407.940. Foreclosure consultants, unlawful acts--penalty. - Missouri Statutes

Foreclosure consultants, unlawful acts--penalty.

407.940. 1. It shall be unlawful for a foreclosureconsultant to knowingly:

(1) Claim, demand, charge, collect, or receive anycompensation until after the foreclosure consultant has fullyperformed each and every service the foreclosure consultantcontracted to perform or represented he would perform;

(2) Claim, demand, charge, collect, or receive any fee,interest, or any other compensation for any reason which exceedsten percent per annum of the amount of any loan which theforeclosure consultant may make to the owner;

(3) Take any wage assignment, any lien of any type on realor personal property, or other security to secure the payment ofcompensation. Any such security shall be void and unenforceable;

(4) Receive any consideration from any third party inconnection with services rendered to an owner unless suchconsideration is fully disclosed to the owner;

(5) Acquire any interest in a residence in foreclosure froman owner with whom the foreclosure consultant has contracted.Any interest acquired in violation of this subdivision shall bevoidable, provided that nothing herein shall affect or defeat thetitle of a bona fide purchaser or encumberer for value andwithout notice of a violation of this section. Knowledge thatthe property was a "residence in foreclosure" shall notconstitute notice of a violation of this section. Thissubdivision shall not be deemed to abrogate any duty of inquirywhich exists as to rights or interests of persons in possessionof a residence in foreclosure;

(6) Take any power of attorney from an owner for anypurpose, except to inspect documents as provided by law;

(7) Induce or attempt to induce any owner to enter acontract which does not comply in all respects with sections407.935 and 407.937.

2. Any violation of any of the acts enumerated insubsection 1 of this section shall be a class A misdemeanor.

(L. 1992 S.B. 705 § 5)