SB 0780 Clarifies law on small loans and changes bonding of mortgage brokers
LR Number:3427S.01I Fiscal Note:3427-01
Committee:Pensions and General Laws
Last Action:02/01/00 - Hearing Conducted S Pensions & General Laws Committee Journal page:
Effective Date:August 28, 2000
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Current Bill Summary

SB 780 - This law corrects several overlapping sections regarding bonds for mortgage brokers and small loans. Current requires bonds for mortgage brokers before they can conduct business. This act would require bonds prior to being licensed. The bonds would also cover the broker's employees and clearly states that the bond covers payments to third parties.

This act simplifies the definition of a consumer credit loan, and specifies that the loans are above $500, thus not requiring lenders of small loans to be licensed under the consumer credit law. The current definition of consumer credit loan does not include a minimum amount. Loans under $500 would be regulated by section 408.500, RSMo. A companion Section, 408.100, RSMo, is also changed to reflect the clarification.