Florida 2022 Regular Session

Florida House Bill H1051 Compare Versions

Only one version of the bill is available at this time.

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3	3	HB 1051 2022
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7	7	CODING: Words stricken are deletions; words underlined are additions.
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10	10	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
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14	14	A bill to be entitled 1
15	15	An act relating to servicers and lenders of 2
16	16	residential mortgage loans; amending s. 494.001, F.S.; 3
17	17	revising and providing definitions; creating s. 4
18	18	494.00163, F.S.; requiring periodic statements for 5
19	19	residential mortgage loans to follow specified laws; 6
20	20	providing exceptions to such laws; defining the term 7
21	21	"small mortgage servicer"; creating s. 494.00225, 8
22	22	F.S.; requiring mortgage servicers and mortgage 9
23	23	lenders to assume duties and obligations relating to 10
24	24	previously approved first lien loan modifications, 11
25	25	foreclosure prevention alternatives, and other loan 12
26	26	modifications under certain circumstances; creating s. 13
27	27	494.0027, F.S.; defining terms; prohibiting mortgage 14
28	28	servicers and mortgage lenders from commencing certain 15
29	29	civil actions, recording specified notices, and 16
30	30	conducting foreclosures of sale unless specified 17
31	31	conditions are met; requiring mortgage servicers and 18
32	32	mortgage lenders to establish single points of contact 19
33	33	and provide to borrowers direct means of communication 20
34	34	with the single points of contact upon requ est; 21
35	35	providing requirements and duties of single points of 22
36	36	contact; requiring mortgage servicers and mortgage 23
37	37	lenders to send written acknowledgment of application 24
38	38	receipt to foreclosure prevention alternative 25
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40	40	HB 1051 2022
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47	47	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
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49	49
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51	51	applicants in specified manners within a speci fied 26
52	52	timeframe; providing requirements for statements, 27
53	53	documents, and information that mortgage servicers and 28
54	54	mortgage lenders must send to applicants under various 29
55	55	circumstances; providing timelines for mortgage 30
56	56	servicers and mortgage lenders to commence civil 31
57	57	actions against residential mortgage loan borrowers; 32
58	58	providing that mortgage servicers and mortgage lenders 33
59	59	are not required to evaluate foreclosure prevention 34
60	60	alternative applications under certain circumstances; 35
61	61	providing an exception; prohibiting mortgage servicers 36
62	62	and mortgage lenders from charging specified fees; 37
63	63	creating ss. 627.4055 and 635.0215, F.S.; defining 38
64	64	terms; prohibiting insurers and insurance agents from 39
65	65	engaging in certain acts relating to lender -placed 40
66	66	insurance for residential mort gage loan guaranty; 41
67	67	creating s. 702.013, F.S.; defining terms; prohibiting 42
68	68	mortgage servicers and mortgage lenders from 43
69	69	commencing certain civil actions, recording specified 44
70	70	notices, and conducting foreclosures of sale unless 45
71	71	specified conditions are met; requiring mortgage 46
72	72	servicers and mortgage lenders to establish single 47
73	73	points of contact and to provide to borrowers direct 48
74	74	means of communication with the single points of 49
75	75	contact upon request; providing requirements and 50
76	76
77	77	HB 1051 2022
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81	81	CODING: Words stricken are deletions; words underlined are additions.
