Section 443.930

Title XXIX OWNERSHIP AND CONVEYANCE OF PROPERTY

Chapter 443

Effective - 28 Aug 2008   

  443.930.  Prohibited acts — constitutes mortgage fraud — no private right of action created. — 1.  It is unlawful for a person, in connection with the application for or procurement of a loan secured by real estate to:

  (1)  Employ a device, scheme, or artifice to defraud;

  (2)  Make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statement made, in the light of the circumstances under which it is made, not misleading;

  (3)  Receive any portion of the purchase, sale, or loan proceeds, or any other consideration paid or generated in connection with a real estate closing that such person knew involved a violation of this section; or

  (4)  Influence, through extortion or bribery, the development, reporting, result, or review of a real estate appraisal, except that this subsection does not prohibit a mortgage lender, mortgage broker, mortgage banker, real estate licensee, or other person from asking the appraiser to do one or more of the following:

  (a)  Consider additional property information;

  (b)  Provide further detail, substantiation, or explanation for the appraiser's value conclusion; or

  (c)  Correct errors in the appraisal report in compliance with the Uniform Standards of Professional Appraisal Practice.

  2.  Such acts shall be deemed to constitute mortgage fraud.

  3.  This section shall not be construed to create a private right of action.

­­--------

(L. 2008 H.B. 2188)