Kentucky Statutes 286.8-036 – Rules concerning use of license — Alternate work location
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(1) As used in this section: (a) “Documents”:
1. Means documents involved in the mortgage lending process; and
2. Includes but is not limited to:
a. Uniform residential loan applications or other loan applications;
b. Appraisal reports;
c. Settlement statements;
d. Supporting personal documentation for loan applications, including:
i. Form W-2 or other earnings or income statements;
ii. Verifications of rent, income, and employment;
iii. Bank statements; iv. Tax returns; and v. Payroll stubs;
e. Any required mortgage-related disclosures; and
f. Any other document required as a part of, or necessary to, the mortgage lending process; and
(b) “Employee” shall include a mortgage loan originator engaged as an independent contractor.
(2) Each license issued under this subtitle shall state the:
(a) Address or addresses at which business is to be conducted; (b) Name of the licensee; and
(c) Date and place of its incorporation, if applicable.
(3) A license may not be transferred or assigned without the prior written approval of the commissioner.
(4) No licensee shall transact the business provided for by this subtitle under any other name or maintain an office at any location other than a licensed location or an alternate work location.
(5) Every licensed mortgage loan company or mortgage loan broker shall notify the commissioner, in writing, within ten (10) days of the closing of any licensed office or registered Kentucky branch.
(6) A licensee may permit employees to engage in the mortgage lending process at an alternate work location if:
(a) The licensee has written policies and procedures for supervision of employees working from alternate work locations;
(b) Access to the licensee’s computer systems and customer information is in accordance with the licensee’s comprehensive written information technology security plan;
(c) Employees are not permitted to conduct in-person customer activities at the
alternate work location except as provided in KRS § 286.8-010(2)(b)2.;
(d) The licensee ensures that no physical or electronic documents are maintained at the alternate work location; and
(e) No signage or advertising of the licensee or the mortgage loan originator is displayed at any alternate work location.
Effective: July 14, 2022
History: Amended 2022 Ky. Acts ch. 125, sec. 3, effective July 14, 2022. — Amended
2016 Ky. Acts ch. 129, sec. 11, effective July 15, 2016. — Amended 2010 Ky. Acts ch. 24, sec. 767, effective July 15, 2010. — Amended 1998 Ky. Acts ch. 197, sec. 5, effective July 15, 1998. — Created 1986 Ky. Acts ch. 461, sec. 6, effective July 15,
1986.
Formerly codified as KRS § 294.036.
Legislative Research Commission Note (7/14/2022). Under the authority of KRS
7.136(1), the format of subsection (6) of this statute was changed in order to correct a formatting error that occurred in 2022 Ky. Acts ch. 125, sec. 3. The words in the text were not changed.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.
1. Means documents involved in the mortgage lending process; and
Terms Used In Kentucky Statutes 286.8-036
- Appraisal: A determination of property value.
- 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
- 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 originator: means a natural person who:
(a) 1. See Kentucky Statutes 286.8-010 - Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
2. Includes but is not limited to:
a. Uniform residential loan applications or other loan applications;
b. Appraisal reports;
c. Settlement statements;
d. Supporting personal documentation for loan applications, including:
i. Form W-2 or other earnings or income statements;
ii. Verifications of rent, income, and employment;
iii. Bank statements; iv. Tax returns; and v. Payroll stubs;
e. Any required mortgage-related disclosures; and
f. Any other document required as a part of, or necessary to, the mortgage lending process; and
(b) “Employee” shall include a mortgage loan originator engaged as an independent contractor.
(2) Each license issued under this subtitle shall state the:
(a) Address or addresses at which business is to be conducted; (b) Name of the licensee; and
(c) Date and place of its incorporation, if applicable.
(3) A license may not be transferred or assigned without the prior written approval of the commissioner.
(4) No licensee shall transact the business provided for by this subtitle under any other name or maintain an office at any location other than a licensed location or an alternate work location.
(5) Every licensed mortgage loan company or mortgage loan broker shall notify the commissioner, in writing, within ten (10) days of the closing of any licensed office or registered Kentucky branch.
(6) A licensee may permit employees to engage in the mortgage lending process at an alternate work location if:
(a) The licensee has written policies and procedures for supervision of employees working from alternate work locations;
(b) Access to the licensee’s computer systems and customer information is in accordance with the licensee’s comprehensive written information technology security plan;
(c) Employees are not permitted to conduct in-person customer activities at the
alternate work location except as provided in KRS § 286.8-010(2)(b)2.;
(d) The licensee ensures that no physical or electronic documents are maintained at the alternate work location; and
(e) No signage or advertising of the licensee or the mortgage loan originator is displayed at any alternate work location.
Effective: July 14, 2022
History: Amended 2022 Ky. Acts ch. 125, sec. 3, effective July 14, 2022. — Amended
2016 Ky. Acts ch. 129, sec. 11, effective July 15, 2016. — Amended 2010 Ky. Acts ch. 24, sec. 767, effective July 15, 2010. — Amended 1998 Ky. Acts ch. 197, sec. 5, effective July 15, 1998. — Created 1986 Ky. Acts ch. 461, sec. 6, effective July 15,
1986.
Formerly codified as KRS § 294.036.
Legislative Research Commission Note (7/14/2022). Under the authority of KRS
7.136(1), the format of subsection (6) of this statute was changed in order to correct a formatting error that occurred in 2022 Ky. Acts ch. 125, sec. 3. The words in the text were not changed.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286, and KRS references within this statute have been adjusted to conform with the 2006 renumbering of that code.