Florida Senate - 2022 SB 1706 By Senator Garcia 37-00545B-22 20221706__ Page 1 of 20 CODING: Words stricken are deletions; words underlined are additions. 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 mortgage lenders and 5 mortgage servicers to comply with specified federal 6 law; requiring that periodic statements for 7 residential mortgage loans follow specified laws; 8 specifying that certain entities are not exempt from 9 such laws; defining the term “small mortgage 10 servicer”; creating s. 494.00225, F.S.; requiring 11 mortgage servicers and mortgage lenders to assume 12 duties and obligations relating to previously approved 13 first lien loan modifications, foreclosure prevention 14 alternatives, and other loan modifications under 15 certain circumstances; creating s. 494.0027, F.S.; 16 defining terms; prohibiting mortgage servicers and 17 mortgage lenders from commencing certain civil 18 actions, recording specified notices, or conducting 19 foreclosure sales unless specified conditions are met; 20 requiring mortgage servicers and mortgage lenders to 21 establish single points of contact and provide to 22 borrowers direct means of communication with the 23 single points of contact upon request; providing 24 requirements and duties for single points of contact 25 and for mortgage servicers and mortgage lenders 26 relating to single points of contact; requiring 27 mortgage servicers and mortgage lenders to send 28 written acknowledgment of application receipt to 29

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 2 of 20 CODING: Words stricken are deletions; words underlined are additions. foreclosure prevention alternative applicants in 30 specified manners within a specified timeframe; 31 providing requirements for statements, documents, and 32 information that mortgage servicers and mortgage 33 lenders must send to applicants under various 34 circumstances; providing timelines for mortgage 35 servicers and mortgage lenders to commence civil 36 actions against residential mortgage loan borrowers; 37 providing that mortgage servicers and mortgage lenders 38 are not required to evaluate foreclosure prevention 39 alternative applications under certain circumst ances; 40 providing an exception; prohibiting mortgage servicers 41 and mortgage lenders from charging specified fees; 42 creating ss. 627.4055 and 635.0215, F.S.; defining 43 terms; prohibiting insurers and insurance agents from 44 engaging in certain acts relating to lender-placed 45 insurance for residential mortgage loan guaranty; 46 creating s. 702.013, F.S.; defining terms; prohibiting 47 mortgage servicers and mortgage lenders from 48 commencing certain civil actions, recording specified 49 notices, or conducting foreclosure sales unless 50 specified conditions are met; providing an exception; 51 requiring mortgage servicers and mortgage lenders to 52 establish single points of contact and to provide to 53 borrowers direct means of communication with the 54 single points of contact upon request; providing 55 requirements and duties for single points of contact 56 and for mortgage servicers and mortgage lenders 57 relating to single points of contact; requiring 58

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 3 of 20 CODING: Words stricken are deletions; words underlined are additions. mortgage servicers and mortgage lenders to send 59 written acknowledgment of application receipt to 60 foreclosure prevention alternative applicants in 61 specified manners within a specified timeframe; 62 providing requirements for statements, documents, and 63 information that mortgage servicers and mortgage 64 lenders must send to applicants under various 65 circumstances; providing timelines for mortgage 66 servicers and mortgage lenders to commence civil 67 actions against residential mortgage loan borrowers; 68 providing that mortgage servicers and mortgage lenders 69 are not required to evaluate foreclosure prevention 70 alternative applications under certain circumstances; 71 providing an exception; prohibiting mortgage servicers 72 and mortgage lenders from charging specified fees; 73 amending ss. 494.00115 and 494.0025, F.S.; conforming 74 cross-references; providing an effective date. 75 76 Be It Enacted by the Legislature of the State of Florida: 77 78

