Kentucky 2022 Regular Session Status: Enacted 1 R cosponsors

HB 643 — AN ACT relating to the regulation of the mortgage loan industry.

Last action — signed by Governor (Acts Ch. 125)

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 28, 2022. Enacted.

Prognosis

Likely to advance 72% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 R).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Amend KRS 286.8-010 to define terms; amend KRS 286.8-032 to require licensing fees and an annual assessment; amend KRS 286.8-036 to define terms; permit employees of a licensee to engage in the mortgage lending process from an alternate location if certain conditions are met; amend KRS 286.8-295 to define "employee"; require supervision and control of employees acting as mortgage loan originators; establish requirements for licensees that allow employees to engage in the mortgage lending process from alternate work locations; amend KRS 286.8-160 to prohibit records from being maintained at an alternate work location; amend KRS 286.8-170 to permit mortgage loan companies and mortgage loan brokers to utilize third-party secure storage facilities if certain conditions are met; amend KRS 286.8-100, 286.8-140, 286.8-150, 286.8-220, 286.8-255, 286.8-285, and 355.9-408 to update references to conform; make technical amendments throughout.

Bill Text

What changed in the latest version

923 added · 1240 removed

923 line(s) added, 1240 removed.

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UNOFFICIAL COPY 22 RS HB 643/GA AN ACT relating to the regulation of the mortgage loan industry.
CHAPTER 125 1 CHAPTER 125 ( HB 643 ) AN ACT relating to the regulation of the mortgage loan industry.
(a) Means any location, other than the mortgage loan company's or mortgage loan Page 1 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA broker's principal office[location], where the mortgage loan company, mortgage loan broker, or its employees maintain a physical presence for the purpose of conducting business in the mortgage lending process, including the servicing of mortgage loans;
(a) Means any location, other than the mortgage loan company's or mortgage loan broker's principal office[location], where the mortgage loan company, mortgage loan broker, or its employees maintain a physical presence for the purpose of conducting business in the mortgage lending process, including the servicing of mortgage loans;
[(10) "Control records" means all records relating to the operation of a branch that are necessary to exercise control and supervision over the branch;] (8)[(11)] "Criminal syndicate" means five (5) or more persons collaborating to promote Page 2 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA or engage in any pattern of residential mortgage fraud on a continuing basis;
[(10) "Control records" means all records relating to the operation of a branch that are necessary to exercise control and supervision over the branch;] Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (8)[(11)] "Criminal syndicate" means five (5) or more persons collaborating to promote or engage in any pattern of residential mortgage fraud on a continuing basis;
(9)[(12)] "Depository institution" means a depository institution as defined in the Federal Deposit Insurance Act, 12 U.S.C.
(9)[(12)] "Depository institution" means a depository institution as defined in the Federal Deposit Insurance Act, U.S.C.
Page 3 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA 2.
2.
a.[1.]Solicits, places, negotiates, or offers to make a mortgage Page 4 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA loan;
CHAPTER 125 3 a.[1.] Solicits, places, negotiates, or offers to make a mortgage loan;
b.[2.]Assists a borrower or prospective borrower with the preparation of documents necessary to obtain a mortgage loan;
b.[2.] Assists a borrower or prospective borrower with the preparation of documents necessary to obtain a mortgage loan;
c.[3.]Explains, recommends, discusses, negotiates, or quotes rates, terms, and conditions of a mortgage loan with a borrower or prospective borrower, whether or not the borrower or prospective borrower makes or completes an application;
c.[3.] Explains, recommends, discusses, negotiates, or quotes rates, terms, and conditions of a mortgage loan with a borrower or prospective borrower, whether or not the borrower or prospective borrower makes or completes an application;
d.[4.]Explains any term or aspect of any disclosure or agreement given at or after the time a mortgage loan application is received;
d.[4.] Explains any term or aspect of any disclosure or agreement given at or after the time a mortgage loan application is received;
or e.[5.]Takes a residential mortgage loan application;
or e.[5.] Takes a residential mortgage loan application;
Page 5 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA a.
a.
(26)[(30)] "Residential mortgage loan application" means the submission of a borrower's Page 6 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA financial information in anticipation of a credit decision, whether written or computer-generated, relating to a mortgage loan;
(26)[(30)] "Residential mortgage loan application" means the submission of a borrower's financial information in anticipation of a credit decision, whether written or computer-generated, relating to a mortgage loan;
(a) Receiving any scheduled periodic mortgage loan payments from a borrower, including amounts for escrow accounts or other fees or obligations related to the mortgage loan, and making or crediting the payments to the mortgage loan account, owner of the loan, or a third party assigned to receive said payments;
