Session Law

Identifying Information:L. 2001 ch. 088
Other Identifying Information:2001 House Bill 2481
Tax Type:Other
Brief Description:An Act amending the Kansas mortgage business act; amending K.S.A. 2000 Supp. 9-2201, 9-2202, 9-2203, 9-2204, 9-2205, 9-2206, 9-2207, 9-2208, 9-2209, 9-2211, 9-2212, 9-2213, 9-2214, 9-2215, 9-2216 and 9-2220 and repealing the existing sections.
Keywords:


Body:

CHAPTER 88

HOUSE BILL No. 2481

(Amended by Chapter 166)


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

9-2202, 9-2203, 9-2204, 9-2205, 9-2206, 9-2207, 9-2208, 9-2209, 9-2211, 9-2212, 9-2213,

9-2214, 9-2215, 9-2216 and 9-2220 and repealing the existing sections.




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

New Section 1. (a) Each licensee shall maintain a journal of mort-

gage transactions at the licensee's principal place of business, which shall

include at least the following information:

(1) Name, address and telephone number of each loan applicant;

(2) type of loan applied for and date of application; and

(3) disposition of loan application, indicating date of loan funding,

loan denial, withdrawal and name of lender if applicable.

(b) Each licensee shall annually, on or before April 1, file a written

report with the commissioner containing the information that the com-

missioner may reasonably require concerning the licensee's business and

operations during the preceding calendar year. The report shall be made

in the form prescribed by the commissioner. Any licensee who fails to

file the report required by this section with the commissioner by April 1

shall be subject to a late penalty of $100 for each day after April 1 the

report is delinquent, but in no event shall the aggregate of late penalties

exceed $5000. The commissioner may relieve any licensee from the pay-

ment of any penalty, in whole or in part, for good cause.

Sec. 2. K.S.A. 2000 Supp. 9-2201 is hereby amended to read as fol-

lows: 9-2201. As used in this act:

(a) ``Bona fide office'' means a registrant's physical office an appli-

cant's or licensee's principal place of business which meets all of the fol-

lowing 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 staffed by the registrant or an employee of the reg-

istrant;

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

(8) the office contains the books and records of the registrant or cop-

ies of the books and records

(7) all of 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.

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

(c) ``Employee'' means any individual:

(1) Who is employed solely by a registrant or applicant, and who is

not acting as an independent contractor;

(2) who conducts mortgage business activities only in the name of the

registrant or applicant; and

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

registrant or applicant.

(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, obtain-

ing 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 re-

sponsibilities on behalf of a licensee are solely clerical in nature.

(d) (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.

(e) (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,

and which creates a lien on representing 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, including the renewal or refinancing of any such

a loan.

(f) (j) ``Person'' means any individual, sole proprietorship, corpora-

tion, partnership, trust, association, joint venture, pool syndicate, unin-

corporated organization or other form of entity, however organized.

(g) (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'' 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 directed.

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

novelty items.

(i) (n) ``Registrant'' means any individual or other entity who holds a

valid certificate of registration to conduct mortgage business in this state

as a loan originator.

Sec. 3. K.S.A. 2000 Supp. 9-2202 is hereby amended to read as fol-

lows: 9-2202. The following are exempt from the registration licensing

requirements of this act:

(a) Any bank, bank holding company, savings bank, trust company,

savings and loan association, building and loan association, industrial loan

company or credit union regulated by an agency organized, chartered or

authorized under the laws of the United States or of any state which is

authorized to make loans and to receive deposits;

(b) any entity directly or indirectly regulated by an agency of the

United States or of any state which is a subsidiary or affiliate of any entity

listed in subsection (a) if 25% or more of such entity's common stock is

owned by any entity listed in subsection (a);

(c) any person who is registered with the Kansas securities commis-

sioner as a loan broker pursuant to K.S.A. 50-1001 et seq., and amend-

ments thereto, or who is licensed by the Kansas consumer credit com-

missioner as a supervised lender pursuant to K.S.A. 16a-2-301 et seq.,

and amendments thereto;

(d) the United States of America, the state of Kansas, any other state,

or any agency or instrumentality of any governmental entity; and

(e) a registrant's employee

(e) any individual who with their own funds for their own investment

makes a purchase money mortgage or finances the sale of their own prop-

erty, except that any person who enters into more than five such invest-

ments or sales in any twelve-month period shall be subject to all provisions

of this act.

