required to
2914	issue a commitment following receipt of the application by the
2915	lender.
2916	(d)  The name or title of a person within the lender's
2917	organization to whom the borrower may address written questions,
2918	comments, or complaints and who is required to promptly respond
2919	to such inquiries.
2920	(2)  The disclosures required in subsection (1) must shall
2921	be acknowledged in writing by the borrower and maintained by the
2922	mortgage lender, and a copy of such acknowledgment shall be
2923	given to the borrower.
2924	(3)  The borrower may, without penalty or responsibility
2925	for paying additional fees and charges, withdraw an application
2926	at any time prior to acceptance of commitment. Upon such
2927	withdrawal, the mortgage lender is responsible for refunding to
2928	the borrower only those fees and charges to which the borrower
2929	may be entitled pursuant to the terms set forth in the written
2930	disclosure required by subsection (1), except that:
2931	(a)  If the lender failed to provide the borrower with the
2932	written disclosure required by subsection (1), the lender shall
2933	promptly refund to the borrower all funds paid to the lender; or
2934	(b)  If the lender failed to make a good faith effort to
2935	approve the loan, the lender shall promptly refund to the
2936	borrower all funds paid to the lender.
2937	(4)  The application fee must be reasonably related to the
2938	services to be performed and may not be based upon a percentage
2939	of the principal amount of the loan or the amount financed.
2940	(5)  For the purposes of this section, the term
2941	"application fee" means any moneys advanced by the borrower upon
2942	filing an application with a mortgage lender to offset the
2943	lender's expenses for determining whether the borrower is
2944	qualified for the mortgage loan or whether the mortgage loan
2945	should be funded.
2946	Section 49.  Section 494.0069, Florida Statutes, is amended
2947	to read:
2948	494.0069  Lock-in agreement.--
2949	(1)  Each lock-in agreement must be in writing and must
2950	contain:
2951	(a)  The expiration date of the lock-in, if any;
2952	(b)  The interest rate locked in, if any;
2953	(c)  The discount points locked in, if any;
2954	(d)  The commitment fee locked in, if any;
2955	(e)  The lock-in fee, if any; and
2956	(f)  A statement advising of the provisions of this part
2957	ss. 494.006-494.0077 regarding lock-in agreements.
2958	(2)  The mortgage lender or correspondent mortgage lender
2959	shall make a good faith effort to process the mortgage loan
2960	application and stand ready to fulfill the terms of its
2961	commitment before the expiration date of the lock-in agreement
2962	or any extension thereof.
2963	(3)  Any lock-in agreement received by a mortgage lender or
2964	correspondent mortgage lender by mail or through a mortgage
2965	broker must be signed by the mortgage lender or correspondent
2966	mortgage lender in order to become effective. The borrower may
2967	rescind any lock-in agreement until a written confirmation of
2968	the agreement has been signed by the lender and mailed to the
2969	borrower or to the mortgage broker brokerage business pursuant
2970	to its contractual relationship with the borrower. If a borrower
2971	elects to so rescind, the mortgage lender or correspondent
2972	mortgage lender shall promptly refund any lock-in fee paid.
2973	(4)(a)  Before Any correspondent mortgage lender or
2974	mortgage lender prior to issuing a mortgage loan rate lock-in
2975	agreement, a mortgage lender must have the ability to timely
2976	advance funds on all mortgage loans for which rate lock-in
2977	agreements have been issued. As used in this section, "ability
2978	to timely advance funds" means having sufficient liquid assets
2979	or a line of credit necessary to cover all rate lock-in
2980	agreements issued with respect to which a lock-in fee is
2981	collected.
2982	(b)  A correspondent mortgage lender or mortgage lender
2983	that does not comply with this subsection paragraph (a) may
2984	issue mortgage rate lock-in agreements only if, prior to the
2985	issuance, the correspondent mortgage lender or mortgage lender:
2986	1.  Has received a written rate lock-in agreement from a
2987	correspondent mortgage lender or mortgage lender that complies
2988	with this subsection paragraph (a); or
2989	2.  Has received a written rate lock-in agreement from an
2990	institutional investor or an agency of the Federal Government or
2991	the state or local government that will be funding, making, or
2992	purchasing the mortgage loan.
