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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to servicers and lenders of 2
residential mortgage loans; amending s. 494.001, F.S.; 3
revising and providing definitions; creating s. 4
494.00163, F.S.; requiring periodic statements for 5
residential mortgage loans to follow specified laws; 6
providing exceptions to such laws; defining the term 7
"small mortgage servicer"; creating s. 494.00225, 8
F.S.; requiring mortgage servicers and mortgage 9
lenders to assume duties and obligations relating to 10
previously approved first lien loan modifications, 11
foreclosure prevention alternatives, and other loan 12
modifications under certain circumstances; creating s. 13
494.0027, F.S.; defining terms; prohibiting mortgage 14
servicers and mortgage lenders from commencing certain 15
civil actions, recording specified notices, and 16
conducting foreclosures of sale unless specified 17
conditions are met; requiring mortgage servicers and 18
mortgage lenders to establish single points of contact 19
and provide to borrowers direct means of communication 20
with the single points of contact upon requ est; 21
providing requirements and duties of single points of 22
contact; requiring mortgage servicers and mortgage 23
lenders to send written acknowledgment of application 24
receipt to foreclosure prevention alternative 25
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
applicants in specified manners within a speci fied 26
timeframe; providing requirements for statements, 27
documents, and information that mortgage servicers and 28
mortgage lenders must send to applicants under various 29
circumstances; providing timelines for mortgage 30
servicers and mortgage lenders to commence civil 31
actions against residential mortgage loan borrowers; 32
providing that mortgage servicers and mortgage lenders 33
are not required to evaluate foreclosure prevention 34
alternative applications under certain circumstances; 35
providing an exception; prohibiting mortgage servicers 36
and mortgage lenders from charging specified fees; 37
creating ss. 627.4055 and 635.0215, F.S.; defining 38
terms; prohibiting insurers and insurance agents from 39
engaging in certain acts relating to lender -placed 40
insurance for residential mort gage loan guaranty; 41
creating s. 702.013, F.S.; defining terms; prohibiting 42
mortgage servicers and mortgage lenders from 43
commencing certain civil actions, recording specified 44
notices, and conducting foreclosures of sale unless 45
specified conditions are met; requiring mortgage 46
servicers and mortgage lenders to establish single 47
points of contact and to provide to borrowers direct 48
means of communication with the single points of 49
contact upon request; providing requirements and 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
duties of single points of contact; requiring mortgage 51
servicers and mortgage lenders to send written 52
acknowledgment of application receipt to foreclosure 53
prevention alternative applicants in specified manners 54
within a specified timeframe; providing requirements 55
for statements, documents, a nd information that 56
mortgage servicers and mortgage lenders must send to 57
applicants under various circumstances; providing 58
timelines for mortgage servicers and mortgage lenders 59
to commence civil actions against residential mortgage 60
loan borrowers; providin g that mortgage servicers and 61
mortgage lenders are not required to evaluate 62
foreclosure prevention alternative applications under 63
certain circumstances; providing an exception; 64
prohibiting mortgage servicers and mortgage lenders 65
from charging specified fee s; amending ss. 494.00115 66
and 494.0025, F.S.; conforming cross -references; 67
providing an effective date. 68
69
Be It Enacted by the Legislature of the State of Florida: 70
71
Section 1. Subsections (12) through (26) and (27) through 72
(38) of section 494.001, F lorida Statutes, are renumbered as 73
subsections (13) through (27) and subsections (29) through (40), 74
respectively, subsection (1) of that section is amended, and new 75
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subsections (12) and (28) are added to that section, to read: 76
494.001 Definitions. —As used in this chapter, the term: 77
(1) "Borrower" means : 78
(a) A person obligated to repay a mortgage loan and 79
includes, but is not limited to, a coborrower or cosignor ; or 80
(b) A natural person who is a mortgagor under a 81
residential mortgage loan . 82
(12) "Foreclosure prevention alternative" means a 83
