06RS HB462


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HB 462 (BR 1706) - J. Vincent

     AN ACT relating to mortgage banking.
     Amend KRS 294.010, pertaining to mortgage loan companies and brokers, to make a technical change; amend KRS 294.020 to exempt from the chapter a consumer loan or finance company, industrial loan company, and nonprofit organization under certain circumstances; exempt certain branches of a mortgage loan company or broker; require certain exempted persons to fund or broker at least 12 FHA-insured loan on Kentucky properties each year; require such persons to notify the executive director if they cease to be approved by the Department of Housing and Urban Development; require such persons to provide a list of funded or brokered FHA-insured loans for the previous calendar year to the executive director January 15 of each year; amend KRS 294.032 to require a mortgage loan company to have a minimum documented funding source of $1,000,000; provide that a mortgage loan company with a net worth in excess of $1,000,000 shall not be required to provide an additional funding source; require each applicant for a license as a mortgage loan broker to have at least one owner who owns at least 20 percent of the applicant and to provide proof of at least two years' experience in the mortgage industry; amend KRS 294.060 to require, at the time of filing an application or renewal for registration as a mortgage loan company or mortgage loan broker, that the applicant post corporate surety bonds in an amount not less than $250,000 for mortgage loan companies and not less than $100,000 for mortgage loan brokers; amend KRS 294.090 to clarify the powers of the executive director; require the executive director to execute a written order whenever a license, registration, or claim of exemption suspended or revoked; provide penalties for persons who have had a license, registration, or claim of exemption suspended or revoked and who continue to participate in any business activity covered by KRS Chapter 294; provide that any person who has had a license, registration, or claim of exemption denied must wait one year to be eligible; provide that any person who has had a license, registration, or claim of exemption revoked must wait 3 years to be eligible; authorize the executive director of the Office of Financial Institutions to notify the Revenue Cabinet to institute action in a court of competent jurisdiction to recover fines and penalties; authorize the executive director to file a complaint in a court of competent jurisdiction for a temporary restraining order or injunction; amend KRS 294.220 to prohibit a delay beyond five, rather than two, days for issuance of a written loan payoff to a customer who has submitted a written request; amend KRS 294.255 to authorize the executive director to issue a temporary certificate of registration for up to 180 days to a mortgage loan officer or broker who is awaiting completion of criminal records background check or in the process of fulfilling initial education requirements; require a certificate of registration to be renewed by June 20 each year and provide for automatic expiration of certificates of registration on June 30 if a properly completed renewal form has not been submitted; permit issuance of a duplicate copy of a certificate of registration upon satisfactory showing of its loss and payment of a $10 replacement fee; amend KRS 294.260 to provide that completion of education requirements in the case of initial registrations shall satisfy the continuing education requirements for the first renewal registration; permit an extension of 30 days, rather than one year, to complete the continuing education requirement; create new sections of KRS Chapter 294 to authorize a person with knowledge of violations of this chapter to provide the executive director with a report; provide any documents, materials, or other information in possession of the executive director must be confidential and privileged and not subject to the Open Records laws; exempt the executive director and others who receive documents from testifying in any civil action concerning the confidential documents; exempt certain persons from civil liability for libel, slander or other relevant tort because of filing reports or furnishing information; exempt the executive director and employees from civil liability for libel, slander or other relevant tort because of execution of official duties and actions; repeal KRS 294.265, pertaining to the denial, suspension, or revocation of the license of a mortgage loan company, mortgage loan broker, or loan officer.


     HCS - Retain the original provisions; amend KRS 294.060 to establish the minimum corporate surety bond shall remain at $50,000 rather than $100,000; amend KRS 294.255 to make a technical change; create a new section of KRS Chapter 294 to authorize the executive director to participate in the establishment and implementation of a multistate automated licensing system for mortgage loan brokers, mortgage loan companies, loan officers, or originators; amend Section 10 to change gross negligence to negligence, delete paragraphs (a) and (b) in subsection (1), and delete subsection (2).

     SCS - Retain original provisions, except amend KRS 294.020 to delete the exemption for real estate brokers or real estate sales associates not actively engaged in the business of negotiating mortgage loans; amend Section 9 to authorize the sharing of information with the Conference of State Bank Supervisors or its affiliate; amend Section 14 to provide that the executive director of the Office of Financial Institutions shall not be authorized to require specified exempted persons to submit information or participate in the uniform multistate licensing program.

     Jan 27-introduced in House
     Jan 30-to Banking and Insurance (H)
     Feb 23-posted in committee
     Mar 1-reported favorably, 1st reading, to Calendar with Committee Substitute
     Mar 2-2nd reading, to Rules
     Mar 6-posted for passage in the Regular Orders of the Day for Tuesday, March 7, 2006
     Mar 8-3rd reading, passed 98-0 with Committee Substitute
     Mar 9-received in Senate
     Mar 13-to Banking and Insurance (S)
     Mar 17-reported favorably, 1st reading, to Consent Calendar with Committee Substitute
     Mar 20-2nd reading, to Rules
     Mar 22-posted for passage in the Consent Orders of the Day for Thursday, March 23, 2006
     Mar 23-3rd reading, passed 37-0 with Committee Substitute
     Mar 24-received in House; to Rules (H); posted for passage for concurrence in Senate Committee Substitute for Friday, March 24, 2006; House concurred in Senate Committee Substitute ; passed 92-0
     Apr 10-enrolled, signed by each presiding officer; delivered to Governor
     Apr 21-signed by Governor (Acts ch. 218)

Vote History

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