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84	84	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
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86	86
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88	88	duties of single points of contact; requiring mortgage 51
89	89	servicers and mortgage lenders to send written 52
90	90	acknowledgment of application receipt to foreclosure 53
91	91	prevention alternative applicants in specified manners 54
92	92	within a specified timeframe; providing requirements 55
93	93	for statements, documents, a nd information that 56
94	94	mortgage servicers and mortgage lenders must send to 57
95	95	applicants under various circumstances; providing 58
96	96	timelines for mortgage servicers and mortgage lenders 59
97	97	to commence civil actions against residential mortgage 60
98	98	loan borrowers; providin g that mortgage servicers and 61
99	99	mortgage lenders are not required to evaluate 62
100	100	foreclosure prevention alternative applications under 63
101	101	certain circumstances; providing an exception; 64
102	102	prohibiting mortgage servicers and mortgage lenders 65
103	103	from charging specified fee s; amending ss. 494.00115 66
104	104	and 494.0025, F.S.; conforming cross -references; 67
105	105	providing an effective date. 68
106	106	69
107	107	Be It Enacted by the Legislature of the State of Florida: 70
108	108	71
109	109	Section 1. Subsections (12) through (26) and (27) through 72
110	110	(38) of section 494.001, F lorida Statutes, are renumbered as 73
111	111	subsections (13) through (27) and subsections (29) through (40), 74
112	112	respectively, subsection (1) of that section is amended, and new 75
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121	121	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
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125	125	subsections (12) and (28) are added to that section, to read: 76
126	126	494.001 Definitions. —As used in this chapter, the term: 77
127	127	(1) "Borrower" means : 78
128	128	(a) A person obligated to repay a mortgage loan and 79
129	129	includes, but is not limited to, a coborrower or cosignor ; or 80
130	130	(b) A natural person who is a mortgagor under a 81
131	131	residential mortgage loan . 82
132	132	(12) "Foreclosure prevention alternative" means a 83
133	133	modification of a residential mortgage loan term. 84
134	134	(28) "Mortgage servicer" means a person or entity that 85
135	135	directly services, or is contracted as a subservicing agent to a 86
136	136	master servicer to service, a residential mortgage loan or 87
137	137	manages a residential mortgage loan, which services or 88
138	138	management may include, but is not limited to, the following 89
139	139	responsibilities: 90
140	140	(a) Interacting with the borrower; managing the borrower's 91
141	141	loan account daily, including, but not limit ed to, collecting 92
142	142	and crediting loan payments that include principals and 93
143	143	interests paid, and generating periodic billing and account 94
144	144	statements; and managing the borrower's escrow account, if 95
145	145	applicable; or 96
146	146	(b) Enforcing the note and security instrument as the 97
147	147	current owner of the promissory note or as the authorized agent 98
148	148	of the current owner of the promissory note. 99
149	149	Section 2. Section 494.00163, Florida Statutes, is created 100
150	150
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158	158	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
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160	160
161	161
162	162	to read: 101
163	163	494.00163 Periodic statements for residential mortgage 102
164	164	loans; small mortgage servicers. —Periodic statements for 103
165	165	residential mortgage loans in the state must follow all the 104
166	166	provisions set forth in 12 C.F.R. s. 1026.41, except that a 105
167	167	reverse mortgage or a small mortgage servicer is not exempt from 106
168	168	the requirements of 12 C .F.R. s. 1026.41. As used in this 107
169	169	section, the term "small mortgage servicer" means a mortgage 108
170	170	servicer that, together with any affiliates, services up to 109
171	171	5,000 residential mortgage loans, all of which have the mortgage 110
172	172	servicer or its affiliate as the cre ditor or assignee. 111
173	173	Section 3. Section 494.00225, Florida Statutes, is created 112
174	174	to read: 113
175	175	494.00225 Residential mortgage loan modifications to avoid 114
176	176	foreclosure; transfers of duties and obligations of mortgage 115
177	177	servicers and mortgage lenders. —If a borrower of a residential 116
178	178	mortgage loan has been approved in writing for a first lien loan 117
179	179	modification, a foreclosure prevention alternative under s. 118
180	180	494.0027, or other loan modification to avoid foreclosure and if 119
181	181	the servicing of the borrower's mortgage loan is transferred or 120
182	182	sold, the mortgage servicer or mortgage lender to whom the 121
183	183	mortgage loan is transferred or sold shall assume all duties and 122
184	184	obligations related to such previously approved first lien loan 123
