Florida House Bill H1051

Florida 2022 Regular Session

• Introduced: 12/28/21
• Refer: 1/7/22
• Failed: 3/14/22

Caption

Servicers and Lenders of Residential Mortgage Loans

Impact

The bill impacts state laws by amending existing statutes to enforce stricter conditions under which mortgage servicers can initiate civil actions related to debt recovery and foreclosure. It also introduces new requirements for acknowledging applications from borrowers seeking alternatives to foreclosure, ensuring that they receive timely communications regarding their applications. This is expected to put more pressure on servicers to work collaboratively with borrowers before moving to legal action, thereby potentially decreasing the number of foreclosures.

Summary

House Bill 1051 introduces significant modifications to the regulations governing mortgage servicers and lenders in Florida. The bill aims to enhance transparency and communication in the process of handling residential mortgage loans, particularly in scenarios that could lead to foreclosure. Key provisions include the establishment of mandatory periodic statements for loans, clearly defined roles for 'single points of contact' within servicer organizations, and strict guidelines on how they interact with borrowers regarding loan modifications and foreclosure prevention alternatives.

Contention

Notable points of contention surrounding HB 1051 include concerns from some financial institutions about the potential increase in operational burdens that come with stricter compliance requirements. Insurers and insurance agents have also voiced criticisms regarding new regulations on lender-placed insurance, fearing that restrictions on certain practices and partnerships could negatively affect insurance premiums and availability for borrowers. Conversely, advocates for consumer protection argue that these measures are necessary to safeguard borrowers' rights and ensure that they are treated fairly during financially distressing times.