HCS HB 2400 -- LINKED DEPOSIT LOAN PROGRAM

SPONSOR:  Cunningham

COMMITTEE ACTION:  Voted "do pass" by the Committee on Financial
Institutions by a vote of 12 to 0.

This substitute changes the laws regarding the Linked Deposit
Loan Program by allowing an eligible homeowner purchasing a
single-family dwelling to receive a linked deposit loan for the
down payment on the home in an amount of up to 10% of the
purchase price of the home, not to exceed $10,000.

The State Treasurer is authorized up to an additional $25 million
to be utilized for these loans.  Any eligible lending institution
making a home loan cannot sell the loan and will receive a net
income deduction on any interest earned.  The homeowner must
repay the loan within five years.

FISCAL NOTE:  Estimated Effect on General Revenue Fund of an
income of $0 to a cost of Unknown in FY 2011, FY 2012, and FY
2013.  No impact on Other State Funds in FY 2011, FY 2012, and FY
2013.

PROPONENTS:  Supporters say that the bill will help individuals
get low-interest down payments for purchasing new homes through
the Linked Deposit Loan Program which will help economic
development.

Testifying for the bill were Representative Cunningham; Missouri
Bankers Association; and Office of the State Treasurer.

OPPONENTS:  There was no opposition voiced to the committee.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:13 pm