| 1 | A bill to be entitled |
| 2 | An act relating to loan processing; amending s. 494.001, |
| 3 | F.S.; creating and revising definitions; deleting a |
| 4 | redundant definition; amending s. 494.0011, F.S.; |
| 5 | specifying rulemaking powers of the Financial Services |
| 6 | Commission; amending s. 494.0018, F.S.; revising cross- |
| 7 | references; amending s. 494.0025, F.S.; prohibiting acting |
| 8 | as an in-house loan processor without a specified license; |
| 9 | amending s. 494.00255, F.S.; including licensed in-house |
| 10 | loan processors in disciplinary provisions; amending s. |
| 11 | 494.00312, F.S.; providing that a loan originator license |
| 12 | may not be issued to a person who has had an in-house loan |
| 13 | processor license or its equivalent revoked in any |
| 14 | jurisdiction; creating s. 494.00314, F.S.; providing for |
| 15 | licensing of in-house loan processors; providing |
| 16 | application requirements; specifying when an application |
| 17 | is considered received; providing grounds for denial of |
| 18 | licensure; prohibiting issuance of licenses to applicants |
| 19 | who have had certain licenses revoked in other |
| 20 | jurisdictions; providing for annulment of licenses in |
| 21 | certain circumstances; requiring annual renewal of |
| 22 | licenses; prohibiting an in-house loan processor from |
| 23 | acting as a loan originator without a loan originator |
| 24 | license; authorizing a licensed loan originator to act as |
| 25 | an in-house loan processor without an in-house loan |
| 26 | processor license; creating s. 494.00315, F.S.; providing |
| 27 | for license renewals; amending s. 494.00331, F.S.; |
| 28 | providing that specified provisions do not apply to a |
| 29 | licensed contract loan processor who has on file with the |
| 30 | office a declaration of intent to act solely as a contract |
| 31 | loan processor; deleting a definition; providing |
| 32 | restrictions on employment of persons licensed as in-house |
| 33 | loan processors; amending s. 494.0035, F.S.; clarifying |
| 34 | provisions concerning operation of mortgage brokers; |
| 35 | amending s. 494.0038, F.S.; revising provisions relating |
| 36 | to disclosure of settlement charges and loan terms; |
| 37 | amending s. 494.00421, F.S.; revising an agency reference |
| 38 | in the mortgage broker agreement; providing that a |
| 39 | borrower may contact the Office of Financial Regulation |
| 40 | rather than the Department of Financial Services regarding |
| 41 | any complaints against a loan originator; amending s. |
| 42 | 494.00611, F.S.; providing that a mortgage lender license |
| 43 | may not be issued to an applicant if any of the |
| 44 | applicant's control persons has ever had an in-house loan |
| 45 | processor license or its equivalent revoked in any |
| 46 | jurisdiction; amending s. 494.00612, F.S.; requiring that |
| 47 | in order to renew a mortgage lender license a mortgage |
| 48 | lender must authorize the Nationwide Mortgage Licensing |
| 49 | System and Registry to obtain an independent credit report |
| 50 | on each of the mortgage lender's control persons; amending |
| 51 | s. 494.0067, F.S.; requiring each mortgage lender to |
| 52 | submit certain reports to the registry as may be required; |
| 53 | providing an effective date. |
| 54 |
|
| 55 | Be It Enacted by the Legislature of the State of Florida: |
| 56 |
|
| 57 | Section 1. Subsections (5) through (9), (10) through (14), |
| 58 | (15) through (24), and (26) through (34) of section 494.001, |
| 59 | Florida Statutes, are renumbered as subsections (6) through |
| 60 | (10), (12) through (16), (18) through (27), and (28) through |
| 61 | (36), respectively, new subsections (5), (11), and (17) are |
| 62 | added to that section, and present subsections (14), (25), and |
| 63 | (26) of that section are amended, to read: |
| 64 | 494.001 Definitions.-As used in ss. 494.001-494.0077, the |
| 65 | term: |
| 66 | (5) "Contract loan processor" means an individual who is |
| 67 | licensed under part II of this chapter as a loan originator, who |
| 68 | is an independent contractor for a mortgage broker or mortgage |
