Missouri Modifies Statutes Regarding Real Estate Loans and Loan Fees
by: Paul McSheffrey
The Missouri General Assembly recently passed House Bill NOS. 446 & 211, amending a statute regarding real estate loans. The statute, found at Section A. Chapter 443, is amended to now include a new section 443.454. The new section precludes local laws from affecting the rights associated with secured real estate loans. Enforcement and servicing of such loans are now specifically governed by only state and federal law.
The Missouri General Assembly has passed Senate Bill No. 254, repealing the statute 408.140 and enacting a new section in its place. The new section relates to credit advance fees for open-end credit contracts tied to a depository institution. Where the contract provides for loans of thirty-one days or longer, the creditor may charge a credit advance fee of up to seventy-five dollars or ten percent of the credit advanced from the line of credit, whichever is less. These were increased from the previous amounts of twenty-five dollars and five percent.
These provisions are effective on August 28, 2013.
About the Author
Paul McSheffrey, Esq. is Associate Counsel and Compliance Specialist at Bankers Advisory, Inc. He is a graduate of Northeastern University and earned his Juris Doctor at the New England School of Law. Paul is admitted to the Bar in Massachusetts and New York. He can be reached at paul@bankersadvisory.com
Paul McSheffrey, JD, is a senior regulatory compliance consultant with CLA. He is a graduate of Northeastern University and earned his juris doctor at the New England School of Law. He is admitted to the Bar in both Massachusetts and New York.
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