Florida Senate - 2022                             CS for SB 1706
       
       
        
       By the Committee on Banking and Insurance; and Senators Garcia
       and Taddeo
       
       
       
       
       597-02840-22                                          20221706c1
    1                        A bill to be entitled                      
    2         An act relating to servicers and lenders of
    3         residential mortgage loans; amending s. 494.001, F.S.;
    4         revising and providing definitions; creating s.
    5         494.00163, F.S.; requiring that periodic statements
    6         for residential mortgage loans follow specified laws;
    7         specifying that certain entities are not exempt from
    8         such laws; defining the term “small mortgage
    9         servicer”; creating s. 494.00164, F.S.; prohibiting a
   10         mortgage servicer from assessing certain charges or
   11         fees relating to lender-placed insurance on a borrower
   12         unless specified requirements are met; defining the
   13         term “lender-placed insurance”; providing notice
   14         requirements relating to such assessment; requiring
   15         mortgage servicers to take specified actions after
   16         receiving certain evidence relating to hazard
   17         insurance coverage; requiring certain written notices
   18         to be sent by first-class mail; creating s. 494.00225,
   19         F.S.; requiring mortgage servicers and mortgage
   20         lenders to assume duties and obligations relating to
   21         previously approved first lien loan modifications,
   22         foreclosure prevention alternatives, and other loan
   23         modifications under certain circumstances; creating s.
   24         494.0027, F.S.; defining terms; prohibiting mortgage
   25         servicers and mortgage lenders from commencing certain
   26         civil actions, recording specified notices, or
   27         conducting foreclosure sales unless specified
   28         conditions are met; requiring mortgage servicers and
   29         mortgage lenders to establish single points of contact
   30         and provide to borrowers direct means of communication
   31         with the single points of contact upon request;
   32         providing requirements and duties for single points of
   33         contact and for mortgage servicers and mortgage
   34         lenders relating to single points of contact;
   35         requiring mortgage servicers and mortgage lenders to
   36         send written acknowledgment of application receipt to
   37         foreclosure prevention alternative applicants in
   38         specified manners within a specified timeframe;
   39         providing requirements for statements, documents, and
   40         information that mortgage servicers and mortgage
   41         lenders must send to applicants under various
   42         circumstances; providing timelines for mortgage
   43         servicers and mortgage lenders to commence civil
   44         actions against residential mortgage loan borrowers;
   45         providing that mortgage servicers and mortgage lenders
   46         are not required to evaluate foreclosure prevention
   47         alternative applications under certain circumstances;
   48         providing an exception; prohibiting mortgage servicers
   49         and mortgage lenders from charging specified fees;
   50         creating ss. 627.4055 and 635.0215, F.S.; defining
   51         terms; prohibiting insurers and insurance agents from
   52         engaging in certain acts relating to lender-placed
   53         insurance for residential mortgage loan guaranty;
   54         creating s. 702.013, F.S.; defining terms; prohibiting
   55         mortgage servicers and mortgage lenders from
   56         commencing certain civil actions, recording specified
   57         notices, or conducting foreclosure sales unless
   58         specified conditions are met; providing an exception;
   59         requiring mortgage servicers and mortgage lenders to
   60         establish single points of contact and to provide to
   61         borrowers direct means of communication with the
   62         single points of contact upon request; providing
   63         requirements and duties for single points of contact
   64         and for mortgage servicers and mortgage lenders
   65         relating to single points of contact; requiring
   66         mortgage servicers and mortgage lenders to send
   67         written acknowledgment of application receipt to
   68         foreclosure prevention alternative applicants in
   69         specified manners within a specified timeframe;
   70         providing requirements for statements, documents, and
   71         information that mortgage servicers and mortgage
   72         lenders must send to applicants under various
   73         circumstances; providing timelines for mortgage
   74         servicers and mortgage lenders to commence civil
   75         actions against residential mortgage loan borrowers;
   76         providing that mortgage servicers and mortgage lenders
   77         are not required to evaluate foreclosure prevention
   78         alternative applications under certain circumstances;
   79         providing an exception; prohibiting mortgage servicers
   80         and mortgage lenders from charging specified fees;
   81         amending ss. 494.00115 and 494.0025, F.S.; conforming
   82         cross-references; providing an effective date.
   83          
   84  Be It Enacted by the Legislature of the State of Florida:
   85  
   86         Section 1. Present subsections (12) through (26) and (27)
   87  through (38) of section 494.001, Florida Statutes, are
   88  redesignated as subsections (13) through (27) and subsections
   89  (29) through (40), respectively, new subsections (12) and (28)
   90  are added to that section, and subsection (1) of that section is
   91  amended, to read:
   92         494.001 Definitions.—As used in this chapter, the term:
   93         (1) “Borrower” means:
   94         (a) A person obligated to repay a mortgage loan and
   95  includes, but is not limited to, a coborrower or cosignor; or
   96         (b)A natural person who is a mortgagor under a residential
   97  mortgage loan.