2993	(c)  All rate lock-in fees collected by a mortgage lender
2994	or correspondent mortgage lender who is not in compliance with
2995	this subsection paragraph (a) must be deposited into an escrow
2996	account in a federally insured financial institution, and such
2997	fees may shall not be removed from such escrow account until:
2998	1.  The mortgage loan closes and is funded;
2999	2.  The applicant cancels the loan application or the loan
3000	application is rejected; or
3001	3.  The mortgage lender or correspondent mortgage lender is
3002	required to forward a portion of the lock-in fee to another
3003	correspondent mortgage lender, mortgage lender, institutional
3004	investor, or agency that will be funding, making, or purchasing
3005	the loan. The mortgage lender or correspondent mortgage lender
3006	may remove only the amount of the lock-in fee actually paid to
3007	another mortgage lender, correspondent mortgage lender,
3008	institutional investor, or agency.
3009	(5)  For purposes of this section, the term "lock-in fee"
3010	means any moneys advanced by the borrower to lock in for a
3011	specified period of time a specified interest rate or discount
3012	points.
3013	(6)  The commission may adopt by rule a form for required
3014	lock-in agreement disclosures.
3015	Section 50.  Effective July 1, 2009, section 494.007,
3016	Florida Statutes, is amended to read:
3017	494.007  Commitment process.--
3018	(1)  If a commitment is issued, the mortgage lender shall
3019	disclose in writing:
3020	(a)  The expiration date of the commitment;
3021	(b)  The mortgage amount, meaning the face amount of credit
3022	provided to the borrower or in the borrower's behalf;
3023	(c)  If the interest rate or other terms are subject to
3024	change before expiration of the commitment:
3025	1.  The basis, index, or method, if any, which will be used
3026	to determine the rate at closing. Such basis, index, or method
3027	shall be established and disclosed with direct reference to the
3028	movement of an interest rate index or of a national or regional
3029	index that is available to and verifiable by the borrower and
3030	beyond the control of the lender; or
3031	2.  The following statement, in at least 10-point bold
3032	type: "The interest rate will be the rate established by the
3033	lender in its discretion as its prevailing rate . . . days
3034	before closing.";
3035	(d)  The amount of the commitment fee, if any, and whether
3036	and under what circumstances the commitment fee is refundable;
3037	and
3038	(e)  The time, if any, within which the commitment must be
3039	accepted by the borrower.
3040	(2)  The provisions of a commitment cannot be changed prior
3041	to expiration of the specified period within which the borrower
3042	must accept it. If any information necessary for an accurate
3043	disclosure required by subsection (1) is unknown to the mortgage
3044	lender at the time disclosure is required, the lender shall make
3045	the disclosure based upon the best information reasonably
3046	available to it and shall state that the disclosure is an
3047	estimate.
3048	(3)  A commitment fee is refundable if:
3049	(a)  The commitment is contingent upon approval by parties
3050	to whom the mortgage lender seeks to sell the loan.
3051	(b)  The loan purchaser's requirements are not met due to
3052	circumstances beyond the borrower's control.
3053	(c)  The borrower is willing but unable to comply with the
3054	loan purchaser's requirements.
3055	Section 51.  Section 494.0071, Florida Statutes, is amended
3056	to read:
3057	494.0071  Expiration of lock-in agreement or
3058	commitment.--If a lock-in agreement has been executed and the
3059	loan does not close before the expiration date of either the
3060	lock-in agreement or any commitment issued consistent therewith
3061	through no substantial fault of the borrower, the borrower may
3062	withdraw the application or reject or terminate any commitment,
3063	whereupon the mortgage lender or correspondent mortgage lender
3064	shall promptly refund to the borrower any lock-in fee and any
3065	commitment fee paid by the borrower.
3066	Section 52.  Section 494.0072, Florida Statutes, is
3067	repealed.
3068	Section 53.  Section 494.00721, Florida Statutes, is
3069	amended to read:
3070	494.00721  Net worth.--
3071	(1)  The net worth requirements required in s. 494.00611
3072	ss. 494.0061, 494.0062, and 494.0065 shall be continually
3073	maintained as a condition of licensure.
