Section 43 Other Consumer-Friendly Missouri Laws

• Library: Consumer Law and Practice 2010

When analyzing a consumer home loan, counsel should not ignore § 408.052, RSMo Supp. 2010, and § 408.231, RSMo 2000. Federal law does not necessarily preempt these consumer-friendly Missouri laws. Generally, if the lender is not a federal lender or federally insured, both laws may be useful in combating predatory lending. These sections may be used when challenging exorbitant fees charged by certain unscrupulous home equity lenders, foreclosure rescuers, or home repair financiers.

When applicable, § 408.052.1 prohibits loan origination fees in excess of one percent. In the case of a construction, repair, or home improvement loan, a lender may not charge a fee over one percent of the loan amount for an inspection and disbursement of the proceeds of the loan to third parties. Id. Section 408.052 does not apply to state or federal institutions or quasi-governmental organizations. Section 408.052.1(2). It also does not apply if the intended...