   98         (12)“Foreclosure prevention alternative” means a
   99  modification of a residential mortgage loan term.
  100         (28)“Mortgage servicer” means a person or entity that
  101  directly services, or is contracted as a subservicing agent to a
  102  master servicer to service, a residential mortgage loan or
  103  manages a residential mortgage loan, which services or
  104  management may include, but is not limited to, the following
  105  responsibilities:
  106         (a)Interacting with the borrower; managing the borrower’s
  107  loan account daily, including, but not limited to, collecting
  108  and crediting loan payments that include principals and
  109  interests paid, and generating periodic billing and account
  110  statements; and managing the borrower’s escrow account, if
  111  applicable; or
  112         (b)Enforcing the note and security instrument as the
  113  current owner of the promissory note or as the authorized agent
  114  of the current owner of the promissory note.
  115         Section 2. Section 494.00163, Florida Statutes, is created
  116  to read:
  117         494.00163Residential mortgage loans; periodic statements.—
  118         (1)Periodic statements for residential mortgage loans in
  119  the state must follow all the provisions set forth in 12 C.F.R.
  120  s. 1026.41.
  121         (2)A servicer of a reverse mortgage or a small mortgage
  122  servicer is not exempt from the requirements of 12 C.F.R. s.
  123  1026.41. As used in this section, the term “small mortgage
  124  servicer” means a mortgage servicer that, together with any
  125  affiliates, services up to 5,000 residential mortgage loans, all
  126  of which have the mortgage servicer or its affiliate as the
  127  creditor or assignee.
  128         Section 3. Section 494.00164, Florida Statutes, is created
  129  to read:
  130         494.00164 Lender-placed insurance.—
  131         (1) A mortgage servicer may not assess any premium charge
  132  or fee related to lender-placed insurance on a borrower unless
  133  the servicer has a reasonable basis to believe that the borrower
  134  has failed to comply with the mortgage loan contract’s
  135  requirement to maintain hazard insurance and the requirements of
  136  this section are met. As used in this section, the term “lender
  137  placed insurance” means hazard insurance obtained by a mortgage
  138  servicer on behalf of the owner or assignee of a mortgage loan
  139  that insures the property securing such loan. The term “lender
  140  placed insurance” does not include hazard insurance required by
  141  the Flood Disaster Protection Act of 1973, or, if the borrower
  142  agrees, hazard insurance obtained by a borrower but renewed by
  143  the borrower’s servicer at its discretion.
  144         (2) A mortgage servicer may not assess any premium charge
  145  or fee related to lender-placed insurance on a borrower unless
  146  all of the following occur:
  147         (a) The mortgage servicer, at least 45 days before
  148  assessing on a borrower a charge or fee related to lender-placed
  149  insurance, delivers to such borrower written notice containing
  150  all of the following:
  151         1. The date of the notice, the mortgage servicer’s name and
  152  mailing address, the borrower’s name and mailing address, and
  153  the physical address of the property.
  154         2. In bold type, a statement requesting the borrower to
  155  provide hazard insurance information for the borrower’s
  156  property. The statement must identify the property by its
  157  physical address.
  158         3. A statement specifying:
  159         a. The borrower’s hazard insurance is expiring, has
  160  expired, or provides insufficient coverage, as applicable;
  161         b. The mortgage servicer does not have evidence of hazard
  162  insurance coverage for the property; and
  163         c. If applicable, the type of insurance for which the
  164  servicer lacks evidence of coverage.
  165         4. In bold type, a statement that hazard insurance is
  166  required on the borrower’s property, and that the mortgage
  167  servicer has purchased or will purchase, as applicable, hazard
  168  insurance at the borrower’s expense.
  169         5. In bold type, a statement that insurance the mortgage
  170  servicer has purchased or purchases may cost significantly more
  171  than hazard insurance purchased by the borrower and may provide
  172  less coverage than hazard insurance purchased by the borrower.
  173         6. A clear and conspicuous statement requesting the
  174  borrower to promptly provide the mortgage servicer with evidence
  175  of hazard insurance coverage for the property, including a
  176  description of the requested insurance information and how the
  177  borrower may provide such information.
  178         7. The mortgage servicer’s telephone number for borrower
  179  inquiries.
  180         8. If applicable, a statement advising the borrower to
  181  review additional information provided in the same transmittal.
