Establishes the "Uniform Mortgage Modification Act"

SECOND REGULAR SESSION
[TRUL Y AGREED T O AND FINALL Y P ASSED]
SENA TE SUBSTITUTE FOR
HOUSE BILL NO. 2636
103RD GENERAL ASSEMBL Y
6376S.03T 2026
AN ACT
T o amend chapters 379, 407, 442, and 443, RSMo, by adding thereto nine new sections
relating to transactions involving real estate, with penalty provisions and a severability
clause.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapters 379, 407, 442, and 443, RSMo, are amended by adding thereto
2 nine new sections, to be known as sections 379.135, 407.3600, 442.920, 443.920, 443.921,
3 443.922, 443.923, 443.924, and 443.925, to read as follows:
379.135 . 1. Upon payment by an insur er of all or any part of a claimant's
2 pr operty damage claim, legal title to the portion of the claim paid shall vest in the
3 insur er to the extent of such payment. No assignment or other action by the claimant
4 shall be requ ired for the insur er to enforce its legal title. The claimant shall ret ain legal
5 title only to that portion of the pr operty damage claim not paid by the insur er .
6 2. Notwithstanding the pr ovisions of subsection 1 of this section to the contrary ,
7 an insured under a policy of insurance shall not, before or after a claimed or cover ed
8 loss, assign or otherwise transfer , in whole or in part, the insured 's:
9 (1) Duties under the policy; or
10 (2) Rights or benefits arising fr om the policy or any duties owed by the insur er
11 under the policy .
12 3. Any contract enter ed into in violation of this section shall be void and
13 unenfor ceable.
EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is
intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language.
14 4. Nothing in this section shall be construed to pr ohibit an insur ed fr om
15 exer cising any expre ss authority granted under a policy of insurance to authorize or
16 dir ect payment to, or to pay , a person for services, materials, or any other thing that
17 may be, or is, cover ed under the policy .
407.3600. 1. For purposes of this section, the following terms mean:
2 (1) "Residential real prop erty", rea l pro perty that is impro ved by a building or
3 other structur e that has one to four dwelling units;
4 (2) (a) "Wholesaler", a person or entity that for a fee, commission, or other
5 valuable consideration, or with the intention, expectation, or upon the pro mise of
6 r eceiving or collecting a fee, commission, or other valuable consideration, enters into a
7 pur chase contract for r esidential real pro perty either:
8 a. As the grantee, and assigns or novates the contract to another person or
9 entity; or
10 b. As the grantor , and, without holding legal title to the real pr operty , assigns or
11 novates the contract to another person or entity .
12 (b) "Wholesaler" shall not include:
13 a. An individual who assigns or novates the contract to another individual who is
14 a rel ative within the third degr ee of consanguinity or affinity; or
15 b. A person or entity that assigns or novates the contract to a par ent, affiliate,
16 subsidiary , or affiliated grou p under common control with the person or entity .
17 2. Not less than fourteen calendar days before entering into a contract that
18 transfers an interes t in res idential r eal pr operty , a wholesaler acting as a grantee or a
19 wholesaler's re present ative, if applicable, shall pro vide to the record owner a written
20 disclosur e statement, separate fro m the pur chase contract or agre ement, printed in
21 boldface type font size not less than twelve points, that contains the following disclosure:
22 Missouri law req uires a wholesaler acting as a grantee, before
23 entering into a contract or agr eement that conveys an interes t in
24 resi dential real pr operty , to pr ovide certain information to the
25 record owner in a conspicuous manner printed in boldface type
26 font size not less than twelve points. Failur e by a wholesaler to
27 present or complete this form shall be consider ed an unlawful and
28 unfair practice under the Missouri Mer chandising Practices Act.
29 Any person who enters into an agre ement that conveys an interes t
30 in r esidential real prop erty to a wholesaler acting as a grantee
31 without re ceiving this disclosur e has a cause of action against the
32 wholesaler . A wholesaler acting as a grantee is pr ohibited fr om
33 entering into a binding contract to acquire an interest in
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34 resi dential r eal pr operty unless this statement is signed and dated
35 by the record owner of the pro perty .
