Session Law

Identifying Information:L. 2001 ch. 166
Other Identifying Information:2001 House Bill 2595
Tax Type:Other
Brief Description:An Act amending the Kansas mortgage business act; amending K.S.A. 2000 Supp. 9-2201, as amended by section 2 of 2001 House Bill No. 2481 and repealing the existing section.
Keywords:


Body:

CHAPTER 166

HOUSE BILL No. 2595

(Amends Chapter 88)


An Act amending the Kansas mortgage business act; amending K.S.A. 2000 Supp. 9-2201,

as amended by section 2 of 2001 House Bill No. 2481 and repealing the existing section.




Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 2000 Supp. 9-2201, as amended by section 2 of

2001 House Bill No. 2481, is hereby amended to read as follows: 9-2201.

As used in this act:

(a) ``Bona fide office'' means an applicant's or licensee's principal

place of business which meets all of the following requirements:

(1) The office is located in this state;

(2) the office is not located in a personal residence;

(3) the office has regular hours of operation;

(4) the office is accessible to the public;

(5) the office is leased or owned by the licensee and serves as an

office for the transaction of the licensee's mortgage business;

(6) the office is separate from any office of another registrant; and

(7) all of the licensee's books, records and documents are accessible

through that office.

(b) ``Branch office'' means a place of business, other than a principal

place of business, where mortgage business is conducted, and which is

licensed as required by this act.

(c) ``Commissioner'' means the Kansas state bank commissioner.

(d) ``License'' means a license issued by the commissioner to engage

in mortgage business as a mortgage company.

(e) ``Licensee'' means a person who is licensed by the commissioner

as a mortgage company.

(f) ``Loan originator'' means an individual:

(1) Who engages in mortgage business on behalf of a single mortgage

company;

(2) who is registered with the commissioner as required by this act;

(3) whose conduct of mortgage business is the responsibility of the

licensee; and

(4) whose job responsibilities include direct contact with borrowers

during the loan origination process, which can include soliciting, negoti-

ating, acquiring, arranging or making mortgage loans for others, obtaining

personal or financial information, assisting with the preparation of loan

applications or other documents, quoting loan rates or terms, or providing

required disclosures. It does not mean a person whose job responsibilities

on behalf of a licensee are solely clerical in nature.

(g) ``Mortgage business'' means engaging in, or holding out to the

public as willing to engage in, for compensation or gain, or in the expec-

tation of compensation or gain, directly or indirectly, the business of mak-

ing, originating, servicing, soliciting, placing, negotiating, acquiring, sell-

ing, or arranging for others, or offering to solicit, place, negotiate, acquire,

sell or arrange for others, mortgage loans in the primary market.

(h) ``Mortgage company'' means a person engaged in mortgage busi-

ness from a principal place of business or branch office, which has been

licensed as required by this act.

(i) ``Mortgage loan'' means a loan or agreement to extend credit made

to a natural person which is secured by a first or second mortgage, deed

of trust, contract for deed or other similar instrument or document rep-

resenting a security interest or lien upon any lot intended for residential

purposes or a one-to-four family dwelling, located in this state, occupied

or intended to be occupied for residential purposes by the owner, in-

cluding the renewal or refinancing of any such loan.

(j) ``Person'' means any individual, sole proprietorship, corporation,

partnership, trust, association, joint venture, pool syndicate, unincorpor-

ated organization or other form of entity, however organized.

(k) ``Primary market'' means the market wherein mortgage loans are

originated between a lender and a borrower, whether or not through a

mortgage broker or other means.

(1) ``Principle place of business'' ``Principal place of business'' means

a licensed place of business where mortgage business is conducted, which

has been designated by a licensee as the primary headquarters from which

all mortgage business and administrative activities are managed and di-

rected.

(m) ``Promotional items'' means pens, pencils, hats and other such

novelty items.

(n) ``Registrant'' means any individual who holds a valid registration

to conduct mortgage business in this state as a loan originator.

Sec. 2. K.S.A. 2000 Supp. 9-2201, as amended by section 2 of 2001

House Bill No. 2481, is hereby repealed.

Sec. 3. This act shall take effect and be in force from and after No-

vember 1, 2001, and its publication in the statute book.

Approved May 9, 2000.


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Date Composed: 09/25/2001 Date Modified: 09/25/2001