Missouri Revised Statutes

Mo. Rev. Stat. § 408.233 (2026)

Additional charges authorized

✓ current as of May 2026

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408.233. Additional charges authorized. — 1. No charge other than that permitted by section 408.232 shall be directly or indirectly charged, contracted for or received in connection with any second mortgage loan, except as provided in this section:

(1) Fees and charges prescribed by law actually and necessarily paid to public officials for perfecting, releasing, or satisfying a security interest related to the second mortgage loan and reasonable and bona fide third-party fees incurred for remote or electronic filing;

(2) Taxes;

(3) Bona fide closing costs paid to third parties, which shall include:

(a) Fees or premiums for title examination, title insurance, or similar purposes including survey;

(b) Fees for preparation of a deed, settlement statement, or other documents;

(d) Appraisal fees; and

(e) Fees for credit reports;

(4) Charges for insurance as described in subsection 2 of this section;

(5) A nonrefundable origination fee not to exceed five percent of the principal which may be used by the lender to reduce the rate on a second mortgage loan;

(6) Any amounts paid to the lender by any person, corporation or entity, other than the borrower, to reduce the rate on a second mortgage loan or to assist the borrower in qualifying for the loan;

(7) For revolving loans, an annual fee not to exceed fifty dollars may be assessed.

2. An additional charge may be made for insurance written in connection with the loan, including insurance protecting the lender against the borrower's default or other credit loss, and:

(1) For insurance against loss of or damage to property where no such coverage already exists; and

(2) For insurance providing life, accident, health or involuntary unemployment coverage.

3. The cost of any insurance shall not exceed the rates filed with the department of commerce and insurance, and the insurance shall be obtained from an insurance company duly authorized to conduct business in this state. Any person or entity making second mortgage loans, or any of its employees, may be licensed to sell insurance permitted in this section.

4. On any second mortgage loan, a default charge may be contracted for and received for any installment or minimum payment not paid in full within fifteen days of its scheduled due date equal to five percent of the amount or fifteen dollars, whichever is greater, not to exceed fifty dollars. A default charge may be collected only once on an installment or a payment due however long it remains in default. A default charge may be collected at the time it accrues or at any time thereafter and for purposes of subsection 2 of section 408.234 a default charge shall be treated as a payment. No default charge may be collected on an installment or a payment due which is paid in full within fifteen days of its scheduled due date even though an earlier installment or payment or a default charge on earlier installment or payments may not have been paid in full.

5. The lender shall, in addition to the charge authorized by subsection 4 of this section, be allowed to assess the borrower or other maker of refused instrument the actual charge made by any institution for processing the negotiable instrument, plus a handling fee of not more than twenty-five dollars; and, if the contract or promissory note, signed by the borrower, provides for attorney fees, and if it is necessary to bring suit, such attorney fees may not exceed fifteen percent of the amount due and payable under such contract or promissory note, together with any court costs assessed. The attorney fees shall only be applicable where the contract or promissory note is referred for collection to an attorney, and are not handled by a salaried employee of the holder of the contract or note.

6. No provision of this section shall be construed to prohibit the sale of a deficiency waiver addendum, guaranteed asset protection, or a similar product purchased as part of a loan transaction with collateral and at the borrower's consent, provided the cost of the product is disclosed in the loan contract, is reasonable, and the requirements of section 408.380 are met.

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(L. 1979 S.B. 305, A.L. 1982 H.B. 1341, et al., A.L. 1983 S.B. 70 § 408.233 merged with § 5, A.L. 1985 H.B. 826, A.L. 1986 S.B. 667 merged with H.B. 1207, A.L. 1989 S.B. 192, A.L. 1998 S.B. 792, A.L. 2003 S.B. 346, A.L. 2008 S.B. 788, A.L. 2011 S.B. 83, A.L. 2021 S.B. 106)

Notes of Decisions

Cited in 6 cases (1 in the last 5 years), 2003–2022 · leading case: Mitchell v. Residential Funding Corp., 334 S.W.3d 477 (Mo. Ct. App. 2011).

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Mitchell v. Residential Funding Corp., 334 S.W.3d 477 (Mo. Ct. App. 2011). · cites it 29× “3 The Mitchells alleged that Defendants were liable under the MSMLA for “[cjharging and/or receiving, either directly or indirectly” unlawful fees prohibited by section 408.233, that Defendants were barred from collecting interest on the loans and were liable for all interest…”

Avila v. Cmty. Bank of Virginia, 143 S.W.3d 1 (Mo. Ct. App. 2003). · cites it 10× “Section 408.233. However, these limitations are only applicable to second mortgage loans on which an unlawful rate of interest is charged.”

Washington v. Countrywide Home Loans, Inc., 655 F.3d 869 (8th Cir. 2011). “See Mo.Rev.Stat. § 408.233. In exchange for allowing lenders to offer interest rates that exceed the statutory usury rate, the MSMLA limits the closing costs and fees that lenders may charge.”

Wong v. Mortg., 918 F. Supp. 2d 941 (W.D. Mo. 2013). · cites it 6× “232 [interest] shall be directly or indirectly charged, contracted for or received in connection with any second mortgage loan, except as provided in [section 408.233].” R.S.Mo. § 408.233.1. Section 408.”

Sonderegger v. Specialized Loan Servicing LLC (E.D. Mo. 2022). · cites it 4× “MSMLA (Counts IV–VI, VIII–IX) Plaintiff makes several claims all grounded in violations of the Missouri Second Mortgage Loan Act (“MSMLA”), Mo. Rev. Stat. § 408.233 . Plaintiff asserts Counts IV–VI20 against Defendants First Franklin, BOA, Merrill Lynch, US Bank, SLS, and…”

Washington v. Countrywide Home Loans, Inc., 647 F.3d 850 (8th Cir. 2011). “See Mo.Rev.Stat. § 408.233. In exchange for allowing lenders to offer interest rates that exceed the statutory usury rate, the MSMLA limits the closing costs and fees that lenders may charge.”

— Mo. Rev. Stat. § 408.233(3) — 1 case

Mitchell v. Residential Funding Corp., 334 S.W.3d 477 (Mo. Ct. App. 2011). “3 The Mitchells alleged that Defendants were liable under the MSMLA for “[cjharging and/or receiving, either directly or indirectly” unlawful fees prohibited by section 408.233, that Defendants were barred from collecting interest on the loans and were liable for all interest…”

— Mo. Rev. Stat. § 408.233(6) — 1 case

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