185	185	modification, foreclosure prevention alterna tive, or other loan 124
186	186	modification. 125
187	187
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195	195	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
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199	199	Section 4. Section 494.0027, Florida Statutes, is created 126
200	200	to read: 127
201	201	494.0027 Foreclosure prevention alternatives for 128
202	202	residential mortgage loans. — 129
203	203	(1) As used in this section, the term: 130
204	204	(a) "Complete application" m eans an application for a 131
205	205	foreclosure prevention alternative for which the borrower has 132
206	206	provided all documents required by the mortgage servicer or 133
207	207	mortgage lender within the reasonable timeframe specified by the 134
208	208	mortgage servicer or mortgage lender. 135
209	209	(b) "Single point of contact" means a person who has, or a 136
210	210	team of personnel whose each member has, the ability, authority, 137
211	211	and responsibility to: 138
212	212	1. Communicate the process by which a borrower may apply 139
213	213	for an available foreclosure prevention alternative a nd the 140
214	214	deadline for any required submission to be considered for the 141
215	215	foreclosure prevention alternative. 142
216	216	2. Coordinate receipt of all documents associated with the 143
217	217	available foreclosure prevention alternatives and notify the 144
218	218	borrower of any missing docum ent necessary to complete an 145
219	219	application for a foreclosure prevention alternative. 146
220	220	3. Have access to current information and sufficient 147
221	221	personnel to timely, accurately, and adequately inform the 148
222	222	borrower of the current status of the foreclosure preventio n 149
223	223	alternative. 150
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232	232	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
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236	236	4. Ensure that the borrower is considered for all 151
237	237	foreclosure prevention alternatives offered by, or through, the 152
238	238	mortgage servicer or mortgage lender and for which the borrower 153
239	239	is or may be eligible. 154
240	240	5. Have access to the person who has the ability and 155
241	241	authority to stop the foreclosure process when necessary. 156
242	242	(2)(a) A mortgage servicer or mortgage lender may not 157
243	243	commence a civil action for the recovery of any debt, or for the 158
244	244	enforcement of any right, under a residential mortgage loan 159
245	245	which is not barred by this chapter or chapter 702 or any other 160
246	246	provision of law, record a notice of default or a notice of 161
247	247	sale, or conduct a foreclosure sale, if a borrower submits an 162
248	248	application for a foreclosure prevention alternative offered by, 163
249	249	or through, the borrower's mortgage servicer or mortgage lender, 164
250	250	unless one of the following has occurred: 165
251	251	1. The borrower fails to submit all documents or 166
252	252	information required to complete the application within the 167
253	253	allotted timeframe authorized by the mortga ge servicer or 168
254	254	mortgage lender, which must be at least 30 calendar days after 169
255	255	the date of the initial acknowledgment of receipt of the 170
256	256	application sent to the borrower. 171
257	257	2. The mortgage servicer or mortgage lender makes a 172
258	258	written determination that the bo rrower is not eligible for a 173
259	259	foreclosure prevention alternative, and any appeal period under 174
260	260	subsection (5) has expired. 175
261	261
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269	269	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
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273	273	3. The borrower does not accept a written offer for a 176
274	274	foreclosure prevention alternative within 30 calendar days after 177
275	275	the date of the offer. 178
276	276	4. The borrower accepts a written offer for a foreclosure 179
277	277	prevention alternative, but defaults on or otherwise breaches 180
278	278	the borrower's obligations under the foreclosure prevention 181
279	279	alternative. 182
280	280	(b)1. If a borrower requests a foreclosure prevent ion 183
281	281	alternative, the mortgage servicer or mortgage lender shall 184
282	282	promptly establish a single point of contact and provide to the 185
283	283	borrower one or more direct means of communication with the 186
284	284	single point of contact. 187
285	285	2. A single point of contact must remain assigned to the 188
286	286	borrower's account until the mortgage servicer or mortgage 189
287	287	lender determines that all foreclosure prevention alternatives 190
288	288	offered by, or through, the mortgage servicer or mortgage lender 191
289	289	have been exhausted or the borrower's account becomes current. 192
290	290	3. The mortgage servicer or mortgage lender shall ensure 193
291	291	that a single point of contact refers and transfers the borrower 194
