Florida Senate - 2017 SB 1298 By Senator Garcia 36-00321B-17 20171298__ 1 A bill to be entitled 2 An act relating to mortgage loans; amending s. 3 494.001, F.S.; redefining the term “mortgage loan”; 4 amending s. 494.00115, F.S.; requiring the Financial 5 Services Commission to define the term “hold himself 6 or herself out to the public as being in the mortgage 7 lending business” by rule; providing an effective 8 date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12 Section 1. Subsection (24) of section 494.001, Florida 13 Statutes, is amended to read: 14 494.001 Definitions.—As used in this chapter, the term: 15 (24) “Mortgage loan” means any: 16 (a) Residential loan that
primarily for personal, family,17 or household use whichis secured by a mortgage, deed of trust, 18 or other equivalent consensual security interest on a dwelling, 19 as defined in s. 103(w) s. 103(v)of the federal Truth in 20 Lending Act, or for the purchase of residential real estate upon 21 which a dwelling is to be constructed; 22 (b) Loan on commercial real property if the borrower is an 23 individual or the lender is a noninstitutional investor; or 24 (c) Loan on improved real property consisting of five or 25 more dwelling units if the borrower is an individual or the 26 lender is a noninstitutional investor. 27 Section 2. Subsection (2) of section 494.00115, Florida 28 Statutes, is amended to read: 29 494.00115 Exemptions.— 30 (2) The following persons are exempt from regulation under 31 part III of this chapter: 32 (a) A person acting in a fiduciary capacity conferred by 33 the authority of a court. 34 (b) A person who, as a seller of his or her own real 35 property, receives one or more mortgages in a purchase money 36 transaction. 37 (c) A person who acts solely under contract and as an agent 38 for federal, state, or municipal agencies for the purpose of 39 servicing mortgage loans. 40 (d) A person who makes only nonresidential mortgage loans 41 and sells loans only to institutional investors. 42 (e) An individual making or acquiring a mortgage loan using 43 his or her own funds for his or her own investment, and who does 44 not hold himself or herself out to the public as being in the 45 mortgage lending business. 46 (f) An individual selling a mortgage that was made or 47 purchased with that individual’s funds for his or her own 48 investment, and who does not hold himself or herself out to the 49 public as being in the mortgage lending business. 50 51 The commission shall define by rule the term “hold himself or 52 herself out to the public as being in the mortgage lending 53 business” as it is used in this subsection. 54 Section 3. This act shall take effect January 1, 2018.