HB 2586 -- Mortgage Brokers

Sponsor:  Donnelly

This bill changes the laws regarding mortgage brokers.  In its
main provisions, the bill:

(1)  Prohibits any person from engaging in the solicitation and
acceptance of a mortgage loan without being licensed and
specifies that the license of a loan officer is only valid when
employed by a mortgage broker;

(2)  Changes the penalty for making an unlawful mortgage loan
from a class C felony to a class D felony;

(3)  Requires individuals desiring to obtain a license as a loan
officer or mortgage broker to submit a written application to the
Director of the Division of Finance within the Department of
Insurance, Financial Institutions, and Professional Registration;

(4)  Requires all licenses to be renewed annually within 45 days
of the expiration date.  A renewal fee is required; and if a
license is not renewed, the license will expire and an additional
fee will be required;

(5)  Establishes licensing and license renewal criteria and
penalties for violations of the provisions of Chapter 443, RSMo,
regarding mortgages, deeds of trust, and mortgage brokers; and

(6)  Requires entities not required to be licensed that are
engaged in the mortgage broker business on or after August 28,
2008, to file a form with the division director.

Missouri House of Representatives
94th General Assembly, 2nd Regular Session
Last Updated October 15, 2008 at 3:12 pm