Section 1. Present subsections (12) through (26) and (27) 79 through (38) of

section 494.001, Florida Statutes, are 80 redesignated as subsections (13) through (27) and subsections 81 (29) through (40), respectively, new subsections (12) and (28) 82 are added to that section, and subsection (1) of that

section is 83 amended, to read: 84 494.001

Definitions.—As used in this chapter, the term: 85 (1) “Borrower” means: 86 (

a) A person obligated to repay a mortgage loan and 87

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 4 of 20 CODING: Words stricken are deletions; words underlined are additions. includes, but is not limited to, a coborrower or cosignor ; or 88 (

b) A natural person who is a mortgagor under a residential 89 mortgage loan. 90 (12) “Foreclosure prevention alternative” means a 91 modification of a residential mortgage loan term. 92 (28) “Mortgage servicer” means a person or entity that 93 directly services, or is contracted as a subservicing agent to a 94 master servicer to service, a residential mortgage loan or 95 manages a residential mortgage loan, which services or 96 management may include, but is not limited to, the following 97 responsibilities: 98 (

a) Interacting with the borrower; managing the borrower’s 99 loan account daily, including, but not limited to, collecting 100 and crediting loan payments that include principals and 101 interests paid, and generating periodic billing and account 102 statements; and managing the borrower’s escrow account, if 103 applicable; or 104 (

b) Enforcing the note and security instrument as the 105 current owner of the promissory note or as the authorized agent 106 of the current owner of the promissory note. 107

Section

Section 494.00163, Florida Statutes, is created 108 to read: 109 494.00163 Residential mortgage loans; lender-placed 110 insurance; periodic statements.— 111

(1) A mortgage lender or mortgage servicer must comply with 112 12 C.F.R. s. 1024.37. 113

(2) Periodic statements for residential mortgage loans in 114 the state must follow all the provisions set forth in 12 C.F.R. 115 s. 1026.41. 116

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 5 of 20 CODING: Words stricken are deletions; words underlined are additions.

(3) A servicer of a reverse mortgage or a small mortgage 117 servicer is not exempt from the requirements of 12 C.F.R. s. 118 1024.37 and 12 C.F.R. s. 1026.41. As used in this section, the 119 term “small mortgage servicer” means a mortgage servicer that, 120 together with any affiliates, services up to 5,000 residential 121 mortgage loans, all of which have the mortgage servicer or its 122 affiliate as the creditor or assignee. 123

Section

Section 494.00225, Florida Statutes, is created 124 to read: 125 494.00225 Residential mortgage loan modifications to avoid 126 foreclosure; transfers of duties and obligations of mortgage 127 servicers and mortgage lenders.—If a borrower of a residential 128 mortgage loan has been approved in writing for a first lien loan 129 modification, a foreclosure prevention alternative under s. 130 494.0027, or other loan modification to avoid foreclosure and if 131 the servicing of the borrower’s mortgage loan is transferred or 132 sold, the mortgage servicer or mortgage lender to whom the 133 mortgage loan is transferred or sold shall assume all duties and 134 obligations related to such previously approved first lien loan 135 modification, foreclosure prevention alternative, or other loan 136 modification. 137

Section

Section 494.0027, Florida Statutes, is created 138 to read: 139 494.0027 Foreclosure prevention alternatives for 140 residential mortgage loans.— 141

(1) As used in this section, the term: 142 (a) “Complete application” means an application for a 143 foreclosure prevention alternative for which the borrower has 144 provided all documents required by the mortgage servicer or 145

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 6 of 20 CODING: Words stricken are deletions; words underlined are additions. mortgage lender within the reasonable timeframe specified by the 146 mortgage servicer or mortgage lender. 147 (b) “Single point of contact” means a person who has, or a 148 team of personnel of which each member has, the ability, 149 authority, and responsibility to: 150 1.

Communicate the process by which a borrower may apply 151 for an available foreclosure prevention alternative and the 152 deadline for any required submission to be considered for the 153 foreclosure prevention alternative. 154 2. Coordinate receipt of all documents associated with the 155 available foreclosure prevention alternatives and notify the 156 borrower of any missing document necessary to c omplete an 157 application for a foreclosure prevention alternative. 158 3.

Have access to current information and sufficient 159 personnel to timely, accurately, and adequately inform the 160 borrower of the current status of the foreclosure prevention 161 alternative. 162 4. Ensure that the borrower is considered for all 163 foreclosure prevention alternatives offered by, or through, the 164 mortgage servicer or mortgage lender and for which the borrower 165 is or may be eligible. 166 5. Have access to the person who has the ability and 167 authority to stop the foreclosure process when necessary. 168 (2)(

a) A mortgage servicer or mortgage lender may not 169 commence a civil action for the recovery of any debt, or for the 170 enforcement of any right, under a residential mortgage loan 171 which is not barred by this

chapter or

chapter 702 or any other 172 provision of law, record a notice of default or a notice of 173 sale, or conduct a foreclosure sale, if a borrower submits an 174

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 7 of 20 CODING: Words stricken are deletions; words underlined are additions. application for a foreclosure prevention alternative offered by, 175 or through, the borrower’s mortgage servicer or mortgage lender, 176 unless one of the following has occurred: 177 1.

