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House approves reforms to real estate enforcement to target mortgage fraud
Summary
A first substitute to Senate Bill 199 strengthens enforcement against mortgage fraud by allowing the real-estate division to impose fines tied to perpetrators’ gains and to pursue unlicensed actors; the bill also authorizes a restrictive account to support affordable housing efforts. The House passed the measure unanimously in recorded votes as shown in the transcript.
Representative Ford introduced first substitute Senate Bill 199, describing it primarily as cleanup for industries that touch real-estate transactions (appraisal, mortgage, title) and highlighting a 10% section aimed at mortgage-fraud enforcement. The measure would allow the Real Estate Division to levy fines equal to the gain obtained by perpetrators and to pursue unlicensed individuals who previously avoided penalties by surrendering licenses.
Representative Hemingway asked whether the bill affected “for sale by owner” transactions; the sponsor replied it did not unless fraudulent activity was being conducted. Representative Draxler confirmed the bill had the support of the Department of Commerce and related industry divisions. The sponsor emphasized that a new restrictive account created by the bill would support affordable-housing initiatives and that the authority would not be funded by the state.
After questions and brief discussion, the House approved the substitute (64 yes, 0 no, 11 absent) and forwarded it to the Senate for further consideration.