modification of a residential mortgage loan term. 84
(28) "Mortgage servicer" means a person or entity that 85
directly services, or is contracted as a subservicing agent to a 86
master servicer to service, a residential mortgage loan or 87
manages a residential mortgage loan, which services or 88
management may include, but is not limited to, the following 89
responsibilities: 90
(a) Interacting with the borrower; managing the borrower's 91
loan account daily, including, but not limit ed to, collecting 92
and crediting loan payments that include principals and 93
interests paid, and generating periodic billing and account 94
statements; and managing the borrower's escrow account, if 95
applicable; or 96
(b) Enforcing the note and security instrument as the 97
current owner of the promissory note or as the authorized agent 98
of the current owner of the promissory note. 99
Section 2. Section 494.00163, Florida Statutes, is created 100
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to read: 101
494.00163 Periodic statements for residential mortgage 102
loans; small mortgage servicers. —Periodic statements for 103
residential mortgage loans in the state must follow all the 104
provisions set forth in 12 C.F.R. s. 1026.41, except that a 105
reverse mortgage or a small mortgage servicer is not exempt from 106
the requirements of 12 C .F.R. s. 1026.41. As used in this 107
section, the term "small mortgage servicer" means a mortgage 108
servicer that, together with any affiliates, services up to 109
5,000 residential mortgage loans, all of which have the mortgage 110
servicer or its affiliate as the cre ditor or assignee. 111
Section 3. Section 494.00225, Florida Statutes, is created 112
to read: 113
494.00225 Residential mortgage loan modifications to avoid 114
foreclosure; transfers of duties and obligations of mortgage 115
servicers and mortgage lenders. —If a borrower of a residential 116
mortgage loan has been approved in writing for a first lien loan 117
modification, a foreclosure prevention alternative under s. 118
494.0027, or other loan modification to avoid foreclosure and if 119
the servicing of the borrower's mortgage loan is transferred or 120
sold, the mortgage servicer or mortgage lender to whom the 121
mortgage loan is transferred or sold shall assume all duties and 122
obligations related to such previously approved first lien loan 123
modification, foreclosure prevention alterna tive, or other loan 124
modification. 125
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Section 4. Section 494.0027, Florida Statutes, is created 126
to read: 127
494.0027 Foreclosure prevention alternatives for 128
residential mortgage loans. — 129
(1) As used in this section, the term: 130
(a) "Complete application" m eans an application for a 131
foreclosure prevention alternative for which the borrower has 132
provided all documents required by the mortgage servicer or 133
mortgage lender within the reasonable timeframe specified by the 134
mortgage servicer or mortgage lender. 135
(b) "Single point of contact" means a person who has, or a 136
team of personnel whose each member has, the ability, authority, 137
and responsibility to: 138
1. Communicate the process by which a borrower may apply 139
for an available foreclosure prevention alternative a nd the 140
deadline for any required submission to be considered for the 141
foreclosure prevention alternative. 142
2. Coordinate receipt of all documents associated with the 143
available foreclosure prevention alternatives and notify the 144
borrower of any missing docum ent necessary to complete an 145
application for a foreclosure prevention alternative. 146
3. Have access to current information and sufficient 147
personnel to timely, accurately, and adequately inform the 148
borrower of the current status of the foreclosure preventio n 149
alternative. 150
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4. Ensure that the borrower is considered for all 151
foreclosure prevention alternatives offered by, or through, the 152
mortgage servicer or mortgage lender and for which the borrower 153
is or may be eligible. 154
5. Have access to the person who has the ability and 155
authority to stop the foreclosure process when necessary. 156
(2)(a) A mortgage servicer or mortgage lender may not 157
commence a civil action for the recovery of any debt, or for the 158
enforcement of any right, under a residential mortgage loan 159
which is not barred by this chapter or chapter 702 or any other 160
provision of law, record a notice of default or a notice of 161