3074	(2)  If a mortgage lender or correspondent mortgage lender
3075	fails to satisfy the net worth requirements, the mortgage lender
3076	or correspondent mortgage lender shall immediately cease taking
3077	any new mortgage loan applications. Thereafter, the mortgage
3078	lender or correspondent mortgage lender shall have up to 60 days
3079	within which to satisfy the net worth requirements. If the
3080	licensee makes the office aware, prior to an examination, that
3081	the licensee no longer meets the net worth requirements, the
3082	mortgage lender or correspondent mortgage lender shall have 120
3083	days within which to satisfy the net worth requirements. A
3084	mortgage lender may or correspondent mortgage lender shall not
3085	resume acting as a mortgage lender or correspondent mortgage
3086	lender without written authorization from the office, which
3087	authorization shall be granted if the mortgage lender or
3088	correspondent mortgage lender provides the office with
3089	documentation which satisfies the requirements of s. 494.00611
3090	s. 494.0061(2)(c), s. 494.0062(2)(c), or s. 494.0065(2),
3091	whichever is applicable.
3092	(3)  If the mortgage lender or correspondent mortgage
3093	lender does not satisfy the net worth requirements within 120
3094	days the 120-day period, the license of the mortgage lender or
3095	correspondent mortgage lender shall be deemed to be relinquished
3096	and canceled and all servicing contracts shall be disposed of in
3097	a timely manner by the mortgage lender or correspondent mortgage
3098	lender.
3099	Section 54.  Section 494.0073, Florida Statutes, is amended
3100	to read:
3101	494.0073  Mortgage lender or correspondent mortgage lender
3102	when acting as a mortgage broker brokerage business.--The
3103	provisions of this part Sections 494.006-494.0077 do not
3104	prohibit a mortgage lender or correspondent mortgage lender from
3105	acting as a mortgage broker brokerage business. However, in
3106	mortgage transactions in which a mortgage lender or
3107	correspondent mortgage lender acts as a mortgage broker
3108	brokerage business, the provisions of ss. 494.0038, 494.004(3)
3109	494.004(8), 494.0042, and 494.0043(1), (2), and (3) apply.
3110	Section 55.  Effective July 1, 2009, section 494.0075,
3111	Florida Statutes, is amended to read:
3112	494.0075  Requirements for selling loans to
3113	noninstitutional investors.--
3114	(1)  A mortgage lender, when selling a mortgage loan to a
3115	noninstitutional investor, shall:
3116	(a)  Before any payment of money by a noninstitutional
3117	investor, provide an opinion of value from an appraiser stating
3118	the value of the security property unless the opinion is waived
3119	in writing. The opinion must state the value of the property as
3120	it exists on the date of the opinion. If any relationship exists
3121	between the lender and the appraiser, that relationship must
3122	shall be disclosed.;
3123	(b)  Provide to the noninstitutional investor a mortgagee's
3124	title insurance policy or an opinion of title by an attorney
3125	licensed to practice law in this state, or a copy thereof.:
3126	1.  If a title insurance policy is issued, it must insure
3127	the noninstitutional investor against the unmarketability of the
3128	mortgagee's interest in such title. It must also specify any
3129	superior liens that exist against the property. If an opinion of
3130	title is issued by an attorney licensed to practice law in this
3131	state, the opinion must include a statement as to the
3132	marketability of the title to the property described in the
3133	mortgage and specify the priority of the mortgage being
3134	purchased.
3135	2.  If the title insurance policy or opinion of title is
3136	not available at the time of purchase, the licensee shall
3137	provide a binder of the title insurance or conditional opinion
3138	of title. This binder or opinion must include any conditions or
3139	requirements needed to be corrected before prior to the issuance
3140	of the final title policy or opinion of title. The binder or
3141	opinion must also include information concerning the
3142	requirements specified in subparagraph 1. Any conditions must be
3143	eliminated or waived in writing by the investor before prior to
3144	delivery to the noninstitutional investor. The policy or
3145	opinion, or a copy thereof, shall be delivered to the investor
3146	within a reasonable period of time, not exceeding 6 months,
3147	after purchase.
3148	3.  The requirements of this paragraph may be waived in
3149	writing. If the requirements are waived by the noninstitutional
3150	investor, the waiver must include the following wording: "The
3151	noninstitutional investor acknowledges that the mortgage lender
3152	selling this mortgage loan is not providing a title insurance
3153	policy or opinion of title issued by an attorney who is licensed
3154	to practice law in the State of Florida. Any requirement for
3155	title insurance or for a legal opinion of title is the sole
3156	responsibility of the noninstitutional mortgage purchaser."
3157	(c)  Provide, if the loan is other than a first mortgage, a
3158	statement showing the balance owed by the mortgagor on any
3159	existing mortgages prior to this investment and the status of
3160	such existing mortgages.
