| 15 | 15 | | An act relating to an exemption from regulation for 2 |
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| 16 | 16 | | bona fide nonprofit organizations; amending s. 3 |
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| 17 | 17 | | 494.0011, F.S.; authorizing the Financial Services 4 |
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| 18 | 18 | | Commission to adopt rules prescribing criteria and 5 |
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| 19 | 19 | | processes for determining whether an organization is a 6 |
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| 20 | 20 | | bona fide nonprofit organization for a specified 7 |
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| 21 | 21 | | purpose; amending s. 494.00115, F.S.; providing 8 |
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| 22 | 22 | | exemptions from certain regulation for bona fide 9 |
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| 23 | 23 | | nonprofit organizations and certain employees of a 10 |
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| 24 | 24 | | bona fide nonprofit organization that meet specified 11 |
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| 25 | 25 | | criteria; requiring the Office of Financial Regulation 12 |
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| 26 | 26 | | to make a specified determination; requiring the 13 |
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| 27 | 27 | | office to make such determination based on terms 14 |
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| 28 | 28 | | consistent with loan origination in a public or 15 |
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| 29 | 29 | | charitable context; requiring the office to 16 |
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| 30 | 30 | | periodically examine the books and activities of an 17 |
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| 31 | 31 | | organization and to revoke its status as a bona fide 18 |
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| 32 | 32 | | nonprofit organization under certain circumstances; 19 |
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| 33 | 33 | | providing an effective date. 20 |
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| 34 | 34 | | 21 |
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| 35 | 35 | | Be It Enacted by the Legislature of the State of Florida: 22 |
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| 36 | 36 | | 23 |
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| 37 | 37 | | Section 1. Paragraph (b) of subsection (2) of section 24 |
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| 38 | 38 | | 494.0011, Florida Statutes, is amended to read: 25 |
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| 46 | 46 | | Page 2 of 5 |
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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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| 48 | 48 | | |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | 494.0011 Powers and duties of the commission and office. — 26 |
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| 52 | 52 | | (2) The commission may adopt rules to administer parts I, 27 |
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| 53 | 53 | | II, and III of this chapter, including rules: 28 |
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| 54 | 54 | | (b) Relating to compliance with the S.A.F.E. Mortgage 29 |
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| 55 | 55 | | Licensing Act of 2008, including rules to: 30 |
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| 56 | 56 | | 1. Require loan originators, mortgage brokers, mortgage 31 |
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| 57 | 57 | | lenders, and branch offices to register through the registry. 32 |
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| 58 | 58 | | 2. Require the use of uniform forms that have been 33 |
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| 59 | 59 | | approved by the registry, and any subsequent amendments to such 34 |
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| 60 | 60 | | forms if the forms are substantially in compliance with the 35 |
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| 61 | 61 | | provisions of this chapter. Uniform forms that the commission 36 |
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| 62 | 62 | | may adopt include, but are not limited to: 37 |
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| 63 | 63 | | a. Uniform Mortgage Lender/Mortgage Broker Form, MU1. 38 |
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| 64 | 64 | | b. Uniform Mortgage Biographical Statement & Consent Form, 39 |
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| 65 | 65 | | MU2. 40 |
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| 66 | 66 | | c. Uniform Mortgage Branch Office Form, MU3. 41 |
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| 67 | 67 | | d. Uniform Individual Mortgage License/Registration & 42 |
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| 68 | 68 | | Consent Form, MU4. 43 |
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| 69 | 69 | | 3. Require the filing of forms, documents, and fees in 44 |
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| 70 | 70 | | accordance with the requirements of the registry. 45 |
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| 71 | 71 | | 4. Prescribe requirements for amending or surrendering a 46 |
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| 72 | 72 | | license or other activities as the commission deems necessary 47 |
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| 73 | 73 | | for the office's participation in the registry. 48 |
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| 74 | 74 | | 5. Prescribe procedures that allow a licensee to challenge 49 |
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| 75 | 75 | | information contained in the registry. 50 |
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| 83 | 83 | | Page 3 of 5 |
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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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| 85 | 85 | | |
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| 86 | 86 | | |
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| 87 | 87 | | |
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| 88 | 88 | | 6. Prescribe procedures for reporting violations of this 51 |
