408.580. Applications to be accepted--written reasons for rejection required--display of statute required--retention of records--rulemaking, procedure.
Applications to be accepted--written reasons for rejectionrequired--display of statute required--retention ofrecords--rulemaking, procedure.
408.580. 1. No state financial institution shall refuse to provide,upon request, an application form or refuse to accept or otherwise impedethe making of a written application for a residential real estate loan.
2. On receipt of a written application for a loan, every statefinancial institution shall provide the applicant with a written statementof the amount and purpose of each charge of the institution for theprocessing of the application.
3. On receipt of an amount required by the state financialinstitution for processing of the loan, said institution shall cause theapplication to be processed to final determination. If the application isrejected, said institution shall state in writing to the applicant itsreason or reasons for such rejection.
4. In the event that a state financial institution, at any time, isnot originating or purchasing residential real estate loans of the type forwhich application is made other than to meet commitments not made inviolation of the provisions of sections 408.570 to 408.600 previously madefor such loans, that institution may satisfy the requirements ofsubsections 1, 2, and 3 of this section by delivering to each prospectiveapplicant for such loan a written statement to that effect signed by arepresentative of the institution.
5. Every state financial institution shall prominently display in thelobby of each of its offices, a statement of the language of subsections 1,2, 3, and 4 of this section and a statement that the annual report of thedivision director made in accordance with the provisions of section 408.590is available at the division office, on a form approved by the divisiondirector who regulates such institution.
6. Every state financial institution shall maintain a copy of eachdocument received or delivered under the provisions of subsections 1, 2, 3,and 4 of this section for a period of not less than twenty-five monthswhich period may be extended by order of the division director whoregulates such institution. Applications for which the processing fee isnot tendered or which are rejected by a state financial institution shallbe segregated in the records of the institution and shall bemaintained with a copy of each document originated, received or deliveredregarding such application.
7. Documents required to be received, maintained or delivered bysubsections 1, 2, 3, and 4 of this section may be on a form provided by thestate financial institution subject to the disapproval of the divisiondirector who regulates such institution provided that each divisiondirector shall to the extent possible authorize documents otherwiserequired by law to be used to effect the purposes of this section.
8. A state financial institution which maintains one or more fullservice permanent offices in any county or city not within a county for thereceipt of deposits shall accept for processing loan applications in atleast one office within such county or city not within a county.
9. The division director regulating such state financial institutionmay issue such regulations as are necessary to carry out the purposes ofthis section. No rule or portion of a rule promulgated under the authorityof this chapter shall become effective unless it has been promulgatedpursuant to the provisions of section 536.024, RSMo.
(L. 1979 S.B. 305, A.L. 1994 H.B. 1165, A.L. 1995 S.B. 3)