St. Louis CofCC Blog

Springfield News-Leader:

Governor’s plan will protect homeowner from mortgage fraud

Under a new plan announced today by Gov. Matt Blunt, those who commit mortgage fraud against Missouri homebuyers could soon be sent to prison.

Blunt announced new proposals to protect Missouri homeowners and strengthen the penalties against those who commit mortgage fraud. He also established a new free hotline for Missourians to report fraud and access information to protect themselves against foreclosure.

“Homeownership is an essential part of the American dream,” Blunt said in a news release. “For many Missouri families, buying a home is the biggest financial investment they will ever make. Our plan will help at-risk homeowners keep their homes by providing new consumer protections and creating new penalties for those who commit mortgage fraud including prison time and steep monetary fines.”

Blunt’s proposal includes legislation to further enhance consumer knowledge, protect against unscrupulous businesses that prey upon at-risk homeowners and create new punishments for mortgage fraud.

So, if the lenders don’t give mortgages to certain “at-risk” people (read: racial minorities), they’re bad. If they do (like they had until recently, creating the current “subprime crisis,”) then they’re accused of fraud, and Governor Blunt wants to send them to prison.

When will Governor Blunt want to ban stupid borrowers? Oh, I forgot. You can’t fix stupid.

UPDATE 1/15:  And wouldn’t you know it — there’s a left-wing national organization United for a Fair Economy (UFE), complaining that mortgage lenders tricked non-whites into agreeing to subprime mortgages.  If they never did, then UFE would be complaining that non-whites are being denied access to credit.