| 69 | lender, and who engages only in loan processing. |
| 70 | (11) "In-house loan processor" means an individual who is |
| 71 | an employee of a mortgage broker or a mortgage lender who |
| 72 | engages only in loan processing. |
| 73 | (16)(14) "Loan originator" means an individual who, |
| 74 | directly or indirectly, solicits or offers to solicit a mortgage |
| 75 | loan, accepts or offers to accept an application for a mortgage |
| 76 | loan, negotiates or offers to negotiate the terms or conditions |
| 77 | of a new or existing mortgage loan on behalf of a borrower or |
| 78 | lender, processes a mortgage loan application, or negotiates or |
| 79 | offers to negotiate the sale of an existing mortgage loan to a |
| 80 | noninstitutional investor for compensation or gain. The term |
| 81 | includes an individual who is required to be licensed as a loan |
| 82 | originator under the activities of a loan originator as that |
| 83 | term is defined in the S.A.F.E. Mortgage Licensing Act of 2008, |
| 84 | and an individual acting as a loan originator pursuant to that |
| 85 | definition is acting as a loan originator for purposes of this |
| 86 | definition. The term does not include an employee of a mortgage |
| 87 | broker or mortgage lender whose duties are limited to who |
| 88 | performs only administrative or clerical tasks, including |
| 89 | quoting available interest rates, physically handling a |
| 90 | completed application form, or transmitting a completed |
| 91 | application form to a lender on behalf of a prospective |
| 92 | borrower. |
| 93 | (17) "Loan processing" means: |
| 94 | (a) Receiving, collecting, distributing, and analyzing |
| 95 | information common for the processing of a mortgage loan; or |
| 96 | (b) Communicating with a consumer to obtain information |
| 97 | necessary for the processing of a mortgage loan, if such |
| 98 | communication does not include offering or negotiating loan |
| 99 | rates or terms, or counseling consumers about residential |
| 100 | mortgage loan rates or terms. |
| 101 | (25) "Person" has the same meaning as in s. 1.01. |
| 102 | (28)(26) "Principal loan originator" means the licensed |
| 103 | loan originator in charge of, and responsible for, the operation |
| 104 | of a mortgage lender or mortgage broker, including all of the |
| 105 | activities of the mortgage lender's or mortgage broker's loan |
| 106 | originators, in-house loan processors, and branch managers, |
| 107 | whether employees or independent contractors. |
| 108 | Section 2. Subsection (2) of section 494.0011, Florida |
| 109 | Statutes, is amended to read: |
| 110 | 494.0011 Powers and duties of the commission and office.- |
| 111 | (2) To administer ss. 494.001-494.0077, The commission may |
| 112 | adopt rules to administer parts I, II, and III of this chapter, |
| 113 | including rules: |
| 114 | (a) Requiring electronic submission of any forms, |
| 115 | documents, or fees required by this act. |
| 116 | (b) Relating to compliance with the S.A.F.E. Mortgage |
| 117 | Licensing Act of 2008, including rules to: |
| 118 | 1. Require in-house loan processors, loan originators, |
| 119 | mortgage brokers, mortgage lenders, and branch offices to |
| 120 | register through the registry. |
| 121 | 2. Require the use of uniform forms that have been |
| 122 | approved by the registry, and any subsequent amendments to such |
| 123 | forms if the forms are substantially in compliance with the |
| 124 | provisions of this chapter. Uniform forms that the commission |
| 125 | may adopt include, but are not limited to: |
| 126 | a. Uniform Mortgage Lender/Mortgage Broker Form, MU1. |
| 127 | b. Uniform Mortgage Biographical Statement & Consent Form, |
| 128 | MU2. |
| 129 | c. Uniform Mortgage Branch Office Form, MU3. |
| 130 | d. Uniform Individual Mortgage License/Registration & |
| 131 | Consent Form, MU4. |
| 132 | 3. Require the filing of forms, documents, and fees in |
| 133 | accordance with the requirements of the registry. |
| 134 | 4. Prescribe requirements for amending or surrendering a |
| 135 | license or other activities as the commission deems necessary |