The borrower fails to submit all documents or 178 information required to complete the application within the 179 allotted timeframe authorized by the mortgage servicer or 180 mortgage lender, which must be at least 30 calendar days after 181 the date of the initial acknowledgment of receipt of the 182 application sent to the borrower. 183 2. The mortgage servicer or mortgage lender makes a written 184 determination that the borrower is not eligible for a 185 foreclosure prevention alternative, and any appeal period under 186 subsection (5) has expired. 187 3.

The borrower does not accept a written offer for a 188 foreclosure prevention alternative within 30 calendar days after 189 the date of the offer. 190 4. The borrower accepts a written offer for a foreclosure 191 prevention alternative, but defaults on or otherwise breaches 192 the borrower’s obligations under the foreclosure prevention 193 alternative. 194 (b)1.

If a borrower requests a foreclosure prevention 195 alternative, the mortgage servicer or mortgage lender shall 196 promptly establish a single point of contact and provide to the 197 borrower one or more direct means of communication with the 198 single point of contact. 199 2. A single point of contact must remain assigned to the 200 borrower’s account until the mortgage servicer or mortgage 201 lender determines that all foreclosure prevention alternatives 202 offered by, or through, the mortgage servicer or mortgage lender 203

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 8 of 20 CODING: Words stricken are deletions; words underlined are additions. have been exhausted or the borrower’s account becomes current. 204 3. The mortgage servicer or mortgage lender shall ensure 205 that a single point of contact refers and transfers the borrower 206 to an appropriate supervisor upon the borrower’s request, if the 207 single point of contact has a supervisor. 208 4.

If the responsibilities of a single point of contact are 209 performed by a team of personnel, the mortgage servicer or 210 mortgage lender shall ensure that each member of the team is 211 knowledgeable about the borrower’s situation and current status 212 in the process of seeking a foreclosure prevention alternative. 213

(3) Within 7 business days after receiving an application 214 for a foreclosure prevention alternative or any document in 215 connection with a foreclosure prevention alternative application 216 for a residential mortgage loan, a mortgage servicer or mortgage 217 lender shall send to the borrower, by first-class mail or, if an 218 electronic mail address is provided, by electronic mail, written 219 acknowledgment of the receipt of the application or document. 220 (

a) Upon receipt of an application for a foreclosure 221 prevention alternative, the mortgage servicer or mortgage lender 222 shall include in the initial acknowledgment of receipt of the 223 application: 224 1. A description of the process for considering the 225 application, including, without limitation, an estimate of when 226 a decision on the application will be made and the length of 227 time the borrower will have to consider an offer for a 228 foreclosure prevention alternative. 229 2. A statement of any deadlines that affect the processing 230 of an application for a foreclosure prevention alternative, 231 including, without limitation, the deadline for submitting any 232

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 9 of 20 CODING: Words stricken are deletions; words underlined are additions. missing document. 233 3. A statement of the expiration dates for any documents 234 submitted by the borrower. 235 (

b) If a borrower submits an application for a foreclosure 236 prevention alternative but does not initially submit all the 237 documents or information required to complete the application, 238 the mortgage servicer or mortgage lender shall include in the 239 initial acknowledgment of receipt of the application: 240 1. A statement of any deficiency in the borrower’s 241 application and allow the borrower at least 30 calendar days to 242 submit any missing document or information required to complete 243 the application. 244 2. All the information required under subparagraphs (a)1., 245 2., and 3. 246

(4) If a borrower accepts an offer for a foreclosure 247 prevention alternative for a residential mortgage loan, the 248 mortgage servicer or mortgage lender shall provide the borrower 249 with a copy of the complete agreement of the foreclosure 250 prevention alternative signed by the mortgage lender or an agen t 251 or authorized representative of the mortgage lender. 252

