Title: Requirements of Lenders of Money

Summary: Citing this act as the "Default Interest Transparency Act"; requiring lenders of money or the agents, officers, or other representatives of such lenders to provide a dated receipt under certain circumstances; requiring lenders of money or the agents, officers, or other representatives of such lenders to give a specified notice to the borrower and all obligors of the loan within a specified timeframe; requiring the assignor of a mortgage loan to provide, within a specified timeframe, a copy of the loan history statement to a borrower or obligor upon request, etc.

Full Text:
An act relating to requirements of lenders of money; providing a short title; amending s. 687.08, F.S.; requiring lenders of money or the agents, officers, or other representatives of such lenders to provide a dated receipt under certain circumstances; clarifying additional requirements for such lenders; creating s. 687.085, F.S.; requiring lenders of money or the agents, officers, or other representatives of such lenders to give a specified notice to the borrower and all obligors of the loan within a specified timeframe; requiring that such notice be sent to certain mailing addresses and, if provided, e-mail addresses; specifying the content of such notice; prohibiting default or delinquency interest charges under certain circumstances; requiring such lenders or the agents, officers, or other representatives of such lenders to provide to the borrower monthly statements after initial notification to the borrower and obligors; specifying requirements for such statements; providing applicability; providing a penalty for lenders who fail or refuse to comply with certain provisions; amending s. 701.01, F.S.; requiring the assignor of a mortgage loan to provide, within a specified timeframe, a copy of the loan history statement to a borrower or obligor upon request; requiring the assignor to provide the first copy of the history statement at no cost; authorizing the assignor to charge its standard charge for additional copies of such statement; requiring the assignee of a mortgage loan to make specified notifications to the borrower and obligor; specifying the requirements of such notice; providing retroactive application; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1.  This act may be cited as the  Default Interest Transparency Act.  Section 2. Section 687.08, Florida Statutes, is amended to read: 687.08  Lenders of Person lending money to provide give borrower receipt for payments; contents of receipt; penalty for violation.  (1)  A lender of money in this state,whether a natural person or an entity Every person,or the agent, officer, or other representative of such lender any person, lending money in this state upon security shall, whenever the borrower of such money makes a payment of any money,either principal or interest, immediately provide upon such payment being made,give to the borrower a dated receipt that states,dated of the date of such payment, which receipt shall state the amount paid,the purpose of and for what such payment,and, as applicable, that is made.If such payment is for interest on the sum borrowed or,the receipt shall so state.If the sum so paid is to be applied to the payment of the principal sum borrowed,the receipt shall so state.Every Such receipt must shall be duly and properly signed by such lender the person,or the agent, officer, or other representative of such lender the person, to whom such money is paid.In lieu of providing such receipt and in addition to the requirements imposed under s. 687.085,such a lender may provide furnish to the borrower an annual statement showing the amount of interest paid on the loan during the previous year as well as the remaining balance on the loan; except that a simple receipt must shall be given to the borrower for each payment that which is made in cash or for any payment for which receipt is requested in writing by the borrower. (2)  Any lender that Whoever refuses, upon demand, to provide give a receipt or statement in compliance complying with the requirements of this section forfeits to the borrower all shall forfeit the entire interest on the upon such principal sum to the borrower.Section 3. Section 687.085, Florida Statutes, is created to read: 687.085  Required notifications by lender of money if borrower defaults; penalty for violation.  (1)   If a borrower defaults on a loan and such default allows a lender of money to recover additional interest on the unpaid principal of the loan, whether at such lender s option or discretion or automatically under the loan s term, such lender, whether a natural person or an entity, or the agent, officer, or other representative of such lender, must, within days after the default, give written notice to the borrower and all obligors of the loan in compliance with subsection (2). (2)   The notice required under subsection (1) must be sent to the borrower s and obligor ' slast known mailing addresses as recorded by such lender. If an e-mail address for the borrower or the obligor has been provided, the notice must also be sent to the most recent e-mail address on record. The notice must include all of the following: (a)   A statement that the loan is in default. (b)   A description of the nature of the default. (c)   The interest rate currently accruing on the unpaid principal of the loan. (d)   The amount of interest that will accrue daily, monthly, and annually on the unpaid principal if the loan is not paid off or the lender does not authorize a waiver of the default in writing. (3)   Except in cases where the default arises from the borrower s failure to pay a loan in full by the maturity date specified in the loan contract, default or delinquency interest charges may not be applied retroactively or in arrears for more than days before the date the lender provides the required notice to the borrower and obligors under this section.(4)   After the initial notification to a borrower and obligors as required under this section, the lender, or the agent, officer, or other representative of the lender,shall provide to the borrower monthly statements. Each statement must include all of the following information: (a)   Payments received since the previous statement. (b)   The allocation of each payment to interest, principal, or other charges. (c)   The total unpaid balance of the loan, including interest and penalties. (d)   The current interest rate and the rate accruing on the unpaid principal of the loan. (5)   This section applies to loans that are accelerated for default and on which such lender is charging delinquency interest charges on the unpaid principal balance. (6)   This section does not apply to consumer loans governed by chapter or chapter 560. ( )   Any lender who fails or refuses to provide the notice required by this section forfeits the right to charge additional interest above the nondefault interest rate on the unpaid principal of the loan for the duration of the noncompliance period. Section 4. Section 701.01, Florida Statutes, is amended to read: 701.01 Assignment.  (1)  Any mortgagee may assign and transfer any mortgage made to her or him, and the person to whom any mortgage may be assigned or transferred may also assign and transfer it, and that person or her or his assigns or subsequent assignees may lawfully have, take and pursue the same means and remedies which the mortgagee may lawfully have, take or pursue for the foreclosure of a mortgage and for the recovery of the money secured thereby. Within business days after a borrower s or obligor s request, the assignor of a mortgage loan shall provide to the requesting borrower or obligor a copy of the loan history statement,detailing payments and outstanding balances up to the date of assignment.The first copy must be provided to the borrower or obligor at no cost;however, the assignor may charge its standard charge for a bank statement copy for any additional copies of the loan history statement requested by the borrower or obligor. (2)   In addition to complying with s. 687.085, the assignee of a mortgage loan shall notify the borrower and obligor of any changes to outstanding balances owed on the loan,including changes to the loan history of payments and outstanding balances of the loan as of the date of assignment. Such notification must be included with the assignee s first statement or notice of amounts sent to the borrower or obligor, but no later than days after the mortgage loan is assigned. The notification must include all of the following information: (a)   The default relied upon by the assignee for the changes made.(b)   An explanation of the assignee s method of calculating the additional charges. (c)   A detailed breakdown of the amounts claimed as owed, including unpaid principal, interest, charges, or other amounts under the loan contract. Section 5.  The amendments made by this act and s. 687.085, Florida Statutes, as created by this act, are remedial in nature and appl yto all loans executed in this state before, on, or after the effective date of this act which are not governed by other specific regulations that charge additional interest on the unpaid principal before the stated maturity date of the loan,subject to the limits on interest charges imposed under chapter,Florida Statutes.Section 6. This act shall take effect July 1, 2025.