Sec. 4. K.S.A. 2000 Supp. 9-2203 is hereby amended to read as fol-

lows: 9-2203. It shall be unlawful for any person to engage in or to ad-

vertise, publish or otherwise hold out to the public that such person is

engaged in the mortgage business without first being registered with the

commissioner as required by this act.

(a) Mortgage business shall only be conducted in this state at or from

a mortgage company licensed by the commissioner as required by this

act. A licensee shall be responsible for all mortgage business conducted

on their behalf by loan originators or other employees.

(b) Mortgage business involving loan origination shall only be con-

ducted in this state by an individual who has first been registered with

the commissioner as a loan originator as required by this act. Loan orig-

ination shall only be conducted at or from a mortgage company and a

registrant shall only engage in mortgage business on behalf of one mort-

gage company.

(c) Any such individual or member or officer of any such corporation

or other entity person violating this section act shall be guilty of a mis-

demeanor, and upon conviction shall be punished by a definite term of

confinement in the county jail which shall be fixed by the court and shall

not exceed one year, or a fine not exceeding $5,000 or both.

Sec. 5. K.S.A. 2000 Supp. 9-2204 is hereby amended to read as fol-

lows: 9-2204. (a) Any person required to register be licensed as a mortgage

company pursuant to this act shall submit to the commissioner an a sep-

arate application for registration the principal place of business and each

branch office on forms prescribed and provided by the commissioner.

The application or applications shall contain information the commis-

sioner deems necessary to adequately identify:

(1) The location and nature of the mortgage business to be con-

ducted, principal place of business address and each branch office ad-

dress;

(2) the identity, character and qualifications of an individual appli-

cant;

(3) the identity, character and qualifications of the loan originators,

owners, officers, directors, members, partners and employees of the en-

tity, if the applicant is a partnership, corporation or other business entity;

(4) the name under which the applicant intends to conduct business;

and

(5) other information the commissioner requires to evaluate the fi-

nancial responsibility and condition, character, qualifications, and fitness

of the applicant and compliance with the provisions of this act.

(b) Any individual required to register as a loan originator pursuant

to this act shall submit to the commissioner an application for registration

on forms prescribed and provided by the commissioner. The application

shall contain information the commissioner deems necessary to adequately

identify the location where the individual engages in mortgage business

activities, the licensee for whom the registrant will conduct mortgage busi-

ness and other information the commissioner requires to evaluate the con-

dition, character, qualifications, and fitness of the applicant and compli-

ance with the provisions of this act.

(b) (c) Each application for registration shall be accompanied by a

nonrefundable fee of not less than $100 $50, which may be increased by

rules and regulations pursuant to K.S.A. 2000 Supp. 9-2209, and amend-

ments thereto.

(c) (d) An application for registration shall be approved, and a non-

assignable certificate of license or registration shall be issued to the ap-

plicant provided:

(1) The commissioner has received the complete application and fee

required by this section; and

(2) the commissioner determines the proposed name under which an

applicant for a mortgage company license intends to conduct business is

not misleading or otherwise deceptive; and

(2) (3) the commissioner determines the financial responsibility and

condition, character, qualifications and fitness of the applicant warrants

a belief that the business of the applicant will be conducted competently,

honestly, fairly and in accordance with all applicable state and federal

laws.

Sec. 6. K.S.A. 2000 Supp. 9-2205 is hereby amended to read as fol-

lows: 9-2205. (a) A certificate of license or registration shall become ef-

fective as of the date specified on the face of the certificate.

(b) The registration A license shall be renewed in each odd-numbered

year by filing with the commissioner, at least 30 days prior to the expi-

ration of the registration license, a renewal application, containing infor-

mation the commissioner requires to determine the existence of material

changes from the information contained in the applicant's original reg-

istration license application or prior renewal applications.

