Kentucky Statutes 286.8-030 – Transaction of business prohibited without license — Effect of issuance of license — Unique identifier
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(1) (a) It is unlawful for any person to transact business in Kentucky, either directly or indirectly, as a mortgage loan company or mortgage loan broker if the mortgage loan company or mortgage loan broker is not licensed in accordance with the requirements of this subtitle, unless that person is exempt under KRS
286.8-020 and, if required by KRS § 286.8-020(3) has timely filed a completed application for a claim of exemption, and the filed application for a claim of exemption has been approved by the commissioner.
(b) It is unlawful for any natural person to make a loan under KRS § 286.8-020(10)
without making the disclosure required by KRS § 286.8-020(7).
(c) It is unlawful for any natural person to transact business in Kentucky, either directly or indirectly, as a mortgage loan originator, unless otherwise exempted, if the mortgage loan originator is not registered in accordance with KRS § 286.8-255.
(d) It is unlawful for any mortgage loan company or mortgage loan broker to employ or use a mortgage loan originator if the mortgage loan originator is not registered in accordance with KRS § 286.8-255 or otherwise exempted.
(e) It is unlawful for any mortgage loan company to employ or use, with or without compensation, a mortgage loan broker if the mortgage loan broker is not licensed in accordance with the requirements of this subtitle unless that person is exempt under KRS § 286.8-020 and, if required by KRS § 286.8-020(3), has timely filed a completed application for a claim of exemption, and the filed application for a claim of exemption has been approved by the commissioner.
(2) Neither the fact that a license or registration has been issued nor the fact that any person, business, or company is effectively registered or licensed, constitutes a finding by the commissioner that any document filed under this subtitle is true, complete, and not misleading. Nor does such fact directly or indirectly imply approval of the registrant or licensee by the commissioner or the Commonwealth of Kentucky. It is unlawful to make or cause to be made to any prospective customer or client any representation inconsistent with this subsection.
(3) Any mortgage loan company or mortgage loan broker who willfully transacts business in Kentucky in violation of subsection (1) of this section shall have no right to collect, receive, or retain any interest or charges whatsoever on a loan contract, but the unpaid principal of the loan shall be paid in full.
(4) Each solicited, attempted, or closed loan shall constitute a separate violation of this section.
(5) The unique identifier, name, and signature of any person originating a mortgage loan shall be clearly shown on the mortgage loan application. It shall be unlawful to make or cause to be made any representations on a mortgage loan application that are inconsistent with this subsection. The unique identifier shall also be displayed on solicitations or advertisements, including business cards or Web sites, of all
persons holding themselves out as being able to originate mortgage loans in Kentucky, and any other document as established by rule, regulation, or order of the commissioner.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 129, sec. 2, effective July 15, 2016. — Amended
2010 Ky. Acts ch. 24, sec. 764, effective July 15, 2010. — Amended 2009 Ky. Acts ch. 104, sec. 4, effective June 25, 2009. — Amended 2008 Ky. Acts ch. 175, sec. 6, effective April 24, 2008. — Amended 2006 Ky. Acts ch. 218, sec. 11, effective July
12, 2006. — Amended 2003 Ky. Acts ch. 64, sec. 3, effective June 24, 2003. — Amended 2001 Ky. Acts ch. 98, sec. 2, effective June 21, 2001. — Amended 1986
Ky. Acts ch. 461, sec. 3, effective July 15, 1986. — Created 1980 Ky. Acts ch. 365, sec. 4, effective July 15, 1980.
Formerly codified as KRS § 294.030.
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.
286.8-020 and, if required by KRS § 286.8-020(3) has timely filed a completed application for a claim of exemption, and the filed application for a claim of exemption has been approved by the commissioner.
Terms Used In Kentucky Statutes 286.8-030
- Commissioner: means the commissioner of the Department of Financial
Institutions. See Kentucky Statutes 286.1-010 - Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Contract: A legal written agreement that becomes binding when signed.