292	292	to an appropriate supervisor upon the borrower's request, if the 195
293	293	single point of contact has a supervisor. 196
294	294	4. If the responsibilities of a single point of contact 197
295	295	are performed by a team of personnel, the mortgage servicer or 198
296	296	mortgage lender shall ensure that each member of the team is 199
297	297	knowledgeable about the borrower's situation and current status 200
298	298
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306	306	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
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308	308
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310	310	in the process of seeking a foreclosure prevention alternative. 201
311	311	(3) Within 7 business days after receiving an application 202
312	312	for a foreclosure prevention alternative or any document in 203
313	313	connection with a foreclosure prevention alternative application 204
314	314	for a residential mortgage loan, a mortgage servicer or mortgage 205
315	315	lender shall send to the borrower, by first -class mail or, if an 206
316	316	electronic mail address is provided, by electronic mail, written 207
317	317	acknowledgment of the receipt of the application or document. 208
318	318	(a) Upon receipt of an applic ation for a foreclosure 209
319	319	prevention alternative, the mortgage servicer or mortgage lender 210
320	320	shall include in the initial acknowledgment of receipt of the 211
321	321	application: 212
322	322	1. A description of the process for considering the 213
323	323	application, including, without limita tion, an estimate of when 214
324	324	a decision on the application will be made and the length of 215
325	325	time the borrower will have to consider an offer for a 216
326	326	foreclosure prevention alternative. 217
327	327	2. A statement of any deadlines that affect the processing 218
328	328	of an application for a foreclosure prevention alternative, 219
329	329	including, without limitation, the deadline for submitting any 220
330	330	missing document. 221
331	331	3. A statement of the expiration dates for any documents 222
332	332	submitted by the borrower. 223
333	333	(b) If a borrower submits an application for a foreclosure 224
334	334	prevention alternative but does not initially submit all the 225
335	335
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343	343	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
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345	345
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347	347	documents or information required to complete the application, 226
348	348	the mortgage servicer or mortgage lender shall include in the 227
349	349	initial acknowledgment of receipt of the application: 228
350	350	1. A statement of any deficiency in the borrower's 229
351	351	application and allow the borrower at least 30 calendar days to 230
352	352	submit any missing document or information required to complete 231
353	353	the application. 232
354	354	2. All the information required under subparagraphs (a)1. , 233
355	355	(a)2., and (a)3. 234
356	356	(4) If a borrower accepts an offer for a foreclosure 235
357	357	prevention alternative for a residential mortgage loan, the 236
358	358	mortgage servicer or mortgage lender shall provide the borrower 237
359	359	with a copy of the complete agreement of the foreclosure 238
360	360	prevention alternative signed by the mortgage lender or an agent 239
361	361	or authorized representative of the mortgage lender. 240
362	362	(5) If a borrower submits a complete application for a 241
363	363	foreclosure prevention alternative for a residential mortgage 242
364	364	loan and the borrower's application is denied, the mortgage 243
365	365	servicer or mortgage lender shall send to the borrower a written 244
366	366	statement of: 245
367	367	(a) The reason for the denial. 246
368	368	(b) The length of time the borrower has to request an 247
369	369	appeal of the denial, which must be at least 30 calendar days. 248
370	370	(c) Instructions regarding how to appeal the denial, 249
371	371	including, without limitation, how to provide evidence that the 250
372	372
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380	380	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
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382	382
383	383
384	384	denial was in error. 251
385	385	(6) If a borrower of a residential mortgage loan submits a 252
386	386	complete application for a fore closure prevention alternative 253
387	387	and the borrower's application is denied, the mortgage servicer 254
388	388	or mortgage lender may not commence a civil action for the 255
389	389	recovery of any debt, or for the enforcement of any right, under 256
390	390	a residential mortgage loan which is not barred by this chapter 257
391	391	or chapter 702 or any other provision of law, record a notice of 258
392	392	default or a notice of sale, or conduct a foreclosure sale until 259
393	393	the later of: 260
394	394	(a) Sixty calendar days after the borrower is sent the 261
395	395	written statement required b y subsection (5); or 262