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) Receiving any scheduled periodic mortgage loan payments from a borrower, including amounts for escrow accounts or other fees or obligations related to the mortgage loan, and making or crediting the payments to the mortgage loan account, owner of the loan, or a third party assigned to receive said payments;
(30)[(34)] "Transact business in Kentucky" or "transacting business in Kentucky" means to participate in any meaningful way in the mortgage lending process, including the servicing of mortgage loans, with respect to any residential real property located in Page 7 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA Kentucky;
(30)[(34)] "Transact business in Kentucky" or "transacting business in Kentucky" means to participate in any meaningful way in the mortgage lending process, including the servicing of mortgage loans, with respect to any residential real property located in Kentucky;
An[the] annual assessment[renewal license] fee.[ which is three hundred Page 8 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA fifty dollars ($350) for the principal office and two hundred fifty dollars ($250) for each branch originating mortgages on residential real properties located in Kentucky,] 2.
An[the] annual assessment[renewal license] fee.[ which is three hundred fifty dollars ($350) for the principal office and two hundred fifty dollars ($250) for each branch originating mortgages on residential real properties located in Kentucky,] 2.
and c.
and CHAPTER 125 5 c.
(b) An adjustment under paragraph (a) of this subsection shall be calculated Page 9 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA based on the percent change in the nonseasonally adjusted annual average Consumer Price Index for all Urban Consumers (CPI-U), U.S.
(b) An adjustment under paragraph (a) of this subsection shall be calculated based on the percent change in the nonseasonally adjusted annual average Consumer Price Index for all Urban Consumers (CPI-U), U.S.
Page 10 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA i.
i.
and (b) "Employee" shall include a mortgage loan originator engaged as an independent contractor.
and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) "Employee" shall include a mortgage loan originator engaged as an independent contractor.
Access to the licensee's computer systems and customer information is Page 11 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA in accordance with the licensee's comprehensive written information technology security plan;
Access to the licensee's computer systems and customer information is in accordance with the licensee's comprehensive written information technology security plan;
(c) Oversee compliance, and require all employees to comply, with the policies Page 12 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA and procedures referenced in paragraph (b) of this subsection;
(c) Oversee compliance, and require all employees to comply, with the policies and procedures referenced in paragraph (b) of this subsection;
2.
CHAPTER 125 7 2.
Any employee that engages in the mortgage lending process at an alternate work location accesses the company's secure systems, including a cloud-based system, directly from any out-of-office device via a virtual private network (VPN) or a comparable system that ensures secure connectivity and requires passwords or other forms of authentication to access;
Any employee that engages in the mortgage lending process at an alternate work location accesses the company's secure systems, including a cloud-based system, directly from any out- of-office device via a virtual private network (VPN) or a comparable system that ensures secure connectivity and requires passwords or other forms of authentication to access;
Page 13 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA 1.
1.
Page 14 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA (a) May be kept in an electronic retrievable format, or other similar form of medium, that is readily accessible to examination, investigation, and inspection by the commissioner;
(a) May be kept in an electronic retrievable format, or other similar form of medium, that is readily accessible to examination, investigation, and inspection by the commissioner;
(6) Any person who ceases operating as a mortgage loan company or mortgage loan broker under the provisions of this subtitle shall, prior to the discontinuance of business in the residential mortgage lending process, notify the commissioner of the physical location where the records required to be kept under this subtitle will be preserved.
(6) Any person who ceases operating as a mortgage loan company or mortgage loan broker under the provisions of this subtitle shall, prior to the discontinuance of business in the residential mortgage lending process, notify the commissioner of the physical location where the records required to be kept under this subtitle will be Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY preserved.
(9) The commissioner may approve a written request for the destruction of records required to be preserved under this subtitle prior to the minimum retention period Page 15 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA described in subsection (2) of this section.
(9) The commissioner may approve a written request for the destruction of records required to be preserved under this subtitle prior to the minimum retention period described in subsection (2) of this section.
