Blunt wants to criminalize mortgage fraud

Monday, January 14, 2008

JEFFERSON CITY, Mo. (AP) -- The governor wants to send some lenders to jail. His proposal comes among growing concern about home foreclosures and sub-prime loans.

Governor Matt Blunt proposes up to seven years in jail for mortgage fraud. The plan also allows state departments to punish predatory lenders.

An organizer for an activist group that has helped borrowers estimated several hundred thousand Missourians have loans with interest rates that are steadily increasing.

Some Republican and Democratic House members have already said they plan to file a bill. That measure would add new restrictions on lenders and allow borrowers to sue.

Blunt's plan focuses on penalties, foreclosure notice requirements and administrative oversight.

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