FL S1532

Creates new Florida law (s. 494.00297) to regulate reverse mortgage loans made by licensed mortgage lenders and brokers, defining mortgagors as individuals at least 62 years old who hold title to their principal residence.

Limits origination fees to 2 percent of the maximum claim amount up to $200,000, plus 1 percent above that, with a maximum fee of $6,000; prohibits additional fees to mortgage brokers unless independently engaged by the homeowner with no financial relationship to the lender.

Prohibits lenders from requiring reverse mortgage applicants to purchase insurance, annuities, or other financial products (excluding title and hazard insurance) and requires firewalls between loan origination and other financial or insurance activities.

Mandates that mortgagors receive counseling from HUD-approved independent agencies covering loan alternatives, financial implications, and potential tax and benefits consequences before loan closing, with certification required before lender can accept a final application.

Requires lenders to provide mortgagors with plain language disclosures of core loan terms including interest rate, payment schedule, and repayment conditions before closing; allows Financial Services Commission to adopt implementing rules; effective January 1, 2011.