| 136 | for the office's participation in the registry. |
| 137 | 5. Prescribe procedures that allow a licensee to challenge |
| 138 | information contained in the registry. |
| 139 | 6. Prescribe procedures for reporting violations of this |
| 140 | chapter and disciplinary actions on licensees to the registry. |
| 141 | (c) Establishing time periods during which an in-house |
| 142 | loan processor, a loan originator, a mortgage broker, or a |
| 143 | mortgage lender license applicant under part II or part III is |
| 144 | barred from licensure due to prior criminal convictions of, or |
| 145 | guilty or nolo contendere pleas by, any of the applicant's |
| 146 | control persons, regardless of adjudication. |
| 147 | 1. The rules must provide: |
| 148 | a. Permanent bars for felonies involving fraud, |
| 149 | dishonesty, breach of trust, or money laundering; |
| 150 | b. A 15-year disqualifying period for felonies involving |
| 151 | moral turpitude; |
| 152 | c. A 7-year disqualifying period for all other felonies; |
| 153 | and |
| 154 | d. A 5-year disqualifying period for misdemeanors |
| 155 | involving fraud, dishonesty, or any other act of moral |
| 156 | turpitude. |
| 157 | 2. The rules may provide for an additional waiting period |
| 158 | due to dates of imprisonment or community supervision, the |
| 159 | commitment of multiple crimes, and other factors reasonably |
| 160 | related to the applicant's criminal history. |
| 161 | 3. The rules may provide for mitigating factors for crimes |
| 162 | identified in sub-subparagraph 1.b. However, the mitigation may |
| 163 | not result in a period of disqualification less than 7 years. |
| 164 | The rule may not mitigate the disqualifying periods in sub- |
| 165 | subparagraphs 1.a., 1.c., and 1.d. |
| 166 | 4. An applicant is not eligible for licensure until the |
| 167 | expiration of the disqualifying period set by rule. |
| 168 | 5. Section 112.011 is not applicable to eligibility for |
| 169 | licensure under this part. |
| 170 | Section 3. Subsection (1) of section 494.0018, Florida |
| 171 | Statutes, is amended to read: |
| 172 | 494.0018 Penalties.- |
| 173 | (1) Whoever knowingly violates any provision of s. |
| 174 | 494.00255(1)(a), (b), or (c) or s. 494.0025(1), (3)(2), (4)(3), |
| 175 | (5)(4), or (6)(5), except as provided in subsection (2) of this |
| 176 | section, commits a felony of the third degree, punishable as |
| 177 | provided in s. 775.082, s. 775.083, or s. 775.084. Each such |
| 178 | violation constitutes a separate offense. |
| 179 | Section 4. Subsections (2) through (10) of section |
| 180 | 494.0025, Florida Statutes, are renumbered as subsections (3) |
| 181 | through (11), respectively, and a new subsection (2) is added to |
| 182 | that section to read: |
| 183 | 494.0025 Prohibited practices.-It is unlawful for any |
| 184 | person: |
| 185 | (2) To act as an in-house loan processor in this state |
| 186 | without a current, active in-house loan processor license issued |
| 187 | by the office pursuant to part II of this chapter. |
| 188 | Section 5. Paragraphs (n) and (p) of subsection (1), |
| 189 | paragraph (f) of subsection (2), and subsections (3), (4), (5), |
| 190 | (6), and (8) of section 494.00255, Florida Statutes, are |
| 191 | amended, and paragraph (m) of subsection (1) is reenacted, to |
| 192 | read: |
| 193 | 494.00255 Administrative penalties and fines; license |
| 194 | violations.- |
| 195 | (1) Each of the following acts constitutes a ground for |
| 196 | which the disciplinary actions specified in subsection (2) may |
| 197 | be taken against a person licensed or required to be licensed |
| 198 | under part II or part III of this chapter: |
| 199 | (m) In any mortgage transaction, violating any provision |
| 200 | of the federal Real Estate Settlement Procedures Act, as |
| 201 | amended, 12 U.S.C. ss. 2601 et seq.; the federal Truth in |
| 202 | Lending Act, as amended, 15 U.S.C. ss. 1601 et seq.; or any |
| 203 | regulations adopted under such acts. |
| 204 | (n) Having a loan originator, an in-house loan processor, |
| 205 | a mortgage broker, or a mortgage lender license, or the |
