Kentucky Statutes 286.8-270 – Duties of mortgage loan broker — Advanced disclosure of fee required
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(1) A mortgage loan broker shall comply with the following duties:
(a) A mortgage loan broker shall exercise good faith and fair dealing, shall act in the best interest of the borrower, and shall not compromise a borrower’s right or interest in favor of another’s right or interest;
(b) A mortgage loan broker shall disclose to borrowers all material facts of which the mortgage loan broker has knowledge that might reasonably affect the borrower’s rights, interests, or ability to receive the borrower’s intended benefit from the residential mortgage loan; and
(c) A mortgage loan broker shall provide a written accounting to a borrower for all the borrower’s money and property received by the broker.
(2) Nothing in this section shall prohibit a mortgage loan broker from contracting for or collecting a fee for services rendered from the borrower or lender if the fee has been properly disclosed to the borrower in advance of providing of such services.
Effective: April 24, 2008
History: Amended 2008 Ky. Acts ch. 175, sec. 19, effective April 24, 2008. — Created
2003 Ky. Acts ch. 64, sec. 9, effective June 24, 2003.
Formerly codified as KRS § 294.270.
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.
(a) A mortgage loan broker shall exercise good faith and fair dealing, shall act in the best interest of the borrower, and shall not compromise a borrower’s right or interest in favor of another’s right or interest;
Terms Used In Kentucky Statutes 286.8-270
- Borrower: means any person that seeks, applies for, or obtains a mortgage loan. 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
- Statute: A law passed by a legislature.
(b) A mortgage loan broker shall disclose to borrowers all material facts of which the mortgage loan broker has knowledge that might reasonably affect the borrower’s rights, interests, or ability to receive the borrower’s intended benefit from the residential mortgage loan; and
(c) A mortgage loan broker shall provide a written accounting to a borrower for all the borrower’s money and property received by the broker.
(2) Nothing in this section shall prohibit a mortgage loan broker from contracting for or collecting a fee for services rendered from the borrower or lender if the fee has been properly disclosed to the borrower in advance of providing of such services.
Effective: April 24, 2008
History: Amended 2008 Ky. Acts ch. 175, sec. 19, effective April 24, 2008. — Created
2003 Ky. Acts ch. 64, sec. 9, effective June 24, 2003.
Formerly codified as KRS § 294.270.
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.