Florida Senate - 2022 SB 1706 By Senator Garcia 37-00545B-22 20221706__ 1 A bill to be entitled 2 An act relating to servicers and lenders of 3 residential mortgage loans; amending s. 494.001, F.S.; 4 revising and providing definitions; creating s. 5 494.00163, F.S.; requiring mortgage lenders and 6 mortgage servicers to comply with specified federal 7 law; requiring that periodic statements for 8 residential mortgage loans follow specified laws; 9 specifying that certain entities are not exempt from 10 such laws; defining the term small mortgage 11 servicer; creating s. 494.00225, F.S.; requiring 12 mortgage servicers and mortgage lenders to assume 13 duties and obligations relating to previously approved 14 first lien loan modifications, foreclosure prevention 15 alternatives, and other loan modifications under 16 certain circumstances; creating s. 494.0027, F.S.; 17 defining terms; prohibiting mortgage servicers and 18 mortgage lenders from commencing certain civil 19 actions, recording specified notices, or conducting 20 foreclosure sales unless specified conditions are met; 21 requiring mortgage servicers and mortgage lenders to 22 establish single points of contact and provide to 23 borrowers direct means of communication with the 24 single points of contact upon request; providing 25 requirements and duties for single points of contact 26 and for mortgage servicers and mortgage lenders 27 relating to single points of contact; requiring 28 mortgage servicers and mortgage lenders to send 29 written acknowledgment of application receipt to 30 foreclosure prevention alternative applicants in 31 specified manners within a specified timeframe; 32 providing requirements for statements, documents, and 33 information that mortgage servicers and mortgage 34 lenders must send to applicants under various 35 circumstances; providing timelines for mortgage 36 servicers and mortgage lenders to commence civil 37 actions against residential mortgage loan borrowers; 38 providing that mortgage servicers and mortgage lenders 39 are not required to evaluate foreclosure prevention 40 alternative applications under certain circumstances; 41 providing an exception; prohibiting mortgage servicers 42 and mortgage lenders from charging specified fees; 43 creating ss. 627.4055 and 635.0215, F.S.; defining 44 terms; prohibiting insurers and insurance agents from 45 engaging in certain acts relating to lender-placed 46 insurance for residential mortgage loan guaranty; 47 creating s. 702.013, F.S.; defining terms; prohibiting 48 mortgage servicers and mortgage lenders from 49 commencing certain civil actions, recording specified 50 notices, or conducting foreclosure sales unless 51 specified conditions are met; providing an exception; 52 requiring mortgage servicers and mortgage lenders to 53 establish single points of contact and to provide to 54 borrowers direct means of communication with the 55 single points of contact upon request; providing 56 requirements and duties for single points of contact 57 and for mortgage servicers and mortgage lenders 58 relating to single points of contact; requiring 59 mortgage servicers and mortgage lenders to send 60 written acknowledgment of application receipt to 61 foreclosure prevention alternative applicants in 62 specified manners within a specified timeframe; 63 providing requirements for statements, documents, and 64 information that mortgage servicers and mortgage 65 lenders must send to applicants under various 66 circumstances; providing timelines for mortgage 67 servicers and mortgage lenders to commence civil 68 actions against residential mortgage loan borrowers; 69 providing that mortgage servicers and mortgage lenders 70 are not required to evaluate foreclosure prevention 71 alternative applications under certain circumstances; 72 providing an exception; prohibiting mortgage servicers 73 and mortgage lenders from charging specified fees; 74 amending ss. 494.00115 and 494.0025, F.S.; conforming 75 cross-references; providing an effective date. 76 77 Be It Enacted by the Legislature of the State of Florida: 78 79 Section 1.Present subsections (12) through (26) and (27) 80 through (38) of section 494.001, Florida Statutes, are 81 redesignated as subsections (13) through (27) and subsections 82 (29) through (40), respectively, new subsections (12) and (28) 83 are added to that section, and subsection (1) of that section is 84 amended, to read: 85 494.001Definitions.As used in this chapter, the