Mortgage fraud bill awaits governor's signature

The House of Representatives on May 1 truly agreed and passed SCS HCS House Bill 2188, sponsored by Rep. David Pearce, according to a Blunt news release.

The bill:

• Gives the Real Estate Commission and Real Estate Appraisers Commission power to suspend or revoke licenses for mortgage fraud;

• Allows civil penalties up to $2,500 per violation;

• Makes mortgage fraud a class C felony;

• Enhances consumer protection laws to help Missourians avoid scams; and

• Provides the Division of Finance commissioner power to prohibit offenders from real estate lending in Missouri.

“Part of the American dream is purchasing a home to enjoy with your family and friends, but deceitful mortgage practices are turning the dream of homeownership into a financial nightmare for some homeowners,” Blunt said in the release.

The FBI reports that it was actively investigating 1,338 cases of alleged mortgage fraud nationally as of March, according to www.fbi.gov, and in Springfield, investigators are hot on the tails of some local offenders.

An extensive probe that gained momentum in early 2007 has turned up evidence that individuals conspired to defraud lenders by inflating the value of area homes, according to Supervisory Special Agent Dean C. Bryant, the FBI’s top Springfield agent.

Bryant said he expects local investigations to result in federal indictments this year.[[In-content Ad]]