Missouri Protect Homeowners From Unfair Mortgage Practices

Gov. Matt Blunt today signed legislation he called for to protect homeowners from fraudulent mortgage practices by strengthening both Missouri’s civil and criminal laws.

“Purchasing a home is an integral part of the American dream,” Gov. Blunt said. “I am pleased to sign this important legislation that will work to put an end to deceitful mortgage practices in our state and is aimed at getting the hucksters and charlatans out of the real estate business, and, in the worst cases – in jail.”

“This bill gives Missouri consumers protection against dishonest mortgage providers and strengthens the regulations under which mortgages are processed” Rep. Pearce said. “Missourians should feel more confident and secure when they sign the papers for a home loan. My thanks go to Governor Blunt for his strong support and for signing this important consumer protection measure into law.”

House Bill 2188, sponsored by Rep. David Pearce, shuts existing loopholes, creates civil and criminal penalties for mortgage fraud and further enhances consumer knowledge about the mortgage process. The legislation:

• Gives the Real Estate Commission and Real Estate Appraisers Commission power to suspend or revoke licenses for mortgage fraud
• Creates the crime of mortgage fraud, a class C felony, with up to 10 years of prison
• Enhances consumer protection laws to protect Missourians from fraudulent scams
• Provides the commissioner of the Division of Finance power to prohibit offenders from doing real estate lending in the state