New laws to crack down on mortgage fraud should soon be coming to Missouri. The House has accepted Senate changes to HB 2188 and sent it to the governor.
The bill creates the crime of mortgage fraud, with punishment of up to ten years in prison. It also gives the state the ability to move quicker to revoke the license of brokers engaging in mortgage fraud. Consumer protection laws against mortgage fraud also are strengthened under the bill.
Rep. David Pearce (R-Warrensburg) sponsored the bill. He defended it against critics who contended it doesn’t go far enough. The critics wanted it to cover the sub-prime mess, in which they claim brokers often lured consumers into mortgages with risks they couldn’t handle. Pearce says his bill is a start and other sanctions could be considered in the future.