396	396	(b) If the borrower appeals the denial, the later of: 263
397	397	1. Fifteen calendar days after the denial of the appeal; 264
398	398	or 265
399	399	2. If the appeal is successful: 266
400	400	a. Fourteen calendar days after a foreclosure prevention 267
401	401	alternative offered afte r the appeal is declined by the 268
402	402	borrower; or 269
403	403	3. If a foreclosure prevention alternative offered after 270
404	404	the appeal is accepted, the date on which the borrower fails to 271
405	405	timely submit the first payment or otherwise breaches the terms 272
406	406	of the offer. 273
407	407	(7) A mortgage servicer or mortgage lender is not required 274
408	408	to evaluate a foreclosure prevention alternative application 275
409	409
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417	417	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
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421	421	from a borrower of a residential mortgage loan who has already 276
422	422	been evaluated or afforded a fair opportunity to be evaluated 277
423	423	for a foreclosure prevention alternative or who has been 278
424	424	evaluated or afforded a fair opportunity to be evaluated 279
425	425	consistent with the requirements of this section, unless: 280
426	426	(a) There has been a material change in the borrower's 281
427	427	financial circumstances since the date of the borrower's 282
428	428	previous application. 283
429	429	(b) The change in paragraph (a) is documented by the 284
430	430	borrower and submitted to the mortgage servicer or mortgage 285
431	431	lender. 286
432	432	(8) A mortgage servicer or mortgage lender may not charge 287
433	433	or collect: 288
434	434	(a) An application fee, pr ocessing fee, or other fee for a 289
435	435	foreclosure prevention alternative; or 290
436	436	(b) Late fees for periods during which: 291
437	437	1. A foreclosure prevention alternative is under 292
438	438	consideration or a denial is being appealed; 293
439	439	2. The borrower is making timely payments un der a 294
440	440	foreclosure prevention alternative; or 295
441	441	3. A foreclosure prevention alternative is being evaluated 296
442	442	or exercised. 297
443	443	Section 5. Section 627.4055, Florida Statutes, is created 298
444	444	to read: 299
445	445	627.4055 Lender-placed insurance for residential mortgage 300
446	446
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454	454	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
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458	458	loan guaranty.— 301
459	459	(1) As used in this section, the term: 302
460	460	(a) "Affiliate" has the same meaning as in s. 624.10. 303
461	461	(b) "Lender-placed insurance" means insurance obtained by 304
462	462	a mortgage servicer or mortgage lender when a borrower of a 305
463	463	residential mortgage loan do es not maintain valid or sufficient 306
464	464	insurance upon the mortgaged real property as required by the 307
465	465	terms of the mortgage agreement. 308
466	466	(c) "Mortgage servicer" has the same meaning as in s. 309
467	467	494.001. 310
468	468	(d) "Person affiliated" means an affiliate or affiliated 311
469	469	person, as the terms are defined in s. 624.10. 312
470	470	(2)(a) An insurer or insurance agent may not: 313
471	471	1. Issue lender-placed insurance on a mortgaged property 314
472	472	if the insurer or insurance agent or an affiliate of the insurer 315
473	473	or insurance agent owns, performs the servicing for, or owns the 316
474	474	servicing right to, the mortgaged property. 317
475	475	2. Except for payment to a mortgage lender for any loss 318
476	476	resulting from a mortgage default or property foreclosure: 319
477	477	a. Compensate any mortgage lender, insurer, investor, or 320
478	478	mortgage servicer, including, but not limited to, through 321
479	479	payment of commissions, on a lender -placed insurance policy 322
480	480	issued by the insurer or insurance agent. 323
481	481	b. Make any payment, including, but not limited to, 324
482	482	payment of expenses, to any mortgage lender, insure r, investor, 325
483	483
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491	491	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
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493	493
494	494
495	495	or mortgage servicer for the purpose of securing lender -placed 326
496	496	insurance business or related outsourced services. 327
497	497	c. Share lender-placed insurance premium or risk with the 328
498	498	mortgage lender, investor, or mortgage servicer that obtained 329
499	499	the lender-placed insurance. 330
500	500	d. Offer contingent commissions, profit sharing, or other 331
501	501	payments dependent on profitability or loss ratios to any person 332
502	502	affiliated with lender -placed insurance. 333
503	503	(b) An insurer or insurance agent may not provide free or 334
504	504	below-cost outsourced services to a mortgage lender, insurance 335
505	505	producer, investor, or mortgage servicer or outsource its own 336
506	506	functions to a mortgage lender, insurance producer, investor, or 337
507	507	mortgage servicer on an above -cost basis. 338
