Bill Text: FL H1281 | 2010 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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-Comm_Sub.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; creating s. 494.00335,
16	F.S.; exempting certain mobile home dealers licensed under
17	ch. 494 and ch. 320, F.S., from licensure under ch. 520,
18	F.S.; providing that certain mobile home dealer employees
19	are not loan originators; amending s. 494.0038, F.S.;
20	revising requirements relating to a good faith estimate by
21	a loan originator; requiring a disclosure document to be
22	signed and dated by the borrower; amending s. 494.0067,
23	F.S.; deleting a requirement for licensure application
24	prior to certain purchases or acquisitions under certain
25	conditions; providing an effective date.
26
27	Be It Enacted by the Legislature of the State of Florida:
28
29	Section 1. Paragraph (m) of subsection (1) of section
30	494.00255, Florida Statutes, is reenacted, and subsection (5) of
31	that section is amended, to read:
32	494.00255 Administrative penalties and fines; license
33	violations.-
34	(1) Each of the following acts constitutes a ground for
35	which the disciplinary actions specified in subsection (2) may
36	be taken against a person licensed or required to be licensed
37	under part II or part III of this chapter:
38	(m) In any mortgage transaction, violating any provision
39	of the federal Real Estate Settlement Procedures Act, as
40	amended, 12 U.S.C. ss. 2601 et seq.; the federal Truth in
41	Lending Act, as amended, 15 U.S.C. ss. 1601 et seq.; or any
42	regulations adopted under such acts.
43	(5) A principal loan originator of a mortgage lender is
44	subject to the disciplinary actions specified in subsection (2)
45	for violations of subsection (1) by a loan originator an
46	associate of a mortgage lender if there is a pattern of repeated
47	violations by the loan originator associate or if the principal
48	loan originator has knowledge of the violations.
49	Section 2. Section 494.00331, Florida Statutes, as amended
50	by chapter 2009-241, Laws of Florida, is amended to read:
51	494.00331 Loan originator employment.-
52	(1) An individual may not act as a loan originator unless
53	he or she is an employee of, or an independent contractor for, a
54	mortgage broker or a mortgage lender, and may not be employed by
55	or contract with more than one mortgage broker or mortgage
56	lender, or either simultaneously. However, this provision does
57	not apply to any licensed loan originator who acts solely as a
58	loan processor and contracts with more than one mortgage broker
59	or mortgage lender, or either simultaneously.
60	(2) For purposes of this section, the term "loan
61	processor" means an individual who is licensed as a loan
62	originator who engages only in:
63	(a) The receipt, collection, distribution, and analysis of
64	information common for the processing or underwriting of a
65	residential mortgage loan; or
66	(b) Communication with consumers to obtain the information
67	necessary for the processing or underwriting of a loan, to the
68	extent that such communication does not include offering or
69	negotiating loan rates or terms or does not include counseling
70	consumers about residential mortgage loan rates or terms.
71	(3) A person may not act as a loan processor unless the
72	person is licensed as a loan originator under this chapter and
73	has on file with the office a declaration of intent to engage
74	solely in loan processing. The declaration of intent must be on
75	such form as prescribed by the commission by rule.
76	(4) A loan originator that currently has a declaration of
77	intent to engage solely in loan processing on file with the
78	office may withdraw his or her declaration of intent to engage
79	solely in loan processing. The withdrawal of declaration of
80	intent must on such form as prescribed by commission rule.
81	(5) A declaration of intent or a withdrawal of declaration
82	of intent is effective upon receipt by the office.
83	(6) The fee earned by a loan processor may be paid to the
84	company that employs the loan processor without violating the
85	restriction in s. 494.0025(7) requiring fees or commissions to
86	be paid to a licensed mortgage broker or mortgage lender or a
87	person exempt from licensure under this chapter.
88	Section 3. Section 494.00335, Florida Statutes, is created
89	to read:
90	494.00335 Mobile home dealers.-
91	(1) A dealer, as defined in s. 320.77, is exempt from the
92	licensure requirements under s. 520.03 if the dealer holds a
93	mortgage broker or mortgage lender license issued under this
94	chapter and a dealer license issued under chapter 320 and
95	engages only in the sale of tangible personal property
96	dwellings.
97	(2) An employee of a dealer licensed as a mortgage broker
98	or mortgage lender who performs only administrative or clerical
99	tasks as described in s. 494.001(14) is not included in the
100	definition of the term "loan originator."
101	Section 4. Paragraph (c) of subsection (3) of section
102	494.0038, Florida Statutes, as amended by chapter 2009-241, Laws
103	of Florida, is amended to read:
104	494.0038 Loan origination and mortgage broker fees and
105	disclosures.-
106	(3) At the time a written mortgage broker agreement is
107	signed by the borrower or forwarded to the borrower for
108	signature, or at the time the mortgage broker business accepts
109	an application fee, credit report fee, property appraisal fee,
110	or any other third-party fee, but at least 3 business days
111	before execution of the closing or settlement statement, the
112	mortgage broker shall disclose in writing to any applicant for a
113	mortgage loan the following information:
114	(c) A good faith estimate, signed and dated by the
115	borrower, which discloses the total amount of each of the fees
116	the borrower may reasonably expect to pay if the loan is closed,
117	including, but not limited to, fees earned by the mortgage
118	broker, lender fees, third-party fees, and official fees,
119	together with the terms and conditions for obtaining a refund of
120	such fees, if any.
121	1. Any amount collected in excess of the actual cost shall
122	be returned within 60 days after rejection, withdrawal, or
123	closing.
124	2. At the time a The good faith estimate is provided to
125	the borrower, the loan originator must identify in writing the
126	recipient of all payments charged the borrower, which and,
127	except for all fees to be received by the mortgage broker, may
128	be disclosed in generic terms, such as, but not limited to, paid
129	to lender, appraiser, officials, title company, or any other
130	third-party service provider. This requirement does not supplant
131	or is not a substitute for the written mortgage broker agreement
132	described in subsection (1). The disclosure required under this
133	subparagraph must be signed and dated by the borrower.
134	Section 5. Subsection (4) of section 494.0067, Florida
135	Statutes, as amended by chapter 2009-241, Laws of Florida, is
136	amended to read:
137	494.0067 Requirements of mortgage lenders.-
138	(4) A mortgage lender shall report any changes in the
139	principal loan originator, any addition or subtraction of a
140	control person, or any change in the form of business
141	organization by written amendment in such form and at such time
142	that the commission specifies by rule.
143	(a) In any case in which a person or a group of persons,
144	directly or indirectly or acting by or through one or more
145	persons, proposes to purchase or acquire a controlling interest
146	in a licensee, such person or group must submit an initial
147	application for licensure as a mortgage lender before such
148	purchase or acquisition and at the time and in the form
149	prescribed by the commission by rule.
150	(b) Any addition of a control person who has not
151	previously filed a Uniform Mortgage Biographical Statement &
152	Consent Form, MU2, or has not previously complied with the
153	fingerprinting and credit report requirements of s. 494.00611 is
154	subject to the provisions of this section. If, after the
155	addition of a control person, the office determines that the
156	licensee does not continue to meet licensure requirements, the
157	office may bring administrative action in accordance with s.
158	494.00255 to enforce this section.
159	Section 6. This act shall take effect October 1, 2010.

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