Committee hears Senate substitute for SB 834 to preserve lien priority and add sale–leaseback protections

Senator Sandy Crawford presented the Senate substitute for Senate Bill 834 to a legislative committee, describing it as the "Mortgage Modification Act" and saying the measure is intended to make loan modifications easier for homeowners while preserving lien priority.

"This is the bill that modernizes, whenever you change things on a loan, it just makes sure that the lien priority stays in place," Crawford told the committee, adding that the substitute allows changes such as rate adjustments and term extensions without moving a lien into a second position.

Crawford, identifying herself for the record as "Senator Sandy Crawford, District 28," said a House companion, House Bill 2636, passed the House 145-0 and that the Senate had previously approved a related measure without opposition. She also described a Senate-floor amendment offered by Senator McCreery that the bill incorporates as the "Missouri Residential Sale Leaseback Protection Act," intended to add protections for homeowners who sell their home and remain as tenants under complex leaseback terms.

"The sale leaseback transactions are increasingly being used to target homeowners that have financial stress," Crawford said, adding the amendment "establishes some consumer protections to ensure that the homeowner actually understands what's going on" and has time to seek advice.

The committee opened the hearing to proponents. David Kent, registering his appearance for the Missouri Bankers Association, told the panel he supported the substitute and called it "a very consumer friendly bill." Heath Clarkston, representing the Mortgage Bankers Association in Missouri, said the measure "makes a lot of sense" and that the association did not find the Senate-floor amendment problematic for the mortgage industry while taking no formal position on that amendment.

A committee member who asked a question praised the mortgage modification provisions, noting that modifications can save consumers the cost of new title work and appraisals and provide access to lower rates. No witnesses spoke in opposition during the hearing, and the chair adjourned the meeting without a committee vote.

What happens next: The hearing record will reflect the testimony in support and the committee may schedule further consideration or a vote at a later date; the transcript does not record any formal motion or vote on SB 834 during this session.