SS/SCS/SB 1059 - This act creates civil and criminal penalties for mortgage fraud and imposes sanctions upon certain licensed professionals and unlicensed individuals who commit the crime.
CRIMINAL PROVISION, Section 570.310 -
Under the act, it is unlawful for a person, in connection with the application for or procurement of a loan secured by real estate to willfully:
• Employ a device, scheme, or artifice to defraud;
• Make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statement made, in the light of the circumstances under which it is made, not misleading; or
• Receive any portion of the purchase, sale, or loan proceeds, or any other consideration paid or generated in connection with a real estate closing that such person knew involved a violation of this section.
• Influence appraisals in certain circumstances.
Such acts constitute a Class C felony.
REAL ESTATE BROKERS AND SALESPERSONS, Sections 339.100, 339.175 -
Licensed real estate brokers and salespersons may be brought before the Administrative Hearing Commission and lose their license for committing mortgage fraud. Licensees who are criminally convicted of mortgage fraud will automatically have their license revoked. The Missouri Real Estate Commission may maintain an action in circuit court for anyone engaging in mortgage fraud and violators shall be subject to a civil penalty of $2,500 per violation.
REAL ESTATE APPRAISERS, Sections 339.532, 339.543 -
Licensed real estate appraisers may also be brought before the Administrative Hearing Commission and lose their license for committing mortgage fraud. Licensees who are criminally convicted of mortgage fraud will automatically have their license revoked. These licensees may appeal the decision to the Administrative Hearing Commission.
The Missouri Real Estate Appraisers Commission may maintain an action in circuit court for anyone engaging in mortgage fraud and violators shall be subject to a civil penalty of $2,500 per violation.
RESIDENTIAL MORTGAGE BROKERS, Section 443.809, 443.810, 443,891 -
The director of the Division of Finance shall have the authority to investigate the records of any licensed residential mortgage broker.
The director or the Residential Mortgage Board may also assess a civil penalty of up to $5,000 for any violation of the law under the jurisdiction of the commission in a contested case.
The director is allowed to issue a notice of charges in support of an order to remove persons from participating in loan brokering, mortgage brokering, or mortgage brokerage service for any loan secured by real estate under the laws pertaining to residential mortgage brokers or otherwise under the jurisdiction of the director of the Division of Finance. The director may require restitution and impose a civil penalty not to exceed $5,000 per occurrence.
This act is similar to SB 560 (2006), and SB 727 (2008).