sale, or conduct a foreclosure sale, if a borrower submits an 162
application for a foreclosure prevention alternative offered by, 163
or through, the borrower's mortgage servicer or mortgage lender, 164
unless one of the following has occurred: 165
1. The borrower fails to submit all documents or 166
information required to complete the application within the 167
allotted timeframe authorized by the mortga ge servicer or 168
mortgage lender, which must be at least 30 calendar days after 169
the date of the initial acknowledgment of receipt of the 170
application sent to the borrower. 171
2. The mortgage servicer or mortgage lender makes a 172
written determination that the bo rrower is not eligible for a 173
foreclosure prevention alternative, and any appeal period under 174
subsection (5) has expired. 175
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3. The borrower does not accept a written offer for a 176
foreclosure prevention alternative within 30 calendar days after 177
the date of the offer. 178
4. The borrower accepts a written offer for a foreclosure 179
prevention alternative, but defaults on or otherwise breaches 180
the borrower's obligations under the foreclosure prevention 181
alternative. 182
(b)1. If a borrower requests a foreclosure prevent ion 183
alternative, the mortgage servicer or mortgage lender shall 184
promptly establish a single point of contact and provide to the 185
borrower one or more direct means of communication with the 186
single point of contact. 187
2. A single point of contact must remain assigned to the 188
borrower's account until the mortgage servicer or mortgage 189
lender determines that all foreclosure prevention alternatives 190
offered by, or through, the mortgage servicer or mortgage lender 191
have been exhausted or the borrower's account becomes current. 192
3. The mortgage servicer or mortgage lender shall ensure 193
that a single point of contact refers and transfers the borrower 194
to an appropriate supervisor upon the borrower's request, if the 195
single point of contact has a supervisor. 196
4. If the responsibilities of a single point of contact 197
are performed by a team of personnel, the mortgage servicer or 198
mortgage lender shall ensure that each member of the team is 199
knowledgeable about the borrower's situation and current status 200
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in the process of seeking a foreclosure prevention alternative. 201
(3) Within 7 business days after receiving an application 202
for a foreclosure prevention alternative or any document in 203
connection with a foreclosure prevention alternative application 204
for a residential mortgage loan, a mortgage servicer or mortgage 205
lender shall send to the borrower, by first -class mail or, if an 206
electronic mail address is provided, by electronic mail, written 207
acknowledgment of the receipt of the application or document. 208
(a) Upon receipt of an applic ation for a foreclosure 209
prevention alternative, the mortgage servicer or mortgage lender 210
shall include in the initial acknowledgment of receipt of the 211
application: 212
1. A description of the process for considering the 213
application, including, without limita tion, an estimate of when 214
a decision on the application will be made and the length of 215
time the borrower will have to consider an offer for a 216
foreclosure prevention alternative. 217
2. A statement of any deadlines that affect the processing 218
of an application for a foreclosure prevention alternative, 219
including, without limitation, the deadline for submitting any 220
missing document. 221
3. A statement of the expiration dates for any documents 222
submitted by the borrower. 223
(b) If a borrower submits an application for a foreclosure 224
prevention alternative but does not initially submit all the 225
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documents or information required to complete the application, 226
the mortgage servicer or mortgage lender shall include in the 227
initial acknowledgment of receipt of the application: 228
1. A statement of any deficiency in the borrower's 229
application and allow the borrower at least 30 calendar days to 230
submit any missing document or information required to complete 231
the application. 232
2. All the information required under subparagraphs (a)1. , 233
(a)2., and (a)3. 234
(4) If a borrower accepts an offer for a foreclosure 235
prevention alternative for a residential mortgage loan, the 236
mortgage servicer or mortgage lender shall provide the borrower 237
