|Gov. Scott signs real estate-related bills into law
TALLAHASSEE, Fla. – March 23, 2018 – Gov. Scott signed a number of bills into law within the past week including a few that could impact Fla. Homeowners:
CS/HB 935: Mortgage regulation
The new law defines the term "business purpose loan" and says that it's unlawful for anyone to misrepresent a residential mortgage loan as a business purpose loan. It also defines the term "hold himself or herself out to the public as being in the mortgage lending business." It's currently acceptable for an individual investor to make or acquire a mortgage loan with their funds, or to sell a mortgage loan, without being licensed as a mortgage lender, providing they don't "hold himself or herself out to the public as being in the mortgage lending business."
The law is the Florida Legislature's response to alleged unlicensed mortgage lending activity in South Florida. According to reports, some lending entities provided residential loans with usurious interest rates and high fees made under the guise of business purpose loans in order to avoid licensure and disclosure requirements under Ch. 494, F.S., as a mortgage lender. In some cases, they allegedly forced the borrower to form a limited liability company if they wanted the money.
Effective date: July 1, 2019.
CS/CS/HB 1011: Homeowner's insurance policy disclosures
Effective date: Jan. 1, 2019.
HB 617: Covenants and Restrictions
Effective date: Oct. 1, 2018
HB 193: Mortgage brokering
Effective date: July 1, 2018© 2018 Florida Realtors®