Notify the commissioner, in writing, thirty (30) days prior to engaging with any third-party secure storage facility;
Notify the commissioner, in writing, thirty (30) days prior to engaging with any third- party secure storage facility;
Receive approval from the commissioner for use of the third- party secure storage facility.
Receive approval from the commissioner for use of the third-party secure storage facility.
(3)[(2)] No mortgage loan company or mortgage loan broker by any system of Page 16 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA accounting or any device of bookkeeping shall, either directly or indirectly, enter any of its assets upon its books in the name of any person, partnership, association, or corporation[,] or under any title, designation, or value that is not thoroughly descriptive of any assets.
(3)[(2)] No mortgage loan company or mortgage loan broker by any system of accounting or any device of bookkeeping shall, either directly or indirectly, enter any of its assets upon its books in the name of any person, partnership, association, or corporation[,] or under any title, designation, or value that is not thoroughly descriptive of any assets.
(4)[(3)] The affairs of every mortgage loan company, mortgage loan broker, and mortgage loan originator, and the records required to be maintained by KRS 286.8- 160 , shall be[are] subject at any time or from time to time to such periodic, special, or other examinations by the commissioner[executive director] or an examiner of the commissioner within or without this state and with or without notice to the person being examined, as the commissioner deems necessary or appropriate in the public interest.
(4)[(3)] The affairs of every mortgage loan company, mortgage loan broker, and mortgage loan originator, and the records required to be maintained by KRS 286.8-160 , shall be[are] subject at any time or from time to time to such periodic, special, or other examinations by the commissioner[executive director] or an examiner of the commissioner within or without this state and with or without notice to the person being examined, as the commissioner deems necessary or appropriate in the public interest.
or[ any] 3.
or[ any] CHAPTER 125 9 3.
Any agency of the state or federal government;[,] Page 17 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA 2.
Any agency of the state or federal government;[,] 2.
and (c) Such other information deemed necessary to carry out the purposes of this Page 18 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA section.
and (c) Such other information deemed necessary to carry out the purposes of this section.
(a) Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) Retain attorneys, accountants, or other professionals and specialists as examiners, auditors, or investigators to conduct or assist in the conduct of examinations or investigations;
(b) Enter into agreements or relationships with other government officials or Page 19 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this subtitle;
(b) Enter into agreements or relationships with other government officials or regulatory associations in order to improve efficiencies and reduce regulatory burden by sharing resources, standardized or uniform methods or procedures, and documents, records, information, or evidence obtained under this subtitle;
(5) The commissioner may deem an application abandoned and subject to KRS 286.8- Page 20 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA 090 when:
(5) The commissioner may deem an application abandoned and subject to KRS 286.8-090 when:
(a) 1.[(1)] To promulgate[prescribe] such [rules,] administrative regulations, [and] forms, and[ to promulgate such] orders as are deemed to be necessary and appropriate to accomplish the basic purposes of and the provisions contained within this subtitle.
(a) 1.[(1)]To promulgate[prescribe] such [rules,] administrative regulations, [and] forms, and[ to promulgate such] orders as are deemed to be necessary and appropriate to accomplish the basic purposes of and the provisions contained within this subtitle.
4.
CHAPTER 125 11 4.
An administrative regulation[No rule], form, or order may not be made, amended, or rescinded unless the commissioner finds that the action is necessary or appropriate in the public interest and consistent with the Page 21 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA purposes fairly intended by the policy and provisions of this subtitle.
An administrative regulation[No rule], form, or order may not be made, amended, or rescinded unless the commissioner finds that the action is necessary or appropriate in the public interest and consistent with the purposes fairly intended by the policy and provisions of this subtitle.
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and (d) 1.[(4)] At the commissioner's discretion, to require filings and fees required under this subtitle to be electronically filed with:
and (d) 1.[(4)]At the commissioner's discretion, to require filings and fees required under this subtitle to be electronically filed with:
The State Regulatory Registry, LLC's[its] parent, affiliate, or operating subsidiary;[;] or c.
The State Regulatory Registry, LLC's[its] parent, affiliate, or operating subsidiary;[;
or] c.
Page 22 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA (1) (a) Except as otherwise provided by law, applications for registration or renewals and[,] all papers, documents, reports, and other written instruments filed with the commissioner under this subtitle, or obtained pursuant to an examination by the department, shall be[Department of Financial Institutions are] open to public inspection, except that the commissioner pursuant to the provisions of KRS Chapter 61 may classify as confidential or withhold from public inspection, for such time as he or she considers necessary, any information which, in his or her judgment, the public welfare or the welfare of any licensee or registrant or its customers requires to be so withheld.
(1) (a) Except as otherwise provided by law, applications for registration or renewals and[,] all papers, documents, reports, and other written instruments filed with the commissioner under this subtitle, or obtained pursuant to an examination by the department, shall be[Department of Financial Institutions are] open to public inspection, except that the commissioner pursuant to the provisions of KRS Chapter may classify as confidential or withhold from public inspection, for such time as he or she considers necessary, any information which, in his or her judgment, the public welfare or the welfare of any licensee or registrant or its customers requires to be so withheld.
Mortgage Page 23 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA Licensing Act, 12 U.S.C.
Mortgage Licensing Act, 12 U.S.C.
(2) No person[It] shall[ be unlawful for any person], in connection with a transaction involving the mortgage lending process, or in connection with the operation of a mortgage loan business or the management or servicing of mortgage loans, directly or indirectly:
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (2) No person[It] shall[ be unlawful for any person], in connection with a transaction involving the mortgage lending process, or in connection with the operation of a mortgage loan business or the management or servicing of mortgage loans, directly or indirectly:
or Page 24 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA (i) [To ]Fail to comply with state or federal laws, including the rules and regulations thereunder, that are applicable to transacting business in Kentucky.
or (i) [To ]Fail to comply with state or federal laws, including the rules and regulations thereunder, that are applicable to transacting business in Kentucky.
Maintains a valid unique identifier issued by the Nationwide Page 25 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA Multistate[Mortgage] Licensing System and Registry.
Maintains a valid unique identifier issued by the Nationwide Multistate[Mortgage] Licensing System and Registry.
and (c) Contain such information as the commissioner deems necessary to carry out the purposes of this subtitle.
and CHAPTER 125 13 (c) Contain such information as the commissioner deems necessary to carry out the purposes of this subtitle.
[(c) For the purposes of paragraph (a) of this subsection, ]The commissioner may accept as credit towards the completion of the prelicensing education requirements in this state, the completion of Page 26 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA prelicensing education requirements in any other state so long as the education has met the requirements set forth in[ paragraphs (a) and (b) of] this subsection.
[(c) For the purposes of paragraph (a) of this subsection, ]The commissioner may accept as credit towards the completion of the prelicensing education requirements in this state, the completion of prelicensing education requirements in any other state so long as the education has met the requirements set forth in[ paragraphs (a) and (b) of] this subsection.
Page 27 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA Mortgage Licensing Act, 12 U.S.C.
Mortgage Licensing Act, 12 U.S.C.
(a) The applicant has never had a loan originator's license or registration revoked in any governmental jurisdiction, except revocations that have been formally vacated or set aside shall not be deemed a revocation for the purposes of this section;
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) The applicant has never had a loan originator's license or registration revoked in any governmental jurisdiction, except revocations that have been formally vacated or set aside shall not be deemed a revocation for the purposes of this section;
Page 28 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA (d) The applicant has completed the prelicensing education requirement set forth in subsection (3) of this section;
(d) The applicant has completed the prelicensing education requirement set forth in subsection (3) of this section;
Provide the mortgage loan processor with the continuing education required under KRS 286.8-260;
Provide the mortgage loan processor with the continuing education required under KRS 286.8- 260;
a.[1.]During the seven (7) year period preceding the date of the application;
a.[1.] During the seven (7) year period preceding the date of the application;
or b.[2.]At any time preceding the date of application, if the felony involved an act of fraud or dishonesty, a breach of trust, or money laundering;
or b.[2.] At any time preceding the date of application, if the felony involved an act of fraud or dishonesty, a breach of trust, or money laundering;
and 2.[(b)] The applicant has demonstrated financial responsibility, character, Page 29 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA and general fitness sufficient to command the confidence of the community and to warrant a determination that the loan processor will operate honestly, fairly, lawfully, and efficiently within the purposes of this subtitle.
and 2.[(b)]The applicant has demonstrated financial responsibility, character, and general fitness sufficient to command the confidence of the community and to warrant a determination that the loan processor will operate honestly, fairly, lawfully, and efficiently within the purposes of this subtitle.
(12) Mortgage loan originators engaging in any of the activities set forth in KRS 286.8- 010(18)(a)[(21)(a)] shall provide loan origination services to not more than one (1) mortgage loan company or mortgage loan broker at a time.
CHAPTER 125 15 (12) Mortgage loan originators engaging in any of the activities set forth in KRS 286.8-010(18)(a)[(21)(a)] shall provide loan origination services to not more than one (1) mortgage loan company or mortgage loan broker at a time.
(b) A minimum of one (1) hour of continuing professional education each year shall be instruction on the requirements of this subtitle,[ or ]KRS 360.100, or Page 30 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA a combination of both.
(b) A minimum of one (1) hour of continuing professional education each year shall be instruction on the requirements of this subtitle,[ or] KRS 360.100, or a combination of both.
and[ unless the Nationwide Mortgage Licensing System and Registry provides otherwise.] (b) [(3) For the purposes of subsection (1) of this section, ]The commissioner may accept as credit towards the completion of the continuing professional education requirements in this state, the completion of continuing professional education requirements in any other state so long as the education has met the requirements set forth in this subsection and subsection[subsections] (1) [and (2)] of this section.
and[ unless the Nationwide Mortgage Licensing System and Registry provides otherwise.] (b) [(3) For the purposes of subsection (1) of this section, ]The commissioner may accept as credit towards the completion of the continuing professional education requirements in this state, the completion of continuing professional education requirements in any other state so long as the education has met the requirements set forth in this subsection and subsection[subsections] (1) [and (2) ]of this section.
(4)[(5)] The registration of any mortgage loan originator that fails to comply with the continuing professional education requirements of this section and who has not Page 31 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA been granted an extension of time to comply in accordance with subsection (3)[(4)] of this section shall:
(4)[(5)] The registration of any mortgage loan originator that fails to comply with the continuing professional education requirements of this section and who has not been granted an extension of time to comply in accordance with subsection (3)[(4)] of this section shall:
The commissioner may also establish interim procedures and expedited review and registration procedures for previously registered individuals.] (d)[(e)] The commissioner may use the Nationwide Multistate[Mortgage] Licensing System and Registry as an agent for receiving, requesting, and Page 32 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA distributing information to and from any source so directed by the commissioner.
The commissioner may also Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY establish interim procedures and expedited review and registration procedures for previously registered individuals.] (d)[(e)] The commissioner may use the Nationwide Multistate[Mortgage] Licensing System and Registry as an agent for receiving, requesting, and distributing information to and from any source so directed by the commissioner.
(b) The total number of individuals who received a passing score on the examination, along with any relevant demographic information available such Page 33 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA as race, ethnicity, or gender;
(b) The total number of individuals who received a passing score on the examination, along with any relevant demographic information available such as race, ethnicity, or gender;
(1) The following mortgage loan companies and mortgage loan brokers shall be subject to KRS 286.8-046, 286.8-180, 286.8-220(1), and subsections (12), (13), and (14) of this section, but shall be exempt from all other provisions of this subtitle:
(1) The following mortgage loan companies and mortgage loan brokers shall be subject to KRS 286.8-046, 286.8- 180, 286.8-220(1), and subsections (12), (13), and (14) of this section, but shall be exempt from all other provisions of this subtitle:
856, an institution of the farm credit system organized under the Farm Credit Act of 1971 as amended, or any wholly owned subsidiary of any such person if the subsidiary is subject to regular examination at least once every two (2) Page 34 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA years by a state or federal financial institution regulatory agency;
856, an institution of the farm credit system organized under the Farm Credit Act of as amended, or any wholly owned subsidiary of any such person if the subsidiary is subject to regular examination at least once every two (2) years by a state or federal financial institution regulatory agency;
(b) Any natural person who makes a mortgage loan secured by a dwelling that served as the natural person's residence, unless the natural person is compensated in connection with that transaction by a mortgage loan company, mortgage loan broker, or other mortgage loan originator, or by an agent of such company, broker, or other originator;
(b) Any natural person who makes a mortgage loan secured by a dwelling that served as the natural person's residence, unless the natural person is compensated in connection with that transaction by a CHAPTER 125 17 mortgage loan company, mortgage loan broker, or other mortgage loan originator, or by an agent of such company, broker, or other originator;
(g) Any mortgage loan company or mortgage loan broker making or brokering a mortgage loan involving housing initially transferred by certificate of title Page 35 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA under KRS Chapter 186A;
(g) Any mortgage loan company or mortgage loan broker making or brokering a mortgage loan involving housing initially transferred by certificate of title under KRS Chapter 186A;
The period of exemption shall be from January 1 through December 31, and the exemption shall expire on Page 36 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA December 31 of the same calendar year.
The period of exemption shall be from January 1 through December 31, and the exemption shall expire on December 31 of the same calendar year.
(6) Any person listed in subsection (1)(a), (b), (c), (d), (e), (f), (g), or (h) of this section shall not be required to file with the commissioner a claim of exemption.
Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (6) Any person listed in subsection (1)(a), (b), (c), (d), (e), (f), (g), or (h) of this section shall not be required to file with the commissioner a claim of exemption.
(The phone number and address of the Kentucky Department of Financial Institutions.) Page 37 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA (b) A copy of the disclosure, signed by the borrower, shall be maintained by the natural person for a period not to exceed three (3) years after the date the mortgage loan is paid in full.
(The phone number and address of the Kentucky Department of Financial Institutions.) (b) A copy of the disclosure, signed by the borrower, shall be maintained by the natural person for a period not to exceed three (3) years after the date the mortgage loan is paid in full.
Page 38 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA (c) Any investigation and enforcement provisions of this subtitle including KRS 286.8-170(7)[(6)], and KRS 286.8-046, 286.8-090, 286.8-190, and 286.8-990;
(c) Any investigation and enforcement provisions of this subtitle including KRS 286.8-170(7)[(6)], and KRS 286.8-046, 286.8-090, 286.8-190, and 286.8-990;
(1) Except as otherwise provided in subsection (2) of this section, a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license, or franchise, and which term prohibits, restricts, or Page 39 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment, or perfection of a security interest in, the promissory note, health-care-insurance receivable, or general intangible, is ineffective to the extent that the term:
CHAPTER 125 19 (1) Except as otherwise provided in subsection (2) of this section, a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license, or franchise, and which term prohibits, restricts, or requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment, or perfection of a security interest in, the promissory note, health-care-insurance receivable, or general intangible, is ineffective to the extent that the term:
Page 40 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA (4) To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or general intangible or a rule of law, statute, or regulation described in subsection (3) of this section would be effective under law other than this article but is ineffective under subsection (1) or (3) of this section, the creation, attachment, or perfection of a security interest in the promissory note, health-care-insurance receivable, or general intangible:
(4) To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or general intangible or a rule of law, statute, or regulation described in subsection (3) of this section would be effective under law other than this article but is ineffective under subsection (1) or (3) of this section, the creation, attachment, or perfection of a security interest in the promissory note, health-care-insurance receivable, or general intangible:
(d) Does not entitle the secured party to use or assign the debtor's rights under the promissory note, health-care-insurance receivable, or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable, or general intangible;
(d) Does not entitle the secured party to use or assign the debtor's rights under the promissory note, health- care-insurance receivable, or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable, or general intangible;
and (f) Does not entitle the secured party to enforce the security interest in the promissory note, health-care-insurance receivable, or general intangible.
and (f) Does not entitle the secured party to enforce the security interest in the promissory note, health-care- insurance receivable, or general intangible.
KRS 56.230(2), 138.320(3), 138.665(4), 138.720(5), 139.250, 154A.400(3), 190.047(1), 190.070(2)(c), Page 41 of 42 HB064310.100 - 2080 - XXXX GA UNOFFICIAL COPY 22 RS HB 643/GA 217B.535(2), 228.070(2), 230.300(11), 234.330(10), 243.630(2), 260.815, 286.4- 460(2), 292.320(2)(b), 286.8-036(3)[(2)], 304.3-410(2)(f), 304.3-520(5), 333.080, 350.135(1), 365.430(27), and 286.9-070(2).
KRS 56.230(2), 138.320(3), 138.665(4), 138.720(5), 139.250, 154A.400(3), 190.047(1), 190.070(2)(c), 217B.535(2), 228.070(2), 230.300(11), 234.330(10), 243.630(2), 260.815, 286.4-460(2), 292.320(2)(b), 286.8-036(3)[(2)], 304.3-410(2)(f), 304.3-520(5), 333.080, 350.135(1), 365.430(27), and 286.9-070(2).
Page 42 of 42 HB064310.100 - 2080 - XXXX GA
Signed by Governor April 8, 2022.
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Action History

  1. signed by Governor (Acts Ch. 125)

  2. delivered to Governor

  3. enrolled, signed by President of the Senate

  4. enrolled, signed by Speaker of the House

  5. received in House

  6. 3rd reading, passed 36-0

  7. passed over and retained in the Consent Orders of the Day

  8. posted for passage in the Consent Orders of the Day for Friday, March 25, 2022

  9. 2nd reading, to Rules as a consent bill

  10. reported favorably, 1st reading, to Consent Calendar

  11. to Banking & Insurance (S)

  12. to Committee on Committees (S)

  13. received in Senate

  14. 3rd reading, passed 91-0 with Floor Amendment (1)

  15. posted for passage in the Regular Orders of the Day for Friday, March 04, 2022

  16. floor amendment (1) filed

  17. 2nd reading, to Rules

  18. reported favorably, 1st reading, to Calendar

  19. to Banking & Insurance (H)

  20. to Committee on Committees (H)

  21. introduced in House

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 137 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (137)

137 members have not signed on to this bill.

Show all 137 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

PASS HB 643

Passed 36 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 17002
Republican 17000
Democrat 2000
Total 36002
% of votes cast 95%0%0%5%
How each member voted (38)
Member Party Vote
Alvarado — Yea
Parrett — Yea
Thomas — Yea
Hornback — Yea
Turner — Yea
Schickel — Yea
Schroder — Yea
Castlen — Yea
McGarvey — Yea
Smith — Yea
Westerfield — Yea
Meredith — Yea
Southworth — Yea
Nemes — Yea
Thayer — Yea
Yates — Yea
Embry — Not Voting
Kerr — Not Voting
Harper Angel — Yea
Gerald A. Neal Democrat Yea
Karen Berg Democrat Yea
Brandon J. Storm Republican Yea
Christian McDaniel Republican Yea
Danny Carroll Republican Yea
David P. Givens Republican Yea
Donald Douglas Republican Yea
Jared Carpenter Republican Yea
Jason Howell Republican Yea
Jimmy Higdon Republican Yea
Julie Raque Adams Republican Yea
Max Wise Republican Yea
Mike Wilson Republican Yea
Phillip Wheeler Republican Yea
Rick Girdler Republican Yea
Robby Mills Republican Yea
Robert Stivers Republican Yea
Robin L. Webb Republican Yea
Stephen West Republican Yea

Official roll call →

Pass

Passed 91 Yea · 0 Nay · 10 Other
Party YeaNayPresentNot Voting
Republican 49004
Unaffiliated 34005
Democrat 8001
Total 910010
% of votes cast 90%0%0%10%
How each member voted (101)
Member Party Vote
Fischer — Yea
Jenkins — Yea
Santoro — Yea
Scott — Yea
Bechler — Yea
Minter — Yea
Bentley — Yea
Flood — Yea
Sheldon — Yea
Nemes — Yea
Smith — Yea
Koenig — Yea
Palumbo — Yea
Graham — Yea
Pratt — Yea
Thomas — Yea
Prunty — Yea
Timoney — Yea
Massey — Yea
Burch — Yea
Hatton — Yea
Raymond — Yea
Heath — Yea
McCoy — Yea
Cantrell — Yea
Webber — Yea
Meredith — Yea
Rowland — Yea
Westrom — Yea
DuPlessis — Yea
Dixon — Not Voting
Donohue — Not Voting
Wheatley — Not Voting
COMMONWEALTH OF KENTUCKY SENATE — Not Voting
Huff R — Not Voting
Kirk McCormick — Yea
Miller C — Yea
Miller J — Yea
Stevenson C — Yea
Al Gentry Democrat Yea
Ashley Tackett Laferty Democrat Yea
George Brown Jr. Democrat Yea
Keturah J. Herron Democrat Yea
Lisa Willner Democrat Yea
Mary Lou Marzian Democrat Not Voting
Nima Kulkarni Democrat Yea
Pamela Stevenson Democrat Yea
Tina Bojanowski Democrat Yea
Aaron Reed Republican Yea
Adam Bowling Republican Yea
Bill Wesley Republican Yea
Bobby McCool Republican Yea
Chris Freeland Republican Yea
Chris Fugate Republican Yea
DJ Johnson Republican Yea
Daniel Elliott Republican Not Voting
Daniel Fister Republican Yea
David Hale Republican Yea
David Meade Republican Yea
David W. Osborne Republican Yea
Deanna Gordon Republican Yea
Derek Lewis Republican Not Voting
Felicia Rabourn Republican Yea
James Tipton Republican Yea
Jason Petrie Republican Yea
Jennifer Decker Republican Yea
Jim Gooch Jr. Republican Yea
John Blanton Republican Yea
Josh Branscum Republican Yea
Josh Bray Republican Yea
Josh Calloway Republican Yea
Ken Fleming Republican Yea
Ken Upchurch Republican Yea
Kim Banta Republican Yea
Kim King Republican Yea
Kimberly Poore Moser Republican Yea
Mark Hart Republican Yea
Mary Beth Imes Republican Yea
Matt Lockett Republican Yea
Matthew Koch Republican Yea
Michael Sarge Pollock Republican Yea
Myron Dossett Republican Yea
Nancy Tate Republican Yea
Patrick Flannery Republican Not Voting
Randy Bridges Republican Yea
Richard White Republican Not Voting
Ryan Dotson Republican Yea
Samara Heavrin Republican Yea
Savannah Maddox Republican Yea
Scott Lewis Republican Yea
Scott Sharp Republican Yea
Shane Baker Republican Yea
Shawn McPherson Republican Yea
Steve Bratcher Republican Yea
Steve Riley Republican Yea
Steven Rudy Republican Yea
Suzanne Miles Republican Yea
T.J. Roberts Republican Yea
Thomas Huff Republican Yea
Timmy Truett Republican Yea
William Lawrence Republican Yea

Official roll call →

Subjects

finance housing
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 643 do?
Amend KRS 286.8-010 to define terms; amend KRS 286.8-032 to require licensing fees and an annual assessment; amend KRS 286.8-036 to define terms; permit employees of a licensee to engage in the mortgage lending process from an alternate location if certain conditions are met; amend KRS 286.8-295 to define "employee"; require supervision and control of employees acting as mortgage loan originators; establish requirements for licensees that allow employees to engage in the mortgage lending process from alternate work locations; amend KRS 286.8-160 to prohibit records from being maintained at an alternate work location; amend KRS 286.8-170 to permit mortgage loan companies and mortgage loan brokers to utilize third-party secure storage facilities if certain conditions are met; amend KRS 286.8-100, 286.8-140, 286.8-150, 286.8-220, 286.8-255, 286.8-285, and 355.9-408 to update references to conform; make technical amendments throughout.
Who sponsors HB 643?
HB 643 is sponsored by Shawn McPherson (Republican).
What is the current status of HB 643?
This bill has been enacted into law. Introduced February 28, 2022. Enacted.
Where can I track HB 643?
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