term: 86 (1)Borrower means: 87 (a)A person obligated to repay a mortgage loan and 88 includes, but is not limited to, a coborrower or cosignor; or 89 (b)A natural person who is a mortgagor under a residential 90 mortgage loan. 91 (12)Foreclosure prevention alternative means a 92 modification of a residential mortgage loan term. 93 (28)Mortgage servicer means a person or entity that 94 directly services, or is contracted as a subservicing agent to a 95 master servicer to service, a residential mortgage loan or 96 manages a residential mortgage loan, which services or 97 management may include, but is not limited to, the following 98 responsibilities: 99 (a)Interacting with the borrower; managing the borrowers 100 loan account daily, including, but not limited to, collecting 101 and crediting loan payments that include principals and 102 interests paid, and generating periodic billing and account 103 statements; and managing the borrowers escrow account, if 104 applicable; or 105 (b)Enforcing the note and security instrument as the 106 current owner of the promissory note or as the authorized agent 107 of the current owner of the promissory note. 108 Section 2.Section 494.00163, Florida Statutes, is created 109 to read: 110 494.00163Residential mortgage loans; lender-placed 111 insurance; periodic statements. 112 (1)A mortgage lender or mortgage servicer must comply with 113 12 C.F.R. s. 1024.37. 114 (2)Periodic statements for residential mortgage loans in 115 the state must follow all the provisions set forth in 12 C.F.R. 116 s. 1026.41. 117 (3)A servicer of a reverse mortgage or a small mortgage 118 servicer is not exempt from the requirements of 12 C.F.R. s. 119 1024.37 and 12 C.F.R. s. 1026.41. As used in this section, the 120 term small mortgage servicer means a mortgage servicer that, 121 together with any affiliates, services up to 5,000 residential 122 mortgage loans, all of which have the mortgage servicer or its 123 affiliate as the creditor or assignee. 124 Section 3.Section 494.00225, Florida Statutes, is created 125 to read: 126 494.00225Residential mortgage loan modifications to avoid 127 foreclosure; transfers of duties and obligations of mortgage 128 servicers and mortgage lenders.If a borrower of a residential 129 mortgage loan has been approved in writing for a first lien loan 130 modification, a foreclosure prevention alternative under s. 131 494.0027, or other loan modification to avoid foreclosure and if 132 the servicing of the borrowers mortgage loan is transferred or 133 sold, the mortgage servicer or mortgage lender to whom the 134 mortgage loan is transferred or sold shall assume all duties and 135 obligations related to such previously approved first lien loan 136 modification, foreclosure prevention alternative, or other loan 137 modification. 138 Section 4.Section 494.0027, Florida Statutes, is created 139 to read: 140 494.0027Foreclosure prevention alternatives for 141 residential mortgage loans. 142 (1)As used in this section, the term: 143 (a)Complete application means an application for a 144 foreclosure prevention alternative for which the borrower has 145 provided all documents required by the mortgage servicer or 146 mortgage lender within the reasonable timeframe specified by the 147 mortgage servicer or mortgage lender. 148 (b)Single point of contact means a person who has, or a 149 team of personnel of which each member has, the ability, 150 authority, and responsibility to: 151 1.Communicate the process by which a borrower may apply 152 for an available foreclosure prevention alternative and the 153 deadline for any required submission to be considered for the 154 foreclosure prevention alternative. 155 2.Coordinate receipt of all documents associated with the 156 available foreclosure prevention alternatives and notify the 157 borrower of any missing document necessary to complete an 158 application for a foreclosure prevention alternative. 159 3.Have access to current information and sufficient 160 personnel to timely, accurately, and adequately inform the 161 borrower of the current status of the foreclosure prevention 162 alternative. 163 4.Ensure that the borrower is considered for all 164 foreclosure prevention alternatives offered by, or through, the 165 mortgage servicer or mortgage lender and for which the borrower 166 is or may be eligible. 167 5.Have access to the person who has the ability and 168 authority to stop the foreclosure process when necessary. 