3161	(d)  Provide a disclosure if the licensee is directly or
3162	indirectly acting as a borrower or principal in the transaction.
3163	(2)  Each mortgage, or other instrument securing a note or
3164	assignment thereof, must shall be recorded before being
3165	delivered to the noninstitutional investor.
3166	(3)  Each mortgage and assignment shall be recorded as soon
3167	as practical, but within no later than 30 business days after
3168	the date of purchase.
3169	(4)  If the loan is to be serviced by a licensee under this
3170	part ss. 494.006-494.0077 for a noninstitutional investor, there
3171	shall be a written servicing agreement.
3172	(5)  The mortgage lender shall cause the original note to
3173	be properly endorsed showing the assignment of the note to the
3174	noninstitutional investor.
3175	Section 56.  Effective July 1, 2009, section 494.0077,
3176	Florida Statutes, is amended to read:
3177	494.0077  Other products and services.--This part does
3178	Sections 494.006-494.0077 do not prohibit a mortgage lender from
3179	offering, for a fee or commission, products and services in
3180	addition to those offered in conjunction with making a mortgage
3181	loan.
3182	Section 57.  Effective July 1, 2009, subsection (2) of
3183	section 501.1377, Florida Statutes, is amended to read:
3184	501.1377  Violations involving homeowners during the course
3185	of residential foreclosure proceedings.--
3186	(2)  DEFINITIONS.--As used in this section, the term:
3187	(a)  "Equity purchaser" means a any person who acquires a
3188	legal, equitable, or beneficial ownership interest in any
3189	residential real property as a result of a foreclosure-rescue
3190	transaction. The term does not apply to a person who acquires
3191	the legal, equitable, or beneficial interest in such property:
3192	1.  By a certificate of title from a foreclosure sale
3193	conducted under chapter 45;
3194	2.  At a sale of property authorized by statute;
3195	3.  By order or judgment of any court;
3196	4.  From a spouse, parent, grandparent, child, grandchild,
3197	or sibling of the person or the person's spouse; or
3198	5.  As a deed in lieu of foreclosure, a workout agreement,
3199	a bankruptcy plan, or any other agreement between a foreclosing
3200	lender and a homeowner.
3201	(b)  "Foreclosure-rescue consultant" means a person who
3202	directly or indirectly makes a solicitation, representation, or
3203	offer to a homeowner to provide or perform, in return for
3204	payment of money or other valuable consideration, foreclosure-
3205	related rescue services. The term does not apply to:
3206	1.  A person excluded under s. 501.212.
3207	2.  A person acting under the express authority or written
3208	approval of the United States Department of Housing and Urban
3209	Development or other department or agency of the United States
3210	or this state to provide foreclosure-related rescue services.
3211	3.  A charitable, not-for-profit agency or organization, as
3212	determined by the United States Internal Revenue Service under
3213	s. 501(c)(3) of the Internal Revenue Code, which offers
3214	counseling or advice to an owner of residential real property in
3215	foreclosure or loan default if the agency or organization does
3216	not contract for foreclosure-related rescue services with a for-
3217	profit lender or person facilitating or engaging in foreclosure-
3218	rescue transactions.
3219	4.  A person who holds or is owed an obligation secured by
3220	a lien on any residential real property in foreclosure if the
3221	person performs foreclosure-related rescue services in
3222	connection with this obligation or lien and the obligation or
3223	lien was not the result of or part of a proposed foreclosure
3224	reconveyance or foreclosure-rescue transaction.
3225	5.  A financial institution as defined in s. 655.005 and
3226	any parent or subsidiary of the financial institution or of the
3227	parent or subsidiary.
3228	6.  A licensed mortgage broker, mortgage lender, or
3229	correspondent mortgage lender that provides mortgage counseling
3230	or advice regarding residential real property in foreclosure,
3231	which counseling or advice is within the scope of services set
3232	forth in chapter 494 and is provided without payment of money or
3233	other consideration other than a mortgage brokerage fee as
3234	defined in s. 494.001.
3235	7.  An attorney licensed to practice law in this state who
3236	provides foreclosure rescue-related services as an ancillary
3237	matter to the attorney's representation of a homeowner as a
3238	client.
3239	(c)  "Foreclosure-related rescue services" means any good
3240	or service related to, or promising assistance in connection
3241	with:
3242	1.  Stopping, avoiding, or delaying foreclosure proceedings
3243	concerning residential real property; or
3244	2.  Curing or otherwise addressing a default or failure to
3245	timely pay with respect to a residential mortgage loan
3246	obligation.