(c) A registration shall be renewed annually by filing with the com-

missioner, at least 30 days prior to the expiration of the registration, a

renewal application, containing information the commission requires to

determine the existence of material changes from the information con-

tained in the applicant's original registration application or prior renewal

applications, including the completion of any continuing education

requirements.

(c) (d) Each renewal application shall be accompanied by a nonre-

fundable fee which shall be established by rules and regulations pursuant

to K.S.A. 2000 Supp. 9-2209, and amendments thereto.

(d) (e) Any renewal application received by the commissioner after

the expiration date of the registrant's current certificate license or regis-

tration shall be treated as an original application and be subject to all

reporting and fee requirements contained in K.S.A. 2000 Supp. 9-2204,

and amendments thereto.

Sec. 7. K.S.A. 2000 Supp. 9-2206 is hereby amended to read as fol-

lows: 9-2206. If the commissioner fails to issue a certificate of license or

registration within 60 days or grant a renewal within 30 days after a filed

application is deemed complete by the commissioner, the applicant may

make written request for an appeal on the issue of the applicant's regis-

tration or renewal qualifications hearing. The commissioner shall conduct

a hearing in accordance with the Kansas administrative procedure act.

Sec. 8. K.S.A. 2000 Supp. 9-2207 is hereby amended to read as fol-

lows: 9-2207. The commissioner may deny, suspend, revoke, or refuse to

renew the a license or registration of a mortgage business issued pursuant

to this act, if the commissioner finds, after notice and opportunity for a

hearing conducted in accordance with the provisions of the administrative

procedures act, that:

(a) The applicant, licensee or registrant has repeatedly or willfully

violated any section of this act or any rule and regulation or order lawfully

made pursuant to this act;

(b) facts or conditions exist which would have justified the denial of

the license, registration or renewal had these facts or conditions existed

or been known to exist at the time the application for the license, regis-

tration or renewal was made;

(c) the applicant, licensee or registrant has filed with the commis-

sioner any document or statement containing any false representation of

a material fact or fails to state a material fact;

(d) the applicant, licensee or registrant has been convicted of any

crime involving fraud, dishonesty or deceit;

(e) the applicant, licensee or registrant has engaged in or is engaging

in deceptive business practices;

(f) the applicant, licensee or registrant, or an employee of the appli-

cant, licensee or registrant, has been the subject of any disciplinary action

by this agency or any other state or federal regulatory agency;

(g) a final judgment has been entered against the applicant, licensee

or registrant in a civil action and the commissioner finds, based upon the

conduct on which the judgment is based, that licensing or registration of

such person would be contrary to the public interest;

(h) the applicant, licensee or registrant, or an employee of the appli-

cant, licensee or registrant has been convicted of engaging in mortgage

business activity without authorization pursuant to K.S.A. 2000 Supp. 9-

2203, and amendments thereto or a substantially similar offense in an-

other state; or

(i) the applicant, licensee or registrant has refused to furnish infor-

mation required by the commissioner within a reasonable period of time

as established by the commissioner.

Sec. 9. K.S.A. 2000 Supp. 9-2208 is hereby amended to read as fol-

lows: 9-2208. (a) Every certificate of registration shall be properly dis-

played in a prominent place within the registrant's place of business Each

licensee shall prominently display the license of any principal place of

business and any branch office in a way that reasonably assures recogni-

tion by customers and members of the general public who enter the

registrant's licensee's place of business.

(b) Prior to entering into any contract for the provision of services or

prior to the registrant licensee receiving any compensation or promise of

compensation for a mortgage loan the registrant licensee shall acquire

from the customer a signed acknowledgment containing such information

as the commissioner may prescribe by rule and regulation. A copy of the

acknowledgment The signed acknowledgment shall be retained by the

licensee and a copy shall be provided to the customer.

(c) The registrant shall identify that such registrant is registered un-

der this act in all advertising or solicitations directed to Kansas residents,

including internet solicitations. For the purpose of this subsection, ``ad-

vertising'' does not include business cards or promotional items.

