SCS HCS HB 2188 -- MORTGAGE FRAUD

This bill creates civil and criminal penalties for individuals
who commit mortgage fraud.  In its main provisions, the bill:

(1)  Specifies that licensed real estate brokers, salespersons,
and appraisers can 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
up to $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;

(4)  Allows the division director to issue a notice of charges in
support of an order of removal and prohibition against a person
or entity 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; and

(5)  Specifies that any person committing mortgage fraud will be
guilty of a class C felony.

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