On May 6, the Senate truly agreed to and finally passed HB 446, sponsored by Rep. John Diehl. The legislation would change the laws regarding the enforcement and servicing of real estate loans.
The legislation was prompted by passage last year by the St. Louis County Council of the Mortgage Foreclosure Intervention Code, which required lenders to offer mediation to homeowners before foreclosing on residential property. That ordinance adds a costly and time consuming mandate on lending institutions and also makes Missouri’s lending environment inconsistent and unpredictable should other local governments pass similar ordinances.
This legislation requires the enforcement of servicing real estate loans to be governed by the state, not local ordinances.
The bill contains similar provisions as HB 211, sponsored by Rep. Stanley Cox.
“HB 446 & 211 provides consistency in the application of banking laws and regulations here in Missouri,” Alex Curchin, general counsel and director of governmental affairs for the Missouri Chamber, said. “The passage of this bill is a positive step to keep the cost of home loans low and property values stable for all Missourians.”
For more information about this issue, please contact Curchin at email@example.com or by phone at 573-634.3511.