(c) All solicitations and published advertisements concerning mort-

gage business directed at Kansas residents, including those on the internet

or by other electronic means, shall contain the words ``Kansas licensed

mortgage company,'' and must also contain the name, address and license

number of the licensee, which shall be the same as the name, address and

number on record with the commissioner. Each licensee shall maintain a

record of all solicitations or advertisements for a period of 25 months. For

the purpose of this subsection, ``advertising'' does not include business

cards or promotional items.

(d) No solicitation or advertisement shall contain false, misleading or

deceptive information, or indicate or imply that the interest rates or

charges stated are ``recommended,'' ``approved,'' ``set'' or ``established'' by

the state of Kansas.

(d) (e) No licensee or registrant shall conduct mortgage business in

this state using any name other than the name or names stated on the

certificate of their license or registration.

Sec. 10. K.S.A. 2000 Supp. 9-2209 is hereby amended to read as

follows: 9-2209. The commissioner may exercise the following powers:

(a) Adopt rules and regulations as necessary to carry out the intent

and purpose of this act;

(b) make investigations and examinations of the registrant's licensee's

operations, books and records as the commissioner deems necessary for

the protection of the public;

(c) charge reasonable costs of investigation, administration or exam-

ination to be paid by the applicant, licensee or registrant under investi-

gation or, examination or requiring administrative action;

(d) order any licensee or registrant to cease any activity or practice

which the commissioner deems to be deceptive, dishonest, violative of

state or federal law or unduly harmful to the interests of the public;

(e) exchange any information regarding the administration of this act

with any agency of the United States or any state which regulates the

licensee or registrant or administers statutes, rules and regulations or pro-

grams related to mortgage loans; and

(f) disclose to any person or entity that an applicant's, licensee's or

registrant's certificate of application, license or registration has been de-

nied, suspended, revoked or refused renewal;

(g) require or permit any person to file a written statement, under

oath or otherwise as the commissioner may direct, setting forth all the

facts and circumstances concerning any apparent violation of this act, or

any rule and regulation promulgated thereunder or any order issued pur-

suant to this act; and

(h) receive, as a condition in settlement of any investigation or ex-

amination, a payment designated for consumer education to be expended

for such purpose as directed by the commissioner.;

(i) require that any applicant, registrant, licensee or other person suc-

cessfully passes a standardized examination designed to establish such

person's knowledge of mortgage business transactions and all applicable

state and federal law. Such examinations shall be created and adminis-

tered by the commissioner, or the commissioner's designee, and may be

made a condition of application approval or application renewal; and

(j) require that any licensee, registrant or other person complete a

minimum number of continuing education hours on an annual or biannual

basis. Continuing education courses shall be approved by the commis-

sioner, or the commissioner's designee, and may be made a condition of

application renewal.

Sec. 11. K.S.A. 2000 Supp. 9-2211 is hereby amended to read as

follows: 9-2211. (a) Each applicant or registrant licensee who maintains a

bona fide office shall comply with at least one of the following:

(1) Submit written evidence which establishes, to the commissioner's

satisfaction, that the applicant or registrant is approved as a mortgagee

by:

(A) The federal department of housing and urban development;

(B) the federal national mortgage association; or

(C) the federal home loan mortgage corporation.

(2) (A) file with the commissioner a surety bond or irrevocable letter

of credit in the amount of $25,000 $50,000, in a form acceptable to the

commissioner, issued by an insurance company or financial institution

authorized to conduct business in this state, securing the applicant's or

registrant's licensee's faithful performance of all duties and obligations of

a registrant licensee meeting the following requirements:

(i) (1) The bond or letter of credit shall be payable to the office of

the state bank commissioner;

(ii) (2) the terms of the bond or irrevocable letter of credit shall pro-

vide that it may not be terminated without 30 days prior written notice

to the commissioner; and

(iii) (3) the bond or irrevocable letter of credit shall be available for

the recovery of expenses, fines and fees levied by the commissioner under

this act, and for losses or damages which are incurred by any borrower

or consumer as a result of the applicant's or registrant's licensee's failure

to comply with the requirements of this act; and

(B) submit evidence that establishes, to the commissioner's satisfac-

tion, that the applicant or registrant shall at all times maintain not less

than $10,000 in liquid assets acceptable to the commissioner.