3247	(d)  "Foreclosure-rescue transaction" means a transaction:
3248	1.  By which residential real property in foreclosure is
3249	conveyed to an equity purchaser and the homeowner maintains a
3250	legal or equitable interest in the residential real property
3251	conveyed, including, without limitation, a lease option
3252	interest, an option to acquire the property, an interest as
3253	beneficiary or trustee to a land trust, or other interest in the
3254	property conveyed; and
3255	2.  That is designed or intended by the parties to stop,
3256	avoid, or delay foreclosure proceedings against a homeowner's
3257	residential real property.
3258	(e)  "Homeowner" means the any record title owner of
3259	residential real property that is the subject of foreclosure
3260	proceedings.
3261	(f)  "Residential real property" means real property
3262	consisting of one-family to four-family dwelling units, one of
3263	which is occupied by the owner as his or her principal place of
3264	residence.
3265	(g)  "Residential real property in foreclosure" means
3266	residential real property against which there is an outstanding
3267	notice of the pendency of foreclosure proceedings recorded
3268	pursuant to s. 48.23.
3269	Section 58.  Paragraph (b) of subsection (2) of section
3270	501.1377, Florida Statutes, as amended by this act, is amended
3271	to read:
3272	501.1377  Violations involving homeowners during the course
3273	of residential foreclosure proceedings.--
3274	(2)  DEFINITIONS.--As used in this section, the term:
3275	(b)  "Foreclosure-rescue consultant" means a person who
3276	directly or indirectly makes a solicitation, representation, or
3277	offer to a homeowner to provide or perform, in return for
3278	payment of money or other valuable consideration, foreclosure-
3279	related rescue services. The term does not apply to:
3280	1.  A person excluded under s. 501.212.
3281	2.  A person acting under the express authority or written
3282	approval of the United States Department of Housing and Urban
3283	Development or other department or agency of the United States
3284	or this state to provide foreclosure-related rescue services.
3285	3.  A charitable, not-for-profit agency or organization, as
3286	determined by the United States Internal Revenue Service under
3287	s. 501(c)(3) of the Internal Revenue Code, which offers
3288	counseling or advice to an owner of residential real property in
3289	foreclosure or loan default if the agency or organization does
3290	not contract for foreclosure-related rescue services with a for-
3291	profit lender or person facilitating or engaging in foreclosure-
3292	rescue transactions.
3293	4.  A person who holds or is owed an obligation secured by
3294	a lien on any residential real property in foreclosure if the
3295	person performs foreclosure-related rescue services in
3296	connection with this obligation or lien and the obligation or
3297	lien was not the result of or part of a proposed foreclosure
3298	reconveyance or foreclosure-rescue transaction.
3299	5.  A financial institution as defined in s. 655.005 and
3300	any parent or subsidiary of the financial institution or of the
3301	parent or subsidiary.
3302	6.  A licensed mortgage broker, mortgage lender, or
3303	correspondent mortgage lender that provides mortgage counseling
3304	or advice regarding residential real property in foreclosure,
3305	which counseling or advice is within the scope of services set
3306	forth in chapter 494 and is provided without payment of money or
3307	other consideration other than a mortgage broker brokerage fee
3308	as defined in s. 494.001.
3309	7.  A licensed attorney who negotiates the terms of a
3310	mortgage loan on behalf of a client as an ancillary matter to
3311	the attorney's representation of the client.
3312	Section 59.  Paragraph (c) of subsection (1) of section
3313	201.23, Florida Statutes, is amended to read:
3314	201.23  Foreign notes and other written obligations
3315	exempt.--
3316	(1)  There shall be exempt from all excise taxes imposed by
3317	this chapter:
3318	(c)  Any promissory note, nonnegotiable note, or other
3319	written obligation to pay money if said note or obligation is
3320	executed and delivered outside this state and at the time of its
3321	making is secured only by a mortgage, deed of trust, or similar
3322	security agreement encumbering real estate located outside this
3323	state and if such promissory note, nonnegotiable note, or other
3324	written obligation for payment of money is brought into this
3325	state for deposit as collateral security under a wholesale
3326	warehouse mortgage agreement or for inclusion in a pool of
3327	mortgages deposited with a custodian as security for obligations
3328	issued by an agency of the United States Government or for
3329	inclusion in a pool of mortgages to be serviced for the account
3330	of a customer by a mortgage lender licensed or exempt from
3331	licensing under part III of chapter 494 ss. 494.006-494.0077.
