Title XXV, Business and Financial Institutions

(1) Any credit union that fails to make the report required by KRS 286.6-090, when notified, shall pay to the department ten dollars ($10) for each day of such failure, unless excused. (2) Any officer or any member of a committee who participates in the making of a loan to a nonm…

(1) Violation of KRS 286.6-045 constitutes a misdemeanor punishable by a fine of not more than five hundred dollars ($500), by imprisonment for not more than one (1) year, or both. (2) The commissioner may petition a court of competent jurisdiction to enjoin a violation of KRS 28…

As used in this subtitle, unless the context otherwise requires: (1) "Affiliate" means any person who directly or indirectly through one (1) or more intermediaries, controls, is controlled by, or is under common control with another person; (2) "Alternate work location": (a) Mean…

Any party aggrieved by any decision of the commissioner under the provisions of KRS 286.8-020 or 286.8-100 may request an administrative hearing which shall be conducted in accordance with KRS Chapter 13B.

(1) The following mortgage loan companies and mortgage loan brokers shall be subject to KRS 286.8-046, 286.8-180, 286.8-220(1), and subsections (12), (13), and (14) of this section, but shall be exempt from all other provisions of this subtitle: (a) Any person duly licensed, char…

license -- Unique identifier. (1) (a) It is unlawful for any person to transact business in Kentucky, either directly or indirectly, as a mortgage loan company or mortgage loan broker if the mortgage loan company or mortgage loan broker is not licensed in accordance with the requ…

(1) A license as a mortgage loan company or a mortgage loan broker may be obtained by filing a written application with the commissioner. The commissioner may require the electronic filing of the application and fees with the State Regulatory Registry, LLC, or its successor organ…

(1) (a) In addition to any fee required under subsection (8) of this section, an applicant for a license under this subtitle shall provide the commissioner with a check payable to the Kentucky State Treasurer in the following amount: 1. For a mortgage loan company license applica…

(1) As used in this section: (a) "Documents": 1. Means documents involved in the mortgage lending process; and 2. Includes but is not limited to: a. Uniform residential loan applications or other loan applications; b. Appraisal reports; c. Settlement statements; d. Supporting per…

Hearing. (1) Notice of entry of any order of suspension or denial of a license, registration, or claim of exemption to any applicant, registrant, or licensee shall be given in writing and served personally or sent by certified mail to the last known address of the person affected…

-- Order for restitution, refund, recovery of expenses. (1) The commissioner may levy a civil penalty against any person who violates any provision of or any administrative regulation promulgated under this subtitle or order issued by the commissioner under this subtitle. The civ…

order to remain in effect. (1) The commissioner may enter an emergency order suspending, limiting, or restricting the license, claim of exemption, or registration of any mortgage loan broker, mortgage loan company, or mortgage loan originator without notice or hearing if it appea…

(1) Except as otherwise provided in this section, each mortgage loan company, mortgage loan broker, and mortgage loan originator shall post or be covered by a surety bond for the entire licensure or registration period in an amount prescribed by the commissioner, but in no event …

(1) The use of the words "certified" or "licensed" or any form thereof separately or in any combination thereof with other words or syllables, is prohibited as part of the name of a mortgage loan company or a mortgage loan broker. No license of a proposed mortgage loan company or…

(1) As used in this section, "change of control" means: (a) A transfer of voting stock which results in giving a person, directly or indirectly, the power to direct the management and policy of a mortgage loan company or mortgage loan broker; or (b) A transfer of at least ten per…

of application. Upon receipt of the application the commissioner shall first determine whether or not it complies with the provisions of this subtitle and, if the commissioner so finds, he or she shall then inquire into the advisability of approving the application by determining…

Circuit Court. (1) The commissioner may suspend; revoke; place on probation; condition; refuse to issue or renew a license, registration, or exemption; or accept surrender of a license, registration, or exemption in lieu of revocation or suspension; or issue a cease and desist or…

(1) No licensee shall establish or maintain a branch transacting business in Kentucky, either directly or indirectly, without: (a) Filing the application as described in KRS 286.8-032(5); and (b) Receiving prior written approval of the commissioner. (2) Each application for appro…

charges -- Attorneys' fees -- Charges made part of note -- Limits on prepayment penalties. (1) Mortgage loan companies are prohibited from making loans and mortgage loan brokers are prohibited from brokering loans in violation of KRS 360.100 and are prohibited from making or brok…

Failure to fulfill terms constitutes default. (1) Every mortgage loan company may require borrowers to pay all necessary and reasonable expenses incurred in connection with the making, closing, disbursing, extending, readjusting, or renewing of loans. Without limiting the general…

section. (1) (a) Except as provided in paragraph (b) of this subsection, it shall be unlawful for any licensee or person holding a claim of exemption to originate a loan secured by a mortgage on residential real property in Kentucky if the total net income generated by the licens…

(1) All moneys paid to the mortgage loan company for payment of taxes or insurance premiums on property which secures any loan made or serviced by the mortgage loan company shall be deposited in an account which is insured by the Federal Deposit Insurance Corporation or any other…

(1) The commissioner shall exercise general supervision and control over mortgage loan companies and mortgage loan brokers doing business in the Commonwealth of Kentucky. (2) In addition to the other duties imposed upon him or her by law, the powers and duties of the commissioner…

