494.00421 Fees earned upon obtaining a bona fide commitment.
494.00421 Fees earned upon obtaining a bona fide commitment.
Notwithstanding the provisions of ss. 494.001-494.0077, any mortgage broker which contracts to receive a loan origination fee from a borrower upon obtaining a bona fide commitment shall accurately disclose in the mortgage broker agreement:
(1) The gross loan amount.
(2) In the case of a fixed-rate mortgage, the note rate.
(3) In the case of an adjustable rate mortgage:
(a) The initial note rate.
(b) The length of time for which the initial note rate is effective.
(c) The frequency of changes.
(d) The limitation upon such changes including adjustment to adjustment cap and life cap.
(e) Whether the loan has any potential for negative amortization.
(f) Identification of the margin-interest rate differential.
(g) Identification of a nationally recognized index which index must be free from control of the mortgage broker or mortgage lender.
(4) The estimated net proceeds to be paid directly to the borrower. “Estimated net proceeds” means the cash to be received by the borrower after payment of any fees, charges, debts, liens, or encumbrances to perfect the lien of the new mortgage and establish the agreed-upon priority of the new mortgage.
(5) The lien priority of the new proposed mortgage.
(6) The number of calendar days, which are mutually agreed upon, within which the mortgage broker shall obtain a bona fide mortgage commitment.
(7)(a) The following statement, in at least 12-point boldface type immediately above the signature lines for the borrowers:
“You are entering into a contract with a mortgage broker to obtain a bona fide mortgage loan commitment under the same terms and conditions as stated hereinabove or in a separate executed good faith estimate form. If the mortgage broker obtains a bona fide commitment under the same terms and conditions, you will be obligated to pay the loan origination fees even if you choose not to complete the loan transaction. If the provisions of s. 494.00421, Florida Statutes, are not met, the loan origination fee can only be earned upon the funding of the mortgage loan. The borrower may contact the Department of Financial Services, Tallahassee, Florida, regarding any complaints that the borrower may have against the loan originator. The telephone number of the department is: (insert telephone number) .”
(b) Paragraph (a) does not apply to nonresidential mortgage loan commitments in excess of $1 million.
(8) Any other disclosure required pursuant to s. 494.0038.
History. s. 13, ch. 95-313; s. 23, ch. 99-155; s. 536, ch. 2003-261; s. 39, ch. 2009-241.