| 206 | equivalent of such license, revoked in any jurisdiction. |
| 207 | (p) Acting as a loan originator, an in-house loan |
| 208 | processor, a mortgage broker, or a mortgage lender without a |
| 209 | current license issued under part II or part III of this |
| 210 | chapter. |
| 211 | (2) If the office finds a person in violation of any act |
| 212 | specified in this section, it may enter an order imposing one or |
| 213 | more of the following penalties: |
| 214 | (f) An administrative fine of up to $1,000 per day, but |
| 215 | not to exceed $25,000 cumulatively, for each day that: |
| 216 | 1. A mortgage broker or mortgage lender conducts business |
| 217 | at an unlicensed branch office. |
| 218 | 2. An unlicensed person acts as a loan originator, an in- |
| 219 | house loan processor, a mortgage broker, or a mortgage lender. |
| 220 | (3) A mortgage broker or mortgage lender, as applicable, |
| 221 | is subject to the disciplinary actions specified in subsection |
| 222 | (2) for a violation of subsection (1) by: |
| 223 | (a) A control person of the mortgage broker or mortgage |
| 224 | lender; or |
| 225 | (b) A loan originator employed by or contracting with the |
| 226 | mortgage broker or mortgage lender; or |
| 227 | (c) An in-house loan processor who is an employee of the |
| 228 | mortgage broker or mortgage lender. |
| 229 | (4) A principal loan originator of a mortgage broker is |
| 230 | subject to the disciplinary actions specified in subsection (2) |
| 231 | for violations of subsection (1) by a loan originator or an in- |
| 232 | house loan processor in the course of an association with the |
| 233 | mortgage broker if there is a pattern of repeated violations by |
| 234 | the loan originator or in-house loan processor or if the |
| 235 | principal loan originator has knowledge of the violations. |
| 236 | (5) A principal loan originator of a mortgage lender is |
| 237 | subject to the disciplinary actions specified in subsection (2) |
| 238 | for violations of subsection (1) by a loan originator or an in- |
| 239 | house loan processor in the course of an association with a |
| 240 | mortgage lender if there is a pattern of repeated violations by |
| 241 | the loan originator or in-house loan processor or if the |
| 242 | principal loan originator has knowledge of the violations. |
| 243 | (6) A branch manager is subject to the disciplinary |
| 244 | actions specified in subsection (2) for violations of subsection |
| 245 | (1) by a loan originator or an in-house loan processor in the |
| 246 | course of an association with the mortgage broker or mortgage |
| 247 | lender if there is a pattern of repeated violations by the loan |
| 248 | originator or in-house loan processor or if the branch manager |
| 249 | has knowledge of the violations. |
| 250 | (8) Pursuant to s. 120.60(6), the office may summarily |
| 251 | suspend the license of a loan originator, an in-house loan |
| 252 | processor, a mortgage broker, or a mortgage lender if the office |
| 253 | has reason to believe that a licensee poses an immediate, |
| 254 | serious danger to the public's health, safety, or welfare. The |
| 255 | arrest of the licensee, or the mortgage broker or the mortgage |
| 256 | lender's control person, for any felony or any crime involving |
| 257 | fraud, dishonesty, breach of trust, money laundering, or any |
| 258 | other act of moral turpitude is deemed sufficient to constitute |
| 259 | an immediate danger to the public's health, safety, or welfare. |
| 260 | Any proceeding for the summary suspension of a license must be |
| 261 | conducted by the commissioner of the office, or designee, who |
| 262 | shall issue the final summary order. |
| 263 | Section 6. Subsection (5) of section 494.00312, Florida |
| 264 | Statutes, is amended to read: |
| 265 | 494.00312 Loan originator license.- |
| 266 | (5) The office may not issue a license to an applicant who |
| 267 | has had a loan originator or an in-house loan processor license |
| 268 | or its equivalent revoked in any jurisdiction. |
| 269 | Section 7. Section 494.00314, Florida Statutes, is created |
| 270 | to read: |
