Pursuant to our yearly audit of state-specific disclosures, we will be creating the following new documents which will print in loan packages for loans secured by property located in Florida:
FL Insurance Deposits Disclosure (Cx19232)
Fla. Stat. Ann. § 626.9551(2)(a) & (b) requires the following:
“(a) Any person offering the sale of insurance at the time of and in connection with an extension of credit or the sale or lease of goods or services shall disclose in writing that the choice of an insurance provider will not affect the decision regarding the extension of credit or sale or lease of goods or services, except that reasonable requirements may be imposed pursuant to subsection (1).
(b) Federally insured or state-insured depository institutions and credit unions shall make clear and conspicuous disclosure in writing prior to the sale of any insurance policy that such policy is not a deposit, is not insured by the Federal Deposit Insurance Corporation or any other entity, is not guaranteed by the insured depository institution or any person soliciting the purchase of or selling the policy; that the financial institution is not obligated to provide benefits under the insurance contract; and, where appropriate, that the policy involves investment risk, including potential loss of principal.”
To comply with this requirement, we will be providing new Cx19232 as an “upon request” document. Once requested, this document will print under the following conditions:
- Document Package = Initial Disclosures
- State Code = Florida
FL Consumer Finance Loan Disclosure (Cx19234)
We are providing this document pursuant to the following laws, which are only applicable to licensees under the Florida Consumer Finance Act:
“Every licensee shall:
(1) Deliver to the borrower at the time a loan is made a statement in the English language showing in clear and distinct terms the amount and date of the loan and the date of its maturity; the nature of the security, if any, for the loan; the name and address of the borrower and of the licensee; and the rate of interest charged. However, with respect to a line of credit, the statement need not show a maturity date.” (Fla. Stat. Ann. § 516.15)
“Credit property, credit life, and disability insurance may be provided at the expense of the borrowers and must be provided under a group or individual insurance policy which complies with ss. 627.676-627.684 and lawful regulations thereunder. The cost of such insurance shall be deducted from the principal amount of the loan and shall be disclosed on the statement required by s. 516.15(1) or on a combined note and disclosure statement required by the federal Truth in Lending Act.” (Ibid. § 516.35[2])
“The licensee shall explain fully to all signers of loan papers:
(a) That the loan is made under the Florida Consumer Finance Act;
(b) That the terms of the loan provide for interest and charges pursuant to the Florida Consumer Finance Act; and
(c) The nature of the security for the loan.” (Fla. Admin. Code r. 69V-160.014[1])
Licensees under the Consumer Finance Act extend “consumer finance loans,” which are defined as “a loan of money . . . in an amount . . . of $25,000 or less for which the lender charges . . . interest at a rate greater than 18 percent per annum.” (Supra § 516.01[2]) Certain entities, particularly banks, savings banks, trust companies, building and loan associations, and credit unions, are exempt from being licensed (see Supra 516.02[4]).
Because, to our knowledge, none of our clients are so licensed in Florida, Cx19234 will be available “upon request.” Once requested, it will print under the following conditions:
- Document Package = Closing
- Lender is a Broker? = No
- Loan Amount Less Than or Equal to 25k = Yes
- Interest Rate Exceeds 18% = Yes
- State Code = Florida
Both of these documents are available to be requested immediately. If you have any concerns or questions about these changes, please contact Client Support at 1.800.497.3584.
February 17, 2015
DR 122171