36 The owner acknowledges that the person pr esenting this
3 7 document is a wholesaler , as defined in section 407.3600 of the
38 Revised Statutes of Missouri, and that the owner is advised to seek
39 legal advice before entering into any agr eement or contract with
40 the wholesaler . A wholesaler is acting on the wholesaler's own
41 behalf and does not r epresent the owner in this transaction. A
42 wholesaler enters assignable contracts with owners and seeks to
43 sell or assign the wholesaler's interes t for a pr ofit. The wholesaler
44 may assign the wholesaler's interes t in the pur chase contract to a
45 third party without the owner's consent before closing. The
46 wholesaler may charge a fee to the third-party buyer separately
47 for profit. The agreed pur chase price between the owner and
48 wholesaler may be below market value and is conveyed
4 9 voluntarily .
50 The owner acknowledges disclosure of the information prov ided
51 in this form by signing and dating below:
52 _________ (Pr operty owner signature) ___ (date)
53 _________ (Wholesaler signature) ___ (date).
54 3. A wholesaler acting as the grantee shall not enter into a binding contract that
55 transfers an inter est in res idential real prop erty until both the wholesaler and the reco rd
56 owner of the prop erty sign and date the disclosur e statement requ ired under subsection
57 2 of this section.
58 4. If a wholesaler acting as the grantee fails to make the disclosures pursuant to
59 subsection 2 of this section before entering into a binding contract that transfers an
60 inter est in res idential re al pr operty , the record owner of the res idential r eal pr operty
61 may cancel the contract at any time prior to the close of escr ow without penalty and the
62 escr ow or closing agent shall disburse any earnest money paid by the wholesaler to the
63 r ecord owner within thirty days after such cancellation.
64 5. Pr ovisions of this section shall not be modified or waived by any oral or
65 written agreement. Any portion of an agreement that is executed, modified, or extended
66 after the effective date of this section that modifies or waives any pr ovision of this
67 section shall be null and void.
68 6. Any violation of this section shall be consider ed an unlawful practice under
69 the Missouri mer chandising practices act under this chapter . A party that enters into an
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70 agr eement without receivi ng the disclosures requ ired under subsection 2 of this section
71 may bring a private action against a wholesaler .
72 7. The attorney general shall have the authority to enfor ce the pr ovisions of this
73 section. If the attorney general finds that a violation occurr ed, the attorney general may
74 commence a civil action in a court of competent jurisdiction. If the court finds that a
75 violation occurr ed, the court may grant damages, injunctive relief, attorney fees, and
76 any such other relie f the court finds appr opriate.
442.920 . 1. This section shall be known and may be cited as the "Missouri
2 Residential Sale Leaseback Pr otection Act".
3 2. For purposes of this section, the following terms mean:
4 (1) "Buyer", any person or entity that acquir es an ownership interes t in
5 r esidential real estate in a sale leaseback transaction;
6 (2) "Residential r eal estate", real prop erty that is impr oved by a building or
7 other structur e that has one to four dwelling units;
8 (3) "Sale leaseback", a transaction or series of transactions in which a seller sells
9 r esidential r eal estate that is or was the seller's res idence to another party and, as a
10 condition of the sale, or as part of the same or a relat ed transaction, enters into a lease
11 or ren tal agr eement to rem ain in or re-o ccupy the pr operty;
12 (4) "Seller", any natural person who transfers an ownership intere st in
13 r esidential real estate in a sale leaseback transaction.
14 3. (1) In any sale leaseback transaction, the buyer shall pr ovide the seller with
15 the following disclosur e on a single page in a clear and conspicuous manner , printed in
16 boldface type:
17 If you sign a sale leaseback agr eement, you ar e entering into a
18 contract to sell your home. This means you will no longer own your
19 home.
20 Y ou may be subject to eviction if you do not follow the lease terms.
21 Y ou may lose the right to buy back your home.
22 This may affect your cred it, taxes, and legal rights.
23 Y ou are encouraged to speak with:
24 (1) An attorney;
25 (2) A rea l estate agent;
26 (3) A housing counselor;
27 (4) A tax advisor; and
28 (5) A rea l estate appraiser .
