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St Louis Real Estate Search

New Home Buyers At Risk of Losing Fixed-Rate Mortgages Again

Dennis Norman

Earlier this month I did a post about important legislation in Missouri, specifically HB 2058, which would make badly needed changes to the Missouri Mechanic’s Lien Statute, because if it didn’t pass purchasers of new homes would face hurdles obtaining long-term fixed-rate mortgages as title companies have threatened to stop providing mechanic’s lien coverage.

On May 17th I was happy to update the post with the news that the bill had passed the House and Senate and was just awaiting the signature of Governor Nixon to become effective.

Herein the problem lies…

Word is Governor Nixon may be considering vetoing the legislation.  Why you ask?  Why would he veto this legislation that overwhelmingly passed the General Assembly, has the support of dozens of stakeholders including the Home Builders Association, Missouri Land Title Association, Title Insurance Underwriters, Missouri Bankers Association, The Mortgage Bankers Association of Realtors, National Electric Contractors Assocation- St. Louis Chapter, the Carpenters District Council of Greater St. Louis, The Eastern District Labor council and more….. From the information I have, it appears there is an organized group that is opposed to this bill; attorneys that enjoy the income they make off the currently law which is cumbersome and flawed….hmm, what would happen if the law was fixed and there were fewer legal battles?

What to do to help..

If you want to make sure that the flaws in the current mechanic’s lien law are corrected, thereby enabling title companies to continue to provide mechanic’s lien coverage to lenders, so they will continue to make loans, and all along still giving protection to contractors and suppliers to make sure they get paid, then contact Governor Nixon’s office and let his staff know you want him to sign HB 2058 into law.

The phone number for the Governor’s Office is (573)-751-3222.  If you prefer you can fax him a letter at: (573) 751-1495.

 

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