Kentucky Regulatory Update

Kentucky Regulatory Update

The Kentucky Department of Financial Institutions, Division of Non-Depository Institutions (“Department”), recently amended its administrative regulations relating to Mortgage Loan Companies and Brokers (under its authority in KRS 286.8-010 et seq.), effective November 4, 2016.

 

808 Kentucky Administrative Regulations (12:021 and 12:055)

 

Under the uniform standards for mortgage loan processor applicant employee background checks, clerical and numbering changes have been made to the definitions.    A reference to federal law has been corrected to Fair Credit Reporting Act (previously Fair Credit Report Act).

 

The regulation currently requires a person applying for licensure as a mortgage loan company or mortgage loan broker (hereinafter referred to as Licensee) to submit certain forms.   Those required forms have changed as follows:

 

A person applying for a renewal or reinstatement of a mortgage loan company or mortgage loan broker license, or a renewal or reinstatement of a branch registration, and prior to December 1 must submit the following:

  • The required updates and attestation ensuring that all information in the person’s record maintained by the nationwide mortgage licensing system operated by the State Regulatory Registry, LLC is correct as available online at http://mortgage.nationwidelicensingsystem.org;
  • A completed Form ML-5, Annual Mortgage Activity Report; and
  • The fee required under state law.

 

A mortgage loan processor is no longer required to apply for registration as is required for a mortgage loan originator.  A person applying for a renewal or reinstatement of a mortgage loan originator registration must submit the following:

  • The required updates and attestation ensuring that all information in the person’s record maintained by the nationwide mortgage licensing system operated by the State Regulatory Registry, LLC is correct as available online at http://mortgage.nationwidelicensingsystem.org (no longer necessary to submit a Form MU2);
  • A request to submit a Federal Bureau of Investigation background records check (such cost to be borne by the applicant) and a credit report to the Department;
  • Certification that applicant has successfully completed all education and testing required by state law; and
  • The fee required under state law.

 

For approval or disapproval of a License application (including any registration, renewal or reinstatement) an applicant must demonstrate the financial responsibility, character and general fitness such as to command the confidence of the community and to warrant a determination that the applicant will operate honestly, fairly, lawfully, and efficiently.

 

All submissions of filings and fees must be done electronically through NMLS.   Any fees assessed to process the electronic submissions are born by the applicant.

 

The material submitted may be inspected, copied, or obtained, subject to applicable copyright law, at the Department, 1025 Capital Center Drive, Suite 200, Frankfort, KY  40601, Monday -Friday, 8 a.m. to 5 p.m., or can also be obtained from the Department’s website at http://www.kfi.ky.gov.