State Law

Blunt's proposal includes legislation to help educate consumers, protect against unscrupulous businesses that prey on at-risk homeowners and create new punishments for mortgage fraud, the governor said in a release. Blunt's plan would:

* Give the Real Estate Commission and Real Estate Appraisers Commission power to suspend or revoke licenses as punishment for mortgage fraud.
* Create the crime of mortgage fraud, a class C felony, punishable by as much as seven years in prison.
* Enhance notice requirements for foreclosure by requiring that at-risk homeowners are given clear statements informing them of the hot line so they can get more information about how to avoid foreclosure.
* Enhance consumer-protection laws to protect Missourians from exploitative foreclosure consultants.
* Give the commissioner of the Division of Finance power to issue cease-and-desist orders to stop mortgage fraud or exploitative business practices against at-risk Missouri homeowners.

"Homeownership is an essential part of the American dream," Blunt said in the release. "For many Missouri families, buying a home is the biggest financial investment they will ever make. Our plan will help at-risk homeowners keep their homes by providing new consumer protections and creating new penalties for those who commit mortgage fraud including prison time and steep monetary fines."

The hot line -- 888-246-7225 -- operates within the Consumer Credit Section of the Department of Insurance, Financial Institutions and Professional Registration.

Full post as published by Showmeblawgs on January 27, 2008 (boomark / email).