1997 Florida Code
TITLE XL REAL AND PERSONAL PROPERTY
Chapter 697 Instruments Deemed Mortgages And The Nature Of A Mortgage  
697.203   Home Equity Conversion Mortgage Guaranty Fund.

697.203  Home Equity Conversion Mortgage Guaranty Fund.--In order to encourage the involvement of private sector mortgagees in issuing home equity conversion mortgages and in order to provide security for such mortgagees in the event that deficiencies result in such mortgages upon foreclosure, the following home equity conversion mortgage guaranty fund is created:

(1)  There is established in the State Treasury a separate trust fund to be called the "Home Equity Conversion Mortgage Guaranty Fund." All moneys appropriated by the Legislature pursuant to this section, as well as all assessment fees provided herein, shall be deposited into the trust fund. This trust fund shall be administered by the department. The department shall assess against each mortgage insured under s. 697.204 an insurance premium fee, which amount assessed shall be collected by the department at the time the mortgage loan is insured and deposited into the trust fund. Any interest earned from the investment of trust funds shall revert to the trust fund. A portion of such interest may be used by the department to defray the reasonable administrative and personnel costs incurred in implementing the provisions of ss. 697.20-697.206.

(2)  The trust fund shall be disbursed as provided in s. 697.205 to any eligible person who has obtained a deficiency decree in a mortgage foreclosure suit pursuant to chapter 702.

(3)  The department is authorized to:

(a)  Make such investigations and studies of data as may be appropriate to establish and administer the trust fund in accordance with principles of economic and actuarial soundness.

(b)  Adopt and enforce rules consistent with ss. 697.20-697.206 for the administration of the trust fund. Prior to the adoption of any such rule, the department must approve the rule within a reasonable amount of time, not to exceed 14 days. Such rules shall include, but are not to be limited to, rules:

1.  Establishing criteria for insuring mortgage instruments under the guidelines of this section and s. 697.204.

2.  Developing a standard for establishing the insurance premium to be applied to each mortgage, which premium shall be charged against the total loan amount and collected at the origination of the loan, and the amount of which premium shall be based upon data which reflect the capital requirements of the trust fund.

3.  For entering such contracts and agreements, and accepting funds under such contracts and agreements, with federal units of government, public and private entities, and others as the department determines to be necessary or desirable to carry out the purposes of this section.

(4)  The funds of the trust fund shall be invested by the Treasurer pursuant to s. 18.10(2), under the same limitations as other state funds; and the interest earned on the investments shall be deposited to the credit of the trust fund and shall be available for the same purposes as are other moneys deposited in the trust fund.

(5)  After the last mortgage insured prior to July 1, 1993, by the department has been amortized or, if foreclosed, after the deficiency on the mortgage has been reimbursed pursuant to s. 697.205, the trust fund shall cease to exist, and any proceeds remaining in the trust fund shall revert to the General Revenue Fund.

History.--s. 4, ch. 84-251; s. 2, ch. 86-267; s. 1, ch. 87-84; s. 2, ch. 89-287.