FL H1457

Prohibits loan originators, mortgage brokers, and mortgage lenders from suggesting or directing borrowers to cease mortgage payments as a strategy for obtaining loan modifications unless they fully inform borrowers of the risks and consequences.

Requires a written loan modification services agreement printed in 12-point uppercase type, signed by both parties, provided to the borrower at least 1 business day before signing, and delivered to the borrower within 3 hours after signing.

Grants borrowers the right to cancel a loan modification agreement within 3 business days of signing without penalty, with any payments returned within 10 business days of cancellation notice.

Establishes that violations constitute a felony of the third degree with fines up to $10,000 per violation and allows aggrieved borrowers to recover actual damages, attorney's fees, and court costs in civil actions.

Effective date of July 1, 2012.