Kentucky Origination Reference Guide
- Kacey Olson (Unlicensed)
Owned by Kacey Olson (Unlicensed)
| Citation | Topic | Requirement |
| Mortgage Licensing and Regulation Act / Ky. Rev. Stat. Ann. §286.8-270(1) | Advance Fee Disclosure | A mortgage loan broker must provide a written accounting to a borrower for all the borrower's money and property received by the broker. |
| Interest and Usury / Ky. Rev. Stat. Ann. §360.100(2) | Borrower Repayment Ability | A lender may not make a high-cost home loan unless the lender reasonably believes at the time the loan is consummated that 1 or more of the borrowers, when considered individually or collectively, will be able to make the scheduled payments to repay the loan based upon a consideration of their current and expected income, current obligations, current employment status, and other financial resources, other than the borrower's equity in the dwelling which secures repayment of the loan. A lender also may not make a high-cost home loan without verifying the borrower's reasonable ability to pay all scheduled payments of principal, interest, real estate taxes, homeowner's insurance, and mortgage insurance premiums, as applicable. |
| Mortgage Licensing and Regulation Act / Ky. Rev. Stat. Ann. §286.8-120(7) & (8) | Commitment Letter (Optional Form) | Not specifically mandated on all loans, however, if issued, all letters of commitment must indicate the terms and conditions of the services, including a full and detailed description of the services the broker or company will perform, a specific statement of the circumstances in which the broker or company will be entitled to obtain or retain consideration and the period that the agreement will remain in effect. Failure on the part of any party, with the exception of the borrower, to fulfill the terms of the loan commitment within the time and on the terms as specified in the commitment, or the failure to make a bona fide effort to secure a loan after receiving a fee for such services will constitute a default by the mortgage loan company and any other person so in default. Any person damaged by the default may sue for damages, reasonable attorneys' fees and interest. |
| Interest and Usury / Ky. Rev. Stat. Ann. §360.100(2)(o) | Explanation of Borrower's Rights and Responsibilities | A lender shall not make a high-cost home loan unless the lender has made available to the borrower a videotape, or other similar audio-video media format such as DVD or CD, approved by the Office of Financial Institutions, which explains the borrower's rights and responsibilities with regard to this section or high-cost home loans. A lender shall have available for viewing at least one (1) copy of the video in the principal office and each branch office of the lender. |
| Commission on Human Rights Regulations / 104 Ky. Admin. Regs. §1:010(4) | Fair Housing Pamphlet | A person or entity engaged in real estate or real estate-related transactions must provide to owners and customers at the time of sale, purchase, rental, insuring or financing of real property, a copy of the pamphlet “What Kentucky's Fair Housing Law Means”. |
| Interest and Usury / Ky. Rev. Stat. Ann. §360.100(2) | Homeownership Counseling | A lender may not process the application to make a high-cost home loan, if the proceeds will be used, in whole or in part, to repay the principal of an existing loan secured by the borrower's principal dwelling that is not a high-cost home loan, without first requiring the borrower to obtain housing counseling by a HUD-approved counselor. |
| Mortgage Licensing and Regulation Act / Ky. Rev. Stat. Ann. §286.2-020(2) | Homeownership Protection Center Notification to Homeowners | A lender must provide to all new homeowners, at the time of closing and together with the final signed loan documents, the Kentucky Homeownership Protection Center Notification to New Homeowners. It must be executed by the borrowers. |
| Mortgage Licensing and Regulation Act / Ky. Rev. Stat. Ann. §286.8-030(5) | NMLS Unique Identifier | The NMLS unique identifier must be displayed on solicitations or advertisements, including business cards or websites, 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 Department of Financial Institutions. |
| Ky. Rev. Stat. Ann. §286.8-020(7) | Notice of Exemption From the Mortgage Licensing and Regulation Act (as applicable) | Must be provided on a separate sheet of paper if a natural person makes 5 or more mortgage loans per year, with own funds, for investment and without intent to sell the loan. |
| Interest and Usury / Ky. Rev. Stat. Ann. §360.100(1) & (2) | Notice of Material Change in Loan Terms | A lender must provide timely notice to the borrower of any material change in the terms of a high-cost home loan if the change is made after an application has been taken but before the closing of the loan. The notice will be deemed timely if given not later than 3 days after the lender has learned of the change or 24 hours before the high-cost home loan is closed, whichever is earlier. If the lender discloses a material change more than 3 days after learning of the change but still 24 hours before the high-cost home loan is closed, it will not be liable for penalties or forfeitures if the lender cures in time for the borrower to avoid any damage. “Material change” means any of the following: (1) a change in the type of loan being offered, such as a fixed or variable rate loan or a loan with a balloon payment; (2) a change in the term of the loan, as reflected in the number of monthly payments due before a final payment is scheduled to be made; (3) an increase in the interest rate of more than 1/4 of 1% (0.25%), or an equivalent increase in the amount of discount points charged; (4) a change regarding the requirement of escrow for taxes and insurance; or (5) a change regarding the requirement or payment, or both, of private mortgage insurance. |
| Interest and Usury / Ky. Rev. Stat. Ann. §360.100(2) | Notice to Borrower | Must be provided at least 3 business days prior to consummation for a high-cost home loan. |
| Insurance Code / Ky. Rev. Stat. Ann. §304.12-150 | Right to Chose Insurance Provider | Lenders requiring insurance in connection with a loan secured by real property must inform the borrower of his or her right of free choice in the selection of the agent and insurer through which the insurance is to be placed. A lender is prohibited from interfering with the borrower's choice, and may not refuse an adequate policy chosen by the borrower. |