Current as of: Dec. 2011
(1) A mortgage broker shall state in each contract for services the total fee to be received. The total fee shall not exceed the maximum as prescribed in Section 494.0042(2), F.S.
(2)(a) In determining the total loan origination fee, all compensation for the following services, by whatever name called, shall be included:
1. Arranging for a conditional mortgage loan commitment between a borrower and a lender;
2. Taking an application, assembling information and preparing all paperwork and documentation necessary for a conditional mortgage loan commitment;
3. Reviewing, analyzing, and evaluating a borrower’s financial statements, income, and credit history; and
4. Incidental services utilized in arranging for and procuring a conditional loan commitment, such as, courier services, express mailings, and long distance telephone charges, except as provided in subparagraph (3)(a)12., below.
5. Premiums and other charges for insurance written in connection with a loan, except as provided in subparagraph (3)(a)5. below.
(b) The total loan origination fee shall include all compensation for the services described in paragraph (2)(a), whether or not the compensation is to be received by the licensee, a co-broker, an affiliate, or an independent third party.
(c) A good faith estimate does not supplant or substitute for the agreement required by Section 494.0038(1), F.S.
(3)(a) In addition to stating the total loan origination fee, the licensee shall provide a good faith estimate of costs for services or products that may be incurred or expended on behalf of the borrower in arranging for the loan. Services or products for which costs shall be estimated, but which are not required to be included in the loan origination fee include the following:
1. Appraisal fee charged to obtain a statement of property value for the lender prior to closing. This subparagraph shall not be construed to prevent a licensee or lender from setting reasonable criteria for the selection of an appraiser;
2. Inspection fees required by the lender, its agents, or a governmental body or agency or quasi-governmental body or agency for the security property;
3. Loan assumption fee and a transfer fee charged to enable the buyer to assume existing loans;
4. Pest inspection fee charged to cover inspections for termites or other pest infestations;
5. Charges for title insurance as defined in Section 624.608, F.S., abstract of title, title search fee, and fees for an attorney’s title opinion. A licensee may not receive or accept any monetary consideration or inducement in connection with the issuance of a title insurance policy in a transaction in which he was involved;
6. Survey or topography fees charged to determine the exact location of any structures and the lot line, as well as easements and rights of way;
7. Mortgage guaranty insurance as defined in Section 635.011, F.S.;
8. Credit report fee;
9. Photograph fees for photographs of the property offered as security, if required by the lender in writing and acceptable photographs of the property have not been otherwise provided to the lender;
10. Flood hazard determination fee charged by an entity to assist lenders in determining whether the security property is in a flood hazard area;
11. Real estate tax service fee charged by an entity engaged in the business of assisting lenders or their agents in assuring that real property taxes are paid on the security property;
12. Incidental fees, such as, courier services and express mailings if pre-authorized in writing by the borrower;
13. Settlement or closing fee charged by a settlement agent for distributing the proceeds of the mortgage loan;
14. Attorney’s fees;
15. Charges imposed by federal, state, county or municipal governments or government agencies or quasi-governmental agencies including, but not necessarily limited to, the cost of recording the mortgage, cost of documentary stamps, and intangible taxes for the mortgage;
16. Environmental audit costs required by the lender, or by local ordinances or state or federal law; and
17. Costs incurred in curing title defects affecting the security property.
(b) The costs enumerated in paragraph (3)(a) may be charged and collected provided they are itemized and supported by an actual expenditure.
(4)(a) Premiums or other charges for life, credit life, accident, health, or loss-of-income insurance written in connection with a loan are not included in determining the loan origination fee if:
1. The licensee or registrant discloses to the borrower in writing that such insurance is not required to be purchased through the licensee; and
2. The licensee discloses to the borrower in writing the premiums for the initial term.
(b) Premiums or other charges for insurance that is written in connection with a mortgage loan and protects against loss or damage to property or liability arising out of the ownership or use of property are not included in determining the loan origination fee if the borrower may choose the insurance agent and the insurance provider.
(5) The loan origination fee does not include prepaid finance charges of the lender under the Federal Truth in Lending Act, as amended, and Federal Reserve Board Regulation Z that are disclosed on a Truth in Lending Disclosure form provided to the borrower.
(6) The maximum fees or commissions as provided in Section 494.0042(2), F.S., must be based on the net proceeds of the loan.
(7) In determining the maximum fees or commissions on the gross proceeds of a loan, the following method may be used: On loans in excess of $1,000 and not over $5,650, add $1,500 to the gross proceeds of the loan and divide that sum by 11; and, on loans of $5,760 and over, divide the gross proceeds by 11 and add $227.27. On loans that are over $5,650 but less than $5,750, the maximum fee is the amount in excess of $5,000.
(8) No person shall charge or exact, directly or indirectly, from the mortgagor or lender a fee or commission in excess of the maximum fees or commissions as set forth herein. All fees paid to or on behalf of the licensee including, but not limited to, bonus plans, advertisement allowances, incentive plans, kick-backs, premiums or discounts whether paid directly or indirectly or to an affiliate firm in which the licensee has an ownership interest, must be included in determining the maximum loan origination fees.
(9) All loan origination fees to other mortgage brokers disbursed from the loan proceeds shown on the closing statement shall reflect the name of each mortgage broker or co-brokering mortgage broker paid.
Rulemaking Authority 494.0016(4), 494.0038(2)(b) FS. Law Implemented 494.0038, 494.0042 FS. History–Revised 9-23-65, Amended 9-1-67, 5-8-68, Renumbered from 3-3.08 to 3D-40.08 on 9-8-75, Amended 9-29-75, 4-27-77, Joint Administrative Procedures Committee Objection Filed–See FAW Vol. 2, No. 19, May 7, 1976, Joint Administrative Procedures Committee Objection Withdrawn–See FAW Vol. 3, No. 30, July 29, 1977, Amended 7-6-78, 2-5-80, 8-17-83, Formerly 3D-40.08, Amended 1-5-87, 5-24-89, 8-24-92, Formerly 3D-40.008, Amended 3-23-08, 10-1-10.
Laws implemented by this Rule: Florida Statutes § 494.0038, 494.0042
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Florida Laws: Mortgage Lending
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