(5) If a borrower submits a complete application for a 253 foreclosure prevention alternative for a residential mortgage 254 loan and the borrower’s application is denied, the mortgage 255 servicer or mortgage lender shall send to the borrower a written 256 statement of: 257 (

a) The reason for the denial. 258 (

b) The length of time the borrower has to request an 259 appeal of the denial, which must be at least 30 calendar days. 260 (

c) Instructions regarding how to appeal the denial, 261

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 10 of 20 CODING: Words stricken are deletions; words underlined are additions. including, without limitation, how to provide evidence that the 262 denial was in error. 263

(6) If a borrower of a residential mortgage loan submits a 264 complete application for a foreclosure prevention alternative 265 and the borrower’s application is denied, the m ortgage servicer 266 or mortgage lender may not commence a civil action for the 267 recovery of any debt, or for the enforcement of any right, under 268 a residential mortgage loan which is not barred by this

chapter 269 or

chapter 702 or any other provision of law, recor d a notice of 270 default or a notice of sale, or conduct a foreclosure sale until 271 the later of: 272 (

a) Sixty calendar days after the borrower is sent the 273 written statement required by subsection (5); or 274 (

b) If the borrower appeals the denial, the later of: 275 1. Fifteen calendar days after the denial of the appeal; or 276 2. If the appeal is successful, 14 calendar days after a 277 foreclosure prevention alternative offered after the appeal is 278 declined by the borrower; or 279 3. If a foreclosure prevention alternative offered a fter 280 the appeal is accepted, the date on which the borrower fails to 281 timely submit the first payment or otherwise breaches the terms 282 of the offer. 283

(7) A mortgage servicer or mortgage lender is not required 284 to evaluate a foreclosure prevention alternative a pplication 285 from a borrower of a residential mortgage loan who has already 286 been evaluated or afforded a fair opportunity to be evaluated 287 for a foreclosure prevention alternative or who has been 288 evaluated or afforded a fair opportunity to be evaluated 289 consistent with the requirements of this section, unless: 290

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 11 of 20 CODING: Words stricken are deletions; words underlined are additions. (

a) There has been a material change in the borrower’s 291 financial circumstances since the date of the borrower’s 292 previous application. 293 (

b) The change in paragraph (

a) is documented by the 294 borrower and submitted to the mortgage servicer or mortgage 295 lender. 296

(8) A mortgage servicer or mortgage lender may not charge 297 or collect: 298 (

a) An application fee, processing fee, or other fee for a 299 foreclosure prevention alternative; or 300 (

b) Late fees for periods during which: 301 1. A foreclosure prevention alternative is under 302 consideration or a denial is being appealed; 303 2. The borrower is making timely payments under a 304 foreclosure prevention alternative; or 305 3. A foreclosure prevention alternative is being evaluated 306 or exercised. 307

Section

Section 627.4055, Florida Statutes, is created 308 to read: 309 627.4055 Lender-placed insurance for residential mortgage 310 loan guaranty.— 311

(1) As used in this section, the term: 312 (a) “Affiliate” has the same meaning as in s. 624.10. 313 (b) “Lender-placed insurance” means insurance obtained by a 314 mortgage servicer or mortgage lender when a borrower of a 315 residential mortgage loan does not maintain valid or sufficient 316 insurance upon the mortgaged real property as required by the 317 terms of the mortgage agreement. 318 (c) “Mortgage servicer” has the same meaning as in s. 319

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 12 of 20 CODING: Words stricken are deletions; words underlined are additions. 494.001. 320 (d) “Person affiliated” means an affiliate or affiliated 321 person, as those terms are defined in s. 624.10. 322 (2)(

a) An insurer or insurance agent may not: 323 1. Issue lender-placed insurance on a mortgaged property 324 if: 325 a. The insurer or insurance agent or an affiliate of the 326 insurer or insurance agent owns, performs the servicing for, or 327 owns the servicing right to, the mortgaged property; or 328 b. The mortgage servicer or mortgage lender has not 329 complied with 12 C.F.R. s. 1024.37. 330 2. Except for payment to a mortgage lender for any loss 331 resulting from a mortgage default or property foreclosure: 332 a.

