Kansas Statutes 9-2203. License required to conduct mortgage business; mortgage business at remote locations, requirements; registration required for a loan originator; penalty; statute of limitations for prosecution
Terms Used In Kansas Statutes 9-2203
- Commissioner: means the state bank commissioner or designee, who shall be the deputy commissioner of the consumer and mortgage lending division of the office of the state bank commissioner. See Kansas Statutes 9-2201
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Conviction: A judgement of guilt against a criminal defendant.
- Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
- Individual: means a human being. See Kansas Statutes 9-2201
- Licensee: means a person who is licensed by the commissioner as a mortgage company. See Kansas Statutes 9-2201
- Loan originator: means an individual:
(1) Who engages in mortgage business on behalf of a single mortgage company;
(2) whose conduct of mortgage business is the responsibility of the licensee;
(3) who takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan for compensation or gain or in the expectation of compensation or gain; and
(4) whose job responsibilities include contact with borrowers during the loan origination process, which can include soliciting, negotiating, acquiring, arranging or making mortgage loans for others, obtaining personal or financial information, assisting with the preparation of mortgage loan applications or other documents, quoting loan rates or terms or providing required disclosures. See Kansas Statutes 9-2201
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage business: means engaging in, or holding out to the public as willing to engage in, for compensation or gain, or in the expectation of compensation or gain, directly or indirectly, the business of making, originating, servicing, soliciting, placing, negotiating, acquiring, selling, arranging for others, or holding the rights to or offering to solicit, place, negotiate, acquire, sell or arrange for others, mortgage loans in the primary market. See Kansas Statutes 9-2201
- Mortgage company: means a person engaged in mortgage business. See Kansas Statutes 9-2201
- Nationwide mortgage licensing system and registry: means a mortgage licensing system developed and maintained by the conference of state bank supervisors and the American association of residential mortgage regulators for the licensing and registration of mortgage loan originators. See Kansas Statutes 9-2201
- Person: means any individual, sole proprietorship, corporation, partnership, trust, association, joint venture, pool syndicate, unincorporated organization or other form of entity, however organized. See Kansas Statutes 9-2201
- Registrant: means any individual who holds a valid registration to conduct mortgage business in this state as a loan originator. See Kansas Statutes 9-2201
- Remote location: means a location other than the principal place of business or a branch office where a licensed mortgage company's employee or independent contractor is authorized by such company to engage in mortgage business. See Kansas Statutes 9-2201
- Residence: means the place which is adopted by a person as the person's place of habitation and to which, whenever the person is absent, the person has the intention of returning. See Kansas Statutes 77-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
- Statute: A law passed by a legislature.
- Unique identifier: means a number or other identifier assigned by protocols established by the nationwide mortgage licensing system and registry. See Kansas Statutes 9-2201
(a) Mortgage business shall only be conducted in this state by a licensed mortgage company. A licensee shall be responsible for all mortgage business conducted on such licensee’s behalf by any person, including loan originators, employees or independent contractors.
(b) Mortgage business involving loan origination shall only be conducted in this state by an individual who has first been registered with the commissioner as a loan originator as required by this act and maintains a valid unique identifier issued by the nationwide mortgage licensing system and registry, if operational at the time of registration.
(c) A registrant shall only engage in mortgage business on behalf of one licensed mortgage company.
(d) Mortgage business may be conducted at a remote location, if:
(1) The licensed mortgage company’s employees or independent contractors do not meet with the public at a personal residence;
(2) no physical business records are maintained at the remote location;
(3) the licensed mortgage company has written policies and procedures for working at a remote location and such company supervises and enforces such policies and procedures;
(4) the licensed mortgage company maintains the computer system and customer information in accordance with the company’s information technology security plan and all state and federal laws;
(5) any device used to engage in mortgage business has appropriate security, encryption and device management controls to ensure the security and confidentiality of customer information as required by rules and regulations adopted by the commissioner;
(6) the licensed mortgage company’s employees or independent contractors take reasonable precautions to protect confidential information in accordance with state and federal laws; and
(7) the licensed mortgage company annually reviews and certifies that the employees or independent contractors engaged in mortgage business at remote locations meet the requirements of this section. Upon request, a licensee shall provide written documentation of such licensee’s review to the commissioner.
(e) Nothing under this act shall require a licensee to obtain any other license under any other act for the sole purpose of conducting non-depository mortgage business.
(f) Any person who willfully or knowingly violates any of the provisions of this act, any rule and regulation adopted or order issued under this act commits a severity level 7 nonperson felony. A second or subsequent conviction of this act, regardless of its location on the sentencing grid block, shall have a presumptive sentence of imprisonment.
(g) No prosecution for any crime under this act may be commenced more than five years after the alleged violation. A prosecution is commenced when a complaint or information is filed, or an indictment returned, and a warrant thereon is delivered to the sheriff or other officer for execution, except that no prosecution shall be deemed to have been commenced if the warrant so issued is not executed without unreasonable delay.
(h) Nothing in this act limits the power of the state to punish any person for any conduct which constitutes a crime by statute.