The Missouri Bankers Association has filed a lawsuit against St. Louis County over a new ordinance that requires lenders to offer mediation to homeowners facing foreclosure.
The trade group’s president, Max Cook, said they plan to argue that it has a laundry list of legal problems.
“Not the least of which is statute that says when it comes to banking laws, and rules, and regulation, no entity, be it a county, a city, what have you, can pass an ordinance or a rule more restrictive than that of the state of Missouri,” Cook said.
The Missouri Bankers Association has been steadfast in its opposition to the ordinance, saying that it will have negative impact on those needing credit in the county.
Cook said they’ll file a lawsuit against St. Louis City, too, if it enacts a similar foreclosure mediation plan.
County Counselor Pat Redington said that she’s disappointed bankers plan to go to court over the ordinance, especially since the county council made changes to the mediation plan that are meant to accommodate lenders..
“We feel that it’s a good ordinance, of great benefit to residents in St. Louis County, good for the county as a whole,” Redington said. “And I think about 25 other cities and states have done it, so it seems like a good thing to do. We’re hopeful that judge will let us put this in place.”
Redington said they haven’t reviewed the legal petition yet and could not comment on a potential defense strategy.
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