Florida Statute § 494.0023 requires that, in a mortgage transaction, if a licensee has a conflicting interest, the licensee shall at a minimum, provide the nature of the relationship, ownership, or financial interest between the provider of products or services, or business incident thereto, and the licensee making the referral. Also required to be disclosed is the estimated charge or range of charges, that a financial benefit may be received by the licensee because of the conflicting interest, and that alternative sources may be chosen by the borrower.
The statute lists relationships that are required to be disclosed. Docutech has updated our copy of the Florida Conflict of Interest Disclosure (Cx4550) to more closely reflect the language of the statute. The most significant change is the addition of a new relationship type that consists of a person with a lender relationship that is providing services and holds 1% or more of stock in the licensee. Other changes are minor grammatical edits. We will also be changing the configuration of Cx4550 to include the document trigger “Conflict of Interest” (40122) = Yes.
These changes will be effective November 4th, 2016 . If there are any questions or concerns about these changes, please contact Client Support at 800.497.3584.
DR 209929