  182         (b) The mortgage servicer, at least 15 days before
  183  assessing on a borrower a premium charge or fee related to
  184  lender-placed insurance, delivers to the borrower a written
  185  notice that:
  186         1. If a mortgage servicer has not received hazard
  187  information after delivering the notice required by paragraph
  188  (a), includes:
  189         a. The date of the notice;
  190         b. In bold type, a statement that the notice is the second
  191  and final notice;
  192         c. The information required for the notice under paragraph
  193  (a), except for the date of that notice; and
  194         d. In bold type, the cost of the lender-placed insurance,
  195  stated as an annual premium, or, if a servicer does not know the
  196  cost of lender-placed insurance, a reasonable estimate of such
  197  cost.
  198         2. If a mortgage servicer received hazard insurance
  199  information after delivering the notice required under paragraph
  200  (a) to the borrower, but has not received evidence demonstrating
  201  that the borrower has had sufficient hazard insurance coverage
  202  in place continuously, includes:
  203         a. The date of the notice;
  204         b. In bold type, a statement that the notice is the second
  205  and final notice;
  206         c. The information required by subparagraphs (a)1., 2., 5.,
  207  7., and 8.;
  208         d. In bold type, the cost of the lender-placed insurance,
  209  stated as an annual premium, or, if a servicer does not know the
  210  cost of lender-placed insurance, a reasonable estimate of such
  211  cost;
  212         e. A statement that the mortgage servicer received the
  213  hazard insurance information that the borrower provided;
  214         f. A statement that requests the borrower to provide the
  215  information that is missing; and
  216         g. A statement that the borrower will be charged for
  217  insurance the servicer has purchased or purchases for the period
  218  of time during which the servicer is unable to verify coverage.
  219         (c) By the end of the 15-day period beginning on the date
  220  the written notice described in paragraph (b) is delivered to
  221  the borrower the mortgage servicer has not received, from the
  222  borrower or otherwise, evidence demonstrating that the borrower
  223  has continuously had in place hazard insurance coverage that
  224  complies with the loan contract’s requirements to maintain
  225  hazard insurance.
  226         (3) A mortgage servicer may not assess any premium charge
  227  or fee related to renewing or replacing lender-placed insurance
  228  on a borrower unless all of the following occur:
  229         (a) The mortgage servicer, at least 45 days before
  230  assessing on a borrower a premium charge or fee related to
  231  renewing or replacing lender-placed insurance, delivers to such
  232  borrower written notice containing all of the following:
  233         1. The date of the notice, the mortgage servicer’s name and
  234  mailing address, the borrower’s name and mailing address, and
  235  the physical address of the property;
  236         2. In bold type, a statement requesting the borrower to
  237  update the hazard insurance information for the borrower’s
  238  property. The statement must identify the property by its
  239  physical address;
  240         3. A statement that the mortgage servicer previously
  241  purchased insurance on the borrower’s property and assessed the
  242  cost of the insurance to the borrower because the servicer did
  243  not have evidence that the borrower had hazard insurance
  244  coverage for the property;
  245         4. A statement specifying:
  246         a. The hazard insurance the mortgage servicer previously
  247  purchased is expiring or has expired, as applicable; and
  248         b. In bold type, because hazard insurance is required on
  249  the borrower’s property, the servicer intends to maintain
  250  insurance on the property by renewing or replacing the insurance
  251  it previously purchased;
  252         5. In bold type, a statement that insurance the servicer
  253  has purchased or purchases may cost significantly more than
  254  hazard insurance purchased by the borrower, that such insurance
  255  may provide less coverage than hazard insurance purchased by the
  256  borrower;
  257         6. The cost of the lender-placed insurance, stated as an
  258  annual premium, except if a mortgage servicer does not know the
  259  cost of the lender-placed insurance, a reasonable estimate shall
  260  be provided;
  261         7. A statement that if the borrower purchases hazard
  262  insurance, the borrower should promptly provide the servicer
  263  with insurance information;
  264         8. A description of the requested insurance information and
  265  how the borrower may provide such information;
  266         9. The mortgage servicer’s telephone number for borrower
  267  inquiries; and
  268         10. If applicable, a statement advising the borrower to
  269  review additional information provided in the same transmittal.
  270         (4) Within 15 days after receiving evidence demonstrating
  271  that the borrower has had hazard insurance coverage in place
  272  that complies with the loan contract’s requirements to maintain
  273  hazard insurance, a mortgage servicer must:
  274         (a) Cancel the lender-placed insurance the servicer
  275  purchased to insure the borrower’s property; and
  276         (b) Refund to such borrower all lender-placed insurance
  277  premium charges and fees paid by such borrower for any period of
  278  overlapping insurance coverage and remove from the borrower’s
  279  account all lender-placed insurance charges and related fees for
  280  such period that the servicer has assessed to the borrower.
