The Florida Senate Banking and Insurance Committee is now scheduled to review SB 1632. You can attend the 4 p.m. EST Committee Meeting on 4/1/2019 to show your opposition in person. More details on how to do this below.

Review Date: Monday, April 1
Time: 4-6 p.m.
Location: Pat Thomas Committee Room, 412 Knott Building

How to show your opposition to SB 1632 at the Committee Meeting:

  1. Fill and bring an Appearance Record (the Committee also has them available as you walk in).
  2. Arrive at the meeting shortly before 4 p.m.
  3. Give the Appearance Record to Committee Staff.
  4. The Committee Chair may call the bill for review at any time during the meeting.
  5. You will be called to speak for 1-3 minutes during the bill’s review period. (You may also show your opposition to the bill WITHOUT speaking by filling in the “Waive Speaking: Against” section of the Appearance Record Form)
  6. If you wish, you may leave after the bill is reviewed.

SB 1632 Synopsis

SB 1632 removes a mortgage lender licensing exemption. This exemption allows private lenders to originate loans secured by residential property without a mortgage lender license, so long as the loan is for business rather than consumer purposes. Full bill text here.

Talking Points

  1. This bill is inconsistent with the federal Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA). TILA, RESPA and the current FL statute 494.001 define a mortgage loan as a “residential loan primarily for personal, family, or household use which is secured by a mortgage…” SB 1632 inconsistently redefines it as a “residential loan that is secured by a mortgage…”
  2. SB 1632 says that the reasoning for this is that “borrowers who apply for and receive business-purpose loans, which are mortgage loans for business purposes which are secured by dwellings, are afforded limited consumer protection…” It does not make sense to extend consumer protection to business-purpose borrowers.
  3. This bill will negatively impact Floridians and the Florida economy. Impacts include:
  • Less capital deployed into the Florida economy as private lenders choose to lend their money elsewhere.
  • Higher interest rates for non-consumer borrowers due to less free market competition.
  • Higher interest rates for non-consumer borrowers due to lenders’ higher operating costs.
  • Less affordable housing as non-consumer borrowers in turn raise their purchase and/or leasing prices to the end-consumer owner-occupied buyer or renter.

You may also show your opposition by contacting Florida legislators. Information on how to do this here.