3332	Section 60.  Paragraph (a) of subsection (21) of section
3333	420.507, Florida Statutes, is amended to read:
3334	420.507  Powers of the corporation.--The corporation shall
3335	have all the powers necessary or convenient to carry out and
3336	effectuate the purposes and provisions of this part, including
3337	the following powers which are in addition to all other powers
3338	granted by other provisions of this part:
3339	(21)  Review all reverse mortgage provisions proposed to be
3340	used by an individual lender or a consortium to determine that
3341	such provisions are consistent with the purposes and intent of
3342	this act. If the corporation finds that the provisions are
3343	consistent, it shall approve those provisions. If the
3344	corporation finds that the provisions are inconsistent, it shall
3345	state its objections and give the parties an opportunity to
3346	amend the provisions to overcome such objections. In approving
3347	these provisions, the corporation must determine:
3348	(a)  That the mortgagee is either licensed pursuant to part
3349	II of chapter 494 ss. 494.006-494.0077 or specifically exempt
3350	from part III of chapter 494 ss. 494.006-494.0077.
3351	Section 61.  Paragraph (a) of subsection (1) of section
3352	494.0076, Florida Statutes, is amended to read:
3353	494.0076  Servicing audits.--
3354	(1)(a)  Each licensee under part III of chapter ss.
3355	494.006-494.0077 which services mortgage loans shall:
3356	1.  Maintain a segregated set of records for accounts that
3357	are serviced by the licensee.
3358	2.  Have a separate, segregated depository account for all
3359	receipts relating to servicing.
3360	Section 62.  Subsection (1) of section 520.52, Florida
3361	Statutes, is amended to read:
3362	520.52  Licensees.--
3363	(1)  A person may not engage in the business of a sales
3364	finance company or operate a branch of such business without a
3365	license as provided in this section; however, a bank, trust
3366	company, savings and loan association, or credit union
3367	authorized to do business in this state is not required to
3368	obtain a license under this part. Any person authorized as a
3369	licensee or registrant pursuant to part III of chapter 494 ss.
3370	494.006-494.0077 is not required to obtain a license under this
3371	part in order to become an assignee of a home improvement
3372	finance seller.
3373	Section 63.  Subsection (1) of section 520.63, Florida
3374	Statutes, is amended to read:
3375	520.63  Licensees.--
3376	(1)  A person may not engage in or transact any business as
3377	a home improvement finance seller or operate a branch without
3378	first obtaining a license from the office, except that a banking
3379	institution, trust company, savings and loan association, credit
3380	union authorized to do business in this state, or licensee under
3381	part III of chapter 494 ss. 494.006-494.0077 is not required to
3382	obtain a license to engage in home improvement financing.
3383	Section 64.  Paragraph (b) of subsection (11) of section
3384	607.0505, Florida Statutes, is amended to read:
3385	607.0505  Registered agent; duties.--
3386	(11)  As used in this section, the term:
3387	(b)  "Financial institution" means:
3388	1.  A bank, banking organization, or savings association,
3389	as defined in s. 220.62;
3390	2.  An insurance company, trust company, credit union, or
3391	industrial savings bank, any of which is licensed or regulated
3392	by an agency of the United States or any state of the United
3393	States; or
3394	3.  Any person licensed under part III of chapter 494 the
3395	provisions of ss. 494.006-494.0077.
3396	Section 65.  Subsection (1) of section 687.12, Florida
3397	Statutes, is amended to read:
3398	687.12  Interest rates; parity among licensed lenders or
3399	creditors.--
3400	(1)  Any lender or creditor licensed or chartered under the
3401	provisions of chapter 516, chapter 520, chapter 657, chapter 658
3402	or former chapter 659, former chapter 664 or former chapter 656,
3403	chapter 665, or part XV of chapter 627; any lender or creditor
3404	located in the State of Florida and licensed or chartered under
3405	the laws of the United States and authorized to conduct a
3406	lending business; or any lender or creditor lending through a
3407	licensee under part III of chapter 494 ss. 494.006-494.0077,
3408	shall be authorized to charge interest on loans or extensions of
3409	credit to any person as defined in s. 1.01(3), or to any firm or
3410	corporation, at the maximum rate of interest permitted by law to
3411	be charged on similar loans or extensions of credit made by any
3412	lender or creditor in the State of Florida, except that the
3413	statutes governing the maximum permissible interest rate on any
3414	loan or extension of credit, and other statutory restrictions
3415	relating thereto, shall also govern the amount, term,
3416	permissible charges, rebate requirements, and restrictions for a
3417	similar loan or extension of credit made by any lender or
3418	creditor.