508	508	Section 6. Section 635.0215, Florida Statutes, is created 339
509	509	to read: 340
510	510	635.0215 Lender-placed insurance for residential mortgage 341
511	511	loan guaranty.— 342
512	512	(1) As used in this section, the term: 343
513	513	(a) "Affiliate" has the same meaning as in s. 624.10. 344
514	514	(b) "Lender-placed insurance" has the same meaning as in 345
515	515	s. 627.4055(1). 346
516	516	(c) "Mortgage servicer" has the same meaning as in s. 347
517	517	494.001. 348
518	518	(d) "Person affiliated" means an affiliate or affiliated 349
519	519	person, as the terms are defined in s. 624.10. 350
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528	528	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
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532	532	(2)(a) An insurer or insurance agent may not: 351
533	533	1. Issue lender-placed insurance on a mortgaged property 352
534	534	if the insurer or insurance agent or an affiliate of the insurer 353
535	535	or insurance agent owns, performs the servicing for, or owns the 354
536	536	servicing right to, the mortgaged property. 355
537	537	2. Except for payment to a mortgage lender for any loss 356
538	538	resulting from a mortgage default or property foreclosure: 357
539	539	a. Compensate any mortgage lender, insurer, investor, or 358
540	540	mortgage servicer, including, but not limited to, through 359
541	541	payment of commissions, on a lender -placed insurance policy 360
542	542	issued by the insurer or insurance agent. 361
543	543	b. Make any payment, including, but not limited to, 362
544	544	payment of expenses, to any mortgage lender, insurer, investor, 363
545	545	or mortgage servicer for the purpose of securing lender -placed 364
546	546	insurance business or re lated outsourced services. 365
547	547	c. Share lender-placed insurance premium or risk with the 366
548	548	mortgage lender, investor, or mortgage servicer that obtained 367
549	549	the lender-placed insurance. 368
550	550	d. Offer contingent commissions, profit sharing, or other 369
551	551	payments dependent on profitability or loss ratios to any person 370
552	552	affiliated with lender -placed insurance. 371
553	553	(b) An insurer or insurance agent may not provide free or 372
554	554	below-cost outsourced services to a mortgage lender, insurance 373
555	555	producer, investor, or mortgage servicer or outsource its own 374
556	556	functions to a mortgage lender, insurance producer, investor, or 375
557	557
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565	565	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
566	566
567	567
568	568
569	569	mortgage servicer on an above -cost basis. 376
570	570	Section 7. Section 702.013, Florida Statutes, is created 377
571	571	to read: 378
572	572	702.013 Foreclosure prevention alternatives for 379
573	573	residential mortgage loans. — 380
574	574	(1) As used in this section, the term: 381
575	575	(a) "Complete application" ha s the same meaning as in s. 382
576	576	494.0027(1). 383
577	577	(b) "Foreclosure prevention alternative" has the same 384
578	578	meaning as in s. 494.001. 385
579	579	(c) "Mortgage servicer" has the same meaning as in s. 386
580	580	494.001. 387
581	581	(d) "Single point of contact" has the same meaning as in 388
582	582	s. 494.0027(1). 389
583	583	(2)(a) A mortgage servicer or mortgage lender may not 390
584	584	commence a civil action for the recovery of any debt, or for the 391
585	585	enforcement of any right, under a residential mortgage loan 392
586	586	which is not barred by this chapter or chapter 494 or any other 393
587	587	provision of law, record a notice of default or a notice of 394
588	588	sale, or conduct a foreclosure sale, if a borrower submits an 395
589	589	application for a foreclosure prevention alternative offered by, 396
590	590	or through, the borrower's mortgage servicer or mortgage lender, 397
591	591	unless one of the following has occurred: 398
592	592	1. The borrower fails to submit all documents or 399
593	593	information required to complete the application within the 400
594	594
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602	602	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
603	603
604	604
605	605
606	606	allotted timeframe authorized by the mortgage servicer or 401
607	607	mortgage lender, which must be at least 30 calendar days after 402
608	608	the date of the initial acknowledgment of receipt of the 403
609	609	application sent to the borrower. 404
610	610	2. The mortgage servicer or mortgage lender makes a 405
611	611	written determination that the borrower is not eligible for a 406
612	612	foreclosure prevention alternative, an d any appeal period under 407
613	613	subsection (5) has expired. 408
614	614	3. The borrower does not accept a written offer for a 409
615	615	foreclosure prevention alternative within 30 calendar days after 410
616	616	the date of the offer. 411
617	617	4. The borrower accepts a written offer for a foreclosur e 412
618	618	prevention alternative, but defaults on or otherwise breaches 413
619	619	the borrower's obligations under the foreclosure prevention 414