(1) (a) Except as otherwise provided by law, applications for registration or renewals and all papers, documents, reports, and other written instruments filed with the commissioner under this subtitle, or obtained pursuant to an examination by the department, shall be open to pub…

correcting amendment -- Requirements if business discontinued -- Location of records -- Request for destruction of records. (1) Every mortgage loan company and mortgage loan broker shall make and keep such accounts, correspondence, memoranda, papers, books, data, and other record…

commissioner -- Fee -- Access to records -- Reports. (1) As used in this section, "control records" means all records relating to the operation of a branch that are necessary to exercise control and supervision over the branch. (2) (a) Every mortgage loan company and mortgage loa…

Prima facie evidence. (1) Reports of examination, and correspondence that relates to the report of examination, of a mortgage loan company or mortgage loan broker shall be considered confidential information. No officer or director of a mortgage loan company or mortgage loan brok…

(1) In the conduct of any examination, investigation, or hearing, the commissioner or an officer designated by the commissioner may compel the attendance of any person or obtain any documents by subpoenas; administer oaths or affirmations in the examination of the directors, offi…

investigation. (1) The commissioner may investigate either upon complaint or otherwise when it appears that any person is conducting business in an unsafe and injurious manner or otherwise is in violation of this subtitle, or any rule or order hereunder, or when it appears that a…

Any person aggrieved by final order of the commissioner may obtain a review of the order in Franklin Circuit Court, by filing in court, within sixty (60) days after the entry of the order, a written petition praying that the order be modified or set aside in whole or in part. A c…

(1) No person shall make or cause to be made, in any document filed with the commissioner, a governmental agency, the Nationwide Multistate Licensing System and Registry, or in any proceeding under this subtitle, any statement that is, at the time and in light of the circumstance…

There is hereby created in the State Treasury a trust and revolving fund designated as the "mortgage fraud prosecution fund." All civil penalties or contributions directed by the commissioner to be transmitted to the mortgage fraud prosecution fund shall be deposited into the fun…

prosecution fund -- Distribution -- Administrative regulations. The commissioner is authorized through the collection of civil penalties or contributions to retain the funds collected for the purpose of depositing the funds into the mortgage fraud prosecution fund created in KRS …

KRS 286.8-010 to 286.8-285 shall be known and may be cited as the "Mortgage Licensing and Regulation Act."

Each mortgage loan broker licensed under this subtitle shall maintain a physical location.

Renewals -- Continuing education requirement -- Background checks -- Originators subject to other laws -- Minimum standards for registration -- Mortgage loan processors not required to register -- Continuing education and standards for processors -- Renewal of originator registra…

loan originators. A mortgage loan processor who is not registered or otherwise authorized to act as a mortgage loan originator shall not represent to the public or to individual consumers that he or she can, or is willing to, perform any of the activities of a mortgage loan origi…

subtitle -- Termination and surrender of registration for failure to comply. (1) (a) Any person required to be registered under this subtitle shall complete at least eight (8) hours of continuing professional education on an annual basis that is approved and designated by the com…

(1) A mortgage loan broker shall comply with the following duties: (a) A mortgage loan broker shall exercise good faith and fair dealing, shall act in the best interest of the borrower, and shall not compromise a borrower's right or interest in favor of another's right or interes…

of privilege or claim of confidentiality. (1) Any person having knowledge or believing that a violation of this subtitle or any other illegal act or practice is being or has been committed may provide the commissioner a report of information pertinent to his or her knowledge or b…

(1) In the absence of malice, fraud, or negligence, a person shall not be subject to civil liability for libel, slander, or any other relevant tort by virtue of filing reports or furnishing other information required by this subtitle or requested by the commissioner. (2) This sec…

Duties -- Reporting. (1) (a) In addition to other duties imposed upon the commissioner in this subtitle, the commissioner shall be authorized to: 1. Participate in the Nationwide Multistate Licensing System and Registry; and 2. Implement and comply with the minimum requirements s…

of subtitle -- Commissioner's access to records. (1) The following mortgage loan originators shall be subject to subsections (2) and (3) of this section, but shall be exempt from the registration and regulatory requirements of KRS 286.8-255: (a) An individual employed by the foll…

over operations, employees, and company affairs -- Requirements for alternate work location. (1) As used in this section, "employee" shall include a mortgage loan originator engaged as an independent contractor. (2) (a) Every mortgage loan company and mortgage loan broker shall e…

If any provision of this subtitle or its application to any person or circumstance is held invalid, the remainder of the subtitle and the application of the provision to other persons or circumstances shall not be affected.

proceedings -- Penalties. (1) This section shall be known and cited as the "Kentucky Residential Mortgage Fraud Act." (2) A person is guilty of residential mortgage fraud when, with the intent to defraud, that person does any of the following in connection with the mortgage lendi…

As used in this subtitle, unless the context requires otherwise: (1) "Affiliate" means a person who directly or indirectly through one (1) or more intermediaries controls or is controlled by, or is under common control with, a licensee; (2) "Applicant" means a person filing an ap…

Except as provided in KRS 286.9-030, no person shall engage in the business of cashing checks or accepting deferred deposit transactions for a fee or other consideration without having first obtained a license. A separate license shall be required for each location from which the…

The provisions of this subtitle shall not apply to: (1) Any bank, trust company, savings and loan association, savings bank, credit union, or consumer loan company that is chartered, licensed, or organized under the laws of this Commonwealth or under federal law and authorized to…

(1) Any deferred deposit transaction agreement made with a person who is not licensed under this subtitle shall be void, and the person shall not collect any principal, fee, interest, charges, or recompense whatsoever. (2) The commissioner may void a deferred deposit transaction …