286.8-125 Limitation on loan originator's fee.
(1)
(2)
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 licensee or person exceeds two thousand
dollars (,000) or four percent (4%) of the total loan amount, whichever is greater.
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
of exemption, or by an affiliate of the licensee or person holding a claim of
exemption. "Total net income" includes but is not limited to origination fees,
broker fees, lender fees and discount points if retained by the originating
licensee or person as income, processing fees, administrative fees, document
preparation fees, yield spread premiums, servicing release premiums, and
financial counseling fees. "Total net income" does not include interest on the
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
affiliate of the originating licensee or person.
Effective: April 24, 2008
History: Created 2008 Ky. Acts ch. 175, sec. 26, effective April 24, 2008.
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