MO REC Press Releases

Missouri DIFP Offers Mortgage Fraud Prevention Tips for Consumers and Industry Professionals

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) published mortgage fraud prevention tips on April 10, 2009. The guidance was prepared jointly by the Missouri Division of Finance, Insurance Consumer Affairs Division, Real Estate Commission, and Real Estate Appraisers Commission. Tips are provided separately for sellers (avoiding inflated offers, not signing blank documents) and buyers (not buying beyond means, verifying property sales history).

Short Sale Consumer Tips

The Missouri Real Estate Commission issued consumer guidance on short sales, explaining that short sales allow buyers to pay less than owed on a property but require lender approval. The Commission warns that the process can take 60 days or more and advises homeowners to document declining property values, consult legal and tax professionals, understand credit score implications, and obtain written approval agreements from lenders.

2008 Real Estate Malpractice Report Shows Decade of Losses

The Missouri Department of Insurance, Financial Institutions and Professional Registration published its 2008 Real Estate Malpractice Insurance Report covering data from 1999 to 2008. The report found that real estate malpractice insurance operated at a loss for the decade, with losses plus defense costs reaching 230 percent of premium over 10 years and 161 percent over 5 years. In 2008, 89 claims closed with 18 resulting in payment, and the average claim payment was $11,802.

Bogus Earnest Money Cheque Scam Alert

The Missouri Real Estate Commission (MREC) issued a scam alert warning licensees of a fraudulent earnest money check scheme reported in other jurisdictions. The MREC has not received reports of Missouri licensees being victimized but advises review of posted information from other real estate licensing authorities including the Real Estate Council of Ontario and Realtown.com.

FEMA Urges Missouri Real Estate Agents to Recommend Flood Coverage

FEMA flood insurance specialists urged Missouri real estate agents to advise property owners to purchase flood insurance regardless of flood zone risk level. FEMA noted that 25 percent of all flood insurance claims come from moderate-to-low-risk zones, countering the misconception that coverage is only for high-risk areas. The National Flood Insurance Program is available to property owners in participating communities, with policies effective 30 days after premium payment.