| 271 | 494.00314 In-house loan processor license.- |
| 272 | (1) An individual acting as an in-house loan processor |
| 273 | must be licensed under this section. |
| 274 | (2) In order to apply for an in-house loan processor |
| 275 | license, an applicant must: |
| 276 | (a) Be at least 18 years of age and have a high school |
| 277 | diploma or its equivalent. |
| 278 | (b) Submit a completed license application form as |
| 279 | prescribed by commission rule. |
| 280 | (c) Submit a nonrefundable application fee of $100. |
| 281 | Application fees may not be prorated for partial years of |
| 282 | licensure. |
| 283 | (d) Submit fingerprints in accordance with rules adopted |
| 284 | by the commission. |
| 285 | 1. The fingerprints must be submitted to a live-scan |
| 286 | vendor authorized by the Department of Law Enforcement. |
| 287 | 2. A state criminal history background check must be |
| 288 | conducted through the Department of Law Enforcement, and a |
| 289 | federal criminal history check must be conducted through the |
| 290 | Federal Bureau of Investigation. |
| 291 | 3. All fingerprints submitted to the Department of Law |
| 292 | Enforcement must be submitted electronically and entered into |
| 293 | the statewide automated fingerprint identification system |
| 294 | established in s. 943.05(2)(b) and available for use in |
| 295 | accordance with s. 943.05(2)(g) and (h). The office shall pay an |
| 296 | annual fee to the department to participate in the system and |
| 297 | inform the department of any person whose fingerprints are no |
| 298 | longer required to be retained. |
| 299 | 4. The costs of fingerprint processing, including the cost |
| 300 | of retaining fingerprints, shall be borne by the person subject |
| 301 | to the background check. |
| 302 | 5. The office is responsible for reviewing the results of |
| 303 | the state and federal criminal history checks and determining |
| 304 | whether the applicant meets licensure requirements. |
| 305 | (e) Submit additional information or documentation |
| 306 | requested by the office and required by rule concerning the |
| 307 | applicant. Additional information may include documentation of |
| 308 | pending or prior disciplinary or criminal history events, |
| 309 | including arrest reports and certified copies of charging |
| 310 | documents, plea agreements, judgments and sentencing documents, |
| 311 | documents relating to pretrial intervention, orders terminating |
| 312 | probation or supervised release, final administrative agency |
| 313 | orders, or other comparable documents that may provide the |
| 314 | office with the appropriate information to determine eligibility |
| 315 | for licensure. |
| 316 | (f) Submit any other information required by the registry |
| 317 | for processing the application. |
| 318 | (3) An application is considered received for the purposes |
| 319 | of s. 120.60 upon the office's receipt of all documentation from |
| 320 | the registry, including the completed application form, criminal |
| 321 | history information, and license application fee. |
| 322 | (4) The office shall issue an in-house loan processor |
| 323 | license to each person who is not otherwise ineligible and who |
| 324 | meets the requirements of this section. However, it is a ground |
| 325 | for denial of licensure if the applicant: |
| 326 | (a) Has committed any violation specified in ss. 494.001- |
| 327 | 494.0077; or |
| 328 | (b) Is the subject of a pending felony criminal |
| 329 | prosecution or a prosecution or an administrative enforcement |
| 330 | action in any jurisdiction which involves fraud, dishonesty, |
| 331 | breach of trust, money laundering, or any other act of moral |
| 332 | turpitude. |
| 333 | (5) The office may not issue a license to an applicant who |
| 334 | has had an in-house loan processor or loan originator license or |
| 335 | its equivalent revoked in any jurisdiction. |
| 336 | (6) An in-house loan processor license shall be annulled |
| 337 | pursuant to s. 120.60 if it was issued by the office by mistake. |
| 338 | A license must be reinstated if the applicant demonstrates that |
