Gov. Blunt Signs Legislation to Protect Homeowners from Unscrupulous Mortgage Practices
RAYMORE - 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.”
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
As part of his plan to help protect Missouri Gov. Blunt also created a free hotline for Missourians to report fraud and access information to protect themselves against foreclosure. Missourians at risk of foreclosure can use the free hotline (1-888-246-7225) to obtain information, materials, and contact information to help them keep their homes. The hotline operates within the Consumer Credit Section of the Department of Insurance, Financial Institutions, and Professional Registration (DIFP).
“The Missouri Bankers Association appreciates the governor signing this bill to protect Missouri homeowners,” said Max Cook, President and CEO of the Missouri Bankers Association. “Homeownership is the American dream. Cracking down on mortgage fraud will keep homeownership from becoming the American nightmare. We also urge any Missourians facing difficulty in making their mortgage payments to contact their lenders.”
