Florida Regulation Of Trade, Commerce, Investments, And Solicitations Code Section 494.00421 - Mortgage Brokerage And Mortgage Lending - Fees earned upon obtaining a bona fide commitment.

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Title XXXIII   REGULATION OF TRADE, COMMERCE, INVESTMENTS, AND SOLICITATIONS

Chapter 494   MORTGAGE BROKERAGE AND MORTGAGE LENDING

494.00421  Fees earned upon obtaining a bona fide commitment.--Notwithstanding the provisions of ss. 494.001-494.0077, any mortgage brokerage business which contracts to receive from a borrower a mortgage brokerage fee upon obtaining a bona fide commitment shall accurately disclose in the mortgage brokerage 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, mortgage brokerage business, mortgage lender, or correspondent 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 brokerage business shall obtain a bona fide mortgage commitment.

(7)(a)  The following statement, in no less than 12-point boldface type immediately above the signature lines for the borrowers:


"You are entering into a contract with a mortgage brokerage business 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 brokerage business obtains a bona fide commitment under the same terms and conditions, you will be obligated to pay the mortgage brokerage business fees, including, but not limited to, a mortgage brokerage fee, even if you choose not to complete the loan transaction. If the provisions of s. 494.00421, Florida Statutes, are not met, the mortgage brokerage 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 mortgage broker or the mortgage brokerage business. 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.

Florida Lawyers

• Ghazal & Gomez. Florida Fair Credit Reporting Lawyer.
• Liggio, Benrubi & Williams. Florida Insurance Attorney.
• Dobin & Jenks. Florida Securities Fraud Lawyer.

Fort Lauderdale, Florida Lawyers

• Bradford Cohen. Fort Lauderdale Criminal Defense Lawyer.
• Leifert & Leifert. Fort Lauderdale Criminal Defense Lawyer.
• Roger P. Foley. Fort Lauderdale Criminal Lawyer.
• William Ryan Moore. Fort Lauderdale Criminal Lawyer.
• Andrew Foster. Fort Lauderdale Divorce Lawyer.
• William Ryan Moore. Fort Lauderdale DUI Lawyer.
• Nishan C. Mahendran. Fort Lauderdale Immigration Lawyer.
• Ben Law Firm. Fort Lauderdale Injury Lawyer.
• Cohn, Smith & Cohn. Fort Lauderdale Injury Lawyer.
• Joseph I. Lipsky. Fort Lauderdale Personal Injury Lawyer.
• Ralph Behr. Ft. Lauderdale Criminal Defense Lawyer.
• Parker & DuFresne. Jacksonville Divorce Lawyer.
• Wood, Atter & Associates. Jacksonville Injury Lawyer.

Miami, Florida Lawyers

• Mark Eiglarsh. Miami Criminal Defense Attorney.
• Marc David Seitles. Miami Criminal Defense Lawyer.
• David Seltzer. Miami Criminal Lawyer.
• Christy L. Hertz. Miami Divorce and Mediation Lawyer.
• Lawrence S. Katz. Miami Divorce Lawyer.
• Stokes McMillan Maracini & Antunez. Miami Estate Planning Lawyer.
• David J. Halberg. Miami Florida Personal Injury Lawyer.
• Alan Goldfarb. Miami Injury Lawyer.
• Paige Trop & Ameen. Miami Injury Lawyer.
• Robert Rubenstein. Miami Injury Lawyer.
• Troy & Schwartz. Miami Injury Lawyer.
• Jason Turchin. Miami Personal Injury Attorney.
• Flaxman & Lopez. Miami Personal Injury Lawyer.
• Gerson & Schwartz. Miami Personal Injury Lawyer.
• Jose Dapena. Miami Personal Injury Lawyer.
• Sallah & Cox. Miami Securities Lawyer.

Orlando, Florida Lawyers

• Ward & Caggiano. Orlando Injury Lawyer.

Pensacola, Florida Lawyers

• James Jenkins. Pensacola Criminal Defense Lawyer.

Tampa, Florida Lawyers

• Cliff Wells. Tampa Injury Lawyer.

West Palm Beach, Florida Lawyers

• Steven M. Logan. West Palm Beach Criminal Defense Attorney.
• David Olson. West Palm Beach Criminal Defense Lawyer.
• Labovick & Labovick. West Palm Beach Injury Lawyer.

Last modified: November 21, 2006