| 339 | the requirements for obtaining the license have been satisfied. |
| 340 | (7) All in-house loan processor licenses must be renewed |
| 341 | annually by December 31, pursuant to s. 494.00315. If a person |
| 342 | holding an active license has not applied to renew the license |
| 343 | on or before December 31, the license expires on December 31. If |
| 344 | a person holding an active license has applied to renew on or |
| 345 | before December 31, the license remains active until the renewal |
| 346 | application is approved or denied. An in-house loan processor is |
| 347 | not precluded from reapplying for licensure upon expiration of a |
| 348 | previous license. |
| 349 | (8) An in-house loan processor licensed under this section |
| 350 | may not act as a loan originator without a loan originator |
| 351 | license issued under this part. |
| 352 | (9) A loan originator licensed under this part may also |
| 353 | act as an in-house loan processor without an in-house loan |
| 354 | processor license. |
| 355 | Section 8. Section 494.00315, Florida Statutes, is created |
| 356 | to read: |
| 357 | 494.00315 In-house loan processor license renewal.-In |
| 358 | order to renew an in-house loan processor license, an in-house |
| 359 | loan processor must: |
| 360 | (1) Submit a completed license renewal form as prescribed |
| 361 | by commission rule. |
| 362 | (2) Submit a nonrefundable renewal fee of $75 and |
| 363 | nonrefundable fees to cover the costs of further fingerprint |
| 364 | processing and retention as set forth in commission rule. |
| 365 | (3) Submit any additional information or documentation |
| 366 | requested by the office and required by rule concerning the |
| 367 | licensee. Additional information may include documentation of |
| 368 | pending and prior disciplinary and criminal history events, |
| 369 | including arrest reports and certified copies of charging |
| 370 | documents, plea agreements, judgments and sentencing documents, |
| 371 | documents relating to pretrial intervention, orders terminating |
| 372 | probation or supervised release, final administrative agency |
| 373 | orders, or other comparable documents that may provide the |
| 374 | office with the appropriate information to determine eligibility |
| 375 | for renewal of licensure. |
| 376 | Section 9. Section 494.00331, Florida Statutes, is amended |
| 377 | to read: |
| 378 | 494.00331 Loan originator and loan processor employment.- |
| 379 | (1) LOAN ORIGINATORS.-An individual may not act as a loan |
| 380 | originator unless he or she is an employee of, or an independent |
| 381 | contractor for, a mortgage broker or a mortgage lender, and may |
| 382 | not be employed by or contract with more than one mortgage |
| 383 | broker or mortgage lender, or either simultaneously. |
| 384 | (2) CONTRACT LOAN PROCESSORS.-Subsection (1) However, this |
| 385 | provision does not apply to a contract loan processor who has a |
| 386 | declaration of intent to act solely as a contract loan processor |
| 387 | on file with the office. The declaration of intent must be on a |
| 388 | form as prescribed by commission rule any licensed loan |
| 389 | originator who acts solely as a loan processor and contracts |
| 390 | with more than one mortgage broker or mortgage lender, or either |
| 391 | simultaneously. |
| 392 | (2) For purposes of this section, the term "loan |
| 393 | processor" means an individual who is licensed as a loan |
| 394 | originator who engages only in: |
| 395 | (a) The receipt, collection, distribution, and analysis of |
| 396 | information common for the processing or underwriting of a |
| 397 | residential mortgage loan; or |
| 398 | (b) Communication with consumers to obtain the information |
| 399 | necessary for the processing or underwriting of a loan, to the |
| 400 | extent that such communication does not include offering or |
| 401 | negotiating loan rates or terms or does not include counseling |
| 402 | consumers about residential mortgage loan rates or terms. |
| 403 | (3) A person may not act as a loan processor unless the |
| 404 | person is licensed as a loan originator under this chapter and |