  281         (5) The written notices required by this section must be
  282  sent by first-class or express mail.
  283         Section 4. Section 494.00225, Florida Statutes, is created
  284  to read:
  285         494.00225Residential mortgage loan modifications to avoid
  286  foreclosure; transfers of duties and obligations of mortgage
  287  servicers and mortgage lenders.—If a borrower of a residential
  288  mortgage loan has been approved in writing for a first lien loan
  289  modification, a foreclosure prevention alternative under s.
  290  494.0027, or other loan modification to avoid foreclosure and if
  291  the servicing of the borrower’s mortgage loan is transferred or
  292  sold, the mortgage servicer or mortgage lender to whom the
  293  mortgage loan is transferred or sold shall assume all duties and
  294  obligations related to such previously approved first lien loan
  295  modification, foreclosure prevention alternative, or other loan
  296  modification.
  297         Section 5. Section 494.0027, Florida Statutes, is created
  298  to read:
  299         494.0027Foreclosure prevention alternatives for
  300  residential mortgage loans.—
  301         (1)As used in this section, the term:
  302         (a)“Complete application” means an application for a
  303  foreclosure prevention alternative for which the borrower has
  304  provided all documents required by the mortgage servicer or
  305  mortgage lender within the reasonable timeframe specified by the
  306  mortgage servicer or mortgage lender.
  307         (b)“Single point of contact” means a person who has, or a
  308  team of personnel of which each member has, the ability,
  309  authority, and responsibility to:
  310         1.Communicate the process by which a borrower may apply
  311  for an available foreclosure prevention alternative and the
  312  deadline for any required submission to be considered for the
  313  foreclosure prevention alternative.
  314         2.Coordinate receipt of all documents associated with the
  315  available foreclosure prevention alternatives and notify the
  316  borrower of any missing document necessary to complete an
  317  application for a foreclosure prevention alternative.
  318         3.Have access to current information and sufficient
  319  personnel to timely, accurately, and adequately inform the
  320  borrower of the current status of the foreclosure prevention
  321  alternative.
  322         4.Ensure that the borrower is considered for all
  323  foreclosure prevention alternatives offered by, or through, the
  324  mortgage servicer or mortgage lender and for which the borrower
  325  is or may be eligible.
  326         5.Have access to the person who has the ability and
  327  authority to stop the foreclosure process when necessary.
  328         (2)(a)A mortgage servicer or mortgage lender may not
  329  commence a civil action for the recovery of any debt, or for the
  330  enforcement of any right, under a residential mortgage loan
  331  which is not barred by this chapter or chapter 702 or any other
  332  provision of law, record a notice of default or a notice of
  333  sale, or conduct a foreclosure sale if a borrower submits an
  334  application for a foreclosure prevention alternative offered by
  335  or through the borrower’s mortgage servicer or mortgage lender,
  336  unless one of the following has occurred:
  337         1.The borrower fails to submit all documents or
  338  information required to complete the application within the
  339  allotted timeframe authorized by the mortgage servicer or
  340  mortgage lender, which must be at least 30 calendar days after
  341  the date of the initial acknowledgment of receipt of the
  342  application sent to the borrower.
  343         2.The mortgage servicer or mortgage lender makes a written
  344  determination that the borrower is not eligible for a
  345  foreclosure prevention alternative, and any appeal period under
  346  subsection (5) has expired.
  347         3.The borrower does not accept a written offer for a
  348  foreclosure prevention alternative within 30 calendar days after
  349  the date of the offer.
  350         4.The borrower accepts a written offer for a foreclosure
  351  prevention alternative, but defaults on or otherwise breaches
  352  the borrower’s obligations under the foreclosure prevention
  353  alternative.
  354         (b)1.If a borrower requests a foreclosure prevention
  355  alternative, the mortgage servicer or mortgage lender shall
  356  promptly establish a single point of contact and provide to the
  357  borrower one or more direct means of communication with the
  358  single point of contact.
  359         2.A single point of contact must remain assigned to the
  360  borrower’s account until the mortgage servicer or mortgage
  361  lender determines that all foreclosure prevention alternatives
  362  offered by, or through, the mortgage servicer or mortgage lender
  363  have been exhausted or the borrower’s account becomes current.
  364         3.The mortgage servicer or mortgage lender shall ensure
  365  that a single point of contact refers and transfers the borrower
  366  to an appropriate supervisor upon the borrower’s request, if the
  367  single point of contact has a supervisor.