Compensate any mortgage lender, insurer, investor, or 333 mortgage servicer, including, but not limited to, t hrough 334 payment of commissions, on a lender-placed insurance policy 335 issued by the insurer or insurance agent. 336 b. Make any payment, including, but not limited to, payment 337 of expenses, to any mortgage lender, insurer, investor, or 338 mortgage servicer for the purpose of securing lender-placed 339 insurance business or related outsourced services. 340 c.

Share lender-placed insurance premium or risk with the 341 mortgage lender, investor, or mortgage servicer that obtained 342 the lender-placed insurance. 343 d. Offer contingent commissions, profit sharing, or other 344 payments dependent on profitability or loss ratios to any person 345 affiliated with lender-placed insurance. 346 (

b) An insurer or insurance agent may not provide free or 347 below-cost outsourced services to a mortgage lender, insur ance 348

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 13 of 20 CODING: Words stricken are deletions; words underlined are additions. producer, investor, or mortgage servicer or outsource its own 349 functions to a mortgage lender, insurance producer, investor, or 350 mortgage servicer on an above-cost basis. 351

Section

Section 635.0215, Florida Statutes, is created 352 to read: 353 635.0215 Lender-placed insurance for residential mortgage 354 loan guaranty.— 355

(1) As used in this section, the term: 356 (a) “Affiliate” has the same meaning as in s. 624.10. 357 (b) “Lender-placed insurance” has the same meaning as in s. 358 627.4055(1). 359 (c) “Mortgage servicer” has the same meaning as in s. 360 494.001. 361 (d) “Person affiliated” means an affiliate or affiliated 362 person, as those terms are defined in s. 624.10. 363 (2)(

a) An insurer or insurance agent may not: 364 1. Issue lender-placed insurance on a mortgaged property 365 if: 366 a. The insurer or insurance agent or an affiliate of the 367 insurer or insurance agent owns, performs the servicing for, or 368 owns the servicing right to, the mortgaged property; or 369 b. The mortgage servicer or mortgage lender has not 370 complied with 12 C.F.R. s. 1024.37. 371 2. Except for payment to a mortgage lender for any loss 372 resulting from a mortgage default or property foreclosure: 373 a.

Compensate any mortgage lender, insurer, investor, or 374 mortgage servicer, including, but not limited to, through 375 payment of commissions, on a lender-placed insurance policy 376 issued by the insurer or insurance agent. 377

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 14 of 20 CODING: Words stricken are deletions; words underlined are additions. b. Make any payment, including, but not limited to, payment 378 of expenses, to any mortgage lender, insurer, investor, or 379 mortgage servicer for the purpose of securing lender -placed 380 insurance business or related outsourced services. 381 c. Share lender-placed insurance premium or risk with the 382 mortgage lender, investor, or mortgage servicer that obtained 383 the lender-placed insurance. 384 d.

Offer contingent commissions, profit sharing, or other 385 payments dependent on profitability or loss ratios to any person 386 affiliated with lender-placed insurance. 387 (

b) An insurer or insurance agent may not provide free or 388 below-cost outsourced services to a mortgage lender, insurance 389 producer, investor, or mortgage servicer or outsource its own 390 functions to a mortgage lender, insurance producer, investor, or 391 mortgage servicer on an above-cost basis. 392

Section

Section 702.013, Florida Statutes, is created to 393 read: 394 702.013 Foreclosure prevention alternatives for residential 395 mortgage loans.— 396

(1) As used in this section, the term: 397 (a) “Complete application” has the same meaning as in s. 398 494.0027(1). 399 (b) “Foreclosure prevention alternative” has the same 400 meaning as in s. 494.001. 401 (c) “Mortgage servicer” has the same meaning as in s. 402 494.001. 403 (d) “Single point of contact” has the same meaning as in s. 404 494.0027(1). 405 (2)(

a) A mortgage servicer or mortgage lender may not 406

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 15 of 20 CODING: Words stricken are deletions; words underlined are additions. commence a civil action for the recovery of any debt, or for the 407 enforcement of any right, under a residential mortgage loan 408 which is not barred by this

chapter or

chapter 494 or any other 409 provision of law, record a notice of default or a notice of 410 sale, or conduct a foreclosure sale, if a borrower submits an 411 application for a foreclosure prevention alterna tive offered by, 412 or through, the borrower’s mortgage servicer or mortgage lender, 413 unless one of the following has occurred: 414 1.

