Fla. Stat. Ann. § 494.007, while not requiring a commitment to be issued, does stipulate that “if a commitment is issued,” such commitment should contain certain disclosures, such as its expiration date, the face mortgage amount of the loan, the amount of any commitment fee (and whether it is refundable), and the timeframe in which the borrower must accept the commitment.
Ibid. §§ 494.007(3) & 494.0071 sets forth terms under which the mortgage lender must refund to the borrower any commitment fee. Fla. Admin. Code r. 69V-40.260(2)(e) also requires mortgage lenders to retain a copy of such commitments in their files.
Pursuant to these provisions, we will now be providing Cx18169, which will print in Initial Disclosure packages when:
1. “Commitment Fee Charged on Loan” equals “Yes”;
2. “Lender is a Broker” equals “No”; and
3. “State Code” equals “Florida.”
The commitment contains all the items of information and terms required under applicable Florida law. For loans with adjustable interest rates, under Supra § 494.007(1)(c), the mortgage lender may either disclose “the basis, index, or method, which will be used to determine the rate at closing,” or prescribed text. In order to keep the document simple and easier to maintain, we have opted to use the prescribed text, which states the following:
“The interest rate will be the rate established by the lender in its discretion as its prevailing rate [Field Index 6605] days before closing.”
This document will begin printing in Production on November 21, 2013. If you have any questions or concerns about this change, please contact Client Support at 1.800.497.3584.
November 14, 2013