  368         4.If the responsibilities of a single point of contact are
  369  performed by a team of personnel, the mortgage servicer or
  370  mortgage lender shall ensure that each member of the team is
  371  knowledgeable about the borrower’s situation and current status
  372  in the process of seeking a foreclosure prevention alternative.
  373         (3)Within 7 business days after receiving an application
  374  for a foreclosure prevention alternative or any document in
  375  connection with a foreclosure prevention alternative application
  376  for a residential mortgage loan, a mortgage servicer or mortgage
  377  lender shall send to the borrower, by first-class mail or, if an
  378  electronic mail address is provided, by electronic mail, written
  379  acknowledgment of the receipt of the application or document.
  380         (a)Upon receipt of an application for a foreclosure
  381  prevention alternative, the mortgage servicer or mortgage lender
  382  shall include in the initial acknowledgment of receipt of the
  383  application:
  384         1.A description of the process for considering the
  385  application, including, without limitation, an estimate of when
  386  a decision on the application will be made and the length of
  387  time the borrower will have to consider an offer for a
  388  foreclosure prevention alternative.
  389         2.A statement of any deadlines that affect the processing
  390  of an application for a foreclosure prevention alternative,
  391  including, without limitation, the deadline for submitting any
  392  missing document.
  393         3.A statement of the expiration dates for any documents
  394  submitted by the borrower.
  395         (b)If a borrower submits an application for a foreclosure
  396  prevention alternative but does not initially submit all the
  397  documents or information required to complete the application,
  398  the mortgage servicer or mortgage lender shall include in the
  399  initial acknowledgment of receipt of the application:
  400         1.A statement of any deficiency in the borrower’s
  401  application and allow the borrower at least 30 calendar days to
  402  submit any missing document or information required to complete
  403  the application.
  404         2.All the information required under subparagraphs (a)1.,
  405  2., and 3.
  406         (4)If a borrower accepts an offer for a foreclosure
  407  prevention alternative for a residential mortgage loan, the
  408  mortgage servicer or mortgage lender shall provide the borrower
  409  with a copy of the complete agreement of the foreclosure
  410  prevention alternative signed by the mortgage lender or an agent
  411  or authorized representative of the mortgage lender.
  412         (5)If a borrower submits a complete application for a
  413  foreclosure prevention alternative for a residential mortgage
  414  loan and the borrower’s application is denied, the mortgage
  415  servicer or mortgage lender shall send to the borrower a written
  416  statement of:
  417         (a)The reason for the denial.
  418         (b)The length of time the borrower has to request an
  419  appeal of the denial, which must be at least 30 calendar days.
  420         (c)Instructions regarding how to appeal the denial,
  421  including, without limitation, how to provide evidence that the
  422  denial was in error.
  423         (6)If a borrower of a residential mortgage loan submits a
  424  complete application for a foreclosure prevention alternative
  425  and the borrower’s application is denied, the mortgage servicer
  426  or mortgage lender may not commence a civil action for the
  427  recovery of any debt, or for the enforcement of any right, under
  428  a residential mortgage loan which is not barred by this chapter
  429  or chapter 702 or any other provision of law, record a notice of
  430  default or a notice of sale, or conduct a foreclosure sale until
  431  the later of:
  432         (a)Sixty calendar days after the borrower is sent the
  433  written statement required by subsection (5); or
  434         (b)If the borrower appeals the denial, the later of:
  435         1.Fifteen calendar days after the denial of the appeal;
  436         2.If the appeal is successful, 14 calendar days after a
  437  foreclosure prevention alternative offered after the appeal is
  438  declined by the borrower; or
  439         3.If a foreclosure prevention alternative offered after
  440  the appeal is accepted, the date on which the borrower fails to
  441  timely submit the first payment or otherwise breaches the terms
  442  of the offer.
  443         (7)A mortgage servicer or mortgage lender is not required
  444  to evaluate a foreclosure prevention alternative application
  445  from a borrower of a residential mortgage loan who has already
  446  been evaluated or afforded a fair opportunity to be evaluated
  447  for a foreclosure prevention alternative or who has been
  448  evaluated or afforded a fair opportunity to be evaluated
  449  consistent with the requirements of this section, unless:
  450         (a)There has been a material change in the borrower’s
  451  financial circumstances since the date of the borrower’s
  452  previous application.
  453         (b)The change in paragraph (a) is documented by the
  454  borrower and submitted to the mortgage servicer or mortgage
  455  lender.
