FL S0636

Prohibits loan originators, mortgage brokers, and mortgage lenders from suggesting, recommending, or directing borrowers to stop making mortgage payments as a loan modification strategy unless the borrower is fully informed of the risks and consequences.

Requires loan modification agreements to be in writing with at least 12-point uppercase type, signed by both parties, and provided to the borrower at least 1 business day before signing.

Grants borrowers the right to cancel loan modification agreements within 3 business days of signing without penalty, with any payments refunded within 10 business days.

Makes knowingly violating loan modification prohibitions a third-degree felony with a fine up to $10,000 per violation.

Allows aggrieved persons to recover actual damages plus attorney fees and court costs through civil action, with the prevailing party eligible for reasonable attorney fees and costs from the non-prevailing party; effective July 1, 2012.