(3) Submit evidence that establishes, to the commissioner's satisfac-

tion, that the applicant or registrant shall at all times maintain a minimum

net worth of $100,000. Evidence of net worth shall include the submission

of a balance sheet accompanied by a written statement by an independent

certified public accountant attesting that the balance sheet has been re-

viewed in accordance with generally accepted accounting principles.

(b) Each applicant or registrant licensee who does not maintain a bona

fide office shall comply with both of the following:

(1) File with the commissioner a surety bond or irrevocable letter of

credit in the amount of $100,000, in a form acceptable to the commis-

sioner, issued by an insurance company or financial institution authorized

to conduct business in this state, securing the applicant's or registrant's

licensee's faithful performance of all duties and obligations of a registrant.

licensee meeting the following requirements:

(A) The bond or letter of credit shall be payable to the office of the

state bank commissioner.;

(B) the terms of the bond or irrevocable letter of credit shall provide

that it may not be terminated without 30 days prior written notice to the

commissioner.; and

(C) the bond or irrevocable letter of credit shall be available for the

recovery of expenses, fines and fees levied by the commissioner under

this act, and for losses or damages which are incurred by any borrower

or consumer as a result of the applicant's or registrant's licensee's failure

to comply with the requirements of this act.;

(2) Submit evidence that establishes, to the commissioner's satisfac-

tion, that the applicant or registrant licensee shall at all times maintain a

minimum net worth of $50,000. Evidence of net worth shall include the

submission of a balance sheet accompanied by a written statement by an

independent certified public accountant attesting that the balance sheet

has been reviewed in accordance with generally accepted accounting

principles.

Sec. 12. K.S.A. 2000 Supp. 9-2212 is hereby amended to read as

follows: 9-2212. (a) Except for those persons meeting the requirements

of K.S.A. 2000 Supp. 9-2202 and amendments thereto, a registrant shall

not No person required to be licensed or registered under this act shall:

(a) Pay compensation to, contract with or employ as an independent

contractor in any manner, any person engaged in mortgage business who

does not hold a valid certificate of registration is not properly licensed or

registered, unless such person meets the requirements of K.S.A. 9-2202,

and amendments thereto.;

(b) No person shall be employed by a registrant without the prior

written approval of the commissioner if such person employ any person

who has:

(1) Had a certificate of license or registration denied, revoked, sus-

pended or refused renewal; or

(2) been convicted of any crime involving fraud, dishonesty or deceit.;

(3) (c) delay closing of a mortgage loan for the purpose of increasing

interest, costs, fees or charges payable by the borrower;

(4) (d) misrepresent the material facts or make false promises in-

tended to influence, persuade or induce an applicant for a mortgage loan

or mortgagee to take a mortgage loan or cause or contribute to misrep-

resentation by any person acting on the licensee's behalf;

(5) (e) misrepresent to or conceal from an applicant for a mortgage

loan or mortgagor, material facts, terms or conditions of a transaction to

which the licensee or registrant is a party;

(6) (f) engage in any transaction, practice or business conduct that is

not in good faith, or that operates a fraud upon any person in connection

with the making of or purchase or sale of any mortgage loan;

(7) (g) receive compensation for rendering mortgage business services

where the licensee or registrant has otherwise acted as a real estate broker

or agent in connection with the sale of the real estate which secures the

mortgage transaction unless the licensee or registrant has provided writ-

ten disclosure to the person from whom compensation is collected that the

licensee or registrant is receiving compensation both for mortgage busi-

ness services and for real estate broker or agent services;

(8) (h) engage in any fraudulent residential mortgage brokerage or

underwriting practices;

(9) (i) advertise, display, distribute, broadcast or televise, or cause or

permit to be advertised, displayed, distributed, broadcast or televised, in

any manner, any false, misleading or deceptive statement or representa-

tion with regard to rates, terms or conditions for a mortgage loan;

(10) (j) record a mortgage if moneys are not available for the imme-

diate disbursal to the mortgagor unless, before that recording, the licensee

informs the mortgagor in writing of a definite date by which payment

shall be made and obtains the mortgagor's written permission for the

delay; or

(11) (k) transfer, assign or attempt to transfer or assign, a license or

registration to any other person.