169 (2)(a)A mortgage servicer or mortgage lender may not 170 commence a civil action for the recovery of any debt, or for the 171 enforcement of any right, under a residential mortgage loan 172 which is not barred by this chapter or chapter 702 or any other 173 provision of law, record a notice of default or a notice of 174 sale, or conduct a foreclosure sale, if a borrower submits an 175 application for a foreclosure prevention alternative offered by, 176 or through, the borrowers mortgage servicer or mortgage lender, 177 unless one of the following has occurred: 178 1.The borrower fails to submit all documents or 179 information required to complete the application within the 180 allotted timeframe authorized by the mortgage servicer or 181 mortgage lender, which must be at least 30 calendar days after 182 the date of the initial acknowledgment of receipt of the 183 application sent to the borrower. 184 2.The mortgage servicer or mortgage lender makes a written 185 determination that the borrower is not eligible for a 186 foreclosure prevention alternative, and any appeal period under 187 subsection (5) has expired. 188 3.The borrower does not accept a written offer for a 189 foreclosure prevention alternative within 30 calendar days after 190 the date of the offer. 191 4.The borrower accepts a written offer for a foreclosure 192 prevention alternative, but defaults on or otherwise breaches 193 the borrowers obligations under the foreclosure prevention 194 alternative. 195 (b)1.If a borrower requests a foreclosure prevention 196 alternative, the mortgage servicer or mortgage lender shall 197 promptly establish a single point of contact and provide to the 198 borrower one or more direct means of communication with the 199 single point of contact. 200 2.A single point of contact must remain assigned to the 201 borrowers account until the mortgage servicer or mortgage 202 lender determines that all foreclosure prevention alternatives 203 offered by, or through, the mortgage servicer or mortgage lender 204 have been exhausted or the borrowers account becomes current. 205 3.The mortgage servicer or mortgage lender shall ensure 206 that a single point of contact refers and transfers the borrower 207 to an appropriate supervisor upon the borrowers request, if the 208 single point of contact has a supervisor. 209 4.If the responsibilities of a single point of contact are 210 performed by a team of personnel, the mortgage servicer or 211 mortgage lender shall ensure that each member of the team is 212 knowledgeable about the borrowers situation and current status 213 in the process of seeking a foreclosure prevention alternative. 214 (3)Within 7 business days after receiving an application 215 for a foreclosure prevention alternative or any document in 216 connection with a foreclosure prevention alternative application 217 for a residential mortgage loan, a mortgage servicer or mortgage 218 lender shall send to the borrower, by first-class mail or, if an 219 electronic mail address is provided, by electronic mail, written 220 acknowledgment of the receipt of the application or document. 221 (a)Upon receipt of an application for a foreclosure 222 prevention alternative, the mortgage servicer or mortgage lender 223 shall include in the initial acknowledgment of receipt of the 224 application: 225 1.A description of the process for considering the 226 application, including, without limitation, an estimate of when 227 a decision on the application will be made and the length of 228 time the borrower will have to consider an offer for a 229 foreclosure prevention alternative. 230 2.A statement of any deadlines that affect the processing 231 of an application for a foreclosure prevention alternative, 232 including, without limitation, the deadline for submitting any 233 missing document. 234 3.A statement of the expiration dates for any documents 235 submitted by the borrower. 236 (b)If a borrower submits an application for a foreclosure 237 prevention alternative but does not initially submit all the 238 documents or information required to complete the application, 239 the mortgage servicer or mortgage lender shall include in the 240 initial acknowledgment of receipt of the application: 241 1.A statement of any deficiency in the borrowers 242 application and allow the borrower at least 30 calendar days to 243 submit any missing document or information required to complete 244 the application. 245 2.All the information required under subparagraphs (a)1., 246 2., and 3. 