- Employ or use: means to employ, utilize, or contract with a person or the person's employees for the purpose of participating in the mortgage lending process,
including the servicing of mortgage loans. See Kentucky Statutes 286.8-010 - Licensee: means a person to whom a license has been issued. See Kentucky Statutes 286.8-010
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: means any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on residential real property or any loan primarily for personal, family, or household use that is secured by collateral that has a mortgage lien interest in residential real property. See Kentucky Statutes 286.8-010
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
- Mortgage loan broker: means any person who for compensation or gain, or in the expectation of compensation or other gain, received directly or indirectly, serves as an agent for any borrower in an attempt to obtain a mortgage loan, or holds oneself out as being able to do so. See Kentucky Statutes 286.8-010
- Mortgage loan company: means any person who directly or indirectly:
(a) Makes, purchases, or sells mortgage loans, or holds oneself out as being able to do so. See Kentucky Statutes 286.8-010 - Mortgage loan originator: means a natural person who:
(a) 1. See Kentucky Statutes 286.8-010 - Originate: means to solicit, place, negotiate, offer to make, or broker a mortgage loan. See Kentucky Statutes 286.8-010
- Person: means a natural person, or any type or form of corporation, company, partnership, proprietorship, association, or other legal entity. See Kentucky Statutes 286.1-010
- Registrant: means a person to whom a registration has been issued. See Kentucky Statutes 286.8-010
- Statute: A law passed by a legislature.
- Unique identifier: means a number or other identifier assigned by protocols established by the Nationwide Multistate Licensing System and Registry. See Kentucky Statutes 286.8-010
(b) It is unlawful for any natural person to make a loan under KRS § 286.8-020(10)
without making the disclosure required by KRS § 286.8-020(7).
(c) It is unlawful for any natural person to transact business in Kentucky, either directly or indirectly, as a mortgage loan originator, unless otherwise exempted, if the mortgage loan originator is not registered in accordance with KRS § 286.8-255.
(d) It is unlawful for any mortgage loan company or mortgage loan broker to employ or use a mortgage loan originator if the mortgage loan originator is not registered in accordance with KRS § 286.8-255 or otherwise exempted.
(e) It is unlawful for any mortgage loan company to employ or use, with or without compensation, a mortgage loan broker if the mortgage loan broker is not licensed in accordance with the requirements of this subtitle unless that person is exempt under KRS § 286.8-020 and, if required by KRS § 286.8-020(3), has timely filed a completed application for a claim of exemption, and the filed application for a claim of exemption has been approved by the commissioner.
(2) Neither the fact that a license or registration has been issued nor the fact that any person, business, or company is effectively registered or licensed, constitutes a finding by the commissioner that any document filed under this subtitle is true, complete, and not misleading. Nor does such fact directly or indirectly imply approval of the registrant or licensee by the commissioner or the Commonwealth of Kentucky. It is unlawful to make or cause to be made to any prospective customer or client any representation inconsistent with this subsection.
(3) Any mortgage loan company or mortgage loan broker who willfully transacts business in Kentucky in violation of subsection (1) of this section shall have no right to collect, receive, or retain any interest or charges whatsoever on a loan contract, but the unpaid principal of the loan shall be paid in full.
(4) Each solicited, attempted, or closed loan shall constitute a separate violation of this section.
(5) The unique identifier, name, and signature of any person originating a mortgage loan shall be clearly shown on the mortgage loan application. It shall be unlawful to make or cause to be made any representations on a mortgage loan application that are inconsistent with this subsection. The unique identifier shall also be displayed on solicitations or advertisements, including business cards or Web sites, of all
persons holding themselves out as being able to originate mortgage loans in Kentucky, and any other document as established by rule, regulation, or order of the commissioner.
Effective: July 15, 2016
History: Amended 2016 Ky. Acts ch. 129, sec. 2, effective July 15, 2016. — Amended
2010 Ky. Acts ch. 24, sec. 764, effective July 15, 2010. — Amended 2009 Ky. Acts ch. 104, sec. 4, effective June 25, 2009. — Amended 2008 Ky. Acts ch. 175, sec. 6, effective April 24, 2008. — Amended 2006 Ky. Acts ch. 218, sec. 11, effective July
12, 2006. — Amended 2003 Ky. Acts ch. 64, sec. 3, effective June 24, 2003. — Amended 2001 Ky. Acts ch. 98, sec. 2, effective June 21, 2001. — Amended 1986
Ky. Acts ch. 461, sec. 3, effective July 15, 1986. — Created 1980 Ky. Acts ch. 365, sec. 4, effective July 15, 1980.
Formerly codified as KRS § 294.030.
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.