Loans secured by mortgages on consumer's principal residence; negative amortization and balloon payments prohibited

9-2231. Loans secured by mortgages on consumer's principal residence; negative amortization and balloon payments prohibited. (a) A covered transaction shall not provide for the negative amortization of principal or a balloon payment when the loan-to-value ratio at the time such covered transaction was made exceeds 100% or when the annual percentage rate of the loan exceeds the code mortgage rate unless such covered transaction is open-end, incurred to acquire or construct the consumer's principal residence or a reverse mortgage. (b) This section shall be a part of and supplemental to the Kansas mortgage business act. History: L. 2024, ch. 6, § 11; January 1, 2025.