247 (4)If a borrower accepts an offer for a foreclosure 248 prevention alternative for a residential mortgage loan, the 249 mortgage servicer or mortgage lender shall provide the borrower 250 with a copy of the complete agreement of the foreclosure 251 prevention alternative signed by the mortgage lender or an agent 252 or authorized representative of the mortgage lender. 253 (5)If a borrower submits a complete application for a 254 foreclosure prevention alternative for a residential mortgage 255 loan and the borrowers application is denied, the mortgage 256 servicer or mortgage lender shall send to the borrower a written 257 statement of: 258 (a)The reason for the denial. 259 (b)The length of time the borrower has to request an 260 appeal of the denial, which must be at least 30 calendar days. 261 (c)Instructions regarding how to appeal the denial, 262 including, without limitation, how to provide evidence that the 263 denial was in error. 264 (6)If a borrower of a residential mortgage loan submits a 265 complete application for a foreclosure prevention alternative 266 and the borrowers application is denied, the mortgage servicer 267 or mortgage lender may not commence a civil action for the 268 recovery of any debt, or for the enforcement of any right, under 269 a residential mortgage loan which is not barred by this chapter 270 or chapter 702 or any other provision of law, record a notice of 271 default or a notice of sale, or conduct a foreclosure sale until 272 the later of: 273 (a)Sixty calendar days after the borrower is sent the 274 written statement required by subsection (5); or 275 (b)If the borrower appeals the denial, the later of: 276 1.Fifteen calendar days after the denial of the appeal; or 277 2.If the appeal is successful, 14 calendar days after a 278 foreclosure prevention alternative offered after the appeal is 279 declined by the borrower; or 280 3.If a foreclosure prevention alternative offered after 281 the appeal is accepted, the date on which the borrower fails to 282 timely submit the first payment or otherwise breaches the terms 283 of the offer. 284 (7)A mortgage servicer or mortgage lender is not required 285 to evaluate a foreclosure prevention alternative application 286 from a borrower of a residential mortgage loan who has already 287 been evaluated or afforded a fair opportunity to be evaluated 288 for a foreclosure prevention alternative or who has been 289 evaluated or afforded a fair opportunity to be evaluated 290 consistent with the requirements of this section, unless: 291 (a)There has been a material change in the borrowers 292 financial circumstances since the date of the borrowers 293 previous application. 294 (b)The change in paragraph (a) is documented by the 295 borrower and submitted to the mortgage servicer or mortgage 296 lender. 297 (8)A mortgage servicer or mortgage lender may not charge 298 or collect: 299 (a)An application fee, processing fee, or other fee for a 300 foreclosure prevention alternative; or 301 (b)Late fees for periods during which: 302 1.A foreclosure prevention alternative is under 303 consideration or a denial is being appealed; 304 2.The borrower is making timely payments under a 305 foreclosure prevention alternative; or 306 3.A foreclosure prevention alternative is being evaluated 307 or exercised. 308 Section 5.Section 627.4055, Florida Statutes, is created 309 to read: 310 627.4055Lender-placed insurance for residential mortgage 311 loan guaranty. 312 (1)As used in this section, the term: 313 (a)Affiliate has the same meaning as in s. 624.10. 314 (b)Lender-placed insurance means insurance obtained by a 315 mortgage servicer or mortgage lender when a borrower of a 316 residential mortgage loan does not maintain valid or sufficient 317 insurance upon the mortgaged real property as required by the 318 terms of the mortgage agreement. 319 (c)Mortgage servicer has the same meaning as in s. 320 494.001. 321 (d)Person affiliated means an affiliate or affiliated 322 person, as those terms are defined in s. 624.10. 323 (2)(a)An insurer or insurance agent may not: 324 1.Issue lender-placed insurance on a mortgaged property 325 if: 326 a.The insurer or insurance agent or an affiliate of the 327 insurer or insurance agent owns, performs the servicing for, or 328 owns the servicing right to, the mortgaged property; or 329 b.The mortgage servicer or mortgage lender has not 330 complied with 12 C.F.R. s. 1024.37. 