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286.8-032 Application for license.
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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 organization; its parent,
affiliate, or operating subsidiary; or other agencies or authorities, as part of the
nationwide mortgage licensing system, and consistent with the intent found in
KRS 286.8-285.
The application shall:
(a) Be sworn to;
(b) State the name of the applicant and each of the applicant's affiliates and
operating subsidiaries engaged in business as a mortgage loan company
or a mortgage loan broker;
(c) State the name under which the applicant will conduct business in
Kentucky;
(d) State the physical address of the applicant's principal office and branch or
branches;
(e) List the name, residence, and business address of each person having
an interest in the business as principal, partner, officer, trustee, and
director, specifying the capacity and title of each;
(f) Indicate the general plan and character of the business;
(g) Contain a corporate surety bond or other instrument as prescribed by
KRS 286.8-060;
(h) If applying for a mortgage loan broker license, contain a compiled
financial statement of the applicant; or, if applying for a mortgage loan
company license, contain a reviewed or audited financial statement of the
applicant prepared by a licensed or certified public accountant;
(i) Include payment of the required fees; and
(j) Include such other information as the commissioner determines
necessary.
No mortgage loan company license may be granted unless the applicant:
(a) Has and maintains, so long as the license is in effect, a minimum,
documented funding source of one million dollars ($1,000,000);
(b) Has a net worth in excess of one million dollars ($1,000,000); or
(c) Has and maintains a net worth in excess of one hundred thousand dollars
($100,000) and certifies to the commissioner that the company will not
make or purchase loans secured by mortgages on residential real
property located in Kentucky so long as the license is in effect.
A license issued to a mortgage loan company or a mortgage loan broker shall
entitle all officers and employees of the person, if a corporation, and all
members, partners, trustees, and employees, if an association, partnership,
natural person, or trust, to engage in the mortgage loan business pursuant to
this subtitle, subject to the applicable requirements of this subtitle.
If a licensee desires to establish a branch, the licensee shall file an application
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with the commissioner that includes the physical location and telephone
number of the branch, the name of the prospective manager, the anticipated
opening date, and any other information requested by the commissioner.
Each applicant for a mortgage loan broker license shall have at least one (1)
managing principal at all times. This managing principal shall provide the
commissioner sufficient proof of a minimum of two (2) years' experience
working in the mortgage industry. The commissioner shall determine from the
application whether an applicant has sufficient experience to meet this
requirement. Each mortgage loan broker shall obtain written approval from the
commissioner prior to a change of managing principal.
All applicants for a mortgage loan broker license shall have successfully
completed an educational training course, approved by the department, of not
less than thirty (30) classroom hours' duration. Applicants who have held a
mortgage loan broker license for at least one (1) year in the past five (5) years
shall be exempt from this requirement. This section shall not apply to renewals
of existing licenses. Approval of an applicant for a mortgage loan broker
license under this subsection shall be conditioned on the applicant establishing
that the district, state, or territory from which the applicant applies, resides, or
performs the primary portion of his or her mortgage business has rules,
regulations, or other provisions which by reciprocity or comity are at least
equivalent to this subsection.
The application for a mortgage loan broker and mortgage loan company
license shall state:
(a) The address of the physical location where the business is to be located
in compliance with KRS 286.8-250 and whether such location is a
residence. The physical location where the mortgage lending process is
conducted shall have a street address. A post office box or similar
designation shall not meet the requirements of this subsection. The
physical location shall be accessible to the general public as a place of
business, unless the physical location is a residence and proof of
residence has been submitted as required by this section. Photographs of
the exterior, interior, and exterior sign of each location shall accompany
the application. If the physical location is not a residence and is leased,
the lease shall be for a minimum term of one (1) year. A copy of the lease
and the names of all employees conducting business under the lease
shall accompany the application. If the physical location is a residence,
proof that the location is a residence, in a form as required by the
commissioner, shall accompany the application. Proof of residence shall
confirm that the residence is owned or leased by the mortgage loan
broker, mortgage loan company, or its employees or owners and that the
residence is the main residence of any such persons. Proof of physical
location shall include proof that local zoning requirements are satisfied.
(b) A mortgage loan company or mortgage loan broker shall notify the
commissioner of a change in the location or name of its business or the
addition of any branch or branches in writing at least ten (10) days prior to
the change.
On or after January 1, 2009, every mortgage loan company and mortgage loan
broker shall maintain an agent for service of process in the Commonwealth.
The name, address, telephone number, and electronic mail address of the
agent for service of process shall be filed with the application. The
commissioner shall be notified in writing at least five (5) days prior to any
change in the status of an agent for service of process.
(10) The commissioner may deem an application abandoned when an applicant
fails to provide or respond to a request for additional information.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 765, effective July 15, 2010. -Amended 2009 Ky. Acts ch. 104, sec. 5, effective June 25, 2009. -- Amended
2008 Ky. Acts ch. 175, sec. 7, effective April 24, 2008. -- Amended 2006 Ky.
Acts ch. 218, sec. 3, effective July 12, 2006. -- Amended 2003 Ky. Acts ch. 64,
sec. 4, effective June 24, 2003. -- Amended 1998 Ky. Acts ch. 197, sec. 3,
effective July 15, 1998. -- Created 1986 Ky. Acts ch. 461, sec. 4, effective July
15, 1986.
Formerly codified as KRS 294.032.
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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