with a copy of the complete agreement of the foreclosure 238
prevention alternative signed by the mortgage lender or an agent 239
or authorized representative of the mortgage lender. 240
(5) If a borrower submits a complete application for a 241
foreclosure prevention alternative for a residential mortgage 242
loan and the borrower's application is denied, the mortgage 243
servicer or mortgage lender shall send to the borrower a written 244
statement of: 245
(a) The reason for the denial. 246
(b) The length of time the borrower has to request an 247
appeal of the denial, which must be at least 30 calendar days. 248
(c) Instructions regarding how to appeal the denial, 249
including, without limitation, how to provide evidence that the 250
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denial was in error. 251
(6) If a borrower of a residential mortgage loan submits a 252
complete application for a fore closure prevention alternative 253
and the borrower's application is denied, the mortgage servicer 254
or mortgage lender may not commence a civil action for the 255
recovery of any debt, or for the enforcement of any right, under 256
a residential mortgage loan which is not barred by this chapter 257
or chapter 702 or any other provision of law, record a notice of 258
default or a notice of sale, or conduct a foreclosure sale until 259
the later of: 260
(a) Sixty calendar days after the borrower is sent the 261
written statement required b y subsection (5); or 262
(b) If the borrower appeals the denial, the later of: 263
1. Fifteen calendar days after the denial of the appeal; 264
or 265
2. If the appeal is successful: 266
a. Fourteen calendar days after a foreclosure prevention 267
alternative offered afte r the appeal is declined by the 268
borrower; or 269
3. If a foreclosure prevention alternative offered after 270
the appeal is accepted, the date on which the borrower fails to 271
timely submit the first payment or otherwise breaches the terms 272
of the offer. 273
(7) A mortgage servicer or mortgage lender is not required 274
to evaluate a foreclosure prevention alternative application 275
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from a borrower of a residential mortgage loan who has already 276
been evaluated or afforded a fair opportunity to be evaluated 277
for a foreclosure prevention alternative or who has been 278
evaluated or afforded a fair opportunity to be evaluated 279
consistent with the requirements of this section, unless: 280
(a) There has been a material change in the borrower's 281
financial circumstances since the date of the borrower's 282
previous application. 283
(b) The change in paragraph (a) is documented by the 284
borrower and submitted to the mortgage servicer or mortgage 285
lender. 286
(8) A mortgage servicer or mortgage lender may not charge 287
or collect: 288
(a) An application fee, pr ocessing fee, or other fee for a 289
foreclosure prevention alternative; or 290
(b) Late fees for periods during which: 291
1. A foreclosure prevention alternative is under 292
consideration or a denial is being appealed; 293
2. The borrower is making timely payments un der a 294
foreclosure prevention alternative; or 295
3. A foreclosure prevention alternative is being evaluated 296
or exercised. 297
Section 5. Section 627.4055, Florida Statutes, is created 298
to read: 299
627.4055 Lender-placed insurance for residential mortgage 300
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loan guaranty.— 301
(1) As used in this section, the term: 302
(a) "Affiliate" has the same meaning as in s. 624.10. 303
(b) "Lender-placed insurance" means insurance obtained by 304
a mortgage servicer or mortgage lender when a borrower of a 305
residential mortgage loan do es not maintain valid or sufficient 306
insurance upon the mortgaged real property as required by the 307
terms of the mortgage agreement. 308
(c) "Mortgage servicer" has the same meaning as in s. 309
494.001. 310
(d) "Person affiliated" means an affiliate or affiliated 311
person, as the terms are defined in s. 624.10. 312
(2)(a) An insurer or insurance agent may not: 313
1. Issue lender-placed insurance on a mortgaged property 314
if the insurer or insurance agent or an affiliate of the insurer 315
or insurance agent owns, performs the servicing for, or owns the 316
servicing right to, the mortgaged property. 317
2. Except for payment to a mortgage lender for any loss 318
resulting from a mortgage default or property foreclosure: 319
a. Compensate any mortgage lender, insurer, investor, or 320
mortgage servicer, including, but not limited to, through 321
payment of commissions, on a lender -placed insurance policy 322
issued by the insurer or insurance agent. 323
b. Make any payment, including, but not limited to, 324
payment of expenses, to any mortgage lender, insure r, investor, 325
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or mortgage servicer for the purpose of securing lender -placed 326
insurance business or related outsourced services. 327
c. Share lender-placed insurance premium or risk with the 328
mortgage lender, investor, or mortgage servicer that obtained 329
the lender-placed insurance. 330
d. Offer contingent commissions, profit sharing, or other 331
payments dependent on profitability or loss ratios to any person 332
affiliated with lender -placed insurance. 333
(b) An insurer or insurance agent may not provide free or 334
below-cost outsourced services to a mortgage lender, insurance 335
producer, investor, or mortgage servicer or outsource its own 336
functions to a mortgage lender, insurance producer, investor, or 337
mortgage servicer on an above -cost basis. 338
Section 6. Section 635.0215, Florida Statutes, is created 339
to read: 340
635.0215 Lender-placed insurance for residential mortgage 341
loan guaranty.— 342
(1) As used in this section, the term: 343
(a) "Affiliate" has the same meaning as in s. 624.10. 344
(b) "Lender-placed insurance" has the same meaning as in 345
s. 627.4055(1). 346
(c) "Mortgage servicer" has the same meaning as in s. 347
494.001. 348
(d) "Person affiliated" means an affiliate or affiliated 349
person, as the terms are defined in s. 624.10. 350
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(2)(a) An insurer or insurance agent may not: 351
1. Issue lender-placed insurance on a mortgaged property 352
if the insurer or insurance agent or an affiliate of the insurer 353
or insurance agent owns, performs the servicing for, or owns the 354
servicing right to, the mortgaged property. 355
2. Except for payment to a mortgage lender for any loss 356
resulting from a mortgage default or property foreclosure: 357
a. Compensate any mortgage lender, insurer, investor, or 358
mortgage servicer, including, but not limited to, through 359
payment of commissions, on a lender -placed insurance policy 360
issued by the insurer or insurance agent. 361
b. Make any payment, including, but not limited to, 362
payment of expenses, to any mortgage lender, insurer, investor, 363
or mortgage servicer for the purpose of securing lender -placed 364
insurance business or re lated outsourced services. 365
c. Share lender-placed insurance premium or risk with the 366
mortgage lender, investor, or mortgage servicer that obtained 367
the lender-placed insurance. 368
d. Offer contingent commissions, profit sharing, or other 369
payments dependent on profitability or loss ratios to any person 370
affiliated with lender -placed insurance. 371
(b) An insurer or insurance agent may not provide free or 372
below-cost outsourced services to a mortgage lender, insurance 373
producer, investor, or mortgage servicer or outsource its own 374
functions to a mortgage lender, insurance producer, investor, or 375
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mortgage servicer on an above -cost basis. 376
Section 7. Section 702.013, Florida Statutes, is created 377
to read: 378
702.013 Foreclosure prevention alternatives for 379
residential mortgage loans. — 380
(1) As used in this section, the term: 381
(a) "Complete application" ha s the same meaning as in s. 382
494.0027(1). 383
(b) "Foreclosure prevention alternative" has the same 384
meaning as in s. 494.001. 385
(c) "Mortgage servicer" has the same meaning as in s. 386
494.001. 387
(d) "Single point of contact" has the same meaning as in 388
s. 494.0027(1). 389
(2)(a) A mortgage servicer or mortgage lender may not 390
commence a civil action for the recovery of any debt, or for the 391
enforcement of any right, under a residential mortgage loan 392
which is not barred by this chapter or chapter 494 or any other 393
provision of law, record a notice of default or a notice of 394
sale, or conduct a foreclosure sale, if a borrower submits an 395
application for a foreclosure prevention alternative offered by, 396
or through, the borrower's mortgage servicer or mortgage lender, 397
unless one of the following has occurred: 398
1. The borrower fails to submit all documents or 399
information required to complete the application within the 400
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allotted timeframe authorized by the mortgage servicer or 401
mortgage lender, which must be at least 30 calendar days after 402