331 2.Except for payment to a mortgage lender for any loss 332 resulting from a mortgage default or property foreclosure: 333 a.Compensate any mortgage lender, insurer, investor, or 334 mortgage servicer, including, but not limited to, through 335 payment of commissions, on a lender-placed insurance policy 336 issued by the insurer or insurance agent. 337 b.Make any payment, including, but not limited to, payment 338 of expenses, to any mortgage lender, insurer, investor, or 339 mortgage servicer for the purpose of securing lender-placed 340 insurance business or related outsourced services. 341 c.Share lender-placed insurance premium or risk with the 342 mortgage lender, investor, or mortgage servicer that obtained 343 the lender-placed insurance. 344 d.Offer contingent commissions, profit sharing, or other 345 payments dependent on profitability or loss ratios to any person 346 affiliated with lender-placed insurance. 347 (b)An insurer or insurance agent may not provide free or 348 below-cost outsourced services to a mortgage lender, insurance 349 producer, investor, or mortgage servicer or outsource its own 350 functions to a mortgage lender, insurance producer, investor, or 351 mortgage servicer on an above-cost basis. 352 Section 6.Section 635.0215, Florida Statutes, is created 353 to read: 354 635.0215Lender-placed insurance for residential mortgage 355 loan guaranty. 356 (1)As used in this section, the term: 357 (a)Affiliate has the same meaning as in s. 624.10. 358 (b)Lender-placed insurance has the same meaning as in s. 359 627.4055(1). 360 (c)Mortgage servicer has the same meaning as in s. 361 494.001. 362 (d)Person affiliated means an affiliate or affiliated 363 person, as those terms are defined in s. 624.10. 364 (2)(a)An insurer or insurance agent may not: 365 1.Issue lender-placed insurance on a mortgaged property 366 if: 367 a.The insurer or insurance agent or an affiliate of the 368 insurer or insurance agent owns, performs the servicing for, or 369 owns the servicing right to, the mortgaged property; or 370 b.The mortgage servicer or mortgage lender has not 371 complied with 12 C.F.R. s. 1024.37. 372 2.Except for payment to a mortgage lender for any loss 373 resulting from a mortgage default or property foreclosure: 374 a.Compensate any mortgage lender, insurer, investor, or 375 mortgage servicer, including, but not limited to, through 376 payment of commissions, on a lender-placed insurance policy 377 issued by the insurer or insurance agent. 378 b.Make any payment, including, but not limited to, payment 379 of expenses, to any mortgage lender, insurer, investor, or 380 mortgage servicer for the purpose of securing lender-placed 381 insurance business or related outsourced services. 382 c.Share lender-placed insurance premium or risk with the 383 mortgage lender, investor, or mortgage servicer that obtained 384 the lender-placed insurance. 385 d.Offer contingent commissions, profit sharing, or other 386 payments dependent on profitability or loss ratios to any person 387 affiliated with lender-placed insurance. 388 (b)An insurer or insurance agent may not provide free or 389 below-cost outsourced services to a mortgage lender, insurance 390 producer, investor, or mortgage servicer or outsource its own 391 functions to a mortgage lender, insurance producer, investor, or 392 mortgage servicer on an above-cost basis. 393 Section 7.Section 702.013, Florida Statutes, is created to 394 read: 395 702.013Foreclosure prevention alternatives for residential 396 mortgage loans. 397 (1)As used in this section, the term: 398 (a)Complete application has the same meaning as in s. 399 494.0027(1). 400 (b)Foreclosure prevention alternative has the same 401 meaning as in s. 494.001. 402 (c)Mortgage servicer has the same meaning as in s. 403 494.001. 404 (d)Single point of contact has the same meaning as in s. 405 494.0027(1). 406 (2)(a)A mortgage servicer or mortgage lender may not 407 commence a civil action for the recovery of any debt, or for the 408 enforcement of any right, under a residential mortgage loan 409 which is not barred by this chapter or chapter 494 or any other 410 provision of law, record a notice of default or a notice of 411 sale, or conduct a foreclosure sale, if a borrower submits an 412 application for a foreclosure prevention alternative offered by, 413 or through, the borrowers mortgage servicer or mortgage lender, 414 unless one of the following has occurred: 415 1.The borrower fails to submit all documents or 416 information required to complete the application within the 417 allotted timeframe authorized by the mortgage servicer or 418 mortgage lender, which must be at least 30 calendar days after 419 the date of the initial acknowledgment of receipt of the 420 application sent to the borrower. 