The Florida Supreme Court continues to make it more difficult for lenders to foreclose in the Sunshine State.
The court says lenders now are required to verify they own loans before they file a foreclosure lawsuit. And, according to the court order, lenders no longer can charge the homeowner for that investigation.
This comes after a court order in late December that requires lenders to offer owners of primary residences a chance to negotiate with a third-party mediator before moving forward with foreclosure.
Florida has the nation's fourth-highest foreclosure rate, and the court estimates about 456,000 foreclosure cases are clogging the state's court system.
The new rules are an effort to help the courts better manage foreclosure cases and make sure lenders have tried to modify loans before taking back homes.
The rules and corresponding legal forms were proposed by a pair of Florida Bar panels.
"They found that many cases were being filed by plaintiffs that didn't own the mortgages anymore," said Miami lawyer Mark Romance, who is chairman of the Civil Procedures Rules Committee.
Lenders sometimes have a difficult time coming up with the original note to prove they have the authority to foreclose. That's because many loans were bundled and sold as securities.
Lenders have said the rules are cumbersome and may cause more delays.
"It's just going to be another hoop to jump through," said Anthony DiMarco, executive vice president for public Affairs for the Florida Bankers Association, which opposed that provision.
Not all lenders are required to obey the rules.
The rules apply to the 83 loan servicers participating in the Obama administration's Home Affordable Modification Program. Those include Bank of America and JPMorgan Chase.
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