| 405 | has on file with the office a declaration of intent to engage |
| 406 | solely in loan processing. The declaration of intent must be on |
| 407 | such form as prescribed by the commission by rule. |
| 408 | (a)(4) A loan originator that currently has a declaration |
| 409 | of intent to engage solely in loan processing on file with the |
| 410 | office may withdraw his or her declaration of intent to engage |
| 411 | solely in loan processing. The withdrawal of declaration of |
| 412 | intent must be on such form as prescribed by commission rule. |
| 413 | (b)(5) A declaration of intent or a withdrawal of |
| 414 | declaration of intent is effective upon receipt by the office. |
| 415 | (c)(6) The fee earned by a contract loan processor may be |
| 416 | paid to the company that employs the loan processor without |
| 417 | violating the restriction in s. 494.0025(8)(7) requiring fees or |
| 418 | commissions to be paid to a licensed mortgage broker or mortgage |
| 419 | lender or a person exempt from licensure under this chapter. |
| 420 | (3) IN-HOUSE LOAN PROCESSORS.-An individual may not act as |
| 421 | an in-house loan processor unless he or she is an employee of a |
| 422 | mortgage broker or a mortgage lender and may not be employed by |
| 423 | more than one mortgage broker or mortgage lender, or either, |
| 424 | simultaneously. An in-house loan processor must work at the |
| 425 | direction of and be subject to the supervision and instruction |
| 426 | of a loan originator licensed under this part. |
| 427 | Section 10. Subsection (1) of section 494.0035, Florida |
| 428 | Statutes, is amended to read: |
| 429 | 494.0035 Principal loan originator and branch manager for |
| 430 | mortgage broker.- |
| 431 | (1) Each mortgage broker must be operated by a principal |
| 432 | loan originator who shall have full charge, control, and |
| 433 | supervision of the mortgage broker business. The principal loan |
| 434 | originator must have been licensed as a loan originator for at |
| 435 | least 1 year before being designated as the principal loan |
| 436 | originator, or must demonstrate to the satisfaction of the |
| 437 | office that he or she has been actively engaged in a mortgage- |
| 438 | related mortgage broker-related business for at least 1 year |
| 439 | before being designated as a principal loan originator. Each |
| 440 | mortgage broker must keep the office informed of the person |
| 441 | designated as the principal loan originator as prescribed by |
| 442 | commission rule. If the designation is inaccurate, the mortgage |
| 443 | broker business shall be deemed to be operated under the full |
| 444 | charge, control, and supervision of each officer, director, or |
| 445 | ultimate equitable owner of a 10-percent or greater interest in |
| 446 | the mortgage broker, or any other person in a similar capacity. |
| 447 | A loan originator may not be a principal loan originator for |
| 448 | more than one mortgage broker at any given time. |
| 449 | Section 11. Paragraph (c) of subsection (3) of section |
| 450 | 494.0038, Florida Statutes, is amended to read: |
| 451 | 494.0038 Loan origination and mortgage broker fees and |
| 452 | disclosures.- |
| 453 | (3) At the time a written mortgage broker agreement is |
| 454 | signed by the borrower or forwarded to the borrower for |
| 455 | signature, or at the time the mortgage broker business accepts |
| 456 | an application fee, credit report fee, property appraisal fee, |
| 457 | or any other third-party fee, but at least 3 business days |
| 458 | before execution of the closing or settlement statement, the |
| 459 | mortgage broker shall disclose in writing to any applicant for a |
| 460 | mortgage loan the following information: |
| 461 | (c) A good faith estimate that discloses settlement |
| 462 | charges and loan terms, signed and dated by the borrower, which |
| 463 | discloses the total amount of each of the fees the borrower may |
| 464 | reasonably expect to pay if the loan is closed, including, but |
| 465 | not limited to, fees earned by the mortgage broker, lender fees, |