3419	Section 66.  Effective September 1, 2010:
3420	(1)  All mortgage business school permits issued pursuant
3421	to s. 494.0029, Florida Statutes, expire on September 30, 2010.
3422	(2)  All mortgage brokerage business licenses issued before
3423	October 1, 2010, pursuant to s. 494.0031 or s. 494.0032, Florida
3424	Statutes, expire on December 31, 2010. However, if a person
3425	holding an active mortgage brokerage business license issued
3426	before October 1, 2010, applies for a mortgage broker license
3427	through the Nationwide Mortgage Licensing System and Registry
3428	between October 1, 2010, and December 31, 2010, the mortgage
3429	brokerage business license does not expire until the Office of
3430	Financial Regulation approves or denies the mortgage broker
3431	license application. A mortgage broker license approved on or
3432	after October 1, 2010, is effective until December 31, 2011.
3433	Application fees may not be prorated for partial years of
3434	licensure.
3435	(3)  All mortgage broker licenses issued before October 1,
3436	2010, pursuant to s. 494.0033 or s. 494.0034, Florida Statutes,
3437	expire on December 31, 2010. However, if a person holding an
3438	active mortgage broker license issued before October 1, 2010,
3439	applies for a loan originator license through the Nationwide
3440	Mortgage Licensing System and Registry between October 1, 2010,
3441	and December 31, 2010, the mortgage broker license does not
3442	expire until the Office of Financial Regulation approves or
3443	denies the loan originator license application. Notwithstanding
3444	s. 120.60, Florida Statutes, for mortgage broker applications
3445	submitted between July 1, 2009, and December 31, 2009, or loan
3446	originator applications submitted between October 1, 2010, and
3447	December 31, 2010, the office has 60 days to notify the
3448	applicant of any apparent errors or omissions in an application
3449	and to request any additional information that the Office of
3450	Financial Regulation may require, and the office has 180 days to
3451	approve or deny a completed application. Application fees may
3452	not be prorated for partial years of licensure.
3453	(4)  All mortgage lender licenses issued before October 1,
3454	2010, pursuant to s. 494.0061 or s. 494.0064, Florida Statutes,
3455	expire on December 31, 2010. However, if a person holding an
3456	active mortgage lender license applies for a mortgage broker
3457	license or mortgage lender license through the Nationwide
3458	Mortgage Licensing System and Registry between October 1, 2010,
3459	and December 31, 2010, the mortgage lender license does not
3460	expire until the Office of Financial Regulation approves or
3461	denies the mortgage broker license or mortgage lender license
3462	application. Application fees may not be prorated for partial
3463	years of licensure.
3464	(5)  All mortgage lender licenses issued before October 1,
3465	2010, pursuant to s. 494.0065 or s. 494.0064, Florida Statutes,
3466	expire on December 31, 2010. However, if a person holding such
3467	license applies for a mortgage broker license or mortgage lender
3468	license through the Nationwide Mortgage Licensing System and
3469	Registry between October 1, 2010, and December 31, 2010, the
3470	mortgage lender license does not expire until the Office of
3471	Financial Regulation approves or denies the mortgage broker
3472	license or mortgage lender license application. Application fees
3473	may not be prorated for partial years of licensure.
3474	(6)  All correspondent mortgage lender licenses issued
3475	before October 1, 2010, pursuant to s. 494.0062 or s. 494.0064,
3476	Florida Statutes, expire on December 31, 2010. However, if a
3477	person holding an active correspondent mortgage lender license
3478	issued before October 1, 2010, applies for a mortgage broker or
3479	mortgage lender license through the Nationwide Mortgage
3480	Licensing System and Registry between October 1, 2010, and
3481	December 31, 2010, the correspondent mortgage lender license
3482	does not expire until the Office of Financial Regulation
3483	approves or denies the mortgage broker or mortgage lender
3484	license application. Application fees may not be prorated for
3485	partial years of licensure.
3486	Section 67.  Except as otherwise expressly provided in this
3487	act and except for this section, which shall take effect July 1,
3488	2009, this act shall take effect October 1, 2010.

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