HCS HB 2188 -- MORTGAGE FRAUD (Pearce)

COMMITTEE OF ORIGIN:  Special Committee on Financial Institutions

This substitute creates civil and criminal penalties for
individuals committing mortgage fraud.  In its main provisions,
the substitute:

(1)  Allows licensed real estate brokers, real estate
salespersons, and real estate appraisers to be brought before the
Administrative Hearing Commission and lose their license for
committing mortgage fraud.  A licensee who is criminally
convicted of mortgage fraud will automatically have his or her
license revoked; and the Missouri Real Estate Commission or the
Missouri Real Estate Appraisers Commission within the Department
of Insurance, Financial Institutions, and Professional
Registration may maintain an action in circuit court.  The court
may impose a civil penalty of $2,500 per violation and may grant
other relief the court determines is just and proper;

(2)  Authorizes the Director of the Division of Finance within
the department to investigate the records of any licensed
mortgage broker;

(3)  Allows the division director or the Residential Mortgage
Board within the department to assess a civil penalty of up to
$5,000 for any violation of the provisions of Sections 443.800 -
443.893, RSMo, in a contested case; and

(4)  Allows the division director to issue a notice of charges in
support of an order to remove and prohibits a person from
participating in loan brokering, mortgage brokering, or mortgage
brokerage service for any loan secured by residential real estate
under the laws relating to residential mortgage brokers or under
the jurisdiction of the division director.  An order of removal
or prohibition may be permanent or for a specified term and may
require restitution and the imposition of a civil penalty of up
to $5,000 per occurrence.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of Unknown
less than $100,000 in FY 2009, FY 2010, and FY 2011.  No impact
on Other State Funds in FY 2009, FY 2010, and FY 2011.

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