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Two new laws approved during the regular session of the Florida Legislature took effect yesterday. SB 1824 tightens lending rules and imposes stiff penalties for mortgage fraud violations. Among the provisions of the new law:
Borrowers must be told how much a lender pays a mortgage broker, and it must be in writing.
Good Faith Estimates must disclose all possible fees from every party involved in the mortgage—including the lender, mortgage broker, title company and other third parties. The Good Faith Estimate must be signed and dated by the borrower.
If loan terms change, the borrower must be notified no later than three business days before closing. The mortgage broker must be able to prove that the notice was provided and that the borrower accepted the new terms.
The other new law, HB 111, amends the definition of "primary title services" and "related title services," and codifies a civil court case that permits a portion of a title insurance premium to be rebated. Title agents are no longer allowed to charge a separate fee for a title examination and are no longer required to charge a minimum of their actual cost for the title search and closing. The legislation also requires an out-of-state title agent to fulfill the same licensure and continuing education requirements as a Florida-based title agent.