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For more information, contact                               Lisa Church
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May 1, 2008

MORTGAGE FRAUD LEGISLATION GOES TO GOVERNOR

JEFFERSON CITY - Gov. Matt Blunt commended the General Assembly Thursday, May 1, for passing legislation he called for to protect Missouri homeowners from fraudulent mortgage practices.
“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,” Gov. Blunt said. “I applaud the Missouri General Assembly for supporting my call to end deceitful mortgage practices in our state and hold those who prey on Missouri homeowners accountable for their unscrupulous actions.”
House Bill 2188, sponsored by Rep. David Pearce, (R-Warrensburg), creates civil and criminal penalties for mortgage fraud and further enhances consumer knowledge about the mortgage process. The legislation:

• Gives the Real Estate Commission and Real Estate Appraisers Commission power to suspend or revoke licenses for mortgage fraud
• Creates the crime of mortgage fraud, a class C felony, with up to 10 years of prison
• Enhances consumer protection laws to protect Missourians from fraudulent scams
• Provides the commissioner of the Division of Finance power to prohibit offenders from doing real estate lending in the state

The legislation now goes to the governor’s desk for his consideration.
Pearce, who is serving his third term in the House, has filed as a Republican candidate for the 31st District Senate seat, which includes Cass, Bates, Vernon and Johnson counties.