Section 408.580

Title XXVI TRADE AND COMMERCE

Chapter 408

Effective - 28 Aug 1995   

  408.580.  Applications to be accepted — written reasons for rejection required — display of statute required — retention of records — rulemaking, procedure. — 1.  No state financial institution shall refuse to provide, upon request, an application form or refuse to accept or otherwise impede the making of a written application for a residential real estate loan.

  2.  On receipt of a written application for a loan, every state financial institution shall provide the applicant with a written statement of the amount and purpose of each charge of the institution for the processing of the application.

  3.  On receipt of an amount required by the state financial institution for processing of the loan, said institution shall cause the application to be processed to final determination.  If the application is rejected, said institution shall state in writing to the applicant its reason or reasons for such rejection.

  4.  In the event that a state financial institution, at any time, is not originating or purchasing residential real estate loans of the type for which application is made other than to meet commitments not made in violation of the provisions of sections 408.570 to 408.600 previously made for such loans, that institution may satisfy the requirements of subsections 1, 2, and 3 of this section by delivering to each prospective applicant for such loan a written statement to that effect signed by a representative of the institution.

  5.  Every state financial institution shall prominently display in the lobby of each of its offices, a statement of the language of subsections 1, 2, 3, and 4 of this section and a statement that the annual report of the division director made in accordance with the provisions of section 408.590 is available at the division office, on a form approved by the division director who regulates such institution.

  6.  Every state financial institution shall maintain a copy of each document received or delivered under the provisions of subsections 1, 2, 3, and 4 of this section for a period of not less than twenty-five months which period may be extended by order of the division director who regulates such institution.  Applications for which the processing fee is not tendered or which are rejected by a state financial institution shall be segregated in the records of the institution and shall be maintained with a copy of each document originated, received or delivered regarding such application.

  7.  Documents required to be received, maintained or delivered by subsections 1, 2, 3, and 4 of this section may be on a form provided by the state financial institution subject to the disapproval of the division director who regulates such institution provided that each division director shall to the extent possible authorize documents otherwise required by law to be used to effect the purposes of this section.

  8.  A state financial institution which maintains one or more full service permanent offices in any county or city not within a county for the receipt of deposits shall accept for processing loan applications in at least one office within such county or city not within a county.

  9.  The division director regulating such state financial institution may issue such regulations as are necessary to carry out the purposes of this section.  No rule or portion of a rule promulgated under the authority of this chapter shall become effective unless it has been promulgated pursuant to the provisions of section 536.024.

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(L. 1979 S.B. 305, A.L. 1994 H.B. 1165, A.L. 1995 S.B. 3)