The borrower fails to submit all documents or 415 information required to complete the application within the 416 allotted timeframe authorized by the mortgage servicer or 417 mortgage lender, which must be at least 30 calendar days after 418 the date of the initial acknowledgment of receipt of the 419 application sent to the borrower. 420 2. The mortgage servicer or mortgage lender makes a written 421 determination that the borrower is not eligible for a 422 foreclosure prevention alternative, and any appeal period under 423 subsection (5) has expired. 424 3.

The borrower does not accept a written offer for a 425 foreclosure prevention alternative within 30 calendar days afte r 426 the date of the offer. 427 4. The borrower accepts a written offer for a foreclosure 428 prevention alternative, but defaults on or otherwise breaches 429 the borrower’s obligations under the foreclosure prevention 430 alternative. 431 (b)1. If a borrower requests a foreclosure prevention 432 alternative, the mortgage servicer or mortgage lender shall 433 promptly establish a single point of contact and provide to the 434 borrower one or more direct means of communication with the 435

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 16 of 20 CODING: Words stricken are deletions; words underlined are additions. single point of contact. 436 2. A single point of contact must remain assigned to the 437 borrower’s account until the mortgage servicer or mortgage 438 lender determines that all foreclosure prevention alternatives 439 offered by, or through, the mortgage servicer or mortgage lender 440 have been exhausted or the borrower’s account becomes current. 441 3.

The mortgage servicer or mortgage lender shall ensure 442 that a single point of contact refers and transfers the borrower 443 to an appropriate supervisor upon the borrower’s request, if the 444 single point of contact has a supervisor. 445 4. If the responsibilities of a single point of contact are 446 performed by a team of personnel, the mortgage servicer or 447 mortgage lender shall ensure that each member of the team is 448 knowledgeable about the borrower’s situation and current status 449 in the process of seeking a foreclosure prevention alternative. 450

(3) Within 7 business days after receiving an application 451 for a foreclosure prevention alternative or any document in 452 connection with a foreclosure prevention alternative application 453 for a residential mortgage loan, a mortgage servicer or mortgage 454 lender shall send to the borrower, by first-class mail or, if an 455 electronic mail address is provided, by electronic mail, written 456 acknowledgment of the receipt of the application or document. 457 (

a) Upon receipt of an application for a foreclosure 458 prevention alternative, the mortgage servicer or mortgage lender 459 shall include in the initial acknowledgment of receipt of the 460 application: 461 1. A description of the process for considering the 462 application, including, without limitation, an estimate of when 463 a decision on the application will be made and the length of 464

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 17 of 20 CODING: Words stricken are deletions; words underlined are additions. time the borrower will have to consider an offer for a 465 foreclosure prevention alternative. 466 2. A statement of any deadlines that affect the processing 467 of an application for a foreclosure prevention alternative, 468 including, without limitation, the deadline for submitting any 469 missing document. 470 3. A statement of the expiration dates for any documents 471 submitted by the borrower. 472 (

b) If a borrower submits an application for a foreclosure 473 prevention alternative but does not initially submit all the 474 documents or information required to complete the application, 475 the mortgage servicer or mortgage lender shall include in the 476 initial acknowledgment of receipt of the application: 477 1. A statement of any deficiency in the borrower’s 478 application and allow the borrower at least 30 calendar days to 479 submit any document or information required to complete the 480 application. 481 2. All the information required under subparagraphs (a)1., 482 2., and 3. 483

(4) If a borrower accepts an offer for a foreclosure 484 prevention alternative for a residential mortgage loan, the 485 mortgage servicer or mortgage lender shall provide the borrower 486 with a copy of the complete agreement of the foreclosure 487 prevention alternative signed by the mortgage lender or an agent 488 or authorized representative of the mortgage lender. 489

(5) If a borrower submits a complete application for a 490 foreclosure prevention alternative for a residential mortgage 491 loan and the borrower’s application is denied, the mortgage 492 servicer or mortgage lender shall send to the borrower a written 493