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| 89 | 89 | | chapter and disciplinary actions on licensees to the registry. 52 |
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| 90 | 90 | | 7. Prescribe criteria and processes for determining if an 53 |
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| 91 | 91 | | organization is and remains a bona fide nonprofit organization 54 |
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| 92 | 92 | | for the purpose of determining whether the organization and its 55 |
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| 93 | 93 | | employees who are acting as loan originators are exempt from 56 |
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| 94 | 94 | | regulation under this chapter pursuant to s. 494.00115. 57 |
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| 95 | 95 | | Section 2. Subsections (3), (4), and (5) of section 58 |
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| 96 | 96 | | 494.00115, Florida Statutes, are renumbered as subsections (4), 59 |
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| 97 | 97 | | (5), and (6), respectivel y, and a new subsection (3) is added to 60 |
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| 98 | 98 | | that section, to read: 61 |
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| 99 | 99 | | 494.00115 Exemptions. — 62 |
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| 100 | 100 | | (3)(a) As provided in this subsection, a bona fide 63 |
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| 101 | 101 | | nonprofit organization and an employee of a bona fide nonprofit 64 |
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| 102 | 102 | | organization who acts as a loan originator only wit h respect to 65 |
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| 103 | 103 | | his or her work duties for the bona fide nonprofit organization 66 |
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| 104 | 104 | | and who acts as a loan originator only with respect to 67 |
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| 105 | 105 | | residential mortgage loans with terms that are favorable to the 68 |
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| 106 | 106 | | borrower, are exempt from regulation under this chapter. 69 |
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| 107 | 107 | | 1. For an organization to be considered a bona fide 70 |
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| 108 | 108 | | nonprofit organization under this subsection, the office must 71 |
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| 109 | 109 | | determine, pursuant to criteria and processes established by 72 |
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| 110 | 110 | | rule, that the organization satisfies all of the following 73 |
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| 111 | 111 | | criteria: 74 |
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| 112 | 112 | | a. Has the status of a tax-exempt organization under s. 75 |
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| 120 | 120 | | Page 4 of 5 |
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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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| 123 | 123 | | |
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| 124 | 124 | | |
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| 125 | 125 | | 501(c)(3) of the Internal Revenue Code of 1986. 76 |
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| 126 | 126 | | b. Promotes affordable housing or provides homeownership 77 |
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| 127 | 127 | | education or similar services. 78 |
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| 128 | 128 | | c. Conducts its activities in a manner that serves public 79 |
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| 129 | 129 | | or charitable purposes rather than commercial purposes. 80 |
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| 130 | 130 | | d. Receives funding and revenue and charges fees in a 81 |
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| 131 | 131 | | manner that does not incentivize it or its employees to act 82 |
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| 132 | 132 | | other than in the best interests of its clients. 83 |
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| 133 | 133 | | e. Compensates its employees in a manner that does not 84 |
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| 134 | 134 | | incentivize employees to act other than in the best interests of 85 |
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| 135 | 135 | | its clients. 86 |
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| 136 | 136 | | f. Provides or identifies for the borrower residential 87 |
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| 137 | 137 | | mortgage loans with terms favorable to the borrower and 88 |
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| 138 | 138 | | comparable to mortgage loans and housing assistance prov ided 89 |
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| 139 | 139 | | under government housing assistance programs. 90 |
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| 140 | 140 | | 2. For residential mortgage loans to be deemed under this 91 |
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| 141 | 141 | | subsection to have terms that are favorable to the borrower, the 92 |
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| 142 | 142 | | office must determine that the terms are consistent with loan 93 |
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| 143 | 143 | | origination in a public or charitable context, rather than a 94 |
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| 144 | 144 | | commercial context. 95 |
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| 145 | 145 | | (b) The office must periodically examine the books and 96 |
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| 146 | 146 | | activities of an organization that it determines is a bona fide 97 |
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| 147 | 147 | | nonprofit organization and revoke its status as a bona fide 98 |
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| 148 | 148 | | nonprofit organization if it does not continue to meet the 99 |
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| 149 | 149 | | criteria specified in paragraph (a). 100 |
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