Negative Amortization Mortgages in Florida
Florida has no specific state prohibition on negative amortization, but federal QM rules and OFR regulation effectively restrict them. Brokers owe fiduciary duty to disclose risks (Section 494.0025). FDUTPA and TILA provide remedies for undisclosed negative amortization.
FL Regulation
- No state-specific prohibition
- Federal QM rule controls availability
- OFR enforces under Chapter 494
- FDUTPA (Section 501.204) applies
Required Disclosures
- TILA: APR at fully indexed rate, max balance
- TRID: Loan Estimate and Closing Disclosure
- Broker fiduciary duty (Section 494.0025)
Borrower Remedies
- TILA rescission (3 years), actual + statutory damages
- FDUTPA: damages + fees + injunctive relief
- Fraud: rescission, compensatory, punitive
Related Terms
- Mortgage — Property security
Barnes Walker Real Estate
Barnes Walker’s attorneys protect Florida borrowers from predatory mortgage practices. Request a legal inquiry for assistance.
Florida Law Reference
Fla. Stat. Ch. 697
Defines mortgages as liens on real property and establishes requirements for mortgage creation, assignment, and satisfaction in Florida.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC