Does the state require a physical location within the state?
There is an in-state office requirement for licensed brokers.

Is there individual loan officer licensing?
Loan originators must submit an annual registration.

What are lenders, brokers and loan officers called?
Kentucky uses the terms mortgage loan company, mortgage loan broker and loan officers or originators .

What is the cost of a license? Surety bond? Are there net worth requirements?
Applicants for a mortgage loan company license must submit an application, provide a surety bond of $250,000 and pay an annual license fee of $450 for the principal office and $250 for each branch office, plus an investigation fee of $300 for the principal office and $150 for each branch office. Licensees must maintain continuously a funding source of $1,000,000 or a net worth in excess of $1,000,000. A mortgage loan broker applicant must provide a surety bond of $50,000 and complete a 30 hour pre-licensing classroom course. Applicants must submit a reviewed or audited financial statement prepared by a licensed or certified public accountant. Individuals employed by a mortgage loan company as loan officers or originators must register with the Office of Financial Institutions. A loan officer or originator must pay a $50 fee and complete 12 hours of professional classroom education to register and must complete 12 hours of continuing education each year including at least six hours of classroom instruction.

Kentucky is transitioning to a calendar year licensing basis as a result of their participation in the Nationwide Mortgage Licensing System (NMLS). Entities must transition to the new system between Jan. 2 and June 30, 2008. At that time, licensees must pay a half-year renewal fee of $175 for the principal office and $125 for each branch office to cover the period between July 1 and Dec. 31. Those submitting new applications after Jan. 2 shall be required to pay the full licensing fee of $750 for the principal office and $400 for each branch office. Loan officer registrants must pay a partial renewal fee of $30 to cover the period between July 1 and Dec. 31. Those submitting new applications after Jan. 2 shall be required to pay the full registration fee of $50.

Is there a pre-licensing education requirement? Is there a test?
Initial mortgage loan broker applicants must have successfully completed an educational training course, approved by the department, of not less than 30 classroom hours. Initial loan originator applicants must have successfully completed 12 classroom hours of education courses related directly to the mortgage loan process or brokerage business, as approved by the department.

Is there a CE requirement?
Mortgage loan brokers must complete annually at least 12 hours of continuing education, at least six hours of which must be classroom hours. Up to 12 hours of continuing education may be carried forward from one continuing education year to the next. The same continuing education requirement applies to loan originators.

Are there different requirements for mortgage brokers and mortgage lenders (i.e. can you broker under a lender license)?
Kentucky issues separate licenses for lenders and brokers.

Are there any state specific high cost loan provisions?
Kentucky statutes define a "high-cost home loan." The definition is the same as the federal definition of a Section 32 loan in terms of loans exceeding federally prescribed annual percentage rate (APR) and points and fees thresholds. Kentucky places numerous restrictions and notice requirements on high-cost home loans.

Are there any state specific predatory lending laws?
See the high cost loan provisions.

Closing practices – attorney or title state? Wet or dry settlement?
Kentucky is treated as a wet funding state by practice. There is no penalty for not delivering funds with closing documents, but closing may be delayed if funds are not delivered.

Are there 2nd mortgage policies and/or restrictions? Do you need a separate license to do 2nd mortgages?
The Mortgage Loan Companies and Loan Brokers Act applies to all loans secured by first and subordinate lien mortgages on one- to four-family residential real property.

Who is the regulator and what is their contact information?
Division of Financial Institutions
1025 Capital Center Dr., Suite 200
Frankfort, KY 40601
Phone number: (502) 573-3390
Fax: (502) 573-0086
www.kfi.ky.gov


DISCLAIMER: The data contained here is for informational purposes only. It should not be the sole resource for licensing decisions. Please consult the regulator and/or an attorney that specializes in these matters before taking action.


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