Bill Text: FL H1281 | 2010 | Regular Session | Engrossed

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Bill Title: Loan Origination [CPSC]

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2010-05-11 - Approved by Governor; Chapter No. 2010-67 [H1281 Detail]

Download: Florida-2010-H1281-Engrossed.html

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CS/HB 1281

1	A bill to be entitled
2	An act relating to loan origination; amending s.
3	494.00255, F.S.; reenacting a reference to certain federal
4	laws for purposes of incorporating rules adopted under
5	such laws; specifying application of disciplinary
6	procedures to principal loan originators for actions of
7	loan originators; amending s. 494.00331, F.S.; specifying
8	nonapplication of certain limitations to licensed loan
9	originators operating solely as loan processors; providing
10	a definition; prohibiting acting as a loan processor
11	unless licensed as a loan originator; requiring a
12	declaration of intent to engage solely in loan processing;
13	authorizing withdrawal of a declaration of intent;
14	authorizing payment of a loan processor's fee without
15	violating certain restrictions; amending s. 494.0038,
16	F.S.; revising requirements relating to a good faith
17	estimate by a loan originator; requiring a disclosure
18	document to be signed and dated by the borrower; amending
19	s. 494.0067, F.S.; deleting a requirement for licensure
20	application prior to certain purchases or acquisitions
21	under certain conditions; providing an effective date.
22
23	Be It Enacted by the Legislature of the State of Florida:
24
25	Section 1. Paragraph (m) of subsection (1) of section
26	494.00255, Florida Statutes, is reenacted, and subsection (5) of
27	that section is amended, to read:
28	494.00255 Administrative penalties and fines; license
29	violations.-
30	(1) Each of the following acts constitutes a ground for
31	which the disciplinary actions specified in subsection (2) may
32	be taken against a person licensed or required to be licensed
33	under part II or part III of this chapter:
34	(m) In any mortgage transaction, violating any provision
35	of the federal Real Estate Settlement Procedures Act, as
36	amended, 12 U.S.C. ss. 2601 et seq.; the federal Truth in
37	Lending Act, as amended, 15 U.S.C. ss. 1601 et seq.; or any
38	regulations adopted under such acts.
39	(5) A principal loan originator of a mortgage lender is
40	subject to the disciplinary actions specified in subsection (2)
41	for violations of subsection (1) by a loan originator an
42	associate of a mortgage lender if there is a pattern of repeated
43	violations by the loan originator associate or if the principal
44	loan originator has knowledge of the violations.
45	Section 2. Section 494.00331, Florida Statutes, as amended
46	by chapter 2009-241, Laws of Florida, is amended to read:
47	494.00331 Loan originator employment.-
48	(1) An individual may not act as a loan originator unless
49	he or she is an employee of, or an independent contractor for, a
50	mortgage broker or a mortgage lender, and may not be employed by
51	or contract with more than one mortgage broker or mortgage
52	lender, or either simultaneously. However, this provision does
53	not apply to any licensed loan originator who acts solely as a
54	loan processor and contracts with more than one mortgage broker
55	or mortgage lender, or either simultaneously.
56	(2) For purposes of this section, the term "loan
57	processor" means an individual who is licensed as a loan
58	originator who engages only in:
59	(a) The receipt, collection, distribution, and analysis of
60	information common for the processing or underwriting of a
61	residential mortgage loan; or
62	(b) Communication with consumers to obtain the information
63	necessary for the processing or underwriting of a loan, to the
64	extent that such communication does not include offering or
65	negotiating loan rates or terms or does not include counseling
66	consumers about residential mortgage loan rates or terms.
67	(3) A person may not act as a loan processor unless the
68	person is licensed as a loan originator under this chapter and
69	has on file with the office a declaration of intent to engage
70	solely in loan processing. The declaration of intent must be on
71	such form as prescribed by the commission by rule.
72	(4) A loan originator that currently has a declaration of
73	intent to engage solely in loan processing on file with the
74	office may withdraw his or her declaration of intent to engage
75	solely in loan processing. The withdrawal of declaration of
76	intent must on such form as prescribed by commission rule.
77	(5) A declaration of intent or a withdrawal of declaration
78	of intent is effective upon receipt by the office.
79	(6) The fee earned by a loan processor may be paid to the
80	company that employs the loan processor without violating the
81	restriction in s. 494.0025(7) requiring fees or commissions to
82	be paid to a licensed mortgage broker or mortgage lender or a
83	person exempt from licensure under this chapter.
84	Section 3. Paragraph (c) of subsection (3) of section
85	494.0038, Florida Statutes, as amended by chapter 2009-241, Laws
86	of Florida, is amended to read:
87	494.0038 Loan origination and mortgage broker fees and
88	disclosures.-
89	(3) At the time a written mortgage broker agreement is
90	signed by the borrower or forwarded to the borrower for
91	signature, or at the time the mortgage broker business accepts
92	an application fee, credit report fee, property appraisal fee,
93	or any other third-party fee, but at least 3 business days
94	before execution of the closing or settlement statement, the
95	mortgage broker shall disclose in writing to any applicant for a
96	mortgage loan the following information:
97	(c) A good faith estimate, signed and dated by the
98	borrower, which discloses the total amount of each of the fees
99	the borrower may reasonably expect to pay if the loan is closed,
100	including, but not limited to, fees earned by the mortgage
101	broker, lender fees, third-party fees, and official fees,
102	together with the terms and conditions for obtaining a refund of
103	such fees, if any.
104	1. Any amount collected in excess of the actual cost shall
105	be returned within 60 days after rejection, withdrawal, or
106	closing.
107	2. At the time a The good faith estimate is provided to
108	the borrower, the loan originator must identify in writing the
109	recipient of all payments charged the borrower, which and,
110	except for all fees to be received by the mortgage broker, may
111	be disclosed in generic terms, such as, but not limited to, paid
112	to lender, appraiser, officials, title company, or any other
113	third-party service provider. This requirement does not supplant
114	or is not a substitute for the written mortgage broker agreement
115	described in subsection (1). The disclosure required under this
116	subparagraph must be signed and dated by the borrower.
117	Section 4. Subsection (4) of section 494.0067, Florida
118	Statutes, as amended by chapter 2009-241, Laws of Florida, is
119	amended to read:
120	494.0067 Requirements of mortgage lenders.-
121	(4) A mortgage lender shall report any changes in the
122	principal loan originator, any addition or subtraction of a
123	control person, or any change in the form of business
124	organization by written amendment in such form and at such time
125	that the commission specifies by rule.
126	(a) In any case in which a person or a group of persons,
127	directly or indirectly or acting by or through one or more
128	persons, proposes to purchase or acquire a controlling interest
129	in a licensee, such person or group must submit an initial
130	application for licensure as a mortgage lender before such
131	purchase or acquisition and at the time and in the form
132	prescribed by the commission by rule.
133	(b) Any addition of a control person who has not
134	previously filed a Uniform Mortgage Biographical Statement &
135	Consent Form, MU2, or has not previously complied with the
136	fingerprinting and credit report requirements of s. 494.00611 is
137	subject to the provisions of this section. If, after the
138	addition of a control person, the office determines that the
139	licensee does not continue to meet licensure requirements, the
140	office may bring administrative action in accordance with s.
141	494.00255 to enforce this section.
142	Section 5. This act shall take effect October 1, 2010.

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