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286.8-125 Limitation on loan originator's fee.
(1) 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 <br>the total net income generated by the licensee or person exceeds two thousand <br>dollars ($2,000) or four percent (4%) of the total loan amount, whichever is greater.
(2) As used in this section, unless the context requires otherwise:
(a) "Total net income" means any and all fees, income, or compensation of any
kind collected, received, or charged by the licensee or person holding a claim <br>of exemption, or by an affiliate of the licensee or person holding a claim of <br>exemption. "Total net income" includes but is not limited to origination fees, <br>broker fees, lender fees and discount points if retained by the originating <br>licensee or person as income, processing fees, administrative fees, document <br>preparation fees, yield spread premiums, servicing release premiums, and <br>financial counseling fees. "Total net income" does not include interest on the <br>mortgage loan itself, or fees paid to compensate unaffiliated third parties; and
(b) "Total loan amount" means the amount financed in the mortgage loan less the
total net income generated by the originating licensee or person, or the <br>affiliate of the originating licensee or person.
Effective: April 24, 2008 <br>History: Created 2008 Ky. Acts ch. 175, sec. 26, effective April 24, 2008.
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