Missouri AG candidate calls for reverse mortgage regulations

Chris Rizo Jul. 3, 2008, 1:59pm

Margaret Donnelly (D)

JEFFERSON CITY, Mo. (Legal Newsline)-Democratic Attorney General candidate Margaret Donnelly said Thursday that if elected she would push for tougher consumer protection laws and create a new alert system to inform consumers of recalled products.

"I want to be sure that consumers are aware of problems or fraud or recalled products in a way that fits their needs," said Donnelly, a state representative from St. Louis County.

Donnelly vowed as the state's chief law enforcement officer to investigate the marketing of reverse mortgages, which allow borrowers to receive monthly payments based on their home's equity.

The mortgages are marketed typically to seniors. Donnelly said there has been evidence that lenders have pressured homeowners to get the special mortgages.

"I think that the reverse mortgage industry as it is today is unregulated and needs to be investigated so we don't have any future problem on our hands," she said.

Also in the race for the Democratic primary race is Sen. Chris Koster of Raymore, state Rep. Jeff Harris of Columbia, and Molly Williams, a Kansas City lawyer.

The winner of the Aug. 5 primary will face Republican state Senate President Pro-tem Michael Gibbons of Kirkwood in November.

Democratic Attorney General Jay Nixon is running for governor.

From Legal Newsline: Reach reporter Chris Rizo by e-mail at chrisrizo@legalnewsline.com.

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