the date of the initial acknowledgment of receipt of the 403
application sent to the borrower. 404
2. The mortgage servicer or mortgage lender makes a 405
written determination that the borrower is not eligible for a 406
foreclosure prevention alternative, an d any appeal period under 407
subsection (5) has expired. 408
3. The borrower does not accept a written offer for a 409
foreclosure prevention alternative within 30 calendar days after 410
the date of the offer. 411
4. The borrower accepts a written offer for a foreclosur e 412
prevention alternative, but defaults on or otherwise breaches 413
the borrower's obligations under the foreclosure prevention 414
alternative. 415
(b)1. If a borrower requests a foreclosure prevention 416
alternative, the mortgage servicer or mortgage lender shall 417
promptly establish a single point of contact and provide to the 418
borrower one or more direct means of communication with the 419
single point of contact. 420
2. A single point of contact must remain assigned to the 421
borrower's account until the mortgage servicer or m ortgage 422
lender determines that all foreclosure prevention alternatives 423
offered by, or through, the mortgage servicer or mortgage lender 424
have been exhausted or the borrower's account becomes current. 425
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3. The mortgage servicer or mortgage lender shall ensur e 426
that a single point of contact refers and transfers the borrower 427
to an appropriate supervisor upon the borrower's request, if the 428
single point of contact has a supervisor. 429
4. If the responsibilities of a single point of contact 430
are performed by a team of personnel, the mortgage servicer or 431
mortgage lender shall ensure that each member of the team is 432
knowledgeable about the borrower's situation and current status 433
in the process of seeking a foreclosure prevention alternative. 434
(3) Within 7 business days after receiving an application 435
for a foreclosure prevention alternative or any document in 436
connection with a foreclosure prevention alternative application 437
for a residential mortgage loan, a mortgage servicer or mortgage 438
lender shall send to the borrower, by first-class mail or, if an 439
electronic mail address is provided, by electronic mail, written 440
acknowledgment of the receipt of the application or document. 441
(a) Upon receipt of an application for a foreclosure 442
prevention alternative, the mortgage servic er or mortgage lender 443
shall include in the initial acknowledgment of receipt of the 444
application: 445
1. A description of the process for considering the 446
application, including, without limitation, an estimate of when 447
a decision on the application will be mad e and the length of 448
time the borrower will have to consider an offer for a 449
foreclosure prevention alternative. 450
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2. A statement of any deadlines that affect the processing 451
of an application for a foreclosure prevention alternative, 452
including, without limit ation, the deadline for submitting any 453
missing document. 454
3. A statement of the expiration dates for any documents 455
submitted by the borrower. 456
(b) If a borrower submits an application for a foreclosure 457
prevention alternative but does not initially submit all the 458
documents or information required to complete the application, 459
the mortgage servicer or mortgage lender shall include in the 460
initial acknowledgment of receipt of the application: 461
1. A statement of any deficiency in the borrower's 462
application and allow the borrower at least 30 calendar days to 463
submit any document or information required to complete the 464
application. 465
2. All the information required under subparagraphs (a)1., 466
(a)2., and (a)3. 467
(4) If a borrower accepts an offer for a foreclosure 468
prevention alternative for a residential mortgage loan, the 469
mortgage servicer or mortgage lender shall provide the borrower 470
with a copy of the complete agreement of the foreclosure 471
prevention alternative signed by the mortgage lender or an agent 472
or authorized representative of the mortgage lender. 473
(5) If a borrower submits a complete application for a 474
foreclosure prevention alternative for a residential mortgage 475
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loan and the borrower's application is denied, the mortgage 476
servicer or mortgage lender shall s end to the borrower a written 477
statement of: 478
(a) The reason for the denial. 479