620	620	alternative. 415
621	621	(b)1. If a borrower requests a foreclosure prevention 416
622	622	alternative, the mortgage servicer or mortgage lender shall 417
623	623	promptly establish a single point of contact and provide to the 418
624	624	borrower one or more direct means of communication with the 419
625	625	single point of contact. 420
626	626	2. A single point of contact must remain assigned to the 421
627	627	borrower's account until the mortgage servicer or m ortgage 422
628	628	lender determines that all foreclosure prevention alternatives 423
629	629	offered by, or through, the mortgage servicer or mortgage lender 424
630	630	have been exhausted or the borrower's account becomes current. 425
631	631
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639	639	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
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641	641
642	642
643	643	3. The mortgage servicer or mortgage lender shall ensur e 426
644	644	that a single point of contact refers and transfers the borrower 427
645	645	to an appropriate supervisor upon the borrower's request, if the 428
646	646	single point of contact has a supervisor. 429
647	647	4. If the responsibilities of a single point of contact 430
648	648	are performed by a team of personnel, the mortgage servicer or 431
649	649	mortgage lender shall ensure that each member of the team is 432
650	650	knowledgeable about the borrower's situation and current status 433
651	651	in the process of seeking a foreclosure prevention alternative. 434
652	652	(3) Within 7 business days after receiving an application 435
653	653	for a foreclosure prevention alternative or any document in 436
654	654	connection with a foreclosure prevention alternative application 437
655	655	for a residential mortgage loan, a mortgage servicer or mortgage 438
656	656	lender shall send to the borrower, by first-class mail or, if an 439
657	657	electronic mail address is provided, by electronic mail, written 440
658	658	acknowledgment of the receipt of the application or document. 441
659	659	(a) Upon receipt of an application for a foreclosure 442
660	660	prevention alternative, the mortgage servic er or mortgage lender 443
661	661	shall include in the initial acknowledgment of receipt of the 444
662	662	application: 445
663	663	1. A description of the process for considering the 446
664	664	application, including, without limitation, an estimate of when 447
665	665	a decision on the application will be mad e and the length of 448
666	666	time the borrower will have to consider an offer for a 449
667	667	foreclosure prevention alternative. 450
668	668
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676	676	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
677	677
678	678
679	679
680	680	2. A statement of any deadlines that affect the processing 451
681	681	of an application for a foreclosure prevention alternative, 452
682	682	including, without limit ation, the deadline for submitting any 453
683	683	missing document. 454
684	684	3. A statement of the expiration dates for any documents 455
685	685	submitted by the borrower. 456
686	686	(b) If a borrower submits an application for a foreclosure 457
687	687	prevention alternative but does not initially submit all the 458
688	688	documents or information required to complete the application, 459
689	689	the mortgage servicer or mortgage lender shall include in the 460
690	690	initial acknowledgment of receipt of the application: 461
691	691	1. A statement of any deficiency in the borrower's 462
692	692	application and allow the borrower at least 30 calendar days to 463
693	693	submit any document or information required to complete the 464
694	694	application. 465
695	695	2. All the information required under subparagraphs (a)1., 466
696	696	(a)2., and (a)3. 467
697	697	(4) If a borrower accepts an offer for a foreclosure 468
698	698	prevention alternative for a residential mortgage loan, the 469
699	699	mortgage servicer or mortgage lender shall provide the borrower 470
700	700	with a copy of the complete agreement of the foreclosure 471
701	701	prevention alternative signed by the mortgage lender or an agent 472
702	702	or authorized representative of the mortgage lender. 473
703	703	(5) If a borrower submits a complete application for a 474
704	704	foreclosure prevention alternative for a residential mortgage 475
705	705
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713	713	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
714	714
715	715
716	716
717	717	loan and the borrower's application is denied, the mortgage 476
718	718	servicer or mortgage lender shall s end to the borrower a written 477
719	719	statement of: 478
720	720	(a) The reason for the denial. 479
721	721	(b) The length of time the borrower has to request an 480
722	722	appeal of the denial, which must be at least 30 calendar days. 481
723	723	(c) Instructions regarding how to appeal the denial, 482
724	724	including, without limitation, how to provide evidence that the 483
725	725	denial was in error. 484
726	726	(6) If a borrower of a residential mortgage loan submits a 485
