FL H1303

Creates the "Mortgage Principal Reduction Act" to establish a state program reducing mortgage principal for homeowners in foreclosure with homestead property in Florida.

Requires Florida Housing Finance Corporation to apply to the U.S. Department of Treasury by October 1, 2013, requesting $100 million from the federal Hardest-Hit Fund program.

Corporation purchases delinquent mortgages from lenders at a discount, reduces the principal amount, and establishes repayment plans with interest capped at 2 percent per annum.

Eligible applicants must demonstrate financial hardship, own homestead property in active foreclosure, have mortgage value at least 25 percent of fair market value, and demonstrate ability to repay the reduced loan.

Only Florida Bar members and HUD-certified nonprofit counselors may assist applicants; Corporation must submit monthly reports to Governor, Senate President, and House Speaker beginning December 31, 2013; Act takes effect July 1, 2013.