There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Subtitle 8. Mortgage Loan Companies and Brokers
286.8.255 Registration with department required for mortgage loan originator or mortgage loan processor -- Renewals-- Continuing education requirement -- Background checks -- Originators and processors subject to other laws -- Minimum requirements -- Limitation of loan origination services.
Download pdfBackground checks -- Originators and processors subject to other laws --
Minimum requirements -- Limitation of loan origination services. (1) No natural person shall transact business in Kentucky, either directly or indirectly, as a mortgage loan originator or mortgage loan processor unless such mortgage loan
originator or mortgage loan processor is registered with the department and has
been issued a current certificate of registration by the department, complies with all
applicable requirements of this subtitle, and maintains a valid unique identifier
issued by the Nationwide Mortgage Licensing System and Registry. The department
shall maintain a database of all mortgage loan originators and mortgage loan
processors originating or processing mortgage loans on residential real property in
Kentucky. The department shall issue a certificate of registration to all registered
mortgage loan originators and mortgage loan processors. (2) The application for registration shall: (a) Be on a form prescribed by the commissioner;
(b) Be accompanied by a registration fee in the amount of fifty dollars ($50) which shall be used solely by the department to establish and maintain a
database of all mortgage loan originators and mortgage loan processors, and
any excess funds shall be retained by the department and shall not lapse to the
general fund; and (c) Contain such information as the commissioner deems necessary to carry out the purposes of this subtitle. (3) (a) Applications for initial registrations of mortgage loan originators and mortgage loan processors shall be accompanied by satisfactory evidence that
the applicant has successfully completed twenty (20) hours of prelicensing
education courses related directly to the mortgage lending process, as
approved and designated by the commissioner. (b) For the purposes of paragraph (a) of this subsection, the prelicensing education courses approved and designated by the commissioner shall meet
the minimum requirements set forth in Section 1505(c) of the S.A.F.E.
Mortgage Licensing Act, Pub. L. No. 110-289, and amendments thereto, and
shall be reviewed, and approved by the Nationwide Mortgage Licensing
System and Registry. (c) For the purposes of paragraph (a) of this subsection, the commissioner may accept as credit towards the completion of the prelicensing education
requirements in this state, the completion of prelicensing education
requirements in any other state so long as the education has met the
requirements set forth in paragraphs (a) and (b) of this subsection. (4) Applications for renewals of certificates of registration by registered mortgage loan originators and mortgage loan processors shall be accompanied by satisfactory
evidence that the individual has successfully met the continuing education
requirements of KRS 286.8-260 and by payment of a renewal fee in the amount of Page 2 of 3 fifty dollars ($50). The renewal fee shall be used solely by the department to
establish and maintain a database of all mortgage loan originators and mortgage
loan processors and any excess funds shall be retained by the department and shall
not lapse to the general fund. (5) A certificate of registration issued between January 1 and October 31 of the same calendar year shall expire on December 31 of the same calendar year. A certificate
of registration issued between November 1 and December 31 of the same calendar
year shall expire on December 31 of the following calendar year. Any certificate of
registration that has expired may be reinstated by the commissioner upon payment
of the annual registration fee, and a reinstatement fee of two hundred fifty dollars
($250), within thirty (30) days of the expiration of the certificate of registration. (6) The department shall provide a registrant with a duplicate copy of any certificate of registration upon satisfactory showing of its loss and payment of a ten dollar ($10)
replacement fee. (7) All mortgage loan originators and mortgage loan processors subject to the registration requirements of this section shall also be subject to and comply with all
applicable provisions of this subtitle. (8) The commissioner may require the submission of background records checks, including but not limited to checks for state, federal, and international criminal
histories, civil or administrative records, and any other information as deemed
necessary to comply with the minimum requirements set forth in Section 1505 of
the S.A.F.E. Mortgage Licensing Act, Pub. L. No. 110-289, and amendments
thereto, as well as the submission of an independent credit report obtained from a
consumer reporting agency described in the Fair Credit Reporting Act, 15 U.S.C.
sec. 1681a, as part of an application or renewal application filed under this subtitle.
The cost of the background and records checks, and credit report shall be borne by
the applicant. (9) No mortgage loan originator or mortgage loan processor shall be granted or shall be entitled to maintain a certificate of registration unless he or she satisfies the
following minimum standards for registration:
(a) The applicant has never had a loan originator's license or registration revoked in any governmental jurisdiction, except revocations that have been formally
vacated or set aside shall not be deemed a revocation for the purposes of this
section; (b) The applicant has not been convicted of, pled guilty to, or pled nolo contendere to a felony in any domestic, foreign, or military court:
1. During the seven (7) year period preceding the date of the application for
registration or renewal of registration; or 2. At any time preceding such date of application for registration or
renewal of registration, if such felony involved an act of fraud or
dishonesty, a breach of trust, or money laundering; (c) The applicant has demonstrated financial responsibility, character, and general fitness such as to command the confidence of the community and to warrant a Page 3 of 3 determination that the loan originator or loan processor will operate honestly,
fairly, lawfully, and efficiently within the purposes of the subtitle; (d) The applicant has completed the prelicensing education requirement set forth in subsection (3) of this section; (e) The applicant has passed a qualified written test which satisfies the minimum requirements set forth in Section 1505(d) of the S.A.F.E. Mortgage Licensing
Act, Pub. L. No. 110-289, and amendments thereto; and (f) If required by KRS 286.8-060, the applicant holds or is covered by a surety bond which satisfies the minimum requirements set forth in KRS 286.8-060. (10) No mortgage loan originator or mortgage loan processor shall be granted a renewal certificate of registration unless he or she satisfies the following minimum standards
for renewal of registration:
(a) The applicant has met and continues to meet the minimum standards set forth in subsection (9) of this section; and (b) The applicant has satisfied the annual continuing education requirements set forth in KRS 286.8-260. (11) The certificate of registration of any mortgage loan originator or mortgage loan processor that fails to comply with the minimum standards for registration renewal
set forth in this section shall expire and shall promptly be deemed surrendered to the
commissioner without demand. The commissioner may adopt procedures and
requirements for the reinstatement of expired registrations consistent with the
standards established by the Nationwide Mortgage Licensing System and Registry. (12) Mortgage loan originators engaging in any of the activities set forth in KRS 286.8- 010(21)(a) shall provide loan origination services to not more than one (1) mortgage
loan company or mortgage loan broker at a time. Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 790, effective July 15, 2010. -- Amended 2009 Ky. Acts ch. 104, sec. 18, effective June 25, 2009. -- Amended 2008 Ky. Acts
ch. 175, sec. 17, effective April 24, 2008. -- Amended 2006 Ky. Acts ch. 218, sec. 7,
effective July 12, 2006. -- Created 2003 Ky. Acts ch. 64, sec. 6, effective June 24,
2003. Formerly codified as KRS 294.255.
Legislative Research Commission Note (7/12/2006). This section was amended in 2006 Ky. Acts ch. 218. In that same session, 2006 Ky. Acts ch. 247, sec. 38, required
that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be
renumbered as sections of a single KRS chapter entitled the "Kentucky Financial
Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1), has
changed the number of this section and codified it as a section of KRS Chapter 286.
In addition, KRS references have been adjusted to conform with the renumbering.
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