  456         (8)A mortgage servicer or mortgage lender may not charge
  457  or collect:
  458         (a)An application fee, processing fee, or other fee for a
  459  foreclosure prevention alternative; or
  460         (b)Late fees for periods during which:
  461         1.A foreclosure prevention alternative is under
  462  consideration or a denial is being appealed;
  463         2.The borrower is making timely payments under a
  464  foreclosure prevention alternative; or
  465         3.A foreclosure prevention alternative is being evaluated
  466  or exercised.
  467         Section 6. Section 627.4055, Florida Statutes, is created
  468  to read:
  469         627.4055Lender-placed insurance for residential mortgage
  470  loan guaranty.—
  471         (1)As used in this section, the term:
  472         (a)“Affiliate” has the same meaning as in s. 624.10.
  473         (b)“Lender-placed insurance” means insurance obtained by a
  474  mortgage servicer or mortgage lender when a borrower of a
  475  residential mortgage loan does not maintain valid or sufficient
  476  insurance upon the mortgaged real property as required by the
  477  terms of the mortgage agreement.
  478         (c)“Mortgage servicer” has the same meaning as in s.
  479  494.001.
  480         (d)“Person affiliated” means an affiliate or affiliated
  481  person, as those terms are defined in s. 624.10.
  482         (2)(a)An insurer or insurance agent may not:
  483         1.Issue lender-placed insurance on a mortgaged property if
  484  the insurer or insurance agent or an affiliate of the insurer or
  485  insurance agent owns, performs the servicing for, or owns the
  486  servicing right to, the mortgaged property.
  487         2.Except for payment to a mortgage lender for any loss
  488  resulting from a mortgage default or property foreclosure:
  489         a.Compensate any mortgage lender, insurer, investor, or
  490  mortgage servicer, including, but not limited to, through
  491  payment of commissions, on a lender-placed insurance policy
  492  issued by the insurer or insurance agent.
  493         b.Make any payment, including, but not limited to, payment
  494  of expenses, to any mortgage lender, insurer, investor, or
  495  mortgage servicer for the purpose of securing lender-placed
  496  insurance business or related outsourced services.
  497         c.Share lender-placed insurance premium or risk with the
  498  mortgage lender, investor, or mortgage servicer that obtained
  499  the lender-placed insurance.
  500         d.Offer contingent commissions, profit sharing, or other
  501  payments dependent on profitability or loss ratios to any person
  502  affiliated with lender-placed insurance.
  503         (b)An insurer or insurance agent may not provide free or
  504  below-cost outsourced services to a mortgage lender, insurance
  505  producer, investor, or mortgage servicer or outsource its own
  506  functions to a mortgage lender, insurance producer, investor, or
  507  mortgage servicer on an above-cost basis.
  508         Section 7. Section 635.0215, Florida Statutes, is created
  509  to read:
  510         635.0215Lender-placed insurance for residential mortgage
  511  loan guaranty.—
  512         (1)As used in this section, the term:
  513         (a)“Affiliate” has the same meaning as in s. 624.10.
  514         (b)“Lender-placed insurance” has the same meaning as in s.
  515  627.4055(1).
  516         (c)“Mortgage servicer” has the same meaning as in s.
  517  494.001.
  518         (d)“Person affiliated” means an affiliate or affiliated
  519  person, as those terms are defined in s. 624.10.
  520         (2)(a)An insurer or insurance agent may not:
  521         1.Issue lender-placed insurance on a mortgaged property if
  522  the insurer or insurance agent or an affiliate of the insurer or
  523  insurance agent owns, performs the servicing for, or owns the
  524  servicing right to, the mortgaged property.
  525         2.Except for payment to a mortgage lender for any loss
  526  resulting from a mortgage default or property foreclosure:
  527         a.Compensate any mortgage lender, insurer, investor, or
  528  mortgage servicer, including, but not limited to, through
  529  payment of commissions, on a lender-placed insurance policy
  530  issued by the insurer or insurance agent.
  531         b.Make any payment, including, but not limited to, payment
  532  of expenses, to any mortgage lender, insurer, investor, or
  533  mortgage servicer for the purpose of securing lender-placed
  534  insurance business or related outsourced services.
  535         c.Share lender-placed insurance premium or risk with the
  536  mortgage lender, investor, or mortgage servicer that obtained
  537  the lender-placed insurance.
  538         d.Offer contingent commissions, profit sharing, or other
  539  payments dependent on profitability or loss ratios to any person
  540  affiliated with lender-placed insurance.
  541         (b)An insurer or insurance agent may not provide free or
  542  below-cost outsourced services to a mortgage lender, insurance
  543  producer, investor, or mortgage servicer or outsource its own
  544  functions to a mortgage lender, insurance producer, investor, or
  545  mortgage servicer on an above-cost basis.