(b) The length of time the borrower has to request an 480
appeal of the denial, which must be at least 30 calendar days. 481
(c) Instructions regarding how to appeal the denial, 482
including, without limitation, how to provide evidence that the 483
denial was in error. 484
(6) If a borrower of a residential mortgage loan submits a 485
complete application for a foreclosure prevention alternative 486
and the borrower's application is denied, the mortgag e servicer 487
or mortgage lender may not commence a civil action for the 488
recovery of any debt, or for the enforcement of any right, under 489
a residential mortgage loan which is not barred by this chapter 490
or chapter 494 or any other provision of law, record a no tice of 491
default or a notice of sale, or conduct a foreclosure sale until 492
the later of: 493
(a) Sixty calendar days after the borrower is sent the 494
written statement required by subsection (5); or 495
(b) If the borrower appeals the denial, the later of: 496
1. Fifteen calendar days after the denial of the appeal; 497
or 498
2. If the appeal is successful: 499
a. Fourteen calendar days after a foreclosure prevention 500
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alternative offered after the appeal is declined by the 501
borrower; or 502
3. If a foreclosure prevention altern ative offered after 503
the appeal is accepted, the date on which the borrower fails to 504
timely submit the first payment or otherwise breaches the terms 505
of the offer. 506
(7) A mortgage servicer or mortgage lender is not required 507
to evaluate a foreclosure prevent ion alternative application 508
from a borrower of a residential mortgage loan who has already 509
been evaluated or afforded a fair opportunity to be evaluated 510
for a foreclosure prevention alternative or who has been 511
evaluated or afforded a fair opportunity to be evaluated 512
consistent with the requirements of this section, unless: 513
(a) There has been a material change in the borrower's 514
financial circumstances since the date of the borrower's 515
previous application. 516
(b) The change in paragraph (a) is documented by the 517
borrower and submitted to the mortgage servicer or mortgage 518
lender. 519
(8) A mortgage servicer or mortgage lender may not charge 520
or collect: 521
(a) Application fee, processing fee, or other fee for a 522
foreclosure prevention alternative; or 523
(b) Late fees for periods during which: 524
1. A foreclosure prevention alternative is under 525
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consideration or a denial is being appealed; 526
2. The borrower is making timely payments under a 527
foreclosure prevention alternative; or 528
3. A foreclosure prevention alternative is being evaluated 529
or exercised. 530
Section 8. Paragraphs (a), (b), and (c) of subsection (5) 531
of section 494.00115, Florida Statutes, are amended to read: 532
494.00115 Exemptions. — 533
(5) As used in this section, the term "hold himself or 534
herself out to the public as being in the mortgage lending 535
business" includes any of the following: 536
(a) Representing to the public, through advertising or 537
other means of communicating or providing information, including 538
the use of business cards, stationery, brochures, si gns, rate 539
lists, or promotional items, by any method, that such individual 540
can or will perform the activities described in s. 494.001(25) 541
s. 494.001(24). 542
(b) Soliciting in a manner that would lead the intended 543
audience to reasonably believe that such individual is in the 544
business of performing the activities described in s. 545
494.001(25) s. 494.001(24). 546
(c) Maintaining a commercial business establishment a t 547
which, or premises from which, such individual regularly 548
performs the activities described in s. 494.001(25) s. 549
494.001(24) or regularly meets with current or prospective 550
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mortgage borrowers. 551
Section 9. Paragraph (d) of subsection (4) of section 552
494.0025, Florida Statutes, is amended to read: 553
494.0025 Prohibited practices. —It is unlawful for any 554
person: 555
(4) In any practice or transaction or course of business 556
relating to the sale, purchase, negotiation, promotion, 557
advertisement, or hypothecation of mortgage loan transactions, 558
directly or indirectly: 559
(d) To misrepresent a residential mortgage loan, as 560
described in s. 494.001(26)(a) s. 494.001(25)(a), as a business 561
purpose loan. 562
Section 10. This act shall take effect July 1, 2022. 563