FL S0104

Mortgage servicers and lenders are prohibited from commencing foreclosure actions, recording notices of default, or conducting foreclosure sales while a borrower's application for a foreclosure prevention alternative (loan modification) is pending, with specific exceptions such as failure to complete the application within 30 days or breach of modification terms.

Mortgage servicers and lenders must establish a single point of contact for borrowers seeking foreclosure prevention alternatives, provide written acknowledgment of applications within 7 business days, and give denied applicants at least 30 calendar days to appeal with written reasons for the denial.

When a residential mortgage loan is transferred or sold, the new mortgage servicer or lender must assume all duties and obligations related to any previously approved first lien loan modification or foreclosure prevention alternative.

Insurers and insurance agents are prohibited from issuing lender-placed insurance on properties where the insurer or its affiliate owns the servicing rights, and from compensating mortgage lenders or servicers through commissions, profit sharing, or below-cost outsourced services related to lender-placed insurance policies.

Mortgage servicers and lenders are barred from charging application fees, processing fees, or late fees during periods when a foreclosure prevention alternative is under consideration, being appealed, or while the borrower is making timely payments under an approved modification.