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 18 of 20 CODING: Words stricken are deletions; words underlined are additions. statement of: 494 (

a) The reason for the denial. 495 (

b) The length of time the borrower has to request an 496 appeal of the denial, which must be at least 30 calendar days. 497 (

c) Instructions regarding how to appeal the denial, 498 including, without limitation, how to provide evidence that the 499 denial was in error. 500

(6) If a borrower of a residential mortgage loan submits a 501 complete application for a foreclosure prevention alternative 502 and the borrower’s application is denied, the mortgage servicer 503 or mortgage lender may not commence a civil action for the 504 recovery of any debt, or for the enforcement of any right, under 505 a residential mortgage loan which is not barred by this

chapter 506 or

chapter 494 or any other provision of law, record a notice of 507 default or a notice of sale, or conduct a foreclosure sale until 508 the later of: 509 (

a) Sixty calendar days after the borrower is sent the 510 written statement required by subsection (5); or 511 (

b) If the borrower appeals the denial, the later of: 512 1. Fifteen calendar days after the denial of the appeal; or 513 2. If the appeal is successful, 14 calendar days after a 514 foreclosure prevention alternative offered after the appeal is 515 declined by the borrower; or 516 3. If a foreclosure prevention alternative offered after 517 the appeal is accepted, the date on which the borrower fails to 518 timely submit the first payment or otherwise breaches the terms 519 of the offer. 520

(7) A mortgage servicer or mortgage lender is not required 521 to evaluate a foreclosure prevention alternative application 522

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 19 of 20 CODING: Words stricken are deletions; words underlined are additions. from a borrower of a residential mortgage loan who has already 523 been evaluated or afforded a fair opportunity to be evaluated 524 for a foreclosure prevention alternative or who has been 525 evaluated or afforded a fair opportunity to be evaluated 526 consistent with the requirements of this section, unless: 527 (

a) There has been a material change in the borrower’s 528 financial circumstances since the date of the borrower’s 529 previous application. 530 (

b) The change in paragraph (

a) is documented by the 531 borrower and submitted to the mortgage servicer or mortgage 532 lender. 533

(8) A mortgage servicer or mortgage lender may not charge 534 or collect: 535 (

a) Application fees, processing fees, or other fees for a 536 foreclosure prevention alternative; or 537 (

b) Late fees for periods during which: 538 1. A foreclosure prevention alternative is under 539 consideration or a denial is being appealed; 540 2. The borrower is making timely payments under a 541 foreclosure prevention alternative; or 542 3. A foreclosure prevention alternative is being evaluated 543 or exercised. 544

Section 8. Paragraphs (a), (b), and (

c) of subsection (5) 545 of

section 494.00115, Florida Statutes, are amended to read: 546 494.00115 Exemptions.— 547

(5) As used in this section, the term “hold himself or 548 herself out to the public as being in the mortgage lending 549 business” includes any of the following: 550 (

a) Representing to the public, through advertising or 551

Florida Senate - 2022 SB 1706 37-00545B-22 20221706__ Page 20 of 20 CODING: Words stricken are deletions; words underlined are additions. other means of communicating or providing information, including 552 the use of business cards, stationery, brochures, signs, rate 553 lists, or promotional items, by any method, that such individual 554 can or will perform the activities described in s. 494.001(25) 555 s. 494.001(24). 556 (

b) Soliciting in a manner that would lead the intended 557 audience to reasonably believe that such individual is in the 558 business of performing the activities described in s. 559 494.001(25) s. 494.001(24). 560 (

c) Maintaining a commercial business establishment at 561 which, or premises from which, such individual regularly 562 performs the activities described in s. 494.001(25) s. 563 494.001(24) or regularly meets with current or prospective 564 mortgage borrowers. 565

Section 9. Paragraph (

d) of subsection (4) of

section 566 494.0025, Florida Statutes, is amended to read: 567 494.0025 Prohibited practices.—It is unlawful for any 568 person: 569

(4) In any practice or transaction or course of business 570 relating to the sale, purchase, negotiation, promotion, 571 advertisement, or hypothecation of mortgage loan transactions, 572 directly or indirectly: 573 (

d) To misrepresent a residential mortgage loan, as 574 described in s. 494.001(26)(

a) s. 494.001(25)(a), as a business 575 purpose loan. 576

Section 10. This act shall take effect July 1, 2022. 577