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Federally related mortgage loan or mortgage loan means as follows:

(1) Any loan (other than temporary financing, such as a construction loan):

(i) That is secured by a first or subordinate lien on residential real property, including a refinancing of any secured loan on residential real property upon which there is either:

(A)  Located or, following settlement, will be constructed using proceeds of the loan, a structure or structures designed principally for occupancy of from one to four families (including individual units of condominiums and cooperatives and including any related interests, such as a share in the cooperative or right to occupancy of the unit); or

(B)  Located or, following settlement, will be placed using proceeds of the loan, a manufactured home; and

(ii) For which one of the following paragraphs applies. The loan:

(A)  Is made in whole or in part by any lender that is either regulated by or whose deposits or accounts are insured by any agency of the Federal Government;

(B)  Is made in whole or in part, or is insured, guaranteed, supplemented, or assisted in any way:

By the Secretary or any other officer or agency of the Federal Government; or

Under or in connection with a housing or urban development program administered by the Secretary or a housing or related program administered by any other officer or agency of the Federal Government;

(C)  Is intended to be sold by the originating lender to the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation (or its successors);

(D)  Is made in whole or in part by a “creditor”, as defined in section 103(f) of the Consumer Credit Protection Act (15 U.S.C. 1602(f)), that makes or invests in residential real estate loans aggregating more than $1,000,000 per year. For purposes of this definition, the term “creditor” does not include any agency or instrumentality of any State, and the term “residential real estate loan” means any loan secured by residential real property, including single-family and multifamily residential property;

(E)  Is originated either by a dealer or, if the obligation is to be assigned to any maker of mortgage loans specified in paragraphs (1)(ii)(A) through (D) of this definition, by a mortgage broker; or

(F)  Is the subject of a home equity conversion mortgage, also frequently called a “reverse mortgage,” issued by any maker of mortgage loans specified in paragraphs (1)(ii)(A) through (D) of this definition.

(2) Any installment sales contract, land contract, or contract for deed on otherwise qualifying residential property is a federally related mortgage loan if the contract is funded in whole or in part by proceeds of a loan made by any maker of mortgage loans specified in paragraphs (1)(ii)(A) through (D) of this definition.

(3) If the residential real property securing a mortgage loan is not located in a State, the loan is not a federally related mortgage loan.

Florida Closing Costs

Federally related mortgage loan transactions in Florida usually involve three basic categories of services and related closing costs in order to close escrow. These charges appear on the Uniform Settlement Statements (as defined in 12 U.S.C. § 2603) and include:

(1) title insurance charges in connection with establishing and transferring ownership (i.e., title search and examination fees, premiums charged in connection with issuing a lender’s title insurance policy (including endorsements), and the costs associated with conducting the closing)

(2) amounts paid to the city and/or state and/or local governments for establishing and transferring ownership (i.e., documentary stamp and intangible taxes on both the note and mortgage, including all fees associated with recording the mortgagee’s interest in the property). Documentary stamp tax is levied at the rate of $.70 per $100 (or portion thereof) on documents that transfer interest in Florida real property, such as warranty deeds and quit claim deeds. (The Miami-Dade County rate is $.60 on all documents plus $.45 surtax on documents transferring anything other than a single-family residence). This tax is usually paid to the Clerk of Court when the document is recorded.

Documentary stamp tax is also levied at the rate of $.35 per $100 (or portion thereof) on documents that are executed or delivered in Florida, for example:

• Notes and other written obligations to pay.
• Certain renewal notes.
• Bonds (original issuance).
• Mortgages.
• Liens.

The Clerks of Court send the money to the Florida Department of Revenue and the Department distributes the funds according to law, and

(3) fees associated with originating the loan (i.e., survey fees, appraisal fees, tax service fees, credit check fees, loan document preparation fees, notary charges, loan origination fees, loan commitment fees, loan processing fees, hazard insurance fees, flood certification fees, interest prepayments, and lender inspection fees). The majority of these services, however, will not be provided and performed until closing.

• See also: Florida Title Insurance Premiums