727	727	complete application for a foreclosure prevention alternative 486
728	728	and the borrower's application is denied, the mortgag e servicer 487
729	729	or mortgage lender may not commence a civil action for the 488
730	730	recovery of any debt, or for the enforcement of any right, under 489
731	731	a residential mortgage loan which is not barred by this chapter 490
732	732	or chapter 494 or any other provision of law, record a no tice of 491
733	733	default or a notice of sale, or conduct a foreclosure sale until 492
734	734	the later of: 493
735	735	(a) Sixty calendar days after the borrower is sent the 494
736	736	written statement required by subsection (5); or 495
737	737	(b) If the borrower appeals the denial, the later of: 496
738	738	1. Fifteen calendar days after the denial of the appeal; 497
739	739	or 498
740	740	2. If the appeal is successful: 499
741	741	a. Fourteen calendar days after a foreclosure prevention 500
742	742
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750	750	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
751	751
752	752
753	753
754	754	alternative offered after the appeal is declined by the 501
755	755	borrower; or 502
756	756	3. If a foreclosure prevention altern ative offered after 503
757	757	the appeal is accepted, the date on which the borrower fails to 504
758	758	timely submit the first payment or otherwise breaches the terms 505
759	759	of the offer. 506
760	760	(7) A mortgage servicer or mortgage lender is not required 507
761	761	to evaluate a foreclosure prevent ion alternative application 508
762	762	from a borrower of a residential mortgage loan who has already 509
763	763	been evaluated or afforded a fair opportunity to be evaluated 510
764	764	for a foreclosure prevention alternative or who has been 511
765	765	evaluated or afforded a fair opportunity to be evaluated 512
766	766	consistent with the requirements of this section, unless: 513
767	767	(a) There has been a material change in the borrower's 514
768	768	financial circumstances since the date of the borrower's 515
769	769	previous application. 516
770	770	(b) The change in paragraph (a) is documented by the 517
771	771	borrower and submitted to the mortgage servicer or mortgage 518
772	772	lender. 519
773	773	(8) A mortgage servicer or mortgage lender may not charge 520
774	774	or collect: 521
775	775	(a) Application fee, processing fee, or other fee for a 522
776	776	foreclosure prevention alternative; or 523
777	777	(b) Late fees for periods during which: 524
778	778	1. A foreclosure prevention alternative is under 525
779	779
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787	787	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
788	788
789	789
790	790
791	791	consideration or a denial is being appealed; 526
792	792	2. The borrower is making timely payments under a 527
793	793	foreclosure prevention alternative; or 528
794	794	3. A foreclosure prevention alternative is being evaluated 529
795	795	or exercised. 530
796	796	Section 8. Paragraphs (a), (b), and (c) of subsection (5) 531
797	797	of section 494.00115, Florida Statutes, are amended to read: 532
798	798	494.00115 Exemptions. — 533
799	799	(5) As used in this section, the term "hold himself or 534
800	800	herself out to the public as being in the mortgage lending 535
801	801	business" includes any of the following: 536
802	802	(a) Representing to the public, through advertising or 537
803	803	other means of communicating or providing information, including 538
804	804	the use of business cards, stationery, brochures, si gns, rate 539
805	805	lists, or promotional items, by any method, that such individual 540
806	806	can or will perform the activities described in s. 494.001(25) 541
807	807	s. 494.001(24). 542
808	808	(b) Soliciting in a manner that would lead the intended 543
809	809	audience to reasonably believe that such individual is in the 544
810	810	business of performing the activities described in s. 545
811	811	494.001(25) s. 494.001(24). 546
812	812	(c) Maintaining a commercial business establishment a t 547
813	813	which, or premises from which, such individual regularly 548
814	814	performs the activities described in s. 494.001(25) s. 549
815	815	494.001(24) or regularly meets with current or prospective 550
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824	824	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
825	825
826	826
827	827
828	828	mortgage borrowers. 551
829	829	Section 9. Paragraph (d) of subsection (4) of section 552
830	830	494.0025, Florida Statutes, is amended to read: 553
831	831	494.0025 Prohibited practices. —It is unlawful for any 554
832	832	person: 555
833	833	(4) In any practice or transaction or course of business 556
834	834	relating to the sale, purchase, negotiation, promotion, 557
835	835	advertisement, or hypothecation of mortgage loan transactions, 558
836	836	directly or indirectly: 559
837	837	(d) To misrepresent a residential mortgage loan, as 560
838	838	described in s. 494.001(26)(a) s. 494.001(25)(a), as a business 561
839	839	purpose loan. 562
840	840	Section 10. This act shall take effect July 1, 2022. 563