| 466 | third-party fees, and official fees, together with the terms and |
| 467 | conditions for obtaining a refund of such fees, if any. |
| 468 | 1. Any amount collected in excess of the actual cost shall |
| 469 | be returned within 60 days after rejection, withdrawal, or |
| 470 | closing. |
| 471 | 2. At the time a good faith estimate is provided to the |
| 472 | borrower, the loan originator must identify in writing an |
| 473 | itemized list that provides the recipient of all payments |
| 474 | charged the borrower, which, except for all fees to be received |
| 475 | by the mortgage broker, may be disclosed in generic terms, such |
| 476 | as, but not limited to, paid to lender, appraiser, officials, |
| 477 | title company, or any other third-party service provider. This |
| 478 | requirement does not supplant or is not a substitute for the |
| 479 | written mortgage broker agreement described in subsection (1). |
| 480 | The disclosure required under this subparagraph must be signed |
| 481 | and dated by the borrower. |
| 482 | Section 12. Paragraph (a) of subsection (7) of section |
| 483 | 494.00421, Florida Statutes, is amended to read: |
| 484 | 494.00421 Fees earned upon obtaining a bona fide |
| 485 | commitment.-Notwithstanding the provisions of ss. 494.001- |
| 486 | 494.0077, any mortgage broker which contracts to receive a loan |
| 487 | origination fee from a borrower upon obtaining a bona fide |
| 488 | commitment shall accurately disclose in the mortgage broker |
| 489 | agreement: |
| 490 | (7)(a) The following statement, in at least 12-point |
| 491 | boldface type immediately above the signature lines for the |
| 492 | borrowers: |
| 493 | "You are entering into a contract with a mortgage broker to |
| 494 | obtain a bona fide mortgage loan commitment under the same terms |
| 495 | and conditions as stated hereinabove or in a separate executed |
| 496 | good faith estimate form. If the mortgage broker obtains a bona |
| 497 | fide commitment under the same terms and conditions, you will be |
| 498 | obligated to pay the loan origination fees even if you choose |
| 499 | not to complete the loan transaction. If the provisions of s. |
| 500 | 494.00421, Florida Statutes, are not met, the loan origination |
| 501 | fee can only be earned upon the funding of the mortgage loan. |
| 502 | The borrower may contact the Office of Financial Regulation |
| 503 | Department of Financial Services, Tallahassee, Florida, |
| 504 | regarding any complaints that the borrower may have against the |
| 505 | loan originator. The telephone number of the office department |
| 506 | is: ...(insert telephone number)...." |
| 507 | Section 13. Subsection (5) of section 494.00611, Florida |
| 508 | Statutes, is amended to read: |
| 509 | 494.00611 Mortgage lender license.- |
| 510 | (5) The office may not issue a license if the applicant |
| 511 | has had a mortgage lender license or its equivalent revoked in |
| 512 | any jurisdiction, or any of the applicant's control persons has |
| 513 | ever had a loan originator or an in-house loan processor license |
| 514 | or its equivalent revoked in any jurisdiction. |
| 515 | Section 14. Paragraph (e) of subsection (1) of section |
| 516 | 494.00612, Florida Statutes, is amended to read: |
| 517 | 494.00612 Mortgage lender license renewal.- |
| 518 | (1) In order to renew a mortgage lender license, a |
| 519 | mortgage lender must: |
| 520 | (e) Authorize the registry to obtain an independent credit |
| 521 | report on each of the mortgage lender's control persons lender |
| 522 | from a consumer reporting agency, and transmit or provide access |
| 523 | to the report to the office. The cost of the credit report shall |
| 524 | be borne by the licensee. |
| 525 | Section 15. Subsection (13) is added to section 494.0067, |
| 526 | Florida Statutes, to read: |
| 527 | 494.0067 Requirements of mortgage lenders.- |
| 528 | (13) Each mortgage lender shall submit to the registry |
| 529 | reports of condition which are in a form and which contain such |
| 530 | information as the registry may require. |
| 531 | Section 16. This act shall take effect January 1, 2012. |