29 No sale leaseback can be closed for at least thirty (30) days after
30 signing an agreement.
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31 Do not sign unless you fully understand the terms.
32 (2) The disclosure r equir ed by subdivision (1) of this subsection shall be
33 pr ovided to the seller not less than fourteen calendar days prior to execution of any sale
34 leaseback agr eement, and the disclosur es shall be signed by both the seller and the buyer
35 concurr ently with the execution of the sale leaseback agreement.
36 (3) A copy of the signed disclosur e r equir ed by subdivision (1) of this subsection
37 shall be prov ided to the seller within five days of the execution of the sale leaseback
38 agr eement.
39 4. There shall be no delivery , r ecording, or other transfer of title fro m seller to
40 buyer until thirty days after the execution of any sale leaseback agre ement.
41 5. (1) Any violation of the prov isions of this section shall be subject to a civil
42 penalty not to exceed ten thousand dollars per violation.
43 (2) The attorney general may bring an action to enforce this section, including
44 actions for injunctive rel ief, civil penalties, and r estitution.
45 (3) Any seller harmed by a violation of this section may bring a civil action to
46 r ecover:
47 (a) Actual damages;
48 (b) Statutory damages of ten thousand dollars, which shall be in addition to any
49 actual damages pro ven;
50 (c) Attorneys' fees and costs; and
51 (d) Equitable or injunctive relief.
52 6. No pr ovision of this section shall be modified or waived by any agreement.
53 Any portion of an agreement that is executed, modified, or extended after the effective
54 date of this section that modifies or waives a duty or rem edy under this section is void ab
55 initio and unenfor ceable.
443.920 . Sections 443.920 to 443.925 shall be known and may be cited as the
2 "Uniform Mortgage Modification Act".
443.921 . For purposes of sections 443.920 to 443.925, the following terms mean:
2 (1) "Electron ic", rel ating to technology having electrical, digital, magnetic,
3 wir eless, optical, electr omagnetic, or similar capabilities;
4 (2) "Financial covenant", an undertaking to demonstrate an obligor's
5 cr editworthiness, or the adequacy of security prov ided by an obligor;
6 (3) "Modification", includes any change, amendment, revi sion, corr ection,
7 addition, supplementation, elimination, waiver , and res tatement;
8 (4) "Mortgage":
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9 (a) An agreement that crea tes a consensual inter est in real prope rty to secure
10 payment or performance of an obligation, r egardless of:
11 a. How the agr eement is denominated, including a mortgage, deed of trust, trust
12 deed, security deed, indentur e, and deed to secure debt; and
13 b. Whether the agr eement also cr eates a security interes t in personal prop erty;
14 and
15 (b) Does not include an agr eement that creat es a consensual inter est to secur e a
16 liability owed by a unit owner to a condominium association, owners' association, or
17 cooperative housing association for association dues, fees, or assessments;
18 (5) "Mortgage modification", modification of:
19 (a) A mortgage;
20 (b) An agreemen t that cr eates an obligation, including a pr omissory note, loan
21 agr eement, or cre dit agr eement; or
22 (c) An agr eement that creat es other security or cr edit enhancement for an
23 obligation, including an assignment of leases or rent s or a guaranty;
24 (6) "Obligation", a debt, duty , or other liability , secured by a mortgage;
25 (7) "Obligor", a person that:
26 (a) Owes payment or performance of an obligation;
27 (b) Signs a mortgage; or
28 (c) Is otherwise accountable, or whose pr operty serves as collateral, for payment
29 or performance of an obligation;
30 (8) "Person", an individual, estate, business or nonpro fit entity , government or
31 governmental subdivision, agency , or instrumentality , or other legal entity;
32 (9) "Recognized index", an index to which changes in the inter est rate may be
33 linked that is:
34 (a) Readily available to, and verifiable by , the obligor; and
35 (b) Beyond the contr ol of the person to whom the obligation is owed;
36 (10) "Record", used as a noun, means information:
37 (a) Inscribed on a tangible medium; or
38 (b) Stored in an electr onic or other medium and ret rievable in percei vable form;
39 (1 1) "Sign", with present intent to authenticate or adopt a r ecord:
40 (a) Execute or adopt a tangible symbol; or
41 (b) Attach to or logically associate with the record an electr onic symbol, sound,
42 or pr ocess.