421 2.The mortgage servicer or mortgage lender makes a written 422 determination that the borrower is not eligible for a 423 foreclosure prevention alternative, and any appeal period under 424 subsection (5) has expired. 425 3.The borrower does not accept a written offer for a 426 foreclosure prevention alternative within 30 calendar days after 427 the date of the offer. 428 4.The borrower accepts a written offer for a foreclosure 429 prevention alternative, but defaults on or otherwise breaches 430 the borrowers obligations under the foreclosure prevention 431 alternative. 432 (b)1.If a borrower requests a foreclosure prevention 433 alternative, the mortgage servicer or mortgage lender shall 434 promptly establish a single point of contact and provide to the 435 borrower one or more direct means of communication with the 436 single point of contact. 437 2.A single point of contact must remain assigned to the 438 borrowers account until the mortgage servicer or mortgage 439 lender determines that all foreclosure prevention alternatives 440 offered by, or through, the mortgage servicer or mortgage lender 441 have been exhausted or the borrowers account becomes current. 442 3.The mortgage servicer or mortgage lender shall ensure 443 that a single point of contact refers and transfers the borrower 444 to an appropriate supervisor upon the borrowers request, if the 445 single point of contact has a supervisor. 446 4.If the responsibilities of a single point of contact are 447 performed by a team of personnel, the mortgage servicer or 448 mortgage lender shall ensure that each member of the team is 449 knowledgeable about the borrowers situation and current status 450 in the process of seeking a foreclosure prevention alternative. 451 (3)Within 7 business days after receiving an application 452 for a foreclosure prevention alternative or any document in 453 connection with a foreclosure prevention alternative application 454 for a residential mortgage loan, a mortgage servicer or mortgage 455 lender shall send to the borrower, by first-class mail or, if an 456 electronic mail address is provided, by electronic mail, written 457 acknowledgment of the receipt of the application or document. 458 (a)Upon receipt of an application for a foreclosure 459 prevention alternative, the mortgage servicer or mortgage lender 460 shall include in the initial acknowledgment of receipt of the 461 application: 462 1.A description of the process for considering the 463 application, including, without limitation, an estimate of when 464 a decision on the application will be made and the length of 465 time the borrower will have to consider an offer for a 466 foreclosure prevention alternative. 467 2.A statement of any deadlines that affect the processing 468 of an application for a foreclosure prevention alternative, 469 including, without limitation, the deadline for submitting any 470 missing document. 471 3.A statement of the expiration dates for any documents 472 submitted by the borrower. 473 (b)If a borrower submits an application for a foreclosure 474 prevention alternative but does not initially submit all the 475 documents or information required to complete the application, 476 the mortgage servicer or mortgage lender shall include in the 477 initial acknowledgment of receipt of the application: 478 1.A statement of any deficiency in the borrowers 479 application and allow the borrower at least 30 calendar days to 480 submit any document or information required to complete the 481 application. 482 2.All the information required under subparagraphs (a)1., 483 2., and 3. 484 (4)If a borrower accepts an offer for a foreclosure 485 prevention alternative for a residential mortgage loan, the 486 mortgage servicer or mortgage lender shall provide the borrower 487 with a copy of the complete agreement of the foreclosure 488 prevention alternative signed by the mortgage lender or an agent 489 or authorized representative of the mortgage lender. 490 (5)If a borrower submits a complete application for a 491 foreclosure prevention alternative for a residential mortgage 492 loan and the borrowers application is denied, the mortgage 493 servicer or mortgage lender shall send to the borrower a written 494 statement of: 495 (a)The reason for the denial. 