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Theft & Fraud
RSMo 570.310effective 01 Jan 2017

Mortgage fraud

In plain English

Mortgage fraud is when someone lies, cheats, or tricks others while applying for or getting a loan that is backed by real property. This includes lying about important facts, hiding important facts, getting money from a deal they knew was dishonest, or pressuring someone who figures out the value of a property to change their number. Each time someone does this counts as a separate crime, and it is a class D felony.

Penalties named in this law
class D felonyup to 7 years in prison

Classifications stated in the statute. Actual outcomes vary.

Word-for-word law

570.310. Mortgage . — 1. A person commits the of mortgage fraud if he or she, in connection with the for or of a loan secured by , :

(1) Employs a device, scheme, or to defraud;

(2) Makes an untrue statement of a or omits to state a material fact necessary in to make the statement made, in the light of the circumstances under which it is made, not misleading;

(3) Receives any portion of the purchase, sale, or loan , or any other paid or generated in connection with a real estate closing that such person knew involved a violation of this section; or

(4) Influences, through or , the development, reporting, result, or of a real estate , except that this does not prohibit a mortgage lender, , , real estate , or other person from asking the to do one or more of the following:

(a) Consider additional property ;

(b) Provide further detail, substantiation, or explanation for the appraiser's value conclusion; or

(c) Correct errors in the appraisal report in with the .

2. The offense of mortgage fraud is a .

3. Each transaction in violation of this section shall constitute a separate offense.

4. Venue over any dispute relating to mortgage fraud or a or endeavor to engage in or participate in a pattern of mortgage fraud shall be:

(1) In the county in which the real estate is located;

(2) In the county in which any act was performed in furtherance of mortgage fraud;

(3) In any county in which any person alleged to have violated this section had control or possession of any proceeds from mortgage fraud;

(4) In any county in which a related real estate closing occurred; or

(5) In any county in which any document related to a mortgage fraud is filed with the .

5. The punishment imposed under this section shall be in addition to any punishment provided by law for the offense.

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Source & history notes

(L. 2008 H.B. 2188, A.L. 2014 S.B. 491) Effective 1-01-17

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Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.

RSMo 570.310: Mortgage fraud | KnowMo Laws