  546         Section 8. Section 702.013, Florida Statutes, is created to
  547  read:
  548         702.013Foreclosure prevention alternatives for residential
  549  mortgage loans.—
  550         (1)As used in this section, the term:
  551         (a)“Complete application” has the same meaning as in s.
  552  494.0027(1).
  553         (b)“Foreclosure prevention alternative” has the same
  554  meaning as in s. 494.001.
  555         (c)“Mortgage servicer” has the same meaning as in s.
  556  494.001.
  557         (d)“Single point of contact” has the same meaning as in s.
  558  494.0027(1).
  559         (2)(a)A mortgage servicer or mortgage lender may not
  560  commence a civil action for the recovery of any debt, or for the
  561  enforcement of any right, under a residential mortgage loan
  562  which is not barred by this chapter or chapter 494 or any other
  563  provision of law, record a notice of default or a notice of
  564  sale, or conduct a foreclosure sale, if a borrower submits an
  565  application for a foreclosure prevention alternative offered by,
  566  or through, the borrower’s mortgage servicer or mortgage lender,
  567  unless one of the following has occurred:
  568         1.The borrower fails to submit all documents or
  569  information required to complete the application within the
  570  allotted timeframe authorized by the mortgage servicer or
  571  mortgage lender, which must be at least 30 calendar days after
  572  the date of the initial acknowledgment of receipt of the
  573  application sent to the borrower.
  574         2.The mortgage servicer or mortgage lender makes a written
  575  determination that the borrower is not eligible for a
  576  foreclosure prevention alternative, and any appeal period under
  577  subsection (5) has expired.
  578         3.The borrower does not accept a written offer for a
  579  foreclosure prevention alternative within 30 calendar days after
  580  the date of the offer.
  581         4.The borrower accepts a written offer for a foreclosure
  582  prevention alternative, but defaults on or otherwise breaches
  583  the borrower’s obligations under the foreclosure prevention
  584  alternative.
  585         (b)1.If a borrower requests a foreclosure prevention
  586  alternative, the mortgage servicer or mortgage lender shall
  587  promptly establish a single point of contact and provide to the
  588  borrower one or more direct means of communication with the
  589  single point of contact.
  590         2.A single point of contact must remain assigned to the
  591  borrower’s account until the mortgage servicer or mortgage
  592  lender determines that all foreclosure prevention alternatives
  593  offered by, or through, the mortgage servicer or mortgage lender
  594  have been exhausted or the borrower’s account becomes current.
  595         3.The mortgage servicer or mortgage lender shall ensure
  596  that a single point of contact refers and transfers the borrower
  597  to an appropriate supervisor upon the borrower’s request, if the
  598  single point of contact has a supervisor.
  599         4.If the responsibilities of a single point of contact are
  600  performed by a team of personnel, the mortgage servicer or
  601  mortgage lender shall ensure that each member of the team is
  602  knowledgeable about the borrower’s situation and current status
  603  in the process of seeking a foreclosure prevention alternative.
  604         (3)Within 7 business days after receiving an application
  605  for a foreclosure prevention alternative or any document in
  606  connection with a foreclosure prevention alternative application
  607  for a residential mortgage loan, a mortgage servicer or mortgage
  608  lender shall send to the borrower, by first-class mail or, if an
  609  electronic mail address is provided, by electronic mail, written
  610  acknowledgment of the receipt of the application or document.
  611         (a)Upon receipt of an application for a foreclosure
  612  prevention alternative, the mortgage servicer or mortgage lender
  613  shall include in the initial acknowledgment of receipt of the
  614  application:
  615         1.A description of the process for considering the
  616  application, including, without limitation, an estimate of when
  617  a decision on the application will be made and the length of
  618  time the borrower will have to consider an offer for a
  619  foreclosure prevention alternative.
  620         2.A statement of any deadlines that affect the processing
  621  of an application for a foreclosure prevention alternative,
  622  including, without limitation, the deadline for submitting any
  623  missing document.
  624         3.A statement of the expiration dates for any documents
  625  submitted by the borrower.
  626         (b)If a borrower submits an application for a foreclosure
  627  prevention alternative but does not initially submit all the
  628  documents or information required to complete the application,
  629  the mortgage servicer or mortgage lender shall include in the
  630  initial acknowledgment of receipt of the application:
  631         1.A statement of any deficiency in the borrower’s
  632  application and allow the borrower at least 30 calendar days to
  633  submit any document or information required to complete the
  634  application.
  635         2.All the information required under subparagraphs (a)1.,
  636  2., and 3.
