Session of 2000
SENATE BILL No. 612
By Committee on Financial Institutions and
Insurance
2-9
9 AN ACT
concerning mortgage business and mortgage loans; concerning
10 an exemption for
insurance agents; amending K.S.A. 1999 Supp. 9-
11 2201 and 9-2202 and
repealing the existing sections.
12
13 Be it enacted by the Legislature of the
State of Kansas:
14 Section
1. K.S.A. 1999 Supp. 9-2201 is hereby amended to read as
15 follows: 9-2201. As used in this act:
16 (a) "Bona fide
office" means a registrant's physical office which meets
17 all of the following requirements:
18 (1) The office is
located in this state;
19 (2) the office is
not located in a personal residence;
20 (3) the office
has regular hours of operation;
21 (4) the office is
accessible to the public;
22 (5) the office
serves as an office for the transaction of mortgage
23 business;
24 (6) the office is
staffed by the registrant or an employee of the
25 registrant;
26 (7) the office is
separate from any office of another registrant; and
27 (8) the office
contains the books and records of the registrant or cop-
28 ies of the books and records.
29 (b) "Bona fide
third party fee" means a fee for any:
30 (1) Credit
report;
31
(2) appraisal;
32
(3) investigation;
33 (4) title
examination;
34 (5) abstract
of title;
35 (6) title
insurance;
36 (7) property
survey; and
37 (8) any
similar document relating to real property.
38 (b)
(c) "Commissioner" means the Kansas state bank
commissioner.
39 (c)
(d) "Employee" means any individual:
40 (1) Who is
employed solely by a registrant or applicant, and who is
41 not acting as an independent
contractor;
42 (2) who conducts
mortgage business activities only in the name of the
43 registrant or applicant; and
2
1 (3) whose
conduct of mortgage business is the responsibility of the
2 registrant or applicant.
3
(d) (e) "Mortgage business" means
engaging in, or holding out to the
4 public as willing to engage in, for
compensation or gain, or in the expec-
5 tation of compensation or gain,
directly or indirectly, the business of mak-
6 ing, originating, servicing,
soliciting, placing, negotiating, acquiring, sell-
7 ing, or arranging for others, or
offering to solicit, place, negotiate, acquire,
8 sell or arrange for others, mortgage
loans in the primary market.
9
(e) (f) "Mortgage loan" means a loan
made to a natural person which
10 is secured by a first or second mortgage or
other similar instrument or
11 document, and which creates a lien on a
one-to-four family dwelling,
12 located in this state, occupied or intended
to be occupied for residential
13 purposes by the owner, including the
renewal or refinancing of such a
14 loan.
15 (f)
(g) "Person" means any individual, sole proprietorship,
corpora-
16 tion, partnership, trust, association,
joint venture, pool syndicate, unin-
17 corporated organization or other form of
entity, however organized.
18 (g)
(h) "Primary market" means the market wherein mortgage
loans
19 are originated between a lender and a
borrower, whether or not through
20 a mortgage broker or other means.
21 (h)
(i) "Promotional items" means pens, pencils, hats and
other such
22 novelty items.
23 (i)
(j) "Registrant" means any individual or other entity
who holds a
24 valid certificate of registration to
conduct mortgage business in this state.
25 Sec.
2. K.S.A. 1999 Supp. 9-2202 is hereby amended to read as
fol-
26 lows: 9-2202. The following are exempt from
the registration require-
27 ments of this act:
28 (a) Any bank,
bank holding company, savings bank, trust company,
29 savings and loan association, building and
loan association, industrial loan
30 company or credit union regulated by an
agency of the United States or
31 of any state;
32 (b) any entity
directly or indirectly regulated by an agency of the
33 United States or of any state which is a
subsidiary or affiliate of any entity
34 listed in subsection (a) if 25% or more of
such entity's common stock is
35 owned by any entity listed in subsection
(a);
36 (c) any person
who is registered with the Kansas securities commis-
37 sioner as a loan broker pursuant to K.S.A.
50-1001 et seq. and amend-
38 ments thereto or who is licensed by the
Kansas consumer credit com-
39 missioner as a supervised lender pursuant
to K.S.A. 16a-2-301 et seq. and
40 amendments thereto;
41 (d) the United
States of America, the state of Kansas, any other state,
42 or any agency or instrumentality of any
governmental entity; and
43 (e) a
registrant's employee.; and
3
1 (f) any
person who does not receive a fee or other consideration,
ex-
2 cept for a bona fide third party
fee received from a registered or exempt
3 lender after financing for the
mortgage actually has been obtained.
4 Sec. 3. K.S.A. 1999 Supp.
9-2201 and 9-2202 are hereby repealed.
5 Sec. 4. This act
shall take effect and be in force from and after its
6 publication in the statute book.