Download as PDF
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.
(1)
(2)
(3)
(4)
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.
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.
(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.
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 fifty dollars ($50). The renewal fee shall be used solely by the
(5)
(6)
(7)
(8)
(9)
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.
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.
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.
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.
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.
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 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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.