443.922 . 1. Except as provi ded in subsection 3 of this section, sections 443.920 to
2 443.925 apply to a mortgage modification.
3 2. Sections 443.920 to 443.925 do not affect:
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4 (1) Laws governing the req uired content of a mortgage;
5 (2) A statute of limitations or other law governing the expiration or termination
6 of a right to enforce an obligation or a mortgage;
7 (3) A re cording statute;
8 (4) A statute governing the priority of a tax lien or other governmental lien;
9 (5) A statute of frauds; or
10 (6) Except as pr ovided in subdivision (8) of subsection 2 of section 443.923, law
11 governing the priority of a future advance.
12 3. Sections 443.920 to 443.925 do not apply to any of the following modifications:
13 (1) A re lease of, or addition to, prop erty encumber ed by a mortgage;
14 (2) A re lease of, addition of, or other change in an obligor; or
15 (3) An assignment or other transfer of a mortgage or an obligation.
443.923 . 1. For a mortgage modification described in subsection 2 of this
2 section:
3 (1) The mortgage continues to secure the obligation as modified;
4 (2) The priority of the mortgage is not affected by the modification;
5 (3) The mortgage re tains its priority regar dless of whether a recor d of the
6 mortgage modification is reco rded in the public land reco rds; and
7 (4) The modification is not a novation.
8 2. Subsection 1 of this section applies to one or mor e of the following mortgage
9 modifications:
10 (1) An extension of the maturity date of an obligation;
11 (2) A decr ease in the inter est rate of an obligation;
12 (3) If the change does not r esult in an increa se in the intere st rate of an
13 obligation as calculated on the date the modification becomes effective:
14 (a) A change to a differ ent index that is a reco gnized index if the pr evious index
15 to which changes in the inter est rate were linked is no longer available;
16 (b) A change in the differ ential between the index and the interes t rate;
17 (c) A change from a floating or adjustable rate to a fixed rate; or
18 (d) A change fr om a fixed rate to a floating or adjustable rate based on a
19 r ecognized index;
20 (4) A capitalization of unpaid interes t or other unpaid monetary obligation;
21 (5) A forgiveness, forbearance, or other redu ction of principal, accrued inter est,
22 or other monetary obligation;
23 (6) A modification of a req uirement for maintaining an escr ow or res erve
24 account for payment of an obligation, including taxes and insurance pr emiums;
25 (7) A modification of a requ irem ent for acquiring or maintaining insurance;
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26 (8) A modification of an existing condition to advance funds;
27 (9) A modification of a financial covenant; and
28 (10) A modification of the payment amount or schedule r esulting fr om another
29 modification described in this subsection.
30 3. The effect of a mortgage modification not described in subsection 2 of this
31 section is governed by other law .
443.924 . Pursuant to the authority granted by the federal Electr onic Signatur es
2 in Global and National Commer ce Act, 15 U.S.C. 7002, sections 443.920 to 443.925
3 modify , limit, or supersede such act, 15 U.S.C. Section 7001, et seq., as amended, but do
4 not modify , limit, or supersede 15 U.S.C. Section 7001(c), or authorize electr onic
5 delivery of any of the notices described in 15 U.S.C. Section 7003(b).
443.925 . Sections 443.920 to 443.925 apply to a mortgage modification made on
2 or after the effective date of such sections regard less of when the mortgage or the
3 obligation was creat ed.
Section B. If any provision of section A of this act or the application thereof to
2 anyone or to any circumstance is held invalid, the remainder of those sections and the
3 application of such provisions to others or other circumstances shall not be af fected thereby .
✔
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