Mortgage Fraud Now A Specific Crime in Missouri
Mortgage fraud was rampant in the beginning of the century, that is very obvious to anyone who has watched the real estate market recently. That is why the new legislation coming out of Missouri is good to see.
Missouri is going to make the crime of mortgage fraud it’s own category of law with enforcement and very specific penalties. The legislators were smart and kept the scope of the law looking forward to stop rampant fraud from happening again instead of a cumbersome legislation that would have tried to right the ills of past issues. Some legislators were hoping to add language that would have funded foreclosure protection and subprime legislation in the bill, but that would have diluted any affect on stopping mortgage fraud in Missouri in the future.
The legislation defines mortgage fraud as making false statements or failing to disclose material facts. It creates fines and allows for the licenses of real estate brokers, agents and appraisers to be revoked. It also bars attempts to influence real estate appraisals through extortion or bribery.
The bill, which had already cleared the Senate, was endorsed 141-5 by the House on Thursday and now goes to the governor.
“What we were really focusing on were people who were breaking the law,” said Pearce, R-Warrensburg.
Pearce’s bill allows for civil fines of up to $2,500 per violation for those who commit mortgage fraud. It also makes mortgage fraud a felony punishable by up to seven years in prison. via the Houston Chronicle.
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Pingback by Creating a Mortgage Fraud Law with Some Bite - A Thought Experiment | Real Estate Investing for Real Blog on 4 May 2008:
[...] was just reading an article about how Mortgage Fraud is now a specific crime in Missouri, but couldn’t help but think to myself whether or not this law goes far enough. While I [...]
Comment by Bryan Weatherman on 21 May 2008:
I ‘am a Mortgage Broker and I believe the problem is that the reason Mortgage fraud happens so much is the consumer doesnt know what to look for. The other problem is that the only action taken is if enough consumers or Banks get duped by the same Company. There are Companies who have lost there license or had it revoked , reported to thje State of Missouri , and nothing happened. If you really want to put a stop to it before it already cost millions in most cases , then lookat Companies who do not follow State laws or Goverment. We turned a Mortgage CO in to yhe State for doing loans , after the State told them not to . The State did nothing.