Kentucky Adopts Provisions Relating to Mortgage Company and Broker Licensing and Registration
The Kentucky Department of Financial Institutions, Division of Non-Depository Institutions, adopted provisions relating to licensing and registration that are effective immediately. These adopted provisions explain the processes and requirements for licensure, registration, and electronic submission of filings and fees with the nationwide mortgage licensing system operated by the State Regulatory Registry, LLC.
Licensure as a Mortgage Loan Company or Mortgage Loan Broker
The adopted provisions establish what a person must submit when applying for licensure as either a mortgage loan company or a mortgage loan broker:
- A completed NMLS Company Form
- A completed NMLS Individual Form
- “A reviewed or audited financial statement prepared by a certified public accountant in accordance with generally accepted accounting principles dated the previous year end to the date of submission of the NMLS Company Form…”808 KAR 12:021(1)(c)
- An original bond from a surety company authorized to conduct business in Kentucky
- A certified copy of the Corporate Charter or Articles of Incorporation and Bylaws; or the Articles of Organization and Operating Agreement; or the Partnership Agreement
- A Certificate of Authority or a Certificate of Good Standing from the Kentucky Secretary of State not more than 60 days old
In certain circumstances, other items may also be required as part of the application for licensure as either a mortgage loan company or a mortgage loan broker.
Renewal of a Mortgage Loan Company or Mortgage Loan Broker License
When applying for renewal pursuant to KRS 286.8-034(3) and prior to December 1, a person must submit the following:
- The required updates and attestation
- A completed Form ML-5, Annual Mortgage Activity Report
- The fee set forth in KRS 286.8-034(3) (When applying for renewal of a mortgage loan company or mortgage loan broker license through reinstatement pursuant to KRS 286.8-034(4), a person must submit the fee set forth in 286.8-034(4) in addition to the other items)
Registration of a Branch
Section 2 of the adopted provisions establishes the procedures for registration of a branch: a branch shall not be approved unless it is controlled, managed, and supervised by the applicant’s principal office. Section 2 also establishes the required submissions for renewal, which differ depending on whether a person is applying for renewal of a branch registration pursuant to KRS 286.8-034(3) or a person is applying for renewal of a branch registration through reinstatement pursuant to KRS 286.8-034(4).
Registration of a Mortgage Loan Originator
When applying for registration as a mortgage loan originator, a person must submit the following:
- A completed NMLS Individual Form
- A request to submit a Federal Bureau of Investigation background records check and a credit report to the department
- Certification that applicant has successfully completed all education and testing required by KRS 286.8-255
- The fee set forth in KRS 286.8-255(2)(b)
The remaining adopted provisions in 808 KAR 12:021 establish the bond requirements, the factors used to determine approval of an application, requirements for electronic submission of filings and fees through the Nationwide Mortgage Licensing System, abandoned applications, and inactive status for members of the armed forces. The full text of the bill can be found here: http://www.lrc.state.ky.us/kar/808/012/021.htm
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