HB 1802 -- MORTGAGE INSURANCE

This bill allows mortgage insurers to insure mortgages for up to
100% of the fair market value of the property.  Current law
limits such insurance to 97% of the fair market value.

HB 1802 -- MORTGAGE INSURANCE (Monaco)

This bill allows mortgage insurers to insure mortgages for up to
100% of the fair market value of the property.  Current law
limits such insurance to 97% of the fair market value.

FISCAL NOTE:  No impact on state funds.

HB 1802 -- MORTGAGE INSURANCE

CO-SPONSORS:  Monaco, Liese

COMMITTEE ACTION:  Voted "do pass by consent" by the Committee
on Insurance by a vote of 13 to 0.

This bill allows mortgage insurers to insure mortgages for up to
100% of the fair market value of the property.  Current law
limits such insurance to 97% of the fair market value.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that Missouri is one of only 8
states that have a limit on mortgage insurance coverage of less
that 100% of value.  The FHA has been offering 100% for years.
There are now many programs that can get a family into a home
with little or no down payment, so there is no need for this
restriction on insuring the mortgage.  It has become the last
hurdle for many borrowers.  Also, this would not affect the cost
of the premium.  The premium for mortgage insurance for 100% of
the value would be the same as it is for 95% of the value.

Testifying for the bill were Representative Monaco; GE Private
Mortgage Insurance Company; and Mortgage Bankers Insurance of
America.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Legislative Analyst

HB 1802 -- Mortgage Insurance

Co-Sponsors:  Monaco, Liese

This bill allows mortgage insurers to insure mortgages for up to
100% of the fair market value of the property.  Current law
limits such insurance to 97% of the fair market value.