  637         (4)If a borrower accepts an offer for a foreclosure
  638  prevention alternative for a residential mortgage loan, the
  639  mortgage servicer or mortgage lender shall provide the borrower
  640  with a copy of the complete agreement of the foreclosure
  641  prevention alternative signed by the mortgage lender or an agent
  642  or authorized representative of the mortgage lender.
  643         (5)If a borrower submits a complete application for a
  644  foreclosure prevention alternative for a residential mortgage
  645  loan and the borrower’s application is denied, the mortgage
  646  servicer or mortgage lender shall send to the borrower a written
  647  statement of:
  648         (a)The reason for the denial.
  649         (b)The length of time the borrower has to request an
  650  appeal of the denial, which must be at least 30 calendar days.
  651         (c)Instructions regarding how to appeal the denial,
  652  including, without limitation, how to provide evidence that the
  653  denial was in error.
  654         (6)If a borrower of a residential mortgage loan submits a
  655  complete application for a foreclosure prevention alternative
  656  and the borrower’s application is denied, the mortgage servicer
  657  or mortgage lender may not commence a civil action for the
  658  recovery of any debt, or for the enforcement of any right, under
  659  a residential mortgage loan which is not barred by this chapter
  660  or chapter 494 or any other provision of law, record a notice of
  661  default or a notice of sale, or conduct a foreclosure sale until
  662  the later of:
  663         (a)Sixty calendar days after the borrower is sent the
  664  written statement required by subsection (5); or
  665         (b)If the borrower appeals the denial, the later of:
  666         1.Fifteen calendar days after the denial of the appeal; or
  667         2.If the appeal is successful, 14 calendar days after a
  668  foreclosure prevention alternative offered after the appeal is
  669  declined by the borrower; or
  670         3.If a foreclosure prevention alternative offered after
  671  the appeal is accepted, the date on which the borrower fails to
  672  timely submit the first payment or otherwise breaches the terms
  673  of the offer.
  674         (7)A mortgage servicer or mortgage lender is not required
  675  to evaluate a foreclosure prevention alternative application
  676  from a borrower of a residential mortgage loan who has already
  677  been evaluated or afforded a fair opportunity to be evaluated
  678  for a foreclosure prevention alternative or who has been
  679  evaluated or afforded a fair opportunity to be evaluated
  680  consistent with the requirements of this section, unless:
  681         (a)There has been a material change in the borrower’s
  682  financial circumstances since the date of the borrower’s
  683  previous application.
  684         (b)The change in paragraph (a) is documented by the
  685  borrower and submitted to the mortgage servicer or mortgage
  686  lender.
  687         (8)A mortgage servicer or mortgage lender may not charge
  688  or collect:
  689         (a)Application fees, processing fees, or other fees for a
  690  foreclosure prevention alternative; or
  691         (b)Late fees for periods during which:
  692         1.A foreclosure prevention alternative is under
  693  consideration or a denial is being appealed;
  694         2.The borrower is making timely payments under a
  695  foreclosure prevention alternative; or
  696         3.A foreclosure prevention alternative is being evaluated
  697  or exercised.
  698         Section 9. Paragraphs (a), (b), and (c) of subsection (5)
  699  of section 494.00115, Florida Statutes, are amended to read:
  700         494.00115 Exemptions.—
  701         (5) As used in this section, the term “hold himself or
  702  herself out to the public as being in the mortgage lending
  703  business” includes any of the following:
  704         (a) Representing to the public, through advertising or
  705  other means of communicating or providing information, including
  706  the use of business cards, stationery, brochures, signs, rate
  707  lists, or promotional items, by any method, that such individual
  708  can or will perform the activities described in s. 494.001(25)
  709  s. 494.001(24).
  710         (b) Soliciting in a manner that would lead the intended
  711  audience to reasonably believe that such individual is in the
  712  business of performing the activities described in s.
  713  494.001(25) s. 494.001(24).
  714         (c) Maintaining a commercial business establishment at
  715  which, or premises from which, such individual regularly
  716  performs the activities described in s. 494.001(25) s.
  717  494.001(24) or regularly meets with current or prospective
  718  mortgage borrowers.
  719         Section 10. Paragraph (d) of subsection (4) of section
  720  494.0025, Florida Statutes, is amended to read:
  721         494.0025 Prohibited practices.—It is unlawful for any
  722  person:
  723         (4) In any practice or transaction or course of business
  724  relating to the sale, purchase, negotiation, promotion,
  725  advertisement, or hypothecation of mortgage loan transactions,
  726  directly or indirectly:
  727         (d) To misrepresent a residential mortgage loan, as
  728  described in s. 494.001(26)(a) s. 494.001(25)(a), as a business
  729  purpose loan.
  730         Section 11. This act shall take effect July 1, 2022.