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Florida Origination Reference Guide

Florida Origination Reference Guide

Owned by Kacey Olson (Unlicensed)
Last updated: Aug 29, 2017

CitationTopicRequirement
Administrative Code / Fla. Admin. Code Ann. Rule §69B-124.002

Anti-Coercion Notice

When negotiations for a loan begin, and prior to any formal application for loan or the payment of any fees or costs required with the filing of an application, a lender must notify the borrower of the borrower's rights regarding the placing of insurance. The written notice must be given to the borrower in the form provided below. A copy of the notice must be signed by the borrower and retained by the lender.

Preferred Title Services, Inc. v. Seven Seas Resort Condominium, Inc., 458 So.2d 884 (Dist. Ct. App. Fl. 1984)

The Florida Bar v. Miravalle, 761 So.2d 1049 (Fla. 2000)

Document Preparation Fee

A mortgage lender may not charge a fee for preparation of mortgages, or other similar legal documents, unless a licensed Florida attorney (who may be an in-house attorney) supervised the preparation, or the lender may be deemed to be engaged in the unauthorized practice of law. See Preferred Title Services, Inc. v. Seven Seas Resort Condominium, Inc., 458 So.2d 884 (Dist. Ct. App. Fl. 1984); The Florida Bar v. Miravalle, 761 So.2d 1049 (Fla. 2000). See also Fla. Ethics Op. 87-8 (1987).
Escrow Disbursements / Fla. Admin. Code Ann. Rule §69B-186.008(8)

Insurance Premium Disclosure & Settlement Agent Certification Form

While it is the responsibility of the settlement agent to provide this form and collect all signatures of all parties to the transaction, lenders must be provided a completed and signed copy of this form for its records.
Mortgage Brokerage and Lending Act / Fla. Stat. Ann. §494.007

Mortgage Loan Commitment (Optional)

If a commitment is issued, the mortgage lender must disclose in writing: (1) the expiration date of the commitment; (2) the mortgage amount, meaning the face amount of credit provided to the borrower or in the borrower's behalf; (3) if the interest rate or other terms are subject to change before expiration of the commitment: (a) the basis, index, or method, if any, which will be used to determine the rate at closing (such basis, index, or method must be established and disclosed with direct reference to the movement of an interest rate index or of a national or regional index that is available to and verifiable by the borrower and beyond the control of the lender); or (b) the following statement, in at least 10-point bold type: The interest rate will be the rate established by the lender in its discretion as its prevailing rate ____ days before closing. and (4) the time, if any, within which the commitment must be accepted by the borrower.
Mortgage Brokerage and Lending Act / Fla. Stat. Ann. §494.0023

Notice of Conflicting Interest

If, in a mortgage transaction, a licensee has a conflicting interest, the licensee shall, at a minimum, provide the following disclosures to the borrower in writing: (a) The nature of the relationship, ownership, or financial interest between the provider of products or services, or business incident thereto, and the licensee making the referral; (b) An estimated charge or range of charges generally made by such a provider; (c) That a financial benefit may be received by the licensee as a result of the conflicting interest; and (d) That alternative sources may be chosen by the borrower to provide the required products or services. For defined conflicts of interest see citation link.

Administrative Code / Fla. Admin. Code Ann. §69O-186.002

Fla. Stat. Ann. §627.798

Notice to Purchaser-Mortgagor (Optional)

Must be provided by the title insurer, agent, members, employees thereof, or by agents, employees, officials of lending or other institutions to the purchaser regarding lender's title insurance.

Mortgage Brokerage and Lending Act / Fla. Stat. Ann. §494.0069

Fla. Admin. Code Rule 69V-40.155.

Rate Lock Agreement (Optional Form)

A lock-in agreement must be in writing, and must contain all of the following: (1) the expiration date of the lock-in, if any; (2) the interest rate locked in, if any; (3) the discount points locked in, if any; (4) the commitment fee locked in, if any; (5) the lock-in fee, if any; and (6) a statement advising of the provisions of the Mortgage Brokerage and Lending Act regarding lock-in agreements.
Interest and Usury / Fla. Stat. Ann. §687.03(1)

Usury

The maximum interest rate allowed for loans of $500,000 or less is 18% per year simple interest. The maximum interest rate allowed for loans over $500,000 is 25% per year.

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