Sec. 13. K.S.A. 2000 Supp. 9-2213 is hereby amended to read as

follows: 9-2213. (a) Within three business days of receipt a registrant

licensee shall deposit all fees and money received from a borrower prior

to the time a loan is consummated in an escrow account in a bank, savings

bank, savings and loan association or credit union incorporated under the

laws of this state, or organized under the laws of the United States or

another state.

(b) For each borrower the registrant licensee shall maintain a separate

record of all money received for any service performed or to be per-

formed, including any payment to a third party, setting forth:

(1) The date the money was received;

(2) the amount of money received;

(3) the date the money was deposited in the escrow account; and

(4) the date, description, and justification for each disbursement.

(c) Upon the request of a borrower, a copy of the record required by

subsection (b) shall be provided to the borrower:

(1) Within five business days of consummation of the loan; or

(2) within five business days of receipt of written notice of the bor-

rower's intention to withdraw from the loan transaction.

Sec. 14. K.S.A. 2000 Supp. 9-2214 is hereby amended to read as

follows: 9-2214. All original documents provided to the registrant licensee

by the borrower or at the expense of the borrower, including any ap-

praisals, are the property of the borrower and at the borrower's request,

shall be returned to the borrower without further expense if the loan is

not consummated.

Sec. 15. K.S.A. 2000 Supp. 9-2215 is hereby amended to read as

follows: 9-2215. (a) A registrant licensee shall provide written notice to

the commissioner within 10 business days of the occurrence of any of the

following events:

(1) A change in the registrant's main office address;

(2) (1) The opening, closing or relocation of the principal place of

business or any branch office of the registrant located in this state;

(3) (2) a change in the registrant's licensee's name or legal entity

status; or

(4) (3) the addition of an or loss of any loan originator, owner, officer,

partner or director to the registrant's business.

(b) The commissioner may request additional information concerning

any written notice received pursuant to subsection (a) and charge a rea-

sonable fee for any action required by the commissioner as a result of

such notice and additional information.

Sec. 16. K.S.A. 2000 Supp. 9-2216 is hereby amended to read as

follows: 9-2216. (a) A registrant licensee shall keep for at least 25 months

copies of all deposit receipts, canceled checks, trust account records, re-

quired federal and state disclosures and other relevant documents or cor-

respondence received or prepared by the licensee or registrant in con-

nection with a loan or loan application and those records and documents

required by the commissioner by rules and regulations adopted pursuant

to K.S.A. 2000 Supp. 9-2209, and amendments thereto. If the loan is not

serviced by a registrant licensee, the retention period commences on the

date the loan is closed or, if the loan is not closed, the date of the loan

application. If the loan is serviced by a registrant licensee, the retention

period commences on the date the loan is paid in full or the date the

registrant licensee ceases to service the loan.

(b) All books, records and any other documents held by the registrant

licensee shall be made available for examination and inspection by the

commissioner or the commissioner's designee. Certified copies of all re-

cords not kept within this state shall be delivered to the commissioner

within three business days of the date such documents are requested.

Sec. 17. K.S.A. 2000 Supp. 9-2220 is hereby amended to read as

follows: 9-2220. The provisions of K.S.A. 2000 Supp. 9-2201 through 9-

2220, and amendments thereto, and section 1, and amendments thereto,

shall be known and may be cited as the Kansas mortgage business act.

Sec. 18. K.S.A. 2000 Supp. 9-2201, 9-2202, 9-2203, 9-2204, 9-2205,

9-2206, 9-2207, 9-2208, 9-2209, 9-2211, 9-2212, 9-2213, 9-2214, 9-2215,

9-2216 and 9-2220 are hereby repealed.

Sec. 19. This act shall take effect and be in force from and after

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

Approved April 3, 2000.


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