What Missouri State Law Regulates Home Mortgage Loans?
Chapters 443 and 339 of Missouri's revised statutes regulate the state's real estate industry, including liability issues, foreclosure, the Residential Mortgage Board and escrow accounts.
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Chapter 443
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Chapter 443 contains the meat of Missouri's mortgage law. Among other things, it covers licensing of loan processors, mortgage insurance, and foreclosure regulations. The law also protects against discrimination and mortgage fraud.
Residential Mortgage Board
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Chapter 443 also establishes Missouri's Residential Mortgage Board. The board consists of five members, all of whom are appointed by the governor and must be residents of the state. This board approves or rejects regulations put forth by the commissioner of finance.
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Escrow
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A mortgage payment usually includes some amount used to pay property taxes and insurance. Because taxes and insurance are normally paid all at once, instead of in monthly installments like a mortgage, a broker will hold onto this part of a payment until taxes and insurance are due. This is called escrow.
Chapter 339 states that any broker who holds money this way must put it in its own escrow account. This ensures that a broker does not use these funds for other purposes.
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