SECOND REGULAR SESSION
HOUSE BILL NO. 2134
94TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES ZWEIFEL (Sponsor), TALBOY, PAGE, WALSH, YAEGER, BAKER (25), BURNETT, WILDBERGER, LeVOTA, ROBINSON, SPRENG, WHORTON, SCHIEFFER, LOW (39), DARROUGH AND ZIMMERMAN (Co-sponsors).
Read 1st time February 13, 2008 and copies ordered printed.
D. ADAM CRUMBLISS, Chief Clerk
To amend chapter 443, RSMo, by adding thereto one new section relating to mortgage brokers, with a penalty provision.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 443, RSMo, is amended by adding thereto one new section, to be known as section 443.895, to read as follows:
443.895. 1. A mortgage broker has created an agency relationship with a borrower, as defined in section 443.803, when the mortgage broker acts in the capacity of a mortgage broker. A mortgage broker shall clearly and conspicuously disclose to the person or persons attempting to obtain a mortgage loan whether the mortgage broker is acting as an agent for the person or persons, in a separate writing, and provide such disclosure to the person or persons attempting to obtain the mortgage loan before any personal financial information may be obtained by the mortgage broker. If a mortgage broker is obtaining personal information over the telephone, the mortgage broker shall give the disclosure verbally at such time and mail the written disclosure within two business days.
2. A mortgage broker with an agency relationship with a borrower shall do all of the following:
(1) Act in the borrower's best interest and in the utmost good faith toward the borrower and shall not compromise the borrower's right or interest in favor of another person's right or interest, including the mortgage broker's right or interest;
(2) Carry out all lawful instructions of the borrower;
(3) Disclose to a borrower all material facts of which the mortgage broker has knowledge that might reasonably affect the borrower's rights, interest, or ability to receive the borrower's intended benefit from the mortgage loan, but not facts that are reasonably susceptible to the knowledge of the borrower;
(4) Use reasonable care in performing duties;
(5) Account to a borrower for all of the borrower's moneys and property the mortgage broker receives as the agent.
3. A mortgage broker with an agency relationship with the borrower shall not accept, give, or charge any undisclosed compensation or realize any undisclosed remuneration, either through direct or indirect means, that inures to the benefit of the mortgage broker on an expenditure made for the borrower.
4. This section shall not prohibit a mortgage broker from contracting for or collecting a fee for services rendered that has been disclosed to the borrower in advance of the provision of the services.
5. This section shall not require a mortgage broker to obtain a loan containing terms or conditions not available to the mortgage broker in the mortgage broker's usual course of business or to obtain a loan for the borrower from a mortgage lender with whom the mortgage broker does not have a business relationship.
6. As used in this section, "mortgage broker" means a person who, for compensation or anticipation of compensation, arranges, negotiates, or attempts to arrange or negotiate mortgage loans or commitments for such loans, refers applicants or prospective applicants to creditors, or selects or offers to select creditors to whom requests for credit may be made.
7. Any mortgage broker who violates the provisions of this section shall be deemed guilty of a class B misdemeanor and shall be liable for damages caused to a borrower as determined by a court of law in a suit brought by the borrower so damaged.