The proposed bill, titled the "Default Interest Transparency Act," aims to enhance the transparency and accountability of lenders in Florida regarding loan agreements. It amends existing statutes to require lenders or their representatives to provide borrowers with a dated receipt for payments made, detailing the amount and purpose of the payment. Additionally, the bill introduces a new section mandating that lenders notify borrowers of any loan defaults within 45 days, including specific information about the nature of the default and the accruing interest. It also prohibits retroactive default or delinquency interest charges unless the borrower has failed to pay by the maturity date specified in the loan contract.

Furthermore, the bill stipulates that mortgage loan assignors must provide borrowers with a loan history statement upon request, free of charge for the first copy, while allowing a standard fee for additional copies. The assignee of a mortgage loan is also required to notify borrowers of any changes to outstanding balances and provide detailed explanations of any additional charges. The amendments are retroactively applicable to all loans executed in Florida, and the bill includes penalties for lenders who fail to comply with these requirements. The act is set to take effect on July 1, 2025.

Statutes affected:
S 392 Filed: 687.08, 701.01