496 (b)The length of time the borrower has to request an 497 appeal of the denial, which must be at least 30 calendar days. 498 (c)Instructions regarding how to appeal the denial, 499 including, without limitation, how to provide evidence that the 500 denial was in error. 501 (6)If a borrower of a residential mortgage loan submits a 502 complete application for a foreclosure prevention alternative 503 and the borrowers application is denied, the mortgage servicer 504 or mortgage lender may not commence a civil action for the 505 recovery of any debt, or for the enforcement of any right, under 506 a residential mortgage loan which is not barred by this chapter 507 or chapter 494 or any other provision of law, record a notice of 508 default or a notice of sale, or conduct a foreclosure sale until 509 the later of: 510 (a)Sixty calendar days after the borrower is sent the 511 written statement required by subsection (5); or 512 (b)If the borrower appeals the denial, the later of: 513 1.Fifteen calendar days after the denial of the appeal; or 514 2.If the appeal is successful, 14 calendar days after a 515 foreclosure prevention alternative offered after the appeal is 516 declined by the borrower; or 517 3.If a foreclosure prevention alternative offered after 518 the appeal is accepted, the date on which the borrower fails to 519 timely submit the first payment or otherwise breaches the terms 520 of the offer. 521 (7)A mortgage servicer or mortgage lender is not required 522 to evaluate a foreclosure prevention alternative application 523 from a borrower of a residential mortgage loan who has already 524 been evaluated or afforded a fair opportunity to be evaluated 525 for a foreclosure prevention alternative or who has been 526 evaluated or afforded a fair opportunity to be evaluated 527 consistent with the requirements of this section, unless: 528 (a)There has been a material change in the borrowers 529 financial circumstances since the date of the borrowers 530 previous application. 531 (b)The change in paragraph (a) is documented by the 532 borrower and submitted to the mortgage servicer or mortgage 533 lender. 534 (8)A mortgage servicer or mortgage lender may not charge 535 or collect: 536 (a)Application fees, processing fees, or other fees for a 537 foreclosure prevention alternative; or 538 (b)Late fees for periods during which: 539 1.A foreclosure prevention alternative is under 540 consideration or a denial is being appealed; 541 2.The borrower is making timely payments under a 542 foreclosure prevention alternative; or 543 3.A foreclosure prevention alternative is being evaluated 544 or exercised. 545 Section 8.Paragraphs (a), (b), and (c) of subsection (5) 546 of section 494.00115, Florida Statutes, are amended to read: 547 494.00115Exemptions. 548 (5)As used in this section, the term hold himself or 549 herself out to the public as being in the mortgage lending 550 business includes any of the following: 551 (a)Representing to the public, through advertising or 552 other means of communicating or providing information, including 553 the use of business cards, stationery, brochures, signs, rate 554 lists, or promotional items, by any method, that such individual 555 can or will perform the activities described in s. 494.001(25) 556 s. 494.001(24). 557 (b)Soliciting in a manner that would lead the intended 558 audience to reasonably believe that such individual is in the 559 business of performing the activities described in s. 560 494.001(25) s. 494.001(24). 561 (c)Maintaining a commercial business establishment at 562 which, or premises from which, such individual regularly 563 performs the activities described in s. 494.001(25) s. 564 494.001(24) or regularly meets with current or prospective 565 mortgage borrowers. 566 Section 9.Paragraph (d) of subsection (4) of section 567 494.0025, Florida Statutes, is amended to read: 568 494.0025Prohibited practices.It is unlawful for any 569 person: 570 (4)In any practice or transaction or course of business 571 relating to the sale, purchase, negotiation, promotion, 572 advertisement, or hypothecation of mortgage loan transactions, 573 directly or indirectly: 574 (d)To misrepresent a residential mortgage loan, as 575 described in s. 494.001(26)(a) s. 494.001(25)(a), as a business 576 purpose loan. 577 Section 10.This act shall take effect July 1, 2022.